Press Release : Q1/2015 Operating Results
Mr.Chuan Tangmatitham, President of M.K. Real Estate Development Public Company Limited (MK), “Chuan Chuen” and “Serene House” project developer, revealed that the company has recognized Bt 434.70 million revenue from sales and services in Q1/2015, 3.08% increased YOY from Bt 421.70 million. Main projects contributing to sales revenue this quarter were Chuan Chuen Charan3, Chuan Chuen Petkasem 81, Chuan Chuen Brookside and Chuan Chuen Modus Vibhavadi.
MK earned Bt 145.13 million in gross profit, 10.53% lower YOY from Bt 162.22 million. Gross profit margin of this quarter was 33.39%, lower than 38.47% of Q1/2014, as most revenues recognized in this quarter were from townhouses which had lower gross profit margin than single- detached houses. Also, products from nearly completed projects, such as Chuan Chuen Phetkasem 81 and Chuan Chuen Rama 2, offered special promotion in order to close sales, resulting in lower profit margin. SG&A expenses stood at Bt 103.22 million, 1.57% increased YOY from Bt 101.63 million. After interest and income tax, MK’s net income was Bt 30.51 million, 31.85% decreased from Bt 44.78 million of Q1/2014. Net profit margin of Q1/2015 was 6.99%, lower than the same quarter of last year which was 10.55%.
MK’s assets increased by Bt 199.74 million comparing to the end of 2014, from Bt 7,361.25 million to Bt 7,561.0 million. Liabilities increased by Bt 168.73 million, from Bt 1,891.39 million to Bt 2,060.11 million from a bond issuance for working capital. Accordingly, cash flow from financing activities was Bt 179.54 million in surplus. Although the Company’s borrowing has increased, the total debt was still at a low level. Debt to equity ratio (D/E Ratio) of the Company at the end of Q1/2015 equals to 0.37 times, up only slightly from the end of last year, which stood at 0.35 times.
Incidentally, TRIS Rating Co., Ltd. has announced on May 11, 2015 the results of a review of the Company's corporate credit rating at "BBB +" (Triple B Plus). The Rating Outlook has been set at "Stable”. The rating reflects MK’s long track record in the middle-income segments of the residential property development market, its ability to keep construction costs at competitive levels, and its conservative financial policies. The rating also takes into consideration MK’s relatively small revenue base, the cyclical nature of the property development industry, and the slowdown in the domestic economy.
