We are pleased to report that Hemaraj Land And Development Public Company Limited ended the Year 2007 with broad revenue growth in all operating areas and profitability improving with operating leverage. For the Year 2007, Hemaraj Total Operating Revenue from core businesses was Baht 5,172 million versus Baht 3,775 million in 2006, or a 37 % improvement demonstrating the breadth of the revenue. Total Revenue reported for the Year 2007 was 5,238 million versus Baht 4,079 million, an increase of 28%.
2007 Total Net Income was Baht 1,164 million, a decrease of 2 % in total from the previous year. Net Operating Income, excluding non-operating items was Baht 1,119 million, representing a 15% improvement over the previous year. Operating Gross Margin was 44% while the EBITDA Margin was to 34 %, both levels exceeding average industry margins.
Financially, Hemaraj has maintained a strong balance sheet and cash flexibility to fund our growth plans. Hemaraj reported 2007 Year-end Total Assets of Baht 13,897 million including Baht 575 million in cash. Total Liabilities were Baht 6,279 million with Total Shareholders Equity of Baht 7,618 million. The Net Debt to Equity ratio was 0.75 to 1 times.
For Industrial Estate Land Sales, Hemaraj ended the Year 2007 being # 1 in End-User Market Share with 1,264 rai, 32 new customers and 16 project expansions from existing customers. Hemaraj’s 6 industrial estates of 32,000 rai (12,800 acres) include 367 distinct global customers, 524 contracts, with estimated USD 14 billion of customer investment and comprises a petrochemical cluster as well as the “Detroit of the East” antomotive cluster with over 120 auto customers to date. The year 2007 also witnessed continued petrochemical investments as well as electronics, logistics, metal, plastics and others, despite both uncertain global conditions and local political constraints.
Thailand is benefiting from years of infrastructure investment and industrial cluster development in the automotive, petrochemical, and other industrial sectors, particularly at Hemaraj’s “Detroit of the East” automotive cluster in the Eastern Seaboard.
Hemaraj’s expanded revenue base with significant industrial estate growth, increases in utilities revenue, SME factory rental & sales and measured property contributions provide superior profit opportunities. Hemaraj remains well positioned to increase revenue, to continue to leverage our development skills, thus reducing risks, and to increase predictable returns to shareholders.
Hemaraj seeks to optimize the shareholder values. The Management and the Board of Directors are grateful to our stakeholders for entrusting us with this responsibility.