SET-listed developer L.P.N. Development Plc aims to attain 10 billion baht in revenue and 1 billion baht in net profit every year from now until 2026 after revenue fell to 5.6 billion baht in 2021 -- the lowest level in 15 years.
Chief executive and managing director Opas Sripayak said the company would transform corporate, management, product development and its brand in order to meet demand and the changing behaviour of consumers, now younger generations represent the major market.
"We passed through the 1997 financial crisis, resumed to grow during certain periods and have been silent during the past five years with a limited number of new projects launched as we were too conservative," he said.
After reviewing its strategies last year, the company discovered that scale, one of its two core business models, did not work anymore as consumers do not prefer a large-scale project due to excessive density.
"We need to revise the scale of the projects if we want to move forward and grow," he said. "L.P.N is a trusted brand and our strength is affordable prices. These are two things we will continue to keep."
This year L.P.N. will launch 17 new residential projects worth a combined 14 billion baht, the largest in a decade.
They will comprise four condo projects worth 5 billion baht and 13 low-rise housing projects worth 9 billion baht.
It aims to have 13 billion baht in presales and 7.6 billion baht in revenue this year, up from 8.35 billion baht and 6.1 billion baht in 2022, respectively.
Last year, it recorded a consolidated revenue of 10.3 billion baht, up from 5.6 billion baht in 2021.
However, Its revenue dropped consecutively from 11.2 billion baht in 2018, 10 billion baht in 2019 and 7.4 billion baht in 2020. The lowest revenue was recorded in 2007 at 6.5 billion baht.
Net profit in 2022 improved to 612 million baht from 302 million baht in 2021 and the net profit margin to revenue rose to 5.9% from 5.4% -- also the lowest level in several years.
"Net profit margin last year was very low because we accelerated inventory clearance in the wake of uncertain situations such as the Russian-Ukraine war," he said. At present, it had unsold inventory worth a combined 7 billion baht.
"We aim to have a combined revenue of 50 billion baht in the five-year plan from 2022-2026 or 10 billion baht per year on average with a combined net profit of 5 billion baht," he added.
