Company News
HEMARAJ ANNOUNCES Q1 RESULTS OPERATING REVENUE INCREASES 22%
17/05/2007
Bangkok, 14 May 2007: Hemaraj Land And Development Plc, Thailand’s leading developer of industrial estates and residential properties, today announced its operating and financial results for the first quarter of 2007.
For Quarter 1’2007, Hemaraj reported Total Net Income of Baht 254.9 million, or a decrease of 37 % compared with the same period of last year. Net Income attributable to normal Operating Earnings were Baht 249.3 million, or a decrease of 18 % compared with the same period of last year. The decrease of Total Net Income for Quarter 1’2007 was primarily due to the Total Net Income of Quarter 1, 2006 included a one time non-operating earnings of net Baht 97.2 million mainly from debt restructuring and a profit from associated companies mainly the Glow IPP dividend of Baht 120.7 million. As well, Quarter 1’2007 reflected an increase of income tax of Baht 46.5 million. Earning per share was 0.03 Baht per share, representing a decrease of 57% from the same period of last year due partially to more shares outstanding.
“Hemaraj started the first quarter of 2007 with the Operating Revenue of Baht 1,157.1 million, an increase of 22% from the same period of last year and Total Revenue of Baht 1,168.5 million. Net Income was strong at Baht 254.9 million,” said David Nardone, President & CEO of Hemaraj Land And Development Public Company Limited. “We see 2007 as offering continued opportunities with investment in the automotive, petrochemical, and other sectors. Despite soft short-term local consumption, Thailand remains well positioned to benefit from years of infrastructure investment and industrial cluster development, particularly at our Detroit of the East automotive cluster in the Eastern Seaboard.”
“Our strategy at Hemaraj of broadening the revenue by selectively pursuing superior profit opportunities from complementary customer solutions continues with industrial estate expansion, growth in utilities revenue, and selective property with SME factory rental & sales and residential condominium contributions,” he said.
“Hemaraj remains financially well positioned to fund organic business growth or acquisition opportunities, to leverage our development skills to continue to broaden revenue, thus reducing risks, and to increase predictable returns to shareholders.”
Revenue and Results of Operations for Quarter 1’2007
For Q1’2007, Hemaraj’s Total Revenue was Baht 1,168.5 million compared with Baht 1,087.2 million of the same period of last year, representing a 7% increase. Total Operating Revenue from core businesses was Baht 1,157.1 million versus Baht 950.6 million in 2006, or a 22% improvement. Industrial Land Sales were Baht 208.4 million, a 43 % decrease due to the lower level land sales and the slight difference in percent completion of development. Operating Revenue from Utilities increased to Baht 168.3 million, an increase of 25 %. Revenue from The Park Chidlom increased to Baht 648.8 million, representing an increase of 66 % compared with the same period of 2006.
For Q1’2007, the Gross Profit was Baht 498.5 million, an increase of 24% over the same period of the prior year. Earning Before Interest Tax Depreciation and Amortization (EBITDA) was Baht 416.5 million, or an increase of 37%. The Gross Profit Margin and EBITDA Margin also improved to 43% and 36%, respectively.
Significant Activities for Quarter 1, 2007
In Q1’2007, Industrial Land Sales were 114 rai with 8 contracts, being 5 new customers as well as 3 project expansions from existing customers. Total Customers are now 340 with 116 automotive customers.
3 New SME Factories contracts were signed with 2 factories rented and 1 factory sold.
Development of Hemaraj Eastern Seaboard Industrial Estate (H-ESIE) Phase 1 of 2,000 rai is ready for sale now. This is a continuation of the “Detroit of the East”automotive and industrial cluster.
The accumulated sales contracts of The Park Chidlom were Baht 4,860 million as at March 31, 2007.
126.99 million warrants were exercised in Quarter 1, 2007. Therefore, there are 545.46 million warrants and 9,163.92 million issued shares outstanding.
