"WHA Group” Achieves New High Record in 1H/2024 with Net Profit of THB 2,653 Million, Marking Over 91% YoY Growth; Company Adjusts Sales Target to Accommodate Investment Base Relocation"

Bangkok - WHA Corporation Public Company Limited (WHA Group) has reported its outstanding 1H/2024 performance, with total revenue and share of profit of THB 7,273 million, and a net profit of THB 2,653 million. This is divided into normalized total revenue and share of profit of THB 7,080 million, and normalized profit of THB 2,549 million, driven by the growth of the 4 business hubs: Logistics, Industrial Estates, Utilities and Power, and Digital. Group CEO Miss Jareeporn Jarukornsakul, has signaled a positive outlook by preparing to adjust the land sales target to accommodate investors looking to relocate their investment and production bases to Thailand continuously.

WHA Corporation Public Company Limited (WHA Group) has reported its performance for Q2/2024, with total revenue and share of profit amounting to THB 3,343 million, and a net profit of THB 1,289 million. The normalized total revenue and share of profit amounted to THB 3,304 million increased by 5%, while the normalized profit amounted to THB 1,265 million increased by 55% compared to the same quarter of last year.

For the first six months of 2024, the company reported total revenue and share of profit of THB 7,273 million, with a net profit of THB 2,653 million. When considering normal business performance, the company achieved normalized total revenue and share of profit of THB 7,080 million, an increase of 27%, and normalized profit of THB 2,549 million, an increase of 93% YoY. This growth reflects the strong growth potential of the 4 business hubs.

Ms. Jareeporn Jarukornsakul, Chairman of the Executive Committee and Group CEO of WHA Corporation PCL “WHA Group”, revealed that the company's performance growth in 1H/2024 reaffirms the success as a leader in the four business hubs—Logistics, Industrial Estates, Utilities and Power, and Digital—in both Thailand and Vietnam.

Logistics Business: In 1H/2024, the logistics business signed Built-to-Suit lease agreements and the addition of ready-built factories/warehouse totaling 33,699 sq.m. Furthermore, short-term lease contracts with high returns covering 88,344 sq.m. This resulted in a total warehouse space under ownership and management of 2,988,762 sq.m. In Q2 and 1H/2024, the company recognized revenue from rental property and electric vehicle businesses totaling THB 343 million and THB 640 million, respectively.

Regarding the progress of the Green Logistics project, the company established Mobilix Co., Ltd., a brand that provides comprehensive electric vehicle services. These services include commercial electric transport, charging system installation, charging stations, and the Mobilix Platform, which aims to enhance efficiency in managing electric vehicles and batteries for customers. By the end of Q2/2024, business customers had signed lease-purchase contracts up to 280 electric vehicles.

Due to the on-going demand for high-quality warehouse and factory spaces, the company is currently negotiating with several customers. In Q2/2024, the company has been awarded contracts from leading logistics service providers and a company specializing in manufacturing and distributing decorative products and home repair services. These customers have a combined need for warehouse spaces totaling over 63,000 sq.m. The company expects to sign lease agreements with these customers soon.

Regarding the WHA Group Mega Logistics Center Bangna-Trad KM. 23 Project 3, after its launch, it has received positive feedback from customers, including logistics service providers and advertising design and production firm, who have expressed interest and/or signed lease agreements for a combined space of 26,100 sq.m. Furthermore, at the WHA Group Mega Logistics Center Bangna-Trad KM. 23 (Inbound) a logistics service company has shown interest in leasing approximately 24,000 sq.m. of warehouse space, with the lease agreement currently in preparation.

“The WHA Mega Logistics Center Theparak KM. 21 Building B has been certified with the LEED Gold standard version 4.1 BD+C for the warehouse and distribution center. This certification represents the latest green building standard set by the United States Green Building Council and sets the future standard for sustainable construction and design of green buildings.”

