L.P.N. moves forward in creating balance in portfolio management. Both investing and developing residential projects and create new business To achieve sustainable growth of the organization this year, under the leadership of "Apichart Kasemkulsiri", the new CEO.
Mr. Apichart Kasemkulsiri, Chief Executive Officer of L.P.N. Development Public Company Limited, revealed that the company's management guidelines after assuming the position on February 1, 2024, said that L.P.N. .P.N. is a real estate business group that conducts a complete business. (Self-fulfillment) In addition to developing residential projects, both condominiums and houses, L.P.N. also has affiliate companies that conduct related businesses. and generate income for the company Both project management companies such as LPP Property Management Company Limited (LPP), engineering services companies such as LPS Project Management Company Limited. (LPS) and security companies such as LSS Security Solutions Company Limited (LSS), etc. Each company has continued to expand in the past.
“As CEO, I have a duty to look forward to other businesses. In addition to the real estate business that we have expertise To find new businesses that will generate returns in the medium term. and long-term for shareholders, apart from the main business which is real estate business. This is an important strategy for creating a balance for business growth (Rebalance for Sustainable Growth) in the long term by working harmoniously in all business sectors. (Harmonization),” Mr. Apichart said.
Under the said strategy, the company has guidelines for creating balance in 3 dimensions in order to create business growth simultaneously in every dimension (Stronger Together), including 1) Rebalance Portfolio, creating balance in developing the real estate business. I'm looking for it. Both in terms of project development, service work, and research and development. Leverage the strengths of each business unit to strengthen and drive the organization together. The guidelines for working in the first year of assuming the position are: Developing strengths as an expert in developing quality housing under the concept of "Liveable" (5C) to be even stronger. Including improving and fulfilling the limitations of L.P.N. To increase competitiveness in the market, the main thing is to balance the portfolio by increasing income and reducing expenses. Currently, the company has products sold and waiting to be transferred (Backlog) at 2,300 million baht. The company has Plan to increase sales by using a price strategy (Price Strategy) and increasing appropriate rates of return (Incentive) for the agency. including sales network of the company to stimulate sales The goal is to sell the remaining products at not less than 4,500 - 5,000 million baht, an increase from the 4,000 million baht sold in 2023. The company targets sales in 2024 at 11,000 million baht, an increase of 10%. Compared to sales of 10,000 million baht at the end of 2023.
2) Rebalance Resource: Creating balance by allocating existing resources. and create value for the organization by bringing in the expertise of each department Come support the administration and management of L.P.N. to be more consistent To develop potential and increase work efficiency It is a guideline for long-term organizational development. Currently, L.P.N. has several growing subsidiaries. which work together to support each other from the beginning of product development to complete after-sales service, or what can be called an LPN Completed Ecosystem, including LWS Wisdom and Solution Company Limited (LWS), responsible for research Study of areas for developing products and services for companies/affiliated companies. Including other external companies. In addition, we provide consulting and research services in the areas of GREEN or Sustainable Development and BIM (Building Information Modeling).
LPS Project Management Company Limited (LPS) is responsible for engineering services. and real estate consulting services Covers construction control Focusing on delivering product value to customers, LPP Property Management Company Limited (LPP) is responsible for complete after-sales service. Both condominiums and houses Covers from 1) community administration work With the goal of maintaining the value of the project 2) Management of residential buildings, offices, commercial buildings / common property management, system planning - condominium management 3) Responsible for managing residential condominium assets that buyers (investors) Want to find tenants and buyers. In addition, we also carry out screening of tenants for safety in the community.
LPC Social Enterprise Company Limited (LPC) is responsible for comprehensive community services. Mainly providing cleaning services. Both in projects at L.P.N. Developed and other projects outside LSS Security Solutions Co., Ltd. (LSS), which specializes in integrated security. both from qualified and professional personnel Electronic systems and system work By providing safety standards and offer services according to the level of customer needs (Service Level Agreement or SLA), etc., and also covers cleaning services. This expands the customer base to customers in other types of commercial buildings such as hospitals, hotels, department stores, etc.
