Property firms revising strategies after lean Q2

Most of the eight firms that announced their financial result on Tuesday showed dips in revenue and profit in the second quarter compared to the same period last year.
AP (Thailand) Plc reported total Q2 revenue of Bt4.8 billion, down 25.9 per cent last year’s Bt6.48 billion, and net profit of Bt488 million, down 59.32 per cent.
LPN Development Plc’s Q2 revenue was Bt1.67 billion, a drop of 26.75 per cent, and profit of Bt176.73 million, for a 29.31 per cent decline.
SC Asset Corporation Plc revenue was Bt3.49 billion, down 10.51 per cent, and profit Bt282 million, a 37.33 per cent drop.
Ananda Development Plc put Q2 revenue at Bt2.03 billion, down 15.41 per cent, and profit at Bt119 million, down 79.62 per cent.
Pruksa Holding Plc reported Bt7.8 billion in revenue, down 28.44 per cent, and Bt932 million profit, down 40.25 per cent.
Property Perfect Plc put its revenue at Bt4.3 billion, down 8.5 per cent, but its Q2 net profit was Bt471.46 million, up 208.14 per cent from the same period last year.
Other firms reported strong first-half growth, however, thanks to solid performances in Q1, when homebuyers rushed to beat the LTV deadline (see graphic).
Pruksa deputy chief executive Supattra Paopiamsap said that the overall market in metropolitan Bangkok dropped 13 per cent in H1 compared to the same period last year, falling to Bt200.65 billion. Property ownership transfers between April and May fell 24 per cent, to Bt41.9 billion, showing a clear market slowdown.
She said Pruksa would adjust its strategy to be in line with current economic conditions. It plans to launch a further 26 new residential projects worth Bt26.95 billion in 2019, lowering its target for the year from 55 projects to 40.
Its revenue target has been revised down from Bt47 billion to Bt45 billion.
Pruksa reported total revenue of Bt19.66 billion for the first half, up three per cent from the same period last year, and net profit of Bt2.61 billion, up eight per cent. 
Its current backlog of properties to sell or transfer to buyers is worth Bt36.93 billion, which will ensure revenues meet the new target, Supattra said.
The company’s directors have meanwhile approved payment of an interim dividend of Bt0.60 a share, she added.
Other firms have also revised 2019 project launch forecasts due to the market swings.
Ananda Development has suspended its Bt10-billion condominium project Ideo Q Phahon-Saphankhwai and will refund buyers’ down payments received since April.
“About 39 per cent of the first phase, totalling 396 units, was reserved,” chief strategy officer Sumeth Ratanasrikul said early this month. “It has become clear that the demand does not match with the concept design, and for this reason we have decided to suspend sales and refund booking and down payments. We will now revise the design and launch it again in 2020.
Ideo Q was under construction on six rai close to the BTS Saphan Khwai station and was designed to have 1,114 units at a starting price of Bt5.5 million per unit.