Regarding the plan to sell assets and/or leasehold rights to WHAIR this year, the WHAIR Trust unit holders have recently approved a fifth additional investment valued at up to THB 1,065 million for 4 projects. These projects encompass a combined area of 40,172 sq.m., with revenue expected to be recognized in Q4/2024.

Industrial Development Business: In 1H/2024, the company’s industrial estate business recorded total land sales of 1,042 rai (Thailand 979 rai, Vietnam 63 rai) and signed MOUs for 756 rai (Thailand 714 rai, Vietnam 43 rai). In Q2 and 1H/2024, revenue and share of profit from the industrial estate business were recognized, totaling THB 1,460 million and THB 3,587 million, respectively. This was driven by land transfers, which rose more than 65% year-on-year, due to the ongoing investment and production base relocation to Southeast Asia. By the end of Q2/2024, the company has a backlog of land sales awaiting transfer to customers, totaling approximately 879 rai (Thailand 871 rai, Vietnam 8 rai).

" In Q2/2024, part of the land sales will come from signing a land purchase agreement with a major global battery manufacturer planning to build a battery cell production plant on over 100 rai of land to support the electric vehicle industry and energy storage systems in Thailand. This underscores Thailand's significance as a major production and investment destination in the region for emerging industries such as electric vehicles.

Currently, the company has a total of 77,600 rai of industrial estate land in both Thailand and Vietnam. This includes 12 operational industrial estates in Thailand, and 7 new expansion/development projects covering a combined area over 9,430 rai. This will result in the company having a total industrial estate area of over 52,650 rai in the next 3 years. For the WHA Eastern Seaboard Industrial Estate 5 (3,400 rai), which is currently undergoing the permit application process, the company expects to commence construction in Q1/2025 and have land ready for sale by Q2/2025.

For Vietnam, the company currently operates and is developing industrial zones covering a total area of 22,815 rai (3,650 hectares). This includes the WHA Industrial Zone 1 - Nghe An, which has received continuous positive feedback from customers, and the WHA Industrial Zone 2 - Nghe An which includes Phase 1A/1B and Phase 2, is still under development and covers an area of 1,600 rai (250 hectares). It is expected that the permits for the Phase 1A/1B project area of 1,200 rai (189 hectares) will be obtained within this year. Furthermore, the company also has plans to develop 3 new industrial zones in Thanh Hoa and Quang Nam provinces, with a total area of over 9,690 rai (1,550 hectares).

The company expects the industrial estate business to continue its strong growth in the second half of the year, building on the performance from the first half. Particularly in Thailand, the industrial estate sector is benefiting from geopolitical tensions that are driving increased investment and production shifts to the country. Additionally, the average land selling price is expected to continue rising. By the end of 2024, the company anticipates signing land sale contracts exceeding the initial target of 2,275 rai set at the beginning of the year. Plans to revise the land sales target for this year are currently being prepared and will be announced soon.

Utilities Business (Water): The company has continued to perform well from the previous year, enabling the company to recognize revenue and share of profit from investments in utilities associates in Q2 and 1H/2024 to THB 761 million and THB 1,531 million, respectively. The total volume of water sales and water management both domestically and internationally reached the Q2 and 1H/2024 total 43.1 million cubic meters and 83.9 million cubic meters, respectively.

The volume of domestic water sales in Q2 and 1H/2024 amounted to 34.0 million cubic meters and 66.5 million cubic meters, respectively. This is attributed to the growth in the sales volume of all water products, especially value-added water, which had increased water demand from new customers who have gradually commenced commercial operations during Q3/2023. Furthermore, in May, the company entered a private water supply contract with the Provincial Waterworks Authority for a volume of 2.6 million cubic meters per year, providing services of the Nong Khae Provincial Waterworks Authority in Saraburi province. It is expected to commence commercial operations in Q3/2024.

The company has also signed a purchase agreement with PTT Global Chemical PCL (GC) for 3.5 million cubic meters per year of Premium Clarified Water that will be used within the GC factory in the WHA Eastern Industrial Estate (Map Ta Phut). Commercial operations are expected to commence in Q3/ 2024.

