PS keeps ambitious 30% growth target

       The listed developer Preuksa Real Estate Plc aims for continuous growth of around 30% next year as it plans to launch 48 projects worth 20-30 billion baht, said chief operating officer Prasert Taedullayasatit.
       Chief executive officer Thongma Vijitpongpun said the company expected to spend approximately 7.5 billion baht to acquire 50 plots of land for the development next year. One of the plots in the Rama II area is for a prefabrication manufacturing factory to support its growth plan.
       A few plots will be in provinces such as Chon Buri, Phuket and Khon Kaen,where the company plans to develop townhouses and single houses priced between two million and 2.5 million baht each.
       The prefabrication facility will cost around 700-800 million baht and cover 100,000 square metres. Its existing facility in Pathum Thani has reached its full capacity using 100,000 sq m, so the company needs another factory.
       Expanding abroad is another growth strategy for Preuksa. The company has already engaged in projects with a combined value of around 3 billion baht in Bangalore, India, and Haiphong, Vietnam. It is now looking at the Maldives,where the island state's housing authority needs to develop around 1,000 condominium units for its people.
       Mr Thongma said a Maldives deal,worth around US$10 million, would likely take place next year. Preuksa projects 4-6% of its total business in 2010 will come from projects in other countries.
       Mr Prasert said Preuksa outsourced the construction of a condominium project, Ivy Thong Lor, for the first time as the company wanted to focus its fleets on the construction of townhouses and single houses.
       PS launched 17 projects worth 8.96 billion baht in the first three quarters and plan another 17 projects worth about 10 billion baht in the final quarter of 2009.
       Among new projects, there will be a new townhouse brand, Urbano, worth 600 million baht in the Sukhaphiban 3 area. Its Seed Theme is a new high-end condominium brand to be launched this year.
       The company posted 651 million baht of net profit in the third quarter, up 15%year-on-year from 565 million baht on total revenue of 3.844 billion baht, up 19% year-on-year from 3.233 billion baht.
       Its nine-month net profit was 1.978 billion baht, up 32% year-on-year from 1.497 billion baht, on total revenue of 11.287 billion baht, up 29% from 8.75 billion baht.
       The company has backlog sales of 15.21 billion baht, with 8.33 billion ready to transfer this year, meaning it would exceed its full-year revenue target of 17 billion baht. Sales for the first nine months were 15.046 billion baht, up 13.1% from the same period last year.
       Mr Thongma said PS maintains a favourable outlook next year though expiring tax incentives mean prices will rise by 6-7%.
       PS shares closed yesterday on the Stock Exchange of Thailand at 15.40 baht,down 10 satang, in trade worth 58.52 million baht.