PSH: Turning Point

PSH: Turning Point

The Covid-19 outbreak has devastated economies all over the world and is already affecting consumer spending, leading to a decrease in purchasing power. The real estate market is one of sectors that is expected to be affected severely by the pandemic. What a gloomy year for developers… 

But Pruksa Holding Public Company Limited (PSH) apparently is even worse than other developers as the firm is now facing an economic crisis coupled with the brain drain phenomenon…after several board of directors gradually resigned.

In early April, Mr.Prasert Taedullayasatit, a former right-hand man of PSH founder Mr.Thongma Vijitpongpun, has resigned from his position as the Board of Directors after working in the company for more than 15 years and moved to Ananda Development Public Company Limited (ANAN) insteadly. 

Five months later Mr.Thongma is likely to lose his left-hand woman too after rumor has it Mrs.Supattra Paopiamsap, a current Director of PSH, has a tendency to leave the company.  

Mrs.Supattra joined PSH 3 years ago, prior to this she had worked at Unilever for 22 years and her last position was Chief Executive Officer of Unilever Thailand…“Supattra” is such an expert in the marketing field. 

But if Supattra decides to say good bye to PSH amid the crisis, what will be Thongma’s next move…this crisis isn’t only an oversupply crisis but it’s also about demand challenging.   

The 2Q20 operating result fell dramatically, net profit slumped 55.3% to 417 million baht from 933 million baht a year ago, while the profit for the first of 2020 was 1,339 million baht, dropping 48.9% from 2,618 million baht in 1H19…reflects a difficult situation of PSH.   

So…it’s time for Mr.Thongma to solve the problem ASAP!