Sivaram Public Company Limited, or "SVR" has showcased impressive performance in 2022, achieving a record high revenue of 726.15 million baht, an increase of 28.65%. The gross profit stands at 227.47 million baht, with a gross profit margin from project development for sale rising to 33.96% (up from 30.39% in 2021). This success is attributed to favorable selling prices and effective cost management, meeting the demand for Premium Economy housing from the Real Demand segment. Executive Director “Ronarit Thitisuriyarak” announced aggressive plans to launch 3 new projects this year, targeting the Bang Kruai-Sai Noi area, the Kanchanaphisek Ring Road, and Soi Pracha Uthit 76, with a total value of 1.6 billion baht. The company aims to diversify its residential segments to support growth towards a High Growth level, confident that revenue will continue to reach new highs in 2024.

Mr. Ronarit Thitisuriyarak, Executive Director and Senior Chief Financial Officer of Sivaram Real Estate Public Company Limited (SVR), a leading developer of horizontal residential properties such as single-family homes, duplexes, and townhomes, is the first in the country to develop Premium Economy real estate under the concept of "Best Smart Living." He revealed that the overall performance in 2022 met the company's targets, with total revenue of 726.15 million baht, up 28.65% from 564.46 million baht in the previous year. This increase was driven by a rise in revenue from property sales of 98.30 million baht and from the sale of unused land of 67.80 million baht. The net profit was 58.24 million baht, down from 63.35 million baht the previous year, primarily due to increased selling expenses related to marketing costs for launching 3 new projects this year, two of which were launched late in the year, resulting in delayed revenue recognition. However, the gross profit remained strong at 227.47 million baht, with overall gross profit margins and from project development for sale increasing to 31.37% and 33.96% (up from 30.39% in 2021) due to effective pricing and cost management.

Furthermore, the increase in sales aligns with the strategic development plan for real estate projects, as evidenced by revenue from projects for sale in 2022 amounting to 657.28 million baht, a 17.53% increase or 98.03 million baht from 559.25 million baht in 2021. The main factor was the increase in revenue recognition from 7 projects in 2022, compared to 5 projects in 2021. The majority of revenue came from the Sivaram Grand project (Sukhumvit-Bangpu) at 279.63 million baht and the Sivaram Village project (Sukhumvit-Theparak) at 200.19 million baht, with sales completed within 2022, along with 3 new projects that began transferring ownership in 2022, including Sivaram Village (Sukhumvit-Bangpu 58) at 52.90 million baht, recognized from December 2022, Sivaram Nature Plus (Assumption-Sriracha) at 47.01 million baht, recognized at the end of Q3 2022, and Sivaram Nature Plus 2 (Sukhumvit-Bangpu) at 40.47 million baht, recognized from October 2022.

“In summary, 2022 was a challenging year for the real estate sector due to ongoing domestic and international situations, particularly inflation and rising construction material costs, while the overall economy has not yet fully recovered, leading to a slowdown in consumer purchasing power. However, with a strategic marketing plan focusing on promotional activities aimed at developing horizontal housing projects in the price range of 1-7 million baht, which is the largest market segment and has high Real Demand, we are able to meet the needs for Premium Economy housing, resulting in increased sales across all SVR projects,”

Mr. Ronarit further stated that the overall real estate market trend in 2023 is expected to continue growing, especially with China reopening its borders, which positively impacts the tourism sector and will also have a favorable effect on the housing market in Thailand. This will lead to increased consumer purchasing power for horizontal housing, aligning with the company's business plan for 2023, which includes launching 3 new projects valued at over 1.6 billion baht, comprising:

1. Sivaram Village Project (located in Bang Kruai-Sai Noi) features duplexes and townhouses totaling 242 units, with selling prices ranging from 2 to 3.5 million baht per unit on a land area of 24-3-39 rai, with a project value of 691 million baht. Construction of the first phase is currently underway, with homes being built before sale, and the company plans to launch in June. This project marks the company's first foray into the Nonthaburi area (Bang Kruai-Sai Noi), where demand for horizontal housing has been steadily increasing, leading the company to believe that it can achieve sales closure within 2-3 years as planned.

2. Sivaram Hide Project (located on Kanchanaphisek Ring Road) consists of single-family homes sized at 100 square wah under the new brand “Sivaram Hide,” totaling 29 units, with selling prices around 12 million baht per unit on an area of over 11-3-80.5 rai, with a project value of 401 million baht. This project expands the segment of upper-level residents, targeting a new customer base for the company. Currently, site preparation is underway for construction, with sales expected to open by the end of Q4 2023, and ownership transfer anticipated to reach approximately 50 million baht within this year, with sales closure expected within 2 years.

3. Sivaram Park Project (located on Soi Pracha Uthit 76) features single-family homes sized at 50 square wah under the “Sivaram Park” brand, totaling 91 units, with selling prices around 5 million baht per unit on an area of approximately 22-3-78 rai, with a project value of 528 million baht. Site preparation for construction is currently underway, with sales expected to open by the end of Q4 2023 as well, and sales closure anticipated within 2 years.

However, this year SVR plans to expand its project development closer to the CBD area of Bangkok, moving away from its previous focus on peripheral areas, as the company aims to diversify its product portfolio and expand its customer base in the upper residential segment. This includes developing premium projects with higher-priced homes reaching up to 12 million baht, compared to previous projects priced below 7 million baht per unit.

Given that customers in this segment have higher purchasing power, easier access to loans, and lower risk, the company believes that this customer base still has high demand, which can create added value for the company in the future. Importantly, this will also enable revenue growth in 2024 to achieve significant increases according to the planned strategy, reinforcing the commitment to sustainable growth towards a High Growth level in the future.