Kunalai Villa Public Company Limited (KUN) continues to perform well, defying the COVID-19 trend, showcasing a remarkable profit for Q2/2021, soaring by 159.31% YoY to reach 41.10 million Baht. Total revenue stood at 255.13 million Baht, with six-month sales hitting 730 million Baht. An interim dividend of 0.05 Baht per share is set to be XD on August 26, 2021. CEO "Prawirat Tevaaksorn" is aggressively pursuing plans for the second half of the year, preparing to launch a new project named "Kunalai Navarra" with an investment value of 2.35 billion Baht, indicating that the demand for horizontal housing remains strong as lifestyles shift towards a new normal. The company is confident that revenue will grow by 10-15% this year as planned.

Ms. Prawirat Tevaaksorn, CEO of Kunalai Villa Public Company Limited (KUN), revealed that the company has achieved significant success in its Q2/2021 operations, ending June 30, 2021, with total revenue of 255.13 million Baht, an increase of 55.11% YoY, and a net profit of 41.10 million Baht, up 159.31% YoY. This success is attributed to the continued positive reception of the company's projects since the first quarter, particularly the Kunalai Preem project, which is the company's best-selling project. Additionally, the company recognized revenue from four other projects, including Kunalai Joy, Kunalai Begins 1, Kunalai Begins 2, and Kunalai Joy on 314.


Ms. Prawirat Tevaaksorn, CEO of Kunalai Villa Public Company Limited

In the first six months of 2021, the company recorded total revenue of 446.11 million Baht, an increase of 36.41% YoY, and a net profit of 68.50 million Baht, up 41.14 million Baht or 150% YoY. This growth is due to revenue recognition from property transfers in the Bang Bua Thong and Chachoengsao zones, particularly from the Kunalai Preem project, which has achieved a high market share in the Bang Bua Thong area of Nonthaburi. As a result, in the first half of 2021, the company had pre-sales of 730 million Baht, while the backlog at the end of Q2/2021 stood at 380 million Baht, which will gradually be recognized in the second half of the year.

“Since the onset of the COVID-19 situation, the company has adjusted its strategies to navigate this crisis, including strategies for financing and liquidity management to ensure sufficient resources for KUN's project development, as well as adjusting sales strategies to focus on online communication with target customers. Importantly, the company is committed to completing homes on time for customer delivery. Additionally, we manage operations in collaboration with each contractor to align with production capacity. Regarding COVID-19 prevention measures, we aim to work with all stakeholders to ensure that "Kunalai = a village with a landscape" focuses on achieving 100% vaccination for at least the first dose, which we have already achieved for over 70%. Contractors entering the construction sites must comply with strict health protocols, which have been in place since the COVID-19 situation began last year. The company also emphasizes creating living standards in construction camps and provides assistance to workers, such as supplying lunch to construction workers to mitigate risks,”

Additionally, the company's board of directors has resolved to pay an interim dividend for the first half of 2021 amounting to 0.05 Baht per share, totaling 34.32 million Baht, reflecting the strong performance in the first half of the year. The ex-dividend date (XD) is set for August 26, 2021, with dividend payments scheduled for September 10, 2021.

Regarding the direction for the second half of the year, Ms. Prawirat, CEO of KUN, added that the company plans to develop a third project under the "Kunalai Navarra" initiative, which is part of the company's business plan to diversify investments across four directions around Bangkok. This project is located in the southern zone, Rama 2, with an investment value of approximately 2.35 billion Baht, and is expected to commence development by the end of 2021, with commercial sales anticipated to begin in Q1 2022, pending shareholder approval at the extraordinary general meeting on August 25.

As for the outlook for the horizontal real estate industry, I personally believe that demand remains strong because horizontal homes cater to real demand, addressing ongoing customer needs. The COVID-19 pandemic has prompted customers to adapt to a new lifestyle, working from home, and spending more time indoors, along with rapid technological advancements. These factors contribute to the continued demand for horizontal homes among current customers.

However, under the changing lifestyle, new living concepts have emerged, encapsulated in EVERYTHING AT HOME, where everything happens at home, to meet consumer needs and adapt to the current situation. This emphasizes the superior living space within homes compared to competitors, resulting in positive responses and successful sales across all Kunalai projects to date. The strategic adjustments, along with effective management and cost control, have allowed the company to maintain a high profit margin, with a net profit margin of 15.4%. This further reinforces the company's confidence that these strategic adjustments will lead to a growth rate of 10-15% this year, despite economic pressures from the COVID-19 pandemic. The company remains committed to achieving its sales targets.