Company News
Hemaraj Projects Positive Outlook for 2010 and Beyond
30/06/2010
First-Half gains boosted by major land sales to Ford Motor Company Thailand give way to Second-Half and indicating “A Time to Grow” for the next few years.
Bangkok, 30 June 2010. Hemaraj Land And Development Public Company Limited today announced its market operations and financial outlook for the second half of 2010.
"Hemaraj remains on track to deliver solid operating and financial results for 2010 thanks to robust industrial estate utility and property growth with increased revenue for the year as well as a positive outlook for the second half of this year and beyond. The automotive domestic and export markets have roared back for Thailand with a 50 to 60% automotive production increase projected for 2010. GDP growth, overcoming politics, look solid at 5% growth for 2010 with overall exports year to date up some 35%.” said Mr. David Nardone, President & CEO.
“The increases are mainly due to significant improvements in our industrial land sales, plus rising revenue from utilities services and property projects. We are proud of having 610 rai (244 acres) sold in the first half of this year, despite some softness in the middle of the second quarter and from lower levels with depressed demand in 2009. From the positive end of our prior guidance at which we expected to sell 800 rai (320 acres) to 1,000 rai (400 acres) in 2010, Hemaraj is projecting a solid 1,000 rai forecast for 2010.”
“As part of Hemaraj Eastern Seaboard’s Detroit of the East, we have recently sold to Ford Motor Company Thailand 468 rai (187 acres) at Hemaraj Eastern Seaboard Industrial Estate for Ford’s new plant expansion in Thailand. The revenue from this historic relationship will be recognized primarily in 2010 and 2011 based on the percentage of the plant’s completion.”
Per their announcement, Ford Motor Company is investing Bt15 billion (US$450 million) to construct a new passenger vehicle plant in Thailand. The 748,800-square metre area will have an initial capacity of 150,000 units a year, of which 85% will be destined for export.
“The fact that Ford Motor Company chose Hemaraj Eastern Seaboard Industrial Estate for their new plant expansion in Thailand reinforces the success of Hemaraj’s automotive cluster. It also reflects Ford’s confidence in the high quality land development, infrastructure, utilities and value added services Hemaraj has to offer. It is no secret Hemaraj started the “Detroit of the East”, alongside Ford’s investment in Auto Alliance Thailand, together some 16 years ago.” said Mr. Nardone.
To date, Hemaraj’s auto cluster at Eastern Seaboard Industrial Estate (Rayong) and Hemaraj Eastern Seaboard Industrial Estate has a total land area of about 17,000 rai or 6,700 acres. Now over 144 auto companies operate a total of automotive 210 plants in these estates. The Ford land sales will promisingly lead to more suppliers in the automotive sector.
“An integral part in our business outlook for 2010 is our commitment to the environment and local communities. Apart from innovative solutions to safeguard environment around Hemaraj’s industrial estates and communities, the Environmental Monitoring & Control Center (ESIE), or E:mc^2, lately developed by Hemaraj in collaboration with the Industrial Estate Authority of Thailand (IEAT), is playing a significant role in protecting the environment at our Eastern Seaboard Industrial Estate (Rayong),” added Vivat Jiratikarnsakul, Executive Vice President of Hemaraj.
For the welfare of local communities, Hemaraj continues its education and social welfare support to the local communities. This year the “Adopt-A-School - Train the Trainer Program” is taking a big step forward in providing training on holistic learning approach for about 100-200 teachers from schools within areas around Hemaraj’s Industrial Estate in Rayong and Chonburi. Other on-going programs include the annual school contribution program, scholarships, art camp for school students, sponsorship for Chonburi Football Club, free mobile medical units and latest initiated ‘skill trainings for housewives’.
Recapping Hemaraj growth projections for 2010 and beyond, an update of areas of business and projections.
Industrial Estates
Industrial Estate revenue will double in 2010 for Hemaraj from a depressed level in 2009 as global demand had contracted.
Forecast for 2010 is 1,000 rai industrial land sales with over 60% done at mid-year and prospects encouraging for future years.
Key areas of Hemaraj business are performing well in 2010 with minimal political impact and will continue while new capacity is coming on line for automotive exports and others.
