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Source: Thailand Condo News  Aug 11, 2019

Ananda Post Profits Of Bt120 Million For Second Quarter Despite So Called ‘Property Slump’ And Prepares 7 New Launches Totaling Bt22 billion

Ananda Post Profits Of Bt120 Million For Second Quarter Despite So Called ‘Property Slump’ And Prepares 7 New Launches Totaling Bt22 billion
Source: Thailand Condo News  Aug 11, 2019
Leading cash rich urban property developer, Ananda Development Public Company Limited (ANAN), announced that its total revenue for the second quarter grew by 12% from the previous quarter to Bt2.037 billion. Its presales revenue for the second quarter also rose by 27% to Bt 6.1 billion (its cumulative first half of 2019 presales revenue was Bt11 billion). Despite other property firms doing badly, Ananda was able to achieve these results through strict financial discipline along with strategic initiatives coupled with the fact that it had amassed over the years the best land banks for development that are mostly close to mass transit stations.

The company plans to launch another 7 new projects this year, all in the mid-end segment and in excellent locations that are close to the mass transit stations. The total projects will be worth more than Bt 22 billion and is strategically promoted to capitalize on the fact that the current mass transit expansion phase will increase the current number of stations from 80 to 300 in the next few years.

“Ananda Development is satisfied with our second quarter results despite  many domestic and global challenges. Demands for condominium close to mass transit is still very strong. In 2Q/2019, Ananda reported net profit of 120 Million Baht, decreasing 79% year on year, and 1H/2019 net profits of 352 Million Baht, decreasing 52% year on year, mainly due to a decrease in share of profit from investment in joint ventures which is in line with the company's construction schedules. The proportion of joint venture projects which were finished and started to transfer in 2Q/2019 was less than the joint venture projects that were finished and started to transfer in 2Q/2018, such as, Ashton Asoke and Ashton Chula-Silom which were large projects" commented Dr. Chaiyuth Chunnahacha, Chief Financial Officer of Ananda in an interview with Thailand Condo News.

Dr. Chaiyuth Chunnahacha, Chief Financial Officer of Ananda 

The Ideo Q  Phaho-Saphan  Kwai was cancelled as Ananda being a very dynamic and fast reactive company saw that with the market situation, it was best to cancel the project and quickly redesigned the project and launch a new brand in order to cater for a new emerging category of customers that would result in a b win-win situation for both sides ie a more affordable price for customers while Ananda would be able to reach to a broader spectrum of customers and also increase its profit yield.

Ananda also has incorporated  a new construction technology, called BIM, and other high tech technologies to enhance  cost efficiency with all strategic partners. This move would enable Ananda to reduce starting prices at projects like Phaho Saphan Kwai areas to as low as Bt149,000 per sqm. Ananda has  planned a new soft opening for this new branded mid-end segment condo in the last quarter of 2019. The completion time of the project will not change as per the original schedules.
Ananda's Backlog as of June 2019 remained strong at Bt33.2 billion, and will be realized over the next 3 years. Ananda's Backlog which will be materialized for 2019 is more than Bt12.24 billion or 64% of transfer target in the second half of the year. Ananda anticipates transfers of Bt29 billion for 2019.

Ananda plans 7 new residential project launches in the second half of this year. Six of these new projects valued at Bt20.496 billion are condo projects that are close to mass transit stations and the other is Ananda’s new brand of landed property called "URBANIO" located  at Vibhavadi-Chaengwattana, with a project value of Bt1.434 billion.

"Ananda’s cash position remained strong. As of June 2019, liquid cash capitalization was at more than Bt 5.9 billion We are constantly monitoring market situations, both local and global and are adaptable and responsive to adjust our business strategies to maintain the company's profitability and stability for the  long term. We still anticipate a continuous growth in condominiums close to mass transit and with a strong financial discipline through keeping net interest-bearing debt to equity at 1 ratio. We always target for the company's growth without taking any harmful risks which may affect the stability of the company in the long term.” added Dr Chaiyuth.

Ananda's board of directors has approved interim dividend payout of 0.091 Baht with dividend payout ratio of 86%, the highest since the Company's IPO.