Company News
HEMARAJ ANNOUNCES 2010 NET PROFIT UP 111% TO BAHT 1,216 MILLION
01/03/2011
HEMARAJ ANNOUNCES 2010 NET PROFIT UP 111% TO BAHT 1,216 MILLION
Hemaraj Land And Development Public Company Limited announced its operating and financial results for 2010 as summarized below.
2010 Net Income
For the Year 2010, Hemaraj reported Total Net Income of Baht 1,215.9 million, or an increase of 111% compared with the same period of 2009. The increase of Net Income for the Year 2010 was due to increases in industrial land sales, industrial estate utilities, the rental and sale of ready built factories and residential condominiums as well as profits from associates (significantly unrealized currency translation gain of Baht 394 million related to power) in comparison to the same period of the prior year. Earnings per-share was 0.125 Baht per share, representing an increase of 105% from the same period of 2009.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Hemaraj results for 2010 have reflected the overall return of industrial investment in emerging markets and significantly Thailand. This was due to access to growing markets, the need for cost and currency competitiveness, as well as for consolidation opportunities. Reflecting this, our 2010 broad based revenue performance was encouraging with Total Revenue of Baht 4,020.2 million, or an increase of 81%. Total Net income was Baht 1,215.9 million, an increase of 111% from the same period of 2009, reflecting also unrealized currency gains of Baht 394 million.
Industrial estates sales, with weakness in the chemical sector and continued strong demand in the automotive sector reflected 930 rai (372 acres) sold in 2010. This includes the new Ford Motor Company regional manufacturing plant of 468 rai (187 acres) at Hemaraj Eastern Seaboard Industrial Estate “Detroit of the East” automotive cluster earlier in 2010. We believe the industrial opportunities partially reflect the 65 % automotive production growth to a record 1,645,000 vehicles for 2010 (#13 global for 2010), from depressed levels. There are new automotive plant and product initiatives underway.
Our strategic business plan entails significant capital commitments and opportunities while broadening our strong liquid financial position. This includes the investment in our 35% shareholding in the Gheco-One IPP power project under construction as well as recurring power, factory, and utility investments. In 2010, we completed the share acquisition of the remaining 75% shares in SIL Industrial Land and Rayong Industrial Land from the subsidiary of the Siam Cement Group.
On financial sources, in 2010 we raised Baht 6 billion in corporate unsecured fixed interest rate bonds (some with stepped interest rates) with tenors of 3 to 9 years. This enhances the sources breadth and predictability of costs and funding for our business while interest rates are low.
The Hemaraj broadened revenue strategy, which we have been pursuing for more than a decade, is reducing the risk profile of the company. We believe this strategy, as well as selecting competing investment opportunities, will increasingly be reflected by superior long term returns to shareholders.”
Revenue and Results of Operations for the Year 2010
For the Year 2010, Hemaraj’s Total Revenue was Baht 4,020.2 million compared with Baht 2,222.7 million for the same period of 2009, representing an 81% increase. Total Operating Revenue from core businesses was Baht 4,219.7 million, an 89% increase from the same period of 2009. Industrial Estate Land Sales for Year 2010 including Profit from Associates. Industrial Estate Land Sales were Baht 1,501.0 million, or a 113% increase. There is an additional Baht 788 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 though the Thailand accounting method is changing for revenue recognition in 2011.
Total Utilities Revenue including industrial estate utilities, dividend from power/utilities associates, and other utilities & services fees increased to Baht 1,472.4 million in total, an increase of 43%. The industrial estate utilities have increased 26% to Baht 967.7 million, from stronger water demand and the consolidation of Hemaraj Saraburi Industrial Land and Hemaraj Rayong Industrial Land in Quarter 4, 2010. Lower capacity payments from chemical business reflected a decrease in Other Utilities and Service Fees by 79%.
Total Rental Revenue including ready built factory rental, pipe-rack rental, commercial office rental and others decreased to Baht 480.4 million in total, a decrease of 7% which reflected by lower construction management fees by 64%. However, the rental revenue from ready built factory, piperack, commercial office and other rental property increased 13% from stronger rental demand.
Sale of Property including ready built factory sales and residential sales increased to Baht 765.9 million, a 5312% increase.
