As we enter 2024, many have set their sights on a strong recovery for the Thai economy after a period of difficulty. However, the reality is that the Thai economy continues to face various factors that have slowed its growth. Last year, the economy expanded by only 2.5%, the lowest among ASEAN countries, and below the initial forecast of 3.5%.
Several challenges pressured the Thai economy in the past year. These included weak consumer purchasing power due to high household debt, a rise in non-performing loans (NPLs), and a property sector under pressure from higher interest rates. As a result, some customers were unable to access credit. The bond market also faced liquidity issues, which limited the ability of certain companies to raise capital.
Despite these challenges, AP has maintained the resilience and continuity of its business operations. Last year, we achieved the highest sales in the industry, totaling THB 48,020 million. We also recorded total revenue from low-rise, condominiums (100% JV), and other businesses of THB 47,125 million, with a net profit of THB 5,020 million.
On behalf of AP Thailand’s management, I would like to express my heartfelt gratitude to our shareholders, every AP employee, our business partners, and most importantly, our valued customers. Your continued trust in us has enabled us to successfully navigate the past year.
2025: A Year of Opportunities or Ongoing Challenges?
As we look toward 2025, the Thai economy continues to face persistent challenges. The structure of the Thai economy remains largely unchanged, and both rising interest rates and inflation continue to weigh heavily on the nation’s growth.
An important question we must ask is how effective the government’s economic stimulus measures and policies will be in restoring business and public confidence in the economy.
Another concerning indicator of economic instability is the rise in reports of layoffs within the same industries, showing an alarming 40% increase in job cuts. This rate is not only surprising but raises significant concerns about the overall economic landscape.
One undeniable truth is that,…today, we are all navigating through turbulent times. What will enable us to remain resilient amidst this storm is our unwavering focus on financial stability. As of now, we maintain a net gearing ratio of 0.70, a strong indicator of our solid financial footing. Moreover, we possess ample liquidity and access to diverse funding sources. At the beginning of the year, we repaid THB 3,000 million in bonds on schedule, and simultaneously, a new bond issuance of THB 3,5000 million was met with overwhelming demand from investors. Furthermore, we have secured available credit lines from financial institutions totaling THB 16,633 million, providing us with a substantial advantage to support our continued success.
In 2025, we are poised to take our leadership in the industry to new heights with our strategy of “Craft to last” This will include the most significant launch in the industry to date, featuring 42 projects worth a total of THB 65,000 million, encompassing single houses, semi-detached houses, townhomes, and condominiums. Our sales target is set at THB 55,000 million, with revenue recognition projected at THB 52,900 million. At the same time, we remain committed to sustainable development (ESG) as a key priority.
Regarding corporate governance, we have received an AA rating from the SET ESG Ratings, underscoring our strong sustainability practices. In addition, AP has earned an “Excellent” (5-star) rating from the Thai Institute of Directors (IOD), reinforcing our commitment to transparency, good management practices, and excellence. This recognition strengthens the trust of our investors, shareholders, and business partners.
Moreover, we are advancing our “Habitat network” project, aimed at creating green spaces in urban areas, enhancing biodiversity, and improving the quality of life for residents. This initiative underscores AP’s dedication to finding a harmonious balance between urban development and environmental conservation.
AP Thailand remains committed to upholding ESG principles in everything we do, continuously adapting our approach to align with the evolving needs of the times. Our mission is to foster sustainable growth and deliver long-term value to all our stakeholders.
In closing, on behalf of AP (Thailand) Public Company Limited, I would like to express my sincere gratitude to all our customers, shareholders, bondholders, and partners for your unwavering support and trust. I would also like to thank all the financial institutions that have placed their confidence in us. We are confident that, with your continued support, we will continue to grow and succeed together in the years to come.