Bangkok - WHA Corporation PCL (WHA Group) has announced 2023 earnings with consecutive top performance, reporting total revenue and share of profits of THB 17,015 million, and a net profit of THB 4,426 million, an increase of 9% year-on-year. Normalized total revenue and share of profits amounted to THB 17,003 million, while normalized profits amounted to THB 4,420 million, marking an increase of 9% year-on-year. This achievement sets a new record, reaching an all-time high in history. Recently, the Board of Directors approved an annual dividend payment at 0.1839 baht per share, an increase of 10% year-on-year. The XD will be posted on 9 May 2024 and the dividend payment is scheduled for 24 May 2024. Group CEO Jareeporn Jarukornsakul said the company remains committed to driving sustainable growth across all dimensions, with an investment budget of THB 78,700 million in 4 business hubs over the next 5 years (2024-2028).
WHA Corporation PCL or WHA Group reported its 2023
earnings, with total revenue and share of profits
amounting to THB 17,015 million, an
increase of 9%, and net profits of THB 4,426
million, an increase of 9%. This is divided into
normalized total revenue and share of profits of THB 17,003 million, an increase of 9%, and normalized profits of THB
4,420 million, an increase of 9% YoY. This performance has
set a new high record in history, driven by the outstanding performance across
the business hubs, including logistics, industrial development, utilities and power.
On the same day, the Board of Directors
approved the dividend payment for the 2023 performance at 0.1839 baht per
share, up 10% YoY, with an interim dividend already paid to shareholders at 0.0669 baht per share. The additional dividend of 0.1170
baht per share to be proposed at the shareholders' meeting for approval
reflects the outstanding growth performance. The XD sign will be posted on 9
May 2024, and dividend payment is scheduled for 24 May
2024.
Miss Jareeporn Jarukornsakul, Chairman
of the Executive Committee and Group CEO of WHA Corporation PCL “WHA Group”, revealed that
the 2023 performance has set an all-time high record in corporate history. This
underscores the success stemming from its committed leadership across the four
business hubs: logistics, industrial development, utilities and power, and
digital, both in Thailand and Vietnam.
Logistics Business: The logistics
business has shown continuous growth in 2023, evidenced by the signing of
Built-to-Suit lease agreements and the addition of ready-built
factories/warehouse projects totaling 241,845 sq.m. Furthermore, short-term
lease contracts with high returns covering 149,667 sq.m. have already been
signed. Currently, the total warehouse space under its ownership and management
stands at 2,944,522 sq.m, with an occupancy rate of 85.8%. As a result, revenue
from rental properties recognized in the fourth
quarter and the full year of 2023 stood at THB 314 million and THB 1,112
million, respectively.
For
the WHA Mega Logistics Center Theparak Km. 21, on a 400-rai plot of land, Phase
1 has received positive responses from various industrial customers, including
leading manufacturer and distributor of equipment/animal feed, who have signed
a lease agreement for approximately 46,200 sq.m. and fully
integrated logistics service providers, who have signed a lease agreement for a
combined area of over 118,000 square meters. At present, Phase 1 of the project
has customers who have shown interest to reserve and
leased warehouse space to full capacity, alongside continuous increasing
demand, the company has to expedite the development of Phase 2 to meet customer
needs. Currently, over half of Phase 2’s area has already been reserved, with potential
clients such as a major automotive parts supplier, leasing a Built-to-Suit
warehouse spanning 13,000 sq.m, and a manufacturer and distributor of equipment/animal
feed, who plan to lease warehouse space up to 11,000 sq.m.
As for the WHA Mega Logistics
Center at Km. 23 (in bound) on a leased area of 46,000 sq.m. with the first
client secured is Dynapac Pack Road Equipment (Thailand) Co., Ltd. Additionally,
the company is currently negotiating with several potential customers,
including leading logistics service providers. The lease agreements are
expected to be signed within the year 2024.
Additionally, due to the continuously rising demand for high-quality
warehouse space and factories, the company is accelerating plans to develop a
new project on land spanning 300-400 rai in a strategic location for logistics.