We believe from 2011 petrochemical downstream investment will return as rules of EHIA approvals are in place and fairly attainable.
Utilities
Industrial Estate Utilities will increase 25 % in 2010 from flat levels in 2009.
Industrial Estate Utilities revenue will increase from baht 960 million in 2009 to baht 2 billion within 2016.
Power capital investment committed to date is over baht 5 billion.
Power dividend or profit to Hemaraj, are baht 1.2 billion to 1.5 billion per annum from 2012 to 2018 from current projects only.
Property
The Park Chidlom sales resumed in 2010 with strong sales prices and product acceptance.
Intent to launch additional property projects in both Bangkok and Eastern Seaboard in 2010.
Ready Built Factory rental space to increase 35 % in 2010 and sales strong from a low 2009 base. CAGR rate projection of 15% per annum.
Financial
Cash available for investment over baht 2.5 billion.
Surge in predictable profitability from 2012 from existing power projects dividends.
Strong balance sheet and experience in focused development area to support expansion.
“By maintaining strategic focus on broadening our revenue stream from industrial estates, utilities and property, we are ideally positioned as the Thai economy continues to recover in 2010 and into 2011 with less volatile market conditions. From 2010 through 2015 with strong financial resources at our disposal, we see significant opportunities, with right now being the ‘Time to Grow’ for Hemaraj.”
About Hemaraj
Hemaraj Land And Development Public Company Limited is Thailand’s leading developer of Industrial Estates, Utilities, and Property Customer Solutions. The company develops and manages six industrial estates covering a total area of 32,000 rai or 13,000 acres with automotive, petrochemical and other clusters comprising 417 distinct customers, 144 automotive customers, 621 factory contracts, and customer investment estimate of USD 18 billion generating more than 53,000 jobs.
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 Plc.
18/F UM Tower, 9 Ramkhamhaeng, Suanluang, Bangkok 10250, Thailand
Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7
Or contact
BrandComm Consultants Co., Ltd.
Ms. Pailin Buranamittranond /
Ms. Saovarin Thongthad
Tel. 02 642 9620 (12 lines) Fax. 02 642 9688
Bangkok, 30 June 2010. Hemaraj Land And Development Public Company Limited today announced its market operations and financial outlook for the second half of 2010.
"Hemaraj remains on track to deliver solid operating and financial results for 2010 thanks to robust industrial estate utility and property growth with increased revenue for the year as well as a positive outlook for the second half of this year and beyond. The automotive domestic and export markets have roared back for Thailand with a 50 to 60% automotive production increase projected for 2010. GDP growth, overcoming politics, look solid at 5% growth for 2010 with overall exports year to date up some 35%.” said Mr. David Nardone, President & CEO.
“The increases are mainly due to significant improvements in our industrial land sales, plus rising revenue from utilities services and property projects. We are proud of having 610 rai (244 acres) sold in the first half of this year, despite some softness in the middle of the second quarter and from lower levels with depressed demand in 2009. From the positive end of our prior guidance at which we expected to sell 800 rai (320 acres) to 1,000 rai (400 acres) in 2010, Hemaraj is projecting a solid 1,000 rai forecast for 2010.”
“As part of Hemaraj Eastern Seaboard’s Detroit of the East, we have recently sold to Ford Motor Company Thailand 468 rai (187 acres) at Hemaraj Eastern Seaboard Industrial Estate for Ford’s new plant expansion in Thailand. The revenue from this historic relationship will be recognized primarily in 2010 and 2011 based on the percentage of the plant’s completion.”
Per their announcement, Ford Motor Company is investing Bt15 billion (US$450 million) to construct a new passenger vehicle plant in Thailand. The 748,800-square metre area will have an initial capacity of 150,000 units a year, of which 85% will be destined for export.
“The fact that Ford Motor Company chose Hemaraj Eastern Seaboard Industrial Estate for their new plant expansion in Thailand reinforces the success of Hemaraj’s automotive cluster. It also reflects Ford’s confidence in the high quality land development, infrastructure, utilities and value added services Hemaraj has to offer. It is no secret Hemaraj started the “Detroit of the East”, alongside Ford’s investment in Auto Alliance Thailand, together some 16 years ago.” said Mr. Nardone.
