SC Reports Growth in Revenue and Profit, Showcases 44% Revenue Increase and 107% Profit Growth in First Half of the Year, Plans to Launch 15 New Projects Worth 15 Billion Baht in the Second Half with a focus on re-inventing itself as a Living Solutions Provider.

Mr. Natthapong Khunakarawong, CEO of SC Asset Corporation Public Company Limited, a leading real estate development company, summarized the positive performance in the first half of the year: "In the first half of the year, SC has seen growth in both revenue and net profit, summarized as follows:

  1. 1. Total revenue of 6,652 million baht, a growth of 44% (yoy), with the main revenue coming from projects for sale at 6,223 million baht, accounting for 94% of total revenue, consisting of:

1.1 Revenue from the sale of horizontal properties at 4,522 million baht, a growth of 49% (yoy). Compared to the same period last year, the growth in horizontal properties is notable in three segments:

  • Luxury homes priced at 20 million baht and above, growing by 67%
  • Homes priced between 8-20 million baht, growing by 512%
  • Homes priced below 5 million baht, growing by 132%

1.2 Revenue from condominium sales at 1,701 million baht, also growing by 49% (yoy), mainly from the transfer of the SALADAENG ONE project at 1,119 million baht, with the remaining 582 million baht coming from completed condominiums from the CHAMBERS, CENTRIC, and THE CREST projects.

  1. Net profit of 704 million baht, a growth of 107% (yoy), due to two main reasons:

2.1 Revenue growth in both horizontal and vertical properties, with the transfer of SALADAENG ONE condominiums starting in Q2.

2.2 Improved efficiency in expense management, particularly in marketing, with revenue growing by 49% while marketing expenses decreased by 13%. This was achieved through a Joint Business Partner (JBP) initiative with Google and nearly 100% increase in online marketing compared to last year, along with a 15% average reduction in management expenses for horizontal projects.

Total sales for the first half amounted to 7,235 million baht, with horizontal and vertical properties accounting for 70% and 30%, respectively. As of June 30, 2018, the company and its subsidiaries had total assets and liabilities of 41,711 million baht and 26,583 million baht, respectively.

In the second half, SC plans to launch a total of 51 projects with a total value of 47 billion baht, including 15 new projects worth 15 billion baht and 36 ongoing projects worth 32 billion baht. The backlog or sales awaiting transfer amounts to 10,730 million baht, with 45% expected to be recognized as revenue in 2018, ensuring confidence that SC will meet its sales and revenue targets of 17 billion baht for this year.

The plan to launch 15 new projects includes:

1 condominium project: CHAMBERS On Nut Station, project value 1,700 million baht, priced between 3-5 million baht.

Along with horizontal projects at all price levels, totaling 14 projects with a combined value of 13,300 million baht, as follows:

Homes priced between 3-60 million baht, totaling 10 projects, including:

  1. The Gentry Ekkamai-Ladprao
  2. Grand Bangkok Boulevard Ramindra-Serithai
  3. Bangkok Boulevard Srinakarin-Bangna
  4. Bangkok Boulevard Rama 9-2
  5. Bangkok Boulevard Ramindra-Serithai
  6. Venue Tiwanon-Rangsit
  7. Venue Westgate
  8. Venue Rama 9
  9. Pef Pinklao-Salaya
  10. Pef Motorway-Chachoengsao

2 townhome projects and 1 home office project priced between 2-10 million baht, including:

  1. Work Tiwanon-Rangsit
  2. Work Rama 9
  3. Workplace Petchkasem 81-2

Along with a new brand called "V Compound," offering homes and townhomes priced between 3-7 million baht.

  1. V Compound Ratchaphruek-Pinklao project

With the Re-invention 2020 strategy aimed at becoming a Living Solutions Provider, progress has been made as follows:

  1. Collaboration on the Baan Rue Jai Application with Fire One One Co., Ltd. to create a close communication experience between SC and the SC Family, available for download on both iOS and Android in Q4, featuring important functions such as repair notifications and One-on-One Conversations, allowing SC Family members to contact SC and track repair status anytime, 24/7. New features will be added quarterly based on a human-centric approach.
  2. Collaboration with various business partners in the ecosystem, starting with the allocation of 6 rai of land in front of Bangkadi, Pathum Thani, covering 240 rai, to develop public spaces for the benefit of residents and the community.
  3. Beginning renovations of over 1,500 sq.m. on the 14th floor of the Shinawatra 3 building to create a co-working space to promote co-creation with startups and various business partners, set to open in Q2/2019.
  4. Working with leading consultancy Slingshot Group to adjust the corporate culture to support growth in a new context for everyone in the organization and new generations joining SC in the future.

Mr. Natthapong concluded, "The new context is changing the landscape of SC's business. We will continue to grow sustainably as a Living Solutions Provider, integrating innovation with housing to meet the needs of modern and future living. We are always ready to adapt and learn from the ever-changing behaviors of residents, but two things will remain unchanged: high quality and sincerity from SC."

Thank you for the information from www.scasset.com