Hemaraj Advances on $1.3 Billion Investment Plan: Bangkok MoverAnuchit Nguyen
Hemaraj Land & Development Pcl, Thailand’s biggest developer of industrial land by market value, gained the most in a month in Bangkok share trading after announcing a $1.3 billion investment plan.
Hemaraj jumped 6 percent to 3.86 baht at the close in Bangkok, the biggest gain since Jan. 9. The benchmark SET Index was little changed.
Bangkok-based Hemaraj, which develops manufacturing facilities for companies including Ford Motor Co. and Caterpillar Inc., will boost investment in industrial land, utilities, power plants and property development over the next five years as demand grows, Chief Executive Officer David Nardone said in a statement yesterday. Applications for investment incentives in Thailand more than doubled to a record 1.46 trillion baht ($49 billion) last year, the government said on Jan. 10.
“The increase in foreign direct investment will boost demand for Hemaraj’s land,” Surachai Pramualcharoenkit, an analyst at Trinity Securities Co., wrote in a report today. “The rising number of manufacturers at its industrial parks will also boost revenue from sales of electricity, water and other utilities.”
Hemaraj may see “outstanding” earnings growth over the next two to three years, Surachai wrote.
The company expects revenue from land sales to grow at a “double-digit” pace to 640 acres (259 hectares) in 2013, according to Nardone. Revenue from its utility business will climb 20 percent this year to 2 billion baht, he said.
-- Editors: Matthew Oakley, Richard Frost
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