MK Continued housing growth in Q2/14
Q2/14 Revenue recognition at Bt 508.36 million was 20.55% higher QOQ but 26.95% lower YOY due to lack of condominium revenue this year. Gross Profit Margin rose to 39.01% from higher margin of housing comparing to condominium. Net profit soared 75.63% compared to previous quarter. Announced interim dividend of Baht 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 Bt508.36 million revenue from sales and services in Q2/2014, 20.55 % growth QOQ but 26.95% decreased YOY as there is no revenue from condominium, unlike last year. Main projects contributing to sales revenue were Private Park, Chuan Chuen Charan3 and Chuan Chuen Modus Vibhavadi. Revenue from sales and services for six-month period was Bt. 930.06 million, 27.50% lower YOY from Bt 1,282.88 million. However, excluding revenue from condominium, the Company's revenue was 27.38% higher than the previous year’s.
In Q2/2014, MK earned Bt 198.32 million in gross profit, 18.53% decreased YOY from Bt 243.43 million but 22.26% increased QOQ from Bt 162.22 million. With higher gross profit margin from low-rise housing, gross profit margin of this quarter stood at 39.01%, higher than 34.98% of the same period last year which had a mix from condominium. Also, it was slightly higher than 38.47% GPM of Q1/2014. SG&A expenses of this quarter was Bt 100.90 million, 3.84% decreased YOY from Bt 104.93 million and on a par with 101.63 million of the previous quarter. SG&A to sales ratio rose from 15.08% in Q2/2013 to 19.85% due to lower revenue. After interest and income tax, MK’s net income was Bt 78.64 million, equaling Bt 0.09 per share, 75.63% increased QOQ from Bt 44.78 million and 30.89% decreased YOY from Bt 113.78 million. Net profit margin of Q2/2014 was 15.32%, slightly lower than the same quarter of last year which was 16.16% but higher than Q1/2014 which was 10.55%.
For six-month period, MK earned Bt 123.42 million in gross profit, with 38.77% gross profit margin, higher than 34.14% of mid-year 2013 due to the aforementioned condominium factor. SG&A expenses decreased 4.22%, from Bt 211.46 million to Bt 202.53 million. SG&A to sales ratio ascended from 16.48% in the first half of 2013 to 21.78% this year. Net income was Bt123.42 million, yielding Bt 0.14 Earning Per Share, 32.90% lower YOY from Bt 183.92 million. Net profit margin stood at 13.16%, lower than 14.17% of the same period last year.
MK’s financial position has been continually strengthened, evidenced by a low debt to equity (D/E) ratio of 0.32 times, slightly increased from 0.28 times at the end of last year. MK’s assets increased by Bt125.36 million from the end of 2013, mostly from value of projects under development. Liabilities increased by Bt174.11 million from long-term loans for project development. As a result of land acquisition for new project development, cash flow from operating activities was Bt (52.01) million in negative. Additionally, Bt 172.33 million was paid as dividend during this quarter. Hence, cash flow from financing activities was Bt(19.18) million in negative comparing to Bt (512.97) million in H1/2013.
In addition, the company’s board of directors has approved a payment of 2014 interim dividend for the operating result from 1 January to 30 June 2014. The rate of dividend is 0.10 baht per share, payable on 12 September 2014. Record date will be 28 August 2014 and the closing of share registration book will be on 29 August 2014. Dividend payment for the year 2013 was 0.30 baht per share including interim dividend of 0.10 baht per share.
