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Sansiri, AP post big gains on realised condo sales
Bangkok Post – 13 November 2008
The listed developers Sansiri Plc and Asian Property Development Plc have both reported a surge in net profit in the third quarter due to the delivery of more condominium units to buyers while Golden Land Property Development posted a loss which it blamed on market volatility and uncertainties.
Sansiri reported 511.36 million baht in consolidated net profit in the third quarter, up 394% year-on-year from 129.78 million. Profit was driven by growth of revenue from project sales in the quarter to 4.021 billion baht, up 1.12 billion or 38.7% from a year earlier.
The significant increase in revenue was the result of the delivery of condominium projects. At the same time, expenses were lower, at 14% of total revenue in the third quarter, compared to 22% recorded last year.
For the nine-month period, Sansiri had 9.57 billion baht in consolidated revenue from project sales, up 17.89% from 8.12 billion in the previous year. Its nine-month profit rose 101% to 436.34 million baht.
Sansiri shares (SIRI) closed unchanged yesterday on the Stock Exchange of Thailand at 1.75 baht, in trade worth 5.75 million baht.
Asian Property Development Plc (AP) also reported an 85.3% increase in consolidated net profit in the third quarter to 452.5 million baht from 244.2 million a year earlier while its revenue from project sales and services rose to 2.73 billion baht, up 28.7% from 2.123 billion baht.
The company said its gross margin improved to 34.3% in the third quarter, due mainly to higher revenue recognition from condominiums, which had a high gross margin of 50% in the quarter.
AP has also benefited from reductions in the specific business tax and transfer fee effective in the second quarter.
For the nine-month period, Asian Property reported 6.62 billion baht of consolidated revenue from project sales and services, up 34.19% from 4.93 billion in 2007. Its net profit for the period was 1.1 billion baht, up 120% from 500 million in 2007.
AP shares closed yesterday on the SET at 2.48 baht, down four satang, in total trade of 65.47 million baht.
Meanwhile, Golden Land Property Development Plc reported a consolidated loss of 22.72 million baht in the third quarter, compared with a profit of 59.54 million in the same period last year.
The company said the loss reflected a decline in business because of political uncertainty, fluctuations of money and capital markets, high competition and high oil and construction-material costs.
GOLD shares were last traded in light trade last Thursday when they closed at three baht.
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