公司新闻

Double Growth Forseen in 2006 for Hemaraj

02/03/2006

Bangkok, 2 March 2006: Hemaraj Land And Development Plc., Thailand’s leading developer of industrial estates, has recorded a 20% increase in Operating Profit, outperforming industry averages in many key areas and providing a solid base for double growth in 2006.

David Nardone, President and CEO of Hemaraj announced net income of Baht 583.7 million from operating business in 2005, an increase of 20% from 2004 and total net income of Baht 637 million. Operating revenue increased by 21% to 2,930.4 million baht with total revenues at 3,009.0 million baht. The Gross Profit margin of the year was at 41% while the EBITDA Margin was 29%, both levels exceeding industry margins.

“We are benefiting from the growth in automobile and petrochemical industries. Broadening the property development strategy at Hemaraj has enabled us to increase revenue predictability, profitability, and maintain ongoing strength in the balance sheet. The bottom line contributions from The Park Chidlom are improving the profitability and leverage of Hemaraj. Our broadened revenue growth strategy continues to be on target, with revenue for 2006 doubling over Baht 6,000 million is on track”, said David.

In 2005, Industrial Land Sales were 716 rai with 51 contracts, being 23 new customers as well as 28 projects expansion from existing customers bringing total industrial customers to 312 with 103 automotive customers. SME Factory for Rent and Sale area increased by 22%, or 24,000 sq.m. In 2005, a total of 20 SME Factory contracts were signed: 13 rented and 7 sold. Industrial estate utilities consumption quantities increased modestly. Year-end sales of The Park Chidlom were 158 units or 72% sold with total contract value more than Baht 4 billion.

Business expansion activities in 2005 include the joint venture in S I L Industrial Land (Saraburi) with The Siam Cement Group, and the joint venture in “Glow Hemaraj Energy” with “Glow Energy (Suez)” to develop and enter the next round of IPP bidding.

For the year 2006, Hemaraj is developing 1,700 rai at Hemaraj Eastern Seaboard Industrial Estate Phase 1, expanding Hemaraj Eastern Industrial Estate further, opening a Free Zone in SIL Industrial Land (Saraburi) for electronics and others, transferring The Park Chidlom. We also plan to pursue Utility and Power opportunities.

He also stresses that revenue growth will be from all Hemaraj business lines. Industrial land sales for 2006 is targeted at 1,000 rai, or a 40% increase from 2005 as indicated by the continual flow of Foreign Direct Investment to Thailand, especially in automotive, petrochemical and electronics industries. SME Factories rental and sold area are projected to grow 30% year on year basis. Industrial estates utilities projected to grow 25% as many chemical customers start their operation this year.

The year 2006 will see the completion and transfer (on schedule) of The Park Chidlom. As of February 2006, 78% of total units were sold and the cumulative contract value reached over Baht 4.35 billion.

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About Hemaraj

Hemaraj Land And Development Plc. is Thailand’s leading developer of industrial estates, utilities, property, and infrastructure customer. Founded in 1988 and listed on the Stock Exchange of Thailand in 1992, today Hemaraj has assets of approximately Baht 9,000 million (USD 225 million) with a global customer base at 6 industrial estates/zones namely Hemaraj Chonburi Industrial Estate, Hemaraj Eastern Industrial Estate (Map Ta Phut), Eastern Seaboard Industrial Estate (Rayong), Hemaraj Eastern Seaboard Industrial Estate, Rayong Industrial Land and S I L Industrial Land (Saraburi). These represent 32,000 rai under development, industrial clusters for petrochemical automotive and other industries, with approximately 320 customers including over 100 automotive customers, direct employment for 50,000 people and a customer investment estimated at USD 10.5 billion.