公司新闻
HEMARAJ Q2 Press Release - FIRST HALF 2014 REVENUE OF BAHT 4,285.9 MILLION DECREASED 2%
13/08/2014
- FIRST HALF 2014 REVENUE OF BAHT 4,285.9 MILLION DECREASED 2%
- RECORD NET INCOME OF BAHT 2,059.4 MILLION UP 41%
- (NORMALIZED NET INCOME (NNI) OF BAHT 1,996.7 MILLION UP 31%)
Hemaraj Land And Development Public Company Limited announced its operating and financial results for the first half of 2014 as summarized below.
Net Income
For Quarter 2’2014, Hemaraj reported Total Net Income of Baht 1,017.3 million, or increase of 82% compared with the same period of the previous year. Earnings per-share was 0.105 Baht per share, representing an increase of 82%. Normalized Net Income (NNI) for Quarter 2’ 2014 was Baht 1,014 million (excluding unrealized foreign exchange gain of Baht 3.3 million), or an increase of 21%.
For the first half of 2014, Hemaraj reported Total Net Income of Baht 2,059.4 million, and earnings per-share was Baht 0.212 per share, or an increase of 41% compared with the same period of 2013.
For the first half of 2014, Hemaraj recognised share of profit from power/utility associates (excluding foreign exchange unrealized translation gain/loss) at Baht 913.4 million, or an increase of 208% from the same period of 2013 and received share of profit from Hemaraj Industrial Property and Leasehold Fund (HPF) at Baht 39 million. There was an unrealized foreign exchange translation gain from Power Investment (Gheco-One and GJP NLL) of Baht 62.7 million compared to an unrealized foreign exchange translation loss of Baht 58.6 million in the same period of 2013. Normalized Net Income (NNI) for the first half of 2014 was Baht 1,996.7 million, an increase of 31%.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Hemaraj Land And Development Public Company Limited finished the first half of 2014 with a solid performance with flat top line revenue but a record bottom line profit. Operating Revenue of Baht 4,294.3 million decreased 2%. Normalized Net Income of Baht 1,996.7 million increased 31%.
This was despite the previous political disruptions, weak investment sentiment, and delays in the Board of Investment approvals. For the first half of 2014, operating results were a reasonable Industrial Estate Sales of 297 rai (118 acres or 48 hectares), with 20 contracts, 13 new customers and 7 project expansions from existing customers, reflecting these aforementioned constraints.
Foreign Direct Investment approved projects by the Board of Investment (BOI) were Baht 185.4 billion, a decrease of 59% compared to the same period of 2013. However, there is a backlog of BOI projects waiting for approval of Baht 484 billion, being reduced by the new BOI board.
Our operating revenue comparison with the prior year includes the Industrial Estate Land sales revenue, which has benefited by high previous sales and backlog in 2012 and 2013, being down only 6%. Rental Property was down 7% reflecting the sale of factories to the Hemaraj Property Fund at the end of 2013 and lower manufacturing capacity demand. Revenue from utilities (non power) increased by 12% from the same period of 2013 reflecting pricing and recovery growth.
For our Power business, Gheco-One, a 660 MW IPP (Independent Power Producer) coal project with Hemaraj 35% shareholding and Glow Energy 65% (GDF Suez group), after startup teething problems finally operated at 99% technical availability during the first half of 2014. Profit from power reflecting this high availability, a high dispatch rate, an insurance gain of baht 35 million, and the hot season favorable tariff increased to baht 913 million for the 1st half of 2014 from baht 297 million the prior year.
In addition, Hemaraj is planning to invest in another seven (7) 126 MW SPP (Small Power Producer) projects with a 25.01% equity options with financial close expected at the end of 2014.
