SA Reports Q1/2024 Results with Revenue Surging 140.58%
Driven by a Wave of Transfers at Its Rama 9 Project
Highlighting 2024 Flagships in Hotels and Green Real Estate to Drive Strong Growth
Siamese Asset Public Company Limited (SA) delivers as promised! It reported Q1/2024 results with revenue of 1,174 million baht, up 140.58%, and net profit of 115.91 million baht, up 56.46%, driven by transfers at its major Landmark @ MRTA Station project and the success of diversifying revenue into the service business. Executive “Khajornsit Singsansern” outlined this year's strategy, focusing on the hotel and service business to capture the tourism recovery, while developing residences to serve the elderly and developing residential technology innovations that increase convenience and are environmentally friendly, in line with the green real estate approach, to support the Company's sustainable growth.
Mr. Khajornsit Singsansern, Chairman of the Executive Committee of Siamese Asset Public Company Limited (SA), a fully integrated real estate developer under the concept “Asset of Life: Creating Value in Every Way of Living”, revealed that the Group's operating results for Q1/2024 showed total revenue of 1,174 million baht, an increase of 686.24 million baht or 140.58% compared with total revenue of 488.16 million baht in the same period of the previous year. This comprised revenue from the sale of real estate and goods of 1,045.18 million baht and revenue from services of 89.11 million baht.
In Q1/2024, net profit was 115.91 million baht, an increase of 686.24 million baht or 56.46% compared with net profit of 74.08 million baht in the same period of the previous year. Profit attributable to equity holders of the parent company was 109.74 million baht, an increase of 56.03 million baht or 104.33% compared with profit of 53.71 million baht in the same period of the previous year.
The Company recognised most of its revenue from transfers at the Landmark @ MRTA Station (Rama 9) project, with the remainder coming from real estate in 4 main projects, namely Monsane Exclusive Villa Ratchapruek - Pinklao, Siamese Kin Ramintra (Phase 2), Monsane Ratchapruek - Chaengwattana and Siamese Exclusive Queens, totalling 995.94 million baht, plus revenue of 49.24 million baht from other projects, for a total of 1,045.18 million baht, representing 89.00% of total revenue. This was an increase of 838.36 million baht, or 405.36%, from the same period of the previous year. By project type, in Q1/2024 the Company's revenue from high-rise projects accounted for 74.47% and low-rise projects for 23.73% of revenue from the sale of real estate and goods.
At the same time, the Company recognised increased revenue from its service business, mainly from the operation of 5 hotels, which achieved a higher Occupancy Rate, a higher Average Daily Room Rate and a larger number of rooms, as well as revenue from juristic person (property) management. As a result, total revenue from services was 89.11 million baht, or 7.59% of total revenue, an increase of 9.45 million baht, or 11.86%, from the same period of the previous year. “Our first-quarter results were in line with the Company's expectations, owing to the continuing transfers at Landmark @ MRTA Station, the ultimate Mixed Use Branded Residences project, a major project worth more than 10,000 million baht located in the prime New CBD Rama 9 location, just 350 metres from the Orange Line and the MRTA station, which has been well received by buyers purchasing both for residence and for investment. In addition, the Company has diversified its revenue base into the service business, such as hotels, for example Tribe Living Bangkok Sukhumvit 39, which caters to leisure and business travellers for both short and long stays. These factors supported the Company's outstanding growth in performance.
As for this year's business plan, the Company's strategy focuses on the hotel and service business to capture the recovering tourism industry, with a target for Recuring Business revenue to account for 15% of the Company's revenue within 5 years. The Company is also developing residences to serve the elderly (Aged Aging Society), with facilities and additional services within the projects, such as medical services and a nursing home.
At the same time, SA remains committed to developing environmentally friendly innovations that increase convenience and good health for residents, such as installing Solar Rooftop panels to save on electricity costs, promoting the use of electric vehicles by installing EV charging stations in the Company's projects, and the Air of Life technology, a fresh-air supply unit that filters PM2.5 dust and saves energy with a heat exchange system, reducing outside heat before it enters the home and adding freshness with Anion from the unit. This is building homes that are friendly to the environment, in line with the "green business" policy of real estate that helps reduce CO2 emissions, an important concept for future building construction, towards sustainable building development and supporting the Company's sustainable growth.
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