公司新聞
HEMARAJ ANNOUNCES QUARTER 1, 2012 NET PROFIT OF BAHT 861 MILLION
14/05/2012
- NORMALIZED NET INCOME (NNI) FOR QUARTER 1, 2012 WAS BAHT 731 MILLION
Hemaraj Land And Development Public Company Limited announced its operating and financial results for Quarter 1’ 2012 as summarized below.
Quarter 1’2012 Net Profit
For Quarter 1’2012, Hemaraj reported Total Net Income of Baht 860.9 million, or an increase of 2709% compared with the same period of last year. Earnings per-share was 0.089 Baht per share, representing an increase of 2709% from the same period of last year.
The increase of Net Income for Quarter 1’ 2012 was mainly due to the improving in business performance in all areas as well as the timing on transfer of land titles. In addition, there was an unrealized foreign exchange translation gain for Gheco-One of Baht 130.3 million in Quarter 1’ 2012 compared to an unrealized foreign exchange translation loss of Baht 22.1 million in Quarter 1’ 2011. Normalized Net Income (NNI) for Quarter 1’ 2012 was Baht 730.6 million. It was also noted that, effective from January 1, 2011, there was a changing of accounting method from percent completion method to transfer of title method, based on new financial reporting standards issued by the Federation of Accounting Professions.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Hemaraj Land And Development Public Company Limited started 2012 with the strong results that we have been expecting as the accounting recognition finally caught up based on industrial estate land transfers. In addition, our broadened revenue sources reflected an Industrial Estate Utilities quarterly revenue increase of 13% year over year as well as Ready Built Factory revenue increase of 52% year over year.
Strong customer investment continued from the automotive industry but also reflected a broader participation in electronics, building materials, consumer and others. Japan has continued to lead with over half of our customer investment the last 9 quarters. Overall operating results were the strongest in our history with Quarter 1’2012 Industrial Estate Sales of 928 rai (371 acres or 150 hectares), #1 market share, with 39 contracts, 32 new customers and 7 project expansions from existing customers. We were excited in 2011 with 74 contracts frankly, yet this year we are projecting over 90 contracts. Ready Built Factories for Rent in Quarter 1, 2012 grew by 13,694 square meters or a 9% increase from the 2011 year-end cumulative balance, with another 14,000 square meters pre-leased, much in line with our expectations of a strong year.
Our Quarter 1’ 2012 revenue performance was Total Revenue of Baht 1,696.7 million, a 190% increase from the same period of 2011 due to the factors noted above. Total Net income was Baht 860.9 million or on a Normalized Net Income (NNI) basis, Baht 730.6 million, comparable to the NNI for Quarter 1’ 2011 of Baht -10.9 million, when you take out unrealized foreign exchange translation gains or losses from either year.
The automotive production for Thailand for 2012 will recover to 2.0 million vehicles and to 2.5 to 3.0 million vehicles over the next 3 to 6 years.
Thus the investment policy of Hemaraj continues in core business areas - industrial estates, utilities, power, and properties. The demand for ready built factories for rent has accelerated our investment here. We are completing units at Hemaraj Logistics Park 1, while we are launching Hemaraj Logistics Park 2 @ Hemaraj Eastern Seaboard Industrial Estate. Although benefitting by Thailand and ASEAN organic growth, rationalization of capacity and Asia Pacific manufacturing plans are reflecting Thailand being attractive to international investors in the automotive and other industries due to cost, currency, and market access. Therefore, with results reflected here, at the Annual General Meeting on April 30, 2012, we increased our 2012 industrial estate sales forecast again to 2,000 rai from our original 2012 budget of 1,500 rai.
In power development, our Baht 4.5 billion investment and 35% shareholding in the Gheco-One 660 MW IPP power plant is projected to operate imminently in May 2012. In March of 2012, we signed the Shareholders’ Agreement with Gulf JP to invest 25% in the 126MW SPP Power Plant in Hemaraj Rayong Industrial Park, the first 1 of 8 SPP power plants forecasted.
