Bangkok--17 Aug--BrandComm Consultants
Hemaraj Land And Development Public Company Limited announced its operating and financial results for Quarter 2, 2010 and year to date as summarized below.
Quarter 2’2010 and 6 months of 2010 Net Income
For Quarter 2’2010, Hemaraj reported Total Net Income of Baht 114.7 million, or a decrease of 59% compared with the same period of last year. Earnings per-share was 0.012 Baht per share, representing a decrease of 60% from the same period of last year.
For the first 6 months of 2010, Hemaraj reported Total Net Income of Baht 491.0 million, or an increase of 41% compared with the same period of 2009. The increase of Net Income from Operating Business for the first half of 2010 was mainly due to higher industrial land sales, industrial estate utilities and residential sales compared to the same period of the prior year. Earnings per-share was 0.051 Baht per share, representing an increase of 37% 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 started the first half of 2010 with reasonably good performance reflected by Total Revenue of Baht 2,055 million, an increase of 66%. Total Net income was Baht 491 million, an increase of 41% from the same period of last year.
Our market leading industrial estates sales, with a strong position in the automotive industry resulted in 623 rai (249 acres) sold in the first half of 2010. Notable was the Ford Motor Company new regional manufacturing plant of 468 rai (187 acres) at Hemaraj Eastern Seaboard Industrial Estate extending our 15-year relationship. Including the results to date in 2010, we see continued broad based revenue growth opportunities and affirm our higher 2010 Industrial Estate Sales outlook of 1,000 rai (400 acres).
We are exiting from an unprecedented global financial turmoil at the end of 2008 and in 2009, which resulted in a collapse of durable goods consumption and severe reductions in production levels. In Thailand, the local and export markets the last four quarters have reflected a return to higher production levels and capacity utilization, with regional consolidation and renewed growth potential. Thailand is slowly resolving procedures for health impact assessments for chemical and heavy industry. Political tensions have stabilized though still warranting caution. Tourism is returning and more sensitive foreign as well as domestic industrial investors are resuming higher levels of investment. We are executing our business plan with prudence with significant capital commitments as well as opportunities while also enhancing a strong liquid financial posture.
Our business strategy will remain attractive. Thailand is benefiting from the consolidation in production to strategic regional locations based on cost currency and market access. Investment and industrial cluster opportunities will continue for automotive, petrochemical, and others, particularly at Hemaraj’s Eastern Seaboard “Detroit of the East” automotive cluster and Hemaraj’s petrochemical cluster in MapTaPhut, Rayong. Export growth in 2010 could approach 20%. Automotive production, from depressed 2009 levels, is projected to grow 60% to record levels with numerous new OEM plants announced. Thailand GDP growth projection is now 6% or more for 2010.
Hemaraj is pursuing broadened recurring revenue, reflected by a 28% growth in industrial estate utilities, an increase in rental property revenue, and a return of residential revenue though the latter was disrupted in the second quarter. With a strong balance sheet position and Net Debt to Equity of 0.50 in Q2’2010, we have undertaken a series of local unsecured baht bond fund raising, as of this date, at a total of Baht 5.362 billion with 3 to 7 year maturities at fixed interest rates. Hemaraj is continuing significant investments in power with our 35% shareholding in the Gheco-One IPP power project and other recurring power or utility investments as well as continued industrial and property investments. We are cognizant to utilize this broadened revenue to manage the risk profile of the company in order to optimize predictable long term returns to shareholders.”
Revenue and Results of Operations for 6 Months of 2010
For the first 6 months of 2010, Hemaraj’s Total Revenue was Baht 2,054.5 million compared with Baht 1,240.2 million for the same period of 2009, representing a 66% increase. Total Operating Revenue from core businesses was Baht 2,101.7 million, a 68% increase from the same period of 2009. Industrial Estate Land Sales for the first 6 months of 2010 including Profit from Associated Industrial Estate were Baht 822.7 million, or a 92% increase. There is an additional Baht 887 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 552.7 million, an increase of 4%. Total Rent Revenue including ready built factory rental, pipe-rack rental, and commercial office rental decreased to Baht 231.5 million due to lower property services, in total a decrease of 17%. Sale of Property including ready built factory sales, residential sales and other land/property sales increased to Baht 494.8 million from Baht 8.5 million, a 5741% increase.
The Gross Profit was Baht 794.6 million, a 36% increase from the same period of last year. Earnings Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 585.0 million, an increase of 55%. The Gross Profit Margin and EBITDA Margin were at 39% and 28%, respectively.
Significant Activities for the first 6 months of 2010
? Industrial Estate Sales were net 623 rai with 20 contracts, 10 new customers and 10 project expansions from existing customers. Total industrial customers are now 417 distinct new customers with 622 contracts and 144 automotive customers.
? TRIS Rating affirms Company Rating of Hemaraj at “A-” and changes the outlook to “Stable” from “Negative” dated 6 August 2010.
Balance Sheet Highlights at 30th June 2010
At 30th June 2010 Hemaraj reported Total Assets of Baht 16,111 million, Total Liabilities of Baht 7,440 million and Total Shareholders Equity of Baht 8,671 million. The Net Debt to Equity ratio remained low at 0.50 to 1. Cash on Hand was Baht 3,101 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 Public Company Limited 18/F UM Tower, 9 Ramkhamhaeng Road, Suanluang, 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. Pailin Buranamittranond /
Ms. Saovarin Thongthad
Tel. 02 642 9620 (12 lines) Fax. 02 642 9622 www.hemaraj.com
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