WHA Group Posts THB 12,077.9 Million in Total Revenue and Share of Profits for 2021, Rising 28.8%; Normalized Profit Up to THB 2,709.6 Million; Giving Green Light to Pay Additional Dividend at 0.0735 Baht/Share

Bangkok – WHA Corporation PCL (WHA Group) announced its 2021 performance with total revenue and share of profits of THB 11,963.9 million and net profit of THB 2,590.1 million. The company’s normalized total revenue and share of profits stood at THB 12,077.9 million while normalized net profit amounted to THB 2,709.6 million. The Board of Directors approved a resolution for additional dividend payment of 0.0735 baht/share. The XD sign will be put on 5 May 2022 and the dividend payment will be due on 25 May 2022. Group CEO Jareeporn Jarukornsakul vows to push WHA Group’s business transformation across its four business hubs. She forecasts that total revenue and share of normalized profit will exceed THB 21 billion in 2026.

WHA Corporation Public Company Limited (WHA Group) reported its total revenue and share of profits and net profit for Q4/2021 at THB 7,239.2 million and THB 2,034.8 million, respectively. Normalized total revenue and share of profits stood at THB 7,218.7 million, while normalized net profit was at THB 2,014.8 million, rising 61.0% and 45.0%, respectively, compared to Q4/2020. For 2021, the company generated total revenue and share of profit of THB 11,963.9 million and net profit of THB 2,590.1 million. Its normalized total revenue and share of profits was THB 12,077.9 million, growing 28.8% from the year before, and normalized net profit was THB 2,709.6 million, up 8.2% year-on-year.

WHA Group remains confident in its strong financial status and remarkable annual performance. The company’s Board of Directors approved a resolution for a dividend payment of 0.1002 baht/share. Prior to this, the company already paid dividends to shareholders at 0.0267 baht/share and will pay additional dividends at 0.0735 baht/share. The closing date for shareholder register (XD) will be on 5 May 2022 and the payment date will be on 25 May 2022. This reflects the company’s strong revenue streams and cash flow, thanks to its clear business strategy, sufficient liquidity, flexibility, and efficient financial management amid the COVID-19 pandemic.

Ms. Jareeporn Jarukornsakul, Chairman and Group CEO of WHA Corporation PCL, revealed that in 2021, the logistics business grew significantly and recorded THB 1,160.6 million in property rentals, increasing 0.5% from 2020. Last year, the company launched new Built-to-Suit Warehouse Projects and signed Built-to-Suit and Ready Built Factory & Warehouse rental contracts for an additional space of 166,310 sq.m., as well as short-term rental contracts with high returns for 176,595 sq.m. By the end of 2021, the company owned and managed a total of 2,550,092 sq.m. of warehouse space.

In Q4/2021, WHA also realized THB 5.55 billion in revenue from sales of assets to WHART, comprising two Built-to-Suit Warehouse projects, and one general warehouse project with a combined rental space of 184,329 sq.m.

Apart from the continuing launch of large-scale warehouse and distribution center projects, the company is exploring new business opportunities and synergies through collaboration with several business partners. Previously, the company invested in start-up companies to extend its products and services to answer the demand of new customer groups. To build different business models, it made a joint venture with Giztix, a leading e-Logistic start-up which provides digital platform services to connect transportation and logistics service providers with end-users nationwide. WHA Group also acquired a stake in Storage Asia, a leading self-storage solution provider under the brand “i-Store Self Storage”. This year, the company will look for new partnerships to develop creative services using new technologies and innovations driven by Artificial Intelligence (AI), Internet of Thing (IoT), and Big Data. It will consider exploring new opportunities from the Metaverse and Quantum technologies, as well as the environment-friendly mobility solutions such as electric vehicles (EVs).

In addition, the company will continue to develop WHA Office Solutions at six prime locations in Bangkok and Samut Prakarn to meet entrepreneurs’ demand in various business sectors.

