Pruksa Holding Public Company Limited or Pruksa announced its business plan for 2024, moving forward with the launch of 30 projects worth 29,000 million baht, ready to be more than a real estate developer through diversifying its business portfolio to include healthcare, e-commerce, precast and Build a residence Push the total income of all businesses to reach 28,000 million baht, growing approximately 7% from last year.
Pruksa accelerates growth through doing business in many dimensions.
Uthen Lohachitpitak Group Chief Executive Officer of Pruksa Holding Public Company Limited told him that in 2023 the company had total income from all businesses of 26,132 million baht, a decrease of 9%, net profit of 2,205 million baht, a growth of 8.4%, coming from the real estate business of 22,400 million baht, a decrease. 18% Healthcare business 1,800 million baht, an increase of 50%, and the rest is other income.
“If you dig into the real estate business, you will find that Demand for townhomes has decreased. Including no transfer of new condominiums. causing this income to decrease But the healthcare side grew through higher revenue from the Non-Covid group and the inclusion of revenue from Theptarin Hospital. The number of patients using the services of Wimut Hospital increased by 49% compared to 2022.”
To increase business opportunities, the Pruksa Group has created businesses that provide recurring income such as Omega Logistic Campus, Smart Warehouse business, and precast business. and residential construction business which the final business is preparing to become number 1 in that market
Uthen Lohachitpitak Group Chief Executive Officer, Pruksa Holding PCL.
Look at the real estate market heading towards the high price group.
At the same time, Pruksa Group is also preparing to restructure its business. From 2021, the company’s asset value is 72,000 million baht, 94% of which is related to the real estate business. In 2023, the asset value decreased to 69,000 million baht, but the real estate part decreased. The remaining 70% represents more diversification to other businesses.
“Right now the real estate market has changed a lot. For example, in 2019, the majority of what consumers would buy was at a price less than 3 million baht, up to 70%, followed by 3-7 million baht, 20%, and 10% above 7 million baht, but in 2024 It is expected that prices under 3 million baht will be at 40%, followed by 3-7 million baht and 7 million baht and above at the same ratio of 30%.”
If you drill into the condominium, you will find that The middle to upper level group experienced a slowdown. Including the entire market being affected by strictness from financial institutions. On the other hand, every real estate developer continues to launch high-priced detached houses. But there are still single houses still for sale. including the inability to transfer significantly
Targeting revenue in 2024 to reach 29,000 million baht
For 2024, Pruksa Group sets a revenue target of 29,000 million baht, growing approximately 7% from 2023 by reaching that target. The company is preparing to acquire 32 land plots with a total value of more than 10,000 million baht, as well as responding more to market needs by penetrating the middle to high-end real estate market.
Initially, Pruksa Group will launch a total of 30 new real estate projects, totaling 29,000 million, divided into 50% accessible price group and 50% middle to upper price group or more than 7 million baht, consisting of 17 townhomes, 10 detached houses and 3 condominiums.
“Condominiums in 2023 seem to be doing well. But in the end, we still couldn’t make it, so in 2024 we will focus mainly on single-detached house projects priced at 15-30 million baht, with a total project value of 13,200 million baht. As for condominiums, we still want to focus on the price group of 2-4 million baht first.”
The healthcare business is still doing well. and continues to grow this year
Dr. Phichit Kangwankit, Deputy Group Executive Officer of Pruksa Holding Public Company Limited and Acting Chief Executive Officer of Wimut Hospital Company Limited, told us that in 2024, the revenue target from the healthcare business is set at 2,300 million. baht after the overall picture began to include more treatments for Non-Covid diseases, including more foreign customers.
To reach that goal The group will rebrand Theptarin Hospital as “Wimut Theptarin Hospital” will be launched in April 2024. Wimut Hospital will increase its beds to 150 to accommodate more customers. and has also expanded to manage nursing home businesses in 5 locations
“In 2024, Pruksa Group wants to have a total income of 28,000 million baht, coming from businesses that generate continuous income of 9%, while the real estate business hopes to grow 14% and the healthcare business will grow 26% through an investment of over 14,000 million baht. 10,000 million baht comes from purchasing land. There is also an opportunity to make money by collaborating with the Origin group.”
refer // Pruksa
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2024-02-19 10:23:13
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