WHA Corporation Public Company Limited (WHA Group) has announced its financial results for the first nine months of 2022, showing impressive performance with total revenue and profit share of 6,570.0 million baht and net profit of 1,204.3 million baht. This includes total revenue and normal profit share of 6,669.3 million baht, while normal profit reached 1,325.0 million baht, marking a 90.7% increase year-on-year. The board has approved an interim dividend of 0.0669 baht per share for the nine-month period, with the XD date set for November 25 and the payment scheduled for December 9. Group CEO “Jareeporn Jarukornsakul” emphasized the company's expectation for an “all-time high” performance for the entire year, indicating that the fourth quarter is likely to peak due to revenue recognition from large land transfers and asset sales into two trusts. Additionally, WHA Group has recently received three prestigious awards from the SET Awards 2022 and has been listed as a sustainable stock for three consecutive years.

WHA Corporation Public Company Limited (WHA Group) reported its third-quarter results for 2022, with total revenue and profit share of 2,201.0 million baht and net profit of 258.6 million baht, respectively. When considering normal operations, the company achieved total revenue and normal profit share of 2,265.9 million baht and normal profit of 333.0 million baht, reflecting increases of 49.8% and 45.7% compared to the same quarter in 2021.

For the first nine months of 2022, the company reported total revenue and profit share of 6,570.0 million baht and net profit of 1,240.3 million baht. In terms of normal operations, total revenue and normal profit share reached 6,669.3 million baht, up 37.3%, and normal profit was 1,325.0 million baht, up 90.7% from the same period last year. This growth reflects the potential of all four business groups that continue to thrive. The board meeting approved an interim dividend for the nine-month period of 0.0669 baht per share, with the XD mark on November 25, 2022, and the dividend payment scheduled for December 9, 2022.

Ms. Jareeporn Jarukornsakul, Chairperson and Group CEO of WHA Corporation Public Company Limited (WHA Group), stated that the overall performance for the first nine months of 2022 has shown remarkable growth, driven by all four business groups in line with the economic recovery following the easing of the COVID-19 pandemic. This has led to a resurgence in both domestic and foreign investment, positively impacting WHA Group's overall business performance, reflecting the results of its four business groups.

Logistics Business has shown outstanding operational growth, benefiting from the reopening of the country, which has revitalized economic activities and investment conditions. In the first nine months of 2022, the company signed lease agreements for Built-to-Suit projects and additional ready-made factories/warehouses totaling 137,952 square meters. Simultaneously, the company also secured high-yield short-term lease agreements totaling 113,955 square meters, exceeding the annual target of 100,000 square meters. Currently, the company manages a total warehouse area of 2,715,831 square meters, with a continuous demand for high-quality warehouse space, resulting in an overall occupancy rate of 94%. For the third quarter and the first nine months of 2022, the company recognized rental income from real estate totaling 263.3 million baht and 776.1 million baht, respectively.

In the remaining part of this year, the company has several projects ready for delivery, including new warehouses totaling over 51,000 square meters, as well as the launch of two new WHA Mega Logistics warehouses in Bangna-Trad Km. 18 and Bangna-Trad Km. 23, along with the expansion area of the WHA Mega Logistics Center Theparak Km. 21, totaling over 420,000 square meters.

Additionally, the company continues to explore new technologies and smart innovations, collaborating with startups to enhance and diversify its service offerings to customers while creating added value for future performance. Currently, the company is studying investments in smart warehouses that incorporate quantum computing technology and environmentally friendly transportation for WHA's warehouses. Furthermore, WHA Venture Holding Co., Ltd. (WHAVH) has invested in leading startups such as Storage Asia, Giztix, Mercular, and Mung Mee E-commerce, a B2B e-commerce startup aimed at modernizing traditional Thai trade through integrated technology and data to transform retail operations into a digital format. This expansion into startup investments aims to integrate business activities with a robust logistics ecosystem to elevate service offerings into a digital format for both warehouses and premium distribution centers.

Moreover, WHA Group has six world-class office buildings for rent in Bangkok and Samut Prakan, covering an area of 100,000 square meters, including the new WHA Tower, the company's headquarters in Bangna, and the latest office project WHA KW S25, expected to be completed by mid-2023.

The plan to sell assets and/or lease rights to the WHART and WHAIR trusts remains on track. This year, the company aims to sell assets totaling approximately 208,149 square meters, valued at around 5,397 million baht, with expected revenue recognition in the fourth quarter of 2022.

Industrial Estate Business reinforces its leadership in industrial estate development in Thailand, announcing a revised land sales target for 2022 of 1,650 rai, while accelerating the expansion of industrial estate development in Vietnam. As a result, in the first nine months of 2022, the company achieved total land sales of 1,512 rai, comprising 1,412 rai in Thailand and 100 rai in Vietnam, with an additional 178 rai under MOU, split between 61 rai in Thailand and 117 rai in Vietnam. Consequently, in the third quarter and the first nine months of 2022, the company recognized revenue from the industrial estate business totaling 961.3 million baht and 2,359.3 million baht, respectively.

