A5's net profit for Q2/2022 surged to 30 million baht, a remarkable growth of 450%. The company is preparing to issue its first bond with a fixed interest rate of 7% per annum, available for subscription on August 18-19 and 22-23. In the second half of the year, A5 plans to launch three new projects as scheduled, confident in achieving sales targets of 1 billion baht.

A5 has reaffirmed its potential in the real estate business, reporting a net profit of 30 million baht for Q2/2022, a staggering growth of 450% compared to the same period last year, with total revenue recognized at 229 million baht, up 9%. This growth is attributed to the continuous demand for housing and more efficient sales cost management, supporting a gross profit margin of 33%. The company plans to offer its first bond with a 2-year maturity and a fixed interest rate of 7% per annum to institutional and major investors through six bond distributors to strengthen its working capital. A5 also plans to open three new projects in the remaining months of this year.

Mr. Supachok Panjatsap, CEO of Asset Five Group Public Company Limited (A5), revealed that the company's performance in Q2/2022 showed satisfactory growth, especially with a net profit of 30 million baht, a 450% increase from the same period last year. This success is due to effective sales cost management combined with the ongoing increase in housing demand, resulting in a gross profit margin of 33%, similar to the previous quarter. Total revenue recognized was 229 million baht, a 9% increase from the same period last year, primarily from the transfer of ownership of homes in the Vana Residence project in Rama 9 - Srinakarin and the Ratchaya housing project in Udon Thani, which has sold all units.

In the first six months of this year, the company's performance compared to the same period last year showed consistent growth, excluding a special profit from land sales in Q1/2021 amounting to 105 million baht. The total net profit reached 82 million baht, up 401% from the same period last year (excluding the net profit from land sales in Q1/2021), with total revenue recognized at 551 million baht, a 53% increase from the same period last year (excluding revenue from land sales in Q1/2021).

“A5 is considered a new real estate company that just listed on the stock exchange at the beginning of the year, but we aim to be a real estate stock with a solid foundation, committed to strong growth. The latest performance reflects the company's development and project advancements that meet the housing needs of consumers today, aiming to become a leader in the niche real estate market,” said Mr. Supachok.

The CEO of A5 further stated that the company is preparing to issue its first bond (1/2022) with a total value of up to 680 million baht for institutional and major investors to strengthen its capital for business expansion. The bonds will be named and non-subordinated, with no collateral, and the bondholders will have a representative. The issuer has the right to redeem the bonds before maturity, with a 2-year term maturing in 2025, offering a fixed interest rate of 7% per annum, with interest paid every three months. The minimum subscription is 100,000 baht, with increments of 100,000 baht.

Interested parties can subscribe through six bond distributors on August 18-19 and 22-23, 2022, including Phai Securities Public Company Limited, SSL Securities Company Limited, Beyond Securities Public Company Limited, KTBST Securities Public Company Limited, Mercantile Partners Public Company Limited, and Asia Wealth Management Company Limited.

Looking ahead, the demand for housing in the remaining months of this year is expected to gradually recover. Despite the recent announcement by the Bank of Thailand (BOT) to raise the policy interest rate by 0.25% from 0.50% to 0.75%, the current situation still presents a good time for purchasing homes, as most developers have not significantly raised home prices to maintain competitiveness. Therefore, buying a home this year is likely to yield better prices than next year.

The company plans to launch three new projects worth over 4.5 billion baht in the remaining months of this year, aiming for sales of 1 billion baht as targeted. These include a super-luxury single-family home project in Bangkok valued at 2.7 billion baht, the Ratchaya Prachasanti project in Udon Thani valued at 270 million baht, which has already received bookings before the pre-sale, and another housing project in Udon Thani valued at 1.6 billion baht. Additionally, the company is negotiating to purchase land for new project development next year, expecting to sign contracts for 1-2 plots soon, and is also looking for additional land in potential locations. As for the sales progress of the super-luxury condominium project “Tonson One Residence,” valued at approximately 3 billion baht, over 87% has already been sold, and construction is expected to be completed and ownership transferred in the second quarter of next year as planned.