Krungsri Securities (KSS) has reiterated a ‘Buy’ recommendation for WHA Corporation Public Company Limited (SET: WHA), with a target price of THB 5.10 per share, citing confidence that the company will meet its 2025 operational targets.
WHA has already made significant progress toward its land sales goal of 2,350 rai for 2025, having sold 1,259 rai, or 54% of its annual target, as of the first nine months of the year. This progress is backed by 1,806 rai under a memorandum of understanding (MOU), including a 900-rai deal expected to be finalized in December.
The MOU covers major deals with an electrical appliance manufacturer (530 rai), an auto parts producer (470 rai), and a data center phase two (400-500 rai). Additionally, ongoing discussions with over 20 data center operators for more than 1,500 rai and a 20-25% year-on-year increase in value sales are expected to sustain a gross margin above 50%.
In the logistics segment, WHA has secured 154,012 square meters in new long-term contracts, accounting for 77% of its full-year goal, plus 73,407 square meters in short-term contracts. The company plans to sign an additional 43,663 square meters in Q4, valued at THB 1.4 billion.
Asset monetization efforts have also exceeded targets, with WHA selling additional warehouses to WHART for THB 769 million in October, bringing total asset sales to THB 1.6 billion — 5% above its initial plan. This is expected to contribute around THB 220 million in profit in the fourth quarter.
The company has reached 998 megawatts of equity capacity as of the third quarter, close to its 1,185 MWe target. An MOU for a direct power purchase agreement with a data center client for 120 MW supports this outlook.
WHA’s water business sold 121 million cubic meters in the first nine months and expects higher sales in Q4, based on newly signed contracts for 28 million cubic meters. These contracts are set to generate THB 600–700 million in annual revenue, with ongoing negotiations for an additional 17–29 million cubic meters for data centers likely to boost sales further.
Krungsri highlights several potential upsides for WHA, including additional water capacity charges from a major data center, stronger-than-expected sales to data centers, valuation upside from its 125.4 MW Feed-in Tariff project due between 2029 and 2030, and greater-than-expected gains from asset monetization.
Moreover, any court verdict on the Duong River project in Vietnam is viewed as neutral or potentially positive.
