MK reveals 2011 result with continuous growth

Q4/2010 revenue surges 155.55 % with gross profit margin of 41.10 %, contributing to gross profit for the year 2010 of Bt 1,049.95 million with 40 % gross profit margin.  MK's financial position has been continually strengthened, reflected with debt to equity (D/E) ratio maintained at 0.30 times.

Mr.Chuan Tangmatitham, President of M.K. Real Estate Development Public Company Limited (M.K.), "Chuan Chuen" and "Serene House" project developer, revealed that the company has realized Bt 850.30 million revenue from sales and services in Q4/2010, 155.55% increased QOQ.  Annual sales & service revenue stood at Bt. 2,626.75 million, an increase of 5.19%. It is another year of continuous  growth in revenue for the company despite several tumultuous economic factors during the past year.  Main projects contributing to sales revenue were Chuan Chuen Modus Centro, Chuan Chuen Modus Charan-Pinklao, Chuan Chuen Modus Chaengwattana and Chuan Chuen Petkasem. 

In Q4/2009, MK has earned Bt 349.48 million in gross profit and 41.10%  gross profit margin, growing as much as 170.79% from Bt 129.06 million of Q3/2010 of which gross profit margin was 38.79%. Main contributing factor was that major projects recognized were of high profit margin. Gross profit for  the year 2010 was Bt 1,049.95 million with 39.97% gross profit margin, in line with normal range of the company's gross profit margin at 40%.

Selling expenses increased by Bt 64.18 million from last year to Bt 129.28 million because the normal special business tax rate at 3.3% was applied since Q2/2010, coupled with increased sales promotional expenses. Furthermore, the Company has transferred the land and buildings of project club houses, booked as the company's fixed assets worth Bt 34.76 million, to two housing juristic persons. Said amount was accordingly recorded as administrative expenses. Hence, our SG&A to sales ratio rose to 14.80% from 10.86% of last year's.  After interest and income tax, MK's net income of 2010 stood at Bt 549.19 million, comparing to Bt 539.77 million of 2009.  Net Profit Margin was 20.19%, slightly dropped from 21.40% of 2009.  Earning Per Share was Bt 0.64. 

During 2010, MK has prematurely repaid loan under debt restructuring agreement, resulting in the company being exempted from paying Bt 57.81 million in accrued interest.  Said amount was accordingly recorded as gain in debt restructuring.

MK's financial position has been continually strengthened, reflected from debt to equity (D/E) ratio maintained at 0.30 times since the end of last year.  This reflected a strong financial status, in accordance with surplus in net operating cash flow of Bt 170.60 million even though the company has spent as high as Bt 936.54 million for land acquisition during the year.  Meanwhile, assets increased from Bt 5,986.96 million at the end of 2009 to Bt 6,442.80 million, as a result of new land acquisition for new project development.  Liabilities increased by Bt 121.32 million, from Bt 1,366.89 million to Bt 1,488.21 million; meanwhile, shareholders' equity increased by Bt 334.52 million from increasing profit.