MK aims for 20-25% growth with seven new developments
M.K. Real Estate Development Plc has plans for seven new projects worth 4.6 billion baht this year with a sales target of 20-25%, according to President Chuan Tangmatitham.
The company yesterday announced 38.92% year-on-year growth in sales to 2.83 billion baht in 2005 and 59.25% growth in net profit to 713.73 million baht.
Mr Chuan said that despite a sluggish economy last year, the company still did well due to good response to its residential offerings, which were mostly medium-priced units.
The company’s gross profit last year rose 31.14% to 919.16 million baht, representing a gross margin of 40.26% of a gross profit make up 31.14% from 2004.
It said selling and administrative expenses rose 19.41% or 56 million baht, due mainly to higher special business tax and transfer fees in line with higher revenue, higher marketing expenses related to higher pre-sales, and human resource expenses.
As well, it no longer had a tax shield and therefore is corporate income tax rose to 168.43 million baht last year, up significantly from 8.28 million baht in 2004.
MK added gains from debt restructuring into net profit from operating results of 459.15 million baht to reach 713.73 million baht or 0.82 baht per share.
The company’s debt-to-equity ratio at the end of 2005 was 0.57 times, declining from 0.87 in 2004 and 1.09 in 2003. Its total liabilities declined to 2.42 billion baht from 3.18 billion in 2004.
MK shares closed yesterday on the SET at 3.14 baht, down eight satang, in trade worth 50.2 million baht.