Ananda Development PCL announces third quarter financial results that exceeded expectations
Ananda Development PCL announces third quarter financial results that exceeded expectations and raised its full year sales guidance and its expectation of being a top 5 residential developer by sales in its first year after IPO.
Ananda Development Public Company Limited announced its third quarter financial results to analysts and raised its full year sales guidance and revealed its expectation of being a top 5 developer by sales in its first year as a public company.
The company revealed to analysts sales figures for the year to date in excess of 20 billion Baht, including launches of new projects in events that ran from the end of the third quarter and into the fourth. The company made 5,722 million in new property pre-sales during the third quarter alone, a 98.9% increase over the 2,877 in pre-sales made in the 2nd quarter and 56.7% more than the 3,652 million Baht it had guided analysts to expect. However, total sales for the year, including launches that spanned the end of September and into October were greater than 20 billion Baht and that guidance for the full year was raised from 14.9 billion at the beginning of the year to a new total of 20.7 billion for the full year. Based on analyst’s expectations for other developers in the industry this would make Ananda Development’s sales for the year among the top 5 for Thai residential developers.
The new sales guidance and analysts expectations of sales from other developers would also mean that Ananda would end the year as the company with the second highest sales total for condominiums in Greater Bangkok, with only LPN having sold more.
The company disclosed that its backlog as of mid November stood at over 24.5 bn Baht. A tripling of the backlog of 8bn at the beginning of the year.
The company released financial results showing revenues of 1,127 million Baht for the quarter, a 19.1% increase in revenue in the 2nd quarter and exceeding the 1,020 million the company had previously guided by 10.4% and announced a Q3 2013 net loss of 96 million Baht, the same as in the second quarter and an increase from the 34 million Baht loss in the same period in 2012.
Ms. Muntana Au-Kitkajorn, Chief Financial Officer of Ananda, commented on the results, “The results are once again ahead of what was promised to investors for both revenue and pre-sales. We continue to succeed in executing ahead of the business plan while controlling costs as we grow rapidly. Gross margin for the first nine months was 38.2%, an improvement on the 37.1% gross margin for the same period last year. Our costs remain in the range expected and we expect now to see a slight increase in the company gross margin for the full year from that projected at the beginning of the year.”
She added, “Based on our own expectations and analyst figures for other residential developers we expect our SG&A costs as a percentage of pre-sales to be among the lowest in the industry. Showing we are able to achieve our sales success without spending excessively on marketing and promotions.”
Revenue being ahead of guidance was helped by the company successfully completing construction on its Ideo Mobi Sukhumvit building ahead of schedule with transfers beginning in the third quarter, ahead of the 4th quarter completion expected.
During the quarter the company launched three new condominium projects. The launches began on the last day of the quarter with the majority of the sales to be accounted for in the 4th quarter. The company launched its much anticipated Ideo Q Chula-Samyan project close to the Samyan MRT mass transit station and Chulalongkorn university. This project is a joint venture between Ananda Development and Japan’s largest real estate developer, Mitsui Fudosan. Despite its large size of over 6,500 million Baht in value the project was sold out at launch, with the majority of the sales to be accounted for in the 4th quarter and the building expected to transfer in 2016.
The company also launched Ideo Q Ratchathewi, a 2,100 million Baht project close to the BTS Rajathewi station. This project also sold out at launch with the majority of the sales to be accounted for in the fourth quarter and transfers to take place in 2015.
The third condominium launched was the Ideo Mobi Charun, a 3,700 million Baht value project. This sold over 50% at launch, with the majority of these sales to be accounted for in the fourth quarter. Transfers are expected to begin in 2015
The company also celebrated its early completion of four Ideo Mobi condominiums, (Ideo Mobi Sukhumvit, Ideo Mobi Rama 9, Ideo Mobi, Sathorn and Ideo Mobi Phyathai) by launching a “Ready to Move In” campaign, with special offers for the remaining units in these now completed buildings.
Mr. Ted Thirapatana, Chief Business Development Officer for Ananda commented on the company’s project launch schedule in the third quarter, “The launches of our new projects exceeded all our expectations with two of the projects being sold out at public launch and the other being 50% sold. The event we held at Siam Paragon in September for the public launches of these buildings attracted over 10,000 visitors and the results of that event will result in a very strong fourth quarter for pre-sales. The only limiting factor for our sales was that the buildings sold out so fast. This demonstrates again that consumers want the opportunity to purchase modern, stylish and affordable condominiums close to mass transit stations in a variety of areas of Bangkok.”
Mr. Thirapatana also responded to an issue concerning many watching the Thai real estate sector today, that of rising mortgage rejection rates by banks, “We are able to report that customers who were unable to transfer condominiums due to being unable to get a mortgage totaled less than one percent of the transfers in the first three quarters of the year.”
The company also revealed its business plan for 2014 at the analyst meeting. The company is expecting to launch 30-32 billion Baht worth of new projects during 2014, achieve around 23-24.5 bn in presales and generate 10.5 to 12 bn Baht in revenue.
Mr. Chanond Ruangkritya, CEO of Ananda commented on the company’s third quarter performance, “The successful IPO in December last year gave the company sufficient capital for the first time to really execute on its strategy and business model. It looks like we will be in the top 5 for sales in our first year and the number two seller of condominiums in Greater Bangkok. This will be a stunning achievement for a newly listed developer and I’d like to thank all our staff, suppliers, customers, banks, shareholders and partners for working so well to achieve this.”
He continued, “The company has demonstrated how effectively we have deployed the capital we received at the IPO. This first year has been the equivalent of starting a newly fueled engine and it getting up to speed. As these new projects are completed and the revenue recognized and capital returned for reinvestment again we expect our growth to continue and over the next few years the value of the company and its business model will be recognized by the market.”
