KUN Public Company Limited reported a total revenue of 737.60 million baht for the first nine months of 2022, marking a 6.33% increase (YoY). Meanwhile, net profit stood at 92.01 million baht, with pre-sale sales reaching a record high of 1.1 billion baht, accounting for 65% of the annual pre-sale target of 1.7 billion baht. The board has recently approved a dividend payment of 0.05 baht per share, with the XD date set for November 17 and the dividend payment scheduled for December 2, 2022. CEO “Paveerat Tevaakson” indicated that the company expects to achieve an all-time high in revenue for the second consecutive year, driven by the ongoing success of the Kunlaya Navara, Kunlaya Park, and Kunlaya Daisy projects.

Ms. Paveerat Tevaakson, CEO of KUN Public Company Limited stated that the overall real estate industry has been recovering recently, supported by government economic stimulus measures and the Bank of Thailand's easing of loan-to-value (LTV) regulations. This has revitalized consumer purchasing power in the real estate sector, positively impacting KUN as a low-rise property developer. The company reported total revenue of 737.60 million baht for the first nine months of 2022, a 6.33% increase compared to the same period last year (YoY), while net profit was 92.01 million baht, down 16.80% (YoY). In the third quarter of 2022, total revenue was 193.93 million baht, a decrease of 22.34% (YoY), and net profit was 16.11 million baht, down 61.73% (YoY).

The slowdown in overall performance for the third quarter and the first nine months of 2022 was attributed to adverse weather conditions, including continuous rain, and a shortage of construction materials, which hindered timely home deliveries. However, revenue recognition from transfers continued to flow in during the quarter, including projects such as Kunlaya Preem, Kunlaya Begins 2, Kunlaya Park, Kunlaya Joy On 314, Kunlaya Courtyard, and the newly launched Kunlaya Daisy project, which has started to generate ongoing transfer revenue, resulting in satisfactory total revenue figures.

“Kunlaya Park and the Kunlaya Daisy project were launched in the first and second quarters of 2022, and the response has been very positive. By the end of the third quarter, total sales amounted to 240 million baht, and we expect to close sales at around 450 million baht by the end of 2022,”

In the first nine months of 2022, pre-sales reached 1.1 billion baht, accounting for 65% of the annual pre-sale target of 1.7 billion baht from seven projects: Kunlaya Courtyard, Kunlaya Preem, Kunlaya Begins 2, Kunlaya Joy On 314, Kunlaya Park, Kunlaya Daisy, and Kunlaya Navara. This pre-sale figure represents a record high for the nine-month period, matching the performance achieved in 2020 during the COVID-19 pandemic. The continuous growth in pre-sales is attributed to the development of projects that meet the needs of target customer groups, including housing designs that emphasize essential living functions and price points that align with customer demand.

Additionally, the upward trend in interest rates in Thailand is expected to impact mortgage applications. Coupled with measures to reduce transfer fees and mortgage registration fees, as well as the easing of LTV regulations, set to end by the end of 2022, this is likely to encourage customers to make home purchases this year.

“The rising interest rate trend will affect home buying. An increase of 0.25% per year will raise monthly mortgage payments by approximately 2% - 5% from previous payments, leading banks to tighten their assessments of repayment capabilities. However, the impact will vary depending on each bank's policies, and we believe purchasing power will gradually recover in line with the macroeconomic recovery, with the Ministry of Finance forecasting GDP growth of 3.4% for 2022 and 3.8% for next year,”

Given the growth factors in the operational results for the first nine months (January-September 2022), the board meeting has approved an interim dividend payment for the nine-month period of 2022 at a rate of 0.05 baht per share, with the XD mark set for November 17, 2022, and the dividend payment scheduled for December 2, 2022.

Regarding the progress of the Kunlaya Navara Bang Khun Thian project, the CEO of KUN added that an unofficial sale was launched in September, receiving a positive response with bookings exceeding 45 million baht from a total project value of approximately 3.5 billion baht. The official launch is expected in the first quarter of 2023.

“The Kunlaya Navara project features two-story single-family homes with land sizes starting at 63 square wah, priced from 5.98 million baht. The project is located on Bang Khun Thian-Chai Talay Road, appealing to customers seeking homes in a natural setting, and is expected to receive a positive response from customers in the Bang Khun Thian area and accommodate international clients in the future,”

However, due to the growth rate of the industry and KUN's performance, the company is confident that its performance for 2022 will show a positive trend, aiming for a 10-15% increase compared to the previous year, marking the second consecutive year of all-time highs for the company. The fourth quarter of each year is typically a high season for both sales and transfers, so the sales target for this year is expected to reach 1.7 billion baht as planned.