Bangkok – WHA Corporation PCL (WHA Group) has announced three good news, showing outstanding Q3/2023 performance with total revenue and share of profits of THB 2,745 million and net profit of THB 623 million, an increase of 141% YoY. This is divided into normalized total revenue and share of profits of THB 2,706 million, and normalized profits of THB 609 million, an increase of 92% YoY. The growth has been driven by the success of 4 business hubs. Recently, the Board of Directors has approved an interim dividend payment for 2023 of 0.0669 baht per share. The XD will be posted on 22 November 2023 and the payment is scheduled on 8 December 2023. The Group CEO Ms. Jareeporn Jarukornsakul said the company is likely to achieve its targeted total land sale of 2,750 rai, signaling a positive outlook for steady growth in the fourth quarter due to the revenue recognized from land sale of 250 rai to Changan Auto Southeast Asia Co., Ltd, one of China's four leading automotive groups. The revenue from asset sales will be directed to REIT. Also, the company has received the highest rating of "AAA" in SET ESG Ratings 2023, marking the fourth consecutive year of inclusion into the lists of Sustainable Stock.
WHA Corporation PCL or WHA Group
reported
its Q3/2023 earnings with total revenue and share of profits amount to THB 2,745 million, an increase of 25%, and net
profits of THB 623 million, an increase of 141%.
This is divided into normalized total revenue and share of profits of THB 2,706 million, an increase of 21%, and normalized profits of THB
609 million, up 92% YoY.
In
the first nine months of 2023, the company’s total revenue and share of profits
amounted to THB 8,434 million and net profits of THB 2,012 million. When considering
regular performance, the company had normalized total revenue and share of
profits of THB 8,277 million, an increase of 25%, and normalized profits stood
at THB 1,932 million, an increase of 100% YoY.
The
improvement in earnings reflects the company’s financial strength. As a result,
the Board of Directors has approved an interim dividend payment for the first 9
months, amounting to 0.0669 baht per share, with the XD date set for 22
November, and the dividend payment is scheduled for 8 December. This is in line
with our 'A-' credit rating and 'Stable' outlook, highlighting the company’s consistent
and strong growth across its four business hubs, both in Thailand and Vietnam.
This also indicates the company’s strong capabilities in financial management, allowing
it to maintain financial stability. These capabilities include the monetization
of assets into REIT, and sourcing capital from both the equity market and
financial institutions, including the issuance of Sustainability-Linked debentures
with a total value of THB 1 billion to support future business expansion.
Ms.
Jareeporn Jarukornsakul, Chairman of the Executive Committee and Group CEO of
WHA Corporation PCL or WHA Group, said the overall performance for the
first 9 months of 2023 had shown remarkable growth, driven by all four business
hubs including logistics, industrial development, utilities (water and power),
and digital solutions, which have expanded in response to the growing trends in
investment and production bases relocation which has attracted long-term
investments, both domestically and internationally. It reflects WHA Group’s commitment
to pursuing its 'Mission to The Sun' to become a Technology Company in 2024.
These factors have had a positive impact on the performance of all four
business hubs.
Logistics Business has achieved
outstanding performance by securing new lease contracts with both short-term
and long-term customers and has also successfully delivered leased spaces to
customers according to the plan. In the first nine months,
the company signed lease contracts for Built-to-Suit and Ready-Built Factories
and Warehouses an additional 81,196 square
meters. The company also secured short-term lease contracts with high returns for
a total of 142,255 square meters, surpassing
the full-year target of 100,000 square
meters. At present, the company owns and manages a total of 2,845,132 square meters of warehouse space. Given
the continuous high demand for high-quality warehouse space, therefore, in both
Q3/2023 and the first nine months of 2023, the company could recognize revenue
from its rental property business at THB 286 million and
THB 798 million, respectively.
Following the success of the
high-quality warehouse and distribution center in Phase 1 of the WHA Mega
Logistics Center Theparak KM. 21, which has a land area exceeding 400 rai,
there is a need to accelerate the development of Phase 2 to accommodate the constant
demand for leased space. Most recently, Webasto Co., Ltd, a major automotive
component supplier, signed a Built-to-Suit Warehouse lease contract for an area
of 13,083 square meters within Phase 2. Several other customer groups,
including consumer product manufacturers, distributors, and 3PLs, are currently
in negotiations. The company anticipates that these customers will finalize
their lease contracts within this year.
