Noble Development Public Company Limited, or NOBLE, is pleased as Tris Ratings supports confidence by maintaining the corporate credit rating and the unsecured bonds at BBB, with a stable outlook, reflecting business growth opportunities. The company currently has a backlog of 27 billion baht.

Mr. Thongchai Busarapant, Vice Chairman and Co-CEO of Noble Development Public Company Limited, revealed that Tris Ratings has maintained the corporate credit rating at "BBB/Stable" while also assigning a credit rating of "BBB" to a new series of unsecured bonds not exceeding 1.8 billion baht, maturing within three years, to strengthen the company's financial position and future investments.

“Tris Ratings assessed NOBLE's credit rating based on the overall business picture and the company's marketing strategy, evaluating that the market potential for condominiums is strong. All of NOBLE's projects meet customer needs across all dimensions, from affordable to mid-range and high-end prices, resulting in high consumer demand, which aligns with the current backlog of 27 billion baht. This supports the company's future growth potential. Tris Ratings maintains the corporate credit rating at "BBB/Stable" due to pressure from the company's high debt levels and volatile performance, along with expected margin declines amid ongoing intense competition,” he added.

Tris also stated that NOBLE has strong potential and is one of the leading condominium developers, resulting in a well-recognized brand. Each project location has high potential, situated in city centers and designed under clear concepts. These factors contribute to NOBLE's continuous growth, reflected in the sales figures for the first nine months of 2023, which reached 13.6 billion baht, primarily from condominium projects. Tris expects NOBLE to achieve pre-sales of approximately 9,000-12,000 million baht per year in 2024-2025. Furthermore, it is estimated that NOBLE will meet its projected performance targets for 2024-2026, assuming operational revenue is between 9,000-11,000 million baht annually, with property sales accounting for about 60%-70% of total operational revenue. “In 2024, NOBLE is expected to see improved profit margins, continuing into 2025, due to the transfer trends of projects with high margins in both condominiums and certain horizontal projects awaiting revenue recognition as planned. Therefore, EBITDA is expected to be in the range of 1,500-2,000 million baht,” he noted.

With a backlog of 27 billion baht, revenue recognition is expected to occur gradually from Q4 2023 to 2028. Tris anticipates that in 2024, NOBLE will recognize revenue of 9 billion baht, while in 2026-2027, it will recognize revenue of 5.5-6 billion baht per year. In 2025, revenue and profits from sales will come from new projects set to launch and existing projects ready for sale, valued at 9.2 billion baht as of September 2023. This backlog allows the company to continuously and stably recognize revenue or profit shares from joint venture projects, reflecting significant growth potential for NOBLE in the future.

“NOBLE has strong financial capabilities. In the next 12 months, the company has sufficient liquidity. As of September 2023, the company has cash flow and cash equivalents of 2.1 billion baht and undrawn loan facilities of 2.4 billion baht, while operational funds are expected to be around 1 billion baht over the next 12 months.”