Ananda Development Public Company Limited announced its third quarter financial results to analysts and raised its full year sales guidance and revealed its expectation of being a top 5 developer by sales in its first year as a public company.
The company revealed to analysts sales figures for the year to date in excess of 20 billion Baht, including launches of new projects in events that ran from the end of the third quarter and into the fourth. The company made 5,722 million in new property pre-sales during the third quarter alone, a 98.9% increase over the 2,877 in pre-sales made in the 2nd quarter and 56.7% more than the 3,652 million Baht it had guided analysts to expect. However, total sales for the year, including launches that spanned the end of September and into October were greater than 20 billion Baht and that guidance for the full year was raised from 14.9 billion at the beginning of the year to a new total of 20.7 billion for the full year. Based on analyst’s expectations for other developers in the industry this would make Ananda Development’s sales for the year among the top 5 for Thai residential developers.
The new sales guidance and analysts expectations of sales from other developers would also mean that Ananda would end the year as the company with the second highest sales total for condominiums in Greater Bangkok, with only LPN having sold more.
The company disclosed that its backlog as of mid November stood at over 24.5 bn Baht. A tripling of the backlog of 8bn at the beginning of the year.
The company released financial results showing revenues of 1,127 million Baht for the quarter, a 19.1% increase in revenue in the 2nd quarter and exceeding the 1,020 million the company had previously guided by 10.4% and announced a Q3 2013 net loss of 96 million Baht, the same as in the second quarter and an increase from the 34 million Baht loss in the same period in 2012.
Ms. Muntana Au-Kitkajorn, Chief Financial Officer of Ananda, commented on the results, “The results are once again ahead of what was promised to investors for both revenue and pre-sales. We continue to succeed in executing ahead of the business plan while controlling costs as we grow rapidly. Gross margin for the first nine months was 38.2%, an improvement on the 37.1% gross margin for the same period last year. Our costs remain in the range expected and we expect now to see a slight increase in the company gross margin for the full year from that projected at the beginning of the year.”
She added, “Based on our own expectations and analyst figures for other residential developers we expect our SG&A costs as a percentage of pre-sales to be among the lowest in the industry. Showing we are able to achieve our sales success without spending excessively on marketing and promotions.”
Revenue being ahead of guidance was helped by the company successfully completing construction on its Ideo Mobi Sukhumvit building ahead of schedule with transfers beginning in the third quarter, ahead of the 4th quarter completion expected.
During the quarter the company launched three new condominium projects. The launches began on the last day of the quarter with the majority of the sales to be accounted for in the 4th quarter. The company launched its much anticipated Ideo Q Chula-Samyan project close to the Samyan MRT mass transit station and Chulalongkorn university. This project is a joint venture between Ananda Development and Japan’s largest real estate developer, Mitsui Fudosan. Despite its large size of over 6,500 million Baht in value the project was sold out at launch, with the majority of the sales to be accounted for in the 4th quarter and the building expected to transfer in 2016.
The company also launched Ideo Q Ratchathewi, a 2,100 million Baht project close to the BTS Rajathewi station. This project also sold out at launch with the majority of the sales to be accounted for in the fourth quarter and transfers to take place in 2015.
The third condominium launched was the Ideo Mobi Charun, a 3,700 million Baht value project. This sold over 50% at launch, with the majority of these sales to be accounted for in the fourth quarter. Transfers are expected to begin in 2015
The company also celebrated its early completion of four Ideo Mobi condominiums, (Ideo Mobi Sukhumvit, Ideo Mobi Rama 9, Ideo Mobi, Sathorn and Ideo Mobi Phyathai) by launching a “Ready to Move In” campaign, with special offers for the remaining units in these now completed buildings.
Mr. Ted Thirapatana, Chief Business Development Officer for Ananda commented on the company’s project launch schedule in the third quarter, “The launches of our new projects exceeded all our expectations with two of the projects being sold out at public launch and the other being 50% sold. The event we held at Siam Paragon in September for the public launches of these buildings attracted over 10,000 visitors and the results of that event will result in a very strong fourth quarter for pre-sales. The only limiting factor for our sales was that the buildings sold out so fast. This demonstrates again that consumers want the opportunity to purchase modern, stylish and affordable condominiums close to mass transit stations in a variety of areas of Bangkok.”
Mr. Thirapatana also responded to an issue concerning many watching the Thai real estate sector today, that of rising mortgage rejection rates by banks, “We are able to report that customers who were unable to transfer condominiums due to being unable to get a mortgage totaled less than one percent of the transfers in the first three quarters of the year.”
The company also revealed its business plan for 2014 at the analyst meeting. The company is expecting to launch 30-32 billion Baht worth of new projects during 2014, achieve around 23-24.5 bn in presales and generate 10.5 to 12 bn Baht in revenue.
Mr. Chanond Ruangkritya, CEO of Ananda commented on the company’s third quarter performance, “The successful IPO in December last year gave the company sufficient capital for the first time to really execute on its strategy and business model. It looks like we will be in the top 5 for sales in our first year and the number two seller of condominiums in Greater Bangkok. This will be a stunning achievement for a newly listed developer and I’d like to thank all our staff, suppliers, customers, banks, shareholders and partners for working so well to achieve this.”
He continued, “The company has demonstrated how effectively we have deployed the capital we received at the IPO. This first year has been the equivalent of starting a newly fueled engine and it getting up to speed. As these new projects are completed and the revenue recognized and capital returned for reinvestment again we expect our growth to continue and over the next few years the value of the company and its business model will be recognized by the market.”
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