Univentures eyes revenue boost of 18% despite uncertainty
Univentures targets revenue of Bt5.2 billion this year, up 18 per cent from Bt4.4 billion in 2012.Of this year's revenue, Bt290 million will come from its Park Venture project in Bangkok, Bt1.2 billion from a zinc plant, and Bt3.6 billion from its subsidiary Grand Unity Development Co. Meanwhile, Golden Land Property Development, 50.6 per cent of which is held by Univentures, will show net losses this year and next.
"After taking over a majority stake in Golden Land Property Development last year, we have no plans to do anything with the business now," said Univentures president Ornruedi Na-Ranong. "We have to take time to study what we can do and what we cannot to do, because when we took over the business we did not do due diligence."
Univentures spent Bt3.7 billion to take a majority stake in Golden Land. The company's investment budget came from increased registered capital of Bt5.73 billion.
Meanwhile, Univentures has to inject Bt1 billion to support Grand Unity Development Co, to launch condominium projects worth Bt6 billion in this year.
"Univentures will be the holding company that generates income from its subsidiaries and rental income from the Park Venture office building on Wireless Road, while Grand Unity Development will be a property developer building only condominium projects," she said.
Golden Land is also a property firm, but its role will need to be revised. That being the case, Ornruedi said, she did not see why its share prices were exceeding its business value. At a news conference yesterday, she urged investors to be cautious.
"We also have no plan to increase our share in Golden Land, and as a result we have to tell investors to consider the business outlook before making the decision to invest," she said.
Univentures bought Golden Land for Bt5.50 per share, and those shares are now trading at Bt16. Yet Golden Land recorded a net loss of Bt308 million in the first nine months of last year.
Golden Land will continue to show a net loss next year, Univentures president Thanapol Siritanachai said.