2017 Q2 Results Analyst Meeting and Business Plan
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Presentation 2017 Q2 Results Analyst Meeting and Business Plan Disclaimer The information (Confidential Information) contained in this presentation is strictly confidential and is provided by Ananda Development Public Company Limited (the
2017 Q2 Results Analyst Meeting and Business Plan
Presentation
The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by Ananda Development Public Company Limited (the “Company”) to you solely for your reference. Neither this presentation nor any part thereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicated or otherwise reproduced in any form or by any means; or (iii) redistributed, passed on or otherwise disseminated, to any other person either in your organization or elsewhere, without the prior written consent of the Company. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided without express consent from the
reasonable, the Confidential Information is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning the Company. None of the Company, or any of their respective members, directors, officers, employees or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. This presentation is for information purposes only and does not constitute or form part of any offer or invitation for sale or subscription of or solicitation or invitation of any offer to or recommendation to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract, commitment or investment decision in relation thereto in Thailand, United States or any other jurisdiction. Any such purchase should be made solely on the basis of the information contained in the announcements to the Stock Exchange of Thailand relating to such securities. No reliance may be placed for any purposes whatsoever on the information set forth in this presentation or on its completeness. This presentation contains projections and forward‐looking statements that reflect the Company's current views with respect to future events and financial
contingencies as well as various risks and these may change over time and in many cases are outside the control of the Company. You are cautioned not to place undue reliance on these forward looking statements. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. Such forward‐looking statements are not guarantees of future performance and accordingly, the actual results, financial condition, performance or achievements of the Company may differ materially from those forecasted and projected or in the forward‐looking statements.
Disclaimer
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Agenda
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2Q/2017 Financial Statements
2Q2017 1Q2017 2Q2016 % Q-o-Q % Y-o-Y
M Baht % M Baht % M Baht % Total revenue
3,752 100% 2,314 100% 2,889 100% 62% 30%
Revenue from sale of real estate
2,661 71% 1,577 68% 2,528 87% 69% 5%
Other incomes
1,090 29% 738 32% 361 13% 48% 202%
Gross Profit
1,331 37% 722 33% 996 35% 84% 34%
SG&A
674 18% 548 24% 589 20% 23% 14%
Selling expenses
307 8% 215 9% 259 9% 43% 19%
Administrative expenses
366 10% 333 14% 331 11% 10% 11%
Share of Profit (Loss)
(300) (8%) (58) (2%) (91) (3%) 422% 230%
EBIT
519 14% 248 11% 370 13% 109% 40%
Interest expenses
104 3% 87 4% 75 3% 20% 39%
EBT
414 11% 161 7% 295 10% 158% 41%
Tax
135 19% 20 13% 85 22% 564% 59%
