公司新聞
AGM 2015: Hemaraj Foresees Future Development Opportunities
29/04/2015
Bangkok, 29 April 2015 – Hemaraj Land And Development Public Company Limited (“Hemaraj”) today held its Shareholders’ Annual General Meeting (AGM), a few days after the acquisition of 92.88% of its shares by WHA Venture Holding Co., Ltd., a subsidiary of WHA Corporation Public Company Limited.
Dr. Somyos Anantaprayoon, President and Chief Executive Officer of WHA, and Chairman of the Board of Directors/ Chairman of the Executive Committee of Hemaraj and Mr. David Nardone, President & CEO of Hemaraj, highlighted the synergies between the two companies, in view of forming a leading provider of logistics facilities, industrial estate, utility, and industrial property solutions.
“With an area of almost 1.2 million square meters, WHA is a world class leader of built to suit factories, logistics warehouses and the management of Real Estate Investment Trusts, while Hemaraj is a world-class developer of industrial estates, with strong activities in utilities services and power generation”, explained Dr. Somyos. “There are complementary industrial solutions between the two companies, which will result in additional benefits for our respective customers. Our objective is to grow into a fully-integrated industrial utility and logistics distribution developer, creating the largest and most comprehensive industrial estates and logistics business in Thailand,” he said.
With a new Board of Directors at the helm and the existing management team in place, Hemaraj President & CEO David Nardone emphasized the continuity in the company’s activities and operations. “The combination of the two companies’ strengths will enable us to leverage on a larger customer base, a dominant market share and the possibility to offer a broader industrial product inclusive of built to suit factories and multi location distribution logistics locations to our industrial customers,” he added.
Industrial Estates: Number One Market Share Since 2008
Hemaraj’s eight industrial estates represent 45,016 rai (18,006 acres or 7,203 hectares), allowing the company to hold the number one market share since 2008. They provide facilities and services to 653 distinct customers through 984 land or factory contracts, including 227 automotive customers with 346 automotive contracts, and 61 customers in the chemical/petrochemical industries. Altogether, this represents a total investment of more than USD 26 billion and covers key industries like automotive, petrochemical, steel & metal, power and electronics.
In 2015, Hemaraj forecasts land sales of 1,400 rai (560 acres or 224 hectares), representing a significant increase compared to 2014 with 665 rai (266 acres or 106 hectares). After recording land sales of 186 rai (74 acres or 30 hectares) during the first quarter of 2015, representing 7 new customers, 9 new contracts and 2 project expansions from existing customers, Hemaraj’s management anticipates a strong second quarter and sees an increasing trend for the following months.
These numbers reflect the current economic climate, with volumes in the automotive industry having declined short term, although long-term investments for new products or modern technologies continue to grow. Non-automotive sectors like consumer, electronics and petrochemical remain strong.
Key developments for 2015 and beyond include the completion of phase 6 of the Hemaraj Eastern Seaboard Industrial Estate (Hemaraj-ESIE), representing 575 rai (230 acres or 92 hectares); the completion of Hemaraj Chonburi Industrial Estate 2 (Hemaraj-CIE 2), covering an area of 632 rai (253 acres or 101 hectares); and the introduction of Hemaraj Eastern Seaboard Industrial Estate 2, with 3,765 rai (1,506 acres or 602 hectares).
Industrial estates are expected to contribute 42% of Hemaraj’s revenues throughout the period of 2014-2018. “Hemaraj’s solid experience in the development of industrial estates will be very beneficial to grow our portfolio of customers and penetrate into new markets in neighboring countries,” declared Dr. Somyos Anantaprayoon.
Promising Outlook for Ready-Built Factories and Logistic Warehouses
As another example of the synergies with WHA, Hemaraj brings to the new venture its robust portfolio of logistics parks and ready-built factories (RBF) which represent a total area of over 860,000 square meters.
Offering flexible areas ranging from 450 square meters up to 10,000 square meters, Hemaraj ready-built factories cover 688,296 square meters. This includes 241 units, or 538,179 square meters, under Hemaraj, plus 104 units or 150,117 square meters under the Hemaraj Property Fund (HPF). Logistics warehouses, with sizes ranging from 1,545 to 13,000 square meters, are available at the four Hemaraj Logistic Parks, for a combined area of 180,000 square meters built to date.
