Quality Houses ups budget for land purchase to Bt7.5 billion
May 16, 2014 00:00
By Somluck Srimalee
Quality Houses has increased its land-acquisition budget from Bt4 billion to Bt7.5 billion this year to maintain growth until next year, Rutt Phanijphand, president and chief executive officer, said yesterday.
The company is staying with its 2014 targets of Bt19.4 billion in revenue and Bt21.4 billion in presales despite the economic slowdown and estimated drop of 10 per cent in the property market.
Its first-quarter revenue rose 16 per cent to Bt4.1 billion, while net profit ramped up 7 per cent to Bt632 million from the same three months of last year.
Suwanna Bhuddhaprasart, senior executive vice president, said: "Our presales also achieved the targets. From January to May 9, our presales reached Bt5.5 billion, thanks to strong demand for low-rise residences, both detached homes and townhouses, in Bangkok and the provinces.
"Demand has continued to pick up especially for homes priced not over Bt6 million."
The company has set aside a capital-expenditure budget of Bt15.5 billion for this year, of which Bt7.5 billion is for buying undeveloped land and Bt8 billion for constructing 25 new residential projects.
Two projects worth Bt1.3 billion were launched last quarter.
The remaining 23 projects worth Bt2.1 billion will be rolled out over the rest of the year, with six this quarter, 12 next quarter and five in the final quarter.
More than half of its capex budget will come from internal cash flow and the rest from debentures worth Bt4 billion to Bt5 billion to be issued in the second half.
This follows the issuance of debentures worth Bt2 billion with a coupon rate of 3.85 per cent last quarter.
"We’ll limit our debt-to-equity ratio to not over 1.1 times at year-end after issuing the debentures in the second quarter of this year," Suwanna said.