To date, Hemaraj’s auto cluster at Eastern Seaboard Industrial Estate (Rayong) and Hemaraj Eastern Seaboard Industrial Estate has a total land area of about 17,000 rai or 6,700 acres. Now over 144 auto companies operate a total of automotive 210 plants in these estates. The Ford land sales will promisingly lead to more suppliers in the automotive sector.
“An integral part in our business outlook for 2010 is our commitment to the environment and local communities. Apart from innovative solutions to safeguard environment around Hemaraj’s industrial estates and communities, the Environmental Monitoring & Control Center (ESIE), or E:mc^2, lately developed by Hemaraj in collaboration with the Industrial Estate Authority of Thailand (IEAT), is playing a significant role in protecting the environment at our Eastern Seaboard Industrial Estate (Rayong),” added Vivat Jiratikarnsakul, Executive Vice President of Hemaraj.
For the welfare of local communities, Hemaraj continues its education and social welfare support to the local communities. This year the “Adopt-A-School - Train the Trainer Program” is taking a big step forward in providing training on holistic learning approach for about 100-200 teachers from schools within areas around Hemaraj’s Industrial Estate in Rayong and Chonburi. Other on-going programs include the annual school contribution program, scholarships, art camp for school students, sponsorship for Chonburi Football Club, free mobile medical units and latest initiated ‘skill trainings for housewives’.
Recapping Hemaraj growth projections for 2010 and beyond, an update of areas of business and projections.
Industrial Estates
Industrial Estate revenue will double in 2010 for Hemaraj from a depressed level in 2009 as global demand had contracted.
Forecast for 2010 is 1,000 rai industrial land sales with over 60% done at mid-year and prospects encouraging for future years.
Key areas of Hemaraj business are performing well in 2010 with minimal political impact and will continue while new capacity is coming on line for automotive exports and others.
We believe from 2011 petrochemical downstream investment will return as rules of EHIA approvals are in place and fairly attainable.
Utilities
Industrial Estate Utilities will increase 25 % in 2010 from flat levels in 2009.
Industrial Estate Utilities revenue will increase from baht 960 million in 2009 to baht 2 billion within 2016.
Power capital investment committed to date is over baht 5 billion.
Power dividend or profit to Hemaraj, are baht 1.2 billion to 1.5 billion per annum from 2012 to 2018 from current projects only.
Property
The Park Chidlom sales resumed in 2010 with strong sales prices and product acceptance.
Intent to launch additional property projects in both Bangkok and Eastern Seaboard in 2010.
Ready Built Factory rental space to increase 35 % in 2010 and sales strong from a low 2009 base. CAGR rate projection of 15% per annum.
Financial
Cash available for investment over baht 2.5 billion.
Surge in predictable profitability from 2012 from existing power projects dividends.
Strong balance sheet and experience in focused development area to support expansion.
“By maintaining strategic focus on broadening our revenue stream from industrial estates, utilities and property, we are ideally positioned as the Thai economy continues to recover in 2010 and into 2011 with less volatile market conditions. From 2010 through 2015 with strong financial resources at our disposal, we see significant opportunities, with right now being the ‘Time to Grow’ for Hemaraj.”
About Hemaraj
Hemaraj Land And Development Public Company Limited is Thailand’s leading developer of Industrial Estates, Utilities, and Property Customer Solutions. The company develops and manages six industrial estates covering a total area of 32,000 rai or 13,000 acres with automotive, petrochemical and other clusters comprising 417 distinct customers, 144 automotive customers, 621 factory contracts, and customer investment estimate of USD 18 billion generating more than 53,000 jobs.
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 Plc.
18/F UM Tower, 9 Ramkhamhaeng, Suanluang, Bangkok 10250, Thailand
Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7
Or contact
BrandComm Consultants Co., Ltd.
Ms. Pailin Buranamittranond /
Ms. Saovarin Thongthad
Tel. 02 642 9620 (12 lines) Fax. 02 642 9688