The volume of water sales and water management in Vietnam in Q2 and 1H/2024 have improved, resulting in a total water sales volume according to equity stake of 9.1 million cubic meters and 17.3 million cubic meters, respectively. This increase is attributed to the growth in water sales and water management of the Duong River project, which has been continuously expanding its service area and experiencing an increased demand for water from existing and new customers. As a result, the company has realized a share of profit in 1H/2024 amounting to THB 39.5 million, an increase from recognizing a loss share of THB 12.3 million YoY.

Power Business: The company recognizes a normalized share of profit from investments in joint ventures and associated companies, excluding gains/losses from exchange rates and revenue from solar energy business in Q2 and 1H/2024, totaling THB 302 million and THB 654 million, respectively. The normalized share of profits from the power business has decreased YoY due to the reduced share of profits recognized from the GHECO-One power plant, resulting from recognizing high coal costs in the past quarter. Additionally, the share of profit from the SPP power plants has decreased due to the maintenance downtime of some power plant customers Gulf TS2 and TS3.

For the solar power business, in Q2/2024, the company signed 12 contracts for additional solar power projects, comprising 11 Private PPA projects with a total capacity of approximately 13 MW in production and 1 EPC Service project with a total production capacity of 1 MW. By the end of Q2/2024, the company has the total accumulated signed capacity of 256 MW for Private PPA and a total secured capacity at 932 MW equity. This includes 682 MW of operational electricity production capacity and 250 MW under development.

The company has been selected by the Energy Regulatory Commission to develop renewable energy power plants under the Feed-in Tariff Phase 1 scheme for 5 projects with a total electricity production capacity based on equity stake of 125.4 MW. Currently, contracts have been successfully signed for 4 projects totaling 85 MW, and it is expected that the remaining 1 project with a capacity of 40 MW will be signed for a Power Purchase Agreement (PPA) within Q3/2024. The project’s commercial operation date is scheduled between 2029-2030.

Digital Business: The company is advancing on all fronts to become a Technology Company in 2024 under the "Mission To The Sun (MTTS)" mission by transforming the business into digital, creating new products and value-added services, and enhancing business capabilities to meet customer needs. One of the significant projects making progress is the Green Logistics project, which is in the development phase of the Mobilix Platform. This platform integrates various services ranging from fleet management, route optimization to linking electric vehicle charging station networks. Recently, the company has collaborated with Voltality, a leading e-roaming platform connecting charging point operators with electric vehicle service providers. Additionally, the company has partnered with Datakrew, experts in real-time analysis of EV batteries, to enhance operational efficiency, customer satisfaction, and strengthen the company's electric vehicle ecosystem.

Furthermore, the company continues to drive the AI Transformation project, leveraging AI technology to enhance business capabilities in all aspects. Most recently, the company has developed Generative AI powered by the latest AI model, GPT-4o, which can process several formats, including images, document files, and audio files. This advanced AI model can also analyze personal data securely, increasing work efficiency across various tasks.

Recently, the company received recognition highlighting WHA Group’s success. WHA Group and WHAUP were awarded the "Khon Dee Rak Lok (Earth Protector)" award for promoting awareness of natural resource conservation, sustainable business practices, and advancing investments in renewable energy and proper water management through its subsidiary WHAUP. Additionally, WHA Industrial Zone 1 – Nghe An has been recognized with prestigious awards in the Industrial Zone Developer with Green Transformation Strategies category at the Vietnam Industrial Property Forum (VIPF) 2024.

Furthermore, the company was honored by the Thaipat Institute, which announced that WHA, WHART, and WHAIR have been consistently included in the ESG100 list for 2024. WHART has been listed for the ESG100 for the 6th consecutive year, while WHAUP has been included in the ESG100 list for the first time and has been named one of the top 19 securities on the “2024 ESG Emerging List.”