Pruksa reports Q3 sales of 6.584 billion baht, an 88% increase

As the year-end approaches, the company is set to transfer condos and achieve revenue targets

Pruksa's Q3 2020 performance shows sales of 6.584 billion baht, up 88% from the previous quarter, with revenue of 6.353 billion baht and a profit of 603 million baht. The company has quickly recovered despite the impact of COVID-19 and is preparing to transfer The Reserve while aiming to meet revenue goals. A new hospital is set to be unveiled mid-next year.

Mr. Piya Prayong, CEO of Pruksa Real Estate Public Company Limited, stated, "In Q3, the company achieved sales of 6.584 billion baht, an 88% growth from the previous quarter's sales of 3.507 billion baht, with revenue of 6.353 billion baht and a net profit of 603 million baht, reflecting a growth of 3% and 9.4% respectively from the previous quarter. Despite the challenges faced in Q2 due to COVID-19, we have quickly adapted our business strategy, focusing on launching new projects and remarketing our Hero Projects, which have shown strong potential and received positive responses. In Q3, 19% of our sales and 23% of our revenue came from Hero Projects. Additionally, we have reduced our inventory by 31% compared to 2019.

As of the end of September 2020, the company has 166 active projects with a total sales value of 95.151 billion baht and a backlog of 25.605 billion baht. In the first nine months, we launched 11 projects worth 13.620 billion baht and plan to open 2 more projects in Q4. For the entire year of 2020, we expect to launch around 13 new projects, including highlights such as The Plant Rangsit-Avenue, a single-family home project valued at 985 million baht, priced between 3 to 5 million baht, and Pruksa Ville Srinakarin-Bangna, offering spacious areas and specifications comparable to single-family homes, located near Mega Bangna, valued at 1.101 billion baht, with starting prices of 2 to 3 million baht. In the final quarter of the year, Pruksa will conduct marketing activities offering special privileges and promotions to boost sales, along with the gradual transfer of The Reserve Sukhumvit 61, valued at 2.7 billion baht, which accounts for 13% of the revenue target for Q4. Combined with revenue from Hero Projects at 32% and other ongoing projects at around 55%, we anticipate achieving our revenue goals.

Overall, the real estate market in Bangkok and its vicinity has seen a market value of 208.994 billion baht over the past nine months, down 31% compared to the same period last year. Without positive factors to support it, the economic situation and consumer confidence in Q4 are still sluggish, leading to an expected overall decline of about 30% in the real estate market for the year. For 2021, the company plans to increase sales and revenue from the middle-to-upper customer segment, which has been less affected, and we will definitely launch more projects next year than this year."

 

Regarding Vimut Hospital, Dr. Kritthawit Lertuthakool, CEO of Vimut Hospital Co., Ltd., stated, "The construction of Vimut Hospital is progressing according to plan. It will be a 236-bed Tertiary Care facility, 18 stories high, designed to meet international JCI standards, with the organization's vision focused on ensuring that Thai people maintain good health and are free from physical and mental suffering. We aim to provide accessible care through a team of expert doctors who treat patients like family, using modern technology and medical equipment, along with quality medications, ensuring effective service at affordable costs. We expect to open in May 2021."