Hemaraj sees revenue up by 123 per cent in first half

The boost in revenue helped the industrial estate developer return to the black, posting a net profit of Bt954.5 million versus a net loss of Bt1.85 million in the first half of last year.
David Nardone, president and CEO, said last week that demand for industrial sites surged, thanks to continued strong investment from the automobile and parts industry, along with broader participation from the logistics, electronics and consumer products industries.
Auto production will recover to 2.2 million vehicles this year and ramp up to 2.5 million-3.0 million vehicles over two to five years, he said.
Japan continues to be Hemaraj’s lead customer, accounting for over half of investment in the last 10 quarters. The company led the industrial estate industry with its land sales for the first six months of 2012 reaching 1,447 rai (231.5 hectares), a record for the company. Out of 67 land sales contracts, 44 were with new customers and 23 with existing customers planning project expansions.

SALES FORECAST RAISED AGAIN
Reflecting these operating results, the company is raising for the third time its 2012 industrial estate sales forecast to 2,300 rai from the original budget of 1,500 rai.
The company’s ready-built factories for rent grew by 31,038 square meters or 20 per cent from last year, with 31,565 more square metres pre-leased, in line with both the company’s aggressive construction plan and market expectations.
Hemaraj has launched four logistics parks inside or near three of its Eastern Seaboard industrial estates over the last 12 months.
In power development, the commercial operation date for the Gheco-One power plant project was July 26, later than the company’s expectations. The 660-megawatt plant is an independent power producer.
The investment policy of Hemaraj continues in its core businesses – industrial estates, utilities, power and property. The overall operating and revenue performance reflects the increasingly broadened revenue growth opportunities that the firm is pursuing.
“We are cognisant of challenging global conditions and a potential investment slowdown for export markets. However, we are less exposed to organic growth only, due to the relocation and rationalisation of capital to Thailand due to cost currency and particularly access to automotive and other markets.
“The improving risk profile of the company and the predictability of earnings and dividends are at an opportune time. Our strategic vision remains to provide superior long-term returns to shareholders,” he added.