Net Profit (Loss)
279 7% 140 6% 210 7% 99% 33%
Earnings per share (baht)
0.07 0.03 0.05
5
1H/2017 Financial Statements
1H2017 1H2016 % Y-o-Y
M Baht % M Baht % Total revenue
6,066 100% 5,485 100% 11%
Revenue from sale of real estate
4,238 70% 4,707 86% (10%)
Other incomes
1,828 30% 778 14% 135%
Gross Profit
2,053 36% 1,929 36% 6%
SG&A
1,222 20% 1,215 22% 1%
Selling expenses
522 9% 482 9% 8%
Administrative expenses
700 12% 733 13% (5%)
Share of Profit (Loss)
(358) (6%) (199) (4%) 79%
EBIT
767 13% 635 12% 21%
Interest expenses
192 3% 144 3% 33%
EBT
575 9% 491 9% 17%
Tax
155 17% 133 19% 17%
Net Profit (Loss)
420 7% 358 7% 17%
Earnings per share (baht)
0.10 0.09
6
2Q/2017 Financial Highlights
2Q2017 1Q2017 2Q2016 % Q-o-Q % Y-o-Y
M Baht M Baht M Baht
Cash balance and equivalent
1,842 3,276 2,757 (44%) (33%)
Assets
26,147 27,311 22,717 (4%) 15%
Interest bearing debts
10,897 11,467 9,809 (5%) 11%
Liabilities
14,350 15,461 12,904 (7%) 11%
Shareholders' equity
11,797 11,850 9,813 (0.5%) 20%
D/E ratio (times)
1.22 1.30 1.31 (7%) (7%)
Net IBDE ratio (times)
0.77 0.69 0.72 11% 7%
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2017 Transfer target between 24,000 and 26,000 M Baht
Quarter Quarter 1 Quarter 2 Quarter 2 (Actual) Quarter 3 Quarter 4 2017 Condo 1,217 2,316 2,326 1,844 3,816 9,204
Housing 360 461 335 596 1,008 2,299 Ananda F/S 1,557 2,777 2,661 2,440 4,824 11,503 Ananda Share in JV 337 38 41 632 5,898 6,908 Mitsui Share in JV 324 36 39 607 5,667 6,637 Total (M Baht) 2,238 2,851 2,741 3,679 16,389
25,047
10 new condo projects to
complete in 2017
2017 Business Plan >>Transfers
1Q17 (A) 2Q17 (F) 2Q17 (A) 3Q17 (F) 4Q17 (F) 1,217 2,316 2,328 1,844 3,816 360 461 334 596 1,008 337 38 41 632 5,898 324 36 39 607 5,667 Unit : Mil Baht Condo Housing Ananda Share in JV Mitsui Share in JV
Raise 2017 Full Year Transfer Target by 0.2%
Growth
%
From 2016
8
Updated: June 30, 2017
Ashton Residence 41
Unit: M Baht
New
76% transfer after 201748.4% sold
24% transfer target in 17Ideo Mobi Bangsue Grand Interchange1
New
42.1% sold
48% transfer target in 17 52% transfer after 2017Ideo Q Siam-Ratchathewi1
New
83.2% sold
78% transfer target in 17 22% transfer after 2017Transfer Begins
1Q17 3Q17 2Q17
Ideo Sukhumvit 115
New
1% transfer after 201774.4% sold
99% transfer target in 1789% Of Second Half Target Will Be Derived From New Projects
Value 2,038 M Baht Value 2,764 M Baht Value 3,822 M Baht Value 2,532 M Baht
Note : 1 Joint Venture with Mitsui and Ananda 51% Share
Artale Phattanakarn-Thonglor
New
Airi Rama 5 - Ratchaphruek
New
Unio Town Lumlukka-Klong 4
New
51% transferred
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Updated: June 30, 2017
Unio Sukhumvit 72
Unit: M Baht
New
4Q17
Transfer Begins
New
New Housing Project
Ideo Thaphra Interchange1
New
Venio Sukhumvit 10
New
Unio Rama2-Thakham
New
Q Chidlom-Phetchaburi1
New
27% transfer after 201760.7% sold
73% transfer target in 17Ashton Asoke1
New
25% transfer after 201797.9% sold
75% transfer target in 17New Housing Project
51% transfer after 201741.5% sold
49% transfer target in 17 26% transfer after 201758.5% sold
74% transfer target in 17 34% transfer after 201768.3% sold
66% transfer target in 17 30% transfer after 201790.3% sold
70% transfer target in 17Value 862 M Baht Value 1,488 M Baht Value 979 M Baht Value 6,705 M Baht Value 3,022 M Baht Value 2,790 M Baht