In 2015, projected net demand for ready-built factories is expected to increase by 23%, or 70,000 square meters, and by 48%, or 40,000 square meters for logistics parks.
Increased Recurring Revenue and Profit from Utilities and Power
With increased demand for water-related services – such as raw water, potable & clarified water and wastewater treatment - from power plants, steel mills, automotive, petrochemical and other industries, the annual growth rate of Hemaraj’s utilities is expected to reach 8% per annum within the next seven years. This represents a projected recurring revenue of THB 1.9 billion in 2015 and over THB 3 billion in 2022.
Hemaraj’s growth will also derive from the company’s successful stakes in five existing power plants, representing a total production of 1,652 MW and contributing 14% to the company’s revenues, principally through dividend profits. GHECO-ONE, a THB 42 billion joint-venture between Hemaraj (35%) and Glow (65%), is currently the main contributor to the company’s power business, with a predicted average profit of THB 1.225 billion in 2015 and 2016.
In addition, Hemaraj recently signed shareholders agreements for seven SPP projects, in which the company holds a 25.01% equity for each. Representing a potential production of 882 MW, these SPP projects will start operations during the period 2017-2019.
Hemaraj’s Healthy Financial Situation
Despite the 2014 economic slowdown and volatile environment for industrial investments, Hemaraj’s financial status remains robust, with a 2014 revenue of THB 6,333.1 million, and a net income of THB 2,960.6 million. The company’s recurring income continues to increase, now representing over 50% of the operating revenue, thanks to utilities services, partnerships in power plants projects, such as GHECO-One, and rentals of industrial properties. This balanced and predictable revenue results in higher revenue growth and higher profitability.
To reinforce further the company’s balance sheet, Hemaraj’s Board of Directors plans to sell non-core assets such as UM Tower, the company’s 31-storey office building located on Ramkhamhaeng Road, a 253-rai land bank in Koh Lan, an island situated off Pattaya and ready-built factories and warehouses to Hemaraj’s REIT in 2015.
“These divestments will improve the company return-on-assets (ROA)” explained Mr. Krailuck Asawachatroj, Hemaraj Executive Vice President and Chief Financial Officer.
Dr. Somyos Anantaprayoon, President and Chief Executive Officer of WHA, and Chairman of the Board of Directors/ Chairman of the Executive Committee of Hemaraj and Mr. David Nardone, President & CEO of Hemaraj, highlighted the synergies between the two companies, in view of forming a leading provider of logistics facilities, industrial estate, utility, and industrial property solutions.
“With an area of almost 1.2 million square meters, WHA is a world class leader of built to suit factories, logistics warehouses and the management of Real Estate Investment Trusts, while Hemaraj is a world-class developer of industrial estates, with strong activities in utilities services and power generation”, explained Dr. Somyos. “There are complementary industrial solutions between the two companies, which will result in additional benefits for our respective customers. Our objective is to grow into a fully-integrated industrial utility and logistics distribution developer, creating the largest and most comprehensive industrial estates and logistics business in Thailand,” he said.
With a new Board of Directors at the helm and the existing management team in place, Hemaraj President & CEO David Nardone emphasized the continuity in the company’s activities and operations. “The combination of the two companies’ strengths will enable us to leverage on a larger customer base, a dominant market share and the possibility to offer a broader industrial product inclusive of built to suit factories and multi location distribution logistics locations to our industrial customers,” he added.
Industrial Estates: Number One Market Share Since 2008
Hemaraj’s eight industrial estates represent 45,016 rai (18,006 acres or 7,203 hectares), allowing the company to hold the number one market share since 2008. They provide facilities and services to 653 distinct customers through 984 land or factory contracts, including 227 automotive customers with 346 automotive contracts, and 61 customers in the chemical/petrochemical industries. Altogether, this represents a total investment of more than USD 26 billion and covers key industries like automotive, petrochemical, steel & metal, power and electronics.
