WHA Records a 247% Increase of Profit at ฿1bn from High Revenue and Lower Financial Cost

WHA Corporation Public Company Limited (WHA) has reported its 2Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

WHA recorded a net profit in 2Q19 at THB 1,051.92 million, increased 247.13%, mainly due to the increase of 51.9% from total revenue and 25.7% during 3 months and 6 months ended the second quarter of 2019, respectively, mainly from the increase in revenue from sale of investment properties and increase in revenue from industrial land sale.

Revenue from industrial land sale increased by 48.2% and 32.3% during 3 months and 6 months ended the second quarter of 2019, mainly from higher land transfer which came from higher backlog. Moreover, the gross profit margin improved to 61.4% and 57.0%, respectively, due to higher average selling price and better construction cost management.

Revenue from sale of investment properties increased by 45%, compared to the same period of last year. As WHA recorded deferred revenue from selling assets to WHA Business Complex Freehold and Leasehold Real Estate Investment Trust (WHABT) on 6 November 2015 and have undertaken in guaranteeing minimum EBITDA of the REIT, thus, their significant risk and reward were not transferred to the buyer. However, during the period 2019, WHA has reconsidered the remaining guarantee EBITDA and found that existing risk and reward were insignificant. WHA has therefore reversed deferred revenue amounting to THB 2,100.6 mm to statement of comprehensive income for this period.

Financial costs decreased by 17.6% and 14.5% during 3 months and 6 months ended the second quarter of 2019, due to lower weighted average cost of fund mainly from issuance of recent bonds with lower interest rate.