J.S.P. Property Public Company Limited is spreading its wings of success after achieving first-quarter revenue for 2018 that surpassed expectations at 1,044.718 million baht. As it enters a new era, the company is bringing in professional executives to strengthen its team and aims to increase its total net profit by 15% for the entire year, alongside unveiling a strategic plan to aggressively enter the low-rise market.

    Mr. Pairoj Watthanaworodom, Managing Director of J.S.P. Property Public Company Limited, revealed that following past successes in 2016-2017, the company launched over 25 projects and saw a steady increase in sales. Notably, in 2017, the company achieved total revenue of 4,521 million baht, up from 3,327 million baht in the same period the previous year, marking a 35% increase year-on-year. This propelled the company into the top 10 of Thai real estate brands in the segment of properties priced below 5 million baht. Furthermore, in the first quarter of 2018, the company climbed to the 6th position among Thai real estate brands in the same price segment.

     “Recently, at the beginning of this year, the company underwent a significant change with the introduction of new shareholders, including Mr. Likit Luesakulkitpaisarn, who has taken on the role of Chairman of the Board and Chief Executive Officer. He brings expertise in management and fundraising, along with a new vision to drive J.S.P. towards greater clarity. The short-term goal is to strengthen the foundation for stability and liquidity. Additionally, within 3 years, the company aims to achieve a growth rate of no less than 25% and focus primarily on developing low-rise properties under the operational principles of creating assets, trading assets, and developing assets.”

     Mr. Pairoj stated that the company will continue to build on last year’s successes, and 2018 will be a year of Keep Fighting against major brands competing in the real estate market for properties priced below 5 million baht. The focus will be on sustainable growth, emphasizing an increase in net profit growth. The company will adjust its operational ratios and generate revenue from two main business segments: the residential development business will increase its gross profit (GP), while the commercial real estate or leasing business will reduce unnecessary expenses to ensure positive net profit.

     Additionally, the company has recruited a professional executive with expertise in financial structuring and leasing market management, namely Mr. Somchai Varunpanthulak, who will serve as Managing Director. He will oversee operations and financial structuring to ensure net profit increases and reduce depreciation in the leasing business segment, aiming to return to positive figures while targeting a total revenue of 4,700 million baht by year-end.

     The company’s operational strategy has been defined in four dimensions. In terms of finance, it will proceed in three steps: converting short-term loans into long-term ones. To date, J.S.P. has repaid debts totaling 2,500 million baht, including 1,100 million baht in bonds and 1,400 million baht in short-term bills of exchange (B/E). This has made financial institutions ready to support loans for project development. Meanwhile, the company plans to lower its financial costs by issuing new bonds with a maturity of 2-3 years, with plans to issue 1,000 million baht in bonds in the third quarter, aligning its debt structure with project development in collaboration with financial institutions.

     Nevertheless, with the new shareholders' policies and the company’s strategic plans set for this year, J.S.P. is expected to recognize revenue from both the real estate and leasing business segments. This is seen as a year of harvesting revenue for J.S.P., with confidence that sales will exceed targets and that the company can secure a spot in the top 5 real estate brands for low-rise projects in the 3-5 million baht price range, achieving the highest revenue in the country. All of this will contribute to significant growth in the new era under the new shareholders and professional executives who will join forces to ensure J.S.P.'s stability for the future,” Mr. Pairoj concluded.

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