WHA: A Short-Term Plan to Boost Confidence

WHA Corporation Public Company Limited (WHA) is a popular share among stocks related to the industrial estate that investors usually picked for speculation for the past two to three years.

 

The share price for the past year was considered poor and posted a plummet of 31.28%. Meanwhile, WHA dropped as much as 53.37% when compared to the highest price in 2019 at ฿5.00/share.

The decline was so fast that analysts could not calculate a support level in time before another plummet of WHA’s share price.

Those who are waiting for positive factors from The Eastern Economic Corridor (EEC) and the cease-fire between the U.S. and China would have to wait a while longer.

 

Ms. Jareeporn Jarukornsakul, as a Chief Executive Officer and a major shareholder of WHA, bought 26.36 million of WHA’s shares in the trading session totaling nearly 85 million baht to display confidence in the company. The boost from Ms. Jareeporn had made WHA’s share price to increase 4.49% to close at ฿3.26/share on the previous Friday.

However, the “boost” might be able to regain confidence for investors only by a certain level. In order to build solid confidence, WHA must solve the problem at its root, which is WHA’s revenue. Things will get better if WHA can post a promising figure in its normalized profit, not from booking extraordinary items.

 

Analysts expect WHA’s net profit in 4Q19 would be 1,200 million baht, decreasing 20% YoY and increasing 106% QoQ. The increase is due to the asset selling to WHART, resulting in an increase of 10% in net profit to record at 3,200 million baht in 2019. The number will be unveiled not before long.

 

WHA would lose some positive factors in 2020 due to the spread of coronavirus and the delay of the draft 2020 budget which could cause a slow down from Chinese investors on the industrial estate.

In this regard, 2020 may not be a wonderful year for WHA or any other companies in the real estate business. However, a lower share price with a dividend payment of around 2.54% is not a bad consideration at all!