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• AP said brisk presales during the Siam Paragon sales event where four condo projects were put up for sale had pushed YTD total presales up to as much as Bt17.4bn, accounting for 61% of the full-year target.
• Euphoria was however cut short by negative news after existing customers of the Baan Klang Krung project filed a building sinking complaint with the Office of the Consumer Protection Board (OCPB). Following a check with AP, the project in question has been delivered for more than five years and is now beyond the company’s warranty period. AP will wait for the OCPB to inspect and assess the damage. This would be a negative overhang for AP.
• We remain satisfied with its presales figures though the building sinking dispute may be a small worry. Current P/E level also remains below historical average. We reiterate a ‘BUY’ call on AP shares with a Bt8.70/share target price.
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