In the third quarter of 2022, the company announced a major surprise by signing a significant land sale agreement with leading electric vehicle manufacturer BYD for 600 rai in WHA Industrial Estate Rayong 36, the company's 11th industrial estate located in the Eastern Economic Corridor (EEC) last September. This deal marks the largest in 20 years for WHA Group, reflecting the company's commitment to supporting the EEC project to attract target industries (S-curve Industry), particularly in the modern automotive sector, to invest in the country, supporting Thailand's policy to become a hub for electric vehicle production in Southeast Asia. The company's industrial estates have a complete ecosystem ready to meet the needs of customers looking to use Thailand as a base for production and investment across various industries, not limited to the electric vehicle industry.

Meanwhile, the backlog of land sales awaiting transfer in the third quarter of 2022 exceeds 1,300 rai, and the company expects to gradually transfer some of the land in the remaining part of 2022, with the remainder expected to be transferred by 2023, in line with the investment direction and the relocation of production bases to Thailand. Currently, the company has over 4,250 rai of industrial land ready for sale. Additionally, the development of WHA Industrial Estate Rayong 36 has been completed, covering a total area of 1,281 rai, while the construction of the expansion area of WHA Eastern Seaboard Industrial Estate 4 (WHA ESIE 4), sized at 573 rai, is expected to be completed in the fourth quarter of 2022, and the company has commenced construction of WHA Industrial Estate Rayong (WHA IER) in October.

The expansion of industrial zones in Vietnam continues, with the recent acceleration of development in WHA Industrial Zone 1 – Nghe An Phase 2, sized at 2,215 rai, following the completion of Phase 1, sized at 900 rai, where 74% of Phase 1 has been leased to customers in various industries such as automotive parts, food processing, solar energy, construction materials, and electronics, with direct foreign investment amounting to 500 million USD.

Additionally, plans are underway to develop an industrial estate covering 5,625 rai in Thanh Hoa province, currently awaiting investment approval from the government. Thanh Hoa is one of Vietnam's economic cities, the third largest in the country, and is strategically located near Hanoi and the deep-water port of Haiphong, under the project name WHA Smart Technology Industrial Zone – Thanh Hoa, to meet the demands of high-value technology investors and expand the country's “Northern Technology Corridor” project.

Simultaneously, the company has signed a memorandum of understanding for the third industrial estate project in Vietnam, located in Quang Nam province, covering approximately 2,500 rai, named ‘WHA Smart Eco Industrial Zone – Quang Nam’, strategically located in the central region near Da Nang and Quang Ngai. This future smart eco-industrial zone will support clean high-tech industries such as automotive, machinery, electrical, electronics, telecommunications, medical, and logistics.

Utilities Business (Water) continues to grow, with the company recognizing revenue from the utilities business totaling 660.4 million baht and 1,945.6 million baht for the third quarter and the first nine months of 2022, respectively. The company managed and sold a total of 36.6 million cubic meters and 111.7 million cubic meters of water in both domestic and international markets for the third quarter and the first nine months of 2022.

The volume of water sales in the domestic market for the third quarter was 28.7 million cubic meters, showing a slight slowdown due to some customers halting operations for maintenance, resulting in a decrease in industrial water sales. Meanwhile, the volume of raw water and value-added products improved.

In the international market, for the third quarter and the first nine months of 2022, the company recorded water sales totaling 7.9 million cubic meters and 20.7 million cubic meters, respectively, showing improvement due to increased water sales from the Duong River project in the third quarter, as Vietnam's economy improved following the reopening and the easing of the COVID-19 situation. The company has also expanded its customer base and increased the coverage of its water supply services.

Recently, the company has built a high-quality industrial water production plant and a new wastewater treatment plant in WHA Industrial Estate Rayong 36, with a total capacity of 3.3 million cubic meters per year. Additionally, a mineral-free water production plant is being developed in the Asia Industrial Estate, with a capacity of 1 million cubic meters per year, expected to be completed by the end of this year. The company has also signed contracts for water sales with customers requiring additional water, including those in the electricity generation, medical, and solar panel manufacturing industries.

Electricity Business continues to expand its investment portfolio in renewable energy solutions, particularly solar energy. In the third quarter and the first nine months of 2022, the company recognized normal profit share from joint ventures and associates, excluding gains/losses from exchange rates, and revenue from solar energy business totaling 190.0 million baht and 573.5 million baht, respectively. When considering the performance in the third quarter of 2022, the normal profit share from the electricity business decreased compared to the previous year, primarily due to a reduction in normal profit share from SPP power plants, as natural gas costs continue to rise.

