Pruksa Reports First Half Profit of 1.339 Billion

Highlights Marketing Max Model Strategy, Prepares for Hero Projects in the Second Half

  

Pruksa announced its first half performance for 2020, overcoming the COVID-19 crisis with revenue of 13,308 million baht and a net profit of 1,339 million baht. The company declared an interim dividend of 0.31 baht per share, emphasizing its Marketing Max Model strategy. In the second half, Pruksa is ready to launch 26 highlight projects valued at 34,430 million baht, targeting premium projects for real demand customers in the Chaiyaphruek-Jangwatthana area.

 

Ms. Suphatra Paepeiamsub, Deputy CEO of Pruksa Holding Public Company Limited, stated, "In the first half of 2020, the company generated total revenue of 13,308 million baht, with sales of 9,576 million baht. Sales were comprised of 53% from townhouses, 24% from single-detached houses, and 23% from condominiums, resulting in a net profit of 1,339 million baht. We maintained a strong financial position despite the impact of the COVID-19 outbreak earlier this year, and we quickly recovered by adjusting our business plans to align with the situation. Since the company already had a high number of projects for sale, we focused on stock clearance strategy. In the first half, nearly 70% of our revenue came from ready-to-move-in stock, which aligns with our strategy. Additionally, customer purchasing behavior has shown improvement since May, making our first half performance satisfactory. Therefore, we have approved an interim dividend for the year 2020 at a rate of 0.31 baht per share."

 

“In the first half, the overall real estate market in Bangkok and its vicinity was valued at 128,457 million baht, a decrease of 36%. The transfer of ownership in Bangkok and its vicinity in the first five months was 145,969 million baht, down 8%. Although the COVID-19 situation is improving, the real estate market still requires caution. Therefore, we continue to enhance our prudence and flexibility in adjusting business plans, controlling expenses, and managing liquidity effectively. We are accelerating sales, transfers, and stock clearance (Inventory). Additionally, we have adjusted our sales strategy through digital platforms to effectively reach the customer journey, aligning with changing consumer behavior. We also prioritize studying consumer behavior adapting to the new normal society, both in the short and long term, to enhance product development, innovation, and integrated services across all dimensions.

 

For the second half of the year, if Thailand can continue to control the situation without a second wave of outbreaks, we believe confidence will rise, along with improved market sentiment. Therefore, the company has set a Marketing Max Model strategy, introducing 19 grade A projects valued at 25,650 million baht selected from over 180 current projects. We will remarket new projects, adjusting product details and formats to better meet customer preferences in line with the new normal lifestyle. We will implement a Digital Lead marketing plan using customer data to understand and target advertising more effectively. Furthermore, in the second half, we will focus on the horizontal market, targeting real demand with plans to launch 7 new projects worth a total of 8,780 million baht.

These include 3 townhouse projects, 3 single-detached house projects, and 1 condominium project, selected for their high potential to meet customer needs in terms of quality at appropriate prices, aligning with customer demand and market segment pricing. However, Pruksa remains highly flexible in adjusting plans, allowing for quick increases or decreases in project launches based on the prevailing situation. By the end of September, we are preparing to launch the highlight project of the year, The Palm Chaiyaphruek-Jangwatthana, a premium single-detached house project on 400 rai of land, valued at a total of 1,630 million baht. The design of the interior space is tailored to accommodate the lifestyles of modern families in the new normal, emphasizing functional space for all members and the ability to adapt functional areas according to consumer lifestyles, with prices starting from 7-15 million baht. Additionally, we are preparing to expand our townhouse customer base to the high-end segment of 10 million baht and above, entering the new market with the Patio brand, which will be launched for sale early next year. We have also adjusted our targets for 2020, aiming for revenue of 31,000 million baht and sales targets of 28,000 million baht, which we are confident we will achieve,” Ms. Suphatra concluded.