A5 announced its first half 2023 financial results, achieving a new high with total revenue of 668.28 million baht and a net profit of 169.47 million baht, growing by 106%. The strong purchasing power of high-end customers continues to support sales and revenue growth. The company hinted at ongoing growth in the second half of the year, showcasing a backlog of over 2.37 billion baht. It plans to launch 3 to 4 new projects valued at 8.4 billion baht from now until next year, confident that revenue will exceed double last year's figures, reaching 1.6 billion baht.

Mr. Supachok Panjathasap, CEO of Asset Five Group Public Company Limited (A5), revealed that the first half of 2023 saw a record growth with total revenue of 668.28 million baht, up from 551.38 million baht in the same period last year, representing a 21% increase. The net profit was 169.47 million baht, up from 82.30 million baht last year, marking a 106% increase.

In the second quarter of 2023, the company reported total revenue of 329.76 million baht, growing from 229.34 million baht in the same period last year, a 44% increase, with a net profit of 82.67 million baht, up from 30.25 million baht last year, a 173% increase. This growth is attributed to the rising purchasing power of high-end customers, leading to continuous improvements in sales and revenue recognition, particularly from the "CINQ ROYAL Krungthep Kreetha" project.

Additionally, the company recognized profit shares from the Tonson One Residence, a super-luxury condominium project with 29 floors and only 80 units, located in the prime area of Bangkok in Tonson Alley, near Ploenchit and Chidlom, which currently has over 90% of units booked, with revenue recognition expected to continue throughout the year.

“The excellent performance leading to this new high is due to two main factors: sales revenue and cost management, primarily from land and construction costs. We have acquired land at prices below market rates, and regarding construction costs, we have long-term partners who are quality contractors. Even though we use high-quality materials, we have adjusted prices accordingly to maintain margins and quality, as well as customer satisfaction,” Mr. Supachok stated.

Furthermore, the company expects continued strong growth in the second half of the year due to revenue recognition from transfer sales, with a current transfer sales backlog of 2.37 billion baht as of June 30, with approximately 940 million baht expected to be recognized this year, with the remainder to be recognized through 2024. This includes projects such as "Sank Royal Krungthep Kreetha," "Baan Ratchaya Prachasanti in Udon Thani," and "Baan Ratchaya Aekmantra in Udon Thani," along with profit shares from the Tonson One Residence.

The new project development plan will continue to focus on horizontal projects. In the next 1-2 years, there are plans to launch approximately 3-4 new projects with a total value of around 8.4 billion baht in the remaining part of 2023 and 2024, targeting niche markets. For example, a new single-house project in the heart of Ratchaphruek named "Wana Ratchaphruek - Westville" is expected to launch by the end of this year, building on the success of the "Wana Residence Rama 9-Srinakarin" project, a super-luxury three-story single house that was closed last year, with the land currently under development.

Regarding the progress of the "Sank Royal" project, the second project valued at 1.6 billion baht is also in the preparation phase for development, continuing the success of the first "Sank Royal" project, which received a positive response.

Mr. Supachok further stated that in addition to continuously developing various quality projects, the company plans to enhance its brand image this year to be more modern yet warm, aligning with market demands and the future project development concepts of A5, to showcase the company's evolution, which will directly impact customer confidence in the company's various projects.

The revenue target for this year remains at 1.6 billion baht, more than double last year's total revenue of 664.43 million baht, which will come from revenue recognition from four ongoing projects.