Bangkok--20 Aug--BrandComm Consultants
Hemaraj Land And Development Public Company Limited announced its operating and financial results for Quarter 2, 2009 and year to date as summarized below.
Quarter 2’2009 and 6 months of 2009 Net Income
For Quarter 2’2009, Hemaraj reported Total Net Income of Baht 278.9 million, or a decrease of 23% compared with the same period of last year. Net Income attributable to normal Operating Earnings also was Baht 278.9 million. The decrease of Net Income from Operating Business for Quarter 2’2009 was mainly due to lower industrial land sales and property sales compared to the same period of the prior year. Earnings per-share was 0.030 Baht per share, representing a decrease of 23% from the same period of last year.
For the first 6 months of 2009, Hemaraj reported Total Net Income of Baht 347.3 million, or a decrease of 60% compared with the same period of 2008. The decrease of Net Income from Operating Business for the first half of 2009 was mainly due to lower industrial land sales and property sales compared to the same period of the prior year. Earnings per-share was 0.037 Baht per share, representing a decrease of 60% 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.
“Hemaraj finished the first half of 2009 with the Operating Revenue of Baht 1,248 million, a decrease of 49% from the same period of last year and Total Revenue of Baht 1,240 million, a decrease of 54 %. Total Net Income and Net Income from Operating Business were Baht 347.3 million.
As we noted in the year-end 2008 and first quarter 2009 reports, the global economic disruption has led to a dramatic drop in durable goods consumption. However, the reductions in production levels to reduce inventory pipelines and reflecting lower demand have stabilized and are starting to return to more normal run rate levels. We believe the next plausible step is for investors to rationalize manufacturing locations as they become more confident with their business prospects going forward. In the interim, we have seen a sharp fall off in short term industrial estate land demand. These subsequent disruptions in areas of our customer base include automotive and petrochemical. We have revised our business and financial plans to reflect this accordingly.
We further believe the investment in Thailand and in Hemaraj’s business model will remain attractive. Thailand will benefit, with an improving investment climate and the rule of law enforcement, from the investment relocation and expansion in production to strategic locations based on cost currency and market access. Industrial cluster opportunities will continue for automotive, petrochemical, and other industrial sectors long term, particularly at Hemaraj’s “Detroit of the East” automotive cluster in the Eastern Seaboard and Hemaraj’s petrochemical cluster in MapTaPhut, Rayong.
While we are experiencing with lower revenue from industrial estate sales currently, encouragingly we have seen a 22% growth in Utilities revenue and a 20% growth in Rental Property revenue year to date. Our broadened recurring revenue and a strong balance sheet cushions the disruption while markets recover. Hemaraj is continuing significant investments in power with our Gheco-One IPP power project progressing and a Quarter 2’09 investment in the Houay Ho hydropower project and with other recurring utilities. While continuing to optimize predictable returns to shareholders we are particularly cognizant of the risk profile on investments and end user demand.”
Revenue and Results of Operations for 6 Months of 2009
For the first 6 months of 2009, Hemaraj’s Total Revenue was Baht 1,240.2 million compared with Baht 2,701.8 million for the same period of 2008, representing a 54% decrease. Total Operating Revenue from core businesses were Baht 1,247.6 million, a 49% decrease from the same period of 2008. Industrial Estate Land Sales for the first 6 months of 2008 including Profit from Associated Industrial Estate were Baht 427.2 million, or a 71% decrease. There is an additional Baht 812 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 months.
Total Utilities Revenue including industrial estate utilities, profit/dividend from power/utilities associates, and other utilities & services fees increased to Baht 533.1 million, an increase of 22%. Total Rent Revenue including SME factory rental, piperack rental, and commercial office rental increased to Baht 278.2 million, an increase of 20%. Sale of Property including SME factory sales, residential sales and other land/property sales decreased to Baht 8.5 million from Baht 305.6 million, a 97% decrease.
The Gross Profit was Baht 565.6 million, a 45% decrease from the same period of last year. Earnings Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 347.3 million, a decrease of 60%. The Gross Profit Margin and EBITDA Margin were at 45% and 29%, respectively.
Significant Activities for the first 6 months of 2009
Industrial Estate Sales were net 15 rai with 8 contracts, 5 new customers and 3 project expansions from existing customers. Total industrial customers are now 399 distinct new customers with 592 contracts and 134 automotive customers.
Hemaraj jointly invested with Glow in Houay Ho Power, (Hemaraj’s effective shareholding 12.75%, USD 7.74 million) a company operating a 152 Megawatt Hydro Power Plant in Laos selling electricity to EGAT.
Hemaraj paid Baht 0.035 per share final dividend for 2008 bringing the total dividend for 2008 to Baht 0.07 per share.
Balance Sheet Highlights at 30th June 2009
At 30th June 2009 Hemaraj reported Total Assets of Baht 13,403 million, Total Liabilities of Baht 5,261 million and Total Shareholders Equity of Baht 8,142 million. The Net Debt to Equity ratio remained low at 0.57 to 1. Cash on Hand was Baht 615 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
Or contact:
For more information, please contact:
BrandComm Consultants Co., Ltd.
Ms. Pailin Buranamittranond /
Ms. Sasinee Aoucharoenpuck
Tel. 02 642 9620 (12 lines) Fax. 02 642 9688