Chewathai to Build Low-Rises with S#Pore Partner, Expects THB 949m Revenue in 2016/17 from Backlog

Stocks and Financial Services Press Releases Tuesday April 5, 2016 11:45
Bangkok--5 Apr--MT Multimedia

Chewathai, Thailand's leading developer of residential properties and ready-built factories for rent, will have its first MAI trading day on 5 April. It is confident that its strong fundamentals will attract high investor interest, and that its partnership with a top Singapore construction and real estate firm will lead its way to become an outstanding player in Asean's property development market. To achieve stable income, it plans to build residential low-rises in addition to condominiums and ready-built factories, expecting to launch three new projects worth THB 2.322 billion. As of 31 December, its condominium backlog reached THB 949 million, which will be translated into revenue in 2016 and 2017.

Mr Chartchai Panichewa, President, Chewathai Plc (MAI: CHEWA), revealed that the company's first trading day on the Market for Alternative Investment (MAI) will be 5 April, after the successful initial public offering (IPO) of its 262 million shares of stock at THB 1.60 each (par value at THB 1 each) between 30 and 31 March. He expressed confidence that the shares will attract healthy interests from the investors.

Chewathai specialises in development of condominium projects in key districts with convenient transportation in Greater Bangkok, especially along the main roads and current and future rail routes. It also looks keenly for opportunities to build projects in major provincial cities and tourist sites. In addition, it builds ready-built factories for rent in major industrial estates, especially those in the Eastern Seaboard and BOI investment promotion zones.

TEE Development Pte Ltd, a subsidiary of the SGX-listed TEE Land Ltd, is Chewathai's strategic partner, having expertise in construction technology and real estate marketing. The partner will help enhance Chewathai's strengths and elevate its status to one of a well-established player in the Asean property development market.

"We are confident of our business fundamentals and potential. We also stand to benefit greatly from our Singapore partnership, which will enhance our competitiveness in property development. We seek to add low-rises to our product portfolio as a way to ensure steady and stable income," he said.

Mr Boon Choon Kiat, Chewathai's Managing Director, stated that, as of 31 December 2015, the company had a total of eight ongoing and completed residential and factory projects, seven of which were condominiums, worth THB 6.870 billion in aggregate, including, for example, Chewathai Ratchaprarop (325 units / 99% sold), Hallmark Ngamwongwan (792 units / 53% sold), Chewathai Interchange (279 units / 82% sold / situated close to the Taopoon MRT Station) and Chewathai Residence Bang Pho (during construction / 172 units / 20% sold / THB 120,000 per sq.m. on average / project value at THB 1.040 billion / only a 100m distance from the Bang Pho Blue Line MRT Station), and one of which was a ten-unit ready-built factory project (situated on a 26-rai plot in Amata City industrial estate, Rayong / total leasable space at 17,120sq.m. / 40% leased / project value at THB 300 million).

Chewathai is going to penetrate the residential low-rise market by introducing three new projects valued THB 2.322 billion in total: Chewarom Residence (81 units of single homes and duplexes on a 15-rai plot on Soi Rangsit-Nakhon Nayok 7 (Rangsit Khlong 1), priced on average at THB 5.15 million per unit / project value at THB 488 million / expected to begin construction in Q2/2016); Chewathai Phetkasem 27 (a THB 1.659 billion condominium project currently in the design phase, 480m from the Bang Wa BTS skytrain station, expected to have up to 31 floors and 560 units on a four-rai plot, to be priced on average at THB 75,000 per sq.m. and to enter the construction phase in 2016); and the second ready-built factory project (four units on a 13-rai plot in Amata City industrial estate, Rayong, with total leasable space of 9,100 sq.m. worth about THB 175 million in aggregate, expected to enter the construction phase in Q3/2016).

Mr Rathachai Teratanavat, Managing Director, RHB Securities (Thailand) PCL, as Financial Advisor and a co-lead underwriter, noted that the Chewathai stock offers strong fundamentals and great growth prospects, due to the company's policy to diversify its property development products into residential low-rises and expertise in location selection and development of residential properties that meet consumer demands.

In 2015, Chewathai recorded a total revenue of THB 1.42994 billion, up 217.8% from THB 449.81 million in 2014, and a net profit of THB 83.22 million, up 92.59% from THB 43.21 million in 2014. The outstanding growth rates were attributed to increased sales revenue and transfer completions. The backlog as of 31 December 2015 stood at 321 units, worth a total of THB 949 million, and will be converted into revenue in 2016 and 2017.

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