TRIS Rating affirms the company rating on Siamese Asset PLC (SA) at ?BB+? with a ?stable? rating outlook. The rating reflects SA?s evolving brand recognition in the condominium segment and improving capital structure after listing on the Stock Exchange of Thailand (SET) in December 2020. The ratings also take into consideration the company?s limited track record, product segment concentration, and the effects of the prolonged Coronavirus Disease 2019 (COVID-19) pandemic, which could lead to weakening demand for residential properties.
KEY RATING CONSIDERATIONS
Limited track record with evolving brand recognition in the condominium segment
In TRIS Rating?s view, SA?s market position in the condominium segment is improving over time. Its brand recognition in the middle- to high-end condominium segments is evolving. The company develops condominiums under the ?Blossom?, ?Siamese?, ?Siamese Exclusive?, and ?The Collection? brands. SA?s revenues and profitability have improved over the past three years. Revenues grew to THB3.6 billion in 2020, from THB3.5 billion in 2019 and THB2.1 billion in 2018. However, SA?s revenue base remains small compared with other rated developers as the company has completed relatively few projects each year.