Note : 1 Joint Venture with Mitsui Fudosan and Ananda 51% Share
89% Of Second Half Target Will Be Derived From New Projects
10 Ideo Mobi Sukhumvit Eastgate Ideo Mobi Wongsawang Int.
75.8% transferred82.7% sold
46.5% transfer target in 17 32.9% transferred37.2% sold
18.8% transfer target in 17Unio Charan 3 Ideo Sathorn-Thaphra
73.8% transferred71.1% sold
57.6% transfer target in 17 99.1% transferred99.7% sold
7.4% transfer target in 17Atoll (4 projects) Arden (3 projects) Ideo Mobi Charan Interchange
65.8% sold
64.9% transferred 9.2% transfer target in 1763.1% sold
60.1% transferred 24.5% transfer target in 17 96.5% transferred98.6% sold
15.4% transfer target in 17Ideo Q Chula-Samyan1
Unit: M Baht
11% Of Second Half Transfer Target Will Be Derived From Existing Projects
Value 2,516 M Baht Value 1,774 M Baht Value 2,113 M Baht Value 3,549 M Baht Value 3,735 M Baht Value 6,804 M Baht Value 2,915 M Baht
Updated: June 30, 2017
Note : 1 Joint Venture with Mitsui Fudosan and Ananda 51% Share
Ideo Q Ratchathewi
100% transferred100% sold
1.2% transfer target in 17Value 2,008 M Baht
100% transferred100% sold
11% transfer target in 17Value 6,826 M Baht
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2017 2018 2019 2020 3,692 1,047 6,162 10,638 4,196 914 5,920 11,722 4,032 878 529 5 Unit: Mil Baht Ananda's Backlog - Condo Ananda's Backlog in JV - Condo Partner's Share Ananda's Backlog - Housing
Backlog 49.7 Bn Baht 81% of the next 6M17
transfers secured by backlog
Record Backlog
Updated: June 30, 2017
16,304 23,412 1,792 8,228
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2.2% 1.0% 3.0% 5.0% 7.0% 1 2 3 4 5 6 7 8 9 10 17.5% 1.0% 11.0% 21.0% 31.0% 41.0% 1 2 3 4 5 6 7 8 9 10 2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 1 2 3 4 5 6 7 8 9 10
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Cancellation Rate
Updated: June 30, 2017
1Q17
Note: % Cancellation Rates are calculated by cancelled value divided by beginning backlog + presales
2Q17 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
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7.5% 1.0% 6.0% 11.0% 16.0% 21.0% 1 2 3 4 5 6 7 8 9 10 13.3% 10.0% 20.0% 30.0% 40.0% 1 2 3 4 5 6 7 8 9 10 7.0% 0.0% 5.0% 10.0% 15.0% 20.0% 1 2 3 4 5 6 7 8 9 10
Mortgage Rejection Rate
Note: % Mortgage Rejection Rates are shown by units Updated: June 30, 2017
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
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2017 Launch Target between 42,000 and 43,000 M Baht
Quarter Quarter 1 Quarter 2 Quarter 2 (Actual) Quarter 3 Quarter 4 2017
Condo 1,875 21,163 21,880
35,988 Housing 1,637 1,513 949 2,852 824 6,261 Total (M Baht) 3,512 22,676 22,829 2,852 13,057
42,249
2 5 (JVs) 5 (JVs)
11 (8 JVs)
1 2 1 3 1
6 JV 8 Sites accounting for 78%
2017 Business Plan >>Launches
Q2/2017 launch target beat our latest guidance by 0.7%
1Q17 (A) 2Q17 (F) 2Q17 (A) 3Q17 (F) 4Q17 (F) 1,875 21,163 21,880 12,233 1,637 1,513 949 2,852 824 Unit : Mil Baht Condo Housing
Growth
%
From 2016
15
16
New Launch In Q2 >> Ideo Q Victory
Ideo Q Victory Project value (M Baht) 3,208
348 Soft Launched date June 2017 Expected transfer date 2019 Location 0 m. from BTS Victory Monument
Note: 1 = Including international sales with on process be recorded for sales in Q3
New
Sales Rate1
100%
as of June 30th, 2017
17
New Launch In Q2 >> Ashton Asoke-Rama 9
Asoke Asoke-Rama 9 Project value (M Baht) 6,396
593 Soft Launched date June 2017 Expected transfer date 2020 Location 230 m. from MRT Rama 9
New
Sales Rate1
74%
as of June 30th, 2017
Note: 1 = % of units released including international sales with on process be recorded for sales in Q3
18