3) Rebalance Stakeholders' Wealth under management guidelines to balance the first two dimensions. It will lead to creating a balance in providing good returns to all stakeholders, including
Investors, shareholders, employees and business partners to receive appropriate returns. In addition, we also see opportunities for growth by bringing in affiliated companies that have good operating results. Listed on the Market for Alternative Investment (MAI), especially LPP Property Management Company Limited (LPP), which is a leader in the community management business. and building resources. Currently, it has managed over 260 community projects in the Bangkok-metropolitan area. and other provinces Covering a population of more than 300,000 people, it is a business that has a tendency to continuously grow. According to the plan, it is expected that LPP will be listed on the Market for Alternative Investment (MAI) within this year, depending on the situation of the capital market. and other environmental factors during the offering period again
It is expected that the listing of L.P.P. on the Market for Alternative Investment (MAI) will separate the service business from the real estate business that will help L.P.N. realize the true value of the service business. that is currently included in profits More than 40 percent of L.P.N.'s operations and also promotes sustainable growth strategies. In 2023, L.P.P. has revenue of approximately 1,560 million baht and net profit of approximately 139 million baht, which is equivalent to Revenue growth rate of over 80 percent and net profit growth of over 23 percent within 3 years makes the listing On the MAI Stock Exchange this time, LPP has plans to invest in partner companies. To expand engineering and real estate consulting services To continue being a leader in the community and building resource management business by developing an application system to support resident services. and connect with partners who provide services related to life 24 hours a day, and this opens up new business opportunities that strengthen L.P.N. Can make better profits and create income balance for the organization Because in the past 5 years, the operating results of L.P.N. It is in a recession from before. To make a profit of 1,256 million baht in 2019, it will reach a level of 353 million baht in 2023. At the same time, L.P.N. plans to bring affiliated companies that have good operating results raise funds in MAI securities to create a balance in managing the organization's resources for maximum efficiency.
“As I have expertise in finance. This makes me focus on managing the financial structure and at the same time managing existing assets for maximum benefit. L.P.N. is an organization with strong financial strength. We are able to manage our investment portfolio to create added value for the organization. and increases benefits for all those involved with the organization. (Stakeholders) including investors, shareholders, employees, business partners and the supply chain,” Mr. Apichart added.
Investment plan for 2024 Mr. Apichart said the company plans to launch 6 new projects worth 6,520 million baht, divided into 1 condominium project worth 980 million baht and 5 residential projects worth 5,540 million baht, which are residential projects. In the Bangkok-metropolitan area, 80% of the Gross Domestic Products (GDP) is in Bangkok, while the other 20% is in the provinces. By developing the project of L.P.N. Emphasis will be given to the Bangkok metropolitan area and the surrounding areas of Bangkok. That takes no more than 2 hours to travel from Bangkok, rather than expanding into provincial areas that are far from Bangkok. We have purchased land in Nakhon Pathom province to develop the project. And we have plans to jointly invest with a group of foreign investors. who are interested in investing in Thailand Currently, it is in the process of negotiating with 2-3 companies, both joint venture investments and turnkey investments, while the company has an investment budget to purchase land in 2024 at 1,000 - 2,000 million baht, coming from the company's cash flow / Borrowing from financial institutions and issuing bonds In January of this past The company successfully issued bonds worth 1,500 million baht, reflecting investors' confidence in L.P.N.'s operations.
“As of December 31, 2023, L.P.N. has a registered capital of 1,454 million baht. The company has accumulated profits over the past 30 years, making the current shareholders' equity at 11,959 million baht. This amount allows the company to make additional investments. Both in the real estate business and other businesses, resulting in being able to generate income in the long run While operating results at the end of 2023, L.P.N. had sales and service income of 7,407 million baht, a decrease of approximately 28% from sales and service income of 10,276 million baht, with a net profit. 353 million baht, a decrease of 42% from net profit of 612 million baht at the end of 2022 from the said operating results. Meeting of the Company's Executive Committee It was resolved on February 15, 2024 to pay a dividend of 0.13 baht per share to shareholders whose names were in the shareholder register as of February 29, 2024. The Company has already paid an interim dividend of 0.08. baht per share on August 31, 2023, resulting in having to pay another 0.05 baht per share on April 17, 2024,” Mr. Apichart said.
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