In 2017, the Thai economic condition, especially real estate market, remained relatively the same due to unclear domestic political situation, whereby the main obstacle is the rate of household debt, which is increasing continuously coupled with the strict credit granting of financial institutions. This resulted in a high credit rejection.
Nevertheless, there are some positive factors as can be seen in the progress of investment in transport infrastructure projects launched by the government, such as the metropolitan electric train projects, the Eastern Economic Corridor (EEC) project which promotes investment in the three provinces, namely, Chonburi, Rayong and Chachoengsao and the Intercity Highway Projects, while both the inflation and interest rates remain low. Based on such positive factors, the investment in the private sector including some industries has increased to expand their capacity. As a result, economic recovery began to be clearer, which is good for the real estate sector, especially for large-scale companies as they have gained increasing market share.
In the past year, the Company and its subsidiaries had high record of sales of Baht 30,777 million, an increase by 14% from the previous year's target of Baht 27,000 million with a proportion of 50% condominiums and 50% housing projects. All in all, the Company and its subsidiaries launched 20 new projects, comprising of 15 housing projects and 5 condominium projects. The total revenue growth has been in the same direction with the sales. In 2017, the total revenue of Baht 25,789 million, the net profit of Baht 5,812 million with interest bearing debt to equity ratio of approximately 69%, financial cost average rate of 2.84% per year, assets growth increased by 8% and shareholders' equity growth of 20%. At present, the Company still has a high credit rating from TRIS at A / Stable.
As of 2017, the Group has approximately 120 projects under development covering the Bangkok metropolitan area and its vicinities as well as other provinces, such as Chiang Mai, Chonburi, Phuket, Rayong, Khon Kaen, Ubon Ratchathani, Udon Thani, Nakhon Si Thammarat, Surat Thani, Nakhon Ratchasima, Songkhla etc. worth more than Baht 272,771 million, with the sales (Backlog) expected to be recognized at approximately Baht 39,187 million. In addition, the Company has a policy to maintain a strong capital base for its business to grow steadily and sustainably. In September, the Company had issued warrants to purchase ordinary shares of the Company in order to expand the projects both domestically and internationally and repay the loan to reduce the interest burden, which would result in the Company’s increasing profit. In 2018, the Company plans to launch 35 new projects covering all locations across the country to penetrate the market to cover every segment including the investment to develop a large project in the business district on Sathorn Road, which is the first project designed as a mixed use with the emphasis on a variety of product designs. This will be done by taking into account the energy saving and environmentally friendly with the application of Innovative technologies and new creative ideas in designing the projects. This is the "Sustainable Growth 2018" strategy which focuses on residential development in accordance with the lifestyle of residents in the digital age, that is, there will be Home Automation, Home Security and facilitates for the comfort and convenience of the elderly, etc., which is consistent with the mission of the Company, that is, "creation and innovation development for good operational results and sustainable growth."
The Company adheres to the management philosophy by being committed to creating quality housing, developing products all the time, develop society to be safe with hospitality, developing good services with professionalism so as to maximize customer satisfaction and drive continuous growth.
The Company has maintained and developed standards, and created new innovation as well as developing the organization to be ready to grow sustainably. It still places emphasis on developing real estate business by adhering to governance principles. Accordingly, the Company has received many prestigious awards from leading organizations throughout 2017, such as Thailand Sustainability Investment (THSI) and Outstanding Investor Relations Awards for Listed Companies from the Stock Exchange of Thailand, "Certificate of ESG100 Company Award" of 2017 from Thaipat Institute, Top 10 Most Excellent Companies of 2017 Award from the financial and banking magazine and the Thailand Top Company Awards 2017 in the group of real estate business from the University of the Thai Chamber of Commerce jointly with the Business+ Magazine and "Thailand's Top Brand Trust Index in the Real Estate Industry 2017" from Chulalongkorn University, and many more.
Chairman of the Board of Directors
Supalai Public Company Limited