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Supalai
Tisco Securities has maintained its "buy" recommendation on Supalai shares, with a 12-month target price of Bt4.10 apiece.
The property developer's presales for February amounted to only Bt540 million, rather low when compared with its full-year pre-sales target of Bt8.8 billion. The brokerage has therefore revised downwards its 2007 forecast for revenue recognition by 9 per cent to Bt5.08 billion and net profit by 7 per cent to Bt947 million.Despite its ambitious pre-sales target for 2007, Supalai still expects revenue recognition for this year to amount to only Bt5.5 billion. This target is based on the company's order backlog of Bt3.2 billion to be realised as revenues this year and revenue recognition of Bt2.3 billion from its low-rise projects (including ongoing projects and new projects to be launched this year). As of the end of February, cumulative sales from yet-to-be-transferred housing units amounted to Bt8.4 billion to be realised in 2007-09. The company's low-rise projects continue to sell well, particularly Supalai Ville Kingkaew-Srinakarin and Supalai Ville Sukhumvit-Srinakarin, which were launched in the fourth quarter last year. In addition, Supalai Park Ville Ramindra has been well received and the company plans to launch phase 2 of this project this year. This year, the company plans to put eight new projects on the market. So far, the land has already been secured for seven of these projects, which have an estimated sales value of Bt6.14 billion. The brokerage reduced its gross-margin estimate for the property developer to 40 per cent (from 41 per cent) and cut its forecast ratio of selling and administration expenses to sales to 13 per cent (from 14 per cent).
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