WHA maps out strategy for growth
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LOGISTICS and industrial-estate firm WHA Corporation will set aside a Bt6-billion investment budget in 2016 in a bid to boost its revenue to Bt10 billion.
The company also announced that its business strategy would focus on four categories – logistics, industrial estates, utilities and power, and digital.
It aims to be the market leader Asean in all four categories by 2019, said WHA’s new chief executive Jareeporn Jarukornsakul, who was appointed on October 29.
The company said the investment funds would come from cash flow and debenture issues this year and next worth a combined B7 billion.
“We will set aside the investment budget worth between Bt6 billion and Bt10 billion a year from 2015 to drive our revenue to Bt18.7 billion in 2019,” Jareeporn said.
“Half of total will be from logistics and industrial estates and the other half from our utilities and power and digital businesses.”
This year the company has targeted revenue of Bt5.5 billion, up 10 per cent on the Bt5.05 billion in 2014. It reported revenue of Bt2.57 billion and net profit of Bt221.53 million in the first half of the year.
Major stake in Hemaraj
The company’s investment budget this year is Bt6 billion, which it used on its logistics business and acquiring a major stake in Hemaraj Land and Development. WHA holds a 92.88-per=cent stake in Hemaraj. The company plans to tender an offer in February to increase its stake to 100 per cent and withdraw Hemaraj Land and Development as a listed company on the Stock Exchange of Thailand in March.
Jareeporn said WHA would double its revenue to Bt10 billion in 2016 when it consolidated Hemaraj’s revenue with its own.
She forecast WHA would grow at an average of 10 per cent a year from 2017 to 2019.
Of the targeted Bt18.7 billion in 2019 revenue, up to 20 per cent will come from overseas investments, she said. She added that the company planned to expand its investments in Asean countries between next year and 2019 by focusing on four business strategies.
She said that would start this year via the setting up of a joint-venture firm in Indonesia, WHA International Indonesia Co, with paid-up capital of US$2 million (Bt72 million).
The built-to-suit distribution centre and warehouse offers a combined 26,000 square metres.
Jareeporn said she saw expansion opportunities in all of WHA’s business categories in Myanmar, Cambodia, Laos and Vietnam from next year to 2019.
