Ananda Development Public Company Limited, or ANAN, a leader in urban residential development and the top market player in condominium projects near BTS stations, has revealed its performance for the second quarter of 2019, showcasing disciplined financial growth. The company reported total revenue of 2,037 million baht, a 12% increase from the first quarter, with property sales rising by 12% to 871 million baht. Additionally, sales surged by 27% compared to the first quarter, achieving over 6,100 million baht in sales, and a cumulative sales figure for the first half of the year exceeding 11,000 million baht. In the second half of 2019, the company plans to launch 7 new projects worth over 22,000 million baht, focusing on the mid-end market in line with the expansion of the BTS network from 80 stations to 300 stations.

          Dr. Chaiyut Choonhacha, Chief Financial Officer of Ananda Development Public Company Limited, stated, "The performance in the second quarter of Ananda is satisfactory given the challenging real estate market conditions both domestically and internationally. We believe that the demand for housing, especially near BTS stations, remains strong. In Q2 2019, the company reported a net profit of 120 million baht, a 79% decrease from the same quarter last year, with a half-year net profit of 352 million baht, down 52% from the previous year. This decline was primarily due to a decrease in profit share from joint venture investments, as the proportion of completed joint venture projects ready for transfer in Q2 2019 was lower than in Q2 2018, which had large joint venture projects like Ashton Asoke and Ashton Chula-Silom that were completed on schedule.

          Furthermore, the company is well-prepared to adapt and continuously develop its products. After launching the Ideo Q Phaholyothin-Saphan Khwai project in May, it became clear that there was a demand from more than three times the number of interested customers for this project. As a result, the company is considering and adjusting the project to align with customer needs and market conditions by incorporating BIM construction technology and other modern construction technologies to enhance cost management efficiency in collaboration with all strategic partners. The new starting price is expected to be 149,000 baht per square meter, which will also improve profit margins. A soft opening for the new project under a new mid-end brand is planned for Q4 2019, with construction completion scheduled for the first quarter of 2022.

          As of the end of Q2 2019, the company has a backlog of 33,200 million baht to support growth in transfers over the next three years. The backlog for transfers in 2019 is valued at over 12,240 million baht, accounting for 64% of the transfer target for the second half of this year, with an annual transfer target exceeding 29,000 million baht. Additionally, there are plans to launch 7 new projects in the second half of the year, with a total project value of 21,930 million baht, including 6 condominium projects near BTS stations valued at 20,496 million baht and one URBANIO single-family project at Vibhavadi-Chaeng Watthana valued at 1,434 million baht, which is a new brand project to support future growth.

          "The company's cash flow remains strong, with over 5,900 million baht in cash at the end of the quarter. The company continuously monitors both domestic and international factors and is prepared to adjust its business plans if necessary to maintain long-term stability. All of the company's business plans continue to support ongoing growth and reaffirm its leadership in the condominium market near BTS stations in Thailand while maintaining strict financial discipline, targeting a long-term debt-to-equity ratio of 1. This ensures that the company's growth does not increase risks that could impact its long-term stability," Dr. Chaiyut added.

          The annual general meeting of shareholders approved an interim dividend payment of 9.1 satang per share, representing a dividend payout ratio of 86%, the highest since the company’s IPO.

Thank you for the information from https://www.ananda.co.th/