Mitihoon – 19th February 2024- In the year 2023, Pruksa Holding recorded a net profit of 2,205 million baht with a revenue of 26,132 million baht. The healthcare business grew in all dimensions with a revenue growth of 50%. The number of Non-COVID patients at ViMUT Hospital increased by 49% compared to the previous year. In the year 2024, the company aims to expand its business and increase recurring income, targeting a total revenue of 28,000 million baht. Planning to launch 30 projects worth 29,000 million baht, the Company expects that the revenue from the precast business will grow by 50%, adopting the “Ready To Thrive” strategy to sustain growth by integrating cooperation from various products and services across all platforms, including real estate development, healthcare, e-commerce, precast business, and the new subsidiary – InnoHome Construction, focusing on residential construction. The goal is to promote a comprehensive “Live well Stay well” lifestyle.
Mr. Uten Lohachitpitaks, Group CEO of Pruksa Holding Plc, revealed the operating results for the year 2023, stating that Pruksa Holding had revenue of 26,132 million baht and a net profit of 2,205 million baht. In the past year, the real estate group introduced a new brand of product called “Green House” to respond to changing purchasing power. By utilizing new construction design technologies, customers can now finance through banks to meet current economic demands. For this year’s direction, the Company aims to increase the proportion of products in the mid-to-high segment by more than 50%. It is expected that from the year 2019, where the proportion of products in the segment priced below 3 million baht was around 70%, this year the proportion will drop to 40% to better align with the current economic conditions. Over the past year, the group has also made structural changes as well as adjustments to several business models. Health services from the ViMUT Group, for example, have been integrated with Smart Home technology from the MyHuas application and applied to project design. To strengthen the core business, four business have been defined:
- Healthcare Business – Covering health services ranging from ViMUT Hospital and Theptarin Hospital. There have been collaborations and new investments, such as investment in 25% of shares in K.P.N. Senior Hospital Group, in order to expand nursing home services with a targeted 600 additional beds within 3 years. The group also has plans to invest 3.5 billion baht to expand specialized hospitals along Sukhumvit Road, adding 150 beds at ViMUT Hospital, and grow to a target of 2.3 billion baht in the year 2024.
- E-commerce Business – Under the operation of Synergy Growth Company Limited, a subsidiary of Pruksa, aims to grow 5 times by the year 2024 and hopes to generate revenue of over 1,000 million baht within 3 years. New products and services will be introduced to support the lifestyle of the new generation. The MyHaus application platform was developed to serve as a central hub for both home security and convenience for both homeowners and housing juristic persons. With IoT (Security & Smart Home) systems, electronic devices can be controlled and monitored using a single app. The platform includes Visitor Management, Facility Booking for various amenities in the project, Repair Management for efficient scheduling of repair services by corporate offices, and a community system for residents to communicate. It is fully prepared to provide services to customers from the real estate group of Pruksa. Finally, the e-commerce platform Clickzy.com, caters to the lifestyle of new generation shoppers, offering home-related products, interior decoration services from Zdecor, and health care products online.
- New Business Unit Group – Established to support growth and create additional revenue opportunities, such as the Precast business, stemming from successful stock swap, in collaboration with General Engineering and Development Company Limited (GEL) to invest in ordinary shares of “Inno Precast”, increasing opportunities to sell low-carbon precast panels. Backlog orders from Pruksa and other customers have increased, surpassing the target of 4,500 million baht, making it the largest leader in Thailand. The revenue target is set to grow by 50% to 3,500 million baht in the year 2024. The group has also separated the Construction business unit for residential buildings into a new company called “Inno Home Construction”, a major organizational restructuring aimed at improving efficiency and supporting opportunities for growth and revenue generation from construction projects. The revenue target for the year 2024 is set at 5,600 million baht from Pruksa and other customer groups, aiming to become the largest horizontal housing construction company in Thailand.
- Investment to support business chain expansion – Expanding investments in Logistics real estate and Healthcare-focused real estate, with announcements of partnerships with two leading organizations from Singapore and Taiwan to establish the “CapitaLand SEA Logistics Fund” with a target asset value of 25,000 million baht to develop innovations in warehouse management and distribution to provide comprehensive services across all countries in Southeast Asia. Additionally, the CapitalLand Wellness Fund (C-Well) was established with a target asset value of 72,500 million baht to increase opportunities for investment in health-focused real estate.
With the business model adjustments and organizational restructuring in the past year, we believe Pruksa Holding, along with all companies under its umbrella, is ready, operationally and financially, in 2024 to move forward towards further growth as per the Ready To Thrive strategy. The benefits gained from the restructuring of the organization this time include: (1) Scale benefits in procurement, delivery and fulfilment to unlock value in our project (2) Increase cross-selling opportunities to enhance scope for customer’s lifetime value (3) Leverage scale of platform’s benefit to drive additional income towards 25% recurring income target, by integrating benefits from all platforms. The group aims to create a living environment where people “Live well Stay well”. In 2024, the group’s total revenue target is set at 28,000 million baht, with new projects worth around 29,000 million baht.
