WHA bullish on EEC-driven growth
SET-listed WHA Corporation Plc is secure in its second-half outlook amid high hopes for the government’s flagship Eastern Economic Corridor (EEC) scheme.
“We expect tremendous growth, especially from our industrial estates and logistics development, because our main locations are situated in the EEC area,” said chairman and chief executive Jareeporn Jarukornsakul. “The government is promoting development of 10 targeted industries that are also in line with the group’s mission, such as auto parts manufacturing, consumer products, aerospace and nextgeneration automotive.”
Ms Jareeporn said WHA has been in talks with five large companies interested in space at WHA’s industrial estates.
She said the concrete results of those deals will be concluded in the remaining months of the year.
“I am confident that land sales in the industrial estates will meet the plan set at the beginning of 2018,” Ms Jareeporn said.
In addition, WHA is in talks with two large customers on contracts for warehousing and distribution centres with an area of 170,000 square metres.
Ms Jareeporn said the group is prepared to monetise its assets via WHA Premium Growth Real Estate Investment Trust (WHART) and Hemaraj Leasehold Estate Investment Trust (HREIT) in the fourth quarter, with revenue to be recognised within that period.
WHA reported first-half revenue from all subsidiaries of 5.47 billion baht, up 14.6% year-on-year. Net profit for the period rose 3% to 1.083 billion baht, whereas profit from normal operations, excluding accounting implications of currency exchange, was 1.128 billion baht, up 38%.
Key drivers included asset monetisation via HREIT to the tune of 1.59 billion
baht at the start of 2018, as well as increasing sales volume of utilities service in line with demand from customers at the industrial estates.
The commercial operation dates of five small power plant projects from the second quarter of last year brought WHA a record increase in share of profit from its power business, which has installed capacity of 510.5 megawatts — excluding solar rooftop service under negotiation with several customers, accounting for 5-6MW.
The group expects capacity of solar rooftop service to reach 10MW in 2018.
WHA forecasts 2018 revenue to grow by 25%, with land sales of 1,400 rai.
Last year, WHA posted revenue of 12.4 billion baht, down 35.8% year-on-year.
WHA shares closed yesterday on the Stock Exchange of Thailand at 3.74 baht, down 12 satang, in trade worth 454.7 million baht.