Kunalai Public Company Limited (KUN) has announced its commitment to advancing its business strategy under the "Kunalai Strong" initiative, focusing on re-engineering the organization to prepare for future growth. The company aims to elevate its urban development model to a new flagship project in the Bang Khun Thian area, valued at over 3 billion baht. The new location is expected to be a "Blue Ocean" with high demand, with plans to gradually launch "Kunalai Daisy" and "Kunalai Navara" soon. The company anticipates continued growth in horizontal residential properties, setting a revenue growth target of 15-20% for 2023, with sales expected to reach 1.8 billion baht, reinforcing its commitment to achieving new highs and signaling that this year will be a golden year for Kunalai's profits.

Ms. Prawirat Tevaakson, CEO of Kunalai Public Company Limited, a developer of horizontal real estate projects in suburban areas, stated that the overall real estate market, particularly horizontal properties, will face challenges in 2023 but is expected to continue improving. Despite pressures from rising household debt and stricter lending policies, demand for properties remains high, driven by real demand, especially as people adapt to the COVID-19 situation, such as working from home, online learning, and increased home activities, which have influenced lifestyle behaviors. Additionally, the country's infrastructure development in communication has aligned with new living styles, making homes increasingly important.

These factors have led consumers to seek more horizontal real estate, supported by the Bank of Thailand's measures to relax LTV criteria and the government's initiatives to reduce transfer fees for homes priced below 3 million baht, promoting further growth in the real estate market. This reflects the government's tangible stimulus and ongoing support for homeownership.

In 2023, the company remains committed to achieving new high figures, targeting a revenue growth rate of 15-20% from 2022, with sales projected at 1.8 billion baht, up from 1.51 billion baht in 2022. The company emphasizes that this year will clearly be a year of profit harvesting for Kunalai, following continuous investments in previous periods. As of the end of 2022, the company had a backlog valued at 300 million baht, which will gradually contribute to revenue in the first quarter of 2023. Furthermore, the horizontal real estate market is expected to see heightened competition due to changing consumer behaviors, prompting Kunalai to maintain its existing customer base while adjusting strategies to align with consumer behaviors in each location.

For the overall plan in 2023, Kunalai continues to emphasize its potential by strengthening its brand to gradually guide target customers from brand awareness to brand love through service and communication across various media, aligning with the business expansion plan to become a leading developer of horizontal real estate around Bangkok and its suburbs. This year, Kunalai focuses on re-engineering the entire organization to upgrade and prepare its capabilities, believing that this driving plan will enable the company to reach revenue levels of 1.5 billion and 2 billion in the near future.

We continue to emphasize driving with a focus on:

1. Product Redefined to improve products so that homes can seamlessly meet current and future living needs, including the layout of indoor and outdoor spaces, communication emphasis, and energy efficiency, such as installing solar cells to save energy during the day.

2. Project Redesigned to create new project conditions that emphasize family privacy, utilizing scientific principles and architecture to design spaces suitable for planned outdoor and indoor activities without concerns about health risks.

3. Organization Re-Engineered to upgrade both soft and hard skills towards excellence in Kunalai's expertise, facilitating learning processes that align with the organization's goals.

Additionally, Kunalai plans to develop Eco Smart homes by incorporating alternative energy into its projects, starting with the Kunalai Preem project, which will install solar panels in designated areas to reduce electricity consumption and improve space management within and outside homes, reinforcing the company's commitment to its ongoing concept of "Kunalai Creates Space, Creates Happiness."

The CEO of Kunalai also mentioned the investment budget for 2023, stating that the company has set an expansion budget of 1 billion baht, with 450 million baht allocated for land purchases. The remaining funds will be invested in developing new projects set to launch this year, including two projects:

1. Kunalai Daisy Project in the Bang Bua Thong area, a new development to replace the existing project nearing completion, featuring twin houses and single-family homes priced between 3-5 million baht, which are in high demand. The project will focus on "cutting excess, adding what is lacking," aligning with Kunalai's strengths, as consumers increasingly prioritize indoor space due to the need to spend more time at home. The project value is approximately 800 million baht.

2. Kunalai Navara Project will be another flagship project for Kunalai, adopting the urban development model similar to the first flagship in Bang Bua Thong. This project will be located in the southern area of Bangkok, specifically in the Rama 2-Bang Khun Thian zone, with an estimated project value of 3 billion baht. The location is expected to be a "Blue Ocean" with ongoing demand for housing, presenting a business opportunity for Kunalai to develop the project, which is anticipated to launch sales in the third quarter of 2023.

The CEO also acknowledged that the Thai real estate market that meets consumer needs is horizontal housing priced between 2-8 million baht, which continues to grow. This market aligns with Kunalai's plans for project development and sales in the future. The company has a medium-term plan for the next five years (2023-2027) to prepare for development and has already secured land deposits, with a total project value of nearly 10 billion baht, including plans for new project launches. This indicates that the company is well-positioned to recognize revenue from now until 2027.

"The demand from consumers in the areas where Kunalai is currently developing remains strong, with visitor numbers to projects comparable to 2022. However, the company's sales in 2023 grew nearly 15% from 2022, indicating that visitors are genuinely interested in purchasing homes, leading to improved sales closure rates for Kunalai.

Furthermore, all zones where our housing projects are being developed (Bang Bua Thong, Chachoengsao, and Bang Khun Thian) are located within major transportation network development areas, including electric trains, ring roads, and new expressways, ensuring that we can achieve our growth targets for 2023. The marketing direction will include both 1. market penetration by introducing additional product segments in areas where we are well-known to increase market share, and 2. market development in new areas, specifically Bang Khun Thian this year, to build a revenue base for future growth.