Kunalai Public Company Limited (KUN) has announced its commitment to adjusting its business strategy under the "Kunalai Strong" initiative, focusing on re-engineering the organization to prepare for future growth. The company aims to establish a new flagship urban development in the Bang Khun Thian area, valued at over 3 billion baht, believing that this new location will be a Blue Ocean with high demand. They plan to gradually launch "Kunalai Daisy" and "Kunalai Navara" soon, indicating that the demand for horizontal housing continues to grow. As a result, the company targets a revenue growth rate of 15-20% for 2022, with sales expected to reach 1.8 billion baht, reinforcing their commitment to achieving new highs and signaling that this year will be a clear golden year for profit harvesting for Kunalai.

Ms. Prawirat Tevaakson, CEO of Kunalai Public Company Limited (KUN), a developer of horizontal real estate projects in suburban areas, stated that the overall real estate market, particularly horizontal housing, will face challenges in 2022 but will continue to perform well. Despite pressures from rising household debt and stricter lending policies, the demand for housing remains high, driven by real demand, especially as people adapt to the COVID-19 situation with more remote work, online learning, and increased home activities. This shift in lifestyle, along with the country's improved communication infrastructure, has made homes more important. Consequently, consumers are increasingly seeking horizontal real estate. Additionally, the Bank of Thailand's measures to relax LTV regulations and the government's initiatives to reduce transfer fees for homes priced below 3 million baht are expected to further stimulate the real estate market, reflecting the government's tangible support for home ownership.

In 2022, the company remains committed to achieving new highs, targeting a revenue growth rate of 15-20% from 2021 and aiming for sales of 1.8 billion baht, up from 1.51 billion baht in 2021. They emphasize that this year will clearly be a year of profit harvesting for Kunalai, following continuous investments in previous periods. As of the end of 2021, the company had a backlog valued at 300 million baht, which will gradually contribute to revenue in the first quarter of 2022. Furthermore, they anticipate that the horizontal real estate market in 2022 will see heightened competition due to changing consumer behavior, prompting developers to focus more on horizontal projects. Kunalai aims to retain its existing customer base while adapting its strategies to align with consumer behavior in each location.

For the overall plan in 2022, Kunalai continues to strengthen its brand, gradually guiding target customers from brand awareness to brand love through improved services and communication across various media. This aligns with their business expansion plans to become a leading developer of horizontal real estate around Bangkok and its suburbs. This year, Kunalai focuses on re-engineering the entire organization to upgrade and prepare its capabilities, believing that this driving plan will enable the company to reach revenue levels of 1.5 billion and 2 billion in the near future.

"We continue to emphasize driving our focus on 1. Product Redefined to enhance our products so that homes can smoothly meet current and future living needs, including optimizing space both inside and outside the home, and addressing communication needs such as increased devices, energy use, and costs, like installing solar cells for daytime energy savings. 2. Project Redesigned involves new project conditions that emphasize family privacy, utilizing scientific principles and architecture to design suitable spaces for planned outdoor and indoor activities without concerns about health issues. 3. Organization Re-Engineered focuses on upgrading both soft and hard skills within the organization to excel in Kunalai's strengths, facilitating growth through appropriate learning processes for the organization's goals."

Additionally, Kunalai plans to develop Eco Smart homes by incorporating alternative energy into Kunalai homes, starting with the Kunalai Preem project, which involves installing solar panels in the pilot zone to reduce electricity consumption. They also aim to improve space management within and outside the home, reinforcing their ongoing commitment to the concept of "Kunalai: Creating Spaces, Creating Happiness."

The CEO of Kunalai also mentioned the investment budget for 2022, stating that the company has allocated a budget of 1 billion baht for expansion, with 450 million baht designated for land acquisition. The remaining funds will be invested in developing new projects set to launch this year, including 1. Kunalai Daisy in Bang Bua Thong, a new development to replace an existing project nearing completion, featuring twin houses and single-family homes priced between 3-5 million baht, which are in high demand. The project will focus on "cutting excess, adding what is lacking," aligning with Kunalai's strengths, as consumers increasingly prioritize interior space due to the need to spend more time at home, with a project value of approximately 800 million baht.

Additionally, 2. Kunalai Navara will be another flagship project for Kunalai, adopting the urban development strategy model similar to the first flagship in Bang Bua Thong. This project will be the third for Kunalai, located in the southern part of Bangkok, in the Rama 2-Bang Khun Thian area, with a project value of approximately 3 billion baht. The company views this location as a Blue Ocean with ongoing demand for housing, presenting a business opportunity for Kunalai to develop the project, which is expected to launch sales in the third quarter of 2022.

Furthermore, they acknowledged that the Thai real estate market that meets consumer needs is horizontal housing priced between 2-8 million baht, which continues to grow. This market aligns with Kunalai's plans for project development and investment, preparing for future sales. Recently, the company has a medium-term plan for five years (2023-2027) to prepare for development and has already placed deposits on vacant land, with a total project value of nearly 10 billion baht, including plans for new project launches. Thus, it is evident that the company is capable of recognizing revenue from now until 2027.

"The demand from consumers in the areas where Kunalai is currently developing remains strong, with visitor numbers to the projects comparable to 2020. However, Kunalai's sales in 2021 grew nearly 15% from 2020, indicating that visitors are serious homebuyers, leading to improved sales closure rates for Kunalai. Moreover, all three zones where our housing projects are located (Bang Bua Thong, Chachoengsao, and Bang Khun Thian) are in areas undergoing significant transportation infrastructure development, including new electric trains, ring roads, and expressways, ensuring that we can achieve our growth targets for 2022. Our marketing direction will include both 1. Market penetration by adding other product segments in areas where we are well-known to increase market share, and 2. Market development in new areas, particularly Bang Khun Thian this year, to build a revenue base for future growth."