WHA Corporation Public Company Limited (“WHA Group”) has announced its financial performance for the first half of 2023, showcasing impressive results with total revenue and profit sharing of 7.273 billion baht and a net profit of 2.653 billion baht, marking a 91% increase (YoY). This includes normal total revenue and profit sharing of 7.080 billion baht and normal profit of 2.549 billion baht, driven by growth in four business sectors: logistics, industrial estates, utilities and energy, and digital. Group CEO “Jareeporn Jarukornsakul” signaled a positive outlook, indicating plans to revise the land sales target to accommodate investors relocating their investment and production bases to Thailand continuously.

WHA Group reported its Q2/2023 performance with total revenue and profit sharing of 3.343 billion baht and a net profit of 1.289 billion baht. The normal total revenue and profit sharing were 3.304 billion baht, up 5%, and normal profit was 1.265 billion baht, up 55% compared to the same quarter last year.

For the first six months of 2023, the company reported total revenue and profit sharing of 7.273 billion baht and a net profit of 2.653 billion baht, a 91% increase from the same period last year. When considering normal performance, the company had normal total revenue and profit sharing of 7.080 billion baht, up 27%, and normal profit of 2.549 billion baht, up 93% from the previous year. This growth rate reflects the strong growth potential of the four business sectors.

Ms. Jareeporn Jarukornsakul, Chairwoman and CEO of WHA Corporation Public Company Limited, stated that the growth in performance during the first half of 2023 reaffirms the company's leadership in the four business sectors: logistics, industrial estates, utilities and energy, and digital, both in Thailand and Vietnam.

Logistics Business in the first half of 2023 saw the signing of lease agreements for Built-to-Suit projects and ready-made factories/warehouses totaling 33,699 square meters, along with high-yield short-term leases totaling 88,344 square meters. This resulted in a total warehouse area under ownership and management of 2,988,762 square meters. In Q2 and the first six months of 2023, the company recognized rental income from real estate leasing and electric vehicle leasing totaling 343 million baht and 640 million baht, respectively.

Regarding the progress of the Green Logistics project, the company established Mobilix Co., Ltd., a brand providing comprehensive electric vehicle services, including commercial electric transport services, charging system installation, charging stations, and the Mobilix Platform, which enhances the management of electric vehicles and batteries for customers. As of the end of Q2/2023, over 280 business customers have signed contracts for electric vehicle leasing.

With the continuous demand for high-quality warehouse/factory space, the company is currently negotiating with several clients. In Q2/2023, the company was awarded contracts from leading logistics service providers and manufacturers/distributors of home improvement products, with a total warehouse space requirement of over 63,000 square meters, expected to sign lease agreements soon.

The WHA Mega Logistics Center Bangna-Trad Km. 23 project, after its launch, received positive feedback from clients, including logistics service providers and advertising design and production companies, showing interest in reserving and/or signing lease agreements for an additional 26,100 square meters. Additionally, the WHA Mega Logistics Center Bangna-Trad Km. 23 (inbound) has logistics service companies interested in leasing approximately 24,000 square meters of warehouse space, which is in the process of preparing lease agreements.

“The WHA Mega Logistics Center Theparak Km. 21 Building B has received LEED Gold certification under version 4.1 BD+C for warehouses and distribution centers, which is the latest green building standard set by the U.S. Green Building Council and will be the standard for future sustainable green building construction and design.”

Regarding the asset sales plan and/or property lease rights in 2023, the WHAIR trust unit holders recently approved an investment in additional assets for the fifth time, worth no more than 1.065 billion baht across four projects, totaling approximately 40,172 square meters, expected to generate revenue within Q4/2023.

Industrial Estate Business in the first half of 2023 saw total land sales of 1,042 rai (Thailand 979 rai / Vietnam 63 rai) and total MOU signings of 756 rai (Thailand 714 rai / Vietnam 43 rai). In Q2 and the first six months of 2023, the company recognized total revenue and profit sharing from the industrial estate business of 1.460 billion baht and 3.587 billion baht, respectively, due to land transfer recognition in the first half of the year growing over 65% compared to the same period last year, supported by the ongoing relocation of investment and production to Southeast Asia. As of the end of Q2/2023, the company has a backlog of over 879 rai (Thailand 871 rai / Vietnam 8 rai) awaiting transfer of ownership.

“The land sales in Q2/2023 partly resulted from signing a land sale agreement with a major global battery manufacturer planning to build a battery cell production facility on over 100 rai of land to support the electric vehicle and energy storage systems industry in Thailand, reinforcing its position as a key destination for production and investment in new industries like electric vehicles.”

The company currently has a total of 77,600 rai of industrial estate space in Thailand and Vietnam, with 12 operational industrial estates in Thailand and seven new industrial estate development projects covering over 9,430 rai, resulting in a total industrial estate area of over 52,650 rai in the next three years. For the WHA Eastern Seaboard Industrial Estate 5 (3,400 rai), which is in the licensing process, the company expects to begin construction in Q1/2024 and have land ready for sale by Q2/2024.

In Vietnam, industrial zones have been opened with a total development area of 22,815 rai (3,650 hectares), including WHA Industrial Zone 1 – Nghe An, which has received continuous positive feedback from clients, and WHA Industrial Zone 2 – Nghe An Phase 1A/1B and Phase 2, covering a total of 1,600 rai (250 hectares) currently under development. Approval for the Phase 1A/1B project covering 1,200 rai (189 hectares) is expected within this year. Additionally, the company plans to expand new industrial zones with three more projects in Thanh Hoa and Quang Nam provinces, covering a total of over 9,690 rai (1,550 hectares).

