WHA Group Projects Strong Performance for 2H 2024, Targets Over 15 Billion Baht in Revenue and Profit Share with EBITDA Margin Exceeding 50%, Aiming for All-Time High, Transitioning into Tech-Driven Organization for Sustainability Across All Business Aspects
WHA Corporation Public Company Limited (“WHA Group“) is on track for robust growth in the second half of 2024, with revenues and profit shares anticipated to soar beyond 15 billion baht and EBITDA climbing over 50%. The company is advancing towards becoming a technology-driven organization committed to sustainability in all aspects. With continuous growth targets, it aims to expand its business both domestically and internationally, enhancing capabilities and extending the scope of its Mobilix services, offering an integrated suite of green logistics solutions that signify a transformative shift in transportation towards sustainability with a fully integrated electric vehicle ecosystem. It is also committed to leveraging digital technology and AI to enhance operational efficiency in all dimensions, developing innovative products and services, and expanding strategic partnerships. These align with WHA’s mission: WHA: WE SHAPE THE FUTURE, aiming to foster societal and environmental progress for national development.
Ms. Jareeporn Jarukornsakul, Chairman of the Executive Committee and Group CEO of WHA Corporation Public Company Limited said that “Heading into the fourth quarter and latter half of 2024, our business forecast is robust, propelled by strategic advancements and the development of business models attuned to global trends. This includes capitalizing on the shift of manufacturing and investment by international companies to Southeast Asia, and the incorporation of technology and sustainability into business operations. WHA Group has demonstrated its transformation into a leading Tech & Sustainable Company this year, a journey that began in 2021 with our Digital Transformation initiative. This initiative fostered an innovative culture, improved operational efficiency, and enhanced our competitive edge. As we progress, we’re transitioning into a data-centric organization, with the ambition to become tech-driven organization that fully embraces technology across all facets by 2025.”
The strategic direction for business operations across the four business hubs for the latter half of 2024 is outlined as follows.
Logistics Business: remains committed to growth, targeting expansion within Thailand from Bangkok, Samut Prakan, neighboring areas, and the Eastern Economic Corridor (EEC), and international areas focus on extending its reach in Vietnam, and exploring partnerships with industries that promise robust future growth.
In 2024, the aim is to secure new leases and rental spaces, with a focus on Built-to-Suit warehouses, totaling 200,000 square meters. The latter half of the year is set to see the delivery of over 140,000 square meters of factory/warehouse, comprising over 105,000 sqm Built-to-Suit project for customers in consumer goods and healthcare sectors, and 35,000 sqm ready-built factory from the company’s first project in Vietnam’s Hung Yen Province, in collaboration with Daiwa House. Additionally, property leasing rights to the WHAIR trust will be monetized, covering around 40,172 square meters, with an estimated value of 1,065 million baht. Mobilix, pioneering Thailand’s fully integrated green logistics solution with services including EV Rental Service , EV on Premise and Public Charging Stations, and Mobilix Software Solution, aims to bolster its fleet to 1,000 electric vehicles and trailers by end of 2024, through Partnership Development , Sales Channel Expansion, New Product Launches and New Commercial Offering Provisions.
Industrial Estate Business: The company has observed a robust demand for land within the industrial sector, prompting an upward revision of land sales forecasts from the initial 2,275 rai to 2,500 rai. This adjustment anticipates an 18% increase in the value of land sales contracts over the previous year. Furthermore, the company has set a target to sell over 1,400 rai of land in the latter half of 2024.
This year, Thailand’s land sales are anticipated to be the primary growth factor, while Vietnam is gearing up for a significant development phase in preparation for 2025, following a surge in land sales last year. The company is actively expanding its industrial land holdings, with plans to incorporate close to 10,000 rai across Thailand into its portfolio within the next four years. Currently, in Thailand, six industrial estate projects are underway, which include the initiation of four new projects and the expansion of two existing ones.
In Vietnam, the latter half of the year will see ongoing expansions. The WHA Industrial Zone 2 – Nghe An is on track to get phase 1 approval, which will cover 1,200 rai, by year’s end. Construction of WHA Smart Technology Industrial Zone 1 in Thanh Hoa province is slated to commence by the close of 2024, and WHA Smart Technology Industrial Zone 2 in the same region is expected to secure the Investment Registration Certificate (IRC) by this year’s end.
Utilities Business (Water): The company is actively exploring investment opportunities beyond WHA industrial estates. The strategy emphasizes enhancing the portfolio of value-added water products to cater to the increasing needs of various industrial domains, establishing new water production and wastewater treatment projects in Vietnam and developing innovative, environmentally friendly, and sustainable solutions.
Aiming for robust growth in 2024, the business has set a goal to achieve a total water sales volume of 178 million cubic meters this year, fueled by rising demand within industrial estates and contributions from new projects. Notably, the expansion in Vietnam is expected to surge as customer factories commence operations in WHA Industrial Zone 1 – Nghe An. The company has also entered into a supply agreement with PTT Global Chemical Public Company Limited (GC) for 3.5 million cubic meters of Premium Clarified Water annually, and a separate contract to provide 2.6 million cubic meters of tap water per year to the Provincial Waterworks Authority. Revenue from both contracts will commence in the second half of 2024.
Power Business: is actively expanding its energy solutions portfolio, with the goal of reaching a total secured Power Purchase Agreement (PPA) capacity of 1,000 megawatts. Clean energy sources will contribute 472 megawatts, with solar rooftop energy accounting for 283 megawatts of this figure. The company is enhancing its clean energy offerings by innovating and introducing new services, including the provision of electric vehicle charging stations in line with Mobilix’s investment strategy, aiming to install 120 chargers within the year. This includes establishing the nation’s most extensive charging facility, boasting a 5,400-kilowatt capacity. Furthermore, Power Business is exploring investment prospects in emerging New S-Curve sectors like Battery Energy Storage Systems and Carbon Capture Utilization and Storage Technologies.
Digital Business: is transforming the organization across all facets to become a Technology Company by 2024, with the vision to evolve into a Tech-Driven Organization the following year. This initiative is set to bolster the capabilities of WHA Group’s enterprises and drive revenue through innovative digital platform services, while continually advancing the technology team’s proficiency. Notable projects include Mobilix Software Solution, a smart digital platform for managing electric vehicles and batteries; WHAbit, a comprehensive health service platform; and WHASApp: a super app which consolidates comprehensive services for WHA customers and collects real-time utility and energy usage data.
In addition, WHA Group is advancing organizational efficiency through the integration of AI, undertaking 12 transformative technology projects aimed at enhancing operations, reducing expenses, and generating business value. These include Solar Anomaly Detection, which identifies issues within solar panel systems, facilitating prompt and effective maintenance; Solar Forecasting, which provides advanced predictions of sunlight availability, aiding in strategic planning to boost energy output and streamline operational expenses; and RO Performance Forecasting, which leverages data analytics to monitor water quality within industrial estates to maximize water resource utilization, minimize loss, and ensure compliance with environmental regulations.
“The year 2024 has underscored our commitment to technological integration as a cornerstone of operational success. Anchored by a robust business infrastructure, our vision ‘WE SHAPE THE FUTURE’ encapsulates our journey as a Tech and Sustainable Company. As we transition into a Tech-Driven Organization, our focus for the upcoming year is to foster economic, societal, and environmental development within Thailand and the broader region in a sustainable manner,” said Jareeporn.