WHA Group remains committed to
developing modern office building projects. Currently, there are 5 office
building projects available for lease, totaling an area over 120,000 sq.m. The new projects include Quant Sukhumvit 25,
located in the Sukhumvit-Asoke area, covering 9,900 sq.m. There is also a
mixed-use building project near the Surasak BTS station, spanning 3,000 sq.m.,
and a Built-to-Suit medical center project covering 6,900 sq.m, which the
company has already signed lease contracts with tenants and construction has
commenced since last year.
In addition, the company focuses on
building strategic partnerships and expanding its businesses in developing
high-quality warehouse/factory projects both in Thailand and abroad. It has
recently commenced construction of the first warehouse project for lease in
Vietnam, spanning 35,000 sq.m. and located near Hanoi. It is expected to be
completed and delivered to customers by the end of 2024 or early 2025.
At the same time, the company
enhances its capabilities through innovation and technology while promoting
sustainable practices. This includes the Green Logistics project, where the
company will provide electric vehicles, and charging stations, and develop
applications using digital technology to manage electric vehicles and
batteries. This aims to support and accelerate the use of electric vehicles in
the country’s transportation sector. In 2024, some customers already signed
lease-purchase agreements for 25 electric vehicles. The company targets to sign
contracts for an additional 1,000 vehicles in 2024.
Regarding the acquisition of shares
in GCL Logistics Solutions Limited (GCL), a subsidiary of PTT Global Chemical
PLC (PTTGC), with a 50% ownership valued at THB 2,640 million, it is another
success story from last year. This investment reinforces the expertise of
market leaders of both companies, which enhances their capabilities and
competitiveness to elevate customer service standards.
The company has also achieved
success in selling properties and/or leasing property rights to WHART, totaling
142,896 sq.m., worth THB 3,566 million. And, in 2024, the company plans to sell
properties and/or lease property rights to both WHART and WHAIR, with a target
to sell approximately 213,000 sq.m. of rental space, worth THB 5,290 million.
Additionally, the company aims to deliver new projects and contracts totaling
an additional 200,000 sq.m. this year, with 165,000 sq.m. in Thailand and
35,000 sq.m. in Vietnam. Total assets under ownership and management are
expected to reach 3,145,000 sq.m.
Industrial Development Business: In 2023, the
company achieved a historic record in land sales, totaling 2,767 rai, with
1,986 rai in Thailand and 781 rai in Vietnam. It also secured Memorandum of
Understandings (MOUs) for 524 rai, with 452 rai in Thailand and 72 rai in
Vietnam. It recognized revenue from industrial estate business in the fourth quarter and the full year of 2023, totaling
THB 4,124 million
and THB 7,659 million,
respectively. At the end of Q4/2023, the backlog awaiting ownership rights transfer
totaled over 1,038 rai, with 802 rai in Thailand and 236 rai in Vietnam,
exceeding the previous year's backlog of 468 rai. The company expects to
gradually transfer ownership rights to customers within the year 2024.
The increase in land sales
partially came from signing land purchase agreements with Changan Auto
Southeast Asia, one of China’s 4 leading automotive
groups, for 250 rai in the WHA Eastern Seaboard Industrial Estate 4.
Furthermore, there were land lease agreements signed in Vietnam with Fu Wing
Interconnect Technology (Nghe An), a subsidiary of Foxconn Interconnect
Technology, the world’s largest electronics equipment manufacturer, for 300
rai, and with Sunny Optical Technology, a major manufacturer of mobile phone
lenses and related components, for 268 rai in the WHA Industrial Estate Zone 1
– Nghe An, Phase 2.
At present, the company has
industrial estate areas in both Thailand and Vietnam, totaling 77,600 rai. This
includes areas that are already operational and those undergoing development.
Negotiations for land sales are ongoing with customers from various industries
such as automotive, consumer goods, electronics, etc.
