Date of Report

October 24, 2024

Broker

UOB Kay Hian

Company Overview

WHA Corporation (WHA TB) is a leader in one-stop logistics services, operating across four business hubs: logistics, industrial development, utilities & power, and digital platform.

Stock Data

• GICS Sector: Real Estate
• Bloomberg Ticker: WHA TB
• Shares Issued: 14,946.8 million
• Market Capitalization: Bt75,481.5 million (US$2,083.7 million)
• 3-Month Average Daily Turnover: US$9.6 million
• 52-Week High/Low: Bt5.60/Bt4.54

Price Performance

• 1 Month: +2.6%
• 3 Months: +6.1%
• 6 Months: +11.2%
• 1 Year: +2.6%
• Year to Date: -4.7%

Major Shareholders

• Miss Jareeporn Jarukornsakul: 23.3%
• Miss Chatchamol Anantaprayoon: 9.0%
• Mr. Chaiwat Phupisut: 4.6%

Financial Highlights for 3Q24

• Expected Net Profit: Bt1.0 billion (+61% YoY, -22% QoQ)
• Expected Revenue: Bt2.1 billion (flat YoY, -10% QoQ)
• Gross Profit: Bt1.059 billion (+5.2% YoY, -13.8% QoQ)
• EBIT: Bt734 million (+30.2% YoY, -5.7% QoQ)
• EBITDA: Bt834 million (+12.0% YoY, -16.9% QoQ)
• Earnings Per Share (EPS): Bt0.94 (+60.6% YoY, -22.3% QoQ)

Revenue and Profit Outlook

• WHA’s revenue is expected to drop YoY and QoQ due to lower land transfers. However, land presales are anticipated to soar on a QoQ basis due to seasonal effects.
• Management expects strong land presales and transfer momentum to continue into 4Q24, supported by new data center customers in 2025.

Strategic Insights

• Softer Revenue Anticipated: Revenue is expected to come in flat YoY due to lower land transfers, although higher average selling prices (ASPs) should underpin performance.
• Robust Land Presales: WHA expects to achieve more than 70% of its 2024 land presales target, driven by strong demand in Thailand, particularly in sectors like consumer electronics and automobiles.

Earnings Projections

• For FY24, WHA expects:
  • Net Turnover: Bt17,648 million
  • EBITDA: Bt5,719 million
  • Net Profit: Bt5,225 million
  • EPS: Bt0.3
• Management maintains a target price of Bt6.50 based on the sum-of-the-parts methodology.

Key Financial Metrics

• Net Profit Margin: 29.9% for FY23, projected to rise to 31.6% in FY25.
• Debt to Equity Ratio: 123.3% in FY23, expected to decrease to 114.0% by FY26.
• Dividend Yield: 2.8% for FY23, with expectations of increasing dividends in subsequent years.

Market Sentiment and Future Outlook

• Strong sentiment for Thai industrial estates is anticipated to continue into 2025, with WHA expected to raise ASPs due to high demand.
• Share price catalysts include higher-than-expected volume of land sales and government stimulus packages for the tourism industry.

Conclusion

WHA Corporation is poised for significant growth with strong earnings projections and strategic positioning within the logistics and industrial sectors. The company maintains a BUY recommendation with a favorable outlook for land presales and revenue growth.