Message from Chairman and
Group CEO
The global economy expanded by 2.7% in 2024, maintaining a growth rate comparable to the previous year. The United States faced persistent inflationary pressures and labor market challenges. Geopolitical tensions and trade restrictions further intensified. The Eurozone experienced only marginal economic expansion, while the economies of China, India, and Japan fell short of their growth targets. Meanwhile, the oil market transitioned into a phase of oversupply. Meanwhile, the Thai economy was also affected by political instability, inconsistent government policies, high household debt, extreme weather events such as droughts and floods, and pressure from global competition. While the government attempted to stimulate short-term economic growth by supporting vulnerable groups and promoting tourism through its visa exemption policy, the economy still failed to recover as expected.
The overall real estate market had yet to recover, primarily due to weakened purchasing power, particularly among mid to lower-income buyers, which led to delayed purchasing decisions. Additionally, tighter mortgage lending criteria from commercial banks and persistently high interest rates further constrained demand. Land prices in Bangkok and the Metropolitan Area continued to sour. Even though the economic recovery among middle- to high-income buyers and increased participation from international investors and end-users provided some support, market stability remained elusive. Consequently, the total value of ownership transfers in the Bangkok Metropolitan Region declined by 9%. Although supply decreased in 2024, accumulated unsold residential unit levels rose and are expected to remain high due to these ongoing challenges.
The private hospital sector has been supported by the growing health-conscious trend and Thailand’s transition into the super-aged society in 2024, where one in five people is over 60 years old. Additionally, the medical tourism market has expanded by 14% in value, driven by global health trends, Thailand’s reputation for high- quality yet cost-effective medical treatments compared to regional competitors, and the presence of over 60 JCI-certified hospitals. However, in 2024, the growth of private hospitals slowed but remained above 5% due to weakened domestic purchasing power and intensified competition for medical tourists, as many countries vie for leadership in the medical hub industry. The number of patients from the Middle East also declined due to ongoing conflicts and governments preventing their citizens from seeking treatment in Thailand. Meanwhile, operational costs continued to rise, driven by higher interest rates, electricity expenses, and other overhead costs.
Organizational Restructuring, Increased Agility, and Strengthened Business Groups
In response to market volatility and to enhance its competitive position, PSH has refined its strategic focus on its two core business segments: real estate and healthcare. This approach emphasizes synergy and collaboration among business units within the Group to drive sustainable growth. Despite market contraction over the past year, the Company remains confident in identifying opportunities amidst challenges. As a result, PSH continues to prioritize the selection of in-demand, strategically located development sites, the enhancement of residential project quality under the Pruksa brand, and the improvement of healthcare services. Additionally, the Company seeks to increase the value of its precast and construction products, optimize sales and marketing strategies, and refine after-sales services to align with target market expectations. These strategies are designed to strengthen the Company’s position and drive long-term growth despite ongoing challenges.
Real Estate Business
The Company is committed to enhancing quality of life by launching new residential projects with a total value of THB18.2 billion, under the Wellness Residence concept. This concept leverages the expertise of companies within the Group, with ViMUT Hospital Group providing healthcare services for all Pruksa residents and Synergy Growth supporting digital and online service integration. Additionally, the Company plans to expand its portfolio of premium developments by 50%, increasing the proportion of mid-to high-priced projects to better align with market conditions. To adapt to economic trends, shifting consumer behavior, and changing mortgage lending criteria set by commercial banks, in 2024, the Company had the target to reduce the share of residential projects priced below THB3 million to 34%.
Healthcare Business
The Company is committed to sustainable revenue growth across the Group. Within just three and a half years of entering the healthcare business, the Company achieved an EBITDA of THB112 million. This success is driven by several key factors. The hospitals within the Group provide comprehensive healthcare services, adhering to international medical standards. To enhance service capacity, the Company expanded its inpatient bed capacity to 178 and established Centers of Excellence in surgery, cardiology, diabetes, gastroenterology, and physiotherapy. Additionally, the Company is expanding its portfolio by launching specialized hospitals. In 2024, ViMUT Hospital achieved Joint Commission International (JCI) accreditation, a globally recognized standard that enhances credibility and strengthens patient trust, particularly among international patients. The Company continues to build its reputation and brand recognition across the Group. As part of these efforts, ViMUT-Theptarin Hospital underwent a rebranding initiative to modernize its image. The Group fosters synergy by integrating expertise and resources among its hospitals. Strategic collaborations have been established with elderly care hospitals, insurance companies, and international patient agencies. Furthermore, the Company is committed to developing and retaining highly skilled medical professionals through continuous training and long-term engagement strategies. To support its long-term growth, the Company also engages in partnerships with both domestic and international organizations.
Expanding Business Units that Support the Core Businesses
Precast and Construction Businesses
It has been over a year since the Company spun off the two business units from its real estate sector, with the goal of becoming the leading player in the precast and construction industries. In the precast sector, the Company has expanded its market opportunities by offering low-carbon precast products and providing sales and installation services to customers beyond Pruksa Real Estate. In the construction sector, the Company is championing zero-waste construction practices, enhancing the proficiency and quality of its contractors, and improving the green procurement supply chain to support growth in a market in which the private construction sector is valued at over THB300 billion.