Activities after Quarter 1, 2007
The Annual General Meeting (AGM) held on April 27, 2007 approved Baht 0.04 per share final dividend payment for 2006 operating results. Combined with Baht 0.03 per share interim dividend, the total dividend for 2006 was Baht 0.07 per share.
Balance Sheet Highlights for the 3-month period ended 31st March 2007
At 31st March 2007, Hemaraj reported Total Assets of Baht 12,455 million, Total Liabilities of Baht 5,108 million and Total Shareholders Equity of Baht 7,347 million. The Net Debt to Equity ratio remained low at 0.52 to 1 with Cash on Hand of Baht 1,293 million.
Change of Accounting Policy in compliance with TAS 44
In Quarter 1, 2007, the Company changed its accounting policy regarding investment in subsidiaries so that the separate financial statement, which formerly reported investment using the equity method, now reports using the cost method. This is to comply with TAS 44. The Company used the historical cost as the cost of the investment in subsidiaries of the separate financial statement. This is because the separate financial statement did not include any share of profits from investments but will record as revenue once the subsidiaries declare the dividend payment.
However, the change of accounting policy affects only the separate financial statement. It did not have any effect on the consolidated financial statements.
For further information concerning Hemaraj Land And Development Plc., please visit our website at www.hemaraj.com or www.theparkresidence.co.th or contact by email at invest@hemaraj.com
Or contact:
BrandComm Consultants Co., Ltd.: Tel. 0-2645-0171
Ms. Pailin Buranamittranond / Mr. Dennis Duncan
About Hemaraj
Founded in 1988, Hemaraj Land And Development Public Company Limited is Thailand’s leading developer of industrial estates consisting of 6 industrial estates: Eastern Seaboard Industrial Estate (Rayong); Hemaraj Eastern Seaboard Industrial Estate; Hemaraj Eastern Industrial Estate (Map Ta Phut); Hemaraj Chonburi Industrial Estate; Rayong Industrial Land; and S I L Industrial Land (Saraburi). These estates represent 32,000 rai (13,000 acres) under development, industrial clusters for petrochemical automotive and other industries, approximately 340 customers including 116 automotive customers, providing direct employment for 50,000 people and a customer investment estimated at US$ 11.5 billion.
For Quarter 1’2007, Hemaraj reported Total Net Income of Baht 254.9 million, or a decrease of 37 % compared with the same period of last year. Net Income attributable to normal Operating Earnings were Baht 249.3 million, or a decrease of 18 % compared with the same period of last year. The decrease of Total Net Income for Quarter 1’2007 was primarily due to the Total Net Income of Quarter 1, 2006 included a one time non-operating earnings of net Baht 97.2 million mainly from debt restructuring and a profit from associated companies mainly the Glow IPP dividend of Baht 120.7 million. As well, Quarter 1’2007 reflected an increase of income tax of Baht 46.5 million. Earning per share was 0.03 Baht per share, representing a decrease of 57% from the same period of last year due partially to more shares outstanding.
“Hemaraj started the first quarter of 2007 with the Operating Revenue of Baht 1,157.1 million, an increase of 22% from the same period of last year and Total Revenue of Baht 1,168.5 million. Net Income was strong at Baht 254.9 million,” said David Nardone, President & CEO of Hemaraj Land And Development Public Company Limited. “We see 2007 as offering continued opportunities with investment in the automotive, petrochemical, and other sectors. Despite soft short-term local consumption, Thailand remains well positioned to benefit from years of infrastructure investment and industrial cluster development, particularly at our Detroit of the East automotive cluster in the Eastern Seaboard.”
“Our strategy at Hemaraj of broadening the revenue by selectively pursuing superior profit opportunities from complementary customer solutions continues with industrial estate expansion, growth in utilities revenue, and selective property with SME factory rental & sales and residential condominium contributions,” he said.
“Hemaraj remains financially well positioned to fund organic business growth or acquisition opportunities, to leverage our development skills to continue to broaden revenue, thus reducing risks, and to increase predictable returns to shareholders.”
