Equity Analysis /
Thailand

Sansiri PCL: Redefining high-end home demand—good response and more to come!

  • NARASIRI proves the strength of high-end housing demand

  • Presales target of Bt35bn now looks plausible

  • 2022 business plan on-target

Bualuang Securities
30 August 2022

SIRI’s stock price slipped 3.6% yesterday (which was its XD date). But its outlook remains good. Management hosted a site visit last Friday to NARASIRI Krungthep Kreetha Community, which has marked very quick presales; it is just one of a tranche of fat-margin low-rise projects that will drive 2H22 earnings. We also see scope for upside to the 2022 core earnings forecasts of the street and ourselves. BUY!

NARASIRI proves the strength of high-end housing demand

The high-end NARASIRI brand launched in 2013 with a low-rise estate in Bangna. In June 2022, SIRI launched NARASIRI Krungthep-Kreetha (86 units, Bt5.8bn project value). Less than three months after launch, the project is 94% booked (only five units left). The prices of houses in the estate range Bt50-95m/unit (putting it right at the top of the high-end) and buyers must front up with a 20% deposit in order to reserve one. Also, SIRI launched another high-end low-rise project called BURASIRI Krungthep-Kreetha (276 units, Bt4.9bn) priced at Bt15-45m; its take-up rate is good at 35%.