Condo transfers will ensure Univentures' profit this year

Despite a net loss in the first half, Univentures is confident of showing a net profit this year as 1,500 condominium units worth at least Bt4 billion are to transfer to customers in the current half, company president Worawat Srisa-an said.

The company recorded a net loss of Bt183.06 million on revenue of Bt1.59 billion in the first six months of this year. It had sped up transfers in late 2012, so had few left to deliver in early 2013, he said, resulting in a net loss.

 

Grand Unity 

However, the company’s wholly owned subsidiary Grand Unity Development Co will transfer 1,500 condos worth at least Bt4 billion by the end of this year. This will boost Univentures’ total revenue to its target, though it may be lower than last year because of the net loss of Golden Land Property Development, of which it holds a 50.61-per-cent stake.

Univentures recorded total revenue of Bt5.48 billion and net profit of Bt211.95 million last year.

Earlier, the company targeted total revenue of Bt5.2 billion, comprising Bt3.6 billion from Grand Unity, Bt1.2 billion from its zinc-oxide production, and Bt290 million from rental income from Park Ventures the Ecoplex.

Worawat, who was appointed president on May 1, said the company also planned to launch four new condominium projects worth a total of Bt3 billion between now and the first quarter of next year. They will be on Rama III and Vibhawadee roads, Muang Eak in Rangsit, and Bang Son in western Bangkok’s Bang Sue district.

The company has budgeted Bt1 billion to buy land next year.

“We are studying our business plan for next year and do not have more details at this time,” he said. 

However, the continues to focus on three business units, including the zinc-oxide plant that will generate about 15 per cent of the company’s annual revenue. Its residential-sales unit will generate about 80 per cent of its revenue; this comprises its subsidiaries Grand Unity Development, which focuses on condominiums, and Golden Land, which focuses on low-rise home. The remaining 5 per cent of its revenue will be rental income.

Worawat joined Univentures before the company’s previous president, Oradee Na Ranong, resigned from the company on June 30. 

Meanwhile, the company has also appointed a new management team including three executive vice presidents. These are Sithichai Sereepattanapol, for financial budgeting and accounting, Songpol Ratanasuwan for supporting business, and Subsakul Prasert for marketing. 

Panot Sirivadhanabhakdi, the son of beverage tycoon Charoen Sirivadhanabhakdi, is the company’s new chief executive officer. 

These are the first major management changes since Panot took a major stake in Univentures in 2007.