Hemaraj Land and Development Plc (HEMRAJ), the SET-listed industrial land and property developer, posted almost flat net profit in the third quarter despite a sales surge of 31% year-on-year.
President and chief executive David Nardone said net profit edged up by only 1% year-on-year to 625 million baht on revenue of 1.1 billion baht from the sale of 789 rai.
In the first nine months of this year, net profit was 2.08 billion baht, up by 30% year-on-year, on revenue of 6.32 billion, up by 36%.
"The increase in net profit for the first nine months was due to revenue growth from industrial estates, utilities and rental properties," Mr Nardone said in a statement.
Revenue from industrial estate land sales rose by 37% year-on-year, from utilities 14% and from ready-built factory rentals 50%.
Land sales totalled 1,978 rai in the January-September period, with 82 contracts from 50 new customers and 32 expansion projects.
Hemaraj has revised up its full-year land sales target to 2,300 rai from the original forecast of 1,600 rai, said Mr Nardone.
Gheco-One, a 660-megawatt power plant 35% owned by Hemaraj and a 126-MW small power producer co-owned with Gulf JP Co are projected to increase contributions to profit going forward.
"Hemaraj investments are progressing, with balanced growth in our core business areas _ industrial estates, utilities, power, ready-built factories, logistics parks and properties. This is improving the predictability of revenue and earnings," said Mr Nardone.
As of Sept 30, Hemaraj's asset value was 29.6 billion baht with liabilities of 17.1 billion. With total shareholders' equity of 12.4 billion baht, its net-debt-to-equity ratio was 1.27:1.
Shares of HEMRAJ closed unchanged yesterday on the SET at 3.36 baht in trade worth 91.6 million baht.