WHA Corporation Public Company Limited (“WHA Group”) has reported its success as a leader in four business sectors: logistics, industrial estates, utilities and energy, as well as digital solutions in Thailand and Vietnam. This reflects the overall growth in Q1/2023, with total revenue and profit share reaching 2,440.7 million baht and net profit of 522.7 million baht. This includes normal total revenue and profit share of 2,420.1 million baht and normal profit of 505.0 million baht, benefiting from the relocation of production bases from China, Japan, and the United States, which has increased demand for Built-to-Suit projects and ready-made factories/warehouses, as well as industrial estate space.

Ms. Jareeporn Jarukornsakul, Chairwoman and CEO of WHA Corporation Group, revealed the company's achievements as a leader in four business sectors, reflecting the overall growth of operations in Q1/2023, with total revenue and profit share of 2,440.7 million baht, an increase of 11.8%, and net profit of 522.7 million baht, a decrease of 20.3%. The normal total revenue and profit share increased by 11.8% to 2,420.1 million baht, while normal profit decreased by 22.7%. In Q1/2022, the company recorded a special profit from the sale of data center assets from its digital business amounting to 345 million baht. Excluding this special profit from Q1/2022, normal profit would have increased by 63.6%.

Logistics Business in Q1/2023 showed remarkable growth, benefiting from a significant increase in demand for high-quality warehouse space, resulting in the signing of lease agreements for Built-to-Suit projects and ready-made factories/warehouses, totaling 64,228 square meters. Additionally, short-term lease agreements with high returns amounted to 88,608 square meters, leading to a total warehouse area under management of 2,771,151 square meters by the end of Q1/2023, with an overall occupancy rate of 90.4%. Consequently, in Q1/2023, the company recognized revenue and profit share from real estate leasing amounting to 249.6 million baht.

“The WHA Mega Logistics Center in Theparak, Km. 21, covering over 400 rai, received a positive response last year, attracting many customers, particularly from the logistics service providers (3PL) and consumer goods manufacturers, both domestically and internationally. Phase 2 is currently seeing interest from customers who have already reserved rental space, including logistics service providers and automotive parts manufacturers, as well as customers producing/selling pet supplies and animal feed. Meanwhile, the WHA Mega Logistics Center in Bangna-Trad, Km. 23 (inbound) has customers who have reserved and signed advance lease contracts for the development of a Built-to-Suit showroom on the project site,” she added.

In the Office Solutions business, the company is currently developing six modern office rental projects in the city center, covering over 120,000 square meters, and has signed contracts with tenants to develop a Built-to-Suit Medical Center project on over 6,900 square meters. Recently, WHA KW Alliance Co., Ltd. (WHAKW), a subsidiary, and Tokyo Tatemono Co., Ltd. (TTA) established a joint venture to invest in the development of office space in Thailand under the first project “WHAKW S25” on Sukhumvit Road, expected to be completed by Q3/2023.

Additionally, WHA Daiwa Logistics Property Co., Ltd., a joint venture between the company and Daiwa House Group, has been entrusted to design and develop a Uniqlo roadside retail store in Lat Krabang, which is a Built-to-Suit retail building covering 1,019 square meters, designed to meet operational needs perfectly.

Regarding the plan to sell assets and/or lease rights to the WHART trust in 2023, the company aims to sell assets totaling approximately 142,000 square meters, valued at approximately 3,566.5 million baht.

Industrial Estate Business in Q1/2023 recorded land sales totaling 487 rai (379 rai in Thailand and 108 rai in Vietnam) and signed MOUs totaling 753 rai (445 rai in Thailand and 308 rai in Vietnam), resulting in total revenue from the industrial estate business of 1,052.5 million baht, showing remarkable growth compared to the previous year. This is due to a significant increase in revenue from land transfers, reflecting investor confidence in Thailand's potential as a key manufacturing and investment base in the region, ready to support investments in new industries, particularly target industries (S-Curve). As a result, Q1/2023 has a backlog of land sales awaiting transfer of ownership exceeding 675 rai.

“Currently, WHA Group has 11 industrial estates under development in Thailand, including WHA Rayong 36 Industrial Estate (1,280 rai), which was completed in 2022, and two new industrial estates: WHA Rayong Industrial Estate Phase 1 (1,100 rai), currently under construction, and WHA Saraburi 2 Industrial Estate (2,400 rai), expected to begin construction in 2026. Additionally, there are expansions for two more industrial estate projects: the expansion of WHA Eastern Seaboard 3 Phase 3 by 630 rai and the expansion of WHA Rayong 36 by an additional 460 rai,” she noted.

For the industrial estate in Vietnam, in Q1/2023, the company recorded land sales totaling 108 rai and signed MOUs totaling 308 rai, aligning with Vietnam's economic growth potential to attract foreign investors. Currently, the company has one operational industrial zone and plans to expand two new projects in major provinces of Vietnam, totaling 20,950 rai (3,350 hectares).

