WHA Group posts profit in Q1/2018 of THB 780 mm, 866% Increase , Continues expansion to reinforce the business growth
Bangkok – WHA Corporation PCL. (WHA Group) announced total revenue and share of profit of associates and joint ventures in Q1/2018 of THB 3,447 mm, increased by 153%YOY and net profit of THB 780 mm, increased by 866% from increasing in revenue from land transfers, revenue recognition from the asset monetization to HREIT, increasing in sale volume of utility and increasing in share of profit from investments in associates from power business. Ms. Jareeporn Jarukornsakul, Chairman of the Board of Directors and Group CEO, is confident that business overview in Q2 will be along with the Company’s business plan.
Ms. Jareeporn Jarukornsakul, Chairman of the Board of Directors and Group Chief Executive Officer, WHA Corporation PCL. (WHA Group), the leader and fully integrated service including logistics facilities, industrial estates, utilities and power and digital platform, announced that the Company’s total revenue and share of profit of associates and joint ventures in Q1/2018 reached THB 3,447 mm, increased significantly from THB 1,365 mm in the same period of last year. The Q1/2018 net profit was THB 780 mm which jumped from THB 81 mm, or significantly increased 866% compared to the same period of last year.
The key drivers of robust Q1/2018 performance include the revenue from land transfers, increasing in sale volume of utility in line with demand from the Company’s clients in industrial estates particularly from petrochemical and energy sector as well as the revenue recognition from the asset monetization to HREIT with asset value of THB 1,590 mm on January 4th , 2018.
In addition, the company’s share of profit from investments in associates from power business has increased as a result of the Commercial Operation Date (COD) of the 4 SPPs in 2017 and another COD of Gulf TS 4, on January 1, 2018. Therefore, the total power portfolio as of Q1/2018 is 510.5 equity MW.
“The solid growth in Q1/2018 performance resulted from profitable in industrial land sales, growing in utility business, increasing in share of profit from investments in associates from power business by 162%, as well as a decreasing in financial costs as a result of the Company’s rating by TRIS rating at “A-“ with “Stable” outlook in the forth quarter in 2017”, Ms. Jareeporn added.
Chairman of the Board of Directors and Group Chief Executive Officer, WHA Corporation PCL. (WHA Group) also expressed her confidence in business outlook in Q2/ 2018 will keep growing as planned. Especially, the industrial estate business will be benefited from the EEC act. which the Company has industrial land located in the EEC promotion area up to 9,000 rai. Moreover, there have been a number of potential customers , including tradition industry such as automotive industry, consumer product industry and also the modern industries supported by the government such as aerospace industry and advance automobile industry, consistently visit to the Company’s industrial estate. Therefore, the 2018 land sale target of 1,400 rai can be confidently achieved.
Regarding investments in overseas, the Company has invested in the industrial estate in Vietnam, which EIA has been already approved and it is expected to recognize revenue this year. In the meantime, the Company is investing in utility business in Vietnam which will be operated by WHA Utilities and Power PLC. (WHAUP). Moreover, Myanmar is another potential country that the Company does feasibility study and is under consideration the appropriateness type of business to invest.
For the asset monetization to WHA Premium Growth Real Estate Investment Trust (WHART) and Hemaraj Leasehold Real Estate Investment Trust (HREIT) is expected to achieve and will recognize revenue within Q4/ 2018 as planned.