"LPN" is advancing its business according to the Turnaround plan, launching 6 new projects valued at 6.7 billion baht, along with Re-design and Re-branding under the "168" brand, designed to meet the changing needs of consumers during the second half of 2022. The company aims to achieve sales of 13 billion baht for the year 2022.

Mr. Opas Sripakdi, Chief Executive Officer and Managing Director of L.P.N. Development Public Company Limited (LPN) stated that the business plan for the second half of 2022 will proceed despite the economic slowdown or potential recession due to the ongoing crisis from the prolonged COVID-19 pandemic and the Russia-Ukraine war, which have led to rising oil prices, commodity prices, and inflation globally, including in Thailand, where inflation has exceeded 5%. This situation may prompt the Bank of Thailand (BOT) to raise interest rates by about 0.25-0.5% in the second half of 2022 to mitigate the impact of rising inflation. However, LPN will continue to launch projects as planned, with a total value of 13.7 billion baht and sales of no less than 13 billion baht.

"We have assessed the risk situation and economic changes and have continuously adapted, allowing us to proceed according to our plans," Mr. Opas said.

In 2022, the company plans to launch 10 new projects with a total value of 13.7 billion baht, consisting of 6 condominium projects valued at 10 billion baht and 4 residential house projects valued at 3.7 billion baht.

In the first half of 2022, 4 new projects were launched with a total value of 7 billion baht, including the Place 168 Pinklao project, the Lumpini Place Chaengwattana-Pak Kret Station project, the Lumpini Township Rangsit-Klong 1 Phase 3 project, and the Lumpini Ville Charan-Fai Chai new phase, which received a positive market response, resulting in total presales of 4.8 billion baht in the first half of 2022, a 17% growth compared to the same period in 2021, accounting for 37% of the annual sales target of 13 billion baht. Consequently, the company's revenue recognition in the first half of the year was 4,190.74 million baht, with a net profit of 338.78 million baht, representing a growth of 50% and 39%, respectively, compared to the same period in 2021.

"Sales and revenue recognition in the first half of 2022 showed growth due to the economic recovery compared to the same period in 2021. The purchasing power, which had been sluggish since 2021, began to return to the market before the onset of the Russia-Ukraine war, which led to rising oil prices and a global economic slowdown towards the end of Q2 and into Q3 of 2022. Therefore, in the second half of 2022, we will continue to execute our plans by launching 6 new projects valued at 6.7 billion baht after launching 4 new projects valued at 7 billion baht in the first half of the year, while maintaining our sales target of 13 billion baht, even though the economy may slow down or enter a recession in the second half of the year, as the market still has purchasing power, although buyers may adjust their budgets for housing purchases due to uncertainty about future income. However, housing priced below 3 million baht per unit is still expected to grow for both condominiums and houses, as it meets the needs and budget of middle to high-income buyers," Mr. Opas stated.

 

 

Despite facing several negative factors that pose risks to the real estate business in the second half of 2022, the enforcement of land and building laws and the full collection of land and building taxes in 2022 have increased financial costs for real estate operators who must pay taxes on vacant land and existing inventory. However, this also creates a positive factor that encourages landowners to sell land at reasonable prices to reduce the burden of landholding, providing a good opportunity for real estate operators to purchase land for future project development. LPN has a budget of 4 billion baht for land purchases in 2022 and has already invested 1.4 billion baht in land purchases in the first half of the year, with plans to acquire an additional 2.6 billion baht in the second half of this year.

"168" to Meet the Current Consumer Needs

According to the plan for the second half of 2022, the company plans to launch 2 condominium projects valued at 3 billion baht, including a project in Ratchaphruek Soi 5 near Siam University and a project in On Nut Soi 19, along with 4 residential house projects, including Venu 168 Ratchaphruek, Venu 168 Westgate, and Venu 168 Kukot Station, as well as the Residence 168 Ratchaphruek project, which was recently launched in July, with a total value of 3.7 billion baht.

"All projects launched in the second half of 2022 are under the new brand "168," which is designed to meet the changing needs of consumers under the concept of "Livable Home." This is achieved through designs that respond to today's lifestyle for both condominiums and houses, catering to the needs of the new generation. The designs emphasize functionality and emotional appeal according to individual preferences and personalities, reflecting the insights of customers, as each group has its specific characteristics. This makes the design style clearly reflect the identity and lifestyle of the customers. The structural and interior designs are stylish and smart living, embodying a new lifestyle with unique characteristics that relate to the space. It is not only about modern aesthetics but also about practical usability that meets the real living needs of the new urban generation, harmonizing all dimensions of life, both in functionality and design that reflects the unique identity of the residents, catering to the needs of first jobbers, entrepreneurs, and startups," he added.

"We have adjusted the design of every project and every unit under the brand "168" to have a unique identity by incorporating all customer needs research (Human Centric) into the re-design of all our new projects to have distinctive forms, adjusting functionalities to suit the behaviors of target customer groups, and selecting appropriate technologies for each project's usage, which is one of the key elements of the 5-year (2022-2026) Turnaround strategy of the organization," he said.

"2022 is the year we fully advance our business after slowing down investment plans since 2018 to create products that meet the needs of the new generation and build a foundation for revenue recognition according to the strategic plan to achieve sales of 20 billion baht by 2026 through the launch and development of new projects covering all target groups and locations in Bangkok and its vicinity," Mr. Opas concluded.

For customers interested in visiting the projects, they can register for an appointment to visit the projects and reserve parking at LPN Call Center 02-689-6888 or Facebook : LPN Connect or the LINE OA application at @LPNConnect