SET-listed Platinum Group Plc (PLAT), a wholesale fashion mall developer, plans to diversify business to cover all commercial segments by adding retail and residential developments.
The expansion aims at growing revenue sustainably and not rely solely on wholesale and hotel businesses.
Platinum president Chanchai Phansopha said adding new businesses could help the company earn revenue from wider sources of income in the future.
The group now operates fashion wholesaler Platinum Fashion Mall and downtown night market "Talad Neon" on Phetchaburi Road.
It also manages Novotel Bangkok Platinum Pratunam at a nearby site.
To support the expansion into residential projects, the company is conducting a study of a land bank it could secure in the future and seeking a strategic partner in the real estate industry.
He expects the group will be able to start residential development projects within five years.
To expand into retail, the company last year started to build its first retail project, The Market Bangkok, located near Ratchadamri, within a budget of 5.8 billion baht.
The Market Bangkok's construction is 20-30% complete and it is expected to open late next year.
This retail project covers 195,000 square metres, and is expected to start contributing income for the firm from 2019 onward.
Apart from these projects, Platinum will also develop its own office building in the same area as The Market Bangkok.
The construction is set to begin in 2019, and completion will take 2-3 years. There will be a total rental space of 35,000 sq m.
Platinum reported 997 million baht revenue in the first half this year, with 371 million baht net profit, showing a 9% and 8% rise, respectively, from the same period of last year.
About 70% of revenue came from the rental fees of Platinum Fashion Mall and Talad Neon, 20% from hotels and the remaining 10% from food and beverage.
Furthermore, the revenue from the hotel business has increased largely due to strong increases in the number of Mice (meetings, incentives, conferences, and exhibitions) events.
Mr Chanchai said that if the office building and The Market Bangkok are completed, Platinum's total commercial space will increase sharply to 118,242 sq m by the year 2021, from 33,268 sq m at present.
He said that as Talad Neon has gained popularity among foreign tourists, the company will adjust zoning and merchandise mix, layout and extend the service from Wednesday-Sunday to every day from October on.
The Platinum Group's revenue is expected to reach 2 billion baht this year, up from 1.86 billion baht last year.
PLAT shares closed yesterday on the Stock Exchange of Thailand at 7.05 baht, up five satang, in trade worth 5.58 million baht.
