By SOMLUCK SRIMALEE
“This year saw our big change, expanding |from the middle-income market to the economy |segment with prices lower than Bt2 million, |while also expanding from Greater Bangkok into |the provinces, driving our 2012 presales to Bt42 |billion. But this is just our starting point for our business expansion in 2013, when we will design |our business to be a leader in all markets nationwide,” he said.
To support its business strategy for 2013, |the company is enhancing its construction |system. Its prefabrication plant in Pathum Thani province began operation early this year to sup-|port demand for homes priced lower than Bt5 |million. This system speeds up the construction process so Sansiri can deliver homes to its customers on time.
The company also has strategic partners, contractors that support its expansion upcountry. This reduces its business risk from labour shortage while enabling the firm to maintain its construction standards.
Meanwhile, the company keeps its financial condition healthy by controlling its debt-to-equity ratio at no more than 2.5:1. Currently, the D/E ratio is only 1.6:1, counting only debt on which interest is payable.
SECONDARY PROVINCES TARGETED
Srettha said the company this year successfully expanded into the market for condominiums costing less than Bt2 million. In the new year, Sansiri plans to cover the whole housing market, including homes priced over Bt20 million.
“We did develop homes costing more than Bt20 million seven years ago, but we will return to this market again for both low-rise and high-rise residences,” he said.
Sansiri has continued to expand upcountry, both in major provinces such as Phuket, Chiang Mai, Khon Kaen and Udon Thani and secondary |ones such as Phitsanulok and Ubon Ratchathani. This has been facilitated by the government’s policy to develop transportation links among the provinces. Srettha said other leading property firms would also take advantage of this policy and move into the provinces.
He said he believed the property market next |year would continue to grow by at least 10 per cent, similar to this year’s growth. But Sansiri enjoyed higher growth this year than in 2011, especially in presales of Bt42 billion, Bt13.4 billion of which came from residential projects outside metropolitan Bangkok.
Meanwhile, it expects to achieve its 2012 revenue target of Bt27 billion, while net profit will be at least 10 per cent of revenue, although the company recorded revenue of only Bt16.01 billion and net profit of Bt1.2 billion in the first nine months, he said.
“We believe that we can transfer the rest of our residential projects worth Bt11 billion to our customers in the last quarter of this year.”