WHA cuts profit forecast
WHA Corporation has cut its profit forecast this year to the same level as the previous year of Bt13.3 billion due to the Covid-19 fallout.
The company cut its land sales this year to 900 rai – 600 rai in Thailand and 300 in Vietnam – from 1,400 rai (1,200 rai in Thailand and 200 rai in Vietnam).
Chairman and chief executive officer Jareeporn Jarukornsakul said the industrial estate business in the third quarter is still suffering the impacts of the Covid-19 pandemic, with foreign customers unable to sign land contracts due to lockdowns in their countries.
“However, we expect land sales to recover in the fourth quarter if the government allows foreign investors to enter the country,” she said.
Jareeporn also said the company’s logistics business continues to perform well as domestic customers were interested in renting warehouses.
“Customers are waiting to sign contracts to rent more than 40,000 square metres of built-to-suit warehouses, which are expected to be completed by the third quarter this year,” she said.
“Therefore, we are confident that our warehouse rentals will hit the target of 250,000 square metres, as rentals in the first quarter were 100,000 square metres.”
Jareeporn said WHA’s public utility business is doing well, as the drought problems have largely been resolved, while demand for water has increased after the government eased its lockdown measures, enabling industrial operators to resume business.
“Also, the sale of electricity is likely to increase,” Jareeporn said.
She said the company plans to sell 50,000 square metres of land for rent worth around Bt1billion to Hemraj Leasehold Real Estate Investment Trust and 130,000 square metres of warehouses for rent worth around Bt3 billion to WHA Premium Growth Freehold and Leasehold Real Estate Investment Trust in the fourth quarter, expecting to receive approximately Bt4 billion.
Meanwhile, an analyst at Bualuang Securities advised investors to buy WHA shares, because the market already recognises the company’s move to cut land sales.
“WHA gained positive sentiment, especially among Japanese customers, from strong demand for moving its production bases to Thailand,” the analyst added.
