Thailand’s property sector displayed a mixed yet improving performance in the second quarter of 2025, according to an analysis by Kiatnakin Phatra Securities (KKPS).
Despite an earthquake prior to the start of the quarter, key developers AP (Thailand) Public Company Limited (SET: AP), Land and Houses Public Company Limited (SET: LH), and Supalai Public Company Limited (SET: SPALI) all saw a rebound in core profits from the year’s first quarter, previously marked as the sector’s earnings trough.
SPALI surprised the market with an interim dividend of THB 0.55 per share for the first half of 2025—outstripping the analyst’s expectation of THB 0.25-0.40. AP, meanwhile, delivered results that topped consensus, but has no interim dividend policy in place. Looking ahead, KKPS anticipates further sequential improvement in sales and earnings for both SPALI and AP in the third quarter, while LH is expected to see its net profit peak during the second quarter as a result of asset sales.
AP’s second-quarter core net profit reached THB 1 billion—a 21% decline year-over-year, but a 17% increase from the previous quarter and 7% above market and KKPS’ estimates. Residential revenue, at THB 9.7 billion, was buoyed by robust landed property sales, which contributed 96% to the segment and saw notable growth both annually and sequentially. Gross margins tightened to 29.2% due to ongoing price promotions, while SG&A expenses saw a modest annual drop but rose quarter-over-quarter. The company’s net gearing ratio remained steady at 0.73 times.
Land and Houses posted an overall net profit of THB 1.38 billion for the quarter, up 35% year-on-year and 64% quarter-on-quarter. However, stripped of extraordinary gains from a U.S. asset sale and foreign exchange, the company’s core profit fell short at THB 689 million—a 32% yearly decline and 5% drop quarter-on-quarter, and notably 21% below projections by the analyst. Disappointing gross margins on residential sales and lower-than-expected earnings from associate companies weighed on results. LH’s residential revenue amounted to THB 4 billion, with gains in sequential sales from a weak first quarter, but margins continued their downward trend. Net gearing increased to 1.4 times.
Supalai reported a second-quarter core profit of THB 1.1 billion, down 31% from the previous year but up sharply 173% from the first quarter. While broadly in line with KKPS’ forecasts, the result missed consensus estimates by 16%. Second-quarter revenues were boosted by strong residential property transfers and a significant uptick in landed property sales both quarter-on-quarter and year-on-year. However, gross margins compressed due to pricing strategies and a changing revenue mix. SPALI’s equity income from its Australian projects soared, supporting a solid financial foundation with net gearing at just 0.66 times.
While signs of recovery are emerging across Thailand’s property sector—particularly for SPALI and AP, which KKPS gives a ‘Buy’ and ‘Neutral’ recommendation, respectively— an ‘Underperform’ rating is maintained on LH, citing underlying weakness in its core business.
