In 2023, amid all the pressures from the macro economy, factoring in by the financial tension from the rising inflation rates and interest rates, coupled by the geopolitical conflicts that occurred around the world, Singha Estate overcame these obstacles with a diversified business approach and a vision that focused on management flexibility to respond to the economic environment through the development of quality products to support our business expansion.
We also placed our attention to the capital management to maintain the financial stability, including investing in businesses that have the potential to create additional value for the Company as well as significantly creating awareness and brand reputation of S Group.
A testament to being an organization that never stopped developing allowed the Company to grow continuously and achieve 3 important goals, namely:
  • Recording operating income at an all-time high of more than THB14.6 billion;
  • Success in offering bonds to general investors for the first time by Singha Estate and SHR, with a total value of THB3 billion, to promote financial flexibility and create opportunities to expand our business towards sustainable growth; and
  • Success in project development, which includes the hospitality business, with the opening of SO/ Maldives Hotel managed by the Accor Group. CROSSROADS Project is now a leading integrated leisure destination in the Republic of Maldives, with the increased customer group. In addition, we also accomplished in raising the ADR to reach the target, in accordance with the plan to renovate hotels that have potential, including SAii Laguna Phuket Hotel, SAii Phi Phi Island Village Hotel and Outrigger Fiji Beach Resort. For residential business, we were able to launch five new projects under new brands, with a total value of THB10 billion, which received a good response, in S’RIN Ratchaphruek - Sai 1 Project, continuing from the launch of Siraninn Residences Pattanakarn Project in late 2022, which was considered a proud starting point for penetrating the luxury market in the Company's low-rise residential property projects. For commercial business, we developed and created opportunities to expand the ‘Flex Space’ business to create flexibility for our business, to respond to the needs of the modern market and enhance the opportunity to increase occupancy rates in the midst of an intensified price competition. For industrial estate and infrastructure business, the completion of the development of the public utility system in the project and the running of commercial operations of all three power plants have resulted in the project having a total power generation capacity of more than 400 megawatts, stabilizing the Company’s share of income from selling the electricity at approximately 70% of the total production capacity to the Electricity Generating Authority of Thailand. This energy stability will be the main supporting factor towards the progress in the sale and transfer of land ownership in the future.

Furthermore, the Company is pleased to inform the shareholders that in 2023, the Company has been selected as one of the companies listed in the SET ESG Ratings for the 5th consecutive year. Besides, the Company also received 5 stars or Excellent CG Scoring with respect to corporate governance and received the Thailand's Most Admired Company award in the field of social responsibility. This reflects that S Group is committed to developing the organization for sustainable growth and creating value for stakeholders, taking into account our responsibility towards society and the environment.

Moving forward to upgrade operations and seek new opportunities to accelerate portfolio growth and increase profitability, while maintaining financial discipline. In 2024, we set the Company's total revenue target to grow by 20%, driven by the continued growth of the markets in which we operate and opportunities from new customer groups, complemented by the synergy between the four businesses to draw on the different and outstanding strengths and expertise of each business to support and strengthen each other as well as opening up for the opportunities to join forces with new business alliances to expand business and investment opportunities.

The goals for growth and strategies of the Company can be classified according to the types of the businesses as follows:

Hospitality business – We are committed to strengthening our comprehensive business strategy in several aspects to increase our operational efficiency for a continuous growth, including (1) increasing revenue by seeking new market segments, utilizing sale channels through digital platforms, and increasing income from products and services other than hotel rooms by offering food and beverage experiences which are unique in the brand's style, with a plan to launch beach clubs in every resort under S Group's "SAii" brand; (2) continuously enhancing portfolio and rotating assets to enhance the good quality of the assets of S Group's hotels, particularly the additional investment in hotels with high potential; (3) improving the concept of our brands to deliver excellent travel experiences in line with the new trends, including levitating "SAii" brand to be well known internationally and creating brand recognition as a sustainably luxurious tourism destination, along with bringing the strengths of our brands to further advance under an ‘Asset Light’ business model or joint investment; and (4) considering new business opportunities in markets around the world, especially in the European Mediterranean and Asia Pacific regions, to create a diversity in S Group's portfolio and create sustainable growth in the generation of our revenue and profits, including reducing the seasonal fluctuations affecting our hotels.

Residential business - Over the past 3 years, Singha Estate began investing in low-rise residential projects. The Company has expanded the scope of development and designed new brands to cover more diverse segments, from projects at the ultra-luxury level to the premium level. We have harvested the competitive advantages from our lessons obtained during the development of flagship properties, such as Santiburi The Residences Project, and then pass on the ‘Ultra Luxury Living’ concept to our other brands. The philosophy which we maintain in every brand is to deliver equal quality that is sufficient for the context and corresponds to the needs of the customers in that given segment, based on the principle of “Best-in-Class” project development concept to reinforce our mastery in developing residential projects that truly understands the customers in the luxury segment.

From the dawn of Singha Estate's success which we spent time gathering experiences in designing and developing brands to gain acceptance and trust from the customers, including expanding the brand portfolio to cover every segment in the luxury segment and entering the market with a larger customer base during this past year, we are confident that the future will be a harvest time of our brands which will be stronger in many dimensions, supported by the ready-to-sell products valued at more than THB13 billion and projects that will be gradually launched in 2024 worth approximately THB9.5 billion, all of which are in potential locations that are desired by those with high purchasing power.

Commercial business – The Company has guidelines for managing all office buildings to respond to the changing needs for the utilization of office space. We achieved stable operating results with the ability to maintain the OCC of 85%. In addition, the Company assessed the challenges of the office building market from the approaching increased supply. Therefore, the Company must consistently monitor market conditions and always proactively adapt ourselves by improving the quality of assets, adjusting marketing plans to reach more diverse customer groups in terms of industry category and business size, and developing products that are outstanding in their environmental friendliness and promoting the quality of life of building users which will be an important factor in the consideration of the tenants.

Industrial estate and infrastructure business - Investing in this business will help increase business diversification and create a balance from the dependence on consumer-based and industrial-based incomes, which will stabilize the Company's business in various situations. Provided that the development of utilities and infrastructure has been completed in 2023, we are ready to deliver highly stable electricity, steam, and water, with a standardized waste management system. This will be one of the important factors in customers' investment considerations and will help the Company reach our targets in the sales and transfer of ownership.

From the diversification of S Group’s businesses, we are now flexible and strong to face eventual economic fluctuations. The strengthening of the stability of the Company's financial position ensures that we are ready to effectively seize new opportunities and challenges. Thus, I hope that the year 2024 will be another exciting year in which we will further contribute the strong growth for the Company and continuously develop innovative and better products and services to deliver the best and unique experiences for the customers of Singha Estate.

For the past success and the next steps towards the future of Singha Estate, Khun Thitima and I would like to commend the Board of Directors, the management team, and all employees for dedicating their full abilities and expertise to drive the operating results to create good returns and sustainable value to all sectors. We would also like to express our gratitude to the shareholders, joint venture partners, business partners, customers, financial institutions, the press, and all stakeholders who have always trusted and supported the Company. We hope to continue to receive great supports from everyone in the years to come in order to become one of the leading real estate developers in Thailand that creates an incessantly growing economic value while also offering a quality society for everyone.

Mr. Petipong Pungbun Na Ayudhaya

Mrs. Thitima Rungkhwansiriroj
(Chief Executive Officer)