Noble Development Public Company Limited (SET: NOBLE) announces dividend payment for second-half of 2021 at 0.08 baht/share, totaling 0.43 baht/share for the year 2021 with dividend payout ratio at 63.2% and XD on 9 May 2022.
Its total revenue in 2021 stood at THB 7,430 million and net profit at THB 932 million due to impact from Covid-19 pandemic. However, total pre-sale for 2021 was THB 8,035 million from sale campaigns for inventory projects. The company announces its aggressive plan to launch 18 new projects in 2022 with combined value of THB 47,700 million. Currently, 5 new projects have been launched at the same time and generate pre-sale more than THB 4,000 million. In total, the first two-month pre-sale including inventories and projects in pipeline stands at THB 5,000 million. The company plans to acquire more assets in UK for the total of 550 units with total capital of GBP 100 million. The first 70 units will be acquired within Q1/2022.
Mr. Thongchai Busrapan, First Vice Chairman and Co-CEO of Noble Development Public Company Limited or NOBLE, the leader of residential development in prime locations of Greater Bangkok, reveals that the company’s board of directors has resolved the dividend payment for second-half 2021 performance at 0.08 baht/share, translating into the full year of 2021 at 0.43 baht/share with dividend yield approximately at 7%. The dividend payment will be proposed to the annual general shareholder’s meeting on 28 April 2022 for the approval with the record date on 10 May 2022, XD on 9 May 2022, and payment date on 26 May 2022.
For the 2021 performance, the company generated total revenue of THB 7,430 million, declining 32% from the last year, and net profit was THB 932 million, a 50% decrease from the last year. The company’s net profit margin dropped at the rate of 12.5 % with gross profit margin at 33.0% lower from last year due to sale campaigns for inventory projects and the overall property market was adversely impacted from the Covid-19 crisis. The pandemic affected the Thai economy, partially freezing economic activities due to more sentiment infection-control measures especially the country’s lockdown and the closure of construction camps. These negative factors have an effect to consumer purchasing power and the entire business sector as well.
“During April 2021, the government implemented a serious lockdown measures and closed construction camps, sending the negative sentiment toward property developers and consumers. This situation made an economic slowdown, dragging down consumer purchasing power, hence players in the property sector including NOBLE were forced to postpone the new projects launched and revised strategies to focus on gradually selling existing projects in the portfolios to reduce the inventory projects and financial risks. However, the entire property market began improving in Q4/2021 on the back of relaxing travel restrictions and stimulus property measures. This included the temporary easing of Bank of Thailand’s loan-to-value measure, which is now raising the loan approval to 100% of property value, up from 70-90% previously, giving a boost to the property business,”.
The pre-sales in 2021 was recorded at THB 8,035 million, rising over 20% from 2020 in which more than THB 5,700 million came from sale of inventory projects and THB 2,335 million came from new projects and project under construction. The portion of pre-sales can divide into 71% of local and 29% of overseas, which account overseas market share 52% of the total share condominium in Bangkok. Moreover, the company launched 3 new projects with a total value of THB 6,900 million in 2021, namely Noble Form Thonglor, Nue Noble Center Bangna, and Nue Connex House Don Mueang.
For the business direction in 2022, NOBLE still moves ahead business as it planned. This year, the company has set a pre-sale target at THB 28,000 million and revenue target at THB 11,000 million. Meanwhile, the company also preparing to launch 18 new projects with a total project value of THB 47,700 million in which some projects have been postponed from 2021. The company has targeted to expand its portfolio in housing and low-rise condominium so as to diversify risks and expand its products across every area of Bangkok such as Ratchapruek area, Ekkamai area, Bangna area and Krungthep Kreetha area, and so on.
Moreover, in the early 2022, “NOBLE” launched 5 projects at the same time including Nue District R9, Nue Mega Plus Bangna, and Nue Z-Square Suan Luang Station which are all close to department stores. The other 2 projects are Nue Evo Ari and Nue Connex Condo Don Mueang. All projects have gained good feedbacks from customers, reflecting from pre-sale of first 2 months for 5 projects worth more than THB 4,000 mm, and pre-sale from all projects worth more than THB 5,000 mm. Meanwhile, the company also plans to gradually launch more new projects.
Regarding the 2022 investment plan in UK, the company still plans to expand its investment by acquiring more assets continuously. However, the strategy will be changed from purchasing the entire building into purchasing assets as bulk units or bulk deal due to less competition than buying the entire premise. In 2022, the company targets to acquire assets of 550 units in the UK with the total capital of GBP 100 million (Noble will invest 45% based on its respective shareholding 45%). The first 70 units will be acquired within Q1/2022. However, based on NOBLE’s business strengths having network abroad, including strong overseas customers base, with clear overseas expansion strategy, there are still significant business and investment opportunities for the company in the future.
