Record-breaking year for MK

Revenue from sales and services in Q4/2013 reported at Bt 739.57 million, up 58.41% YOY, boosting revenues for the year to Bt 2,759.71 million, a growth of 60.05%. Annual net profit increased to Bt 428.56 million, up 63.95%. Financially strong with net debt/equity (D/E) ratio as low as 0.25 times, with low debt burden and high cash liquidity.

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's revenue from sales and services in Q4/2013 was Bt 739.57 million, 58.41% increased YOY from Bt 466.86 million. Annual sales & service revenue stood at Bt. 2,759.71 million, soaring 60.05% from the previous year. Main projects contributing to sales revenue were Den Vibhavadi Condominium, Chuan Chuen Modus Centro, Chuan Chuen Petkasem and Chuan Chuen Charan3. 2013 was a record-breaking year for the Company in terms of revenues.

Gross profit for the year 2013 was Bt 949.28 million with 34.40% Gross Profit Margin, lower than last year's which was 37.97%. This was resulting from higher proportion of revenue from condominium and townhouses which yield lower gross profit margin than single houses, resulting in lower average gross profit margin. SG&A expenses increased from Bt 361.89 million of last year to Bt 430.80 million, mainly from special business taxes which varied by sales revenue. SG&A to sales ratio, however, dropped from 20.99% to 15.61% due to high revenue growth. The corporate income tax rate for the year 2013 was 20% according to the Government's policy to compensate for the rising labour cost. Still, income tax expenses increased from Bt 72.63 million to Bt 109.09 million according to higher earnings before tax.

After interest and income tax, MK's net income of Q4/2013 was Bt 116.32 million, rising 40.36% YOY. Net profit for the year 2013 stood at Bt 428.56 million, or Bt 0.50 per share, 63.95% increased from Bt 261.40 million of last year. Net Profit Margin was 15.32%, higher than 14.79% of 2012.

MK's assets decreased by Bt 592.22 million YOY, from Bt 7,374.84 million to Bt 6,782.62 million, owing to the delivery and revenue recognition of Den Vibhavadi Condominium in 2013. Accordingly, cash and cash equivalents increased from Bt 39.26 million at the end of 2012 to Bt 194.30 million at the end of 2013. Liabilities decreased by Bt 849.79million, from Bt 2,352.58 million to Bt 1,502.79 million, primarily from loan repayment. Short-term loans from financial institutions dropped from Bt 300.13 million to Bt 80.17 million as the Company had reduced the amount of its Bill of Exchange due to high cash liquidity. Shareholders' equity increased by Bt 257.57 million from last year. Therefore, Debt to Equity ratio decreased from 0.47 times at the end of 2012 to 0.28 times. At the same time, Net Debt to Equity ratio decreased from 0.46 times to 0.25 times. With very low D/E ratio coupled with interest-bearing debt as low as Bt 886.29 million and high cash liquidity, the Company is financially strong and ready to weather the economic storm under the current situation.