First-quarter net profits are expected to jump 50 per cent year on year to Bt408 million thanks to condo transfers that boosted realised revenue by 69 per cent. LPN’s Bt14.7 billion backlog should ensure a revenue stream this year and next, DBS Vickers added. A bulk of the inventory is priced below Bt3 million. “LPN remains a top pick in the residential property sector, for its strong management team, clear earnings visibility, solid balance sheet, attractive valuation and generous dividend yield,” it said.
CIMB Securities (Thailand) also favoured LPN for its solid backlog, improving gross margins, effective cost/expense control and strong balance sheet with low debt. It expected the first-quarter results to increase 48 per cent from the same period last year, with gross margin at 34 per cent.
“Even though first-quarter net profit is likely to make up only 19 per cent of our fiscal 2011 estimate, we maintain our earnings forecasts as we anticipate a significant pick-up in growth momentum in the second and third quarter on the back of more higher-margin project transfers,” CIMB said.
Thanks to a bulk of units priced under Bt3 million, aside from LPN, Supalai and Pruksa Real Estate are also expected to reap benefits from the government’s scheme.
Source: The Nation