MK Announces Q2/2011 Operating Results
Gaining net profit of Bt. 114.59 million, up 143.81% QOQ, equals to 0.13 baht per share. New land acquisition in accordance with an aggressive expansion plan. With half of 3 billion baht annual presales target already achieved, the second half will be geared by the launch of three new projects worth 1.72 billion baht. The company announced Bt. 0.10 per share interim dividend.
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 recognized Bt 639.45 million revenue from sales and services in Q2/2011, 57.62% increased QOQ from Bt 405.68 million and 21.15% increased YOY from Bt 527.81 million. Main projects contributing to sales revenue were Chuan Chuen Petkasem, Chuan Chuen Modus Centro and Chuan Chuen Modus Charan-Pinklao. Revenue from sales and services for six-month period was Bt. 1,045.13 million, dropping 27.61% YOY because the company had speeded up title deed transfer to customers towards the expiration of tax privileges in the first half of 2010, resulting in revenue being higher than usual in said period.
In Q2/2011, MK earned Bt 258.99 million in gross profit, rising 25.72% YOY from Bt 206.00 million and 60.42% QOQ from Bt 161.44 million. The company has maintained its strength in cost management; meanwhile, major projects being recognized in Q2/2011 were of high gross profit margin, resulting in 40.50% gross profit margin of Q2/2011, comparing to 39.03% YOY. SG&A expenses, including employee benefits under the new accounting policy, stood at Bt 98.47 million, slightly lower than Bt 99.59 million of the same period last year. Meanwhile, SG&A to sales ratio dropped to 15.40% from 18.87% YOY. After interest and income tax, MK's net income for Q2/2011 grew 143.81% QOQ and 45.11% YOY to Bt 114.59 million, yielding Bt 0.13 Earning Per Share. Net profit margin was 17.80%, increased from 11.41% in Q1/2011. For six-month period the company has recognized Bt 1,045.13 million revenue from sales and services. Gross profit was Bt 420.42 million, with 40.23% gross profit margin, higher than 39.58% of year 2010. Net income was Bt 161.59 million, yielding Bt 0.19 Earning Per Share, 41% dropped from last year. Net profit margin stood at 15.31%, decreased from 18.85% of the first half of 2010.
MK's assets increased by Bt 144.12 million from the end of 2010, due to new land plots purchasing for new projects. Meanwhile, liabilities increased by Bt 171.41 million from loans for new projects and expansion for the upcoming year. Therefore, Debt to Equity ratio increased from 0.30 times to 0.34 times. As a result of more land purchase, cash flow from operating activities was Bt (37.98) million in negative instead of being surplus as in the past. However, cash flow from investment activities was Bt 91.94 million in surplus because of the decrease in project utility guarantee. Cash flow from financing activities was only negative at Bt (72.94) million comparing to Bt (314.07) million last year as the company had less debt repayment burden.
MK's 20 on going projects already yielded 50% presales from the annual target so far. In the second half of the year, the company expect more presales from three new projects worth totally Bt 1,720 million in value.
In addition, the company's board of directors has approved a payment of 2011 interim dividend for the operating result from 1 January to 30 June 2011. The rate of dividend is 0.10 baht per share, payable on 9 September 2011. Record date will be 25 August 2011 and the closing of share registration book will be on 26 August 2011. Dividend payment for the year 2010 was 0.25 baht per share including interim dividend of 0.10 baht per share.