The results reflected here demonstrate that the Hemaraj broadened revenue strategy is increasing revenue growth opportunities. With higher recurring revenue, the risk profile of the company and the predictability of the earnings and dividends will continue improving. Our strategic vision remains to reflect this by providing superior long term returns to shareholders.”
Revenue and Results of Operations for Quarter 1’ 2012
For Quarter 1’ 2012, Hemaraj’s Total Revenue was Baht 1,675.5 million compared with Baht 566.3 million for the same period of 2011, representing a 196% increase. Total Operating Revenue from core businesses was Baht 1,682.4 million, a 194% increase from the same period of 2011. Industrial Estate Land Sales for Quarter 1’ 2012 were Baht 1,149.2 million or a 3950% increase. In addition, there is an additional Baht 2,959 million in deferred revenue, with recognition based on the transfer date, from Industrial Estate land sales not recognized to date representing sales that will be recognized primarily over the next 3 to 24 months.
Industrial estate utilities increased to Baht 322.1 million or an increase of 13% compare with the same period of last year reflecting the higher utility volumes. Total Utilities which includes industrial estate utilities, dividend from power utilities associates, and other utilities and services fees were Baht 325.1 million, an increase of 8%. Total Rental Property and Services Revenue including ready built factory rental, pipe-rack rental, and commercial office rental increased to Baht 171.5 million, an increase of 37%. Sale of Property including ready built factory sales, residential sales and other land/property sales were Baht 36.6 million, a decrease of 69%.
The Gross Profit was Baht 771.5 million, a 204% increase from the same period of last year. Earnings Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 602.1million. The Gross Profit Margin and EBITDA Margin were 46% and 36%, respectively.
Significant Activities for Quarter 1 of 2012
• Industrial Estate Sales in Quarter 1’ 2012 were 928 rai with 39 contracts, 32 new customers and 7 project expansions from existing customers, all records level. Hemaraj now has 507 distinct new customers with 756 contracts including 174 automotive customers with 267 automotive contracts.
• Investments continued with Hemaraj’s 35% shareholding in GHECO-One IPP power project to operate in May 2012. In March 2012, Hemaraj signed the Shareholders’ Agreement with Gulf JP to invest 25% in the 126MW SPP Power Plant in Hemaraj Rayong Industrial Park.
• Ready Built Factories for Rent in 2011 increased 9% or 13,694 square meters from 2011 year-end cumulative balance with an additional 14,000 square meters pre-leased.
Activities after Quarter 1 of 2012
• The Shareholders Meeting approved on April 30, 2012 the final dividend of Baht 0.03 per share, therefore, total dividend for 2011 was Baht 0.055 per share.
Balance Sheet Highlights for the 3-month period ended 31st March 2012
At 31st March 2012, Hemaraj reported Total Assets of Baht 21,210 million, Total Liabilities of Baht 11,266 million and Total Shareholders’ Equity of Baht 9,944 million. The Net Debt to Equity ratio was 0.94 to 1 with Cash and Deposits on Hand of Baht 3,278 million.
*Normalized Net Income (NNI)
Hemaraj has no loan in USD, while holding 35% in Gheco-One which has outstanding loans in USD. Under Thai GAAP, Gheco-One’s outstanding USD loan is converted at quarterly end and year-end to THB at the then current exchange rate. Any differences in the THB outstanding loan amount due to using a different exchange rate compared to last year leads to an unrealized FX gain (THB appreciation) or loss (THB depreciation). Hemaraj uses equity method to take that unrealized FX gain or loss to consolidate its financial statements. In Hemaraj’s view the unrealized FX gain or loss should then be viewed separately from operating revenue, particularly as cash flows are primarily hedged.
For further information concerning Hemaraj Land And Development Public Company Limited (SET symbol Hemraj), please visit our website at www.hemaraj.com or www.theparkresidence.co.th or contact us by email at invest@hemaraj.com
Mr. Paopitaya Smutrakalin, Director – Investor Relations
Hemaraj Land And Development Public Company Limited
18/F UM Tower, 9 Ramkhamhaeng, Suanluang, Bangkok 10250, Thailand
Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7
Hemaraj Land And Development Public Company Limited announced its operating and financial results for Quarter 1’ 2012 as summarized below.