Currently, the company operates a
total of 12 industrial estates in Thailand, totaling over 43,200 rai. This includes
the new industrial estates, WHA Industrial Estate Rayong Phase
1, covering 1,200 rai, and is in the process of accelerating development of
Phase 2, approximately 950 rai. In addition, the company
has expanded its industrial estate projects by another 4 projects, including
WHA Eastern Seaboard Industrial Estate 3 Phase 3 covering 640 rai, WHA Rayong
36 Industrial Estate Phase 2 covering 480 rai, WHA Eastern Seaboard Industrial
Estate 4 Phase 3 covering 330 rai, and WHA Eastern Seaboard Industrial Estate 2
Phase 2 covering 600 rai. Furthermore, there are plans to develop 2 new
projects, namely WHA Saraburi Industrial Land Phase 2 covering 2,400 rai, and
WHA Eastern Seaboard Industrial Estate 5, covering 3,400
rai, which the construction is expected to commence in Q1/2025.
Regarding the industrial estate
business in Vietnam, there is currently one industrial zone in operation, which
is WHA Industrial Zone 1 – Nghe An, covering a total area of 13,125 rai (2,100
hectares). The company has completed the construction of Phase 1, covering 900
rai (145 hectares) already constructed, and Phase 2 covers 2,215 rai (355
hectares) under construction. Additionally, the company plans to develop 3 new
industrial zones totaling 22,815 rai (3,650 hectares), including WHA Smart
Technology Industrial Zone 1 – Thanh Hoa covering 3,125 rai (500 hectares) in
the process of obtaining licenses and the construction is expected to commence
by the end of 2024. Moreover, WHA Smart Technology Industrial Zone 2 – Thanh
Hoa covering 1,875 rai (300 hectares), and WHA Smart Eco Industrial Zone –
Quang Nam covering 2,500 rai (400 hectares), which the company has signed the Memorandum
of Understanding agreements with local authorities in Vietnam since 2022.
In 2024, WHA Group has set the 2024
target for total land sales at 2,275 rai, comprising 1,650 rai in Thailand and
625 rai in Vietnam to accommodate continuous investment
and production base relocation. In addition, the company will continue to
further develop the Smart Eco Industrial Estates constantly by expanding
capabilities to cover 6 key components including Smart Services, Smart
Mobility, Smart Communication, Smart Power, Smart Water, and Smart Security
which will be managed by the Unified Operation Center (UOC). This will be
further evolved into a Total Solutions Partner for customers by providing fully
integrated services.
Utility Business (Water): In 2023, the
overall water utility business increased continuously, resulting in the
recognition of revenue from the utilities business in the
fourth quarter and the full year of 2023, totaling THB 717 million and
THB 2,859 million, respectively. The total volume of water sales and
management, both locally and internationally, for the
fourth quarter and the full year of 2023, amounted to 38 million cubic
meters and 155 million cubic meters, respectively.
The domestic water sales in Q4/2023
reached 29 million cubic meters due to the increase in raw water sale volume as
a result of the increased water usage by customers in the energy sector such as
Gulf SRC. There was also an increase in the sales of value-added water products
driven by the growing demand for water from renewable energy customers that
commenced commercial operations (COD) during Q3/2023.
The water sales and management in Vietnam
adjusted upwards in the fourth quarter and the full
year of 2023, with total water sales according to equity stake reaching
9 million cubic meters and 34 million cubic meters, respectively. This
adjustment was driven by increased water sales from the Duong River project due
to expanded service areas and increased water demand from both existing and new
customer groups. As a result, the company recognized a share of losses from the
Duong River project in 2023, amounting to only THB 8.3 million, down from a
share of losses of THB 200.2 million in 2022. Moreover, the company continues
to advance by introducing modern technologies such as Artificial Intelligence
(AI) to develop a Smart Water Platform, including Smart Meter (OCR) systems,
SCADA systems, and Unified Operation Center (UOC) to enhance operational
efficiency and develop new comprehensive services in line with the Beyond Water
concept.
In 2024, the target for water sales
and management is set at 178 million cubic meters, divided into 142 million
cubic meters domestically and 36 million cubic meters in Vietnam. This is to
accommodate the expansion of water services both inside and outside WHA
industrial estates. It will also focus on value-added water products with a
target of 10 million cubic meters.
