The company's tax calculation on projects being transferred will be based on profits from re-evaluated appraisal prices, which were significantly higher than the original selling prices when sold from late 2003-04.

The company's planned 1.47-billion private-placement share issue was delayed after its current share price turned lower than the offering price.

Without fresh capital from the recapitalisation plan, Sansiri had to cut this year's presales target to Bt10.4 billion, down 60 per cent from its earlier forecast. However, the company still needs to raise funds through borrowing and perhaps a capital increase this year. As such, the broker believes Sansiri's share price should be capped by this overhang.

Its new projects to be opened this year have also been reduced to 13, with a total value of Bt18.7 billion, down from 26 worth almost Bt20 billion planned before. Even worse, the company's presales for next year are likely to drop further, to Bt9.3 billion, down 11 per cent year on year.

Sansiri's delayed recap plan and the double tax effect led the broker to cut its net-earnings estimates for this year and next 31 per cent and 40 per cent to Bt516 million and Bt658 million, respectively.