PPS announced its Q1/2023 results with total revenue of 102.21 million baht and a net profit of 1.36 million baht, growing by 274%. For Q2/2023, the company expects continuous revenue recognition, with a backlog of 540 million baht and plans to sign contracts worth over 130 million baht, while actively bidding for both public and private sector projects. The company aims to expand its sustainable construction consulting services, enhance its comprehensive offerings, and grow its customer base. They are also looking to finalize the sale of a villa in Yamu, Phuket, valued at over 350 million baht, confident that this year's revenue will grow by 10% as targeted.

Dr. Pongthorn Tharachaichai, CEO of Project Planning Service Public Company Limited (PPS), revealed that the company's Q1 2023 performance showed total revenue of 102.21 million baht, an increase of 4.95 million baht or 5% from the same period last year, which had total revenue of 97.26 million baht. The net profit of 1.36 million baht marks a significant turnaround from a net loss of 0.78 million baht in the previous year, reflecting a 274% increase.

The company's performance improved due to revenue recognition and project deliveries carried over from the previous year. Although the revenue recognized in this period was lower than planned due to a decrease in short-term project control, overall, the company has seen growth in several projects and has managed to control and manage expenses according to plan, despite rising personnel costs and employee benefits from annual compensation adjustments.

For Q2/2023, the business direction remains focused on consulting services for project management and construction control, primarily for commercial buildings such as multi-purpose buildings (Mixed Use), shopping malls, and retail spaces, which include both new construction and renovation projects. Additionally, there are specialized hospital construction projects and work related to historical sites and conservation buildings.

The company will also recognize revenue from ongoing projects, including the Lotus Group, the Viman Surya project, the development of the land at the Roi Chak Sam tax office, the expansion of the Chaopraya Government Complex, Zone C, projects from Airports of Thailand, and the renovation of the Siam Paragon shopping center.

Currently, the company has a backlog of approximately 540 million baht as of March, along with projects awaiting contract signing valued at around 130 million baht, including historical site and conservation building projects, construction management (cm) projects, Soontareeya Residence, retail and shopping mall projects, building renovations, and others, which can be executed and gradually recognized until 2029. The company continues to pursue new bids for both public and private sector projects.

Additionally, the company plans to expand its business in line with the global warming trend to become a sustainable construction consultant, focusing on sourcing energy-efficient materials and reducing long-term costs, creating a Bluebook as a database for construction materials, calculating greenhouse gas emissions, and developing plans to reduce carbon emissions. The company operates through its subsidiary, Sapath Project Co., Ltd., which has experience in energy consulting, believing it can enhance service offerings to existing clients and expand into new customer segments.

Currently, the tourism sector is improving following the reopening of the country early last year, particularly in Phuket's real estate market, with property values ranging from 50 to 200 million baht and land prices soaring by 20-30%.

The luxury villa development project at Cape Yamu, Phuket, has completed the construction of 2 villas and plans to co-invest in villa construction with one of the LVMH brands to enhance the value and image of the villas, with a starting sale price of 350 million baht, aiming to close at least one sale this year.

“The company is committed to continuous growth, despite facing pressure from price competition, and we estimate that we can maintain revenue and profit stability, aiming for a growth target of approximately 10%,” said Dr. Pongthorn.