For the industrial estate business, WHA generated total revenue in 2021 of THB 1,729.7 million, a slowdown from the year before, due mainly to a decrease of right of way income. However, land transfer revenue improved significantly from the previous year. At the end of 2021, the company recorded total land sales of 891 rai (850 rai in Thailand and 41 rai in Vietnam), not including a Memorandum of Understanding for 96 rai in Vietnam. These land sales figures were in line with the economic and investment environment in Thailand, as the COVID-19 situation improved and travel restrictions and lockdowns were eased. In addition, the company benefited from production relocations due to trade tensions, labor costs, technological changes, and the shortage of energy supply in China.

The increase of land sales stemmed from demand from customers in high value S-Curve industries, such as consumer goods, electronics, automotive, food, and medical supplies showing interest to invest in Thailand.

The company operates 11 industrial estates in Thailand and plans to develop new projects in the next 5 years. This year, it is expanding WHA Eastern Seaboard Industrial Estate 4 (580 rai) with construction that started in Q4 2021, as well as the construction of the first phase of WHA Industrial Estate Rayong (1,100 rai), in a joint venture with IRPC, scheduled to start end 2022.

In Vietnam, WHA Group recorded land sales of 41 rai in 2021, a decline from the previous year, due to the country’s lockdown to contain the spread of COVID-19. This delayed land ownership transfers. As one of the main emerging countries in Southeast Asia, Vietnam remains attractive for foreign investors. WHA is accelerating to acquire and develop additional Industrial Zones. WHA Industrial Zone – Nghe An Phase 1, representing 1,000 rai, has been completed with over 50% already occupied. WHA Group is speeding up Phase 2 (2,200 rai), scheduled to start in Q1/2022. When fully completed, including Phases 1, 2 and subsequent expansions, WHA Industrial Zone - Nghe An will comprise a total of 11,550 rai.

WHA Group plans to develop another two industrial zones, WHA Smart Technology Industrial Zone - Thanh Hoa and WHA Northern Industrial Zone - Thanh Hoa covering about 7,500 rai, which are scheduled to commence in 2023 and 2024, respectively.

For utilities, the water business performance in 2021 was outstanding. Total revenue reached THB 2,351.9 million, increasing 15.1% year-on-year. Total water sales and distribution amounted to 135 million cubic meters, an 18% rise from 2020. In Thailand, 112 million cubic meters came from water sales, up 17% year-on-year, following increased demand from existing customers in the petrochemical business (GC Oxirane), and new customers such as Gulf SRC, which began its commercial operations in Q2/2021. In Vietnam, the volume of water sales by the Duong River plant reached 22 million cubic meters, increasing 22% year-on-year, due to higher water consumption by existing and new customers.

WHA Group also saw in 2021 the continuing growth of value-added water product sales to 4 million cubic meters, a 62% hike year-on-year. It is moving forward the Wastewater Reclamation project and the production of Demineralized Water with the use of Membrane Reverse Osmosis technology, as well as operating Smart Utilities Service Platform and Innovative Solutions for customers in WHA industrial estates.

The company has formed a joint venture with Asia Industrial Estate (AIE) to provide reclamation and demineralized water to customers in Asia Industrial Estate (Map Ta Phut). The first customer is a chemical factory under a 15-year contract with a capacity of over 1 million cubic meters per year. This partnership is a business extension to complement the company’s strategy, which aims to develop its utilities business with fully integrated services in 11 WHA industrial estates and other areas. The company expects to become the leader of utilities and power businesses in Asia.

Additionally, sales and management of wastewater are expected to increase. The company plans to expand its utilities business along with the development of industrial estates in Thailand and Vietnam, including Phase 2 of WHA Industrial Zone – Nghe An and two industrial estates in Thanh Hoa province, which will start construction in 2023 and 2024, respectively.

