WHA Group Posts Record Performance in 2023 with Confidence for Growth Towards a Sustainable Future

WHA Corporation Public Company Limited (WHA Group) launches its strategic plan for 2024 with the mission of “WE SHAPE THE FUTURE”, aiming at strengthening and synergizing the capabilities of its 4 business hubs. The company reported a strong 2023 performance, achieving a new record high by closing deals for land sales contracts totaling 2,767 rai and lease agreements for factory and warehouse totaling 242,000 square meters, with anticipated total normalized revenue and share of profits of THB 17,200 million, an increase of 11% from last year, while still maintaining an EBITDA margin of over 40%. With an investment budget allocated for 2024-2028 at THB 78,700 million, WHA Group targets total revenue of THB 100,000 million over the next 5 years, along with achieving the goals under the mission of “WE SHAPE THE FUTURE” in bringing a sustainable development to economy, society, the environment and national sustainable development.

Ms. Jareeporn Jarukornsakul, Chairman of the Executive Committee and Group CEO of WHA Corporation PCL. said that “In 2024, we are still committed to innovating business and industrial solutions to strengthen Thailand’s competitive edge, attract new investments, and create a sustainable future. Our preeminent duty is to achieve the goal of turning to a technology company with AI Transformation strategy, aiming at building digital-ready culture in the organization with a full readiness to embrace digital transformation, elevate operational capabilities with data and artificial intelligence, maintain our leadership in a rapidly changing business landscape and advance our digital transformation programs which now account for more than 38 projects.”

WHA Group’s 4 key strategies in 2024 consists of Extend Leadership, accelerating continued business expansion both in the country and regional markets; Embrace Innovation and Technology, bringing digital technology to create new S-curve businesses; Enhance the Prominence on Green and Sustainability, aiming at achieving net zero emissions by 2050; and Build a High-Performance Organization by enhancing digital technology capabilities.

Logistics Business: In 2023, WHA Logistics achieved remarkable growth by signing lease agreements for Built-to-Suit Factories and Ready-Built Factories / Warehouses totaling a record high of 242,000 square meters. This contributed to the Group’s ownership and management of a total of 2,945,000 square meters. WHA Logistics also monetized assets of 142,900 square meters to WHART, worth THB 3,566 million.

Another major achievement in 2023 is the acquisition of shares in GC Logistics Solutions Company Limited (GCL), a subsidiary of PTT Global Chemical Public Company Limited (PTTGC), in the proportion of 50%, valued at THB 2,640 million. The investment leads to a synergy of the two companies’ expertise and market leadership in order to enhance business capability, competitiveness, as well as customer service.

The growth strategy for the logistics business is to continue to expand Built-to-Suit Factories and Ready-Built Factories / Warehouses in Thailand and abroad with focus on maintaining and establishing strategic partnerships, enhancing through innovations and technologies and embracing sustainable practices. Green Logistics project, for instance, has been developed to support and accelerate the adoption of electric vehicles (EV) in the transportation sector of Thailand. With this, WHA Group is set to offer EV fleet service, EV charging stations and digital applications for EV fleet and battery management. In 2023, the company already signed lease contracts for 25 units of EV with customers and aims to lease out an additional 1,000 units in 2024.

In 2024, the company targets to deliver new projects and contracts totaling 200,000 square meters, with 165,000 square meters in Thailand and 35,000 square meters in Vietnam. Total assets under ownership and management are projected to reach 3,145,000 square meters. In addition, WHA Logistics plans to sell leasehold rights totaling approximately 213,000 square meters to WHART and WHAIR, valued at approximately THB 5,290 million.

Industrial Estate Business: In 2023, the company achieved record-breaking total land sales of 2,767 rai, divided into 1,986 rai in Thailand and 781 rai in Vietnam. Two remarkable achievements are the signing of a land purchase agreement with Changan Auto Southeast Asia, a China’s leading automotive group, for a 250-rai plot in the WHA Industrial Estate Eastern Seaboard 4; and the signing of land sublease agreement with Fu Wing Interconnect Technology (Nghe An), a subsidiary of Foxconn Interconnect Technology, the world’s largest electronic equipment manufacturer, for a 300-rai plot.

