Despite a drop in revenue realisation in the first quarter of the year,
Chief executive officer Thongma Vijitpongpun said the revenue drop was caused by poor market sentiment in 2006. But he expects the mood to improve by the second half of 2007 due to the election and possible property stimulus measures.
At the end of the first quarter, PS recorded sales of 2.39 billion baht, a new high, up by 26% from the same period last year. But it realised 1.89 billion baht in revenue, down by 9% from the same period last year and a drop of 17% from the fourth quarter of 2006.
Net profits were 292 million baht, down 11% from the same period last year and down 21% from the fourth quarter of 2006 due to an increase in the company's marketing and advertising budget, said Mr Thongma.
He said the revenue target for the whole year would be contributed by its accumulated backlog worth four billion baht, which would be realised within the next five months.
Developers have been hurt by low consumer demand and market oversupply.
The company is also trying to reduce the rejection rate of its customers loan applications. It joined the Government Housing Bank and Thai Credit Retail Bank, a subsidiary of the Thai Insurance Group, to help clients improve their financial records.
Since it set up its customer profile improvement team late last year, PS has reduced the loan-rejection rate by 2-3% from 27% in 2006, he said.
PS also shifted to condominium developments this year with the launch of two budget projects worth a combined 2.5 billion baht, targeting sales of 1.47 billion baht by the end of the year, said Mr Thongma.
Under the brand Ivy Condo, the company will launch a low-rise building worth 800 million baht, to be opened on May 27. It will be located in Ratchadaphisek Soi 20 near the Sutthisarn MRT station, comprising 399 units sized from 30 to 66 square metres and priced from 1.58 million to 3.8 million baht.
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