New Launch In Q2 >> Ideo New Rama 9
Ideo New Rama 9 Project value (M Baht) 2,956
994 Soft Launched date June 2017 Expected transfer date 2019 Location 380 m. from MRT Ramkhamhaeng 12
Note: 1 = % of units released including international sales with on process be recorded for sales in Q3
New
Sales Rate1
54%
as of June 30th, 2017
19
New Launch In Q2 >> Ideo Q Sukhumvit 36
Ideo Q Sukhumvit 36 Project value (M Baht) 4,272
449 Soft Launched date June 2017 Expected transfer date 2019 Location 450 m. from BTS Thong Lo
New
Sales Rate1
45%
as of June 30th, 2017
Note: 1 = % of units released including international sales with on process be recorded for sales in Q3
20
New Launch In Q2 >> Elio Del Nest
Elio Del Nest Project value (M Baht) 5,048
1,459 Soft Launched date June 2017 Expected transfer date 2019 Location 750 m. from BTS Udomsuk
New
Sales Rate1
24%
as of June 30th, 2017
Note: 1 = % of units released including international sales with on process be recorded for sales in Q3
21
New Launch In Q2 >> Unio Town Lumlukka Klong 4
Unio Town Lumlukka Klong 4 Project value (M Baht) 949
303 Soft Launched date June 2017 Expected transfer date 2017 Location Lumlukka Klong 4 near Klong 4 station
New
Sales Rate1
36%
as of June 30th, 2017
Note: 1 = % of units released
22
New Launch In Q3 >> Airi Rama 5 - Ratchaphruek
Airi Rama 5 - Ratchaphruek Project value (M Baht) 789
63 Soft Launched date July 2017 Expected transfer date 2017 Location Rama 5 Road, Nonthaburi
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New Launch In Q3 >> Artale Kaset - Nawamin
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New Launch In Q3 >> Atoll Wongwaen - Lumkukka
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Project
Year
Joint Venture Continuing Joint Venture Since 2013
Q2/17: JV
Value
Q4/17: JV will be 21 Projects with a project value of 93,000 M Baht
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2017 Presales Target between 30,500 and 31,500 M Baht
2017 Business Plan >>Presales
Q2/2017 presales beat our latest guidance by 50% and 2017 presales target by 0.02%
Quarter Quarter 1 Quarter 2 Quarter 2 (Actual) Quarter 3 Quarter 4 2017 Condo 3,836 6,569 10,322 5,576 8,390 28,125 Housing 600 783 728 774 809 2,911 Total (M Baht)
4,436 7,352 11,051 6,350 9,200
31,036
Growth
%
From 2016
1Q17 (A) 2Q17 (F) 2Q17 (A) 3Q17 (F) 4Q17 (F) 3,836 6,569 10,322 5,576 8,390 600 783 728 774 809 Unit : Mil Baht Condo Housing
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10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 1 year 2 years 3 years more than 3 years 19,651 11,767 17,688 96 21,874 9,138 5,940 62 Unit:M Baht Backlog Unsold Inventories
Condo Unsold Inventories Aging Condo Unsold Inventories are Cleared by End of Construction
Updated: June 30, 2017
Backlog (condo) 49.2 Bn Baht Unsold Inventories (condo) 37 Bn Baht
Only 0.1% of Total Development Unsold After 3 Years
0.1% of condo
projects under development
86.2 Bn Baht
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Fact sheet Detail
Debentures of Ananda Development Public Company Limited No. 3/2017
Unsubordinated and Unsecured Debentures without a Debenture holders’ Representative in the Name-Registered Debenture Certificate
Institutional investors or/and high net worth investors
3,000,000 Units
1,000 Baht/Unit
1,000 Baht/Unit
3,000,000,000 Baht
5 April 2017
3 Years 10. Interest Rate 3.95%
“BBB” (stable) by Tris Rating
Bond Issuance (3 Years)
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Record Backlog – 49.7 Bn Baht Net IBDE – below Target at 0.77 times Successful Launches Successful Bond Issue Record Interim Dividend Payment
Ananda – The Harvest Continues!