E-commerce Business
The Company is creating value and enhancing the living experience through digital platforms designed to meet diverse customer behaviors and demands. The Clickzy platform, which offers home-related products and services, primarily serves individual customers, with plans to expand to enterprise and business clients. The MyHaus application has been developed as a central hub to ensure home convenience and safety. Additionally, the Company provides home decoration, design, and furniture sales services through Wizlah, all tailored to customers’ lifestyles. Other online platforms also offer services that promote energy efficiency and well-being. In addition to adding value to its core businesses, the e-commerce sector is expected to drive increased profitability for the entire Group.
Ensuring Financial Stability, Boosting Investor Confidence, and Reaching a 100% Dividend Payout
In the debenture market, investor concerns over debt repayment postponements and defaults increased throughout 2023-2024. Consequently, funds raised through private bond issuance in 2024 declined by 10% YoY. In response to market uncertainty and heightened concerns within the real estate sector, PSH maintains a strong financial position, securing loan credit facilities from commercial banks of THB23.3 billion, with more than 50% of the facility remaining undrawn. PSH prioritizes risk management, enhances liquidity by diversifying funding sources, and strengthens its financial discipline by strategically investing in projects that generate added value within its core businesses while aligning with business growth trajectories and overall economic conditions. In 2025, the Company will progressively realign its investment portfolio to support the strategic direction of both its real estate and healthcare businesses. PSH is committed to optimizing inventory management by balancing quality and volume, focusing on asset efficiency, and decreasing non-revenue- generating assets. In 2024, the Company accelerated the development of land holdings into new projects, including single-detached houses, condominiums, and mixed-use developments, in collaboration with both domestic and international partners. To further diversify its investment portfolio, PSH is increasing its allocation to recurring income, reaching 10% of total revenue. The Net Interest-bearing Debt-to-equity (Net IBD/E) ratio remains low at 0.31 times. The Company’s cash on hand stood at THB2.5 billion, reflecting security. The Board of Directors has resolved to propose to the 2025 Annual General Meeting (AGM) the approval of a dividend payment totaling THB460 million or THB0.21 per share, representing a 100% payout ratio and reflecting the Company’s commitment to returning value to shareholders.
Personnel Development, Low Carbon Society, and Sustainable Business Development
PSH promotes the integration of innovation into its business operations by implementing the lean process to gain deeper insights into customer needs through data analysis and internal process optimization. These efforts align with the Company’s research and development strategy to deliver the most effective living solutions. Recognizing that these initiatives require a strong understanding among employees, the Company accelerated workforce development in 2024 by introducing a mentoring program as part of The Master Class. Through this program, executives share their expertise, insights, and inspiration with employees to foster leadership and professional growth. Additionally, The PLANTERs platform serves as a structured framework for employee training and development, empowering staff members to become trainers themselves. This initiative encourages knowledge-sharing and skill-building among peers.
Beyond its ultimate goal of achieving net-zero emissions by 2065, PSH is advancing its sustainability agenda by integrating sustainability principles into the business strategies of each unit. The Company is committed to establishing a new standard of living through the development of sustainable products and services across the Group. PSH upholds transparency in vendor selection and registration processes. Homes under the Pruksa brand are designed with optimal air ventilation and constructed using eco-friendly, health-conscious materials to help mitigate climate change. These homes are architected to maximize natural airflow and daylight, reducing energy consumption. To further enhance sustainability and well-being, PSH incorporates clean energy solutions that improve indoor air quality (PM2.5 filtration) and enhance energy efficiency. Additionally, the Company provides comprehensive healthcare services, advanced security systems, and modern facilities, reinforcing its commitment to fostering a low-carbon society and a healthier future.
Beyond promoting sustainability within the organization and delivering high-quality products and services to customers, PSH believes in supporting businesses that create positive social and environmental impact as a key driver of societal progress. The Company remains committed to enhancing quality of life and advancing its Live well Stay well philosophy through the Accelerate Impact with PRUKSA initiative, now in its second year. As part of this initiative, PSH helped establish a platform that enables communities to access pharmacies and pharmacists quickly and conveniently. Additionally, the initiative also supports at-home blood testing services, reducing hospital congestion and improving healthcare accessibility. PSH also supports local businesses, contributes to reducing agricultural waste, and leverages AI technology to analyze illnesses, helping to lower medical costs and ensure timely treatment.
In 2024, the Company received an “AA” rating in the SET ESG Rating from the Stock Exchange of Thailand (SET) and attained a 5-star corporate governance rating (Excellence level)-the highest recognition in governance standards from Thai Institute of Directors. These achievements underscore PSH’s strong commitment to conducting business in alignment with Environmental, Social, and Governance (ESG) principles.
Looking ahead, PSH envisions a future of sustainable growth in both its real estate and healthcare business groups. The Company carefully selects prime locations for new residential developments to ensure that each project effectively meets current customers’ needs. Simultaneously, PSH continues to expand its hospital and healthcare services, enhancing Centers of Excellence to provide world-class care at accessible prices. Beyond achieving business success, PSH is motivated by a greater purpose to uplift lives and enhance well-being across Thai society.
