All businesses under Prebuilt have shown improved profit margins, while the real estate sector is booming with overwhelming transfer volumes for the Phanna project, ensuring significant growth throughout 2021.

Prebuilt reported a remarkable 85.53% increase in Q2 profits, defying the challenges posed by COVID-19. The company has successfully enhanced profitability across all its subsidiaries by leveraging every resource to mitigate the pandemic's impact, including restructuring construction contract prices and improving cost control. The surge in transfers for the Phanna luxury housing project has attracted a massive customer response, prompting the company to expand its offerings with Pimnara Srinakarin-Bangna to meet the demand for horizontal housing. The company is confident of achieving substantial growth in both revenue and profit this year.

Mr. Wiroj Jaroentra, Managing Director of Prebuilt Public Company Limited (PREB), disclosed that the company continues to achieve growth in both revenue and profit amidst the COVID-19 crisis. The net profit reached 61.42 million baht, an increase of 28.32 million baht or 85.53% compared to the same period last year, which recorded a net profit of 33.11 million baht. Compared to the previous quarter (Q1 2021), profits increased by 3.77 million baht or 6.53%, primarily driven by the construction contracting business and the real estate development sector, which saw a rise in home transfers from the Phanna project.

In Q2, the company reported revenue of 1,128.21 million baht, an increase of 59.41 million baht or 5.55% from the same period last year, which had revenue of 1,068.80 million baht. This includes revenue from the construction contracting business at 900.10 million baht, revenue from the manufacturing and sales of construction materials at 85.84 million baht, and revenue from real estate development at 142.27 million baht.


Mr. Wiroj Jaroentra, Managing Director of Prebuilt Public Company Limited (PREB)

Mr. Wiroj stated that despite being in the midst of the COVID-19 outbreak, all of the company's businesses have managed to maintain consistent revenue and profits. Importantly, the company has achieved a higher gross profit margin due to improved operational efficiency and cost control, along with revenue recognition from real estate development that positively impacted Q1.

In Q2, the company reported a gross profit of 145.59 million baht, an increase of 49.42 million baht or 51.38% from the same period last year. The gross profit margin increased to 12.90%, up from 9.00% in the previous year. The construction contracting business achieved a gross profit margin of 9.31%, improved from 7.56% last year, as the company was able to adjust pricing structures in response to the ongoing COVID-19 pandemic. Additionally, the construction materials sales and production business maintained a gross profit margin similar to last year at 25.81%, while the real estate sector achieved a high gross profit margin of 27.88%.

“The overall market for horizontal real estate continues to grow because there is still purchasing power and demand in this segment, which benefits the company's construction materials sales and real estate development businesses, focusing on high-end horizontal homes. Meanwhile, the construction contracting business has a backlog of over 8 billion baht. Although the intensified COVID-19 outbreak has impacted both real estate development and construction contracting businesses directly and indirectly, creating uncertainties and potential cost increases due to work stoppages from government measures, the company has adapted by adjusting contract prices and enhancing cost control measures. This has allowed the company to maintain strong profitability and high gross profit margins across all businesses,” Mr. Wiroj stated.

Mr. Wiroj also discussed the real estate development business, which in Q2 generated revenue from transfers amounting to 142.27 million baht for the Phanna high-end single-family home project in the Phutthamonthon Sai 3 area. This is the company's first self-invested real estate development project, which received positive feedback from the completed Phase 1 sales and has immediately launched Phase 2 in July, also receiving favorable responses. Customers continue to show confidence and interest in visiting the project despite the COVID-19 outbreak. Currently, reservations for the project have reached a value of over 760 million baht out of a total project value of over 1,250 million baht, resulting in a backlog that will gradually recognize revenue through next year.

Additionally, the company plans to launch the Pimnara Srinakarin-Bangna project, which is also entirely self-invested. Exclusive previews will be offered to interested customers who registered earlier during August-September 2021, allowing them to reserve prime plots at special prices before the official launch. The company is confident of receiving positive feedback from customers, both for the house designs and the project concept that embodies a JAPANDI style, blending contemporary materials in architecture under the concept of LESS FOR MORE LIVING.

Overall, the company is confident that its operational plans, which align with targets and efficiency, will lead to outstanding performance in Q3 and Q4 of this year, achieving significant growth in both revenue and profit compared to last year across all sectors, including real estate development, construction contracting, and the manufacturing and sales of construction materials, despite the challenges posed by the COVID-19 pandemic and various negative factors throughout the year.