CPN predicts lower revenue gain in 2017

New projects set to buoy future income

CentralPlaza Westgate is among the big retail projects developed by Central Pattana Plc. KITJA APICHONROJAREK

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SET-listed Central Pattana Plc (CPN) expects lower revenue growth of 6-8% next year after opening one shopping complex in 2016.

Revenue is expected to return to double-digit growth rates in 2018.

Pattamika Pongsurayamas, CPN's assistant vice-president for investor relations, said the company is working on three new shopping complexes, which are due to open next year. The three are CentralPlaza Nakhon Ratchasima, CentralPlaza Mahachai and Central Phuket.

"The three new projects will help drive our revenue growth back to a double-digit rate in 2018," she said.

The retail developer under Central Group operates 30 shopping complexes nationwide, a number which is set to reach 33 by the end of next year.

CPN is also developing three residential projects under its "Escent" brand in Chiang Mai, Khon Kaen and Rayong, which are expected to generate additional income in 2018.

The company targets average annual revenue growth of 15% from this year until 2020 based on its expansion efforts as well as plans to renovate existing stores, said Ms Pattamika.

During the first nine months of this year, the company achieved revenue growth of 17% year-on-year to 21.8 billion baht.

Naparat Sriwanvit, CPN's chief financial officer and senior executive vice-president, said major revenue drivers this year are four shopping projects launched last year and CentralPlaza Nakhon Si Thammarat, which was opened at the end of July.

Last year, CPN unveiled Central Plaza Rayong in May, Central Festival Phuket in June, CentralPlaza WestGate in August and CentralFestival EastVille in November. It also renovated CentralPlaza Pinklao.

Contributing to the company's business growth this year have been the improving economy, government stimulus measures, growth in farm income and buoyant tourist arrivals.

The first overseas shopping complex under CPN, Central i-City at the i-City Ultrapolis in Malaysia, will open as planned in 2018.

At home, there are eight new commercial projects to be developed until 2020, which will be located both in Bangkok and throughout major provinces.

CPN earlier announced that it will open five new projects and renovate five existing stores during 2016-18, requiring an investment of 60 billion baht.

The latest project is CentralPlaza Mahachai, which will form part of a mixed-use development on 100 rai opposite Porto Chino in Samut Sakhon province.

"Our target is to open two to three new shopping projects and renovate three to four projects each year," said Ms Naparat.

In the third quarter, CPN recorded 15% year-on-year growth in revenue to 7.32 billion baht with a 29% rise in net profit to 2.34 billion.

"We have been able to maintain strong growth in both revenue and net profit on the back of moderate economic recovery in the third quarter," she said.

CPN shares closed yesterday on the Stock Exchange of Thailand at 55.25 baht, up 50 satang, in trade worth 160.1 million baht.

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