Sena Development has targeted 20-per-cent revenue growth this year, as it will start to receive income from its Bt600-million backlog.
Director Kessara Thanyalakpark said revenue would reach Bt1.5 billion this year, up 25 per cent from an expected showing of Bt1.2 billion last year.
She said this year's higher revenue target was thanks to the Bt600-million backlog.
Sena has not reported its 2009 financial performance to the Stock Exchange of Thailand yet. However, Kessara said the company achieved sales revenue of Bt1.9 billion, beating its expectations by Bt4 million. Impressive presales came from projects like The Niche Taksin and The Niche Lat Phrao 130. She said Sena had targeted presales of Bt1.7 billion this year, while its gross profit margin would remain unchanged at last year's level of 40-50 per cent.
The company will launch seven new projects worth a combined Bt4 billion this year: three detached-house projects, three condominiums and one serviced-apartment complex.
Kessara said the company expected condos to contribute 70 per cent of revenue this year, up from 50 per cent last year. Revenue from other projects will thus be reduced to 30 per cent, from 50 per cent before.
Sena has 11 existing projects worth a combined Bt4 billion: six low-rise projects and five high-rise condominiums. The company will also pay Bt700 million for land on which to build future residential projects.
Sena recently paid Bt100 million for two plots of land - one for a high-rise condominium and the other for a low-rise project. Most of the funding for these projects will come from an initial public offering (IPO), allowing the company to maintain a cash flow of between Bt200 million and 300 million. It can borrow Bt1 billion in bank loans, because its debt-to-equity is lower than 0.5.
Kessara said Sena would launch a new, Bt600-million condominium project from March 6-7 under a new brand: The Kits. By targeting low- to medium-income customers, the project has received Board of Investment privileges. Units will be priced at Bt700,000 to Bt900,000 each.
Meanwhile, Sena's share price is now lower than the IPO price of Bt1.98, but Kessara said the company was not concerned, because it was a dividend stock, and the property business was considered fiercely competitive.
"We'll propose a dividend payment to the board of directors meeting on February 25. Company policy is to pay out at least 40 per cent of the net profit," she said.
Sena closed at Bt1.88 yesterday, up 0.53 per cent from Thursday.
