Pruksa Holding reported a net profit of 2.205 billion baht and total revenue of 26.132 billion baht for 2023. The healthcare business has shown growth in all dimensions, with a 50% increase in revenue and a 49% rise in Non-COVID patients at Vimut Hospital compared to the previous year. In 2024, the company aims to expand its business by increasing the proportion of recurring income, targeting total revenue of 28 billion baht, and plans to launch 30 new projects worth 29 billion baht, adjusting its product portfolio to focus on mid to high-end offerings by over 50%.

The precast business is expected to grow by 50%, with this year's strategy focusing on 'Ready To Thrive' to create sustainable growth through collaborations across various platforms, including real estate development, healthcare, e-commerce, precast, and the new venture - Inno Home Construction, which focuses on residential building construction, aiming to create a comprehensive living experience of "Live well, Stay well".

Mr. Uthen Lohachitpitak, CEO of Pruksa Holding Public Company Limited stated that in 2023, Pruksa Holding achieved revenue of 26.132 billion baht and a net profit of 2.205 billion baht. The real estate sector has developed a new brand called “Green House” to meet changing purchasing power, incorporating new construction technology and design to allow customers to finance through banks, aligning with current economic demand.

For the direction in 2024, after remodeling the business and organizational structure last year, Pruksa Holding and its subsidiaries are now operationally and financially ready to move towards significant growth under the 'Ready To Thrive' strategy. The real estate sector will focus on launching products in the mid to upper segment, increasing their share to over 50%, while reducing the share of products priced below 3 million baht to 40%, down from approximately 70% in 2020, to better align with the current economic situation. The goal is to increase the proportion of recurring income to 25% by 2029, up from the current 9%, coming from four business groups:

Healthcare Business encompasses health services from Vimut Hospital and Theptarin Hospital, with new collaborations and investments, such as acquiring a 25% stake in KPN Senior Hospital Group, aiming to expand nursing home services with a target of 600 beds within three years. The group also plans to invest 3.5 billion baht to expand a specialized hospital in Sukhumvit, increasing beds at Vimut Hospital to 150, with a growth target of 2.3 billion baht in 2024.

E-commerce Business, under the operation of Synergy Growth Co., Ltd., aims for 5x growth in 2024, targeting over 1 billion baht in revenue within three years. It will offer products and services catering to the lifestyle of the new generation, developing the MyHaus technology platform as a hub for home safety and convenience for residents and property management, featuring an IOT system (Security & Smart Home) to control electronic devices, visitor management, facility booking, repair management, and a community system for residents to communicate.

New Business Units have been established to support growth and create additional revenue opportunities, such as the precast business, which has successfully exchanged shares with General Engineering Public Company Limited (GEL) to invest in common shares of “Inno Precast”, increasing the sales of low-carbon precast slabs, with a backlog of orders exceeding 4.5 billion baht, aiming for 50% revenue growth to 3.5 billion baht in 2024. The group has also separated the construction business for residential buildings into a new company, “Inno Home Construction”, as part of a major organizational restructuring to improve operational efficiency and support growth opportunities, targeting 5.6 billion baht in revenue from Pruksa and other clients in 2024, aiming to become the largest low-rise construction company in Thailand.

Investments to Support Business Chain Expansion include expanding investments in logistics real estate and healthcare-focused properties, following partnerships with two leading organizations from Singapore and Taiwan to establish the “CapitaLand SEA Logistics Fund” with a target asset value of 25 billion baht to develop innovative warehouse management and distribution services across Southeast Asia, and investing in the CapitalLand Wellness Fund (C-Well) with a target asset value of 72.5 billion baht to enhance investment opportunities in healthcare-focused properties.

 

Meanwhile, Pruksa's financial status remains strong, with a low net gearing ratio of 0.27. Based on last year's performance, the board has approved a proposal to shareholders for a dividend payment of 0.65 baht per share, totaling 0.96 baht including interim dividends, with the record date for dividend eligibility set for March 1.Approval will be sought at the annual general meeting on April 26, 2024, with a return on investment of 7.5%, and dividends to be paid on May 24.

 

Mr. Piya Prayong, CEO of Pruksa Real Estate Public Company Limited revealed that in 2023, Pruksa generated approximately 22.357 billion baht in real estate revenue, with sales of 18.54 billion baht, launching 13 new projects worth 14.2 billion baht.