Power Business: The company
recognized its normalized share of profits from investments in joint ventures
and associates, excluding gain/loss from exchange rate and revenue from solar
business in the fourth quarter and the full year of 2023
amounted to THB 558 million and THB 1,743 million, respectively. In Q4/2023,
there was an increase in the normalized share of profits from the power
business due to the recognition of profits from SPPs power plants. This
increase was driven by an increase in the power sales margin to industrial customers,
as a result of the higher Ft reflecting the increased natural gas costs in the
past period. At the same time, natural gas costs are in a declining trend.
There was also an increase in the normalized share of profits from the GHECO-One
power plant due to the higher recording of Availability Payment (AP) compared
to 2022.
For the solar energy business in 2023, the
company signed 42 contracts for additional solar energy projects, comprising 39
Private Power Purchase Agreements (PPAs) with a production capacity of 50 MW
and 3 EPC Service projects with a combined production capacity of 0.8 MW. This
resulted in the company having a cumulative capacity of signed Private PPA
contracts of 183 MW by the end of 2023.
In addition, the company had a commercial operation of solar power
generation capacity of approximately 109 megawatts.
At the end of 2023, the company has
a total installed capacity approximately 733 MW. In addition, the company has
been selected by the Energy Regulatory Commission (ERC) to develop solar power
plants under the Feed-in Tariff (FiT) scheme Phase 1, comprising 5 projects
with a combined power production capacity according to equity stake of 125.4
MW, with commercial operation scheduled between 2029-2030.
Furthermore, the company has
conducted studies on investment plans in various energy innovations, including
electric vehicle charging stations, Peer-to-Peer energy trading platforms,
trading of Renewable Energy Certificates (RECs), as well as exploring possibilities
for investing in New S-Curve businesses such as energy storage systems with
batteries, carbon capture, utilization, and storage (CCUS) technologies. It is
also seeking opportunities to invest in public utilities and energy in various
forms, both locally and in Vietnam.
In 2024, the company aimed to sign
capacity of all types of power plants for a total of 1,000
MW, comprising 547 MW of conventional power and 453 MW of renewable energy,
including 283 MW of solar energy.
Digital Business: The company is
elevating its organizational and workforce development to become a Technology
Company in the year 2024, by adopting technology to drive the organization
under the "Mission to The Sun" through 9 projects aimed at digitally
transforming the business. These include the Green Logistics project, which is
currently developing an application - Super Driver App that integrates various
services for electric vehicle business customers, such as fleet management,
route optimization, and EV roaming network connection. Additionally, the
Digital Health Tech project has developed the WHAbit application, which enables
comprehensive health management. The company plans to begin offering
application services to industrial customers in the first half of this year.
Simultaneously, the company has set
goals to fully operate its business in line with the circular economy
principles by the year 2050 through initiatives guided by three principles:
Design & Resource, Green Products, and Operation Excellence. In 2023, all
four business hubs proposed no fewer than 40 Circular Economy projects to
enhance resource efficiency within the company's ecosystem.
Ms.
Jareeporn said WHA Group announced its commitment to sustainable growth in all
dimensions, with an investment budget of THB 78.7 billion to drive business
over the next 5 years (2024-2028) across four business hubs: Logistics THB 21
billion, Industrial Estates THB 33 billion, Utilities and Power THB 21.2
billion, and Digital THB 3.5 billion. These align with the
WHA: WE SHAPE THE FUTURE mission to shape a sustainable society, environment,
and national development.
"The success of WHA Group throughout
2023 serves as a testament to the robust business potential and growth, as
evidenced by several awards. Most recently, WHA Group has been chosen for the
2024 S&P Global Sustainability Yearbook for the second consecutive year.
This reaffirms the group's commitment to conducting business in line with
creating social and environmental value, adhering firmly to ethical principles
to drive sustainable growth. Additionally, achieving an “AAA" rating in
the SET ESG Ratings for the year 2023, the highest rating level, marks the
company's fourth consecutive year as a sustainable stock. Awards such as the
Best Sustainability Awards and Commended Sustainability Awards at the SET
Awards 2023, the Prime Minister Award: Innovation for Global Challenge in the
Competitiveness category, the Kincentric Best Employer Award Thailand 2023, the
Eco-Industrial Estate Award from the Eco Innovation Forum 2023, and the
Outstanding Award from EIA Monitoring Awards further highlight WHA Group's exceptional
performance and commitment to sustainability."
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