The expectation of greater political certainty following the upcoming general election will boost the fourth-quarter sales of industrial-estate developer Amata Corp, director and senior vice president Viboon Kromdit said yesterday.
Kromdit believes foreign investors are confident that Thailand will return to democracy after the December 23 election. Foreign direct investment, which has dropped during the interim government, will then increase.
With the certainty of a general election, foreign investors have decided to buy land at the industrial estates, he added.
Viboon acknowledged that, unlike this year, land sales last year had dropped significantly and the company had to lower its sales forecast several times. But, he said, despite the expectation of a coalition government, sales next year would not be affected as investors have gained confidence at the prospects of an elected administration. Over the first nine months of the year, Amata's land sales were recorded at 807 rai representing around 50 customers, rising from 399 rai and 33 customers in the same period last year.
Most of this year's new customers are Japanese, followed by Thai companies. The investments are mostly in the automotive industry, steel, metals, plastics and electronics.
Viboon expects 2007 land sales in Amata Nakorn and Amata City to be on target at 1,600-1,700 rai, or Bt5 billion-Bt5.5 billion.
So far in this quarter, Amata has sold an additional 800-900 rai, of which 600 rai was sold to a major customer from China named Holley. Holley's subsidiaries will invest in consumer products and auto-parts manufacturing.
The remaining 200-300 rai were sold to customers from Japan and Germany.
Viboon said an earlier plan to expand operations in Vietnam had not been finalised due to documentation problems.
Amata plans to invest in a new industrial estate of 3,000 rai in Vietnam, near its existing estate.
The company recorded consolidated net profit in the third quarter of Bt390.14 million, against Bt148.02 million in the same period last year. Consolidated nine-month net profit was Bt648.26 million, rising from Bt579.15 million in the same period a year ago.
Amata stock closed yesterday at Bt15.70, up 0.64 per cent.
Source: The Nation by Watcharapong Thongrung
Thursday November 29, 2007