SET-listed developer Sammakorn Plc (SAMCO) has an ambitious plan to quadruple annual revenue to four billion baht over the next five years after the entry of new major shareholder RPCG Plc (RPC).

Managing director Kittipol Pramoj Na Ayudhya said the new major shareholder would enable the company to make an aggressive move with an investment of 1.9 billion baht this year, up from 1.2 billion last year.

Kittipol: Financial strength from RPCG

"We've been very conservative for years. Investment each year was below one billion baht," he said.

"RPCG has financial strength. It will support funding, construction, human resources and our internal system."

SET-listed RPCG, formerly Rayong Purifier Plc, paid 400 million baht for an additional 25% stake in Sammakorn, raising its holding to 48%.

RPCG will help energise conservative Sammakorn and enhance and integrate its working system with its engineering management, Mr Kittipol said.

Sammakorn plans to launch three new projects worth a combined three billion baht each year. Its revenue could grow from 1.15 billion baht last year to four billion by 2019.

This year it plans to spend 900 million baht to buy three blocks of land for projects being launched next year and one billion baht for development of projects launched this year.

He said Sammakorn was a very conservative developer whose brand was very strong but not yet used to its maximum potential. RPCG saw this strength and was interested in the property business, as its oil refinery business declined.

Sammakorn this year plans to launch two Bangkok housing projects worth a combined 2 billion baht — single houses in the Chaeng Watthana Road area and townhouses on Ram Intra Road.

It expects two billion baht in presales and 1.8 billion baht in revenue this year, up from 1.7 billion and 1.15 billion, respectively, last year and one billion baht each in 2013.

With funds from RPCG, the company will spend 350 million baht to develop community mall Pure Place in Khon Kaen next year.

It will also start development of a condo project on a 25-rai site in Pattaya, adjacent to Cartoon Network, in 2017 with units priced from 80,000 baht a square metre.

"Concerns include the political situation and external factors such as the global economy," Mr Kittipol said. "The government's spending on megaprojects can help to boost sentiment and the property market in the second half."

SAMCO shares closed yesterday on the SET at 4.66 baht, up 80 satang, in trade worth 65.3 million baht.

RPC shares closed at 1.11 baht, up one satang, in trade worth 5.33 million baht.