Company News
HEMARAJ - 9 MONTHS 2008 NET PROFIT UP 49% TO BAHT 1,266 MILLION
14/11/2008
Hemaraj Land And Development Public Company Limited announced its operating and financial results for Quarter 3, 2008 and year to date as summarized below.
Quarter 3’2008 and 9 months of 2008 Net Income
For Quarter 3’2008, Hemaraj reported Total Net Income of Baht 389.5 million, or an increase of 27% compared with the same period of last year. Net Income attributable to normal Operating Earnings were Baht 386.2 million, or an increase of 30% compared with the same period of last year. The increase of Net Income from Operating Business for Quarter 3’2008 was due to better operational performance and a lower tax compared to the same period of prior year.
For the first 9 months of 2008, Hemaraj reported Total Net Income of Baht 1,265.6 million, or an increase of Baht 418.6 million or 49% compared with the same period of 2007. This was partially due to the first 9 months of 2008 included dividends and profits from associated companies of Baht 62.1 million, the reversal of specific tax and transfer fee accruals of Baht 248.2 million from previous quarters due to lower transfer costs, higher interest expenses, and a lower income tax compared to the prior year.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Hemaraj finished the first 9 months of 2008 with Total Net income of Baht 1,266 million, an increase of Baht 419 million or 49%. Total Revenue was Baht 4,199 million compared with Baht 3,742 million for the same period of 2007, representing a 12% increase. With anticipated lower residential revenue to date (5% of operating revenue) compared to 2007 (43% of operating revenue), our broad revenue base of industrial estates, utilities, and property replaced this.
We are also leading the market in industrial estates sales (or rental) with 1,319 rai (528 acres) recorded in the first 9 months of 2008. Suzuki Motors, and other leading companies selected Hemaraj industrial estates with 47 contracts, 21 new customers and 26 project expansions from existing customers to date in 2008. While we do anticipate and we are prepared financially for short-term softness in the market due to uncertain global conditions, long-term fundaments for Thailand and our business model will remain attractive. Infrastructure investment and industrial cluster opportunities will continue to drive automotive, petrochemical, and other industrial sector investment in Thailand, particularly at Hemaraj’s “Detroit of the East” automotive cluster in the Eastern Seaboard.
Including the business in hand to date in 2008, we again reaffirm our revised record forecast of 1,700 rai (680 acres) for 2008 Industrial Estate Sales from a 1,300 rai (520 acres) 2008 budget.
Hemaraj is ideally positioned in these uncertain times to increased broadened revenue opportunities as markets globally start to settle and to eventually recover. Hemaraj will continue to leverage development skills including power and other recurring utility income, to utilize a strong balance sheet for acquisition opportunities including distressed assets, yet to manage the risk profile of the company in order to optimize predictable returns to shareholders.”
Revenue and Results of Operations for 9 Months of 2008
For the first 9 months of 2008, Hemaraj’s Total Revenue was Baht 4,198.9 million compared with Baht 3,742.2 million for the same period of 2007, representing a 12% increase. Total Operating Revenue from core businesses was Baht 3,810.6 million, a 3% increase from the same period of 2008. Industrial Estate Land Sales for the first 9 months of 2008 including Profit from Associated Industrial Estate were Baht 2,462.5 million, or a 101% increase. There is an additional Baht 1,120 million in deferred revenue from Industrial Estate Land Sales not recognized to date, based on the percent completion method from 3 industrial estate new phase developments and representing sales that will be recognized primarily over the next 3 to 18 months.
Total Utilities Revenue including industrial estate utilities, profit dividend from power utilities associates, and other utilities and services fees increased to Baht 681.9 million, an increase of 19%. Total Rent Revenue including SME factory rental, pipe-rack rental, and commercial office rental increased to Baht 277.6 million, an increase of 32%. Sale of Property including SME factory sales, residential sales and other land/property sales decreased to Baht 388.6 million from Baht 1,676.1 million, a 77% decrease due to residential prior year percent completion.
The Gross Profit was Baht 1,649.0 million, a 3% increase from the same period of last year. Earning Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 1,324.4 million, an increase of 6%. The Gross Profit Margin and EBITDA Margin were 43% and 35%, respectively.
Significant Activities for the first 9 months of 2008
- Industrial Estate Sales were 1,319 rai (528 acres) with 47 contracts, 21 new customers and 26 project expansions from existing customers. Total industrial customers are now 388 distinct new customers with 571 contracts and 129 automotive customers representing some $ 15 billion of customer investment.
- Suzuki Motors purchased 412 rai (165 acres) at Hemaraj Eastern Seaboard Industrial Estate.
- 16 New SME Factories contracts signed with 11 factories rented and 5 factory sold.
- TRIS upgraded the company rating of Hemaraj to “A-/Stable from BBB+/Stable”
- GHECO-One 660MW IPP Power Project, 35% shareholding with Glow Energy (GDF Suez Group), signed EPC, PPA, and Financing Contracts.
- The Board of Directors has approved the interim dividend of Baht 0.035 per share to be paid on 12th December 2008, with the book closing date on 28th November 2008.
Balance Sheet Highlights at 30th September 2008
At 30th September 2008 Hemaraj reported Total Assets of Baht 14,223 million, Total Liabilities of Baht 5,754 million and Total Shareholders Equity of Baht 8,469 million. The Net Debt to Equity ratio improved to 0.49 to 1, despite significant capital investment activities. Cash on Hand was Baht 1,605 million.
For information concerning Hemaraj Land And Development Plc., please visit our website at www.hemaraj.com or contact by email at invest@hemaraj.com
Mr. Paopitaya Smutrakalin, Director, Investor Relations
Hemaraj Land And Development Plc.