Furthermore,
the company is planning to develop Built-to-Suit Factories (expansion phase)
for customers in the electric vehicle battery manufacturing industry within the
WHA Chonburi Industrial Estate 1. This expansion aims to meet the growing
demand for Built-to-Suit Factories, similar to the WHA Mega Logistics Center at
KM. 23 (in bound), with a total leased area of 46,000 square meters, which has
garnered significant interest from customers. Currently, several customers have
already signed lease agreements. For instance, Dynapac Road Equipment (Thailand)
Co., Ltd, a leading machinery manufacturer for road construction, has signed a
lease agreement to develop a Built-to-Suit Showroom for product display. Furthermore,
discussions are underway with 3PLs and consumer product distributors regarding
potential rental space in this project.
“The
company is also dedicated to developing modern office building projects for
lease. Currently, there are five office building projects with a total space of
more than 120,000 square meters. Besides, new projects are coming up including the
Quant Sukhumvit 25, the 7-storey office building, located in the Sukhumvit-Asoke
area, with a commercial area spanning 9,900 square meters. The construction of this
project has already been completed, and tenants have started signing agreements
and moving in. Furthermore, there is a mixed-use building project with over
3,000 square meters in the business district near the Surasak BTS Skytrain station.
It is expected to be completed in early 2024. Lastly, a Built-to-Suit Medical
Center Project with an area of more than 6,900 square meters has been signed
with a tenant, and the construction has already started in May this year.”
WHA
Group is still committed to business expansion to cover the country’s strategic
locations while also seeking new investment opportunities in Vietnam. The
company is planning to develop the first warehouse for rent in Vietnam with an
area of 35,000 square meters. The
project is located in the northern part of Vietnam, near Hanoi city.
Construction is expected to commence by the end of this year.
Concurrently,
the company places a strong emphasis on sustainable business practices throughout
its operations. This commitment can be seen in its pioneering Green Building
and Green Logistics, which paves the way for the sustainable logistics
operations, aiming for Carbon Neutrality and Net-Zero Carbon Emissions. The
company is also in negotiation with several EV truck service providers and expects
to sign lease contracts within this year.
Regarding
the progress of the monetization of assets and/or leasehold rights to WHART,
the unit holders of the WHART Trust have recently approved further property
investments. The company aims to sell leased warehouse assets totaling
approximately 142,583 square meters, with a total value of THB 3,567 million.
It is expected to recognize the revenue within the 4th quarter of this year. Industrial Development Business The growing trend of shifting
investment and production base has resulted in the rising demand for industrial
land areas from foreign investors. This trend has had a positive impact on WHA
Group’s industrial development business, reaffirming WHA Group’s leadership
position in industrial development in Thailand. Furthermore, the company is
actively expanding its business in Vietnam to ensure continuous growth. In the
first 9 months of 2023, the company reported total land sales of 2,032 rai
(1,617 rai in Thailand and 415 rai in Vietnam) and signed Memorandums of
Understanding (MoUs) for an additional 991 rai (561 rai in Thailand and 430 rai
in Vietnam). In Q3 and the first 9 months of 2023, the company achieved total
revenue from its industrial development business amounting to THB 1,012 million and THB 3,535 million, respectively.
The
surge in land sales reflects Thailand's investment direction, influenced by the
trend of investment and production base relocation into the Southeast Asian
region. This shift has been driven by the U.S.-China Trade War as well as
global geopolitical issues such as the Russia-Ukraine war and the Israel-Hamas
conflict. As a result, more foreign investors, including those from China,
Japan, Taiwan, and the United States, are shifting their investments to
Thailand. At the same time, the need for production base expansion has
contributed to attracting long-term investments. As of the end of Q3/2023, the
company has a backlog of more than 1,493 rai (1,252 rai in Thailand and 241 rai
in Vietnam).
At
present, WHA Group operates 12 industrial estates in Thailand, all poised to support
investors’ needs, including the new WHA Industrial Estate Rayong, Phase 1
(1,100 rai) which is under construction. Some customers have already signed
land purchase agreements and/or made reservations. Among them are automotive
part manufacturers and consumer goods producers and distributors. The company
anticipates that more clients will sign agreements or make reservations for
over half of the Phase 1 project area by the end of 2023, prompting the company
to accelerate the development of Phase 2 (1,100 rai) soon. In addition, WHA
Group plans to construct WHA Saraburi Industrial Land 2 (2,400 rai). The
construction is expected to commence in 2026. Furthermore, the company has also
expanded three industrial estate projects: WHA Eastern Seaboard Industrial
Estate 3, Phase 3 (630 rai), WHA Rayong 36 Industrial Estate (480 rai), and WHA
Eastern Seaboard Industrial Estate 4,
Phase 3 (330 rai).
