RML has announced its first half 2021 financial results, showing a profit growth of 138.5% with total revenue reaching 2,008.7 million baht. The company's backlog stands at 5,655.1 million baht. For the second half of 2021, RML aims to boost sales for the luxury condominium projects The Estelle Phrom Phong and TAIT Sathorn 12, while preparing to launch 3 new ultra-luxury projects.

 

Mr. Karon Narongdej, CEO of Raimon Land Public Company Limited (RML), a leading luxury real estate developer in Thailand, revealed that the company's total revenue for the first half of 2021 was 2,008.7 million baht, an increase of 959.3 million baht or 91.4% from 1,049.4 million baht in the same period last year. The gross profit margin improved significantly from 9.3% last year to 24.9%, resulting in a net profit of 104 million baht, a turnaround from a net loss of 269.9 million baht in the previous year, marking an increase of 138.5%.


Mr. Karon Narongdej, CEO of Raimon Land Public Company Limited

In the second quarter of 2021, the company reported total revenue of 409.5 million baht, down from 625.8 million baht in the same period last year, a decrease of 216.3 million baht or 34.6%. However, the gross profit margin improved significantly from 7.8% to 25.8%, leading to a reduction in net loss from 130.4 million baht in the same quarter last year to a loss of only 34.3 million baht this quarter.

For the first half of 2021, the company's presales amounted to 1,469.1 million baht, down from 1,881.2 million baht in the same period last year, a decrease of 412.1 million baht or 21.9%. Additionally, the backlog as of June 30, 2021, stood at 5,655.1 million baht, primarily from the projects The Lofts Silom and other completed projects ready for transfer, such as The River, The Lofts Asoke, The Diplomat 39, and others.

The increase in revenue and profit for the first half of the year was attributed to promotional activities that accelerated sales and revenue recognition from The Lofts Silom and The River projects. The company also closed old projects with special discounts last year, which improved profit margins this period. Meanwhile, the revenue in the second quarter of 2021 declined due to a decrease in the number of units in completed projects ready for transfer, such as The River and The Lofts Asoke, as sales were gradually completed. The COVID-19 pandemic situation worsened, leading to lockdown measures during the second quarter, causing customers to delay their purchasing decisions.

Overall, the real estate market in the second half of the year is expected to continue facing challenges from the ongoing COVID-19 pandemic, as reflected in the slowdown of consumer purchasing power. Additionally, construction camp closures and restrictions on the movement of construction workers have delayed the launch of several real estate projects from the planned schedule.

However, the situation may improve as more people receive vaccinations, which could boost confidence and encourage purchasing decisions in real estate, including attracting foreign buyers. The luxury condominium market in prime urban locations, which remains limited in supply, continues to see demand from those seeking residences or investment properties, indicating a potential recovery for luxury condominiums targeting high-income buyers.

For the second half of the year, the company plans to continue construction on two ultra-luxury condominium projects: The Estelle Phrom Phong, which is 45% complete, and TAIT Sathorn 12, which is 21% complete. Additionally, the company is constructing the office building One City Centre (OCC), a joint venture with Mitsubishi Estate Asia, which is over 47% complete.

Moreover, the company plans to launch 3 new ultra-luxury projects worth a total of 20 billion baht, including projects in Sukhumvit 38, central Sukhumvit, and Ocean Front Beach in Phuket. The company is closely monitoring market conditions and government measures to adjust its operational plans accordingly.


TAIT Sathorn 12 Project


The Estelle Phrom Phong


The Lofts Asoke


The River