L.P.N. is advancing towards creating balance in portfolio management, both in investing in residential project development and establishing new businesses to maintain sustainable growth rates for the organization in the year 2024 under the leadership of “Apichart Kasemkulseri,” the new Chief Executive Officer.

Mr. Apichart Kasemkulseri, CEO of L.P.N. Development Public Company Limited, discussed the company's management approach following his appointment on February 1, 2024, stating that L.P.N. is a comprehensive real estate business group (Self-fulfillment). In addition to developing residential projects, including condominiums and houses, L.P.N. also has affiliated companies that engage in related businesses and generate income for the company. These include project management company LPP Property Management Co., Ltd. (LPP), engineering service provider LPS Project Management Co., Ltd. (LPS), and security company LSS Solutions Co., Ltd. (LSS), among others, all of which have been continuously expanding in recent times.

“As CEO, my role is to look forward to other businesses beyond our expertise in real estate to identify new ventures that will provide medium- and long-term returns for shareholders, in addition to our core real estate business. This is a crucial strategy for creating balance in business growth (Rebalance for Sustainable Growth) in the long term through harmonized efforts across all business sectors,” Mr. Apichart stated.

Under this strategy, the company has a plan to create balance in 3 dimensions to foster simultaneous business growth in all aspects (Stronger Together):

  1. Rebalance Portfolio Creating balance in real estate business development, including project development, services, and research and development, leveraging the strengths of each business unit to enhance and drive the organization forward together. The focus in the first year of my tenure is to strengthen our expertise in developing quality housing under the concept of “livable” (5C) and to improve and address L.P.N.'s limitations to enhance competitiveness in the market. The primary goal is to create portfolio balance by increasing revenue and reducing costs. Currently, the company has a backlog of 2.3 billion baht in sold products awaiting transfer. The company plans to increase sales using pricing strategies and appropriate incentive rates for departments and the company's sales network to stimulate sales, aiming to sell existing inventory of no less than 4.5 to 5 billion baht, up from 4 billion baht in 2023, with a sales target of 11 billion baht in 2024, a 10% increase compared to the 10 billion baht sales at the end of 2023.
  2. Rebalance Resource Creating balance by allocating existing resources and generating value for the organization by utilizing the expertise of each department to support L.P.N.'s management and operations more cohesively, enhancing potential and efficiency in operations. This is a long-term organizational development approach. Currently, L.P.N. has several growing affiliated companies that support each other from the initial product development stage to comprehensive after-sales service, referred to as LPN Completed Ecosystem, which includes:
  • LWS Wisdom and Solutions Co., Ltd. (LWS) is responsible for research and area studies to develop products and services for the company and its affiliates, as well as external companies. Additionally, it provides consulting and research services in GREEN or Sustainable Development and BIM (Building Information Modeling).
  • LPS Project Management Co., Ltd. (LPS) is responsible for engineering services and real estate consulting, including construction supervision, focusing on delivering product value to customers.
  • LPP Property Management Co., Ltd. (LPP) is responsible for comprehensive after-sales services for both condominiums and houses, covering community management aimed at maintaining project value, residential building management, commercial property management, and managing common property systems, as well as screening tenants for community safety.
  • LPC Social Enterprise Co., Ltd. (LPC) is responsible for comprehensive community service, primarily focusing on cleanliness in projects developed by L.P.N. and other external projects.
  • LSS Solutions Co., Ltd. (LSS) specializes in integrated security services, including quality personnel and professional systems, ensuring safety standards and providing services according to customer needs (Service Level Agreement or SLA), and also includes cleaning services, expanding the customer base to other commercial buildings such as hospitals, hotels, and shopping malls.
  1. Rebalance Stakeholders’ Wealth The management approach to create balance in the first two dimensions will lead to better returns for all stakeholders, including investors, shareholders, employees, and business partners, ensuring they receive appropriate returns. Additionally, there are growth opportunities by bringing well-performing affiliates to be listed on the MAI stock market, particularly LPP Property Management Co., Ltd. (LPP), a leader in community management and building resource management, currently managing over 260 projects in the Bangkok metropolitan area and provinces, covering a population of over 300,000 people, a business that shows continuous growth potential. The plan is to list LPP on the MAI stock market within this year, depending on market conditions and other surrounding factors at the time of the offering.

It is anticipated that listing LPP on the MAI stock market will separate the service business from the real estate business, allowing L.P.N. to recognize the true value of the service business, which currently accounts for over 40% of L.P.N.'s operational profits. This will also promote sustainable growth strategies. In 2023, LPP generated approximately 1.56 billion baht in revenue and net profit of about 139 million baht, reflecting a revenue growth rate of over 80% and a net profit growth rate of over 23% within three years. Thus, the listing on the MAI stock market will enable LPP to invest in partner companies to expand engineering and real estate consulting services, enhancing its leadership in community and building resource management by developing an application system to support resident services and connect partners providing related services 24/7. This presents new business opportunities that will enhance L.P.N.'s profitability and create revenue balance for the organization, as L.P.N.'s performance has been declining over the past five years, with profits dropping from 1.256 billion baht in 2019 to 353 million baht in 2023. Meanwhile, L.P.N. plans to bring well-performing affiliates to raise funds in the MAI securities market to create optimal resource management balance.

“As I have expertise in finance, I prioritize managing the financial structure while also maximizing the benefits of existing assets. L.P.N. is a financially strong organization. We can manage our investment portfolio to create added value for the organization and enhance returns for all stakeholders, including investors, shareholders, employees, business partners, and the supply chain,” Mr. Apichart added.

Regarding the investment plan for the year 2024, Mr. Apichart stated that the company plans to launch 6 new projects worth 6.52 billion baht, consisting of 1 residential condominium project worth 980 million baht and 5 housing projects worth 5.54 billion baht, primarily located in the Bangkok metropolitan area.

“80% of the Gross Domestic Product (GDP) is in Bangkok, while the remaining 20% is in other provinces. L.P.N.'s project development will prioritize areas in Bangkok, the metropolitan area, and surrounding areas within a two-hour travel time from Bangkok, rather than expanding into distant provinces. We have purchased land in Nakhon Pathom for project development and plan to collaborate with foreign investors interested in investing in Thailand, currently negotiating with 2-3 parties for joint ventures and turnkey investments,” Mr. Apichart stated.

The company has an investment budget for land acquisition in 2024 of 1-2 billion baht, sourced from the company's cash flow, loans from financial institutions, and bond issuance. In January, the company successfully issued bonds worth 1.5 billion baht, reflecting investor confidence in L.P.N.'s operations.

“As of December 31, 2023, L.P.N. has a registered capital of 1.454 billion baht and has accumulated profits for 30 years, resulting in current shareholder equity of 11.959 billion baht. This amount allows the company to invest further in both real estate and other businesses, generating long-term revenue. As of the end of 2023, L.P.N. reported sales and service revenue of 7.407 billion baht, a decrease of approximately 28% from 10.276 billion baht, with a net profit of 353 million baht, down 42% from 612 million baht at the end of 2022. Due to this performance, the company's executive board resolved on February 15, 2024, to pay a dividend of 0.13 baht per share to shareholders registered on February 29, 2024. The company has already paid an interim dividend of 0.08 baht per share on August 31, 2023, requiring an additional payment of 0.05 baht per share on April 17, 2024,” Mr. Apichart added.