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Q4 2020 Profit Growth at 215% QoQ Drives Normalized Net Profit to THB 2,543 Million; WHA Group Offers Additional Dividend of THB 0.0635 per Share





Bangkok - After surmounting the Covid-19 crisis thanks to its strong business, WHA Corporation PCL (WHA Group) reported solid performance in 2020, with normalized total revenue and share of profits of THB 9,376.0 million and normalized net profit of THB 2,542.6 million. The BOD also approved additional dividend payment of THB 0.0635 per share. Group CEO Jareeporn Jarukornsakul reckons a bright investment outlook in 2021, boosting logistics business with 5 new warehouse projects occupying 400,000 sq.m. As land sales in Vietnam exceeded target, the company launched 2 new industrial estates covering land area of 7,500 rai along with the expansion of industrial estates both locally and internationally. While utilities business resumed normal operation, the portfolio of water and power customers expanded, targeting to achieve 300 MW Solar energy in 3 years.

Ms. Jareeporn Jarukornsakul, Chairman and Group CEO of WHA Corporation PCL (WHA Group), announced that in Q4/2020 the company recorded total revenue and share of profits of THB 4,550.7 million, and net profit of THB 1,453.9 million. Normalized total revenue and share of profits stood at THB 4,482.6 million and normalized net profit amounted to THB 1,387.3 million, rising 178.6% and 214.8% from the previous quarter and 5.4% and 14.4% from the same period in 2019. Driven by strong Q4 revenue and sales, the company’s 2020 performance posted total revenue and share of profits at THB 9,406.6 million, and net profit at THB 2,523.7 million. It also recorded normalized revenue and share of profits of THB 9,376.0 million and normalized net profit of THB 2,542.6 million, decreasing 14.0% and 8.1% from the previous year. This has reflected a robustness of its 4-business hub platform amidst the delayed land transfers due to COVID-19 outbreak and imposed travel restrictions in 2020, decline shares of profit from Gheco-One Power Plant and increased depreciation from utilities investments.

WHA Group’s Board of Directors also passed a resolution to propose the shareholders’ meeting to approve the total dividend payment for 2020 operating results of THB 0.1002 per share, adding THB 0.0635 per share to the interim dividend of 0.0367 THB per share previously paid. This reflects the company’s strong performance during the last quarter of 2020. The closing date for shareholder register (XD) will be on 7 May 2021 and the payment date will be on 25 May 2021.

The Logistics business grew in line with booming E-commerce activities and rising demand for premium warehouse facilities. In 2020, WHA Group generated total rental revenue of THB 1,157.1 million, rising 23.0% from the year before. It also successfully raised THB 3.2 billion from the fifth capital increase of WHA Premium Growth Freehold & Leasehold REIT (WHART). At the end of 2020, total rental warehouse space under owned and managed was 2,493,980 million sq.m..

In 2021, the company plans to develop 5 mega distribution centers, with more than 400,000 sq.m. of combined spaces. Accelerated by disruptive technologies, the company plan to adopt innovative technology such as 5G, robotics and automation systems to support the implementation of smart warehouses as well as to offer high value-added services together with AI and Data Analytics Startups to help improve efficiency and lower operation costs of its logistics clients in long run.

In 2021, WHA Group targets to add 175,000 sq.m. of new contract/ project, together with high-margin and short-term rental contracts of 50,000 sq.m. to its domestic portfolio. However, in response to Vietnam’ high economic growth, the company will leverage on WHA Group’s synergy to seize opportunities of oversea business expansion. Lastly, it plans to divest additional assets and/or lease rights to REIT in the fourth quarter of this year.

For Industrial Estates, WHA Group realized THB 1,883.9 million of revenue in 2020, a slowdown from 2019 due to temporary COVID-19 travel restrictions. However, it has received additional revenue from rights of way compensation of THB 396.9 million and the sale of factories and warehouses to Hemaraj Leasehold REIT (HREIT) for THB 1.3 billion.

In Thailand, the company continuously develops and expands new industrial estates. WHA Group’s 11th domestic industrial estate, 1,280-rai WHA Rayong 36 located in the Eastern Economic Corridor (EEC), is now ready for sale. On top of that, the company will continue to launch IEs including the expansion phases of WHA Eastern Seaboard Industrial Estate 4 and WHA Industrial Estate Rayong in Rayong, and WHA Saraburi Industrial Land 2 in Saraburi.

