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Thailand's Preuksa Real Estate (PS): Escalating risks.

Thai Press Reports

| November 13, 2008 | COPYRIGHT 2008 Thai News Services. (Hide copyright information)Copyright

Section: Stocks - As of 3Q08, PS's inventories reached Bt11.3bn, compared with Bt8.0bn in 3Q07 and Bt9.5bn in 2Q08. Of those, Bt6.8bn was classified as land and building under development. At the same time, PS's debt to equity (DE) ratio has also risen; it reached 0.56x in 3Q08, compared with 0.49x in 2Q08. These increases were attributed to the changes in the company's project portfolio, which has now included some condominium projects. Part of these inventories is expected to be cleared in 4Q08 on the ownership transfers of Ivy Ratchada and The Seed Phaholyothin 14, worth a combined Bt1bn.

Nonetheless, PS's inventory and debt levels should continue to rise until …

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