SPALI, ORI and AP Are Frontrunners to Benefit from New LTV Measure

SPALI, ORI and AP are expected to benefit the most from BOT's new measurement in lifting LTV limit to 100%.

Amid high uncertainty in the Thai economy suffered from prolonged Covid-19 crisis, the Bank of Thailand has issued a series of measures to relieve financial burden from those in need which, in the meantime, will help stimulate the economy.

On October 20, 2021, the Bank of Thailand (BOT), issued another housing loan measure which will give borrowers under 10 million baht a 100% Loan to Value (LTV) limit plus 10% more for decorations and 100% LTV limit to a house over 10 million baht from the current LTV range of 70-90%.

Activities in the property sector had a better outlook in 1H21 compared to 1H20 due to the new normal lifestyle and series of promotions from developers to boost sales as consumer behaviour is shifting to seek private quarters during the pandemic.


After the announcement of the new LTV measure from the BOT, Capital Nomura Securities (CNS) stated that the measure will most benefit developers with high backlog namely; Supalai Public Company Limited (SPALI), AP (Thailand) Public Company Limited (AP) and Origin Property Public Company Limited (ORI), giving a target price at Bt26.00, Bt10.50, and Bt13.70 per share, respectively.

According to the data compiled by “Kaohoon International,” as of 2Q21, SPALI recorded a backlog of 36,002 million baht. The company saw a rise in pre-sales by 8% YoY in the first half of the year to 13,005 million baht, mainly from low-rise projects. The company expected to achieve 27,000 million baht of pre-sales this year. SPALI recorded a net profit of 2,471 million baht for the 6M21 period, increased 111% YoY.

The share price of SPALI rose 5.88% to close at ฿21.60/share on October 21, 2021. The share price has increased 3.35% this year.


AP had 40,552 million baht of backlog at the end of the second quarter of 2021. The company recorded 17,817 million baht of pre-sales in 6M21, increased 18% YoY. In the first half of 2021, AP booked 2,517 million baht of net profit, representing an increase by 37% YoY.

The share price of AP rose 6.06% to close at ฿8.75/share on October 21, 2021. The share price has increased 14.38% this year.


ORI had 34,679 million baht of backlog at the end of the second quarter. The company reported 38% growth YoY in pre-sales in the first half of 2021 at 15,778 million baht. ORI expected to achieve 18,000 million baht of its pre-sales target by the end of this year. ORI recorded a net profit of 1,677 million baht in 1H21, increased 28% YoY.

The share price of ORI rose 7.48% to close at ฿11.50/share on October 21, 2021. The share price has increased 47.44% this year.


It might take a while to see the full extent of this LTV measure on property developers and 2022 might be the year as the measure will be effective throughout the year amid economic recovery from Covid-19, more foreign buyers from reopening and the foreign ownership measure.


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