Revenue and Results of Operations for Quarter 1’2007
For Q1’2007, Hemaraj’s Total Revenue was Baht 1,168.5 million compared with Baht 1,087.2 million of the same period of last year, representing a 7% increase. Total Operating Revenue from core businesses was Baht 1,157.1 million versus Baht 950.6 million in 2006, or a 22% improvement. Industrial Land Sales were Baht 208.4 million, a 43 % decrease due to the lower level land sales and the slight difference in percent completion of development. Operating Revenue from Utilities increased to Baht 168.3 million, an increase of 25 %. Revenue from The Park Chidlom increased to Baht 648.8 million, representing an increase of 66 % compared with the same period of 2006.
For Q1’2007, the Gross Profit was Baht 498.5 million, an increase of 24% over the same period of the prior year. Earning Before Interest Tax Depreciation and Amortization (EBITDA) was Baht 416.5 million, or an increase of 37%. The Gross Profit Margin and EBITDA Margin also improved to 43% and 36%, respectively.
Significant Activities for Quarter 1, 2007
In Q1’2007, Industrial Land Sales were 114 rai with 8 contracts, being 5 new customers as well as 3 project expansions from existing customers. Total Customers are now 340 with 116 automotive customers.
3 New SME Factories contracts were signed with 2 factories rented and 1 factory sold.
Development of Hemaraj Eastern Seaboard Industrial Estate (H-ESIE) Phase 1 of 2,000 rai is ready for sale now. This is a continuation of the “Detroit of the East”automotive and industrial cluster.
The accumulated sales contracts of The Park Chidlom were Baht 4,860 million as at March 31, 2007.
126.99 million warrants were exercised in Quarter 1, 2007. Therefore, there are 545.46 million warrants and 9,163.92 million issued shares outstanding.
Activities after Quarter 1, 2007
The Annual General Meeting (AGM) held on April 27, 2007 approved Baht 0.04 per share final dividend payment for 2006 operating results. Combined with Baht 0.03 per share interim dividend, the total dividend for 2006 was Baht 0.07 per share.
Balance Sheet Highlights for the 3-month period ended 31st March 2007
At 31st March 2007, Hemaraj reported Total Assets of Baht 12,455 million, Total Liabilities of Baht 5,108 million and Total Shareholders Equity of Baht 7,347 million. The Net Debt to Equity ratio remained low at 0.52 to 1 with Cash on Hand of Baht 1,293 million.
Change of Accounting Policy in compliance with TAS 44
In Quarter 1, 2007, the Company changed its accounting policy regarding investment in subsidiaries so that the separate financial statement, which formerly reported investment using the equity method, now reports using the cost method. This is to comply with TAS 44. The Company used the historical cost as the cost of the investment in subsidiaries of the separate financial statement. This is because the separate financial statement did not include any share of profits from investments but will record as revenue once the subsidiaries declare the dividend payment.
However, the change of accounting policy affects only the separate financial statement. It did not have any effect on the consolidated financial statements.
For further information concerning Hemaraj Land And Development Plc., please visit our website at www.hemaraj.com or www.theparkresidence.co.th or contact by email at invest@hemaraj.com
Or contact:
BrandComm Consultants Co., Ltd.: Tel. 0-2645-0171
Ms. Pailin Buranamittranond / Mr. Dennis Duncan
About Hemaraj
Founded in 1988, Hemaraj Land And Development Public Company Limited is Thailand’s leading developer of industrial estates consisting of 6 industrial estates: Eastern Seaboard Industrial Estate (Rayong); Hemaraj Eastern Seaboard Industrial Estate; Hemaraj Eastern Industrial Estate (Map Ta Phut); Hemaraj Chonburi Industrial Estate; Rayong Industrial Land; and S I L Industrial Land (Saraburi). These estates represent 32,000 rai (13,000 acres) under development, industrial clusters for petrochemical automotive and other industries, approximately 340 customers including 116 automotive customers, providing direct employment for 50,000 people and a customer investment estimated at US$ 11.5 billion.