Seacon Home Group is known for building homes and it hopes to build even more in 2017 after revealing that it aims to secure sales growth of 10 per cent this year. Local media explains that the company hopes to bring in THB 1.3 billion in 2017 with the government’s investment in infrastructure projects hopefully improving things.
Managing director Supitcha Chaipipat told the Bangkok Post that the government’s spending this year on infrastructure development is likely to help stimulate private sector investment and could thus raise overall market sentiment in Thailand. More importantly, risk factors from last year such as high household debt and a high rate of mortgage rejection should lessen as the economy in the country improves.
“Small and medium-sized enterprises, the traditional buyers of mid-priced houses, are expected to recover this year, in line with the economy, after a few sluggish years,” Supitcha says.
Seacon Home Group earned THB 1.2 billion in sales last year which was a 6 per cent increase from the previous 12 months. The company raised THB 700 million from the 210 units at its subsidiaries Compact Home Co and Budget Home Co. The rest of the revenue was from Seacon Home Co, a mid-range to higher-end house builder. This subsidiary accounted for 40 per cent of the company’s total earnings and was down from previous years.
The company is predicting it will earn THB 780 million in sales from the lower-priced segment and THB 520 million from the mid- to high-priced segment in 2017.
In order to reach its sales estimates, the company plans to spend THB 50 million on marketing with a significant portion of the budget focusing on online efforts. Seacon Home Group will also have to deal with the rise in the minimum wage, but this will only have a minimal impact on the company’s business.
“Our wages exceed the minimum rate. We pay THB 320-350 per day for unskilled labour and THB 400-600 a day for skilled labour,” Supitcha explains.
