Performance 3rd Quarter 2006
L.P.N./ Sorkor/452/2006
10 November 2006
| Subject: |
1. |
The Q3 of 2006 Consolidated Financial Statements of L.P.N. Development Public Co., Ltd. |
| |
2. |
Explanation on the Change of More Than 20% of the Business Performance. |
Attention: The Director and Manager The Stock Exchange of Thailand
Attachment: 1 set of Financial Statements (Thai and English Edition) as at the Q3 of 2006 of L.P.N. Development Public Co., Ltd. its subsidiaries and joint company
According to the Act of Legislation of The Stock Exchange of Thailand Section 56 on disclosing information that the Company had to submit its financial statements within 45 days after the last day of the Q3, we herewith submit to you 1 set of L.P.N. Development Public Co., Ltd., its subsidiaries and joint companys reviewed financial statements of Q3 of 2006.
L.P.N. Development Public Co., Ltd. remained the market leader of residential condominium development for those who earn middle and relatively low income because there was a large market gap. Although there were some rivals coming into this market, the company had planned the differentiation against them by adding more services and facilities as well as creating vibrant communities and enhancing life quality of those who lived in the projects and neighborhood. As a result, the company obtained the highest market share in the aspect of the number of registered units by using the strategies of Cost Leadership and Speed to push the corporate management into the highest efficiency.
Regarding the revenues in Q3 of 2006, the company, its affiliates and joint company had total revenues of Baht 1,392.66 Million, greater than those of Baht 1,292.65 Million, in the same quarter of 2005, or 7.74 % more. This was the consequence of the unit ownership transfer and recognized revenues of the projects Lumpini Ville Cultural Center amounting 509 units, Baht 695.84 Million, and also the pending transfer and recognized revenues of the previous projects owing to Q2 of 2006, to project Lumpini Ville Sukhumvit 77 and Lumpini Place Pinklao again to quantity 334 Units, amounting Baht 593.64 Million. The gross profit from the sales slightly decreased from 34.22% in Q3 of the previous year to 32.07% in this quarter. The main reason was that most recognized revenues in this quarter came from the unit ownership transfer of Lumpini Ville Cultural Center, which was the first project developed under the concept of Total Solution for residential condominium with the purpose of creating excellent communities. Therefore, the company had spent more costs in construction and facilities for the customers, encouraging their confidence in the company and their recommendation to friends and relatives. However, the company could maintain the gross profit margin higher than at minimum of 30% as appointed. Consequently, the net profit in Q3 of the year 2006 equaled Baht 223.82 Million, decreasing from Baht 238.07 Million in the previous year or 5.99% less.
When considering the statement of cash flow on 30th September, 2006, the cash remained Baht 276.70 Million, decreasing from Baht 419.43 Million in the same period of the previous year or 34.03% less. This was the result of the interim dividend paid for the performance of the year 2005 and the first half of the year 2006, amounting Baht 442.82 Million, increasing from Baht 261.32 Million in the same period of last year by 69.45%.
The debt to equity ratio on 31st December, 2005 and 30th September, 2006 increased from 0.51:1 to 0.75:1 respectively. Moreover, interest bearing debt increased from 0.19:1 to 0.30:1. However, debt to equity ratio in real estate development industry always has a dramatic increase and decrease in each quarter due to the process of investing the construction costs and the unit ownership transfer afterwards, which gains cash in the following quarter, causing a sharp decrease in debts.
Nevertheless, in Q4 of 2006, there are many pending units of the projects Lumpini Ville Cultural Center, Lumpini Ville Sukhumvit 77 and Lumpini Place Pinklao to be transferred the ownership afterwards equal to 924 Units, amounting Baht 1,470 Million.
Summarized Table
|
Item |
Consolidated |
| |
3Q 06 |
3Q 05 |
%Change |
9 months-06 |
9 months-05 |
% Change |
| 1. Total Revenues (Million Baht) |
1,392.66 |
1,292.65 |
7.74% |
3,760.56 |
2,768.95 |
35.81% |
| 2.Gross Margin (G/P) from Sales (%) |
32.07% |
34.22% |
(2.15%) |
32.91% |
35.79% |
(2.88%) |
| 3.G/P from Rent & Services (%) |
40.21% |
28.54% |
11.70% |
45.37% |
26.06% |
19.32% |
| 4. G/P from Management Service Fee (%) |
25.72% |
32.50% |
(6.78%) |
35.30% |
51.57% |
(16.28%) |
| 5. G/P from Line 2-4 (Million Baht) |
441.74 |
436.63 |
1.17% |
1,220.02 |
994.74 |
22.65% |
| 6. G/P from Line 2-4 (%) |
31.98% |
34.15% |
(2.17%) |
33.05% |
36.25% |
(3.20%) |
| 7. Selling and Administrative Expenses (Million Baht) |
127.14 |
112.30 |
13.22% |
436.06 |
300.65 |
45.04% |
| 8. Selling and Administrative Expenses (%) |
9.13% |
8.69% |
0.44% |
11.60% |
10.86% |
0.74% |
| 9. E.B.I.T. (Million Baht) |
324.64 |
337.85 |
(3.91%) |
848.58 |
715.70 |
18.57% |
| 10. E.B.I.T.(%) |
23.31% |
26.14% |
(2.83%) |
22.57% |
25.85% |
(3.28%) |
| 11. Net Profit (Million Baht) |
223.82 |
238.07 |
(5.99%) |
596.50 |
470.71 |
26.72% |
| 12. Net Profit (%) |
16.07% |
18.42% |
(2.35%) |
15.86% |
17.00% |
(1.14%) |
| 13. Earning per share (Baht) |
0.15 |
0.18 |
(16.67%) |
0.40 |
0.36 |
11.11% |
| 14. Book value per share (Baht) |
2.13 |
2.02 |
5.45% |
2.13 |
2.05 |
3.90% |
Yours sincerely,
(Opas Sripayak)
Managing Director
