MK shows Q2/2010 Operating result
Revenue from sales and services for six-month period was Bt 1,443.72 million, growing 14.58% YOY. The company announced Bt. 0.10 per share interim dividend.
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 527.81 million revenue from sales and services in Q2/2010, slightly increased from Bt 512.05 million of Q2/2009, as the company had sped up title deed transfer in the previous quarter and had already recognized Bt 915.90 million in Q1/2010. Revenue from sales and services for six-month period was Bt 1,443.72 million, growing 14.58% from the revenue of a year earlier which was Bt 1,260.05 million. Main projects contributing to sales revenue in this quarter were Chuan Chuen Petkasem, Chuan Chuen Onnuch and Chuan Chuen Modus Centro.
For Q2/2010, MK has realized Bt 206.00 million in gross profit, dropping 4.15% YOY from Bt 214.92 million, as major projects being recognized in the previous year were of high gross profit margin while this quarter's main projects yielded lower margin. Gross profit margin of Q2/2009 was as high as 41.97% while the latest quarter's was 39.03%. Gross profit for six-month period was Bt 571.41 million, growing 9.40% from a year earlier which was Bt 522.31 million, with 39.58% gross profit margin, compared to 41.45% of the same period last year. Selling expenses increased by Bt 21.30 million YOY, from Bt 13.65 million to Bt 34.95 million. This was the result of the expiration of tax privileges, causing developer to pay special business tax at the normal rate of 3.3% instead of 0.11% under the privilege. As a result, MK's net income for Q2/2010 dropped 26.52% YOY from Bt 107.47 million to Bt 78.97 million, yielding Bt 0.09 earning per share. Net profit margin was 14.82%, compared to 20.84% of the same period last year. Net profit for six-month period was Bt 273.87 million or Bt 0.32 per share, comparable to Bt 276.22 million of the previous year. Net profit margin was 18.85%.
MK's financial position has been continually strengthened, reflected from constantly decreasing debt to equity (D/E) ratio, currently at 0.25 times, as well as surplus operating cash flow of Bt 409.52 million even after Bt 342 million had been spent on new land purchase. MK's assets stood at Bt 5,979.61 million, with no significant change from the previous quarter. Meanwhile, liabilities decreased from Bt 1,366.89 million at the end of last year to Bt 1,214.65 million from project loan repayment. In Q2/2010, MK had a new source of funding at a lower cost by issuing short-term Bill of Exchange in the amount of Bt 123 million. It was amortized at the discount rate of 2.5% p.a.
In addition, the company's board of directors has approved a payment of 2010 interim dividend for the operating result from 1 January to 30 June 2010. The rate of dividend is 0.10 baht per share, payable on 13 September 2010. Record date will be 27 August 2010 and the closing of share registration book will be on 30 August 2010. Dividend payment for the year 2009 was 0.25 baht per share including interim dividend of 0.10 baht per share.