The company expects the industrial estate business in the second half of the year to continue its strong growth from the first half, especially in Thailand, benefiting from geopolitical tensions that have led to increased investment and production relocations to Thailand, along with average land prices continuing to trend upward. By the end of 2023, the company anticipates signing land sale contracts exceeding the previously announced target of 2,275 rai and is preparing to revise this year's land sales target, which will be announced soon.

Utilities Business (Water) has shown continuous improvement from the previous year, allowing the company to recognize revenue and profit sharing from the utilities business totaling 761 million baht and 1.531 billion baht in Q2 and the first six months of 2023, respectively. The total water sales and management volume, both domestically and internationally, for Q2 and the first six months of 2023 amounted to 43.1 million cubic meters and 83.9 million cubic meters, respectively.

Domestic water sales in Q2 and the first six months of 2023 were 34.0 million cubic meters and 66.5 million cubic meters, increasing due to growth in water sales across all products, particularly value-added water products, driven by new customers gradually commencing commercial operations in Q3/2023. In May, the company signed a contract for the sale of tap water with the Provincial Waterworks Authority for 2.6 million cubic meters per year, providing services in the Nong Kha branch area of Saraburi province, expected to commence commercial operations in Q3/2023.

Additionally, the company signed a contract for the sale of high-quality industrial water with PTT Global Chemical Public Company Limited for a project producing high-quality industrial water, totaling 3.5 million cubic meters per year for use within the GC plant in the WHA Eastern Industrial Estate (Map Ta Phut), expected to commence commercial operations in Q3/2023 as well.

Water sales and management volume in Vietnam in Q2 and the first six months of 2023 improved, resulting in total water sales according to shareholding proportions of 9.1 million cubic meters and 17.3 million cubic meters, increasing from the sales and management of the Duong River project, which has continued to grow due to the expansion of service areas and increased water demand from existing and new customers, resulting in the company recognizing profit sharing of 39.5 million baht in the first six months of 2023, up from a loss of 12.3 million baht during the same period last year.

Electricity Business The company recognized normal profit sharing from operations from investments in joint ventures and associates, excluding accounting profits/losses from exchange rates and revenue from solar energy businesses in Q2 and the first six months of 2023, totaling 302 million baht and 654 million baht, respectively. Normal profit sharing from the electricity business decreased compared to the same period last year due to reduced normal profit sharing from the Gekko-Wan power plant, resulting from high coal cost recognition in the previous quarter and reduced normal profit sharing from the SPP power plants due to maintenance shutdowns of Gulf TS2 and TS3 power plants.

For the solar energy business in Q2/2023, the company signed 12 additional solar energy project contracts, including 11 Private PPA contracts with a total capacity of approximately 13 megawatts and one EPC Service contract with a total capacity of 1 megawatt. As of the end of Q2/2023, the company has accumulated Private PPA project contracts totaling 256 megawatts and a total power generation capacity according to shareholding proportions of 932 megawatts, consisting of 682 megawatts of operational capacity and 250 megawatts under development.

The company has been selected by the Energy Regulatory Commission to develop five renewable energy power plants under the Feed-in Tariff scheme, with a total power generation capacity according to shareholding proportions of 125.4 megawatts. Currently, contracts have been signed for four projects totaling 85 megawatts, and it is expected to sign the Power Purchase Agreement (PPA) for the remaining project of 40 megawatts within Q3/2023, with commercial operation scheduled for 2029-2030.

Digital Business The company is advancing its organizational capabilities in all dimensions to become a Technology Company in 2023 under the Mission To The Sun (MTTS) initiative, aiming to transform the business digitally, create new products and added value, and enhance business capabilities to meet customer needs. Notable projects include the Green Logistics project, which is developing the Mobilix Platform that integrates various services, from fleet management to route optimization and connecting electric vehicle charging station networks. Recently, the company partnered with Voltality, a leading roaming platform connecting charging service providers with electric vehicle service providers. Additionally, it collaborated with Datakrew, experts in real-time EV battery analytics, to enhance operational efficiency, increase customer satisfaction, and strengthen the company's EV ecosystem.

The company continues to push forward with the AI Transformation project, leveraging AI technology to enhance business capabilities in all areas. Recently, it developed Generative AI using the latest AI model, GPT-4o, which can process various formats, including images, documents, audio files, and safely analyze personal data, thereby improving work efficiency.

Recently, the company received awards that demonstrate the success of the group, such as WHA Group and WHAUP receiving the “Good People, Earth Lovers” award for driving and recognizing the importance of natural resource conservation under sustainable business development guidelines, including investments in renewable energy and appropriate water management through WHAUP, a subsidiary. Meanwhile, WHA Industrial Zone 1 – Nghe An received an award in the category of industrial estate developers with strategic plans for environmental friendliness at the Vietnam Industrial Property Forum (VIPF) 2024.

Furthermore, WHA WHART and WHAIR have been continuously selected to be included in the ESG100 list for 2023 by the Thai Institute of Development, with WHART being included in the ESG100 list for the sixth consecutive year, while WHAUP has been selected for the ESG100 list for the first time and is among the 19 securities in the “Sustainable Companies Worth Investing” or ESG Emerging List for 2023.