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Published on January 31, 2008

The land purchase is part of the company's business plan to drive sales growth to 15 to 20 per cent per year. Of the budget, half will be from financial institutions and the rest from the company's cash flow.

The firm's debt-to-equity ratio is only 0.55 times, which enables it to borrow more from banks, said Chuan. The company is also launching a Bt1-billion residential project, consisting of detached and duplex houses and called Chuan Chuen Modus Chanwattana.

Meanwhile, MK will also open new phases in its eight existing projects this year with a combined value of Bt300 million. This is aimed at lifting sales this year to Bt2.7 billion.

Assistant managing director Chutima Tangmatitham said the company had received presales from projects last year worth Bt1 billion. This is expected to be booked as revenue this year.

She said the company had posted Bt2.1 billion presales for 2007, up 20 per cent from 2006. Of this, Bt1.9 billion was booked as revenue last year.

The firm announced Bt1.3 billion in revenue and Bt179.45 million in net profit for the first nine months of 2007.

"We will continue to concentrate on detached and duplex house projects because we have greater experience in this market than in condominiums. However, if we have a good location to develop condominiums we may do so in the future, but not this year," she said.

Chutima added that demand for detached and duplex homes had continued to grow, especially projects located close to mass-transit systems which have been approved by the government, including the Red and Purple lines. As a result the company believes detached and duplex homes will enjoy strong sales this year.

"Although we will not launch more projects, we now have 17 existing detached and duplex house projects in Bangkok and suburban areas with land to build 2,000 detached and duplex homes worth nearly Bt7.5 billion, enough to generate sales and revenue for our business this year and the next two or three years.

"As a result we believe that our business will grow to achieve the target," she said.

Somluck Srimalee

The Nation