Thailand’s Pruksa Holding bids to hit 2022 target of 31 projects worth B16.3bn

Construction News
Chief executive Uten Lohachitpitaks

Thailand’s Pruksa Holding bids to hit 2022 target of 31 projects worth B16.3bn

Despite a delay in new project launches in the first quarter of this year, SET-listed developer Pruksa Holding Plc is maintaining the number of new projects being launched in 2022 at 31 sites worth 16.3 billion baht.

Chief executive Uten Lohachitpitaks said the company postponed the launch of some new projects it planned for the first quarter until the second quarter, largely due to a labour shortage earlier this year.

“Now that problem has been resolved and we expect to accelerate launching new projects in the second and third quarters,” he said.

Pruksa plans to launch nine new projects in the second quarter, comprising more than 2,400 units worth a combined 5.9 billion baht.

Eight of the projects, comprising 2,300 units, will be townhouses on the outskirts of Bangkok, and one will be single detached houses in Ram Intra.

Largely due to the delay in the launch of the new projects in the first quarter, Pruksa reported a 23% drop in presales to 5.34 billion baht in the period, from 6.94 billion baht in the first quarter of last year.

Online platforms remained a key driver, contributing 86.7% of total presales, the same as in 2021 when they were boosted by the pandemic, Mr Uten said.

Revenue in the first quarter fell by 17.6% to 5.68 billion baht, from 6.88 billion baht in the same period last year, as a labour shortage affected construction progress.

However, the company’s net profit rose 10% to 639 million baht, from 582 million baht, while the net profit margin improved to 11.3% of total revenue, from 8.4% in the same period last year.

Gross margin also rose by 4.5 percentage points from 25.7%.

“The increase in the net profit against the drop in revenue was derived from our pricing strategy and improving productivity which we have done since early this year,” Mr Uten said.

The strategy also included a synergy with a healthcare business, Vimut Hospital, one of the firm’s subsidiaries which opened last year.

It has been developing the first Vimut Wellness Services with 50 beds in front of Pruksa Avenue Bangna-Wongwaen, a large-scale residential development with nine projects and 1,577 units, which will open in August 2022.

“We will add a health-to-home service to our customers of housing projects, with a telemedicine consultancy and a medicine delivery to home,” Mr Uten said.

Pruksa will also have two more branches at the JAS community mall in the Bang Na and Ku Bon areas, with 50 beds and 73 beds, respectively, for a total investment of 150 million baht.