Thailand's leading real estate agent

Bangkok Condo Developments – SC Asset Corporation

By on Oct 17, 2013 in Property News
The Nation – October 8, 2013SC Asset Corporation supports Bangkok Condo developments.
We brought institutional fund managers to visit SC’s low-rise projects last week. We were pleasantly surprised at the strong demand for the firm’s products, given the economic slowdown. Our theme call—demand sustainability at the high-end of the market—would appear to have been confirmed. Among our coverage, SC ranks in the top-three for its FY14 profit growth profile. The firm will build a fourth office building (near a BTS station), prompting a long-term profit forecast upgrade. We maintain our TRADING BUY rating with a YE14 target price of Bt5 (SOTP; target housing PER of 9x and Bt1.2/share of net rental market value).We visited four low-rise projects, which were launched in August 2013—Life Bangkok Boulevard Pharam 5 (Bt6m/unit for standard SDHs; Bt5m/unit for small SDHs), Vista Park Sathorn-Pinklao (Bt4-5m/unit for THs) and Grand Bangkok Boulevard Sathorn-Pinklao (Bt30m/unit for SDHs)—and one launched in Nov 2012—Boulevard Petkasem-Pinklao, (Bt35m/unit). Take-up rates ranged 11-19percent for the three aforementioned projects and 50percent for Boulevard Petkasem-Pinklao. GM ranges 33-34%.The firm will post an impressive low-rise performance for 2H13 (it uses a prebuilt model for low-rise). We expect record low-rise sales of Bt2.5bn for 3Q13, up by 50% YoY and QoQ, beating the Bt2.1bn in sales reported for 2Q11. Furthermore, the firm should deliver new record low-rise sales for 4Q13, boosted by another big low-rise project launch at Cha-am (Bt1.8bn). In sum, we anticipate unprecedented low-rise revenue of Bt8.2bn for FY13, up 35% YoY. However, because of the high base set by condo presales in 3Q12 (Bt2.5bn) and 2Q13 (Bt2.9bn—a record), 3Q13 presales are expected to decline by 4% YoY and 13% QoQ.SC will post outstanding residential revenue expansion for FY14 (our model indicates 24% to Bt12bn), led by a big jump in condo income (double YoY). Management conservatively forecasts 5-10% growth in low-rise sales in FY14. SC has a Bt3.4bn condo presales backlog to transfer next year (starting 1Q-2Q14)—Chambers Ramintra transfers in 1Q14 (Bt460m, 50% booked), The Crest Santora Hua Hin in 1Q14 (Bt1.6bn, 50% booked), Centric Tiwanon Station in 2Q14 (Bt2.6bn, 98% booked), and Centric Sathorn Saint Louis in 2Q14 (Bt1.7bn, 92% booked). Management guides for good condo GM of at least 34percent for FY14.

For full article please click here.

No comment





 

emailSubscribe Via Email

Privacy guaranteed. We will not share your information.

Follow Me on Twitter

Follow Me on Facebook

Subscribe via RSS Feed

Copyright © 2020 CBRE (Thailand) Co., Ltd. All Rights Reserved.