For the power business, WHA realized normalized profits from its equity investments in subsidiaries and joint ventures, excluding profit/loss from foreign exchange. Revenue from renewable energy business in 2021 stood at THB 1,192.2 million, up 18.7% year-on-year, following the steady growth of solar energy and the strong operations of eight Small Power Plants (SPPs), which sell electricity to EGAT and industrial customers. However, Independent Power Plants (IPPs) were impacted by the lower share of profits from Gheco-One Power Plant, which closed for major maintenance and repair, causing a decline in Availability Payment.

In Q4/2021, WHA clinched a new Solar Rooftop contract for an additional 7 MW, bringing outstanding signed contracts to 92 MW – higher than the 90-MW target. It added 7 MW from the project that started COD to generate solar energy for customers, bringing the total of projects with COD to 57 MW at the end of 2021. Based on its shareholding equity, the company’s electricity capacity stands at 607 MW.

Apart from a smart energy platform for solar energy trading under the Sandbox program of the Energy Regulatory Commission (ERC), WHA Group is developing the Battery Energy Storage System (BESS), which stores energy and generates solar power as an alternative solution for customers. Recently, the company launched its 820-kWp Solar Rooftop project with a 550-kWh energy storage system at Eastern Seaboard Industrial Estate (Rayong). It is also studying the possibility of a Smart Microgrid System to enhance the reliability of utilities services in WHA industrial estates in the future. These projects are expected to expand the company’s renewable energy portfolio by an additional 100-200 MW, in line with its target to grow its renewable energy business to 300 MW within 2023.

In addition, the company gives importance to help address climate change and global warming issues. To achieve Carbon Neutrality and Net Zero Emission following the Paris Agreement and the Goals of UN Climate Change Conference (COP26) held in Glasgow, United Kingdom, in November 2021, WHA Group has an action plan to help reduce greenhouse gas emissions through renewable energy solutions, especially solar energy. Its greenhouse gas emissions offset went from 1,500 tons of carbon footprint in 2019 to 26,378 tons in 2021. This answers demand from leading customers and potential investors with environmental concerns in WHA industrial estates.

In the digital business, WHA Group is determined to develop cutting-edge digital services to increase customers’ competitiveness and to become the leader in integrated digital innovations and technologies across its business hubs. At present, it is building telecommunications towers and base stations inside WHA industrial estates, as well as renting spaces on these towers to telecom operators to install necessary devices for receiving and broadcasting network frequencies including 3G, 4G and 5G. The expansion of FTTx is being implemented to fully connect all customers in 9 industrial estates, with a plan to cover all 11 estates within 2022.

Data centers are being monetized. WHA earned profits from its two data centers, which are implementing digital transformation and will be fully completed within 2022.

Commenting on business directions in 2022, Ms. Jareeporn Jarukornsakul, Chairman and Group CEO, said that WHA Group will continue focusing on business expansion in Thailand while exploring new opportunities in neighboring countries. Total normalized revenue and share of profits from all four business hubs is expected to exceed THB 21 billion in 2026 - 1.75 times that of 2021. The logistics business aims to develop a combined 185,000 sq.m. of new space and new projects, with short-term, high-return rental contracts representing 100,000 sq. m. The company targets to reach 2,685,000 sq.m. in owned and managed assets and will distribute assets with rental space of 180,000 sq.m. for a value of THB 5 billion. It intends to propose this plan during the WHART and HREIT unitholders meeting for approval in Q2/2022.

This year, WHA Group has set its target land sales at 1,250 rai (950 rai in Thailand and 300 rai in Vietnam), rising 40% year-on-year. In the utilities business, it will look for new projects and explore potential mergers & acquisitions (M&As). Water sales and distribution in Thailand and Vietnam will reach 153 million cubic meters, while new solar rooftop Power Purchase Agreements (PPAs) will generate 150 MW, making the cumulative target of signed PPAs, based on shareholding equity, reach 700 MW. New M&A opportunities will be explored, while new projects will be developed under the Group’s five-year investment budget of THB 50 billion to ensure business transformation and sustainability in the long term.