Revenues up 62% QoQ and 30% YoY Presales beat guidance by 50% Raise annual transfer and presales target SG&A to Revenues down QoQ from 24% to 18% Profits up 99% QoQ and 33% YoY Net Profit Margin up QoQ to 7%
Summary 2Q 2017
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Item 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Guidance
Launches (M Baht) 34,213 14,954 34,828 20,693 42,000-43,000 Transfers1 (M Baht) 8,808 9,678 9,598 15,866 24,000-26,000 Presales (M Baht) 21,083 20,898 26,235 25,175 30,500-31,500 Gross Profit Margin 37% 38% 39% 35% 32% Total Debt / Equity, Year End 1.10 1.47 1.35 1.36 0.97 Net Interest Bearing D / E, Year End 0.30 0.74 0.70 0.77 0.67 Effective Tax Rate 21% 18% 17% 18% 20% Land Purchases (M Baht) 4,343 10,284 5,258 7,252 13,000-14,000
2017 Summary
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9,598
2015 TRANSFERS
9,598
65% YoY
TRANSFERS
15,866
58% YoY
TRANSFERS
25,047
69% YoY
TRANSFERS
42,357
14% YoY
TRANSFERS
48,497
20% YoY
TRANSFERS
58,187
2015-2019: 5 Times Growth
BACKLOG16,304
BACKLOG23,412
BACKLOG8,228
Backlog 49.7 Bn Baht 81% of the next
6M17 transfers secured by Backlog
81% of
2H17
55% 17%
Note: The 5-year plan has assumption of no new capital and keeping net IDE ratio at 1:1
BACKLOG1,792
3%
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Economic situation stable GDP growth projections revisions stable Increased government disbursement Land price increases slowing Construction costs constrained Consumer confidence slowing Banks remain strongly supportive – Bond Our customer group remains “cashed up” and with good credit Mass Transit Supply/Demand varies by station Mass Transit market more robust than general market
Source : University of Thai Chamber
Initial Sales Rate
Sources: AREA
59% 47% 58% 36% 64% 22% 53% 37% 0% 10% 20% 30% 40% 50% 60% 70% 0-300 m. > 1,000 m. 2013 2014 2015 2016
Company View
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Updated : 27 July 2017 Under Construction
Lampong (2019)
(2018)
Minburi (2023)
Awarded in 2016 and 2017
Makasan – Huamark (2019)
*Approved by cabinet within 2016
(2018)
*Approved by cabinet in March 2017
*Approved by cabinet in July 2017
(2021)
(2021)
Center (2023) *Will be approved by cabinet within 2017
Current Line Under Construction Awarding in 2016 & 2017
Mass Transit Network Expansion
In 2017 72 kms of new lines will be approved by cabinet representing 46 new stations additional from 112kms of new lines approved in 2016 for 82 new stations Future growth opportunities for Ananda for many years to come
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The company’s intention has always been to provide investors with a good dividend as well as capital growth Our stated policy has been to pay a dividend when the Board thought it was appropriate and prudent Continues our record of increasing the dividend every year since IPO Board approves that an interim dividend should be paid in the amount of 6 satang per share increasing 50% from a year earlier Record Interim Dividend
