Pruksa announces 2022 performance with 18% net profit growth
In 2023, plan to launch Wellness Centers to provide services across the city
-20 February 2023- For 2022, Pruksa Holding made the net profit of 2,772 million Baht, 18% growth with revenue of 28,640 million Baht which was close to 2021. ViMUT’s revenue took a leap up 4.7 times from 2021. For 2023, a strategic investment is planned to boost recurring income. In real estate business, the company plans to increase the projects in medium to high segments to attract more premium customers. Planning to launch new wellness centers to provide services across the city.
Mr. Uten Lohachitpitaks, Chief Executive Officer of Pruksa Holding Public Company Limited, announced the 2022 performance that Pruksa Holding made the net profit of 2,772 million Baht with 18% growth from 2021 and the revenue 28,640 million Baht which was close to 2021 or 1% growth with 9% rise in gross profit. This resulted from product and service cost management by applying Value Engineering like hollow-core precast concrete slab use, ground beam design and new cement jointing in construction process. Blockchain technology was also applied to reduce construction cost, resulting in less cement use, reducing transportation cost and working hours.
This past year, Pruksa focused on increasing the proportion of recurring income to promote long-term growth, so the strategic investment in new businesses was constantly made all year, such as establishing Corporate Venture Fund of 3,500 million Baht to invest in Prop Tech, Health Tech and Sustainable Tech and recently having jointly established “CapitaLand SEA Logistics Fund” with CapitaLand Investment Group and Ally Logistic Property with a target to achieve logistics real estate value under management of 1,000 million Singapore Dollar.
Meanwhile, Pruksa’s financial status remains strong, with low net gearing ratio at 0.22 times, and from last year’s performance the company can distribute dividend of 0.65 Baht. The total payout including interim dividend is of 0.96 Baht. The record date is March 10 which will be presented for approval in the general meeting of shareholders in April 2023. The rate of return on investment is 7.4% and the dividend distribution is on May 19.
The 2023 estimated total revenue of the group is 30,000 million Baht with 5% growth from 2022 of which expecting the support from the real estate business that have 23 new projects to be launched with the value of 23,500 million Baht in total. The 6,000 million Baht investment in new businesses. The logistics business and precast business restructuring are expecting constantly income increase following the company’s sustainability plan.
Regarding the real estate business, Mr. Piya Prayong, Chief Executive Officer of Pruksa Real Estate Public Company Limited, said that Pruksa had the revenue of 27,191 million Baht and launched 19 new projects totaling 11,100 million Baht in 2022. For 2023, the strategy plan is to strengthen the portfolio, with 23 new project launches of 8 single detached house projects, 11 townhouse projects and 4 condominium projects totaling 23,500 million Baht of project value, further attracting customers in medium to high segments with 3 premium single detached house projects, i.e., The Palm Watcharapon, The Palm Bangna-Wongwaen and The Palm Pattanakarn. The company also aims to manage the assets of 158 projects worth 69,900 million Baht that are still up for sale all over the country.
The 2023 sales target is 24,000 million Baht and transfer target is 28,000 million Baht, aiming to deliver customer value by developing living solution to support the change of demand in global megatrends, with continual sustainability in mind. Moreover, this year’s plans are spending 5,000 million Baht to purchase, targeting prime areas to further provide premium products, and collaboration within Pruksa Group in terms of healthcare business and other businesses launching this year.
For healthcare business, Dr Somsak Akksilp, Chief Executive Officer Vimut Hospital Holding Company Limited, announced 2022 performance that ViMUT made a revenue of 1,340 million Baht which is a 4.7 times huge leap from 2021, 80% of which is non-Covid 19 related revenue. While the revenue relating to Covid 19 decreased last year, the increase was from the expansion of hospital’s ecosystem, i.e., wellness centers, Ban Mhor ViMUT, Theptarin Hospital, services through digital platform like applications and telemedicine as well as cooperation with partnerships, together with the income from better operating performance of Theptarin Hospital. Vimut also cooperated with international partners which attracted 3.2 times more of foreign patients. For 2023, the group plans to invest around 2,500 million Baht, aims to build and open 3 more health centers and prepares ViMUT Hospital’s Pinklao branch development.
“Additionally, for the past year, Pruksa received the awards ensuring our performance from international organizers, such as “3G Excellence in Sustainable Development Award 2022” and “3G CSR Leadership Award 2022”, and from local organizers, such as “The National Anti-Corruption Commission’s 10th Integrity Awards”, “Thailand Top Company Awards”, “BCI Asia Top 10 Developers Awards” and “The Finalist from Best Brand Performance On Social Media”, etc.
The next operation plan is still heading towards building sustainability which the focus is on social and environmental matters, where 30% reduction of greenhouse gas emission is aimed to achieve within 2030 and carbon neutrality within 2050. This year, Pruksa has initiated the projects to reduce greenhouse gas emission and fuel and electrical power uses, which are solar roofing, passive home designs, Smart Home technologies, house constructions using low-carbon precast, Smart Offices and Smart Hospitals which the hospitals use less power.” Mr. Uten concluded.
