Tris Rating has maintained the corporate credit rating of WHA Corporation Public Company Limited or WHA Group (“the Company”) at A- with a stable outlook, reflecting the continuous and sustainable growth from the Company’s strong revenue structure across four business segments: logistics, industrial estates, utilities and energy, and digital platforms. This comes amid signs of positive economic recovery in the country and a bright investment outlook, as the Company aims to become a Tech Company by 2024.

Ms. Jareeporn Jarukornsakul, Chairwoman and CEO of WHA Corporation Group, revealed that Tris Rating has recently announced the maintenance of the corporate credit rating of WHA Corporation Public Company Limited at “A-” with a “stable” outlook, reflecting the continuous, sustainable, and strong growth of the Company’s four core business segments. Additionally, the corporate credit rating indicates financial discipline, sufficient liquidity, flexibility, and effective financial management, resulting in a stable financial position from operations, including asset sales to trusts and the Company’s ability to source various funding, both from capital markets and financial institutions, to support business growth in the past and according to future plans.

The CEO further stated that the logistics business segment has consistently performed well, delivering a total area of 194,300 square meters in the first half of 2022, which includes new warehouse projects and new lease agreements totaling 98,200 square meters and short-term lease agreements of 96,100 square meters. The COVID-19 pandemic and its impact on consumer behavior have led to increased demand for short-term warehouse rentals, particularly from the consumer goods, e-commerce, express delivery, and logistics service provider (3PL) sectors.

For the remainder of 2022, the Company plans to deliver new warehouse projects totaling over 51,000 square meters. Additionally, there will be the launch of two new WHA Mega Logistics warehouse projects and the expansion area of the WHA Mega Logistics Center Theparak KM. 21, totaling over 420,000 square meters.

The impressive performance in the first half of the year and the numerous projects set for delivery in the second half, including the launch of new high-value warehouse and office buildings, demonstrate WHA's logistics business's commitment to providing value-added services to customers in the future through smart innovations, including smart warehouses, quantum computing technology applications, and environmentally friendly transportation, as well as collaborations with various startups. The logistics segment expects 2022 to be another leap year.

The industrial estate segment continues to reinforce its position as a leader in industrial estates in Thailand while expanding its business in Vietnam. In the first half of 2022, the Company achieved land sales of 513 rai in both Thailand and Vietnam, and it has revised its land sales target for 2022 to 1,650 rai.

In early September, the Company signed a land sale agreement for 600 rai with BYD (Thailand) Co., Ltd., a leading Chinese electric vehicle manufacturer, at WHA Industrial Estate Rayong 36, marking the largest land sale in 20 years. The new electric vehicle factory is expected to commence operations in 2024 with a production capacity of 150,000 vehicles per year. This deal also confirms WHA Group's role as a key player in establishing Thailand's automotive cluster in the EEC area over the past 20 years.

Moreover, the construction of the expansion area of WHA Eastern Seaboard Industrial Estate 4 (WHA ESIE 4), covering 573 rai, is expected to be completed in the fourth quarter of 2022, and the construction of the WHA Industrial Estate Rayong (WHA IER) project will begin this October.

In Vietnam, following the success of the project in Nghe An province, the Company continues its strategy to expand industrial estates into key provinces. The WHA Industrial Zone 1 – Nghe An Phase 1, covering 900 rai, has been fully developed, with 76% of Phase 1 leased to customers in various industries, such as automotive parts, food processing, solar energy, construction materials, and electronics, with a total foreign direct investment of $500 million, the highest in Nghe An province. The Company is accelerating the construction of Phase 2, covering 2,215 rai, to meet the rising demand for industrial land.

Additionally, the Company plans to develop an industrial zone covering 5,625 rai, including an expansion area in Thanh Hoa province, which is currently awaiting project approval. Thanh Hoa is the third most populous province in Vietnam and has a strategic location near Hanoi and the deep-water port of Ha Tinh. The WHA Smart Technology Industrial Zone – Thanh Hoa, located near the main city of the province, is set to accommodate high-value technology investors and support the expansion of Vietnam's Northern Technology Corridor.

Recently, the Company signed a memorandum of understanding for its third industrial estate project in Vietnam, located in Quang Nam province, covering 2,500 rai. The WHA Smart Eco Industrial Zone – Quang Nam, situated in a strategic location in the central region near Da Nang and Quang Ngai, aims to support clean high-tech industries, including automotive, machinery, electrical, electronics, telecommunications, medical, and logistics.

