SENA launches a market stimulation campaign, achieving revenue of 1,160.6 million baht in Q3 2019, up 7.6%. The company showcases a robust backlog of 12,860 million baht, pleased with the strong performance of solar rooftop income. Meanwhile, LTV measures continue to affect consumer confidence, delaying purchasing decisions. The "real demand" customer segment remains a key target during this period of declining interest rates. Recently, SENA introduced 3 new projects, both horizontal and vertical, as a year-end push to meet sales targets.

           Ms. Athika Boonrodchu, Director of Funding and Investment at SENA Development Public Company Limited, a leading real estate developer of both horizontal and vertical projects, revealed that the real estate market in Q3 2019 has improved among consumers seeking housing, particularly "real demand" buyers or first-time homebuyers. This is due to decreasing interest rates on housing loans and increased market stimulation campaigns from developers since the beginning of the year. SENA's campaign "Made From Her, Bring Her to Great Deals" has helped boost transfers in Q3 2019, resulting in revenue of 1,160.6 million baht, a 7.6% increase from the same period last year, with a net profit of 107.3 million baht. For the first nine months (Jan-Sep 2019), total revenue reached 3,503 million baht, with a net profit of 381.7 million baht, down 35% compared to the same period last year.

           The decline in net profit is attributed to the economic slowdown and the Bank of Thailand's LTV measures controlling housing loans for second and third contracts. Nevertheless, the company aims to launch a total of 11 new projects comprising 3,315 units, valued at 10,172 million baht. In the past nine months, the company has launched 8 new projects worth 7,195 million baht. Currently, the backlog stands at 12,860 million baht (as of the end of September 2019), which will gradually generate revenue until 2025.

In Q3 2019, the company's revenue from operations was divided into residential sales revenue of 785.5 million baht, an increase of 2.8% from the previous year. When combined with the nine-month revenue, it totaled 2,321.4 million baht, a decrease of 28.7% compared to the same period last year. However, the company continues to recognize revenue from property transfers, including the "Niche" brand with 509 units valued at 1,151 million baht, the "The Kit" brand with 335 units valued at 558.4 million baht, and various types of properties under the SENA Parkville, SENA Park Grand, SENA Ville, and Prama Pra projects totaling 52 units valued at 306.7 million baht, as well as shop houses and avenues totaling 23 units valued at 187.7 million baht. Additionally, revenue from rural projects under SENA Vanit Development Co., Ltd. includes 3 projects with 57 units valued at 116.1 million baht.

           Simultaneously, rental and service income amounted to 324.2 million baht, an increase of 41.6% compared to the same period last year. This includes rental income from apartments of 3.1 million baht, property management income of 10.4 million baht, warehouse rental income of 6.3 million baht, community mall income from Sena Fest of 17.1 million baht, golf course income of 20.6 million baht, project management income of 259.9 million baht, land rental income of 0.9 million baht, real estate sales commission income of 4.2 million baht, and construction contract income of 1.7 million baht. The increase is due to the company's growing project management income in 2019, resulting in total rental and service income for the nine-month period of 997.4 million baht, an increase of 489.7 million baht or 96.5% compared to the same period last year, which had rental and service income of 507.7 million baht. Meanwhile, income from the solar business was 16.1 million baht, down 43.5% from the same period last year, while for the first nine months (Jan-Sep 2019), it was 79.2 million baht, an increase of 114.1% compared to the same period last year, as the company continues to recognize solar business income and profit shares from investments amounting to 73 million baht. The solar business is expected to continue growing, especially among businesses and industries looking to install solar rooftops to enhance energy efficiency and reduce energy costs.

           For the plan to launch new projects in Q4 2019, SENA plans to open 3 more projects, including both housing and condominiums, with a total project value of approximately 2,977 million baht, comprising the Sena Grand Home Ram Inthra Km. 8 project, the Sena Ville Lam Luk Ka Klong 6 project, and the recently launched Sena-Asu Rama 9, a new condominium brand.

           However, in 2019, the real estate market continues to face uncertainties, including domestic factors such as LTV measures and rising household debt, leading to a contraction in loan approvals since Q2, affecting homes and condominiums across all price levels. It is expected that in the remaining months of the year, the real estate market will not be able to grow as it has in previous years, marking another challenging year for the real estate business, impacted by various factors that are expected to continue affecting the sector into 2020.

Thank you for the information from www.sena.co.th