Villa Kun Alai Public Company Limited - KUN is in top form, with total revenue for the first six months of 2022 reaching 545.4 million baht, an increase of 22.3% (YoY). Meanwhile, net profit stands at 75.9 million baht, up 10.8% (YoY), showcasing sales of 745.9 million baht in the first half, accounting for 44% of the annual pre-sale target of 1.7 billion baht. The company is confident that this year's pre-sale figures will reach a new high for the second consecutive year. CEO “Prawirat Tevaakson” is aggressively pushing sales campaigns in the second half of the year, with plans to launch a new landmark project in Bang Khun Thian, “Kun Alai Navarra,” valued at 3.5 billion baht, reinforcing the target of 10-15% revenue growth for the year.

Ms. Prawirat Tevaakson, CEO of Villa Kun Alai Public Company Limited (KUN), revealed that the company has achieved significant success in the first half of 2022, with total revenue of 545.5 million baht, a 22.3% increase compared to the same period last year (YoY), and a net profit of 75.9 million baht, up 7.4 million baht or 10.8% (YoY). For the second quarter of 2022, ending June 30, total revenue reached 278 million baht, a 9% YoY increase, with net profit at 37.2 million baht, up 9.5% (YoY).

The growth in the first half of 2022 compared to 2021 is attributed to the ongoing demand for single-story homes, driven by the COVID-19 pandemic, which has led customers to seek residences that meet all aspects of their lifestyle. Additionally, concerns about potential price increases in the housing market in the second half of the year, due to rising construction material costs since the beginning of 2022, have further stimulated consumer purchasing. Government measures to support home buying, including relaxed LTV regulations and reduced registration fees for properties priced under 3 million baht, which will end in 2022, have also contributed to increased consumer interest, resulting in first-half sales of 745.9 million baht, up from 730.2 million baht in the first half of 2021, a 2.15% increase, accounting for 44% of the annual pre-sale target of 1.7 billion baht.

“In the first half of 2022, the company recognized revenue from projects already launched, including the Kun Alai Preem project, which has recognized over 64% of its revenue, and the Kun Alai Begins 2 project, which has recognized over 17%. The Kun Alai Park, Kun Alai Joy On 314, and Kun Alai Courtyard projects have collectively recognized an average of over 19% of their revenue, resulting in first-half sales of 745.9 million baht, up from 730.2 million baht in the first half of 2021, a 2.15% increase, accounting for 44% of the annual pre-sale target of 1.7 billion baht,” she added.

The CEO of KUN emphasized that the results from the first half reflect the company's management capabilities and commitment to achieving growth rates, leading the company to believe that overall performance for 2022 is likely to grow by 10-15%, in line with the pre-sale target of 1.7 billion baht. Achieving this target would set a new record, continuing from 2021, marking a new high for two consecutive years. She also mentioned the Kun Alai Daisy project, which has already achieved sales of 125 million baht, continuing from the best-selling Kun Alai Preem project, with transfers expected to begin in the fourth quarter of 2022. The Kun Alai Park project, launched in the first quarter, is also starting to recognize revenue continuously, with both projects receiving strong customer responses, leading the company to set a revenue target of 300 million baht from these two projects for 2022.

For the second half of the year, the company has developed marketing strategies to stimulate sales, anticipating a recovery in purchasing power. This includes promotional campaigns such as the “Free 15 Gifts” promotion for the Kun Alai Begins 2 project, which features townhomes. Additionally, the company is continuously rolling out other campaigns.

“The rising interest rate trend will impact home buying, as every 1% increase in interest rates will raise monthly mortgage payments by approximately 5% - 13%, depending on the loan term. This will increase the burden on homebuyers, or if they wish to keep their payments the same, they will need to extend the loan term, which will affect their purchasing decisions. Conversely, the expected economic recovery, along with government stimulus measures, particularly the relaxation of LTV regulations, remains a positive factor that can stimulate home buying decisions to some extent,” she noted.

In the fourth quarter of 2022, the company plans to launch the Kun Alai Navarra project in Bang Khun Thian, valued at 3.5 billion baht, with sales expected to begin in the first quarter of 2023. The project is anticipated to receive a positive response due to its design, house types, functions, usable space, land size, and starting price. The company acknowledges that the Bang Khun Thian area is continuously developing, including improvements to existing shopping malls and the construction of new ones. Additionally, new transportation routes are being built, such as the Rama 3-Daokanong-Western Ring Road expressway and the elevated Bang Khun Thian-Ekkachai-Ban Phaew route, both expected to be operational by 2024 and 2025, respectively, making access to the city area more convenient. These factors lead the company to view the Kun Alai Navarra project as another flagship project for “Kun Alai.”

Regarding consumer demand in the areas where “Kun Alai” operates (Bang Bua Thong, Chachoengsao, and Bang Khun Thian), there is a consistent demand that meets customer needs well, as all areas are developing large transportation networks, including electric trains, ring roads, and new expressways, ensuring that the company can grow according to its 2022 targets and continue to increase year after year, creating a growing revenue base for the future.