In 2024, the company has development and expansion plans for 7 industrial estate projects in Thailand on a total area of nearly 10,000 rai over the next 4 years, which will bring the total industrial estate area in the country to reach 52,000 rai in 2027. The development of the Smart ECO Industrial Estate has continued to be the company’s key focus by broadening capabilities in 6 pillars: Smart Services, Smart Mobility, Smart Communication, Smart Power, Smart Water and Smart Security, all of which are controlled and managed by Unified Operation Center. WHA Industrial Estate has also continued to strengthen its capabilities as a total solution partner for customers by providing related services such as carbon neutrality and telecommunications services. In Vietnam, in addition to WHA Industrial Zone 1 – Nghe An, of which the Phase 1 has been highly successful with more than 77% of tenancy reached, and the Phase 2 is currently under development plan, the company has planned to expand another 3 industrial zone projects on a total of over 22,813-rai land plot.

For 2024, the company has set land sales targets in both Thailand and Vietnam, totaling 2,275 rai. This exceeds the target set in 2023, which was 1,750 rai. Notably, in 2023, the company surpassed the land sales target by an impressive 58%, reaching a total of 2,767 rai.Utilities & Power Businesses – Utility Business(Water), in 2023, WHA’s utilities business has achieved growth over the previous year. Total sales volume of water and wastewater treatment in Thailand accounted for 121 million cubic meters, representing 4% growth, sales volume of raw water was 32 million cubic meters, and the sales volume of value-added water products was 6 million cubic meters. Meanwhile, the volume of water sales and management in Vietnam is 34 million cubic meters, an increase of 18% from the previous year.

In 2024, the company has set a target of reaching total sale of 178 million cubic meters for both water supply and wastewater management, divided into 142 million cubic meters in Thailand and 36 million cubic meters in Vietnam, representing a growth rate of over 14%, driven by the expansion of all types of water services in new WHA industrial estates and outside, as well as the continuous growth in demand for water from customers in Vietnam. Looking forward, the company will continue to expand the value-added water product business to reach a target of 10 million cubic meters, as well as develop the Smart Water Platform and explore new business opportunities such as environmental solutions and other industrial utilities services. Power Business – the company continued to invest and develop energy solutions, especially those related to renewable energy. In 2023, an additional 42 solar rooftop contracts were signed, with a total power capacity of 50 megawatts. In addition, the company was selected by the Energy Regulatory Commission (ERC) to obtain the right to develop 5 solar farm projects with a Feed-in Tariff scheme Phase 1 with the installed capacity totaling 125.4 equity megawatts.

In 2024, WHA Group continues to focus on smart and innovative solutions including EV charging station, Peer-to-Peer Energy Trading platform, International Renewable Energy Certificate (I-REC) trading, as well as seek new opportunities with new S-curve businesses such as Battery Energy Storage Systems (BESS) and Carbon Capture Utilization and Storage (CCUS). The company sets a target of cumulative signed PPAs at 1,000 megawatts, of which 453 megawatts are derived from renewable energy sources with solar energy accounting for 283 megawatts.

Digital Business: The company has actively continued to enhance every aspect of group business with the goal of transforming into a technology company in 2024 under “Mission to The Sun” covering from digital transformation projects to new and value added products to meet customer needs while strengthening WHA Group business ecosystem. For instance, the Green Logistics project is progressively advancing with digital technology development for Super Driver application to provide commercial EV customers with fully integrated services, such as fleet management, route optimization and EV roaming.

In addition, the company aims to achieve the goal of 100% circularity by 2050 as driven by 3 key pillars: Design & Resource, Green Products and Operation Excellence. In 2023, the company’s 4 business hubs have proposed 40 circular economy projects.

The accomplishments of the company’s businesses in 2023 have also been widely recognized with several awards and accolades. These include the Best Sustainability Awards and Commended Sustainability Awards from the SET Awards 2023; the Prime Minister Award in Innovation for Global Challenge, Competitiveness category; Kincentric Best Employer Award Thailand 2023; the Eco-Industrial Estate Award from the Eco Innovation Forum 2023, as well as being selected to be in the 2023 S&P Global Sustainability Yearbook and named Industry Mover in the real estate development industry group.

Looking ahead to 2024, WHA Group is committed to developing and enhancing its capabilities across all areas for a strong growth in its 4 business hubs together with building preparedness capacities to address new challenges and working towards the next future goals.