MK's Q2/12 Operating Results
Recuperating from last year's flood, revenues grew 33.11% QOQ while gross profit rose 33.87%. Sales backlog at the end of Q2/12 was Bt 1,430 million. To pay interim dividend at Bt 0.10 per share.
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 497.48 million revenue from sales and services in Q2/2012, 22.20% decreased YOY from Bt 639.45 million but rose 33.11% QOQ from Bt 373.74 million, reflecting the gradual recovery of the real estate business after the massive flooding at the end of 2011. Main projects contributing to sales revenue were Chuan Chuen Petkasem, Private Park and Belle Park, Chuan Chuen City. Revenue from sales and services for six-month period was Bt. 871.22 million, 16.64% decreased YOY from Bt 1,045.13 million. Sales backlog at the end of Q2/2012 was approximately Bt 1,430 million, 42% of which is housing while the rest is condominium.
In Q2/2012, MK earned Bt 199.38 million in gross profit, 23.02% decreased YOY from Bt 258.99 million but 33.87% increased QOQ from Bt 148.93 million. Meanwhile, the company has maintained its strength in cost management, resulting in 40.08% gross profit margin of Q2/2012, comparable to 39.85% of the previous quarter. SG&A expenses stood at Bt 86.59 million, 12.06% decreased YOY from Bt 98.47 million. Comparing to the previous quarter, SG&A expenses still decreased by 7.75% from 93.87 million, even though special business tax of this quarter was higher in line with higher revenue, as there was no employee bonus payment in this quarter. After interest and income tax, MK's net income was Bt 85.62 million, equaling Bt 0.10 per share, 87.77% increased QOQ from Bt 45.60 million but 25.28% decreased YOY from Bt 114.59 million. Net profit margin of Q2/2012 was 17.03%, comparable to the same quarter of last year which was 17.80% and higher than Q1/2012 which was 11.99%.
For six-month period MK earned Bt 348.31 million in gross profit, with 39.97% gross profit margin, comparable to 40.23% of mid-year 2011. SG&A expenses dropped 9.24%, from Bt 198.83 million to Bt 180.46 million. Net income was Bt 131.22 million, yielding Bt 0.15 Earning Per Share, 18.80% decreased YOY from Bt 161.59 million. Net profit margin stood at 14.86%, slightly decreased from 15.31% of the first half of 2011.
MK's assets increased by Bt 337.18 million from the end of 2011, due to project development and land plots purchasing for new projects. Meanwhile, liabilities increased by Bt 274.74 million from loans for new projects and expansion for the upcoming year. Additionally, Bt 68.82 million was paid as dividend during this quarter. Therefore, Debt to Equity ratio increased from 0.38 times to 0.43 times. As a result of more land purchase, cash flow from operating activities was Bt (159.08) million in negative. Cash flow from investment activities was Bt 14.03 million and cash flow from financing activities was Bt 167.61 million comparing to Bt (72.94) million in 2011, according to higher borrowings.
In addition, the company's board of directors has approved a payment of 2012 interim dividend for the operating result from 1 January to 30 June 2012. The rate of dividend is 0.10 baht per share, payable on 12 September 2012. Record date will be 28 August 2012 and the closing of share registration book will be on 29 August 2012. Dividend payment for the year 2011 was 0.18 baht per share including interim dividend of 0.10 baht per share.
