Prinsiri focuses on low-end growth, target achievable
KANANA KATHARANGSIPORN
The listed developer Prinsiri Plc plans to maintain its focus on the lower end of the market with four new housing projects worth a combined 3.1 billion baht and another four new budget condominiums.
The company will shift to townhouses priced at around one million baht, instead of between two and four million baht, and detached houses at two million baht, instead of four million baht. Its condominiums will be priced slightly above one million baht.
Locations include the outskirts of Bangkok such as Rangsit, Phetkasem, Suvarnabhumi Airport, Onnuj, Phahon Yothin 35 and Amata Industrial Estate, as well as Narathiwas Ratchanakarin.
''The company is considering using pre-fabrication technology in construction to reduce costs,'' said Siriluck Kovitchindachai, Prinsiri's managing director.
Some of its new projects, including European Town in the Suvarnabhumi area and detached houses in Rangsit, are joint ventures with Univenture Plc. The two firms established Prinventure Co last year to handle the projects.
European Town will target upper- to middle-end buyers with detached houses priced between 4.29 million and seven million baht and cluster homes priced from 2.79 million to five million baht.
A condominium in the Onnuj area will also be developed under Prinventure. Another condominium at the Amata Industrial Estate will also be constructed in a joint venture with the industrial estate developer Amata Corporation Plc.
Ornruedi Na Ranong, Univenture's president, said the outlook for the overall market was poor. He said Prinventure's revenue would be the same as last year, instead of an earlier projection of 10%growth. He declined to disclose figures.
Meanwhile, Prinsiri maintains it will achieve its revenue target of three billion baht this year on total sales of four billion baht. It aims to achieve 3.3-3.6 billion baht in revenue next year, half of which will come from condominiums.
Ms Siriluck said the company would focus on condominium developments due to the quick revenue realisation. The company would build 60% of the units before launching a project for sale. It has 10 ongoing projects worth a combined 5.36 billion baht.
During the first six months of this year,Prinsiri's revenue stood at 1.08 billion baht. First-half net profit was 151.56 million baht, compared with 71.58 million in the same period last year.
Ms Siriluck said Prinsiri had delayed plans to work with foreign investors because it still had good cash flow of up to two billion baht. It plans to pay 40% of its profit as a dividend at the end of the year.
Shares of Prinsiri (PRIN) closed yesterday on the Stock Exchange of Thailand at 2.74 baht, up six satang, in trade worth 11.79 million baht. UV shares rose seven satang to 1.70 baht, in trade worth 12.85 million baht.
Source : Bangkokpost : Sep 1, 2006