TWZ Corporation Plc (TWZ) is expanding into the property business, starting the first 150-million-baht project in a prime location close to the Ratchadaphisek underground station. The mobile-phone dealer signed a 24-year lease agreement with the State Railways of Thailand, aiming to develop a project that should launch in the middle of this year. The first phase includes 16 units of home offices from 240 to 330 square metres with lease prices starting at 9.99 million baht.

It will use cash flow, estimated at 80-100 million a month, and bank loans to support the project, according to managing director Puttachart Rungkasiri.

He said although the economic environment was not good for property investment, the company is confident that the price and location will be attractive.

''Only 9.99 million baht a unit in this location is worth the investment. The price of old home offices there are higher than this,'' Mr Puttachart said.

For the second phase, TWZ will develop eight-storey boutique serviced apartments, expected to launch by 2010.

From his experience in the property business, Mr Puttachart believes good location and price will help the business grow in the future when the economy improves.

TWZ is considering setting up a subsidiary company to run the property business in the future.

Apart from property, TWZ will seriously focus on establishing house brands of mobile phones this year, due to a higher margin of around 10% compared to 1-5% for international brands. It wants to reverse the sales proportion of house and international brands to 70:30 this year, from 30:70 last year.

Fifty new house brands are scheduled for release this year. The majority will target middle- and low-end customers with prices up to 5,000 baht.

The company first introduced its brands last year with total sales of 300,000 units. All its cell phones are produced in China as TWZ also has business partnerships in Taiwan and China to develop their products.

The company is confident it can achieve 30% growth to 4.5 billion baht this year. It will open 10 new shops in Bangkok and the provinces and refurbish 80 shops nationwide this year.

TWZ reported net profit of 15 million baht on revenue of 3.3 billion baht in 2008, down from net profit of 94 million baht on revenue of 4.55 billion baht in 2007. It will pay a dividend of 0.01 baht per share.

TWZ shares closed yesterday on the Stock Exchange of Thailand at 1.21 baht, up one satang, in trade worth 580,000 baht.

source : www.bangkokpost.com