WHA Group welcomes Tris Rating’s “A-” company rating with “stable” outlook, confirming the strength of its 4 business hubs and effective financial management amidst coronavirus pandemic

Bangkok – WHA Corporation Public Company Limited or WHA Group (“the Company”) receives good news as TRIS Rating affirms the company rating at “A-” with “stable” outlook, reflecting the Company's stable revenue structure from logistics business, utilities business and dividends from power business including revenue from assets monetization to REIT according to the Company's investment policy, as well as the financial flexibility and efficiency in financial management amidst the Covid pandemic, and a distinct business plan for all 4 business hubs

Ms. Jareeporn Jarukornsakul, Chairman and Group CEO of WHA Corporation PCL., said that TRIS Rating recently announced the Company rating of WHA Corporation at “A-”, with a ‘Stable’ outlook, reflecting a leader in the logistics business and industrial estate business. Recently, the Company has generated a higher rental revenue from an increasing in demand for warehouses and factories, as a result of the expansion of e-commerce and consumer businesses, an expectation of increasing land sales after the recovery of Covid-19 situation, a solid business expansion plan in Vietnam, a consistent revenue from utilities business due to strong customer base and a higher utilities demand of power plants, as well as a continued dividend income from power business. Furthermore, this company rating has shown the Company’s financial discipline and liquidity, together with the flexibility and efficiency in financial management that results in the Company's stability from asset monetization to REIT.

The credit rating affirmed to the Company not only reflects the strong fundamentals of the 4 business hubs, efficiency in financial management, strong financial position, and the ability to generate profits in the medium and long term but also reflect the Company’s capability of various sources of funding from the capital market and financial institutions, thereby supporting the continuous and future growth of the Company’s businesses.

The Company’s Group CEO added that despite the Covid-19 pandemic’s widespread impact on the country’s economy, WHA Group was able to maintain its positive situation. The logistics business grows continuously from e-commerce expansion and consumer businesses. The industrial estate business benefits from production base relocation by foreign investors as a result of China Plus One policy, as well as the relaxing of inbound travel restrictions, enabling investors to enter the country. Utilities and power businesses continue to generate revenue. In addition, the sale of assets to WHART will be in the fourth quarter as planned.

The Logistics business recorded strong performance as the Covid-19 pandemic increased demand for ready-built factories/warehouses, as well as high-quality distribution centers which enabled the Company to currently have short-term lease contracts of over 100,000 sq.m, higher than the annual target. In addition, the Company is ready to hand over five new projects within this year, covering more than 110,000 sq.m. The Company also launched “WHA Office Solutions” – offices for rent in high-potential locations that can meet the needs of investors looking for flexible type of offices. The Company is also speeding up new product and service offerings through smart technology that will increase efficiency and reduce operation costs of logistic customers in the long term. It also supports data collection and analysis through fully-integrated service solutions in cooperation with business partners and startups.

For the Industrial Estate business, the Company currently operates 12 industrial estates, 11 in Thailand and one in Vietnam. The Company plans to develop three new industrial estates in Thailand and two more in Vietnam, in line with its development plan to open new industrial estates to serve the needs of investors from across the world. Furthermore, the Company is also accelerating the development of Smart Eco Industrial Estates with integrated solutions, including Smart Energy, Smart Utilities, Smart Mobility, and others to support the investment and growth of customers in the future.

The government’s policy to reopen the country and lift travel restrictions, coupled with the improving Covid-19 situation following the vaccination programs in Thailand and in Asia, are positive factors to stimulate trade and investment in the region, being a benefit for the Company’s industrial estate business. At the same time, China is facing a serious energy shortage, driving many investors to relocate their manufacturing bases to Thailand and Vietnam.

In the Utilities business, the volume of water sales and management in Thailand and Vietnam continues to grow, due mainly to rising demand from existing and new customers such as power plants in the petrochemical sector. Several factories implemented a Bubble and Seal measure, which helped control the spread of Covid-19 while not affecting the volume of water consumption during the pandemic. In addition, the Company plans to develop and offer value-added water products to serve customers in industrial estates. Some projects are under development and construction, such as the wastewater treatment plant in WHA Rayong 36 Industrial Estate, with a capacity of 2.7 million cubic meters per year, the demineralized water plant with a capacity of 1 million cubic meters per year, and the alternative source of raw water project with a capacity of 6 million cubic meters per year.

For the Power business, the Company is gearing up to increase investments in renewable energy, reflecting its leadership in providing fully integrated services for solar energy under Private Power Purchase Agreements (Private PPA). This will deliver all types of products to business operators, and develop energy solutions and innovations for customers inside and outside industrial estates. Currently, the Company has secured contracts from solar energy projects for more than 63 MW, out of the 90 MW for 2021 target. Nine power plants are under construction and expected to have commercial operations date (COD) within this year, with a combined capacity of 10.9 MW.

With its strategy to focus on digital technology and innovations, the Company has joined hands with leading partners including PTT and Sertis to develop an exchange platform to buy and sell energy through Blockchain technology. The Company believes that this will create an opportunity to expand the capacity of renewable energy significantly and offer a new business model. It will also allow business operators in industrial estates to use electricity at reasonable prices and costs.

The year 2021 is considered a very challenging year for the whole world. The Covid-19 pandemic is a catalyst to transform people’s daily living and the way to do business. The Company gives importance to digital transformation by developing modern IT systems and restructuring its organization, work process, and the overall business management ranging from thinking, design, customer experience, resource management especially on information, to the enhancement of company culture. All of these will enhance the Company’s competitiveness to respond to the changing market, drive business sustainability and grab new business opportunities in the future