Hemaraj looks to best-ever year

President and CEO David R Nardone yesterday said the company had recently upped its targeted land sales in its estates from 1,300 rai to 1,700 rai for the year, having recorded sales of 934 rai in the first half.

The company also expects the number of land-sale contracts this year to exceed the usual annual average of 50. Hemaraj in the first half signed 31 contracts - 15 with new clients and 16 for project expansions.

Suzuki Motors purchased 412 rai of land in the Hemaraj Eastern Seaboard Industrial Estate for its eco-car project.

Meanwhile, factory rentals and sales are targeted to grow this year by 20 per cent and 30 per cent, respectively.

Utilities businesses, including power and water supply, are expected to generate a good yield for the company this year. Hemaraj forecasts Bt750 million in revenue from the water-supply business, rising to Bt1.5 billion in 2011.

"I believe this will be the best year for our performance. I target the company's revenue to grow by 5 to 15 per cent, as well as net profit which is expected to rise by 15 to 30 per cent from the previous year," said Nardone.

Last year, Hemaraj generated revenue of Bt5.23 billion and earned net profit of Bt1.11 billion. The company posted a net profit of Bt900 million and revenue of Bt2.71 billion in the first half of this year.

Nardone said the firm's gross profit margin had also improved, from 43 per cent last year to 45 per cent at the end of the June. Factories for rent generated the highest gross profit margin at 80 per cent, followed by the industrial-estate business at 40 per cent.

The company will book revenue of Bt1 billion from its first property project, The Park Condominium, during this half-year.

Hemaraj plans to issue debenture stock worth Bt3 billion in October in order to repay short-term debt and invest in its businesses, said the firm's president. The issue will be divided into two tranches - of three years and five years - with an average interest rate of 6 per cent.