The NCPO government has taken steps to restore peace, security, optimism and growth in the Thailand economy. These include paying the pledged rice farmers, budget disbursements, resumption of infrastructure plans, tackling corruption and steps to form a new elected government. Exports, including automotive up 10%, are growing. Domestic demand and tourism are in the early stages of recovery. Still, automotive OEM production is down 29% and domestic automotive OEM demand down 40% the first half of 2014. This has impacted ready built factory and warehouse take-up and industrial estate expansion from our existing customer base. For new investment and continued new product investment, we are seeing high activity levels, broad country representation, and approaching a more normal industrial estate demand run rates.
Reflecting this economic constraint, we are revising down our 2014 industrial estate sales forecast to 1,200 rai (480 acres, 192 hectares) from 1,600 rai (640 acres, 256 hectares) with a projected 35 new industrial estate customers and 50 industrial estate contracts. Our Ready Built Factory and Logistics Park warehouse forecast are similarly reduced to 40,000 and 20,000 net square meters of new take-up.
Industrial investment in Thailand and our broad business strategy remain attractive long term. Thailand continues to be a preferred location for manufacturing and growth due to reasonable costs, good infrastructure, and expanded market access. The resumption of a more normal business will increase our backlog and broad revenue potential.
Hemaraj investments are in balanced growth core business areas: - industrial estates, utilities, power, ready-built factories, logistics parks, and properties. Our 1st Half 2014 results demonstrate the resilience of Hemaraj revenue and predictable earnings as well as the leverage from power investments. Our strategy remains focused on providing superior long term returns to shareholders.”
Revenue and Results of Operations for 6 months of 2014
For the first half of 2014, Hemaraj Total Revenue was Baht 4,285.9 million compared with Baht 4,365.6 million for the same period of 2013, representing a 2% decrease. Total Operating Revenue from core business was Baht 4,294.3 million, a 2% decrease from the same period of 2013. Industrial Estate Land Sales for the first 6 months of 2014 were Baht 2,758.9 million, or a 6% decrease, with a gross margin of 52%. There is an additional Baht 1,052 million in deferred revenue, with recognition based on the title transfer date, from Industrial Estate land sales not recognized to date representing sales that will be recognized primarily over the next 3 to 18 months.
Industrial estate utilities increased to Baht 870.1 million, or an increase of 12%, reflecting the higher utility volumes and rates. Total Utilities which includes industrial estate utilities, dividend from power utilities associates, and other utilities and services fees increased to Baht 896.4 million, an increase of 12%.
Total Rental Property and Services Revenue including ready built factory rental, logistics parks rental, pipe-rack rental, and commercial office rental decreased to Baht 427.5 million, a decrease of 7% mainly from the decrease in Ready Built Factory Rental of Baht 76.9 million, a decrease of 26%. However, Logistics Parks Rental improved Baht 35.1 million, an increase of 110% and Commercial Office Rental also improved Baht 9.3 million, an increase of 25% due to higher occupancy rate. Sale of Residential increased to Baht 211.5 million, an increase of 17%.
The Gross Profit was Baht 2,088.7 million. Earnings Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 1,848.6 million, a 0.3% decrease from the same period of last year. The Gross Profit Margin and EBITDA Margin improved to 49% and 43%, respectively.
Significant Activities for 6 months of 2014
- Industrial Estate Land Sales were 297 rai with 20 contracts, 13 new customers and 7 project expansions from existing customers. Hemaraj now has 628 distinct new customers with 953 contracts including 218 automotive customers with 334 automotive contracts.
- Ready Built Factories for Rent increased net 1,161 square meters or 1% from 2013 cumulative balance, totaling 298,529 square meters under rent. This comprises of 179,392 square meters at Hemaraj companies and 119,137 square meters rented under the 2013 year-end Hemaraj Property Fund (HPF).
- Hemaraj Logistics Parks for Rent total 72,145 square meters under rent.
- New Baht Bond in Q2’2014 Baht 2.5 billion, 10 years with an interest of 5.75% fixed Balance Sheet Highlights for the 6-month period ended 30th June 2014
At 30th June 2014, Hemaraj reported Total Assets of Baht 33,645 million, Total Liabilities of Baht 18,494 million and Total Shareholders’ Equity of Baht 15,151 million. The Net Debt to Equity ratio was 0.99 to 1 with Cash and Deposits on Hand of Baht 3,433 million.
