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WHA Group targets total revenue of THB 100 billion

WHA Group showed outstanding performance in 2022, foreseeing a promising outlook for 2023 and beyond. The company expects to achieve an all-time high revenue and share of profits in the company’s history, with a significant growth rate of around 30%. With five new business strategies now in force, it forecasts a normalized total revenue and share of profits of THB 100 billion over the 5-year period (2023 – 2027), fueled by an investment plan of THB 68.5 billion, while maintaining a high EBITDA margin of over 40%, and the company’s interest-bearing debt (IBD) to equity ratio lower than 1.2 times.

This year, WHA Group announces its business strategies around five objectives:

  • Remain a Domestic Champion, by consolidating its No. 1 position in its core markets
  • Accelerate its International Expansion, with a special focus on Vietnam
  • Embrace Digital Innovation and New Technologies to enhance customer experience
  • Ensure Sustainable Growth through the development of new products and services with focus on sustainability concept
  • Develop to a High-Performance Organization and a Tech Company through digitalization.

The Group has also launched “Mission to the Sun”, consisting of 9 projects, to create new products and service enhancing customer satisfaction and to strengthen the development of the organization and personnel of the company. Core projects include Green Logistics, Digital Assets (Metaverse), Digital Health Tech, Circular, etc.

WHA 2022 Key Achievements

In 2022, WHA Group had a resounding success across its four business hubs; confirming the Group’s status as a leading developer of Logistics Properties, Industrial Estates, Utilities & Power, and Digital Solutions in Thailand and Vietnam.

  • WHA Logistics: Following the launch of the largest WHA Mega Logistics Center in Theparak Km 21 with a total area of 400 rai, 68% of phase I (130,000 sq.m.) is occupied by several largest e-commerce players, third-party logistics providers and other key tenants in the consumer goods sector. In 2022, WHA Logistics launched projects and signed lease agreements for Built-to-Suit and Ready-Built Properties of 206,000 square meters and has entered into short-term contracts with high returns totaling 135,000 square meters. This contributed to the Group having owned and managed a total of 2,720,000 sq.m. at the end of 2022.
  • WHA Industrial Development: Apart from a remarkable deal with BYD for a 600-rai land purchase agreement at WHA Rayong 36 Industrial Estate, WHA Industrial Development also signed an MoU for its 3rd project in Vietnam, in Quang Nam Province. The future 2,500 rai industrial zone will attract high-tech manufacturing industries in the automotive, mechanical, electrical and electronics. For the year 2022, total land sales amounted to 1,860 rai (1,754 rai in Thailand and 106 rai in Vietnam), higher than that of 855 rai in 2021 or an increase of 117.5%.
  • WHA Utilities and Power: a contract was signed with Ford Motor Company at WHA Eastern Seaboard Industrial Estate 1 (WHA ESIE 1) for the installation of the largest solar carpark in Thailand, featuring a total solar PV rooftop installation area of 32,200 sq.m. for a generating capacity of 7.7 MW. At the end of 2022, the company’s volume of water sales and management reached 145 million m3 and the installed equity power 683 MW.
  • WHA Digital: WHAbit, a healthcare application to enhance accessibility to healthcare services, including telemedicine, was officially launched in partnership with Samitivej Hospital. It also led the company’s digital transformation through over 32 projects to turn the company into a tech company.

In recognition of its achievements, WHA received a series of awards including 3 SET Awards: the “Commended Sustainability Award” for WHA Group; the “Best Innovative Company Award” for WHAUP; and the Outstanding REIT Performance Award” for WHAIR. Additionally, WHA Group and WHAUP were both listed in the 2022 Thailand Sustainability Investment (THSI) as “Sustainable Stocks”.

“The year 2022 saw the return of international investors and economic recovery, with significant deals and value-added projects across our four business hubs, enabling us to achieve remarkable growth while maintaining our strong financial position and financing capability,” commented Jareeporn Jarukornsakul, Chairman and Group CEO of WHA Corporation PCL. “With our clear business objectives, we are strongly confident that we are well on track to transform into a tech company in 2024 and enjoy sustainable growth.”

Bright Outlook for 2023 and Beyond

  • WHA Logistics will pursue its expansion in Thailand while seeking new opportunities in Vietnam, with a focus on high-growth industries, long-term partnerships and innovative and sustainable practices.

    In Thailand, WHA Logistics aims to continue capturing new demand in its strong foothold areas, including Bangkok, Bangna-Trad, and EEC provinces, as well as further growing its geographical footprint into other key logistics destinations covering major provinces and areas with proximity to major infrastructure projects. WHA Logistics’ product portfolio will be diversified from built-to-suit facilities and general warehouses to include smaller scale facilities to cater to the needs of smaller enterprises and SMEs. WHA Logistics has also planned for growth, aiming customers in high-growth industries, including EV, e-commerce and healthcare sectors through partnership with regional and global key players, including the use of innovations and technologies such as quantum computing, internet of things (IoT), data analytics, etc.

