SET-listed developer Eastern Star Real Estate aims to achieve 10% revenue growth to 2.2 billion baht, focusing on segments with strong sales potential, tightening cost control and doubling cash flow.
Managing director Pairoj Wattanavarodom said the surge in energy costs affecting all sectors has prompted the company to adjust its strategy to cope with the crisis.
"We had previously set aside 100 million baht in cash on hand, but this is no longer sufficient and will need to be increased to 200 million," he said.
"Our financial position remains stable as most of our completed, unsold condo units have already been repaid to banks."
Mr Pairoj said risk management does not mean halting spending, business operations or marketing activities, but rather improving precision by focusing on ready-to-move condo units that are easier to close.
These units are located near hospitals, hotels or educational institutions, where demand remains steady, as well as near mass transit stations, targeting first-time workers.
The company will also emphasise projects where buyers have the capacity to secure mortgages and complete transfers, while projects targeting segments affected by rising energy costs will be delayed, he said.
Products that continue to show strong purchasing potential include single detached house projects in Ban Chang, Rayong, where demand is driven by buyers working in Chon Buri and industrial estates in the eastern provinces.
"The completion of the motorway lifted our sales in Ban Chang as many people in Chon Buri shifted to Rayong to avoid crowds," said Mr Pairoj. "We focus on units priced from 6 million baht, up from 5 million, as the upper-end segment has stronger purchasing power."
This year, Eastern Star will launch two new projects worth a combined 3 billion baht. A single detached house project worth 700 million baht in Ban Chang, with units priced between 6-8 million baht, was launched this quarter.
Another project is a condo block in the Krungthep-Nonthaburi area near Yaek Tiwanon station, worth 2.3 billion baht, comprising 800 units priced between 2-5 million baht, scheduled for launch in the fourth quarter.
The company expects to reach 1.77 billion baht in presales and 2.2 billion baht in revenue by the end of 2026, up 27% and 10%, respectively, in 2025.
Revenue last year rose 7% from 1.9 billion baht in 2024, while net profit surged 3.6 times to 129 million baht, driven by low-rise housing in Rayong, which recorded a high gross margin.
Earlier this year, the company spent 250 million baht to acquire a land plot near Paolo Hospital Kaset for a low-rise condo project, with the remaining 750 million baht from its 1-billion-baht budget to be deployed later this year.
"The investment in new land plots is for 2027 onwards," he said. "While we will remain cautious, we need to be ready when the market comes back."
To control costs amid rising fuel prices, the company negotiated with contractors for new projects to maintain construction costs at current levels, in exchange for a commitment of timely payments.