For 2024, the sales target is set at 27 billion baht, with a transfer target of 25.5 billion baht, planning to launch 30 new projects with a total value of 29 billion baht, divided into:

  • 10 single-family home projects priced at 15-30 million baht.
  • 17 townhouse projects priced at 3-5 million baht.
  • 3 condominium projects focusing on the 2-4 million baht segment.

New projects in 2024 include:

  • The Connect Minburi-Nimitmai priced at 3-5 million baht.
  • The Connect Rangsit-Avenue priced at 3-5 million baht.
  • Patio Ramindra-Watcharapol priced at 5-7 million baht.
  • The Palm Bangna-Ring Road 2 priced at 15-30 million baht.
  • The Palm Residences Watcharapol priced at 25-30 million baht.
  • Pine Prachachuen priced at 10-15 million baht.

Currently, the company has ready-to-move-in residences valued at over 10 billion baht, with a backlog of 4.5 billion baht. This year will focus on launching products for mid to high-end customers, aiming to increase the value of the The Palm brand to over 30 million baht by integrating synergies from the healthcare business within the group, creating a clearer overall picture while managing existing assets.

At the same time, there is an investment in Re-Stock Landbank of 10.5 billion baht to support expansion, aiming to develop housing while keeping the proportion of developments for customers with homes priced below 3 million baht to no more than 40%, and homes priced above 7 million baht to more than 30%.

For new residential projects in 2024, the focus will remain on developing housing under the concept of “Live Well, Stay Well”, integrating collaborations between businesses in the Pruksa group, including healthcare and e-commerce, to create quality living spaces that are environmentally conscious, using energy-saving materials such as solar panels, developing home designs for healthy living and energy efficiency (Healthy Living Home & Passive Design Home) that are easy to maintain, suitable for all ages (Universal Design), and help reduce living costs while responding to the lifestyle of the new generation by utilizing the MyHaus platform, which is smart home technology that allows control of home functions at your fingertips, along with providing health services from Vimut Hospital, a partner in the group.

In the healthcare business, Dr. Pichit Kangwankit, Deputy CEO of Pruksa Holding Group and Acting CEO of Vimut Hospital reported that in 2023, the Vimut group experienced growth in all dimensions, with total revenue of 1.82 billion baht, a 50% increase from the previous year, and a 49% increase in Non-COVID patients using services at Vimut Hospital. Last year, Vimut Hospital successfully opened an endoscopy and gastrointestinal motility unit, enhancing care for complex and difficult patients effectively. We launched a LASIK program and a personalized gut microbiome test program in collaboration with Amili, a leading health tech company from Singapore, aiming to help Thai people access precise diagnostics and treatments, and assist doctors in recommending microbiome balance adjustments tailored to each patient effectively, as maintaining gut microbiome balance is another method to boost immunity against serious diseases and promote long-term physical and mental health.

Furthermore, Vimut Hospital continues to expand collaborations with Ramathibodi Hospital, offering 17 health service packages, such as gallbladder surgery, hysterectomy, breast surgery, ovarian mass surgery, hernia repair, hemorrhoid surgery, knee replacement surgery, and skin mass surgery, among others. The hospital has also expanded services to foreign patients, particularly from Southeast Asian countries. For 2024, the Vimut group targets revenue of 2.3 billion baht, with plans to rebrand Theptarin Hospital as “Vimut Theptarin Hospital,” set to launch in April.

Additionally, through collaboration with KPN Senior Hospital Group, which specializes in elderly healthcare and comprehensive elderly care solutions, we are managing nursing homes in Bangna, Bearing, and Watcharapol, with a total of 240 beds, and opportunities to manage five more nursing homes, aiming to expand the total number of service beds to 600 within three years. We are also continuously constructing a new Vimut Hospital located on Sukhumvit Road and in the Thonburi area.

“For our next steps, Pruksa remains committed to sustainability, emphasizing social and environmental care. In 2023, the group reduced carbon dioxide emissions by 10,000 tons through solar installations, energy-efficient home designs (Passive Home), smart home technology, joint reforestation projects to restore ecosystems, using hollow-core precast concrete to reduce cement use, and employing green technology 'CarbonCure'. We continue to follow our plan to reduce greenhouse gas emissions by 30% by 2030 and achieve carbon neutrality by 2050. In 2023, the group implemented smart office and smart hospital designs that consume less energy, with Vimut Hospital recently receiving the MEA Energy Award from the Metropolitan Electricity Authority (MEA) for promoting energy efficiency improvements in buildings,” Mr. Uthen concluded.