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News

04
Jun
2018
TICON’s net profit grows 173% in Q1

With bright outlook for second half-year, the company will continue to expand to new businesses and grow its leasehold property spaces in line with its 3-year roadmap.

Bangkok – TICON, the leading developer and total solution provider of industrial properties, announced Q1/2018 net profit of 260.84 million baht, an increase of 173% year on year, while occupancy rate of its leasehold properties has risen to 71%. The company attributed its solid performance to business expansions under its three-year roadmap and effective use of “Total Dimension” strategy. With bright outlook for second half-year, TICON will continue its expansion to new businesses and grow its portfolio of properties for rent to support existing and new investors and tenants with a confidence that it will achieve the vision to become the no. 1 player in ASEAN by year 2020.

Mr. Sopon Racharaksa, President of TICON Industrial Connection Plc. (TICON), revealed, “In Q1/2018 ended March 31, 2018, TICON’s revenues totaled 1,118.77 million baht, representing a growth of 104.6% in comparison to 546.89 million baht in Q1/2017. Net profit soared to 260.84 million baht, an increase of 165 million baht or 173% from the corresponding period last year. The growths were contributed by solid performance of TICON and its subsidiaries in accordance with business targets and the strategic plan announced early this year. Under TICON’s three-year roadmap, we have been driving multidimensional progress of the company with our “Total Dimension” strategy. Designed to strengthen TICON’s capabilities and unleash it potentials, the strategy also paves way for expansion to other relevant businesses, including mixed-used property development, proptech development and management, and recurring-revenue properties in response to the market uptrend from Industry 4.0 policy and improving investor sentiment.”

For TICON, Q1/2018 was characterized by significant growths. Tenancy of leased factory and warehouse spaces grew across ready-built and built-to-suit properties, which sent the overall occupancy rate to 71%. The company also realized income from sales of properties, both undeveloped land and land & building package. Additionally, it also recorded more income from management fees of TICON Freehold & Leasehold Real Estate Investment Trust (TREIT) following the conversion of its property funds into this industrial REIT in late 2017.

“This year marks TICON’s major progress, triggered by acquisition of shares by Frasers Property Ltd. Among many business maneuvers taken recently, we have expanded our properties for rent to several strategic locations nationwide, particularly in the Eastern Economic Corridor (EEC) where we currently manage more than one million square meters of industrial property spaces on more than 1,500 rai of land. TICON is therefore ready to support investors from all industries. We also expanded our tenant base to new prospects, especially those in the targeted S-Curve industries as the new engine for economic growth. Moreover, after merging the property funds, TREIT will demonstrate its full potentials this year as the largest industrial REIT in Thailand. We have also tapped into the potentials of digital economy by establishing TICON Technology Co., Ltd. in our inroads into data center business” Mr. Sopon pointed out.

In Indonesia, TICON continues to expand its development of factories and warehouses for lease by launching the third phase of more than 5,000 square meters after receiving good market response with full occupancy of the existing buildings. TICON currently manages more than 67,000 square meters of industrial property spaces in Indonesia.

“In the second half of 2018, TICON will continue to progress on our three-year roadmap, focusing on expansion to new businesses, expanding development of industrial properties for rent, and reinforcing the key strengths of TICON—expertise and property offerings in strategic locations nationwide, which make it ready to support companies across industries as well as Thai and foreign investors. We are confident that this business roadmap will bring about solid performance and enable us to achieve our vision to become the no.1 player in ASEAN by year 2020,” Mr. Sopon concluded.