The success of the year 2016 has reflected that the Company is the leader in providing fully integrated services that cover all customer requirements through our 4 business hubs: Logistics Hub, Industrial Development Hub, Utilities & Power Hub and Digital Platform Hub. With an aim to be the regional leader for our 4 business hubs, the Company has achieved the best results since the establishment of the Company. Our 2016 revenue increased 52% to our record-high of THB 18,318.8 mm from THB 12,064.1 mm in 2015 and our net profit increased to 48% and reached the new high-record at THB 2,898.2 mm in 2016 from THB 1,953.7 mm in 2015. This revenue and net profit growth in 2016 is mainly attributable to the success of the establishment of Hemaraj Leasehold Real Estate Investment Trust (“HREIT”) and the assets monetization to WHA Premium Growth Real Estate Investment Trust (“WHART”) which generates the Company’s revenue from sale of properties of THB 6,279.5 mm and THB 4,145.0 mm, respectively. Moreover, the Company successfully completed its loan repayment plan for the acquisition loan of Hemaraj Land and Development Public Company Limited (“Hemaraj”). The Company emphasizes on not only the Company’s financial stability but also our platform to expand the business and earnings continuously.
After the acquisition of Hemaraj, the Company has restructured its organization into 4 core business hubs: Logistics Hub, Industrial Development Hub, Utilities & Power Hub, and Digital Platform Hub in order to create the sustainable growth and provide fully integrated services to our valued customers. Moreover, the Company has designated the experienced and expertise management team of each business hub for contributing the overall vision and supporting the Company’s growth. Furthermore, the Company has supporting teams such as Corporate Finance, Accounting, Corporate Strategy, Business Intelligence, and Legal Department, as centralized resources to support and drive to maximize efficiency of all our 4 business hubs, reduce work redundancy and enhance working flexibility. In addition, the Company set the long-term strategic plan under the management of WHA group and delegate the strategies into each business hub and related department to collaborate the Group network as a spider web. The Company believes that this management system will support and facilitate the Company’s future expansion.
Moreover, the Company has realized that the Utilities & Power Hub will be the potential business hub which generates the recurring income and has the potential to grow within and outside Industrial Estates including international expansion. In 2016, the Company has completed the Group’s restructuring process with WHA Utilities and Power Public Company Limited (“WHAUP”) as the flagship company will be listed in the Stock Exchange of Thailand (“SET”) within the first half of 2017. The listing of WHAUP in the SET is another significant milestone in enhancing the Company’s core value and future company growth.
Regarding the overseas expansion in 2016, the Company has been invited from the Vietnamese in developing land for industrial estates in Vietnam with an area over 20,000 rai. Currently, the Company is in the process of submission of Investment Registration Certificate and is expected to be granted this certificate within the first quarter of 2017. For Logistics Hub, the Company has handed over Built-to-Suit Distribution Center in Indonesia which is the first overseas logistics facility of the Company. Furthermore, the Company has planned to further invest in ASEAN region, especially in Indonesia, CLMV countries (Cambodia, Laos, Myanmar, and Vietnam), and Malaysia to sustainably grow the Company in the future, to support the opening of the ASEAN Economic Corridor (“AEC”) as well as to meet the Company’s goal to be the leader of 4 business hubs in providing fully integrated solution.
For domestic expansion, the Company is well-equipped to be responsive to Government’s Eastern Economic Corridor (“EEC”) located in Chonburi, Rayong, and Chachoengsao. The EEC includes infrastructure development of deep-sea ports, U-Tapao International Airport to support the Aviation Industry and Robotics as well as the motorway linkage between Bangkok - Chonburi - Pattaya - Map Ta Phut and high speed train between Bangkok – Pattaya - Rayong. Currently, the Company has land available for future development approximately 11,000 rai in the EEC area. In addition, the Company assigns the Company’s representative to collaborate with the Government to support and develop this Government Project.
To support the Company’s expansion both domestic and international footprint, brand recognition plays an important role. The Company believes that strong brand and logo are key success factors for the company not only building and keeping customer relations but also creating credibility and trust worthy, as well as competitive advantage, and long-term financial return. In 2016, the Company has announced new branding and new logo, representing the 4 integrated business hubs with the new business slogan “Your Ultimate Solution Partner” and using the “WHA Group”. Furthermore, the Company has changed logo from the solid base line to the curve line to represent speed and power and maintain the form of alphabet and color in navy and red.
In addition to the announcement of the new branding and new logo to support the Company’s growth, the Company also focuses on personnel development in order to be ready for the growth of all our 4 major business hubs. All of the employees are considered as the most valuable and important resource to the company; therefore, after the acquisition of Hemaraj, the Company has training courses, seminars and activities for the employees of both companies to blend different culture to work together as well as learn and exchange ideas. Moreover, the Company will continue to grow career path to be new management team to work together as a team and create the future growth of the Company.
Finally, I would like to thank all our stakeholders, our loyal shareholders, our valued customers, our financial institutions and our strategic partners for their continuing support to the growth of the Company. I also offer sincere appreciation to all our Board of Directors, management team and employees for their dedicated work and commitment during the past year for the Company’s growth and success. For the year 2017, we are confident that the Company will seek to move forward and grow sustainably, dedicate and work to create the best value for society, all our shareholders, our customers, and all our stakeholders.
Ms. Jareeporn Jarukornsakul
Group Chief Executive Officer
WHA Corporation Public Company Limited