CHEWA is ready to expand! The company is adjusting its sustainable growth strategy in collaboration with partners, focusing on increasing revenue and continuously reducing debt. This includes promoting Mega Sales, ensuring that customers can buy what they want, which has received a consistently positive response. The company aims to boost income from rental and corporate services while steadily decreasing debt, emphasizing customer care. They are preparing to acquire land for 4 new projects valued at a total of 2.395 billion baht, with a revenue target of 2 billion baht for the year 2025.

Mr. Boon Chunkiat, Managing Director of Chewathai Public Company Limited (CHEWA), revealed that in 2025, Chewathai will continue to study and develop residential projects in high-potential locations throughout Bangkok and its suburbs. The focus will be on segments where the company has expertise and has received positive feedback, specifically condominium projects priced between 2-4 million baht under the main brand Chewathai Hallmark. The plan includes acquiring land for 4 new projects worth a total of 2.395 billion baht. Additionally, negotiations are underway to purchase 1-2 under-construction condominiums for quicker revenue recognition this year, aiming for a revenue target of 2 billion baht in 2025. The company is also expanding new business opportunities to increase recurring income, focusing on investments in businesses that are synergistic with its existing operations, such as the second-hand home business under the Chewa Renue brand and corporate services, while exploring other businesses that will promote and generate continuous revenue for the company.

The strategy for this year includes building on successful sales policies, such as the "Want to Buy, Must Buy" promotion, which provides financial consulting services to assist customers facing challenges with loan documentation, debt management, or financial discipline issues that prevent them from securing loans. Chewathai will offer long-term support and advice to customers until they can successfully secure loans and transfer ownership. This has resulted in a backlog of clients who have been with us for a long time, some for over 6 months, gradually improving their financial discipline until they can successfully obtain loans. Furthermore, to enhance competitiveness, Chewathai will hold a major promotion called "MEGA SALES" to give back to customers throughout the year, which is expected to attract ongoing customer interest.

"The company plans to reduce its total bond debt by 470 million baht, having already reduced 250 million baht this year through bond repayments. By 2025, we aim to accelerate debt reduction by another 220 million baht. This planned debt reduction will significantly lower interest expenses, reducing the company's financial costs and increasing profits from decreased interest payments, while also improving financial liquidity. Importantly, this will also lower the company's debt-to-equity ratio," he added.

Currently, the company has a backlog of sales awaiting revenue recognition (as of December 31, 2024) valued at 949 million baht. In addition to revenue from Chewathai's existing real estate sales, the company is actively generating income from joint venture projects with partners. Key projects expected to generate revenue this year include the "Chewathai Hallmark Ekkamai-Ramintra" condominium project, valued at 1.014 billion baht, in collaboration with Nippon Steel Kowa Real Estate Co., Ltd. (NSKRE), a leading real estate developer from Japan, which has received positive feedback from local customers. Additionally, there is a ready-to-rent factory business in the Amata Nakorn Industrial Estate in Rayong, in partnership with Uwork 999 and Neo727, a well-established and recognized construction company.

Regarding the overall real estate market situation last year, it experienced contraction due to the sluggish economy and strict lending policies from financial institutions. Despite government measures to stimulate the market by reducing transfer and mortgage fees from 3% to 0.01% and raising the ceiling from 3 million baht to 7 million baht, there were still several negative factors impacting the overall situation, such as policy interest rates, which affected customer confidence. Although Chewathai has been impacted by a slowdown in customer interest, statistics show that the number of customers visiting projects has not decreased, but the decision-making process has taken longer, and the chances of successful loan applications have decreased. The company has therefore adjusted its policies and promotions to align with the situation, including providing long-term loan application consulting to customers. Additionally, the company has been collecting data and soliciting feedback from customers to respond with promotions and services that impress all customers, ensuring confidence in product quality and care both before and after sales, despite the impact of market trends that have led to increased costs.

In terms of performance for 2024, the company reported total revenue of 1,927.83 million baht, an increase of 28.79 million baht or 1.52% from the same period last year, with revenue from condominium projects amounting to 1,236 million baht, up 12.30% from the previous year. Revenue from horizontal projects was 549 million baht, down 12.30% from the previous year. Additionally, revenue from the second-hand home project was 53 million baht, and other revenues amounted to 112.68 million baht, accounting for 5.8% of total revenue. The main sales growth came from condominium projects priced between 2-4 million baht, including Chewathai Hallmark Ladprao-Chokchai 4 Phase 2, Chewathai Pinklao, and Chewathai Kaset-Nawamin. However, horizontal projects, including townhomes/commercial buildings and single-detached houses, saw a decline due to issues with customer loan rejections, even though the company had increased accumulated contracts. This resulted in an inability to transfer ownership as planned, leading to a net loss of 356.37 million baht for the year, primarily due to provisions for loss reserves from declining project values.

"The company remains focused on cost and expense management policies to ensure efficiency, as well as implementing sustainability principles (ESG) within the organization. Additionally, we are utilizing CHEWA AI with a team dedicated to learning and applying artificial intelligence (AI) technology to drive the organization towards sustainability under the vision 'Enhancing Sustainability through Artificial Intelligence.' This has already been widely implemented and received positive feedback, such as using CHEWA AI to provide information to investors at the Chewa Opportunity event, the first of its kind in Thailand, to enhance product quality and organizational growth for maximum efficiency and to conduct business in a stable and sustainable manner," Mr. Boon Chunkiat concluded.