In Vietnam, WHA Industrial Zone 1- Nhge An received an overwhelming interest from investors with total land sales in 2020 exceeding the original target. The company is pushing the construction of remaining 2,100 rai of phase 1B and expediting the approval process of phase 2 and phase 3, covering additional 4,700 rai of land area. During the last quarter, the company signed a collaboration agreement with the local government of Thanh Hoa province to develop two industrial zones - (1) WHA Smart Technology Industrial Zone – Thanh Hoa, and (2) WHA Northern Industrial Zone – Thanh Hoa, with a combined land area of 7,500 rai. This has marked another successful milestone for WHA Group’s overseas business.

As the COVID-19 pandemic is fading, the company set an industrial land sales target of 1,030 rai, of which 725 rai will come from industrial estates in Thailand and 305 rai from Vietnam.

WHA Group recorded THB 2,043.2 million in revenue from its Utilities business in 2020. The water sales volume in Vietnam experienced an improvement while domestic sale recovered as operators returned to normal operation after the COVID-19 and drought situation. Those included customers in automobile and petrochemical sectors who are the company’s main customer group.

WHA Group focuses on providing high value-added products and innovative water solutions. One of them is Thailand’s biggest Reclamation Water Plant, which has a capacity of 9.125 million cubic meters per year. Located in WHA Eastern Industrial Estate (Map Ta Phut), the construction work of the plant has already completed in December last year. Furthermore, the Demineralized Water plant phase 2, contracted to provide water to Global Power Synergy Plc (GPSC) under an annual contract of 1.6 million cubic meters for 15 years, already started supplying water since January this year.

Meanwhile, in 2021, WHA Group targets to expand its portfolio of raw, portable and industrial water as well as wastewater management to 153 million cubic meters, surging 34% from 114 million cubic meters last year. The company also actively looks for opportunities to expand investment not only in other cities/areas of Vietnam but also other potential countries in the SEA region.

For Power business, the company recorded THB 940.4 million for share of normalized profits from investments in subsidiaries and joint ventures, excluding profit/loss from foreign exchange rate. Share of profit from the power business dropped from previous year, due mainly to a declining share of profit from Gheco-One Power Plant which is a result of multiple factors, such as the decrease of availability payment per the power purchase agreement, the drop of energy margin and the implementation of 10% corporate income tax effective since late 2019. As problems surfaced, Gheco-One Power Plant was closed for maintenance in January this year to check and solve issues related to production efficiency. Meanwhile, the performance of SPP projects continued to be solid. Moreover, as both its industrial waste-to-energy power plant, Chonburi Clean Energy, and new commercialized solar energy projects will operate at full capacity this year, the company will be able to recognize higher and full-year revenue and share of profits from the power business.

In 2021, the company expects to increase electricity-generating capacity, in terms of shareholding equity to 670 MW, a more than 10% increase from 2019. To achieve the target, it looks forward to securing new contracts from solar energy projects including rooftop, floating and ground-mounted systems representing at least 50 MW, making the total solar-generating capacity to reach 100 MW by the end of this year. Besides, the development of innovative solutions such as P2P energy trading platform with blockchain technology is on the way. The company aim to expand renewable energy portfolio especially solar energy with a target of 300 MW within 3 years, together with an ongoing study to invest in solar and wind farms in Vietnam, where WHA Group already established a strong footprint in industrial development, water production and sales, and wastewater management. Previous investments have contributed to a growing customer base, relationships and network of business partners that further enhance opportunities for other businesses oversea.

For Digital Platform, WHA Group is committed to develop and offer new services and innovative digital products to respond to increasing and more sophisticated customer demand. In 2021, the company will continue to roll out the FTTx network in WHA industrial estates to accommodate the connectivity of future 5G and data center services along with an investment of 5G tower to serve as a crucial building block that supports both the company and its industrial customers’ digital innovation and transformation goals.   

Lastly, the company recently inaugurated WHA Tower, its new headquarters located on Debaratna Road (Bangna Trad) KM 7. The 25-storey Grade A office building offers gross area of 52,000 sq.m. and leasable area of 25,000 sq.m. for WHA employees, customers and other tenants. The building won the “Commercial High Rise Architecture Thailand” for its modern and environmentally friendly design that promotes creativity and work-life balance. Office spaces are now available for rent. 

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