Most
recently, the company has concluded a big deal by signing a land purchase
agreement with Changan Auto Southeast Asia Co., Ltd., one of China’s four leading
automotive groups. The agreement covers 250 rai of land within the WHA Eastern
Seaboard Industrial Estate 4. The project received support from the Board of
Investment (BOI) for the establishment of an electric vehicle (EV)
manufacturing plant in Thailand to produce various types of EVs, including BEV,
PHEV, and REEV (Range Extended EV), with an annual production capacity of
100,000 vehicles. There are also plans to establish EV battery manufacturing
plants. This land sale not only highlights Thailand as a prominent manufacturing
hub but also has the potential for establishing research and development
centers for automotive in the future.
In
the first nine months of 2023, WHA Group has successfully secured a total land
sale of 415 rai and signed MOUs for an additional 430 rai in Vietnam, as a
result of the shifting of capital and Vietnam's growing economy which is attracting
foreign investments. The company currently operates one industrial estate, WHA
Industrial Zone 1-Nhge An, Phase 1, covering 900 rai. Over
77% of Phase 1 has been sold to customers in various industries including
automotive parts, food processing, construction materials, and electronics
equipment. Given the high demand for industrial areas, WHA Group is thus accelerating
the construction of Phase 2, which spans across 2,215 rai and is currently
under construction. Leading global electronic equipment manufacturers have
signed land lease agreements for over 300 rai, primarily used for manufacturing
a wide range of electronic components. In Q3/2023, a large mobile device
manufacturer from China has also reserved around 260 rai of land, mainly used
in the production of camera lenses and related components. Various electronics
equipment manufacturers have also reserved over 150 rai for setting up
production plants within WHA Industrial Zone 1-Nghe An Phase 2 as well.
Furthermore,
the company has plans to develop two additional industrial zones, with a
combined area of 20,950 rai (3,350
hectares). This includes the WHA Smart Technology Industrial Zone - Thanh Hoa, covering
5,320 rai. The Project Master Plan has recently been
approved, and the construction is scheduled to commence in the latter half of 2024. Additionally, the WHA Smart Eco Industrial Zone - Quang
Nam, covering 2,500 rai, is
anticipated to secure licenses in 2026 or 2027,
with construction set to begin upon obtaining these licenses.
“Due
to the trend of investment and production bases relocation, coupled with the
significant land price rise, and the rise in demand for industrial areas from
foreign investors, especially the electric vehicle manufacturers, electronics
equipment producers, and consumer goods distributors, the company anticipates
additional land purchase agreements to achieve the original target of 2,750 rai
as promised.”
Utilities Business (Water) The
company's continuous growth is reflected in its revenue from the overall
utilities business for Q3 and the first nine months of 2023, totaling THB 713
million and THB 2,142 million, respectively. Besides, the company has total water
sales volume and management both domestically and internationally, reaching
41.4 million cubic meters and 116.7 million cubic meters for Q3 and the first
nine months of 2023, respectively, showcasing growth in sales and water
management both domestically and internationally.
In
the third quarter of 2023, there was an increase in the volume of domestic
water sales, totaling 32.1 million cubic meters, driven by the overall sales growth
across all products especially in raw water and value-added water. This growth
was driven by the rising demand from energy sector customers including Gulf
SRC, Gulf TS3, and TS4. Also in the third quarter, the construction of a Premium
Clarified Water production plant was completed and started distributing water
to major customers within the WHA Eastern Seaboard Industrial Estate 4. The
contract involves an annual volume of 2.9 million cubic meters, with a total
estimated value of approximately THB 1,800 million.
The
volume of water sales and management in Vietnam during the third quarter and
the first nine months of 2023 increased to 9.2 and 24.5 million cubic meters,
respectively. The growth is driven by increased water sales in the Duong River
project due to the customer base expansion and the growing demand from existing
customers in line with Vietnam's economic growth. As a result, the company
recognized a share of losses from the Duong River project in the first nine
months of 2023, amounting to THB 1.8 million, declining from
the same period in 2022 which recognized a share of losses of THB 90.2 million. It is expected that water sales and management in
Vietnam will continue to grow further as operations of customers within the WHA
Industrial Zone 1-Nghe An expand, along with the company's industrial
development business in Vietnam.
Power
Business
The company can recognize its normalized share of profits from investments in
associates and joint ventures, excluding accounting gains/losses from exchange
rates, and revenue from the solar power business in the third quarter and the
first nine months of 2023, amounted to THB 503 million and
THB 1,186 million, respectively. When
considering the business performance for Q3/2023, the normalized share of
profits from the power business has seen a year-on-year increase due to the
recognition of profits from SSPs power plants. The margin derived from power
sales to industrial customers has also risen year-on-year, driven by the
increase in natural gas costs as reflected in the upward trend of Ft, while the
natural gas costs have been on a continuously declining trend.
