Mr. Peerapong Jaroon-ek, Chief Executive Officer of Origin Property Public Company Limited (ORI), through Kaohoon TV Live on March 12, 2021, revealed that the company will launch 20 projects this year, comprising 10 housing estate projects and 10 condominium projects at a total project value of 20 billion baht, compared to a total value of 13 billion baht in the previous year.
Mr. Jaroon-ek expected the company to set a new record high for sales revenue this year at 29 billion baht from an increase in project launching.
Amid gradual economic recovery, ORI expected a 25% growth this year, which will erase the decrease by 12% of net profit last year. Meanwhile, the company had a better performance than SET last year as the index was 25% down in 2020.
As for the BOT’s LTV measure that is expected to be eased in 2Q for second-home buyers from 80% borrowing limit to 90%, Mr. Jaroon-ek said that the lifting in 2Q is the perfect time for the company as ORI planned to increase the number of projects launching, continuing into the year. More importantly, the lifting in LTV measures will increase the demand of buyers as well.
As for the three new businesses; healthcare, logistic center and asset management company, the company has set an investment budget in the next 2-3 years for each new business at 400 million baht, approximately 12% to its CAPEX.
The company estimated an additional 10-15% of profit from these three businesses in the next 3-5 years, while the recurring income is expected to increase 15% as well.
KTB Securities (Thailand) (KTBST) recommended “BUY” ORI at a target price at ฿10.00/share on 7.9x PER 2021, while affirming ORI as the top pick in property sector, expecting normalized profit in 2021 to grow 29% at 3.2 billion baht and outperforms it peers. The outstanding point is a high sales and backlog this year, coupled with the new business that should add more value to ORI’s earnings, starting 2022 onwards.