For the solar energy business, in the third quarter and the first nine months of 2022, the company recognized revenue of 74.7 million baht and 177.9 million baht, respectively. In the last quarter, the company signed 10 new rooftop solar project contracts, comprising 8 Private PPA contracts with a total capacity of approximately 5 megawatts and 2 EPC service contracts with a total capacity of approximately 6 megawatts. As of the end of the third quarter of 2022, the company has accumulated 131 megawatts of Private PPA contracts, and it is expected that the total signed Power Purchase Agreements (PPA) for the rooftop solar projects will reach 150 megawatts by the end of this year. Additionally, the company has commenced commercial operations (COD) to produce and sell solar power to customers, adding another 7 megawatts, resulting in a total commercial production capacity of 69 megawatts and a total electricity production capacity of 619 megawatts based on shareholding.

Furthermore, the company is committed to developing innovative digital solutions, such as creating a smart energy platform in collaboration with business partners, including PTT and Sertis, to develop a Peer-to-Peer Energy Trading platform under the name Renewable Energy Exchange ("RENEX"). This platform utilizes blockchain technology to enhance transaction efficiency and security, facilitating energy trading among industrial users. The RENEX platform has participated in the ERC Sandbox project of the Energy Regulatory Commission (ERC) for solar energy trading transactions through the Provincial Electricity Authority's network, and it is currently in the final preparation stage for commercial operation. Once operational, the RENEX platform will play a crucial role in elevating Thailand's energy industry by reducing energy costs for the industrial sector and promoting increased use of clean energy.

 

Digital Platform Business is set to complete the installation and service of underground fiber optics (FTTx) for all 11 industrial estates by the end of 2022, and it is ready to offer telecommunication pole rental services for the installation of 3G, 4G, and 5G network signal reception and distribution equipment within 8 poles in WHA estates, supporting customers such as AWN, True, and DTAC. The company will also maintain a 15% stake in Supernap, a Tier IV certified data center service provider.

Additionally, the company is studying and promoting the adoption of digital innovations and new technologies across all its business groups to enhance organizational capabilities while developing its own digital solutions. Previously, the company launched the WHAbit application to increase access to healthcare services, including Telemedicine services (medical consultations via video conferencing technology), marking its entry into the healthcare industry in collaboration with Samitivej Hospital to promote and develop solutions for digital healthcare, aligning with its goal of becoming a technology company by 2024. The company has created a roadmap that includes operational transformation through technology, promoting innovation in the workplace, transitioning to a data-driven organization, and fostering a corporate culture ready for digital transformation. Currently, the company is implementing various projects to strengthen its digital foundation, including enhancing digital capabilities and innovation skills among its employees.

 

Overall, the continuous growth of the business has led TRIS Rating to maintain WHA Group's corporate credit rating at "A-" with a "stable" outlook, reflecting the sustainable and strong growth of its four core business groups both domestically and in Vietnam. Additionally, it demonstrates the company's strong financial management capabilities, resulting in a stable financial position, whether through asset sales to trusts or the ability to secure funding from capital markets and financial institutions to support future business growth.

 

Recently, WHA Group received three prestigious awards from the SET Awards 2022 organized by the Stock Exchange of Thailand and the Finance and Banking Journal. WHA Corporation Public Company Limited received the Sustainability Excellence award in the Commended Sustainability Awards category, WHA Utilities and Power Public Company Limited received the Business Excellence award in the Best Innovative Company Awards category, and the WHA Industrial Trust received the Business Excellence award in the Outstanding REIT Performance Awards category. These accolades reflect the organization's commitment to developing and growing by leveraging innovation and technology for maximum benefit, creating sustainable value, and adhering to business principles to achieve sustainable development and growth.

At the same time, WHA Group has been listed as a sustainable stock or THSI (Thailand Sustainability Investment) for 2022 in the real estate and construction sector by the Stock Exchange of Thailand for the third consecutive year. Similarly, WHA Utilities and Power Public Company Limited (WHAUP) has also been listed as a sustainable stock (Thailand Sustainability Investment 2022: THSI) in the resources sector for three consecutive years. These awards reflect the organization's commitment to conducting various projects that promote growth in both economic and financial aspects while adhering to governance principles, environmental conservation, and reducing the impact of climate change through intelligent technology and innovation. The company aims to achieve net-zero greenhouse gas emissions by 2050 (Net Zero Greenhouse Gas Emissions by 2050) in line with the global and Thailand's direction in addressing climate change.

Additionally, there are awards that guarantee the success of WHA Group, such as THAILAND TOP CEO OF THE YEAR 2022 in the real estate industry, which honors and recognizes the top executives of organizations who share knowledge and successful strategies to inspire new leaders. The company also received the Thailand Best Managed Companies 2022 award, which emphasizes the confidence of customers and stakeholders that the company is strong and stable.