Pruksa Unveils 2021 Plan Targeting 32 Billion Baht with 'A Year of Value' Strategy to Deliver True Value and Integrate Health Business into Comprehensive Community Projects
Pruksa is confident in market growth, announcing its 2021 plan with a sales and revenue target of 32 billion baht. The company aims to launch 29 new projects valued at 26.63 billion baht, with a backlog of approximately 22 billion baht. The strategy, 'A Year of Value,' focuses on delivering genuine value and truly understanding customer needs, while preparing to integrate health care businesses into its projects. The company is awaiting approval to distribute dividends for the fiscal year 2020 at a rate of 0.96 baht per share.
Mr. Piya Prayong, CEO of Pruksa Real Estate Public Company Limited, stated, "The real estate market outlook for 2021 has several factors to monitor, including the economy, exports, and tourism, particularly the impact of COVID-19 both domestically and internationally. The availability of vaccines will be a crucial variable. However, we are confident that the overall market this year will improve by 9% compared to last year. We aim for sales and revenue of 32 billion baht in 2021, representing a growth of 45% and 9% respectively. We plan to launch a total of 29 new projects valued at 26.63 billion baht, comprising 17 townhouse projects, 8 single-detached house projects, and 4 condominium projects.
Additionally, the strategy 'A Year of Value' aims to deeply understand and meet customer needs by offering products that fulfill not only housing requirements but also other values that cater to diverse customer demands, such as restaurants, lifestyle malls, and importantly, collaboration with Vimut Hospital, a subsidiary of Pruksa, to open a health care center that includes clinics, physical therapy centers, elderly care services, and home health care in Pruksa projects to create livable communities that comprehensively support customers' lifestyles.
Regarding performance in 2020, the company achieved sales of 21.968 billion baht, revenue of 29.244 billion baht, and a net profit of 2.771 billion baht. A total of 13 projects were launched, valued at 15.756 billion baht, with a backlog worth up to 21.94 billion baht. The company successfully reduced inventory by 41% from the end of 2019, particularly in the fourth quarter, by employing pricing strategies combined with the Hero Projects initiative, allocating marketing budgets to high-potential projects, resulting in fourth-quarter revenue of 9.584 billion baht, a 51% increase from the third quarter, and sales of 5.807 billion baht, a 409% increase compared to the same quarter in 2019.
Building on the success of the previous quarter, Pruksa continues to implement pricing strategies and promotions. In the first quarter, the company launched the 'PRUKSA FREE FEST' campaign, offering benefits such as free living for up to 36 months, 0% interest for up to 36 months, or free maintenance fees for up to 36 months (conditions apply for each project) for customers who book and transfer properties by March 31. Pruksa will cover all related costs for customers. More than 1,000 units of townhouses, single-detached houses, and condominiums across the country are participating in this campaign, valued at a total of 3.377 billion baht. The company believes this campaign will stimulate decision-making and alleviate concerns for those wanting to own a home, especially with government measures extending the reduced transfer and mortgage fees to 0.01%, which adds further benefits for customers. However, it is suggested that if the government expands the ceiling to homes priced between 3-5 million baht, this measure could further stimulate the real estate sector and assist more Thais in achieving home ownership.
Finally, based on last year's performance, the company has resolved to pay an annual dividend for 2020 at a rate of 0.96 baht per share, having already paid an interim dividend of 0.31 baht per share. Therefore, the remaining dividend for this round will be 0.65 baht per share, which will be proposed for approval at the annual general meeting of shareholders in April 2021.
Dr. Kritwath Leart-Uthakool, CEO of Vimut Holding Public Company Limited, announced the progress of Vimut Hospital Phaholyothin, stating, "We are ready to open for service in May 2021. The Vimut Hospital Phaholyothin is located in the business district of Bangkok, covering an area of 4 rai along Phaholyothin Road, adjacent to the Saphan Khwai intersection. It is a tertiary care hospital capable of treating severe and complex diseases, with 18 floors and 236 beds, designed according to international JCI standards. It has a team of specialized doctors who provide precise treatment using modern technology and equipment at accessible costs. Notably, it features specialized centers for bones, heart, brain, and a comprehensive diabetes center, as well as establishing a geriatric center to address the needs of an aging society. The hospital also focuses on non-communicable diseases (NCDs), which have high and rapidly increasing morbidity rates, providing family medicine doctors for holistic care of family members, transitional care for rehabilitation after illness, and opening a nursing home within the hospital.
For the growth and advancement of the hospital business, Vimut Hospital has recently invested in Theptarin Hospital on Rama IV Road, a well-known hospital specializing in diabetes and endocrinology for over 36 years, to combine expert medical teams and knowledge to develop a comprehensive diabetes center of excellence and expand preventive care and treatment to the wider community.