Home-building firm the Season Home Group expects to achieve revenue of Bt1.1 billion this year, following the first nine months in which it recorded sales worth Bt800 million.
The company also believes its sales will grow at least 10 per cent next year, to reach Bt1.2 billion.
Season Home, which builds houses for customers who already own their own land, believes its success has come from developing its construction process and setting up a system to support business growth.
General manager Supitcha Chaipipat said the home-builders' market had suffered from the effects of the global economic downturn, starting last year.
However, Season Home has continued to record sales growth because it formed a subsidiary, Compact Home, in 2007 to manage a specific market segment for homes priced lower than Bt2.5 million.
During the economic downturn, demand for residences slightly, but demand for houses priced lower than Bt2.5 million continued to grow, she said.
Season Home, which builds more expensive homes, recorded sales of Bt480 million in the first nine months of this year, down 17.2 per cent from its earlier estimate of earnings reaching Bt580 million. But the subsidiary, Compact Home, recorded sales of Bt320 million in the first nine months, 38.9-per-cent higher than the earlier estimate of sales worth Bt230 million.
The group's combined revenue from the first nine months is thus Bt800 million, or just 1.2 per cent short of Bt810 million.
Season Home Group now believes it will record sales averaging Bt100 million per month in the final quarter of the year, dirving the total figure to reach its target of Bt1.1 billion before the end of the year, Supitcha said.
She said her company believed its sales would grow nearly 10 per cent in 2010, to reach Bt1.2 billion. It is planning to release 30 newly designed models - 20 of them costing more than Bt3 million and the remaining 10 models, less than Bt2.5 million per unit.
The company has developed its construction system to meet high standards by using the latest construction technologies. For example, it uses cement-and paint-spraying devices, auto-levelling lasers and thermo-hygrometers for measuring temperature and relative humidity when building new homes.
Supitcha said that when the company used new technology in its construction process, the time taken to build a house was reduced and the finished residence had higher quality. By reducing the time for delivering new houses to customers, the company was able to maintain a net profit margin of about 10 per cent, she said.
The company has also spent Bt10 million to develop an enterprise resource planning system to help manage its business costs with the latest information technology. Among other things, the system will manage its logistics process, delivering construction raw materials to building sites. This will help the company to cut its logistics costs and manage construction time. It will start using the system next year.
At present, after signing a contract, the company takes about four months to build and deliver a house priced lower than Bt2.5 million to a customer. The time is about six months for residences priced above Bt2.5 million.
The company has developed its construction-management system in order to compete effectively with other home-builders in an environment of high competition.
When the company launches new residential models, other home-builders copy them as soon as they can, so Season Home has to manage its construction system and its quality standards as the strong point of its business, Supitcha said.
"Season Home has continued to record sales growth because it formed a subsidiary, Compact Home, in 2007 to manage a specific market segment for homes priced lower than Bt2.5 million."
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