Bangkok--16 Aug--PRDD
TICON Group announced its 1st half 2016 performance on track with target. Net profit of 248 million Baht is an increase of 931% from the same period of previous year. The company confirms its business continued to grow steadily as plan. Preparing to sell assets worth over 1,400 million Baht to TREIT at the end of year.
Mr. Virapan Pulges, Managing Director of TICON Industrial Connection Public Company Limited, the leading developer of factories and warehouses for lease in Thailand, reported the first half performance for the period ended 30 June 2016. Revenue totaled 756 million Baht and net profit came to 248 million Baht or an increase of 931% compared with the same period of last year. The majority of revenue came from factories and warehouses rental totaling 515 million Baht, gain on sales of investment units in property funds of 89 million Baht, Moreover, the sales of investment in property funds resulting the company realized additional gains on sale of properties to the property funds in total of 259 million Bath.
"The first half year performance of 2016 continued to grow steadily as targeted. For the figures of factories and warehouses expansion at the end of July 2016, the company has continually developed factories and warehouses space for serving foreign direct investments. There had been an increase of 42 new customers in both factories and warehouses, resulting in a total accumulated 325 customers of TICON and TPARK – its subsidiary. Over 90% are international companies and majority of the customers still are Japanese companies. There are increasing proportion of Chinese customers from last year at 138.72%. Most of customers are in the automotive, electronic, logistics provider, and modern trade," Mr. Virapan revealed.
The second half of 2016 will see continuous growth of factories and warehouses for rental business, especially in the area of Bangna Trad, Bangplee and Wangnoi which derived from economic recovery, the accelerated approval process of the Board of Investment (BOI), and speeding up of the government expenditure in many infrastructure projects. These factors are attracting investment from abroad and should contribute to the increasing demand of rental factories and warehouses in the second half of 2016.
Mr. Virapan added, "TICON confirms the readiness to cope with the increasing demand. The company continues to develop its factories and warehouses in every regions of the country to meet targeted 280,000 square meters or 10% by the end of 2016. Moreover, TPARK projects in regional provinces such as Khon Kaen and Lamphun have already been launched to serve modern trade and logistics sectors in the northeast and northern Thailand which are growing noticeably."
In regard to the oversea investment, TICON is considering potential local partners in both Northern and Southern Vietnam, which is planned to be concluded by the end of this year. The company also is conducting feasibility studies of investment in Cambodia. For the investment in Indonesia, SLP, a joint venture company between TICON, SSIA and Mitsui, are building the second phase of 51,000 square meters to be completed by the end of this year out of the total project of 146,000 square meters. In addition, the company plans to acquire more land in many different areas to serve customers in various sectors in Indonesia.
"The company plans to sell its factories and warehouses to TREIT over 1,400 million Baht in the second half of this year which is below the original plan earlier this year due to less capital expenditure from not having to acquire more land this year" Mr. Virapan stated.
TICON Group now has total space of leased factories and warehouse of 51 projects with 797 units; covering a total space under management of 2.5 million square meters.