Quarter 1’2012 Net Profit
For Quarter 1’2012, Hemaraj reported Total Net Income of Baht 860.9 million, or an increase of 2709% compared with the same period of last year. Earnings per-share was 0.089 Baht per share, representing an increase of 2709% from the same period of last year.
The increase of Net Income for Quarter 1’ 2012 was mainly due to the improving in business performance in all areas as well as the timing on transfer of land titles. In addition, there was an unrealized foreign exchange translation gain for Gheco-One of Baht 130.3 million in Quarter 1’ 2012 compared to an unrealized foreign exchange translation loss of Baht 22.1 million in Quarter 1’ 2011. Normalized Net Income (NNI) for Quarter 1’ 2012 was Baht 730.6 million. It was also noted that, effective from January 1, 2011, there was a changing of accounting method from percent completion method to transfer of title method, based on new financial reporting standards issued by the Federation of Accounting Professions.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Hemaraj Land And Development Public Company Limited started 2012 with the strong results that we have been expecting as the accounting recognition finally caught up based on industrial estate land transfers. In addition, our broadened revenue sources reflected an Industrial Estate Utilities quarterly revenue increase of 13% year over year as well as Ready Built Factory revenue increase of 52% year over year.
Strong customer investment continued from the automotive industry but also reflected a broader participation in electronics, building materials, consumer and others. Japan has continued to lead with over half of our customer investment the last 9 quarters. Overall operating results were the strongest in our history with Quarter 1’2012 Industrial Estate Sales of 928 rai (371 acres or 150 hectares), #1 market share, with 39 contracts, 32 new customers and 7 project expansions from existing customers. We were excited in 2011 with 74 contracts frankly, yet this year we are projecting over 90 contracts. Ready Built Factories for Rent in Quarter 1, 2012 grew by 13,694 square meters or a 9% increase from the 2011 year-end cumulative balance, with another 14,000 square meters pre-leased, much in line with our expectations of a strong year.
Our Quarter 1’ 2012 revenue performance was Total Revenue of Baht 1,696.7 million, a 190% increase from the same period of 2011 due to the factors noted above. Total Net income was Baht 860.9 million or on a Normalized Net Income (NNI) basis, Baht 730.6 million, comparable to the NNI for Quarter 1’ 2011 of Baht -10.9 million, when you take out unrealized foreign exchange translation gains or losses from either year.
The automotive production for Thailand for 2012 will recover to 2.0 million vehicles and to 2.5 to 3.0 million vehicles over the next 3 to 6 years.
Thus the investment policy of Hemaraj continues in core business areas - industrial estates, utilities, power, and properties. The demand for ready built factories for rent has accelerated our investment here. We are completing units at Hemaraj Logistics Park 1, while we are launching Hemaraj Logistics Park 2 @ Hemaraj Eastern Seaboard Industrial Estate. Although benefitting by Thailand and ASEAN organic growth, rationalization of capacity and Asia Pacific manufacturing plans are reflecting Thailand being attractive to international investors in the automotive and other industries due to cost, currency, and market access. Therefore, with results reflected here, at the Annual General Meeting on April 30, 2012, we increased our 2012 industrial estate sales forecast again to 2,000 rai from our original 2012 budget of 1,500 rai.
In power development, our Baht 4.5 billion investment and 35% shareholding in the Gheco-One 660 MW IPP power plant is projected to operate imminently in May 2012. In March of 2012, we signed the Shareholders’ Agreement with Gulf JP to invest 25% in the 126MW SPP Power Plant in Hemaraj Rayong Industrial Park, the first 1 of 8 SPP power plants forecasted.
