Sansiri posts 3.5bn revenue in January on strong presales of detached houses

SET-listed property developer Sansiri (SIRI) posted 3.5 billion baht of sales in January driven by presales of low-rise properties, reaching more than two-thirds of its revenue target for the whole first quarter.

The company recorded 70 per cent of the 2021 first-quarter presales projection of 5 billion baht, said chief operating officer Uthai Uthaisangsuk on Tuesday. The revenue outlook for the whole of 2021 is 26 billion baht.

Presales of single detached houses accounted for 45 per cent of January sales while condominium sales were 40 per cent, Uthai added, helped by online viewings and virtual tours in line with Covid-19 restrictions.

However, an analyst at SCB securities maintained an ‘Underperform’ call on SIRI, with a target price of 0.63 baht per share, in views of its conservative 2021 business plan. As of 2.54 pm, SIRI traded at 0.84 baht per share, dropping 1.18 per cent, with a trading value of 10.4 million baht.

SIRI’s 2021 business plan is conservative with a focus on low-rise, cash-flow management and partnerships with small property developers, said Termporn Tantivivat. The developer’s sales outlook for 2021 is also below its 10-year average of 35 billion baht.

In terms of value, most launches will be the affordable price range, with 23 per cent mid-market and 2 per cent luxury. Sansiri has set a flat presales target year-on-year at 26 billion, 62 per cent low-rise and 38 per cent condominium.

“We see 2021’s business plan as slightly too conservative to pull SIRI back to growth,” said Termporn.

SCB forecasts 1.79 billion of SIRI earnings in 2020 full-year, down 25 per cent year-on-year, with 2020 fourth-quarter earnings at 708 million baht. For 2021, they expect 1.7 billion baht of earnings.

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