While Pruksa’s financial status remains solid, with a low Net Gearing Ratio of 0.27, following the performance in the past year, the company’s board has approved a proposal to offer a dividend payment of 65 satang per share, totaling 96 satang including interim dividends. The Record Date for shareholders entitled to receive dividends is set for March 1st. The proposal will be presented for approval at the Annual Shareholders’ Meeting on April 26, 2024. The investment return rate is set at 7.5%, and the dividend payment is scheduled for May 24th.
In the real estate business, Mr. Piya Prayong, CEO of Pruksa Real Estate Plc, revealed that in 2023, Pruksa generated revenue from real estate of around 22,357 million baht, with sales totaling 18,540 million baht. Pruksa Real Estate launched 13 new projects with a total value of 14,200 million baht. For the year 2024, the company set a sales target of 27,000 million baht and a transfer target of 25,500 million baht. Plans include launching 30 new projects, including 10 single-house projects, 17 townhouse projects, and 3 condominium projects, with a total value of around 29,000 million baht. Additionally, there are residential properties ready for occupancy that will be converted into income-generating assets, totaling over 10,000 million baht. The aim is to strengthen the portfolio by adding products for the mid-to-high segment customers, enhancing The Palm brand’s value proposition and increasing the price range to over 30 million baht, and collaborating with the healthcare business within the group for a more comprehensive approach, alongside efficient asset management. In 2024, the goal is to re-stock Landbank with a budget of 10,500 million baht to continue focused on housing development in order to maintain the proportion of development according to customer groups with house prices less than 3 million baht, not over 40% and priced over 7 million baht should be over 30%.
Regarding residential projects set to launch in 2024, the focus will remain on developing residences under the concept of “Live well Stay well” by leveraging Pruksa’s healthcare and e-commerce businesses to create a quality living environment. Emphasis will be placed on environmental consciousness, selecting energy-saving materials and equipment such as solar cells, developing homes with designs promoting good health and energy efficiency (Healthy living homes & Passive design homes) for easy maintenance and suitable for people of all ages (Universal design), aiming to reduce residents’ expenses while supporting the lifestyle of the new generation, and enhancing convenience, by utilizing the MyHuas platform, a Smart Home technology that allows home management at fingertips as well as providing healthcare services from partner hospitals within the Pruksa group.
As for the healthcare business, Pichit Kangwolkij, M.D. Deputy Group CEO of Pruksa Holding Public Company Limited, and Acting CEO of ViMUT Hospital Company Limited, disclosed the performance results for the year 2023. He stated that the ViMUT Group has experienced growth in all dimensions, with total revenue of 1,820 million baht, representing a 50% growth from the previous year. The number of Non-COVID patients utilizing services at ViMUT Hospital increased by 49% in the past year. ViMUT Hospital has successfully launched an Endoscopy & GI Motility Unit, which has been instrumental in providing effective and focused care for patients with complex and challenging conditions. The introduction of programs such as LASIK and Gut Microbiome Test, in collaboration with AMILI, a leading HealthTech company from Singapore, aims to provide targeted diagnostics and treatments for patients. These programs assist physicians in recommending personalized microbiome balancing effectively, as treating microbial balance in the gut is another way to boost immunity and prevent diseases, promoting long-term physical and mental well-being.
Furthermore, ViMUT Hospital continues to expand its collaboration with Ramathibodi Hospital, providing additional options and access to 17 health packages, such as surgeries for the gallbladder, uterus, breasts, ovarian cysts, hernia repair, colorectal surgery, knee replacement, and tumor or skin removal. Additionally, there has been an expansion of services to international patients, particularly those from countries in the Southeast Asian region. For the year 2024, ViMUT Group aims for a revenue target of 2,300 million baht and plans to rebrand Theptarin Hospital as “Vimut Theptarin Hospital,” with the unveiling scheduled for April. Furthermore, in collaboration with K.P.N. Senior Hospital Group, which specializes in elderly care and provides holistic solutions for elderly care, ViMUT Group plans to manage nursing homes in the Bangna, Bearing, and Watcharapol areas, totaling 240 beds. There are also opportunities to manage an additional 5 nursing homes. The goal is to expand the total number of beds served to 600 beds within 3 years, while continuing the construction of a new ViMUT Hospital in Sukhumvit area as well as in Thonburi.
“For the upcoming initiatives, Pruksa remains committed to sustainability, emphasizing social care and environmental stewardship. In the year 2023, the group reduced carbon dioxide emissions by 10,000 tons through the installation of solar panels, designing energy-efficient homes (Passive Homes), utilizing Smart Home technology, participating in reforestation projects to restore the ecosystem, using precast concrete with hollow core to reduce cement usage, and implementing green technology such as “CarbonCure” as well as pursuing the original goal to reduce greenhouse gas emissions by 30% by the year 2030 and achieve carbon neutrality by 2050. In 2023, the group has implemented Smart Offices and Smart Hospitals which minimized energy usage. Most recently, ViMUT Hospital received the MEA Energy Award from the Metropolitan Electricity Authority (MEA) for its efforts in promoting energy efficiency in buildings”, Mr. Lohachitpitaks added.
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