ORI’s Project Beats avg. Pre-Sales Rate by 30%, Analyst Gives TP at ฿12 with 47% Upside!

Kasikorn Securities (KS) has upgraded Origin Property Public Company Limited (ORI)’s share price from ฿11.10/share to ฿12.00/share after seeing ORI has beaten other company in the average pre-sales rate in 2019 of 20-30% along with its strategic location of the newly launched condominiums.

KS has stated that during July 13-14, ORI held a soft launch event for Park Origin Ratchathewi, the fourth new condominium project of 2019, worth THB 2.9 billion with 264 units. While the marketing and communications activity of this project targeted only a certain group of homebuyers and was conducted exclusively through on-line channels, by the end of the week, 50% of the total units had been booked.

ORI’s presales and backlog will thus be boosted by about THB 1.5 billion, lifting its YTD presales to nearly THB 15.0 billion, which is more than half of its 2019 presales target of THB 28.0 billion. Also, backlog before deducting 2Q19 revenue will rise to THB 43.0 billion from THB 34.1 billion at the end of 1Q19.

 

KS has a positive view of this successful launch. In our view, the project is expensive and yet surprisingly it was still able to draw attention from many “real demand” buyers, based on our on-site survey. While most of the buyers seemed no older than 35, many of them also came with their parents.

This result is more evidence of ORI’s ability to introduce the right project to the right target group and it creates positive expectations about the prospects for later projects mostly in the middle segment (Bt70-100K/sq.m.) scheduled to open from August 3, 2019.

Thus, KS maintains the Outperform rating on ORI while upgrading the target price from  ฿11.10/share to ฿12.00/share with an upside of ฿3.85/share or 47.2%. The target price given by KS is higher than the target consensus of ฿10.21/share.