    For the Office Solutions business, WHA Logistics continues to expand several office building projects in prime locations in Bangkok. Most recently, the WHA KW S25 project is expected to be completed in July 2023 and is prepared to launch soon. Currently, WHA Logistics has 6 office building projects in Bangkok and Samut Prakan with a total area of over 100,000 square meters and complete facilities and superior design.In 2023, new projects and contracts from 3PL, consumer goods and retail sectors are expected to deliver a total of 200,000 sq.m., including 165,000 sq.m. in Thailand and 35,000 sq.m. in Vietnam. Total assets under ownership and management are forecasted to reach 2,900,000 sq.m. WHA Logistics also targets to divest assets of 142,000 sq.m. to WHART, worth THB 3,250 million in total.
  • WHA Industrial Development (WHAID) will extend its leadership in Thailand and broaden its national presence in Vietnam, while enlarging its product offering with advanced Smart-Eco Industrial Estates and high-value industrial projects.

    In Thailand and Vietnam, WHA Industrial Development Plc. (WHAID) holds a total of 71,000 rai (equivalent to 11,360 ha), with 4,000 rai of land available for sale. Currently, WHAID has 12 industrial estates under operation in Thailand, including WHA Rayong 36 Industrial Estate (1,280 rai), fully completed in 2022. There are 2 upcoming industrial estates. WHA Industrial Estate Rayong – Phase 1 (1,100 rai) started construction last October, while WHA Saraburi Industrial Land 2 (2,400 rai) is expected to start construction in 2026. There are also 2 expansion projects, specifically WHA Eastern Seaboard Industrial Estate 4 Expansion (570 rai) and another 400-rai expansion of WHA Rayong 36.

    WHAID will continue to enlarge its product range towards higher-value products and services. The supply of nitrogen gas by BIG WHA, a joint venture with Bangkok Industrial Gas, now operational at Eastern Seaboard Industrial Estate (Rayong), will be extended to other industrial estates as well as to other types of industrial gas. In 2023, underground fiber optic (FTTx) will be available in 11 WHA industrial estates in Thailand. Telecom towers business started off in three industrial estates last year and is expected to expand into more locations this year, enabling telecom operators including AWN, True and Dtac to rent spaces on these towers to install necessary devices for receiving and broadcasting network frequencies like 5G.

    In Vietnam, WHA Industrial Development is expanding its footprint on a national basis following a strategy of industrial expansion in selected key provinces for continuous long term investments, with 1 existing industrial zone and 2 upcoming projects representing a total of 20,950 rai (3,350 ha).

    WHA Industrial Zone 1 – Nghe An phase 1 (900 rai), is completed, equipped with the highest quality infrastructure, utilities and environmental care. Seventy-seven percent of Phase 1 is leased to customers whose activities span across sectors such as automotive parts, consumer products, materials and electronics. With sustained high demand for industrial land, the company is accelerating the development of subsequent phases with construction of Phase 2 (2,215 rai) underway.

    In addition, WHA has signed Memorandums of Understanding (MOU) with Vietnam Province authorities to develop another 2 industrial zones.
    The planning and license approval process has already started for ‘WHA Smart Technology Industrial Zone – Thanh Hoa’, covering 5,320 rai including potential expansion in Thanh Hoa Province, Vietnam’s 3rd most populated province with 3.6 million inhabitants. Construction is scheduled to commence in 2024 or early 2025.

    In Quang Nam Province, ‘WHA Smart Eco Industrial Zone – Quang Nam’ (2,500 rai) will benefit from its location at the heart of the Central region, including Danang and Quang Ngai Provinces. License approvals are expected in 2025 with relocation and construction activities to start thereafter.

    In 2022, total land sales, excluding non-core land in both Thailand and Vietnam, amounted to 1,740 rai, more than doubling compared to 2021. Thanks to positive investment sentiment and sustained customer development activities, total land sales from Thailand and Vietnam are expected to remain in 2023 at a high level of 1,750 rai.
  • WHA Utilities and Power Plc. (WHAUP) will continue to grow its business inside and outside the Group’s industrial estates, both in Thailand and Vietnam. Innovative and sustainable solutions will be offered.