- RECORD NET INCOME OF BAHT 2,059.4 MILLION UP 41%
- (NORMALIZED NET INCOME (NNI) OF BAHT 1,996.7 MILLION UP 31%)
Hemaraj Land And Development Public Company Limited announced its operating and financial results for the first half of 2014 as summarized below.
Net Income
For Quarter 2’2014, Hemaraj reported Total Net Income of Baht 1,017.3 million, or increase of 82% compared with the same period of the previous year. Earnings per-share was 0.105 Baht per share, representing an increase of 82%. Normalized Net Income (NNI) for Quarter 2’ 2014 was Baht 1,014 million (excluding unrealized foreign exchange gain of Baht 3.3 million), or an increase of 21%.
For the first half of 2014, Hemaraj reported Total Net Income of Baht 2,059.4 million, and earnings per-share was Baht 0.212 per share, or an increase of 41% compared with the same period of 2013.
For the first half of 2014, Hemaraj recognised share of profit from power/utility associates (excluding foreign exchange unrealized translation gain/loss) at Baht 913.4 million, or an increase of 208% from the same period of 2013 and received share of profit from Hemaraj Industrial Property and Leasehold Fund (HPF) at Baht 39 million. There was an unrealized foreign exchange translation gain from Power Investment (Gheco-One and GJP NLL) of Baht 62.7 million compared to an unrealized foreign exchange translation loss of Baht 58.6 million in the same period of 2013. Normalized Net Income (NNI) for the first half of 2014 was Baht 1,996.7 million, an increase of 31%.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Hemaraj Land And Development Public Company Limited finished the first half of 2014 with a solid performance with flat top line revenue but a record bottom line profit. Operating Revenue of Baht 4,294.3 million decreased 2%. Normalized Net Income of Baht 1,996.7 million increased 31%.
This was despite the previous political disruptions, weak investment sentiment, and delays in the Board of Investment approvals. For the first half of 2014, operating results were a reasonable Industrial Estate Sales of 297 rai (118 acres or 48 hectares), with 20 contracts, 13 new customers and 7 project expansions from existing customers, reflecting these aforementioned constraints.
Foreign Direct Investment approved projects by the Board of Investment (BOI) were Baht 185.4 billion, a decrease of 59% compared to the same period of 2013. However, there is a backlog of BOI projects waiting for approval of Baht 484 billion, being reduced by the new BOI board.
Our operating revenue comparison with the prior year includes the Industrial Estate Land sales revenue, which has benefited by high previous sales and backlog in 2012 and 2013, being down only 6%. Rental Property was down 7% reflecting the sale of factories to the Hemaraj Property Fund at the end of 2013 and lower manufacturing capacity demand. Revenue from utilities (non power) increased by 12% from the same period of 2013 reflecting pricing and recovery growth.
For our Power business, Gheco-One, a 660 MW IPP (Independent Power Producer) coal project with Hemaraj 35% shareholding and Glow Energy 65% (GDF Suez group), after startup teething problems finally operated at 99% technical availability during the first half of 2014. Profit from power reflecting this high availability, a high dispatch rate, an insurance gain of baht 35 million, and the hot season favorable tariff increased to baht 913 million for the 1st half of 2014 from baht 297 million the prior year.
In addition, Hemaraj is planning to invest in another seven (7) 126 MW SPP (Small Power Producer) projects with a 25.01% equity options with financial close expected at the end of 2014.
The NCPO government has taken steps to restore peace, security, optimism and growth in the Thailand economy. These include paying the pledged rice farmers, budget disbursements, resumption of infrastructure plans, tackling corruption and steps to form a new elected government. Exports, including automotive up 10%, are growing. Domestic demand and tourism are in the early stages of recovery. Still, automotive OEM production is down 29% and domestic automotive OEM demand down 40% the first half of 2014. This has impacted ready built factory and warehouse take-up and industrial estate expansion from our existing customer base. For new investment and continued new product investment, we are seeing high activity levels, broad country representation, and approaching a more normal industrial estate demand run rates.