The operational industrial zone includes WHA Nghệ An Industrial Zone Phase 1, covering 900 rai, which has sold over 77% of its area to customers in the automotive parts, food processing, construction materials, and electronics industries. This has prompted the company to expedite construction of Phase 2 on an area of 2,215 rai, which is currently under construction and has begun offering projects to customers.

Furthermore, the company is expanding new industrial zone projects in major provinces of Vietnam, having signed agreements with local authorities to develop two more industrial zones: WHA Smart Technology Industrial Zone - Thanh Hoa, covering 5,320 rai, expected to begin construction in 2024 or early 2025, and WHA Smart Eco Industrial Zone – Quang Nam, covering 2,500 rai, anticipated to receive various approvals in 2026 or 2027, and will begin construction according to the company’s long-term investment plan in the future.

Utilities Business (Water) in Q1/2023 recognized revenue from utilities totaling 643.3 million baht, with total water sales and management in Thailand and abroad amounting to 35 million cubic meters, comprising 28 million cubic meters sold domestically and 7 million cubic meters sold internationally. The company continues to benefit from an increase in raw water sales of 7 million cubic meters and value-added water products of 1 million cubic meters, resulting from the commercial operation (COD) of Gulf TS 3 and TS 4 last year. In February, a contract was signed for the sale of high-quality industrial water (Premium Clarified Water) amounting to 2.9 million cubic meters per year with customers within WHA Eastern Seaboard 4 (WHA ESIE 4) industrial estate. Additionally, the company has begun constructing an industrial water production system extension with a capacity of 3.7 million cubic meters per year in WHA Eastern Seaboard 4, expected to commence commercial operations by the end of June, along with the construction of an industrial water pipeline system to supply water to WHA Industrial Estate Rayong with a production capacity of 4.5 million cubic meters per year, expected to be completed by Q4/2023.

For the utilities business in Vietnam, the company anticipates that wastewater sales and management will continue to grow due to the demand for water from customers in WHA Industrial Zone Nghệ An Phase 1, which is gradually commencing operations, along with plans to expand the utilities business alongside the development of the company’s industrial estates, including WHA Industrial Zone Nghệ An Phase 2 and WHA Thanh Hoa Industrial Zone, as well as WHA Quang Nam Industrial Zone.

Electricity Business in Q1/2023 recognized normal profit share from operations and investments in joint ventures and associates, excluding accounting gains/losses from exchange rates and revenue from solar energy business, amounting to 293.1 million baht. This was driven by a significant increase in normal profit share from SPP power plants due to benefits from the recent rise in electricity prices (Ft) and a decrease in natural gas costs. For the IPP power plants, although GHECO-One was under maintenance as planned during the first quarter, the profit share from IPP power plants improved compared to the same period last year. Meanwhile, the solar business in Q1/2023 generated revenue of 110.7 million baht and signed 10 additional solar energy project contracts, all of which are Private PPAs, totaling a capacity of 16 megawatts, bringing the total accumulated Private PPA contracts to 149 megawatts. Currently, the operational solar power capacity stands at approximately 94 megawatts, resulting in a total power capacity according to shareholding of 699 megawatts by the end of Q1/2023, with an additional 20 megawatts expected to commence commercial operations in Q2/2023.

Additionally, the company has been selected by the Energy Regulatory Commission to develop renewable energy power plants under the Feed in Tariff (FiT) Phase 1 for solar energy, comprising five projects with a total power capacity according to shareholding of 125.4 megawatts, including four regular Solar Farm projects and one Solar Farm project combined with a Battery Energy Storage System (BESS). These projects are expected to commence commercial operations between 2029 and 2030.

Digital Business in Q1/2023, the company continues to transform into a digital organization to become a Technology Company by 2024, having implemented organizational changes from business strategy to all related parties to drive the organization’s potential into the digital era, leveraging technology to create new value-added products and services to meet customer needs.

Recently, WHA Venture Holding Co., Ltd., a subsidiary of the group, invested in new shares of Siam Rajathanee Public Company Limited, acquiring 111,597,905 shares or 20% of the total shares after the capital increase. This investment aims to leverage the synergy from the company’s comprehensive ecosystem and its leadership in outsourcing, with expected synergies encompassing current business and future business development according to the MTTS mission. The first phase will cover the Center of Shared Services, expanding outsourcing business to new industrial customers, Workforce Excellence Academy for developing personnel and workforce to support the New S-Curve industries, EV Fleet Rental and Management as part of the company’s Green Logistics expansion plan, as well as ESG and Carbon Credit management to reduce carbon emissions and increase carbon credits in industrial estates.