In the utilities sector, the Company continues to expand its products and services, focusing on value-added water products, such as premium clarified water and demineralized water. In Thailand, during the first half of 2022, the Company saw a 10% increase in sales volume of high-quality industrial water and wastewater treatment, totaling 62.3 million cubic meters, while the sales volume of value-added water products increased by over 19% to 2.5 million cubic meters compared to the same period last year. Recently, the Company has also constructed a new high-quality industrial water production plant and wastewater treatment facility at WHA Industrial Estate Rayong 36, with a total capacity of 3.3 million cubic meters per year. In terms of value-added water products, the Company has completed a high-quality industrial water project for small power producers (SPP) with a total capacity of 1.4 million cubic meters per year and is nearing completion of a demineralized water production facility in the Asia Industrial Estate with a capacity of 1 million cubic meters per year. Additionally, the Company has signed water purchase agreements with customers requiring large volumes of water in the electricity generation, medical, and solar panel manufacturing industries.

In Vietnam, the Company has three water projects underway, with performance in the first half of 2022 showing significant growth of 22%, increasing to 12.8 million cubic meters due to a larger customer base and expanded service areas.

In the energy sector, the Company continues to expand its investment portfolio by developing renewable energy solutions, particularly solar energy. In the first half of 2022, the Company had a solar rooftop power generation capacity of 62 megawatts based on equity MW, with another 64 megawatts under construction. Additionally, during the first half of 2022, the Company signed 15 new solar energy projects with industrial users, totaling a combined capacity of 34 megawatts.

For the solar rooftop project of Pring Cheng San Tire (Thailand) Co., Ltd., one of the largest solar rooftop projects in ASEAN with a capacity of 19.4 megawatts, it is expected to be delivered by the end of this year. Overall, the total signed power purchase agreements (PPAs) for solar rooftop projects are expected to reach 150 megawatts by the end of this year.

The utilities and energy business segment continues to expand its utility business both within and outside WHA's industrial estates in Thailand and Vietnam, while also expanding its energy business portfolio by developing innovative renewable energy solutions, particularly solar energy.

At the same time, under a strategy focused on digital technology and modern innovation, the Company has partnered with leading firms, including PTT Public Company Limited and Certis, to develop a Peer-to-Peer Energy Trading platform using Blockchain technology called Renewable Energy Exchange (“RENEX”). This project is currently in the launch phase, with the first group of 54 leading customers within WHA's industrial estates participating, and is in the final preparations for commercial operations set to begin within this year. Once completed, this project will elevate Thailand's energy industry by reducing energy costs for the industrial sector and promoting increased use of clean energy.

The digital business segment enhances the capabilities of the Group by building digital infrastructure and implementing digital technology. It has also launched innovative new products aimed at increasing access to healthcare services and solutions.

By the end of 2022, the digital business segment will lay underground fiber optics (FTTx) and will be ready to serve all 11 WHA industrial estates in Thailand. It will also provide telecommunications pole rental services for the installation of equipment to receive and distribute 3G, 4G, and 5G network signals within WHA's industrial estates. Additionally, the digital business segment sold two data center assets in the first half of 2022, generating a profit of 345 million baht. Currently, WHA Group still holds a 15% stake in the Tier IV certified SUPERNAP data center.

Furthermore, WHA's digital business segment is exploring and promoting the adoption of digital innovations and new technologies across all business segments of the Company, including developing its own digital solutions. It has launched the WHAbit application to enhance access to healthcare services, including Telemedicine (consultation with doctors via video conferencing technology), marking the first step in the Company's healthcare industry collaboration with Samitivej Hospital to promote and develop solutions for digital healthcare.

With the goal of becoming a technology company by 2024, WHA Group has created a roadmap that includes operational transformations through technology adoption, promoting innovation in the workplace, transitioning to a data-driven organization, and fostering a corporate culture ready for digital transformation. Currently, WHA Group is implementing various projects to strengthen the digital foundation of the organization, including enhancing digital capabilities and innovation skills among its employees. The Company is also exploring various technologies to develop new business models, with plans to launch META W, the first industrial metaverse designed to enhance customer experience and strengthen the Company's business in the digital age.

WHA Group has established a digital transformation roadmap that will pave the way for the long-term success of WHA Group towards achieving net-zero greenhouse gas emissions and becoming a technology company in the future, confidently moving forward with the strong fundamentals built over 30 years. The current technologies and innovations present numerous new opportunities, and we are committed to seizing those opportunities for business activities to benefit all stakeholders of the Company, including customers, employees, shareholders, business partners, and Thai society as a whole.