NOBLE shows solid performance in the first half of 2021 with net profit rising 10% YoY, announcement of interim dividend payment of THB 0.35 per share,reaffirming the dividend stock
Bangkok – Noble Development Plc (NOBLE) announced its 1H/2021 performance with total revenue of THB 4,915 million, surging 22% YoY, and net profit rose 10% YoY to THB 786 million in tandem with pre-sales reaching THB 4,265 million. The company also announced interim dividend payment of THB 0.35 per share, with XD date on 24 August 2021. It will move forward to continuously develop low-rise projects to diversify its portfolio and accelerate revenue recognition. With abundant liquidity from cash on hand and undrawn credit facilities over THB 6,100 million, this will support the investment plan locally and abroad.
Mr. Thongchai Busrapan, First Vice Chairman and Co-CEO of Noble Development Plc (NOBLE), a leading residential developer in prime locations in Greater Bangkok, revealed about the success of operations in the first half ending on 30 June 2021 that the company recorded total revenue of THB 4,915 million, rising 22% YoY and net profit of THB 786 million, a 10% YoY. Contributing to the rise was the recognition of revenue from the ownership transfers of completed condominium and housing projects from local and overseas transfer, both from backlog and pre-sales from ready to move projects such as Nue Noble Changwattana, Noble B33 Sukhumvit, Noble Ploenchit, Noble BE19 Sukhumvit, Noble Around33 Sukhumvit, Noble Ambience Sukhumvit 42, and Noble Gable Watcharapol, etc.
Pre-sales in the first half of 2021 reached at THB 4,265 million in which more than THB 2,500 million came from sale of inventory projects and more than THB 1,700 million came mainly from the sale of 2 new projects launched ie. Noble Form Thonglor and Nue Noble Centre-Bangna, as well as the successful campaign of LAST PIECE, LAST PRICE for 5 inventory projects in 1Q’21. While presale from overseas was steady in the first half of 2021, evidenced from Noble’s overseas market share of 40% total sale of Bangkok Condominium in first half of 2021. This reflects to Noble’s strong distribution network particularly China.
For the second quarter of 2021 alone, the company recorded total revenue of THB 2,233 million, a 20% YoY due to higher recognized ownership transfer from completed condominium and housing projects. Net profit stood at THB 302 million which was closed to second quarter of 2020 due to the impact from the Covid-19 pandemic.
Additionally, the Board of Directors of the Company No.5/2021 has approved an interim dividend payment for the first-half 2021 performance at THB 0.35 per share, amounting to THB 479 million, equivalent to more than 10% of dividend yield (Trailing 12 months period). This dividend payment reflects the solid first-half performance. The date of XD is on 24 August 2021 and the dividend payment will be scheduled within early September 2021.
Mr. Thongchai added that the company will continue to develop housing projects, including low-rise condominiums (with no higher than 8-storey) to diversify its product portfolio for a wider coverage. These projects will help the company to have a faster revenue recognition as they require a shorter construction period. Noble plans to increase the proportion of low-rise projects to be 30% of the portfolio, up from 10% currently. As a result, the company has more than 10 projects ready to launch both housing and condominium projects, and plans to develop housing projects in several areas such as Don Muang Road, Ekkamai Ram Inthra Road, Ratchaphruek Road, and Srinakarin Road.
“We see opportunities to acquire land plots for more horizontal developments as the Covid-19 situation makes landowners to sell their land at more reasonable price, while Noble has its financial capacity. At the end of Q2/2021, the company had its cash on hand over THB 1,600 million and undrawn credit facilities over THB 4,500 mm, which was sufficient to accommodate its growth and expansion plan at the present,” he said.
For the incident to close the construction worker camp for the past 1 month, Noble did not see an impact on the ownership transfer of this year due to the fact that the company can deliver the project as planned. However, the projected pre-sale that set at the beginning of this year may change due to the postponement of project launch from the Covid-19 situation. However, the company still carries on other relevant development process such as applying for relevant permits while waiting for better sentiment that is expected to be from Q4/2021. At the end of Q2/2021, the company had a backlog worth THB 11,800 million, which will be gradually booked as revenue over the next 3 years and net interest bearing debt to equity ratio was 1.19 times.
Moreover, the company made a good progress of UK investment as it successfully closed the deals to acquire two residential projects with a total investment of THB 300 million in Manchester and London suburb, which is in the final of due diligence process. This has made a milestone for the investment to diversify risk through the Noble’s foreign network and the strong foreign customer base. Additionally, the company is in negotiation to acquire 2-3 projects in overseas worth about THB 1,800 million. A GBP 250 million overseas investment in UK is set budget for investment in the next 3 years, of which NOBLE will invest 45% in each project. The investment of GBP 25 million (THB 1,100 million) is expected in the first year, of which NOBLE will spend approximately THB 500 million based on its respective shareholding 45% and expects net profit contribution to account for 15%-20% of total net profit over the next three years.