The results reflected here demonstrate that the Hemaraj broadened revenue strategy is increasing revenue growth opportunities. With higher recurring revenue, the risk profile of the company and the predictability of the earnings and dividends will continue improving. Our strategic vision remains to reflect this by providing superior long term returns to shareholders.”
Revenue and Results of Operations for Quarter 1’ 2012
For Quarter 1’ 2012, Hemaraj’s Total Revenue was Baht 1,675.5 million compared with Baht 566.3 million for the same period of 2011, representing a 196% increase. Total Operating Revenue from core businesses was Baht 1,682.4 million, a 194% increase from the same period of 2011. Industrial Estate Land Sales for Quarter 1’ 2012 were Baht 1,149.2 million or a 3950% increase. In addition, there is an additional Baht 2,959 million in deferred revenue, with recognition based on the transfer date, from Industrial Estate land sales not recognized to date representing sales that will be recognized primarily over the next 3 to 24 months.
Industrial estate utilities increased to Baht 322.1 million or an increase of 13% compare with the same period of last year reflecting the higher utility volumes. Total Utilities which includes industrial estate utilities, dividend from power utilities associates, and other utilities and services fees were Baht 325.1 million, an increase of 8%. Total Rental Property and Services Revenue including ready built factory rental, pipe-rack rental, and commercial office rental increased to Baht 171.5 million, an increase of 37%. Sale of Property including ready built factory sales, residential sales and other land/property sales were Baht 36.6 million, a decrease of 69%.
The Gross Profit was Baht 771.5 million, a 204% increase from the same period of last year. Earnings Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 602.1million. The Gross Profit Margin and EBITDA Margin were 46% and 36%, respectively.
Significant Activities for Quarter 1 of 2012
• Industrial Estate Sales in Quarter 1’ 2012 were 928 rai with 39 contracts, 32 new customers and 7 project expansions from existing customers, all records level. Hemaraj now has 507 distinct new customers with 756 contracts including 174 automotive customers with 267 automotive contracts.
• Investments continued with Hemaraj’s 35% shareholding in GHECO-One IPP power project to operate in May 2012. In March 2012, Hemaraj signed the Shareholders’ Agreement with Gulf JP to invest 25% in the 126MW SPP Power Plant in Hemaraj Rayong Industrial Park.
• Ready Built Factories for Rent in 2011 increased 9% or 13,694 square meters from 2011 year-end cumulative balance with an additional 14,000 square meters pre-leased.
Activities after Quarter 1 of 2012
• The Shareholders Meeting approved on April 30, 2012 the final dividend of Baht 0.03 per share, therefore, total dividend for 2011 was Baht 0.055 per share.
Balance Sheet Highlights for the 3-month period ended 31st March 2012
At 31st March 2012, Hemaraj reported Total Assets of Baht 21,210 million, Total Liabilities of Baht 11,266 million and Total Shareholders’ Equity of Baht 9,944 million. The Net Debt to Equity ratio was 0.94 to 1 with Cash and Deposits on Hand of Baht 3,278 million.
*Normalized Net Income (NNI)
Hemaraj has no loan in USD, while holding 35% in Gheco-One which has outstanding loans in USD. Under Thai GAAP, Gheco-One’s outstanding USD loan is converted at quarterly end and year-end to THB at the then current exchange rate. Any differences in the THB outstanding loan amount due to using a different exchange rate compared to last year leads to an unrealized FX gain (THB appreciation) or loss (THB depreciation). Hemaraj uses equity method to take that unrealized FX gain or loss to consolidate its financial statements. In Hemaraj’s view the unrealized FX gain or loss should then be viewed separately from operating revenue, particularly as cash flows are primarily hedged.
For further information concerning Hemaraj Land And Development Public Company Limited (SET symbol Hemraj), please visit our website at www.hemaraj.com or www.theparkresidence.co.th or contact us by email at invest@hemaraj.com
Mr. Paopitaya Smutrakalin, Director – Investor Relations
Hemaraj Land And Development Public Company Limited
18/F UM Tower, 9 Ramkhamhaeng, Suanluang, Bangkok 10250, Thailand
Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7