    In Utilities,
     WHAUP will continue to expand products and solutions focusing on value-added water products. In 2022, the total water supply and wastewater management volume reached 145 million m3, including 28 million m3 in Vietnam and 5 million m3 of value-added water products (premium clarified water and demineralized water). For 2023, total water supply and wastewater management volume is expected to reach 168 million m3, mainly driven by an increase in water demand from big users, which contracts were secured in 2022 with a total supply volume of 15 million m3. Operations commenced at two value-added water plants supplying premium clarified water to 2 Gulf’s Small Power Producers (SPPs) and demineralized water to customers in Asia Industrial Estate, with a total water consumption capacity of 4 million m3 per year. Additionally, a new water treatment plant and a wastewater treatment facility in WHA Rayong 36 Industrial Estate was completed and has already commenced operations, with a total capacity of 3.3 million m3 per year. A new water treatment plant and wastewater treatment facility will start construction in WHA Industrial Estate Rayong (WHA IER) in February 2023, with a total capacity of 5.8 million m3 per year.

    Regarding the strategy to secure alternative raw water to increase water supply reliability, there are two projects, with a total water capacity of 10 million m3 per year. The first raw water project to support WHA Rayong 36 Industrial Estate and WHA RIL has already been commissioned, whereas the second project at WHA ESIE4 will start construction in 1Q’2023.

    For the utilities business in Vietnam, where WHAUP has 3 water projects under operations, a significant growth of 26% YoY was recorded in 2022 to 28 million m3due to an increase of the customer base and water supply coverage area; this number is expected to grow to 33 million m3 in 2023.
  • In Power, WHAUP aims to enlarge its portfolio in Thailand, to expand in Vietnam and to explore a new market overseas. It will continue to implement innovative and sustainable practices while seeking new opportunities with new S-Curve businesses such as Battery Energy Storage Systems (BESS), Hydrogen, Carbon Trading and Carbon Capture Utilization and Storage (CCUS).

    WHAUP’s target cumulative signed Power Purchase Agreements (PPAs) equity capacity for 2023 is 847 MW, from 683 MW in 2022, including 547 MW for conventional power, 133 MW for solar energy and 3 MW for industrial waste to energy. Renewable energy projects will be further developed, with a cumulative signed Power Purchase Agreements (PPAs) target of 300 MW by the end of 2023.

    As part of its strategy focusing on smart and innovative digital solutions, WHAUP has been co-developing, with PTT and Sertis, the Renewable Energy Exchange (“RENEX”) platform, a Peer-to-Peer Energy Trading system using Blockchain technology. The RENEX platform facilitates energy trading between industrial users and allows participating companies to freely trade solar power directly with one another via the PEA grid network. The project was launched in 2022 with first-wave participation from 54 leading customers within 3 initial WHA industrial estates (WHA ESIE 1, WHA ESIE 2 and ESIE). Additionally, starting off by registering solar projects in the Thailand Voluntary Emission Reduction Program (T-VER) and International Renewable Energy Certificate (I-REC), WHAUP aims to incorporate a Carbon Credit Trading feature into the platform.
  • WHA Digital will continue to lead digital transformation initiatives within WHA Group, empowering business operations to enhance productivity, efficiency, accessibility, and digital security. In addition, WHA Digital will further collaborate with business hubs of WHA Group for creating new value-added products and services driven by technologies to increase customers’ satisfaction and attract new ones. Solar rooftop monitoring dashboard and performance detection devices were the first initiatives being developed and implemented by WHA Digital for WHAUP. New initiatives including analytic tools, automation, and smart devices are currently being explored and developed.

    WHAbit and Meta W are among the first products branded under WHA Digital. Launched in 2022 in collaboration with Samitivej Hospital to promote digital healthcare, the second version of WHAbit will be released in Q2 2023 with improved data visualization and personalized suggestions. WHA Group also plans to launch Meta W, the 1st Industrial Metaverse designed to enhance customers’ experience, create new opportunities, and strengthen WHA Group’s businesses in the digital era. Meta W will offer a digital twin of WHA Group, providing a virtual tour of its activities and operations, new business models and monitoring experiences. Going forward, WHA Digital plans to expand its own products and services to be offered to customers both inside and outside WHA Group’s ecosystem.

In line with its strategy, WHA Group plans to invest a total of THB 68.5 billion over the next 5 years, from 2023 to 2027. The target investment budgets for 4 business hubs, specifically WHA Logistics, WHAID, WHAUP and WHA Digital amount to THB 17 billion 29 billion, THB 18.5 billion and THB 4 billion, respectively.

“We look forward to 2023 with heightened confidence and optimism,” declared Jareeporn Jarukornsakul, Chairman and Group CEO of WHA Corporation PCL. “As we get closer to becoming a tech company, we continue to promote innovations across our four business hubs, while implementing sustainable growth and fostering environmental protection, social promotion, and good governance. We already achieved carbon neutrality in 2021 and are determined to reach net zero greenhouse gas emissions by 2050. This will benefit all our stakeholders, including our customers, employees, shareholders, business partners and, ultimately, the entire Thai society at large,” she concluded.





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