Amata Corp Plc, the country's largest industrial-estate developer, hopes business improves after the Constitution Tribunal disbanded the Thai Rak Thai party for electoral fraud, according to company director Viboon Kromadit.
''More investor confidence means more sales, so I see bright prospects in the second half of the year,'' he said.
The company expects to revise up its sales target by the end of this month as it waits to see if TRT's dissolution will indeed be a turning point in the seemingly endless political standoff.
''After bad news again and again since last year, right now it seems like the first good news,'' he said.
Earlier this year, the company revised down its target to zero growth with land sales of 500 rai, down from 1,500 rai. This would put sales on par with 2006.
Amata reported net profit of 148.7 million baht in the first quarter, nearly 50% down from 280 million baht the previous year. Sales totalled 768 million baht, down from 970 million baht in the same period last year.
Mr Viboon said he was confident that second-quarter sales would double from 130 rai in the first quarter, mainly due to rising demand from Chinese investors.
The company had total sales of 270 rai in Chon Buri's Amata Nakorn, and 225 rai in Rayong's Amata City. Sales would be realised this year.
In addition, revenue from 100 rai out of 377 rai in the Amata Industrial Estate sold to Chinese partner Holley Industrial will be realised in the second quarter.
The Holley group plans to develop an industrial estate for Chinese investors, including factories for rent and land sales. The first phase comprises of 8,000 square metres for 50-60 factories.
Amata recently joined with another Chinese investor, the Thai-Chinese Rayong Industrial Realty Development company. Amata holds a 30% stake, with 70% held by the Chinese partner.
The company will invest up to 200 million baht in a factory-for-rent project in Amata City industrial estate, with the project to be finished in the second half.
Amata shares closed at 16.10 baht, up 5.23%, in trade of 175.4 million baht.
Bangkok Post by Busrin Treerapongpichit
Thursday June 07, 2007