Ananda Development PCL (ANAN) was reportedly successful in offering 1,000 million baht perpetual bonds with a 9.5 per cent yield in the first five years to all investors during August 14, 17 and 18, 2020.
ANAN said it prepared all kinds of business plans to accommodate the rapid changes and it is ready for long-term sustainable growth.
The company will use the proceeds from the perpetual bond offering to redeem the repayment of the perpetual subordinated bond No. 1/2015 in August.
Chaiyuth Chunnahacha, the chief financial officer of ANAN, said the positive feedback reflected confidence among investors to the company’s financial position.
“The perpetual bond offering to investors is timely after the market began to return to favor, while interest rates at the moment are low,” said Chaiyuth.
In the third quarter of 2020, ANAN still has five new condominium projects with a total value of 21 billion baht that would help achieve the company’s goals 2020, namely Ashton Asoke-Rama 9, Ideo Q Sukhumvit 36, Ideo Mobi Sukhumvit East Point, Ideo Ratchada – Suthisan and Elio Sathorn-Wutthakat.
Second-quarter results
In the second quarter of 2020, ANAN reported a net loss of 575 million baht, totaling pre-ex net loss of 710 million baht in the first six months of 2020 compared to its 288 million net profit in the same period in 2019.
The main pitfall was mainly due to losses from its construction business, which generated losses at the gross profit level of 560 million baht in the second quarter and 720 million baht in the first half.
Stripping out losses from the construction business, ANAN’s operation would make a small second-quarter profit of 23 million baht.
Phatra Securities rates ANAN as ‘underperforming’ with the target price of 1.00 baht per share, lowered from 1.20 baht per share
Analysts from Phatra said the downside risks of ANAN are weak economic conditions, slow housing sales, high competition among developers, tighter mortgage financing policy from commercial banks and a strong increase in interest rates.
On Thursday morning market (11:21 a.m.), ANAN shares stood at 1.47 baht, up by 0.68 baht or +0.01 baht with transaction value of 441,000 baht.