For
the solar power business in Q3/2023, the company signed nine new solar
projects, of which six were Private PPA contracts with the installed capacity
of 12 MW, and three were EPC Service contracts with the capacity of 0.8 MW. The
new contracts drove the company to have the total accumulated Private PPA
contracts to 179 MW at the end of Q3/2023, and the commercial operations of
solar power plants were approximately 104 MW, resulting in a total of installed
capacity of 730 MW equity.
“The company continues to focus on expanding the
installation of solar power projects. Recently, we have reached an agreement
with AutoAlliance (Thailand) Co., Ltd to install the Floating Solar project
with the electricity-generating capacity of 8 MW, covering an area of 60,000 sq
m. It is expected that the project will start COD by the third quarter of next
year and the installation of Floating Solar system will help AAT using clean
power and reducing carbon dioxide emissions up to 5,400 tons per year”.
Regarding
the investment in solar power projects that have been selected by the Energy
Regulatory Commission, the company has been granted rights to develop five
renewable energy power plants under a Feed-in Tariff (FiT) scheme Phase 1 with
the combined installed capacity of 125.4 equity MW. The five projects are in
the process of Power Purchase Agreements (PPA) signing, which is due to occur
early 2024 with the commencement of COD during 2029-2030.
Furthermore,
the company remained committed to expanding its power business in Thailand and
Vietnam, as well as exploring opportunities in new markets with a focus on
environmentally friendly clean and renewable energy projects. This also
involves the adoption of new technologies and innovations in its business
operations. This is exemplified by the successful collaboration with its
partners, PTT and Sertis AI Energy Co., Ltd, under the joint venture “RENEX
TECHNOLOGY” to develop and operate the Peer-to-Peer Energy Trading Platform,
which will use Blockchain technology. Presently, 54 leading operators have
expressed their interest in joining the energy trading platform.
Digital
Business, WHA
Group continues to move forward its “Mission To The Sun”, which comprises nine
projects to develop new products and services, enhancing the development of
organization and hum the use of resources for optimal benefit with the Group's
ecosystem an resources and leading digital transformation to become a
Technology Company in 2024. Currently, three projects have a clearly structured
progress including the Green Logistics, which aims at promoting the use of
green technology in logistics business to enhance the efficiency of energy
consumption and lower logistics costs for the country in long term.
Additionally, the Digital Health Tech involves the application development that
facilitates comprehensive health management, while the Circular Economy project
promotes the most beneficial utilization of resources within the company’s
ecosystem such as turning industrial waste from one factory into raw materials
for another or supplying industrial waste to waste-to-energy power plant.
With the strong commitment to
driving sustainable business development, WHA Group has been one of the listed
companies chosen as a Thailand Sustainability Investment Stock for three
consecutive years from 2020-2022. This recognition reflects the company’s
strong commitment to creating sustainable growth in line with the principles of
Environment, Social, and Governance (ESG). Recently, the Stock Exchange of
Thailand has rebranded THSI (Thailand Sustainability Investment) to SET ESG
Ratings. WHA Group has received the highest rating of "AAA" in SET
ESG Ratings 2023, marking the fourth consecutive year of
inclusion into the lists of sustainable stock. It underscores the company’s
dedication to conducting business with a focus on sustainability, both in terms
of risk and opportunity management, competitiveness, and recognition by
stakeholders. These factors directly relate to the company’s capability to
achieve long-term sustainable business growth.
Besides,
the company recently grabbed six Eco Industrial Town awards at the “Eco
Innovation Forum 2023”, the biggest seminar and forum on environmental
innovations in Thailand held by the Industrial Estate Authority of Thailand
(IEAT), in cooperation with the Water and Environment Institute for
Sustainability and the Federation of Thai Industries. These awards serve as a
testament to the success of WHA Group’s industrial development business and
reinforce the company’s commitment to developing business hand in hand with
environmental preservation, while creating a sustainable community, under its
“The Ultimate Solution for Sustainable Growth” mission.
Furthermore,
the recent successful issuance of Sustainability-Linked debentures No. 2/2023 with
total value of THB 1 billion has been able to address the demand from institutional
investors and High-Net-Worth investors. This reflects investor confidence in
the company and its alignment with the “WHA: WE SHAPE THE FUTURE” mission to
build sustainable growth. The proceeds from the debenture offering will be used
to repay existing debts and/or serve as working capital to support the
company’s operations.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น