7 April 2010

Sansiri reveals that 2009 profit grew almost 100%, shattering its 1.6 billion baht target; the firm also announces dividends of 0.52 baht per share,
representing more than a 10% return, the highest in the industry

Sansiri Group announced performance results for 2009, including sales of 16.5 billion baht, total revenue of 17.497 billion baht, and profit of 1.607 billion baht, an increase of 694 million baht. Year-on-year profits grew by almost 100%, well exceeding targets. In the fourth quarter 2009, sales reached 2.8 billion baht and revenues were over 6.38 billion baht, a record for the company. Profit was over 600 million baht, representing an increase of 123 million baht or 26% compared to the same time period in 2008 where net profit was 477 million baht. The firm also announced that it plans to pay dividends of 0.52 baht per share, a dividend yield of over 10%, the highest in the industry.

Mr. Settha Thavisin, Managing Director of Sansiri Public Company Limited, announced that the Sansiri Group's business from early 2009 onward clearly demonstrated growth and continuously robust sales for a complete range of residential properties, including condominiums, single homes, and townhouses both domestically and abroad. 2009 results included sales of 16.5 billion baht, 17.497 billion baht of realized revenue, and net profit of 1.607 billion. The latter is a 100% or 694 million baht increase over that of the prior year.

These results constitute the highest earnings in the real estate sector. Income is mainly generated from sales of residential properties: high-rises constitute 53% of the company’s portfolio while low-rises make up 47%. In the fourth quarter 2009, sales reached 2.8 billion baht and revenues were over 6.38 billion baht, a record for the company. Profit was over 600 million baht, representing an increase of 123 million baht or 26% compared to the same time period in 2008 where net profit was 477 million baht

“Gross profit increased as a result of more realized revenue from sales of condominium projects SIRI at Sukhumvit, Hive Sathorn, and Hive Taksin as well as resort condos such as Baan Nub Kluen and Baan Sansuk in Hua Hin. The firm continues to complete transfers to customers and record revenue for many single homes and townhouses. The company is ready to announce that it will pay dividends of 0.52 baht per share, a dividend yield of over 10%. During the previous year, a 0.33 baht per share dividend was paid. This represents the highest returns in the industry,” remarked Mr. Settha.

Growth of the overall business continues to increase, thanks to increasing brand acceptance of Sansiri’s residential properties by customers and to the company's financial discipline and control, including effective construction management. Delivering quality housing to customers affects the company's sales performance and grants greater potential to profitability.

Mr. Settha added that although the government decided not to extend tax incentives for the real estate industry, such measures greatly helped. Customers were encouraged to make buying decisions and industry players enjoyed increased sales. The measure also helped related industries such as furniture, steel, etc. The government’s recent decision reflects that the economy is recovering. Second quarter 2010 results will have to be monitored; results will be a clearer measure of the economy’s health.

For 2010, the company expects revenue growth of approximately 10% from 2009, with an estimated gross profit margin of 31 to 32%, higher that that of last year. Sansiri's business plan is to continue the 4 strategic points that support robust business and increase registered capital. The first point is to continue building strong brands for the condominium, single home, and townhouse projects in the pipeline. Second is the gradual realization over 1 to 3 years of revenue from Sansiri’s pre-sale backlog totaling almost 15 billion baht. Third are plans to expand the residential business to fulfill customers’ every need. The fourth point is to have a strong capital base to support continued growth without affecting long-term investment plans. This also creates greater confidence for investors and financial institutions.

Public Relations
Sansiri Public Company Limited