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Prinsiri aims to raise margin

Bangkok Post Listed developer Prinsiri Plc expects to improve its gross profit margin next year by using modern construction technology to cut its costs by 5-10%. Tunnel form construction will halve the construction time for townhouses to four months, speeding up revenue realisation, said Chairat Kovitchindachai, vice-president for the managing director's office. As the company's gross profit stands at about 22%, lower than the industry's average of about 30%, the company will try to improve its performance and re-brand by the year-end. Prinsiri's Pulse Phahon Yothin 37 project has been affected by a dispute over a construction permit with the Bangkok Metropolitan Administration. The company will remove the eighth floor of the two buildings to ensure their height stays within legal limits and will reopen sales in the fourth quarter. About 100 units of this project, worth about 200 million baht, are still available for sale. The company has already sold 164 units for about 350 million baht. Prinsiri expects to raise the average price of 42,000 baht a square metre at which it sold units earlier as competitors in nearby location have sold units at much higher prices. The company will also open sales for about 20 units still available at The Complete Ratchaprarop project, on which construction has finished, said Mr Chairat. In the second half of the year, the company plans to launch three low-rise projects worth 1.5 billion baht, the same value as its projects launched in the first half. Managing director Veera Srichanachaichok puts Prinsiri's revenue target for this year at 4.5 billion baht, about half from condominiums and the rest from single houses and townhouses. In the first half of the year, Prinsiri recorded revenue of 2.54 billion baht and profit of 226 million baht, up 227.5% from 69 million baht recorded last year. The company has more than 2 billion baht in backlog sales for both high- and low-rise projects. Prinsiri reported second-quarter profit of 175.86 million baht, up 89.48% year-on-year, on total revenue of 1.94 billion baht, up 78% year-on-year. Prinsiri shares closed yesterday on the SET at 1.68 baht, down two satang, in total trade of 13.55 million baht.

 

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