Preuksa Real Estate posts strong earnings in 2Q 2009

Preuksa Real Estate reported 2Q09 earnings of Bt639mn, increasing 2% yoy and in line with our expectation. However, earnings were down 7% qoq given lower revenue as no large condominium transfers came through as in the previous quarter. Revenue declined 3% qoq to Bt3.64bn. Meanwhile, the gross margins remain strong at 36.1%, which is relatively flat from last quarter. The 1H09 earnings surged 42% to Bt1.33bn or Bt0.60/share driven by strong revenue growth.