Bangkok--Aug 15--Amata Corporation
Amata’s Q2/2005 performance was excellent, with net profit up 150%. Land sales increased by 80%. Amata expects continued steady growth in the second half of 2005, and will probably increase the Amata land sales target for 2005 after seeing the client interest in Q3, also will launch new service of Amata Medical Center. Amata notes the stronger Yuan will accelerate the movement of Chinese investors to Thailand, and pushes the government paying attention to the ESB water resource management as a basic infrastructure for the investors.
Mr.Viboon Kromadit, Senior Vice President of Amata Corporation PCL announced that he was pleased with the Q2/2005 performance for Amata, sales were over its target with a total of land sale at 671.11 rai; Amata Nakorn sold 217.5 rai and Amata City sold 453.61 rai for Q2. During this period, Amata signed 21 new land purchase contracts. Total revenue in Q2 was Bt.1,508 million and total net profit was Bt.404.52 million, earnings per share ware Bt.0.38, up 150% in net profit and 80% in land sales compared to Q2/2004. The major reason for the success is seen in increased investors’ confidence in Amata, especially in the automotive sector.
“Following the very positive 2005 second half results, Amata may revise the land sales target of 2005 for both Amata Nakorn and Amata City, depending on how the sales develop over the rest of Q3. Amata continues to see the expansion of existing clients, as well as an interesting array of new investors in auto parts and the electronic industries from Japan and China. Some of them are looking for land of over 100 rai. Moreover, we are confident on our land sale growth of 2005 which will be over 60% comparing to last year.” Mr.Viboon said
“Amata”, first half sales over its target
Reviewing the first half performance of 2005, Amata sold a total of 901.74 rai, or 427.21 rai at Amata Nakorn and 474.53 rai at Amata City. The total number of new contracts signed was 39. Total revenue for the first six months was Bt.2,534.06 million and total net profit was Bt.624.12 million, or earnings per share were Bt.0.58. Japanese investors continued to be attracted to Thailand and Amata reported that 30% of the new contracts were signed with Japanese companies. Second at 21% were Thai companies. The leading sector was the automotive industry at 38%.
“Amata” confident Japan-Thai FTA brings in Japanese investors
Mr.Viboon commented that the world economic slowdown due to the higher oil prices, the terrorism etc., has not to date affected client investment in Thailand and Amata. He believes that the new cabinet with mega-projects and the economic policy on Japan-Thai FTA which will be effective since September 2006 will result in continuous growth in FDI of Japanese investors in Thailand.
Strengthening of the “Yuan” also brings in Chinese investors
About the strengthening of the Yuan, it will result in more Chinese investors seeking to relocate to Thailand due to the change of exchange rate which makes Yuan continuously stronger and no longer attractive in investing in China. Chinese investors will expand their project in foreign countries, especially in Asian region. Thailand can be the most distinguished choice for them as the reason of efficiency cost of investment and stability in politics comparing to our neighboring countries.
“Amata” points out the poor in ESB water resource management
Refer to the water shortage problem in the Eastern Sea Board, the government is now paying more attention to remedy the situation. Water supply in the Eastern Sea Board is sufficient, but there is a problem of water resource management, which has to be improved for the long term prevention of a water shortage.
“Amata” new service line
Ms.Somhatai Panichewa, Vice President Business Development discussed on new business plan. Amata will further expand its service businesses for the benefit of existing clients by targeting to create at least 50 subsidiary companies under Amata within next 3 years. Currently Amata has 13 subsidiary companies. Amata will soon start up new service which is the opening of the Amata Medical Center in October of this year. The Medical Center will cooperate with the Ministry of Labour and the Ministry of Public Health under the project of zero-sickness in working life. Amata will be a pioneer and the first estate to serve its people in perfect professional medical service.
“Amata” starts phase 2 of ready built factory for rent in Sep.05
Amata Summit Ready Built Factories, an Amata subsidiary company which was established in the end of last year, has been built eight RBFs of 850-1,200 sqm.factories for rent since the early part of this year. Now 4 of the RBFs have been leased to a French, a Singapore and two Japan companies and many new deals are under negotiation about the building design. Therefore, within this year Amata Summit will develop phase 2 to build 7 more factories in the Amata Free Zone at Amata Nakorn, Chonburi. The construction will start in September and the factories will be available in early 2006.
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