SA flagged the revenue in 2022 to reach 4,900 million baht, launched 6 new projects, increased horizontal proportion – created recurring income – used low-cost source of finance, and applied ASSET PLAY strategy to expand the business and support the future to grow exponentially
Siamese Asset Plc. (SA) flagged the revenue to reach 4,500-4,900 million baht, launched 6 new projects in the total value of 11,621 million baht while embracing backlog of more than 4,324 million that would be recognized within 3 years (2022-2026), adjusted the low-risel real estate port to increase the revenue proportion, procured the low-cost source of investment money from Green Finance-Green Bond to support the project expansion, and emphasized on making the recurring income. The CEO “Khachonsit Singsansoen” was ready to open the “Asset Play” strategy, utilizing the available assets to develop 6 new businesses for exponential growth.
Mr. Kajonsit Singsansern, Chief Executive Officer of Siamese Asset Public Company Limited or SA, a full-service real estate developer under the concept ‘Asset of Life that Generate Profit for Every Lifestyle’, revealed that for the business plan of the year 2022, the Company had targeted the revenue to grow to 4,500-4,900 million baht from the previous year with the real estate business as the main revenue. There are 4 projects that are currently during the operation, which are the real estates for sale in the value of 19,142.53 million baht. The project that is about to complete this year is Landmark @ MRTA Station.
Currently, there are 8 completed projects in the value of 18,938.92 million baht. They are the real estates for sale in the value of 15,432 million baht with the inventory that is ready for sale in order to recognize the revenue of 200-300 million baht per month for another 5,059.6 million baht.
At the same time, there is a plan to open 6 new projects in the year 2022 in the value of 11,621.9 million baht, which are Landmark @ Kasetsart TSH Station, Monsane Exclusive Villa Ratchapruek-Pinklao, Siamese Kin Ramintra Phase 2, Siamese Home @ Phaholyothin-Rangsit, Siamese Talingchan, and Siamese Luxury Home @ Ratchapruek-345.
“Currently, the Company has the backlog in the total value of 4,324.1 million baht with the plan to recognize the revenue during 2022-2026. The completed projects will be sold and recognized the revenue about 200-300 million baht per month”.
The Chief Executive Officer also mentioned that for the 5-year business plan (2022-2026), the Company had targeted the main revenue to be more than 10,000 million baht with factors from the year 2022. The Company was planning to launch the new project, which were 4 low-rise projects in the total value of 7,500 million baht that could be gradually recognized the revenue within the end of this year to the year 2024. This was in accordance with the strategy that the Company had planned to adjust the proportion of the project development by increasing the revenue of the low-rise project to obtain the proportional value of 50% of the total revenue within 3 years (2024). There was the forecast that within the year 2023, the Company would obtain the revenue from the low-rise projects about 3,000-4,000 million baht per year.
The Company had determined the strategy for sustainable growth of the real estate development by procuring the investment money to be in accordance with the project development plan. For example: Green Finance or Green Bond, which was a new form of investment that could reduce the financial cost of the Company with the aim to develop the project in potential area, such as Sukhumvit Road, by keeping the real estate and managing to change the revenue recognition from sales to the recurring income and the development of new business to expand the business into the New S-Curve business, which would be the business with future growth.
“The Company determines to build the strong growth by planning to develop more projects for revenue recognition. At the same time, it is also looking for opportunity to create the S-Curve from new businesses by expanding the business line that are still related to the Company’s business according to the principle of Asset Play, creating values from available assets by separating into 6 businesses, which are Green Energy Business, Service-Related Business, Technology for Accommodation Business, Business for Seniors, Spa & Wellness Business, and Financial and Investment Business. We strongly believe that these important factors will help the performance of SA to grow outstandingly, steadily, and sustainably,” Mr. Kajonsit said in the end.