22 October 2009

Sansiri posts third quarter 2009 profits of over 502 million baht,
representing continuous growth of more than 30%
and reflecting surging sales in a recovering market

Sansiri Group announced its third quarter 2009 performance results, reflecting a full market recovery. Total revenue amounted to more than 4.524 billion baht and profits exceeded 502 million baht, an increase of 115 million baht or 30% from that of the second quarter, a record for the industry. Presently, the Group plans to expand its business internationally by launching condominium sales in central London by the end of this year. The company is confident that fourth quarter sales and profits will exceed that of the third quarter, receiving the benefits of a fully recovered market and reflecting ongoing efforts to better manage costs. Annual profits are anticipated to be over 60% of last year’s figure. Sansiri shareholders have also voted to increase capital by 12 billion baht to advance the company’s comprehensive product offerings and support its leadership positioning in the real estate market.

Mr. Settha Thaweesin, managing director of Sansiri Public Company Limited, announced that the Group's business from the beginning of 2009 has experienced clear and continuous growth through strong sales of residential property across all market segments and business expansion abroad. Third quarter results were very satisfactory, with more than 4.5 billion baht in sales, revenue recognition of over 4.524 billion baht, and a net profit margin of 11% or net profits of 502 million baht. This represents a 30% growth or a 115 million baht increase compared to figures from the previous quarter, the most robust results posted by any firm primarily involved in the residential real estate market offering a 50:50 mix of condominiums and single homes.

Sansiri Group’s performance during the first quarter of 2009 included total sales of over 6.1 billion baht, total revenue of 2.95 billion baht, and net profit of 119 million baht. Second quarter performance included sales of more than 3.1 billion baht, total revenue of over 3.65 billion baht, and net profit of 387 million baht. As for the third quarter, the Group posted total sales of 4.5 billion baht, total revenue of more than 4.524 billion baht, and net profit of 502 million baht. Overall, the business has grown continuously, reflecting recovery in the real estate market, the company’s financial management efforts, and increasing brand acceptance in the residential property sector. As such, the company expects earnings in the last quarter of the year to be better than that of the third quarter. The firm is confident that profits will exceed that of last year by more than 60%.

As for Sansiri Group’s business plan in the last quarter of the year, the company will focus on expansion in international markets as well as on providing more comprehensive offerings in order to foster growth across all market segments. Plans are underway to launch a development on Elvaston Road in the High Kensington area of Central London by the end of the year. This is an adjustment to the previous plan to commence sales in April 2011 due to steady and growing customer interest, demonstrating the project’s high potential for success.

During an extraordinary meeting of the company’s shareholders (No. 1/ 2552) on November 6, 2009, a capital increase of 1.473 billion shares at par 4.28 baht per share was approved. It is to be conducted through private placement to potential investors both in the country and abroad. This decision is in line with the improving investment climate and greater stability of the stock market. Also, the issue of warrants in the amount of 736.81 million units to shareholders in the ratio of 2:1 was authorized. However, those who acquire additional shares in the private placement will not be allocated such warrants.

Mr. Settha added that the business plan for 2010 and beyond will be clearer once the capital increase is completed. In the meantime, Sansiri’s strategy includes 4 factors that support robust business growth. The first is to continue strengthening its brands for condominium, single home, and town house projects. The second factor is the gradual revenue realization of Sansiri’s pre-sale backlog of nearly 15.5 billion baht over the next 1-3 years. The third factor encompasses plans to expand the residential property business through the firm’s subsidiaries in order to meet all customer needs. The fourth factor is the building of a strong capital base to support continued growth without disrupting long-term investment plans, creating more confidence among investors and financial institutions while stepping up the Group’s efforts to become the leading player in the real estate industry.

 

 

Public Relations
Sansiri Public Company Limited