The Gross Profit was Baht 1,559.0 million, a 57% increase from the same period of last year. Earnings Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 1,039.9 million, an increase of 84%. The Gross Profit Margin and EBITDA Margin were at 42% and 28%, respectively.
Significant Activities for the Year of 2010
• Industrial Estate Sales were net 930 rai with 41 contracts, 19 new customers and 22 project expansions from existing customers. Total industrial customers are now 426 distinct new customers with 643 contracts including 148 automotive customers with 223 automotive contracts.
• On Oct. 1, 2010 Hemaraj completed the acquisition of the remaining 75% shares in SIL Industrial Land Co., Ltd. from Cementhai Holding Co., Ltd., a subsidiary of The Siam Cement Public Company Limited. The value of the share acquisition is approximately Baht 763.7 million in addition to the assumption by Hemaraj of the shareholder loan to SIL of Baht 380 million.
• The Board recommended a year-end dividend of Baht 0.030 per share, to be considered at the Shareholders Meeting or for 2010 Baht 0.055 in total per share, of which Baht 0.025 per share was paid on Sept. 8, 2010 from the operating results from 1 January 2010 to 30 June 2010.
• On August 6, 2010, TRIS Rating affirmed the company rating at “A-” and has revised the rating outlook to “stable” from “negative”
• Hemaraj received the ‘Excellent’ five logos corporate governance recognition level in the Corporate Governance Report of Thai listed Companies in 2010 (CGR).
Balance Sheet Highlights at 31st December 2010
At 31st December 2010 Hemaraj reported Total Assets of Baht 18,715 million, Total Liabilities of Baht 9,577 million and Total Shareholders Equity of Baht 9,138 million. The Net Debt to Equity ratio remained low at 0.66 to 1. Cash on Hand including Cash Deposit was Baht 4,283 million.
For further information concerning Hemaraj Land And Development Public Company Limited, please visit our website at www.hemaraj.com or www.theparkresidence.co.th or contact by email at invest@hemaraj.com
Mr. Paopitaya Smutrakalin, Director, Investor Relations
Hemaraj Land And Development Public Company Limited
18/F UM Tower, 9 Ramkhamhaeng RoadSuanluang, Bangkok 10250, Thailand
Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7
Hemaraj Land And Development Public Company Limited announced its operating and financial results for 2010 as summarized below.
2010 Net Income
For the Year 2010, Hemaraj reported Total Net Income of Baht 1,215.9 million, or an increase of 111% compared with the same period of 2009. The increase of Net Income for the Year 2010 was due to increases in industrial land sales, industrial estate utilities, the rental and sale of ready built factories and residential condominiums as well as profits from associates (significantly unrealized currency translation gain of Baht 394 million related to power) in comparison to the same period of the prior year. Earnings per-share was 0.125 Baht per share, representing an increase of 105% from the same period of 2009.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Hemaraj results for 2010 have reflected the overall return of industrial investment in emerging markets and significantly Thailand. This was due to access to growing markets, the need for cost and currency competitiveness, as well as for consolidation opportunities. Reflecting this, our 2010 broad based revenue performance was encouraging with Total Revenue of Baht 4,020.2 million, or an increase of 81%. Total Net income was Baht 1,215.9 million, an increase of 111% from the same period of 2009, reflecting also unrealized currency gains of Baht 394 million.
Industrial estates sales, with weakness in the chemical sector and continued strong demand in the automotive sector reflected 930 rai (372 acres) sold in 2010. This includes the new Ford Motor Company regional manufacturing plant of 468 rai (187 acres) at Hemaraj Eastern Seaboard Industrial Estate “Detroit of the East” automotive cluster earlier in 2010. We believe the industrial opportunities partially reflect the 65 % automotive production growth to a record 1,645,000 vehicles for 2010 (#13 global for 2010), from depressed levels. There are new automotive plant and product initiatives underway.
Our strategic business plan entails significant capital commitments and opportunities while broadening our strong liquid financial position. This includes the investment in our 35% shareholding in the Gheco-One IPP power project under construction as well as recurring power, factory, and utility investments. In 2010, we completed the share acquisition of the remaining 75% shares in SIL Industrial Land and Rayong Industrial Land from the subsidiary of the Siam Cement Group.
