Kiatnakin Phatra Securities (KKPS) noted in its report regarding WHA Corporation Public Company Limited (SET: WHA) that, according to WHA’s CFO, clients have reacted to the recent U.S. tariff announcement. While no cancellations have occurred, uncertainty is anticipated to last around three months.
The CFO highlighted that current tariff levels in Thailand and Vietnam exceed expectations. Excluding pure China relocation, demand for new land sales is sustained by growth in industries such as electric vehicles, electrical appliances, and data centers. Demand is steady from clients planning to leave China and establish Thailand as a manufacturing hub for both domestic sales and regional exports. However, there is potential downside risk related to China rerouting to Thailand and Vietnam.
WHA has projected strong land sales, expecting approximately 800 rai to be sold in the first quarter of 2025, up from 630 rai in the same period last year. A significant transaction is also anticipated in the second quarter of 2025. In a worst-case scenario, the company forecasts new land sales of 1,600 rai for 2025.
WHA anticipates minimal impact on its 2025 earnings, bolstered by the year-end land backlog of 1,582 rai in 2024. Strong land sales are expected in the first half of 2025, with around 2,000 rai projected for transfer during the year, compared to 2,020 rai in 2024. Risks are tied to the extent of U.S. tariffs on China, Thailand, and Vietnam, which are still under negotiation. The primary threat remains the potential consequences of China rerouting, affecting land sales in 2026 and beyond.
To stay agile, WHA is adjusting its capital expenditures, particularly in landbank investments, to respond to shifts in client inquiries. The company’s net gearing is controlled internally, kept below 1.2 times.
As a result, KKPS maintains a ‘BUY’ recommendation for WHA, setting a target price of THB 6.00 per share. The company is expected to achieve net profits of THB 5.18 billion, THB 5.63 billion, and THB 6.03 billion for the years 2025, 2026, and 2027, respectively.
