WHA Group announced Q2 net income growth 247% with land transfers of approx. 600 rai in H1/2019 and revealed a big lot of industrial land sales in H2/2019 Plus, Joint venture with Vietnamese Partner
Bangkok - WHA Corporation PCL (WHA Group) announced its Q2/2019 performance with total revenue and profit sharing from investment in subsidiaries and joint ventures at THB 3,074 million, rising 52%, and net income at THB 1,052 million, surging 247%, comparing to the same period last year. As the Company successfully transferred land of approx. 600 rai during the first half of 2019, together with higher profit sharing from the power business after the GHECO-ONE Power Plant resumed the normal operation and revenue from utilities business, total revenue and profit sharing from investment in subsidiaries and joint ventures and net income of H1/2019 were THB 6,877 million and THB 1,459 million, raising 26% and 35%, respectively. Group CEO "Miss Jareeporn Jarukornsakul" said that the business will continue to grow in the second half of this year, a big lot of industrial land sales contract signing in pipeline, spurred by China-US trade wars and the development of Eastern Economic Corridor (ECC). Supported by investment plan in Vietnam, the utility business will increase water capacity over 109,500,000 m3/year as well as the Industrial development in Vietnam is under negotiation. In Addition, the Company is preparing to sell assets into WHA Premium Growth Freehold and Leasehold Real Estate Trust Fund (WHART) and Hemaraj Leasehold Real Estate Investment Trust (HREIT) trust funds to drive its growth.
Miss Jareeporn Jarukornsakul, Chairman and Group CEO of WHA Corporation PCL or WHA Group, Thailand's leading fully-integrated provider of logistics, industrial estate, utilities & power and digital platform, revealed Q2/2019 that the Company had total revenue and profit sharing from investment in subsidiaries and joint ventures at THB 3,074 million, rising 52% YoY, and net income at THB 1,052 million, surging 247% YoY which is due mainly to Company successfully transferred land of approx. 600 rai during the first half of 2019 benefited by trade wars and the government support on the EEC to attract foreign investment into Thailand.
Meanwhile, the Company recorded higher revenue from the utilities business due to the rising sales of water and higher water demand from power plants. This was in line with small power plants, which have been gradually completed and achieved commercial operation date (COD). So far this year, new power plants, which were opened for COD included Gulf NLL2 Power Plant in January while the GHECO-ONE Power Plant resumed the normal operation in Q1/2019 after the 39-day closure for maintenance.
As a result, the total revenue and profit sharing from investment in subsidiaries and joint ventures and net income of H1/2019 were THB 6,877 million and THB 1,459 million, raising 26% and 35%, respectively
The Chairman and Group CEO of WHA Group noted about the business outlook in the second half of 2019 that the business will continue to expand significantly with customers waiting to sign new warehouse rental contracts as expected at around 250,000 sq.m., thank to E-Commerce business and the high season of industrial estate business. Moreover, all WHA Group's industrial estates are in the EEC's promotion zone while trade wars still remain.
WHA Group also revealed the investment in Vietnam project which is a joint venture with Vietnamese partner by acquiring 34% stake of Duong River Surface Waterplant JSC ("SDWTP") - a water supplier in Hanoi, Vietnam, with current capacity of 54,750,000 cubic meters per year and is under construction to increase capacity to 109,500,000 cubic meters per year. (Planning to the commercial operation on the 2H/2019). In term of industrial development, the Company is under negotiation with potential Vietnamese partner.
For the power business, the Company is expanding both domestically and internationally, including the solar rooftop projects, which have been signed to operate with the combined capacity of 14.5 MW. WHA Group expects to revise up the service target in the future.
Moreover, WHA Group plans to sell its assets valued THB 4,880 million to WHART and approx. THB 1,400 million to HREIT and forecasts to realize revenue from the asset sales in Q4/2019 and Q1/2020, respectively.