On financial sources, in 2010 we raised Baht 6 billion in corporate unsecured fixed interest rate bonds (some with stepped interest rates) with tenors of 3 to 9 years. This enhances the sources breadth and predictability of costs and funding for our business while interest rates are low.
The Hemaraj broadened revenue strategy, which we have been pursuing for more than a decade, is reducing the risk profile of the company. We believe this strategy, as well as selecting competing investment opportunities, will increasingly be reflected by superior long term returns to shareholders.”
Revenue and Results of Operations for the Year 2010
For the Year 2010, Hemaraj’s Total Revenue was Baht 4,020.2 million compared with Baht 2,222.7 million for the same period of 2009, representing an 81% increase. Total Operating Revenue from core businesses was Baht 4,219.7 million, an 89% increase from the same period of 2009. Industrial Estate Land Sales for Year 2010 including Profit from Associates. Industrial Estate Land Sales were Baht 1,501.0 million, or a 113% increase. There is an additional Baht 788 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 though the Thailand accounting method is changing for revenue recognition in 2011.
Total Utilities Revenue including industrial estate utilities, dividend from power/utilities associates, and other utilities & services fees increased to Baht 1,472.4 million in total, an increase of 43%. The industrial estate utilities have increased 26% to Baht 967.7 million, from stronger water demand and the consolidation of Hemaraj Saraburi Industrial Land and Hemaraj Rayong Industrial Land in Quarter 4, 2010. Lower capacity payments from chemical business reflected a decrease in Other Utilities and Service Fees by 79%.
Total Rental Revenue including ready built factory rental, pipe-rack rental, commercial office rental and others decreased to Baht 480.4 million in total, a decrease of 7% which reflected by lower construction management fees by 64%. However, the rental revenue from ready built factory, piperack, commercial office and other rental property increased 13% from stronger rental demand.
Sale of Property including ready built factory sales and residential sales increased to Baht 765.9 million, a 5312% increase.
The Gross Profit was Baht 1,559.0 million, a 57% increase from the same period of last year. Earnings Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 1,039.9 million, an increase of 84%. The Gross Profit Margin and EBITDA Margin were at 42% and 28%, respectively.
Significant Activities for the Year of 2010
• Industrial Estate Sales were net 930 rai with 41 contracts, 19 new customers and 22 project expansions from existing customers. Total industrial customers are now 426 distinct new customers with 643 contracts including 148 automotive customers with 223 automotive contracts.
• On Oct. 1, 2010 Hemaraj completed the acquisition of the remaining 75% shares in SIL Industrial Land Co., Ltd. from Cementhai Holding Co., Ltd., a subsidiary of The Siam Cement Public Company Limited. The value of the share acquisition is approximately Baht 763.7 million in addition to the assumption by Hemaraj of the shareholder loan to SIL of Baht 380 million.
• The Board recommended a year-end dividend of Baht 0.030 per share, to be considered at the Shareholders Meeting or for 2010 Baht 0.055 in total per share, of which Baht 0.025 per share was paid on Sept. 8, 2010 from the operating results from 1 January 2010 to 30 June 2010.
• On August 6, 2010, TRIS Rating affirmed the company rating at “A-” and has revised the rating outlook to “stable” from “negative”
• Hemaraj received the ‘Excellent’ five logos corporate governance recognition level in the Corporate Governance Report of Thai listed Companies in 2010 (CGR).
Balance Sheet Highlights at 31st December 2010
At 31st December 2010 Hemaraj reported Total Assets of Baht 18,715 million, Total Liabilities of Baht 9,577 million and Total Shareholders Equity of Baht 9,138 million. The Net Debt to Equity ratio remained low at 0.66 to 1. Cash on Hand including Cash Deposit was Baht 4,283 million.
For further information concerning Hemaraj Land And Development Public Company Limited, please visit our website at www.hemaraj.com or www.theparkresidence.co.th or contact by email at invest@hemaraj.com
Mr. Paopitaya Smutrakalin, Director, Investor Relations
Hemaraj Land And Development Public Company Limited
18/F UM Tower, 9 Ramkhamhaeng RoadSuanluang, Bangkok 10250, Thailand
Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7