Bangkok--17 Nov--BrandComm Consultants
Hemaraj Land And Development Public Company Limited announced its operating and financial results for Quarter 3, 2010 and year to date as summarized below.
Quarter 3’2010 and 9 months of 2010 Net Income
For Quarter 3’2010, Hemaraj reported Total Net Income of Baht 386.8 million, or an increase of 412% compared with the same period of last year. Earnings per-share was 0.040 Baht per share, representing an increase of 398% from the same period of last year.
For the first 9 months of 2010, Hemaraj reported Total Net Income of Baht 877.8 million, or an increase of 108% compared with the same period of 2009. The increase of Net Income for the first 9 months of 2010 was due to increases in industrial land sales, industrial estate utilities, the sale of ready built factories and residential condominiums as well as profits from associates (mainly unrealized currency gains) in comparison to the same period of the prior year. Earnings per-share was 0.090 Baht per share, representing an increase of 102% from the same period of last year.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Our results at Hemaraj for the first 9 months of 2010 have reflected the overall return of industrial investment in emerging markets and noteworthy Thailand. This is due to market growth, competitiveness, and consolidation opportunities. Reflecting this, our broad based revenue performance was good with Total Revenue of Baht 2,809.4 million, or an increase of 63%. Total Net income was Baht 877.8 million, an increase of 108% from the same period of last year though this reflects also unrealized currency gains.
Industrial estates sales, with weakness in the chemical sector for a variety of reasons including permits but a continued strong position and demand in the automotive sector reflected 721 rai (288 acres) mostly sold or rental in the first 9 months of 2010. This includes the new Ford Motor Company regional manufacturing plant of 468 rai (187 acres) at Hemaraj Eastern Seaboard Industrial Estate “Detroit of the East” automotive cluster earlier in the year. The health of the industrial pipeline is broad and strong partially reflecting a projected 65 % automotive production growth to a record 1,650,000 vehicles (#13 global), from depressed levels, for 2010 as well as multiple new plant and product initiatives underway. Although predictability of timing has some variation, we affirm our higher 2010 Industrial Estate Sales outlook of 1,000 rai (400 acres).
We are executing our business plan with significant capital commitments and opportunities while also enhancing a strong liquid financial position. This included the investment in power with our 35% shareholding in the Gheco-One IPP power project under construction as well as other recurring power and utility investments. We completed the share acquisition of the remaining 75% shares in SIL Industrial Land and Rayong Industrial Land in line with our agreement from the subsidiary of the Siam Cement Group.
On financial sources, we completed the last baht 638 million of our bond program in October 2010 in raising Baht 6 billion in corporate unsecured fixed interest rate bonds (some with stepped interest rates) with tenors of 3 to 9 years. This will provide flexibility and predictability of costs and funding for future projects. Still, our Net Debt to Equity remains well within target at 0.7/1.
We are utilizing this broadened revenue strategy in managing the risk profile of the company. Of equal importance is to select competing investment opportunities in order to optimize predictable long term returns to shareholders.”
Revenue and Results of Operations for 9 Months of 2010
For the first 9 months of 2010, Hemaraj’s Total Revenue was Baht 2,809.4 million compared with Baht 1,723.0 million for the same period of 2009, representing a 63% increase. Total Operating Revenue from core businesses was Baht 2,792.3 million, 67% increase from the same period of 2009. Industrial Estate Land Sales for the first 9 months of 2010 including Profit from Associates. Industrial Estate Land Sales were Baht 1,075.5 million, or a 91% increase. There is an additional Baht 815 million in deferred revenue from Industrial Estate Land Sales not recognized to date, based on the percent completion method from 3 industrial estate new phase developments and representing sales that will be recognized primarily over the next 3 to 18 month.
Total Utilities Revenue including industrial estate utilities, dividend from power/utilities associates, and other utilities & services fees increased to Baht 752.6 million in total, an increase of 2%. However the industrial estate utilities have increased 23% to Baht 694 million, from stronger water demand. Lower capacity payments from chemical business reflected a decrease in Other Utilities and Service Fees by 81%.
Total Rental Revenue including ready built factory rental, pipe-rack rental, commercial office rental and others decreased to Baht 349.4 million in total, a decrease of 11%. However the rental revenue from ready built factory, piperack, commercial office and other rental property increased 38% from stronger rental demand but the total reflected lower construction management fees by 67%.
Sale of Property including ready built factory sales and residential sales increased to Baht 614.9 million, a 2450% increase.
The Gross Profit was Baht 1,133.5 million, a 45% increase from the same period of last year. Earnings Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 823.5 million, an increase of 74%. The Gross Profit Margin and EBITDA Margin were at 42% and 29%, respectively.
Significant Activities for the first 9 months of 2010
? Industrial Estate Sales were net 721 rai with 28 contracts, 14 new customers and 14 project expansions from existing customers. Total industrial customers are now 421 distinct new customers with 630 contracts and 145 automotive customers.
On Sept. 8, 2010 Hemaraj paid the interim dividends from the operating results from 1 January 2010 to 30 June 2010 at Bath 0.025 per share.
On Oct. 1, 2010 Hemaraj has completed the acquisition of the remaining 75% shares in SIL Industrial Land Co., Ltd. from Cementhai Holding Co., Ltd., a subsidiary of The Siam Cement Public Company Limited. The value of the share acquisition is approximately Baht 763.7 million in addition to the assumption by Hemaraj of the shareholder loan to SIL of Baht 380 million.
Balance Sheet Highlights at 30th September 2010
At 30th September 2010 Hemaraj reported Total Assets of Baht 18,215 million, Total Liabilities of Baht 9,393 million and Total Shareholders Equity of Baht 8,822 million. The Net Debt to Equity ratio remained low at 0.70 to 1. Cash on Hand was Baht 3,248 million.
For further information concerning Hemaraj Land And Development Plc., please visit our website at www.hemaraj.com or www.theparkresidence.co.th or contact by email at
[email protected]
Mr. Paopitaya Smutrakalin, Director, Investor Relations
Hemaraj Land And Development Plc.
18/F UM Tower, 9 Ramkhamhaeng RoadSuanluang, Bangkok 10250, Thailand
Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7
For more information, please contact:
BrandComm Consultants Co., Ltd.
Ms. Saovarin Thongthad /
Ms. Bussakorn Nunthavichitra
Tel. 02 642 9620 (12 lines) Fax. 02 642 9688
www.hemaraj.com