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Contact:
Chief Strategic Development Officer Ananda Development Public Company Limited john@ananda.co.th +662 056 2222 Mobile: +66 877 99 1946
Senior Investor Relations Manager Ananda Development Public Company Limited komsan@ananda.co.th +662 056 2222 Mobile: +66 819 16 3755
Thank You
Scan QR Code to talk to Ananda IR Chatbot
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Appendix
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Project Launched Type Value (M Baht) %Net Sold Backlog (M Baht) Unsold Inventory (M Baht) %Transfer
ADO: Atoll (Housing) Feb-13 Housing 6,804 65.8% 98 2,325 64.9% AD14: Ideo Sathorn – Tha Phra Jul-13 Condo 3,549 98.6% 74 50 96.5% AD15: Ideo Mobi Charan-Interchange Oct-13 Condo 3,735 99.7% 22 12 99.1% AD16: Ideo Q Ratchatewi Oct-13 Condo 2,008 100.0%
AD16: Ideo Q Chula-Samyan (JV) Oct-13 Condo 6,826 100.0%
AD17: Ashton Asoke (JV) Sep-14 Condo 6,705 97.9% 6,564 142
Sep-14 Condo 3,822 83.2% 3,181 641
Interchange Sep-14 Condo 1,774 37.2% 77 1,114 32.9% AD16: Ideo Mobi Sukhumvit Eastgate Sep-14 Condo 2,516 82.7% 174 436 75.8% AD18: Ashton Chula-Silom (JV) Mar-15 Condo 8,708 76.2% 6,639 2,070
Mar-15 Condo 2,038 48.4% 985 1,052
Jun-15 Condo 2,113 77.1% 69 485 73.8% AD16: Arden 3 projects Jun-15 Housing 2,915 63.1% 87 1,077 60.1% AD17: Ideo Sukhumvit 115 Aug-15 Condo 2,764 74.4% 648 707 51.0% AD17: Q Chidlom (JV) Aug-15 Condo 3,022 60.7% 1,835 1,186
Aug-15 Condo 5,091 59.6% 3,032 2,059
Interchange (JV) Nov-15 Condo 2,532 42.1% 1,067 1,465
Nov-15 Condo 6,115 65.9% 4,028 2,087
(2013-2015 Launched) 73,038 28,578 16,909
Current Projects As Of June 2017
Updated: June 30, 2017
Note: JV = Joint Venture with Mitsui Fudosan
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Current Projects As Of June 2017 (Cont.)
Updated: June 30, 2017
Project Launched Type Value (M Baht) % Net Sold Backlog (M Baht) Unsold Inventory (M Baht) %Transfer
AD17: Ideo Tha Phra Interchange (JV) Feb-16 Condo 2,790 41.5% 1,157 1,633
Jul-16 Condo 1,488 68.3% 1,016 472
Jul-16 Condo 979 58.5% 573 406
Sep-16 Condo 862 90.3% 779 84
Sep-16 Condo 3,246 67.8% 2,201 1,044
Oct-16 Condo 6,220 85.4% 5,310 910
Oct-16 Condo 2,552 61.7% 1,574 977
Oct-16 Condo 2,422 40.6% 983 1,439
(2016 Launched) 20,559 13,593 6,966
AD18: Unio Ramkhamhaeng-Serithai Mar-17 Condo 935 16.5% 154 781
Mar-17 Condo 941 18.0% 169 772
Mar-17 Housing 1,640 16.5% 271 1,369
Jun-17 Condo 3,208 96.1% (100%1) 3,084 124
Jun-17 Condo 6,396 28.0% (37%1) 1,792 4,604
Jun-17 Condo 4,272 15.6% (35%1) 665 3,607
Jun-17 Condo 2,956 34.3% (43%1) 1,015 1,941
Jun-17 Condo 5,048 6.6% (8%1) 335 4,713
Jun-17 Housing 949 8.3% 79 871
(2017 Launched) 26,345 7,564 18,781
Grand total
119,941 49,735 42,655
Note: JV = Joint Venture with Mitsui Fudosan
1 = Including international sales with