SC Rethinks to Reform: Restructures Business Portfolio for Strong Financial Growth in 2025!

Nuttaphong Kunakornwong, Chief Executive Officer of SET-listed SC Asset Corporation (SC), stated that in 2024, SC quickly adapted to three significant challenges - high household debt, oversupply of real-estate properties, and low consumer confidence - by securing prime-location land to support its growth plan over the next three-plus years, which includes various real estate development projects, such as residential developments, hotels, and warehouses. SC remains confident in its business strengths, as it has high liquidity, which can support its business growth exceeding 10,000m Baht. The company also has strong investment partners.

In 2025, these three key challenges remain, along with the added factor of geopolitical uncertainty. As a result, SC must continuously adapt. It needs to #RethinkToReform to enhance its competitiveness and achieve sustainable growth.

3 major reforms

Reform 1 Restructure the business portfolio into 3 engines for risk diversification:

• Engine 1 - Residential real estate for sale, including low-rise properties and condominiums.
• Engine 2 - Income-generating real estate, such as hotels, warehouses, office buildings and apartments in the USA.
• Engine 3 - Investment opportunities in new businesses with future growth potential.

The objective of this reform is to achieve a well-balanced portfolio by generating profit from a more diverse range of businesses. Investments will be decided carefully with the strong investment partners. The company expects its debt-to-equity ratio to significantly decrease within this year.

Reform 2 Adjust the cost structure to ensure efficiency while focusing on high quality and innovation that meet customer needs, and to increase profitability.

Reform 3 Restructure the organisation to increase its agility, prepare for its growing diverse businesses and support career development opportunities of its employees.

Business Goals and Plans for 2025

• SC wishes to recover strongly with growth in sales, revenue and profit, maintain its position as a leader in single-detached houses, increase market share in condominiums, and expand its profit share from income-generating real estate.
• The sales target is 26,000m Baht (+4% YoY), with total revenue across all businesses at 25,000m Baht (+11% YoY). Its investment will continue with a budget of 7,000m Baht across diversified businesses.

Engine 1 In 2025, there will be a total of 96 residential projects valued at 94,500m Baht, including 15 new projects worth 28,000m Baht. The breakdown will be as follows:

• 12 new low-rise projects worth 18,000m Baht, highlighted by the new brand SONLE offering sophisticated modern tropical single-detached houses starting at 200m Baht, and a new 2025 series of single-detached houses from the Bangkok Boulevard brand.
• 3 new condominium projects worth 10,000m Baht, covering all segments under the Reference and COBE brands, building on the success of Reference Ekamai, which achieved 80% sales in the early stages of its launch. Potentially, a new brand, located on Sukhumvit Road near Phrom Phong BTS Station, will be launched at the end of the year.

Engine 2 By the end of 2025, there will be 19 projects across four businesses, which are 545 hotel rooms, 200,000 square metres of rental warehouses, 120,000 square metres of office buildings, and 5 apartment buildings for rent in the United States.

Its key highlights include two new hotel projects opening in Q2/2025 : KROMO, Curio Collection by Hilton, located on Sukhumvit Road across from EmSphere Mall, and The Standard in Pattaya, located on the beachfront at Na Jomtien. Additionally, there will be three new warehouse rental projects in Bangna Km. 20, Laem Chabang, and the Amata Industrial Estate in Chonburi.

Nuttaphong concluded that "in this challenging 2025, SC will continue to adapt. The business is expected to recover strongly with profitability growth. The company will carefully diversify its investment and maintain brand confidence through high-quality products and excellent services. Also, the company will reduce GHG emissions by over 100,000 tons of carbon from 2025 to 2030 for the future of the next generation."