“ KUN ” Announces Good News with Two Highlights Amidst COVID-19

First Highlight:Q2 Profit Soars 17% - Second Highlight: Interim Dividend of 0.03 Baht/Share

Villa Kunlaya Public Company Limited, or KUN, shares good news with shareholders. The first highlight is a 17% increase in Q2/2020 profit, indicating a rising demand for horizontal housing. The company is pleased to report that bookings for homes during May-June 2020 reached 400 million baht, setting a new monthly sales record since its establishment. In the first half of the year, the company achieved impressive sales of 760 million baht and is also announcing a second highlight: an interim dividend of 0.03 baht per share, with the XD date on August 26 and payment on September 11, 2020. CEO “Pavirat Tevaakson” is confident that total revenue this year will grow by over 15% compared to last year, with sales potentially reaching 1.3 billion baht.

 

Ms. Pavirat Tevaakson, CEO of Villa Kunlaya Public Company Limited (KUN), a leader in horizontal real estate development, particularly in the peripheral areas of Bang Bua Thong, Nonthaburi, revealed the company's Q2/2020 performance ending June 30, 2020, showing total revenue of 164.5 million baht, an increase of 10.4% from last year's revenue of 148.9 million baht, and a net profit of 15.9 million baht, up 17% from last year's net profit of 13.6 million baht. This results in total revenue for the first half of 2020 of 327 million baht, an 8% increase from last year's revenue of 304 million baht, and a net profit of 27.4 million baht, slightly down from last year's net profit of 27.9 million baht.

The significant increase in performance is attributed to a 62% rise in walk-in customers visiting Villa Kunlaya projects during Q2/2020, especially during the COVID-19 situation, as evidenced by the high booking amount of 400 million baht during May-June 2020, marking a new monthly sales record since the company's inception. Additionally, the company has implemented a worst-case scenario strategy to adapt its operations to current conditions, focusing on designing spaces that meet the demand for living arrangements under the concept of "everything at home," where everything happens at home. This approach has allowed all of Villa Kunlaya's projects to meet consumer housing needs comprehensively.

In the first half of the year, the company recognized revenue from five main projects: 1. Kunlaya Joy, 2. Kunlaya Symphony, 3. Kunlaya Begins, 4. Kunlaya Pollen, and 5. Kunlaya Joy on 314, with continuous handovers. In Q2/2020, the company launched two new projects worth a total of 2.33 billion baht, which are continuations of previous projects that received excellent responses, resulting in a backlog of over 400 million baht, which will be recognized continuously. Therefore, the company believes that total revenue in 2020 will grow by more than 15% from last year's revenue of 652.67 million baht.

Regarding sales (Presale) in the first half of 2020 (January-June), the company achieved sales of 760 million baht, accounting for 58% of the annual sales target of 1.3 billion baht, and is confident it will meet its sales goals. In Q2/2020, the company launched two new projects worth a total of 2.33 billion baht: 1. Kunlaya Begins 2, valued at 830 million baht, and 2. Kunlaya Preem, valued at 1.5 billion baht, both of which are best-selling products of the company, aimed at replenishing inventory for existing projects nearing sales closure, supporting growth for the next three years.

Additionally, the company's board of directors has approved an interim dividend payment (January-June 2020) to shareholders at a rate of 0.03 baht per share, totaling 18,720,000 baht. The record date for shareholders entitled to receive the dividend is August 27, 2020, and the XD date is August 26, 2020, with payment scheduled for September 11, 2020.

The CEO of Villa Kunlaya added that the outlook for the horizontal real estate market remains strong, with continuous consumer demand. Statistics show that the segment of customers with real purchasing power, especially those looking for horizontal properties priced below 3 million baht, has significantly increased. This market segment has high demand, and it is acknowledged that competition has intensified, particularly in marketing strategies with promotional campaigns. However, the business strategy planned since the beginning of the year, focusing on products that meet consumer needs, has been effective, especially as the COVID-19 situation has further stimulated housing demand.

Thus, the KUN projects that align with the housing demand trends have driven higher booking rates, making the company's products highly sought after, as every horizontal housing project from KUN meets the criteria of value and desirability under the concept of creating space and happiness, where every area in the home caters to the lifestyle of every family member, including the changing way of life and the emergence of a new working lifestyle termed "everything at home," where everything happens at home.

"Villa Kunlaya has immediately benefited from this demand because the company focuses solely on horizontal properties and emphasizes areas with convenient access to the city via public transport. Additionally, we prioritize space design that can be adapted to changing circumstances, making our products relevant and able to address pain points immediately, as we recognize the increasing demand for horizontal homes. Consequently, we have maximized communication and promotion of our existing projects through all channels, resulting in record-high home bookings recently."