Thai Property developer Ananda Development losses pile on in 2021 due to pandemic impact
Property developer Ananda Development Plc (ANAN) reported a 2021 full-year net loss of 457 million baht. The losses were a 120 per cent increase from 2020 which the company blamed on weak property demand caused by the Covid-19 pandemic.
The company’s fourth-quarter net loss of 220 million baht was also worse than what most analysts anticipated.
Ananda’s chief executive Chanond Ruangkritya said the losses were mainly from “a decline in income from the joint venture investments which was affected by low condominium transfers under the Covid-19 outbreak.”
During 2021, Ananda issued unsecured debentures worth around 3 billion baht and increased capital for another 1.3 billion baht to strengthen its financial position, according to the statement.
The company’s debt-to-equity ratio stood at 0.96 as of the end of 2021. Chanond added that the debt level “was at a controllable level.”
Analyst Ratasak Piriyanony at Krungsri Securities noted that Ananda has been hardest hit by changing consumer behavior triggered by the pandemic.
One reason is that homebuyers prefer low-rise projects or that are less packed, and that demand from foreigners has not fully recovered.
“4Q21 results were disappointing,” Ratasak said. “The outlook is uncertain in 2022 given the extended pandemic has undermined Ananda’s core business.”
The current rating on Ananda shares from Krungsri is ‘Sell’ with a target price at 1.40 baht. As of the morning session, the stock traded at 1.47 baht, up 0.68 per cent from its prior closing.