Sansiri reports B23bn for first 9 months

SET-listed developer Sansiri Plc (SIRI) is more upbeat after the company reported 23.13 billion baht in revenue for the first nine months of the year.

According to Sansiri chief operating officer Wanchak Buranasiri, the overall sentiment of both local and international investors towards Thailand’s prospects has improved in anticipation of a general election taking place next year.

The tourism industry is also growing well, he said, prompting the company to revise up Sansiri’s presales projection to 40 billion baht from the 36 billion forecast mid-year.

Mr Wanchack said the lineup of 10 new projects — five condominium sites and five detached house projects — worth more than 20 billion baht in the final two months, plus a big year-end event, will help the company achieve its sales target.

“Residential, condominium and house demand have resumed as consumer confidence recovers,” he said. “If the economy continues to grow, all developers will also see positive signs.”

Sansiri reported total revenue of 7.34 billion baht, up 8% from 6.78 billion baht in the same quarter last year.

The increase in total revenue derived from the 22% increase in revenue from business management and the 7% increase in revenue from project sales over the same quarter last year.

As a result, total revenue amounted to 23.12 billion baht in the first nine months, a slight increase of 2% compared with the same period of 2016, with revenue from project sales remaining core revenue.

In the third quarter, Sansiri and its subsidiaries reported net profit of 706 million baht, an increase of 17% from 603 million baht in the third quarter last year, leading net profit for the nine-month period to increase from 1.78 billion baht to 2.02 billion baht.

“Based on the nine-month operating results, we’re moving closer to achieving 34 billion baht of total revenue target,” Mr Wanchack said.

He said the company is more bullish about its future prospects, boosted by a recently announced investment worth US$80 million (2.3 billion baht) in six overseas technology and lifestyle companies as part of the company’s strategy to diversify outside residential development and boost sales from foreign markets next year.

Of the $80-million investment, $58 million over five years is slated for Standard International, a US-based boutique hotel under the Standard brand. Sansiri will hold a 35.09% stake in Standard International.

Sansiri expects 12 billion baht in presales of Thai residential units from the overseas market by the end of next year, up from 8 billion it projects for this year. Of the 2017 figure, 2.6 billion baht is from China, more than double the figure last year.

SIRI shares closed yesterday on the Stock Exchange of Thailand at 2.32 baht, unchanged, in trade worth 152.6 million baht.