AssetWise Reports Q1/2021 Profit Surge of 361.8% with New Growth Strategy Amid COVID-19

AssetWise Public Company Limited or ASW has announced its Q1/2021 financial results, achieving revenues of over 1,173 million baht, an increase of 582 million baht from the previous year. Despite the challenges posed by COVID-19, the company reported a net profit of 320 million baht, compared to a net profit of 69 million baht in the same period last year, marking a growth of over 361.8%. The company emphasized maintaining a strong profit margin and showcased a backlog valued at over 7,500 million baht, reinforcing its success with the Best Choice strategy aimed at the new generation. The company is committed to enhancing its strategy and continuously launching new projects worth over 9,700 million baht.

 

Q1 Profit Growth of 361.8% During COVID

Mr. Kramchat Wiphanpong, Chief Executive Officer of AssetWise, revealed that the company's performance in Q1/2021 (ending March 31, 2021) generated revenues of 1,173 million baht, an increase of 582 million baht, representing a growth rate of 98.5% compared to the same quarter last year, which had revenues of 591 million baht. The net profit reached 320 million baht, up by 250 million baht or 361.8% compared to the same period last year, which had a net profit of 69 million baht. The gross profit margin stood at 48.5% and the net profit margin at 25.7%, reflecting a counter-cyclical growth during the COVID era. Additionally, effective cost management has led to a decrease in the debt-to-equity ratio (D/E) following the company's fundraising in the stock market.

“Despite the third wave of the COVID-19 outbreak, our performance has not slowed down. The transfer of ownership for condominiums has met targets, and sales in each project continue to rise, including the MODIZ brand launched late last year. In Q1/2021, we launched the KAVE SALAYA brand near Mahidol University, with a project value of 1,150 million baht, and over 60% of the available units have already been sold, reflecting real demand. Our real estate projects meet the needs of customers looking for the Best Choice condominiums in that location,” he added.

Emphasizing the Best Choice Strategy in Every Location

 

AssetWise reinforces its goal of being a new and noteworthy real estate developer, focusing on growth through the “Best Choice” strategy, which aims to develop urban condominiums as the best options in their respective locations. This includes precise location selection in potential Blue Ocean areas, providing diverse common spaces in terms of design and functionality, and well-equipped room designs at affordable prices. Another unique signature of ASW is its commitment to deeply studying the behaviors and lifestyles of residents in various neighborhoods to understand their true needs. All of this has contributed to the satisfactory growth of Q1/2021 results during the COVID period.

Leading Campus Condominiums

One of AssetWise's flagship successes is the KAVE brand, focusing on condominiums near universities. In Q1/2021, the company continued to see strong revenue recognition from the KAVE TOWN SPACE and KAVE TOWN SHIFT projects near Bangkok University Rangsit Campus, with a total project value of over 4,100 million baht. It is rare to see a real estate developer so committed to nurturing a brand specifically for campus condominiums. Additionally, the company has completed projects ready for occupancy in various locations near the city’s BTS lines, such as Ratchada-Ladprao and Sukhumvit areas, which represent a backlog awaiting revenue recognition this year.

Continuing to Launch New Projects with Confidence in Ongoing Growth

In Q1/2021, AssetWise achieved over 60% sales of the KAVE SALAYA project, and this year, there are also plans for the KAVE TU project opposite Thammasat University Rangsit Campus and MODIZ SUKHUMVIT 50, a high-rise condominium in the heart of Sukhumvit, which is also awaiting revenue recognition.

For the second half of the year, AssetWise plans to continuously launch new projects, both horizontal and vertical, with a total project value of 9,700 million baht, with gradual openings in Q2/2021, including the ATMOZ BANGNA condominium project and KAVE AVA.

“We are confident that revenues in 2021 will grow by over 20% from the previous year according to our planned objectives, focusing on driving continuous growth from the backlog of 7,500 million baht, which will gradually recognize revenue from this year until 2023, along with completed projects awaiting sale totaling 1,105 units valued at 3,133 million baht, which will enable the business to grow significantly in the next 1-2 years,” he stated.

The CEO of ASW also mentioned that the company has been seeking partners to expand growth and is in negotiations with partners for future projects. Currently, AssetWise has signed joint venture agreements with Ideal Real Company Limited and Price Property Company Limited to jointly develop the KAVE SALAYA condominium project, with ASW holding a 51:49 share, enhancing its capacity and supporting strong future growth.