18/F UM Tower, 9 Ramkhamhaeng RoadSuanluang, Bangkok 10250, Thailand
Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7
Quarter 3’2008 and 9 months of 2008 Net Income
For Quarter 3’2008, Hemaraj reported Total Net Income of Baht 389.5 million, or an increase of 27% compared with the same period of last year. Net Income attributable to normal Operating Earnings were Baht 386.2 million, or an increase of 30% compared with the same period of last year. The increase of Net Income from Operating Business for Quarter 3’2008 was due to better operational performance and a lower tax compared to the same period of prior year.
For the first 9 months of 2008, Hemaraj reported Total Net Income of Baht 1,265.6 million, or an increase of Baht 418.6 million or 49% compared with the same period of 2007. This was partially due to the first 9 months of 2008 included dividends and profits from associated companies of Baht 62.1 million, the reversal of specific tax and transfer fee accruals of Baht 248.2 million from previous quarters due to lower transfer costs, higher interest expenses, and a lower income tax compared to the prior year.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Hemaraj finished the first 9 months of 2008 with Total Net income of Baht 1,266 million, an increase of Baht 419 million or 49%. Total Revenue was Baht 4,199 million compared with Baht 3,742 million for the same period of 2007, representing a 12% increase. With anticipated lower residential revenue to date (5% of operating revenue) compared to 2007 (43% of operating revenue), our broad revenue base of industrial estates, utilities, and property replaced this.
We are also leading the market in industrial estates sales (or rental) with 1,319 rai (528 acres) recorded in the first 9 months of 2008. Suzuki Motors, and other leading companies selected Hemaraj industrial estates with 47 contracts, 21 new customers and 26 project expansions from existing customers to date in 2008. While we do anticipate and we are prepared financially for short-term softness in the market due to uncertain global conditions, long-term fundaments for Thailand and our business model will remain attractive. Infrastructure investment and industrial cluster opportunities will continue to drive automotive, petrochemical, and other industrial sector investment in Thailand, particularly at Hemaraj’s “Detroit of the East” automotive cluster in the Eastern Seaboard.
Including the business in hand to date in 2008, we again reaffirm our revised record forecast of 1,700 rai (680 acres) for 2008 Industrial Estate Sales from a 1,300 rai (520 acres) 2008 budget.
Hemaraj is ideally positioned in these uncertain times to increased broadened revenue opportunities as markets globally start to settle and to eventually recover. Hemaraj will continue to leverage development skills including power and other recurring utility income, to utilize a strong balance sheet for acquisition opportunities including distressed assets, yet to manage the risk profile of the company in order to optimize predictable returns to shareholders.”
Revenue and Results of Operations for 9 Months of 2008
For the first 9 months of 2008, Hemaraj’s Total Revenue was Baht 4,198.9 million compared with Baht 3,742.2 million for the same period of 2007, representing a 12% increase. Total Operating Revenue from core businesses was Baht 3,810.6 million, a 3% increase from the same period of 2008. Industrial Estate Land Sales for the first 9 months of 2008 including Profit from Associated Industrial Estate were Baht 2,462.5 million, or a 101% increase. There is an additional Baht 1,120 million in deferred revenue from Industrial Estate Land Sales not recognized to date, based on the percent completion method from 3 industrial estate new phase developments and representing sales that will be recognized primarily over the next 3 to 18 months.
Total Utilities Revenue including industrial estate utilities, profit dividend from power utilities associates, and other utilities and services fees increased to Baht 681.9 million, an increase of 19%. Total Rent Revenue including SME factory rental, pipe-rack rental, and commercial office rental increased to Baht 277.6 million, an increase of 32%. Sale of Property including SME factory sales, residential sales and other land/property sales decreased to Baht 388.6 million from Baht 1,676.1 million, a 77% decrease due to residential prior year percent completion.
The Gross Profit was Baht 1,649.0 million, a 3% increase from the same period of last year. Earning Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 1,324.4 million, an increase of 6%. The Gross Profit Margin and EBITDA Margin were 43% and 35%, respectively.
Significant Activities for the first 9 months of 2008
- Industrial Estate Sales were 1,319 rai (528 acres) with 47 contracts, 21 new customers and 26 project expansions from existing customers. Total industrial customers are now 388 distinct new customers with 571 contracts and 129 automotive customers representing some $ 15 billion of customer investment.
- Suzuki Motors purchased 412 rai (165 acres) at Hemaraj Eastern Seaboard Industrial Estate.
- 16 New SME Factories contracts signed with 11 factories rented and 5 factory sold.
- TRIS upgraded the company rating of Hemaraj to “A-/Stable from BBB+/Stable”
- GHECO-One 660MW IPP Power Project, 35% shareholding with Glow Energy (GDF Suez Group), signed EPC, PPA, and Financing Contracts.
- The Board of Directors has approved the interim dividend of Baht 0.035 per share to be paid on 12th December 2008, with the book closing date on 28th November 2008.
Balance Sheet Highlights at 30th September 2008
At 30th September 2008 Hemaraj reported Total Assets of Baht 14,223 million, Total Liabilities of Baht 5,754 million and Total Shareholders Equity of Baht 8,469 million. The Net Debt to Equity ratio improved to 0.49 to 1, despite significant capital investment activities. Cash on Hand was Baht 1,605 million.
For information concerning Hemaraj Land And Development Plc., please visit our website at www.hemaraj.com or contact by email at invest@hemaraj.com
Mr. Paopitaya Smutrakalin, Director, Investor Relations
Hemaraj Land And Development Plc.
18/F UM Tower, 9 Ramkhamhaeng RoadSuanluang, Bangkok 10250, Thailand
Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7