At the end of the morning session on Monday, the share price of WHA Corporation Public Company Limited (SET: WHA) plummeted by 15.22% or THB 0.70 to THB 3.90, with a trading value of THB 1.76 billion.
Land and Houses Securities (LHS) noted that WHA’s net profit in the fourth quarter of 2024 fell below expectations, recording THB 1.25 billion, due to weak performance in WHAUP. This included losses from the Gheco-One project, reduced sales in industrial water supply, foreign exchange losses, and lower-than-anticipated land transfer volumes. However, strong gross profit margins were maintained for land transfers and revenues from logistics.
The analyst cut WHA’s 2025 earnings projections by 15% to THB 4.64 billion but remains at a record high of +6% year-on-year, driven by solid land transfers and a larger backlog, indicating a positive profit outlook.
Despite these adjustments, the analyst has no concerns regarding the fourth-quarter 2024 earnings figures and upholds a ‘BUY’ recommendation for the company. However, the target price has been revised downward to THB 6 per share to align with the adjusted forecast.
Yuanta Securities (Thailand) attributed the drop in WHA’s share price to investor pessimism surrounding the weak performance in the fourth quarter of 2024, falling short of expectations by approximately 20%.
The analyst also expressed a ‘Neutral’ stance towards the spin-off of WHA Industrial Development (WHAID), which is set to introduce an IPO in the near future. This move will provide a true reflection of WHA’s valuation, allowing investors keen on the industrial estate sector to directly participate. Furthermore, as WHA transitions into a holding company, its long-term value is projected to diminish.
