Developer forecasts revenues to rise 35%

LPN Development expects revenue this year to rise 35 per cent over last year to Bt6.8 billion.

The estimate combines sales of Bt6.3 billion, income from its wholly owned subsidiary Pornsanti, as well as rental and service fees, the property developer's assistant managing director Sombat Kittipokiratana said yesterday.

"The country's overall economic picture early this year remains sluggish and political uncertainty continues. However, the company will not be hurt by these factors because we have Bt6.3 billion in revenues to be booked. The company for the entire year will enjoy higher growth," Sombat said.

The high-rise developer expects to maintain its gross margin at 30 per cent this year.

Two banks are negotiating with LPN to extend mortgage loans to its customers. Kasikornbank already does so.

Sombat expects the number customers whose loan applications are rejected by banks to decline with more banks vying to extend loans for the company's projects.

Last year, banks refused about 10 per cent of the company's customers who sought mortgage loans.

The company's managing director Opas Sripayak said that LPN would launch six new residential projects worth Bt7.7 billion in total this year.

Lumpini Condo Town Bodindecha, valued at Bt2.6 billion, was recently launched. Lumpini Condo Town Ram Indra-Laksi and Lumpini Place Pinklao 3 will be introduced in the second quarter this year.

Sales of Lumpini Ville, worth Bt1.2 billion, and Lumpini Town Ramkhamhaeng, valued at

Bt800 million, would begin in the third quarter, while Elderly Condominium worth Bt500 million will be opened in the fourth quarter.

Opas said more than 90 per cent of nine of the 14 buildings of Lumpini Condo Town Bodindecha were reserved.

LPN forecast that its first-quarter earnings would improve from the same period last year as about Bt1 billion in revenue would be recognised in the period.

LPN last year posted a net profit of Bt765.23 million, up from Bt588.38 million the previous year.

Source: The Nation
Friday, March 16, 2007