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Thailand’s residential property giant downbeat over '09 prospects
Thailand's biggest housing firm, Land & Houses sees its net profit in 2009 to be slightly lower than the 3.4 billion baht ($96 million) it made in 2008 and it planned to cut prices to boost sales, Reuters quoted the company as saying.
"Net profit should be slightly lower than last year's. In the current situation, we will need to stimulate buying or consider price cuts in some housing projects," Senior Executive Vice-President Adisorn Thananun-narapool told Reuters.
Fourteen analysts polled by Reuters Estimate forecast a 12.5 percent fall in 2009 net profit to nearly 3.0 billion baht as people delay decisions to buy new homes due to the bearish economic outlook plus recent political instability.
They forecast annual revenues of 15.1 billion baht, down 4.4 percent.
The company has forecast flat revenue growth for the year, supported by revenue from two condominiums in central Bangkok plus 12 housing projects it plans to launch valued at 16 billion baht.
Chief Executive Officer Anant Asavabhokin said the listing of its LH Bank was on track for 2010.
Adisorn said the company would issue bonds worth 2-3 billion baht in 2009 or early in 2010, part of a total of up to 10 billion baht planned in several tranches.
LH builds detached homes and city condominiums aimed at middle-income buyers. It is 12.6 percent owned by the Government of Sinagpore Investment Corp.
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