Asian Property Development Plc (AP) is hoping to maintain revenue in 2009 at last year's level, estimated at between 8.5 billion and 9 billion baht, despite a slowdown in the economy and property market, its chief executive said. Asian Property, which builds townhouses and condominiums in urban areas, plans to beef up its sales campaign this year in an effort to attract home buyers, said Anuphong Asavabhokin.

The company's net profit margin should fall below the 11.5% achieved last year, when its products contributed good margins, he said.

''Our revenue target this year is equal to the target we set for last year. This is our worst-case projection,'' he said.

''Our overall strategy is to focus on sales promotion and activities. We believe in projects with good locations,'' he said.

Fifteen analysts polled by Reuters Estimates forecast 2008 revenue of 8.9 billion baht, falling 4.8% to 8.5 billion baht in 2009. They forecast 2008 net profit of 1.4 billion baht, falling 21% to 1.1 billion baht in 2009.

The company, valued at $134 million on the Thai bourse, is due to release 2008 earnings later this week.

Domestic political instability and the closure of two Bangkok airports by protesters hit confidence late last year, with a knock-on effect on housing demand in the fourth quarter, weakening home sales while banks tightened lending.

He expected demand to recover gradually this year.

''I would say people feel less panicky now. But asked if demand will return to normal, I think it will be weaker than last year,'' he said.

The substantial amount of presales bodes well for the company reaching its revenue target this year, he said. At the end of the third quarter, its backlog was 15.5 billion baht, with nearly 80% of that condominiums.

Condominiums yielded a gross margin of 35%, close to last year's, while the margin on low-rise projects such as townhouses was falling to 27-28% from 31-32% last year due to stiff competition, he said.

The company would launch 12 new projects as planned, including seven condominiums, worth a combined 18.6 billion baht in sales, and it would fund the new projects with cash and bank loans, he said.

''We will have a large cash inflow from condominium transfers this year and that will fund our new projects. The other funding is from bank loans,'' he said.

The company sold 1 billion baht in bonds in January and had no plans for further bonds this year, he said.

AP shares closed yesterday on the SET at two baht, unchanged.

source : www.bangkokpost.com