ORI Gains 4% after Launching 2 Big Projects, Analyst Maintains “Outperform” at TP ฿11.10

The share price of Origin Property Public Company Limited (ORI) rose ฿0.35/share or 4.40% to ฿8.30/share with a trading value of THB 467 million in the morning session on July 2, 2019. The highest trading price in the morning session was ฿8.35/share while the lowest was ฿7.90/share.

Kasikorn Securities (KS) wrote in the analysis saying that based on KS’s survey the two newly launched condominium projects — Park Origin Chula Samyan (THB 4.6 billion, 501 units) and The Origin Ram 209 Interchange (THB 2.0 billion, 1,007 units) — achieved high presales rates of 50% and 70% respectively. The presales rates achieved by ORI beats the 20-35% opening presales rates of many other condominium projects launched this year.

As a result of these strong launches, ORI’s presales and backlog were boosted by THB 3.7 billion, lifting its YTD presales to about 40-50% of its 2019 presales target of THB 28 billion from the THB 5.67 billion reported in 1Q19. Meanwhile, its backlog before deducting 2Q19 revenue rose to THB 41.0 billion from THB 34.1 billion at the end of 1Q19.

KS has a positive view of these successful launches. Not only do they add more presales and backlog, but, based on the survey, KS noticed that most of the buyers were locals with fewer investors among the potential purchasers. This may indicate less trouble ahead during the transfer period.

These results may encourage the market to expect a high level of success at other ORI projects planned to be launched in 2H19 including Park Origin Ratchathewi (THB 2.9 billion, 264 units) and five projects under The Origin brand located at Ladprao, Sukhumvit, Ratchada, Phaholyothin, and Ramintra.

KS maintain “Outperform” rating on ORI with an unchanged 2019 target price at ฿11.10/share.