"KUN" Keeps Its Promise, Showcases Record Sales with 800 Million Baht Revenue in 2020, Breaking All-Time Highs

In Q4 2020, total revenue was 303.48 million baht, an increase of 111.68 million baht from the same period last year, which had total revenue of 191.80 million baht. The net profit was 42.03 million baht, an increase of 28.53 million baht from the previous year, which had a net profit of 13.50 million baht. This growth was due to revenue recognition from seven projects launched for sale, six of which are located in Nonthaburi: Kunlaya Begins 1, Kunlaya Joy, Kunlaya Pollan, Kunlaya Symphony, Kunlaya Begins 2, and Kunlaya Preem, with one project located in Chachoengsao: Kunlaya Joy on 314, resulting in total sales of 799.64 million baht by the end of 2020, breaking the sales record since the project launched.

2020 was a challenging year for management. The company had to adjust its marketing strategies in response to changing lifestyles, leading to the concept of new living arrangements under the motto EVERYTHING AT HOME, addressing consumer needs and adapting to the current situation by emphasizing usable space within homes that surpasses competitors.

As a result, all Kunlaya projects have received positive responses and sales success to date. The strategic adjustments, along with effective cost management, have allowed the company to maintain a high profit margin, with a net profit margin of 10.58%.

Additionally, at the board meeting on February 23, 2021, a resolution was passed to allocate the net profit for 2020 to pay dividends in both shares and cash to shareholders at a rate of 0.11 baht per share. The company had already paid an interim dividend of 0.03 baht per share on August 11, 2020. The remaining 0.08 baht per share will have the record date for shareholders entitled to receive dividends on May 12, 2021, and the XD date on May 11, 2021, with payment scheduled for May 24, 2021, after receiving approval from the annual general meeting of shareholders for 2021.

The CEO of Villa Kunlaya Public Company Limited (KUN) further stated that the company aims for a business growth rate in 2021, targeting sales of 1.5 billion baht, up from last year's sales of 1.41 billion baht. The revenue growth target is set at 10-15%, increasing from last year's revenue of 799.64 million baht, with revenue recognition from a backlog of 333 million baht.

The company plans a total investment budget of 1.8 billion baht for new project launches, all of which will be low-rise developments. The company continues to focus on developing areas around Bangkok and its suburbs, including the northern, western, eastern, and southern zones, while maintaining a commitment to creating valuable, affordable products in the price range of 2-5 million baht to meet consumer needs. The new projects are set to be gradually launched in Q3 2021, replacing previous projects that have concluded, featuring similar products but adjusted to better align with target customer groups, located in the Bang Bua Thong area, valued at over 500 million baht.

However, the overall low-rise real estate business in the first half of 2021 has opportunities for continued growth from the previous year, despite increasing competition in the low-rise housing market due to high demand from buyers seeking real housing (Real Demand). This has led both large, medium, and small operators to pay more attention to the low-rise market. The company is studying consumer behavior and developing strategies to cope with competitors by applying the principle of the “Eagle Wing Strategy,” evaluating competitors' strategies in areas such as marketing and project design to adjust the company's operational plans to remain competitive and meet consumer needs.