Bangkok - WHA Corporation PCL. (WHA Group) delivered its biggest ever earnings in Q2/2017, its best quarterly earnings since listing on the SET, excluding the quarter when the assets were sold to property fund and trust fund. In Q2/2017, the revenue, including profit sharing from affiliated companies and joint ventures, was at THB 3,407.7 million, equivalent to a 72% increase YOY, and the net profit of THB 972.4 million, equivalent to a 191% increase YOY, due to the strong growth of every group of businesses. “Jareeporn Jarukornsakul”, Group CEO directs the company to move forward with investment expansion to enhance the industrial estate to be the industrial zone for the Aerospace Industry and Parts, Robotics and Smart Automobile in order to serve the government’s EEC policy, and to hold oversea Non-Deal Roadshow in September and November this year.
Jareeporn Jarukornsakul, Group Chief Executive Officer, WHA Corporation PCL. (WHA Group), the leading integrated provider of logistics, property, industrial estates, utilities and power and digital platform, disclosed the Q2/2017 performance ending June 30 2017, that the Company’s total revenue and profit sharing from affiliated companies and joint ventures was at THB 3,407.7 million, increased by THB 1,423.6 million from the same period of last year, or equivalent to 72%. On the other hand, the net profit was at THB 972.4 million, surging 191%, which was a big jump and a record high since the company’s listing on the Stock Exchange of Thailand, excluding the quarter when the assets were sold to the property fund and the trust fund. In Q2, the company received revenue from industrial estates land transfer, as planned, as well as from the increase of the profit sharing of power business from 2 SPPs which started commercial operations in November 2016 and May 2017, with an equity capacity of 62.8 MW. As a result, the total equity capacity is totaling 382.1 MW. In addition, financial costs dramatically decreased due to the repayment of the long-term debt as planned for an approximate amount of THB 5 billion in April.
The operating results of the company for the first six-month period in 2017 reported the total revenue and the profit sharing of the affiliated company and the joint venture at THB4,772.9 million, increased by 29% from THB 3,707.5 million in the same period of last year due to the increase of the land sales in the industrial estate as planned and the revenue from the profit sharing of the 2 power plants belonging to the power business in the first half of this year, as well, as the remarkable decrease of the financial cost caused by the repayment of the long-term debt as planned. As a result, the company reported the net profit of THB 1,053.1 million, jumping from THB 454.4 million, or increased more than 132% from the same period of last year.
Ms. Jareeporn also mentioned the overall picture of the business in the second half of 2017 that the company still moves forward to local and international investment, following its business plan. It is expected that the company will achieve the industrial estate land sales of 1,400 rai. Also, in this year, the company has a plan to enhance the industrial estate to be the industrial zone for the Aerospace Industry and Parts, Robotics and Smart Automobile in order to serve the government’s Eastern Economic Corridor (EEC) policy to establish the Special Economic Zone (SEZ) for the Future of ASEAN. Moreover, the industrial zone phase 1 with the area of more than 3,000 rai in Vietnam will be opened soon around the end of this year.
The revenue of the utilities business is expected to reach the target growth of around 10% due to the increase of customers within the industrial estate, especially customers from power plant and petrochemical sectors who utilize a large amount of water. The power business is also expected to grow of no less than 40% due to the COD of the 3 power plants in the second half of the year as planned.
The property for local logistics business targets 200,000 – 250,000 square-meter rental area. At present, the company has lands which are under contracts and projects under possible negotiation, either Built-to-Suit and Sale and Leaseback, reaching over 80% of the target and there is also the logistics project in Indonesia which is under negotiation with customers for phase 2.
As for the plan to sell the company’s assets to WHA Premium Growth Freehold and Leasehold Real Estate Investment Trust (WHART) and HEMARAJ Leasehold Real Estate Investment Trust (HREIT) around the end of this year is expected to complete as planned and the revenue will be received within quarter 4 of this year. The Built-to-suit assets worth no more than THB 3,090 million are planned to sell to WHART and the Ready-Built assets worth no more than THB 1,690 million are planned to sell to HREIT. Both WHART and HREIT had received the approval of an additional investment in the company’s assets from the unitholders meeting on July 13, and June 21, 2017, respectively.
However, processes of WHART and HREIT are under the consideration of the Securities and Exchange Commission (SEC) of which are expected to be clarified and operated as planned around the end of the year. Thus, the company is confident that the revenue growth of this year will definitely follow the target of THB 13,000 million.
The company has prepared for the Non-Deal Roadshow to meet foreign investors in Hong Kong and Europe in September and in Singapore in November in order to emphasize the company’s being the leading integrated provider of logistics, property, industrial estates, utilities and power and digital service of Thailand and to express its efficiency to serve several projects initiated by the government’s EEC policy.