Sena to miss presale target
Sena Development expects to miss its presales target of Bt2 billion this year after two projects were postponed to next year out of concern of that construction costs would be much higher if they were developed during the flooding.
Kessara Thanyalakpark, a director of the company, said yesterday that the company would be left with only five projects this year, so presales are expected to reach between Bt1.5 billion and Bt1.6 billion.
Four of its projects have been swamped and are now under damage assessment. However, the company expects its revenues to reach the goal of Bt2 billion this year.
Sena will speed up the development of single-family homes in the provinces, as customers are likely to demand second homes. Its Pattaya project is expected to be a priority next year.
“All of the projects in Pattaya are likely to share no more than 10 per cent of total revenue. It is scheduled for shareholders’ approval on December 27,” Kessara said.
The company is aiming to purchase more land for future development after the floods recede.
This could be a good opportunity for Sena as inundated land may be overlooked, he said.
It could take two or three years for development of the to-be-purchased plots.
The company will focus on maintaining liquidity and keeping its debt-to-equity ratio at a low level with a plan to diversify projects to mitigate risk.
Sena’s consolidated third-quarter net profit surged 624 per cent to Bt142.14 million on revenue of Bt1.89 billion, which exceeded its quarterly target of Bt1.5 billion.
Of total revenue, Bt1.88 billion came from sales, of which Bt408 million was from low-rise projects and Bt1.47 billion from high-rise projects.
