Pruksa Kicks off the Year of the Tiger, Seeking to Invest 3.5 billion baht in New Corporate Venture towards Sustainable Growth, Announcing Operating Results in FY2021 with 16% Sales Growth
21 February 2022 – Pruksa set a budget of 3.5 billion baht, aiming to integrate digital innovations to invest in new businesses to capture future trends. The Company is demonstrating its robust financing structure, targeting to achieve 23% real estate sales increase in 2022 to 31 billion baht while transfers are set to climb by 18 % to 33 billion baht. Meanwhile, it seeks to initiate a business that generates recurring income and expand health services.
Mr. Uten Lohachitpitaks, Chief Executive Officer, Pruksa Holding Public Company Limited, revealed that
“Pruksa has laid out four main strategies for 2022: (1) Reshape its portfolio to decrease inventories and gearing towards increase the proportion of real-demand premium home customers (2) Strengthen its core business with 157 plots of land on hand (worth 15.4 billion baht) while managing 145 development projects in pipeline, as well as 2,300 units ready to move in units (3) Enhancing the synergy between the real estate business and ViMUT hospital, a subsidiary of Pruksa, which brings the health care center to the elderly and residents at Pruksa residential projects, and lastly, (4) Creating sustainable growth through the innovation launch pad in its business operations in accordance with the Environmental, Social and Governance according to ESG principles. Pruksa also seeks to invest the budget of 3.5 billion baht in the Corporate Venture Fund for new business opportunities beyond real estate business that capture the emerging global trends of the future. The plausible formats could be through investment, partnership or Outside-in Innovation in the two following aspects that could unlock the innovations complementing Pruksa’s core business, particularly, (1) PropTech such as the solutions that enhance customer experience, digital sales and marketing tools, Smart Home IOT Senior Living / Nursing Home, etc. and (2) Health Tech such as telemedicine platform, healthcare supply chain, and healthcare hardware products, etc, all of which are destined to be the pathway towards sustainability. Early this year, Pruksa has invested in the leading company in Clinical Laboratories, Digital Heath and Genomic Labs from Singapore while also organizing Bootcamps to recruit External Venture Building teams from over a hundred team applicants. In addition, the Company is currently exploring the possibilities of investing in startups overseas, expecting to start investing in March. Ultimately, all these new business ventures would help strengthen Pruksa’s business chain through interorganizational collaboration as well as the disruptive outside-in innovation technology from startup companies.”
“In terms of financial performance, Pruksa Holding’s financial status remains robust. It currently has over 11.9 billion baht operating cash flow with the net gearing at 0.36x. Pruksa has been assigned a company rating (TRIS Rating) of A with a stable rating outlook. The overall performance of 2021 has led Pruksa to approve the dividend of 0.96 baht per share, with the interim dividend paid at the rate of 0.31 baht per share. The remaining dividend for this round at the rate of 0.65 baht per share will be submitted for approval at the Annual General Meeting of Shareholders to be held in April 2022”
In terms of Pruksa real estate business, Mr. Piya Prayong, Chief Executive Officer, Pruksa Real Estate Public Company Limited, announced the FY2021 operating results. “Pruksa successfully increased its sales in all types of residential projects, including townhouses, single-detached houses and condominiums. This was resulted from the newly adjusted business model and customer-centric strategies. The Company generated 25.4 billion baht in sales, soaring 16%, particularly the single-detached houses which grew most remarkably up to 23% from the previous year, while achieving a total revenue of 28 billion baht. In 2021, 31 residential projects, worth 21 billion million baht, were launched as planned”.
“As for the new project launches in 2022, Pruksa would prioritize the projects with high potential as well as the low-rise market, under its new business model that focus on meeting the customers’ demands. The Company is also actively penetrating the real demand segment, representing the middle to high income customers. This year, 31 new projects, worth 16.3 billion baht in total, are to be launched comprising 22 townhouse projects, 6 detached houses and 3 condominium projects. The sales target for 2022 is at 31 billion baht (or 23% growth) and 33 billion baht in transfers (18% increase), with its 7 condominium projects worth 2.9 billion baht to be delivered and generate revenue this year. In the past 8 quarters, the robust pricing strategies and promotions altogether help the Company reduce its inventories from 23.3 billion baht to only 7.5 billion baht. With these positive responses, Pruksa still offers attractive campaign throughout the first quarter with its “Wealthy and Happy” campaign which features Chinese New Year Ang Pao and special deals such as an instalment waiver of up to 24 months, a waiver of common area expenses for up to 36 months or a waiver of all transfer-day expenses, up to 4 million-baht discount in total. The promotion lasts today until 31 March 2022.”
As for its healthcare business, Dr Krittavith Lertutsahakul, Chief Executive Officer of ViMUT Hospital Holding Company Limited revealed that “ViMUT Hospital has been operating its service May 2021. It is a tertiary care hospital, where is fully equipped with medical professionals, as well as top-notch medical technology and equipment across all healthcare centers. Recently, the Hospital has served as one of the key COVID-19 vaccination centers in Bangkok. This year, ViMUT Hospital strives to develop innovations in Digital Healthtech
such as Application, telemedicine and services that serve non-communicable diseases (NCDs) patients, as well as catering to the changing lifestyles of the elderly. The Total Senior Solution program, which provides comprehensive care services for the elderly, has recently been launched, offering elderly home care services by a team of family medicine doctors, as well as home modifications to accommodate the aging residents, together with Pruksa. Some of the feature examples are wheelchair ramps, handrails, shower chairs and shock absorbing floors, all of which are being introduced in Pruksa’s residential projects. Meanwhile, the ongoing ViMUT Health Center project, the first 50-bed community health center located at Pruksa Avenue, Bangna-Wongwan will be completed and ready for service in August 2022. In a time to come, Pruksa also plans to develop senior health care center in its condominium projects located in potential urban areas.”
