Ananda Development PCL announces a 65% increase in transfers to 15,866 million Baht over 2016s total, to hit a new all-time record and announces a 102% increase in new launches in 2017 over the 2016 totalReal Estate Press Releases Wednesday February 22, 2017 11:03
Ananda Development PCL announces a 65% increase in transfers to 15,866 million Baht over 2016's total, to hit a new all-time record and announces a 102% increase in new launches in 2017 over the 2016 total, with 17 new projects totaling 41,841 million Baht in value. Beats guidance on both revenue and presales in 2016 as delivers on plan to grow 300% by 2018.
Ananda Development Public Company Limited announces that transfers of properties to customers rose 65% year on year to 15,866 million Baht for the whole of 2016 to an all-time high record. This resulted in an all-time high net profit of 1,501 million Baht for the year, an increase of 24% over the previous year. In addition, the company reported strong annual presales 21% above initial guidance at 20,792 million Baht. The company also released a business plan for 2017 during which it expects launches to grow by 102% year on year and transfers to grow by an additional 58% delivering the results the company expected as part of its "harvest period" during which it expects to grow transfers from 9.6 billion Baht in 2015 to 42.3 billion Baht in 2018.
4th quarter transfers were 10% higher than guidance at 7,491 million Baht including transfers from a Joint Venture project, an increase of 67% over the same period a year earlier and 185% over the previous quarter. This resulted in an all-time record transfer total of 15,866 million Baht for the year including transfers made in the joint venture project. Ananda recorded another all-time record net profit of 1,501 million Baht for the year, an increase of 24% year on year. The company's net margin was 12% for the year, an improvement from the 11% in the same year last year.
During the fourth quarter the company launched three new condominium projects, with a total development value of 11.2 billion Baht. Comprising the 6.2 billion Baht Ideo Sukhumvit 93 condominium project near the Bangchak BTS station, the 2.4 billion Baht Ideo Mobi Sukhumvit 66 near the Udomsuk BTS station and the 2.5 billion Baht Ideo Phaholyothin-Chatuchak near the Buffalo Bridge BTS station. Take up rates remained strong within or ahead of company expectations at 74.5% of the units for Ideo Sukhumvit 93, 38.3% of the units for Ideo Mobi Sukhumvit 66 and 40.2% of the units for Ideo Phaholyothin-Chatuchak.
Including sales from existing projects the company generated total presales for the quarter of 10 billion Baht, 45% above guidance for the quarter and the second highest quarterly presales in the company's history. Presales for 12 months totaled 25.2 billion Baht, 21% above initial guidance.
Commenting on the presales, Mr. Chanond Ruangkritya, Chief Executive Officer for Ananda, stated, "Presales for the quarter were stronger than expected. The new projects have been well received and we expect them to continue to sell steadily. We have exceeded by 45% our quarterly presales target in the fourth quarter with three new projects launching in the quarter."
Commenting on the results Ms. Muntana Aue-kitkarjorn, Chief Financial Officer for Ananda Development said, "The transfers exceeded our expectations. In particular, Ideo Q Chula-Samyan finished construction and transferred earlier than expected. Share of profit and loss from our joint venture projects turned positive for the first time at a profit of 115 million Baht compared to a loss of 477 million Baht in the same period of last year."
Ms. Muntana Aue-kitkarjorn continued, "Our cash flow remains strong and we have maintained a large cash balance with over 2 billion Baht in cash at the end of the quarter. We have continued to have strong support from our banks and have multiple options in place to fund the cash needs of the company through the year depending on how the situation evolves. In October 2016, we issued 3 bonds of 3 billion Baht with tenor 1, 3 and 5 years. Our latest 3 bonds issued bring record low cost of debt with the 1 year bond issued at only 3.05%."
The company leased a land plot on Rachadapisek Road (The new CBD Area) of 3 rai, 1 ngan and 67 sqw in the fourth quarter and plans to develop a serviced apartment project. The official operating period will begin in approximately the first quarter of 2020. This plan is in accordance with the company's strategy of diversifying revenue sources and increasing the proportion of the company's revenue coming from recurring sources.
Ananda expanded its commitment to innovation in 2016 with a new strategy based around Ananda being an UrbanTech company. The activities launched in 2016 related to this included hosting the Digital Ventures Incubator, running a hackathon event with Hubba and hosting the launch of Line Finance. These activities will expand dramatically in 2017 as Ananda reveals more of its strategy to transform innovation in the company.
In 2016 Ananda moved into its new home on the top two floors of the FYI Center on Ratchada road. The office includes world leading innovative design to provide the best possible work environment for Ananda staff. In addition, the company collaborated with Samsung, Cisco and Fujitsu to create the smartest office in Asia, deploying several technologies for the first time in Asia, such as Samsung's smart cloud printing and Cisco's SmartSpace. These technologies are part of the investment made in facilities and staff to allow Ananda to achieve its revenue growth targets without increasing headcount by the same degree.
On the subject of the 2017 Business Plan he explained, "The launch total will double from last year to around 41.8 billion in new launches for the year, comprising twelve new condominium projects worth 36.4 billion Baht and five new housing projects worth 5.4 billion Baht. Our total presales target for the year is around 30.4 billion Baht, up 21% mostly due to the higher launch total. We continue an exciting period for Ananda we refer to as our "Harvest Period", which will see our transfers triple between 2015 and 2018 including a 58% growth in transfers in 2017 to 25 billion Baht. We have backlog to be transferred in 2017 of 16.5 billion Baht, including Ananda and Mitsui's share of joint ventures which represents 66% of our annual transfer target. We have ten condominium buildings finishing construction and beginning to transfer in 2017 compared to five new condominiums finishing in 2016."
As such, the Board will submit for approval to the Annual General Meeting a recommendation to increase the dividend to 12.5 satang, an increase of 25% from a year earlier and continuing our record of increasing the dividend every year since the IPO."
He concluded, "The Company is also very proud that its commitment to the best possible corporate governance and transparency to investors has been recognized by the Stock Exchange of Thailand with the company being awarded Best Investor Relations 2016."
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