In 2015, Hemaraj forecasts land sales of 1,400 rai (560 acres or 224 hectares), representing a significant increase compared to 2014 with 665 rai (266 acres or 106 hectares). After recording land sales of 186 rai (74 acres or 30 hectares) during the first quarter of 2015, representing 7 new customers, 9 new contracts and 2 project expansions from existing customers, Hemaraj’s management anticipates a strong second quarter and sees an increasing trend for the following months.
These numbers reflect the current economic climate, with volumes in the automotive industry having declined short term, although long-term investments for new products or modern technologies continue to grow. Non-automotive sectors like consumer, electronics and petrochemical remain strong.
Key developments for 2015 and beyond include the completion of phase 6 of the Hemaraj Eastern Seaboard Industrial Estate (Hemaraj-ESIE), representing 575 rai (230 acres or 92 hectares); the completion of Hemaraj Chonburi Industrial Estate 2 (Hemaraj-CIE 2), covering an area of 632 rai (253 acres or 101 hectares); and the introduction of Hemaraj Eastern Seaboard Industrial Estate 2, with 3,765 rai (1,506 acres or 602 hectares).
Industrial estates are expected to contribute 42% of Hemaraj’s revenues throughout the period of 2014-2018. “Hemaraj’s solid experience in the development of industrial estates will be very beneficial to grow our portfolio of customers and penetrate into new markets in neighboring countries,” declared Dr. Somyos Anantaprayoon.
Promising Outlook for Ready-Built Factories and Logistic Warehouses
As another example of the synergies with WHA, Hemaraj brings to the new venture its robust portfolio of logistics parks and ready-built factories (RBF) which represent a total area of over 860,000 square meters.
Offering flexible areas ranging from 450 square meters up to 10,000 square meters, Hemaraj ready-built factories cover 688,296 square meters. This includes 241 units, or 538,179 square meters, under Hemaraj, plus 104 units or 150,117 square meters under the Hemaraj Property Fund (HPF). Logistics warehouses, with sizes ranging from 1,545 to 13,000 square meters, are available at the four Hemaraj Logistic Parks, for a combined area of 180,000 square meters built to date.
In 2015, projected net demand for ready-built factories is expected to increase by 23%, or 70,000 square meters, and by 48%, or 40,000 square meters for logistics parks.
Increased Recurring Revenue and Profit from Utilities and Power
With increased demand for water-related services – such as raw water, potable & clarified water and wastewater treatment - from power plants, steel mills, automotive, petrochemical and other industries, the annual growth rate of Hemaraj’s utilities is expected to reach 8% per annum within the next seven years. This represents a projected recurring revenue of THB 1.9 billion in 2015 and over THB 3 billion in 2022.
Hemaraj’s growth will also derive from the company’s successful stakes in five existing power plants, representing a total production of 1,652 MW and contributing 14% to the company’s revenues, principally through dividend profits. GHECO-ONE, a THB 42 billion joint-venture between Hemaraj (35%) and Glow (65%), is currently the main contributor to the company’s power business, with a predicted average profit of THB 1.225 billion in 2015 and 2016.
In addition, Hemaraj recently signed shareholders agreements for seven SPP projects, in which the company holds a 25.01% equity for each. Representing a potential production of 882 MW, these SPP projects will start operations during the period 2017-2019.
Hemaraj’s Healthy Financial Situation
Despite the 2014 economic slowdown and volatile environment for industrial investments, Hemaraj’s financial status remains robust, with a 2014 revenue of THB 6,333.1 million, and a net income of THB 2,960.6 million. The company’s recurring income continues to increase, now representing over 50% of the operating revenue, thanks to utilities services, partnerships in power plants projects, such as GHECO-One, and rentals of industrial properties. This balanced and predictable revenue results in higher revenue growth and higher profitability.
To reinforce further the company’s balance sheet, Hemaraj’s Board of Directors plans to sell non-core assets such as UM Tower, the company’s 31-storey office building located on Ramkhamhaeng Road, a 253-rai land bank in Koh Lan, an island situated off Pattaya and ready-built factories and warehouses to Hemaraj’s REIT in 2015.
“These divestments will improve the company return-on-assets (ROA)” explained Mr. Krailuck Asawachatroj, Hemaraj Executive Vice President and Chief Financial Officer.