Krungsri Securities (KSS) maintained a ‘Buy’ rating on WHA Corporation Public Company Limited (SET: WHA), with a target price of THB 5.10 per share, despite expectations of weaker land sales and profits in the third quarter of 2025.
KSS estimates WHA’s land sales at 200 rai in 3Q25, marking a significant 73% year-on-year and 13% quarter-on-quarter decline. The softness primarily stems from delays in the signing of large-lot deals—a result of postponed overseas investment license approvals from Chinese authorities. Cumulatively, WHA has recorded land sales of 1,300 rai for the first nine months of 2025, down 27% year-on-year and accounting for about 56% of the company’s full-year 2025 target.
Despite the slowdown, WHA maintains its 2025 sales target of 2,350 rai, supported by MOUs for 1,800 rai. This includes three major deals in the electrical appliance, tire manufacturing, and data center sectors, with the data center customer planning a phase 2 expansion totaling 1,000 rai.
KSS forecasts a core profit of THB 705 million for WHA in 3Q25, down 7% year-on-year and 35% quarter-on-quarter. The decline is attributed to softer deed transfers—267 rai in 3Q25 compared to 370 rai in 3Q24 and 300 rai in 2Q25—as well as narrower margins due to higher costs on specific land plots. However, an estimated THB 250 million in excess charges from a major data center client helps cushion the impact.
WHA’s accumulated profit for the first nine months of 2025 is estimated at THB 3.9 billion, up 17% year-on-year and representing 82% of KSS’ full-year estimate. The company is expected to announce its 3Q25 results on 14 November.
Notably, the analyst stated that WHA’s share price has corrected by 12% over the past two weeks, which is believed to already reflect the softer 3Q25 performance.
Looking ahead, KSS expects stronger land sales and earnings in the fourth quarter, driven by a 1,400-rai backlog, improved margins, and profit from asset monetization at prices above previous expectations. Revenue from excess charges in the data center segment and potential phase 2 bookings in 2026 are also seen as positive share price catalysts.