Reflecting this economic constraint, we are revising down our 2014 industrial estate sales forecast to 1,200 rai (480 acres, 192 hectares) from 1,600 rai (640 acres, 256 hectares) with a projected 35 new industrial estate customers and 50 industrial estate contracts. Our Ready Built Factory and Logistics Park warehouse forecast are similarly reduced to 40,000 and 20,000 net square meters of new take-up.
Industrial investment in Thailand and our broad business strategy remain attractive long term. Thailand continues to be a preferred location for manufacturing and growth due to reasonable costs, good infrastructure, and expanded market access. The resumption of a more normal business will increase our backlog and broad revenue potential.
Hemaraj investments are in balanced growth core business areas: - industrial estates, utilities, power, ready-built factories, logistics parks, and properties. Our 1st Half 2014 results demonstrate the resilience of Hemaraj revenue and predictable earnings as well as the leverage from power investments. Our strategy remains focused on providing superior long term returns to shareholders.”
Revenue and Results of Operations for 6 months of 2014
For the first half of 2014, Hemaraj Total Revenue was Baht 4,285.9 million compared with Baht 4,365.6 million for the same period of 2013, representing a 2% decrease. Total Operating Revenue from core business was Baht 4,294.3 million, a 2% decrease from the same period of 2013. Industrial Estate Land Sales for the first 6 months of 2014 were Baht 2,758.9 million, or a 6% decrease, with a gross margin of 52%. There is an additional Baht 1,052 million in deferred revenue, with recognition based on the title transfer date, from Industrial Estate land sales not recognized to date representing sales that will be recognized primarily over the next 3 to 18 months.
Industrial estate utilities increased to Baht 870.1 million, or an increase of 12%, reflecting the higher utility volumes and rates. Total Utilities which includes industrial estate utilities, dividend from power utilities associates, and other utilities and services fees increased to Baht 896.4 million, an increase of 12%.
Total Rental Property and Services Revenue including ready built factory rental, logistics parks rental, pipe-rack rental, and commercial office rental decreased to Baht 427.5 million, a decrease of 7% mainly from the decrease in Ready Built Factory Rental of Baht 76.9 million, a decrease of 26%. However, Logistics Parks Rental improved Baht 35.1 million, an increase of 110% and Commercial Office Rental also improved Baht 9.3 million, an increase of 25% due to higher occupancy rate. Sale of Residential increased to Baht 211.5 million, an increase of 17%.
The Gross Profit was Baht 2,088.7 million. Earnings Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 1,848.6 million, a 0.3% decrease from the same period of last year. The Gross Profit Margin and EBITDA Margin improved to 49% and 43%, respectively.
Significant Activities for 6 months of 2014
- Industrial Estate Land Sales were 297 rai with 20 contracts, 13 new customers and 7 project expansions from existing customers. Hemaraj now has 628 distinct new customers with 953 contracts including 218 automotive customers with 334 automotive contracts.
- Ready Built Factories for Rent increased net 1,161 square meters or 1% from 2013 cumulative balance, totaling 298,529 square meters under rent. This comprises of 179,392 square meters at Hemaraj companies and 119,137 square meters rented under the 2013 year-end Hemaraj Property Fund (HPF).
- Hemaraj Logistics Parks for Rent total 72,145 square meters under rent.
- New Baht Bond in Q2’2014 Baht 2.5 billion, 10 years with an interest of 5.75% fixed Balance Sheet Highlights for the 6-month period ended 30th June 2014
At 30th June 2014, Hemaraj reported Total Assets of Baht 33,645 million, Total Liabilities of Baht 18,494 million and Total Shareholders’ Equity of Baht 15,151 million. The Net Debt to Equity ratio was 0.99 to 1 with Cash and Deposits on Hand of Baht 3,433 million.