"SENA" has a backlog of 12 billion baht, expecting to recognize over 4 billion baht this year. In the second half, the company plans to launch 9 new projects with a total value of 12 billion baht. The financial results for the first six months of 2019 show total revenue of over 2,342 million baht. Despite a negative overall real estate market, the solar business has surged by over 1,793%. The company anticipates a recovery in the real estate market in the second half, benefiting from government economic stimulus measures and the Bank of Thailand's relaxation of LTV criteria for joint borrowers.

            Assoc. Prof. Dr. Kesara Thanyalakphak, Deputy CEO of Sena Development Public Company Limited (SENA), a leading real estate developer for both horizontal and vertical projects, stated that the overall economy in the second quarter of 2019 continues to slow down from the first quarter due to export impacts from the US-China trade war, along with the implementation of housing loan regulations (LTV) by the Bank of Thailand, which has resulted in a slowdown in the real estate business in the second quarter compared to the first quarter.

            As a result of these factors, total revenue for the first six months of 2019 was 2,342.35 million baht, a 17% decrease compared to the same period last year, with a net profit of 279.1 million baht, down 28.4% year-on-year. For the second quarter of 2019, revenue was 1,129 million baht, a 34.9% decrease, with a net profit of 119.4 million baht, down 47% compared to the same period last year.

            However, the company's solar business has seen exponential growth, with revenue of 58.7 million baht, an increase of 55.6 million baht, representing a staggering 1,793.5% increase compared to the same period last year. This growth is attributed to agreements for the sale and installation of solar rooftop systems with Index Living Mall Public Company Limited, with revenue recognition starting from June.

            "In our solar business, this year has seen continuous growth due to agreements with business partners for equipment sales and installation services. Sena's expertise, combined with the trend of businesses recognizing the importance of energy management to reduce costs, presents an opportunity for the company to sell equipment and provide installation and maintenance services. The government continues to promote energy conservation by allowing the public to participate in solar rooftop installations and sell electricity back to the grid under the community solar project, leading to continuous market expansion in solar energy," said Assoc. Prof. Dr. Kesara.

            To align with the slowing economy and the impact of LTV measures, as well as the ongoing shortage of construction contractors due to large-scale projects from both the public and private sectors, the company has adjusted its plan for new project launches, postponing them from the second quarter to the third and fourth quarters of 2019. In the second half, the company plans to launch 9 new projects, consisting of 4 horizontal projects and 5 vertical projects, with a total value of 12 billion baht.

            This year, the company also has a backlog of sales waiting to be recognized as revenue (Backlog) valued at 12,583 million baht as of the end of June 2019, which will gradually be recognized as revenue in the remaining part of 2019, approximately 4,582 million baht, and continue until 2024.

            For the overall real estate business in the third and fourth quarters of this year, it is expected to improve due to the economic trends showing signs of recovery from the first half, driven by government economic stimulus measures, including tourism initiatives, agricultural price guarantees, and assistance for low-income individuals, which will boost domestic purchasing power. Additionally, the advancement of large investment projects will play a significant role in driving the domestic economy, leading to increased industrial investments and job creation.

            Furthermore, the Bank of Thailand has relaxed LTV measures to help mitigate the impact on joint borrowers who do not own residential property, allowing them to obtain loans more appropriately. This will help alleviate some of the impacts from the LTV measures.

            "Sena's business plan focuses on developing projects that meet the housing needs of each area, conducting market research to align with changing consumer behaviors, and studying and developing products that meet demand in each location. This leads to plans for launching new projects with potential to compete in a highly competitive market, under the perspective and concept of 'small is BIG' and 'MADE FROM HER 2019', which pays attention to every detail of life from a feminine perspective, addressing key market segments and creating differentiation in the real estate industry.

 

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