The share price of SIRI dropped ฿0.10/share or 7.35% to ฿1.26/share as of 15:20 local time in Thailand on May 19, 2021, after a gain of 38.7% in a 3-day rally.
Sansiri Public Company Limited (SIRI) has gained 38.7% in the past three days after reporting a satisfying 1Q21 earnings. However, the red-hot property developer showed a sign of finally slowing down in yesterday’s session after a huge gain at the open as much as 9.6%, but closed only 0.74% higher.
The fall could be due to a high speculation in the last few days as traders decided to sell the rips. In the meantime, some investors were worried of SIRI’s gross profit for the upcoming quarters due to various promotions introduced in the past few months that could result in a lower figure of gross profit.
In the financial statement of SIRI, the company stated that in 1Q21, cost of project sales amounted to 4,240 million baht, a 4 percent decrease from that of 1Q 20. Gross profit margin of project sales significantly increased from 17.9 percent in 1Q20 to 29.8 percent in 1Q21, which was the result of sales activities and sales promotion in 1Q20 to stimulate sales and transfer of ready-to-move units in order to release the inventory during the economy crisis from COVID-19 pandemic, resulting in a tremendous decrease in gross profit before gradually improving over time.