Home-builder Supalai's deputy managing director Atip Bijanond compares his company to " a diamond in the rough".

Despite sterling results posted last week, when the listed firm announced a massive 111-per-cent jump in net profits for the first 6 months: up Bt552 million from Bt248 million in the same period last year, its shares trade under Bt3, with a price/earnings ratio of under three.

"We are quite undervalued, and this is one of the questions that dog the company when we meet investors," he said, back from a recent trip to attend an ABN-Amro fund conference in Hong Kong, which Atip was one of four Thai companies invited to attend.

"Supalai was the only Thai property company there," he said. "ABN is keen about us because of our performance, but they said that as our capitalisation and daily share trading was modest, they had limited their allocation for the meantime."

Atip said the company would try and generate more corporate news for investors to boost interest in its shares.Supalai expects to have quite a number of positive stories to tell the market in the coming months, he added.

"Sales this year should exceed last year's Bt7.3 billion. Results will be helped by three newly completed condominium projects on which title deeds will be transferred to owners later this year. Our Oriental Place project on Sathorn, Premiere Place condominium on Asoke and first 400 units at City Home Rachadapisek will bring in Bt3.5 billion in realised income," he said.

These three projects are completely sold. The transfer of units is a special time for real-estate companies as it finalises transactions between buyers and developers and banks start servicing the mortgages.

Atip, who is also chairman of the Thai Condominium Association, said the weaker sectors in the market came from high-end products where poor marketing strategies had hurt many players.

"Because Supalai is a mid-segment builder, we do much better."

Meanwhile Supalai's chairman Prateep Tangmatitham is equally pleased with the company's performance. In an earlier interview on the topmost 34th floor of Supalai Grand Tower at Rama III Road, he enjoys panoramic views of Bangkok and the Chao Phaya River.

The Bt1-billion office building is Supalai's new headquarters. Moving here has allowed the firm to operate with greater speed and efficiency. With 30 projects in hand, Prateep is keen to maintain good momentum in home sales. "With this tower we have expanded our properties to include office space," he said. Supalai uses three floors; the remaining floors are rented to other firms.

"Rama III is easily one of the best locations in Bangkok today," he said. "Travelling is made easy by the many tollways nearby."

The building offers several sizes of office, from 100 square metres up to almost 700 metres for half a floor. It is served by 10 passenger lifts, five for the low zone and five for the high zone. Its 10-level car park is linked to the tower.

Itthi C Tan

The Nation