SET-listed Hemaraj Land and Development Plc (HEMRAJ) plans to maintain its land sales target despite the lacklustre economy.
The industrial estate developer aims to sell 1,400 rai of land at its industrial estates this year, up from 665 rai in 2014.
Hemaraj sold 190 rai in the first quarter or 14% of its full-year target. The company hopes to sell 700 rai in the entire first half.
"The goal is challenging but still achievable as the company is in talks with large companies about big land purchases," said executive vice-president and chief financial officer Krailuck Asawachatroj.
He said the overall performance of the company would improve in the coming quarters with a focus on recurring income from rents, utilities and power.
"Once the sales improve, demand for other services such as utilities, water and waste management in the industrial estates should rise further and that should benefit the company eventually," Mr Krailuck said.
Hemaraj reported first-quarter revenue of 1.54 billion baht, down 45% from the same period of 2014. Revenue from industrial estates fell to 874 million baht from 2.07 billion baht a year earlier.
In contrast, revenue from industrial estate utilities rose by 3% to 429.7 million baht and revenue from rents rose by 13% to 235.1 million baht.
"Revenue from utilities is set to improve, especially in the power business, as scheduled maintenance is about to be complete," Mr Krailuck said.
He declined to comment further on which segments of the company would grow faster, saying only that the company expects 15% sequential growth in the second quarter.
Hemaraj plans to invest up to 3 billion baht in the power business and development of industrial estates this year.
The company concluded the sale of non-core businesses, such as the UM Tower and 253 rai of land on Koh Lan near Pattaya, in April via public bidding.
The proceeds from the sales, which had an asking price of 3.02 billion baht, will be booked in the second quarter.
Investor relations director Paopitaya Smutrakalin said the low first-quarter revenue was due to investors rushing to apply for previous incentives from the Board of Investment that resulted in delayed land purchases.
"Once everything has settled down, more industrial estate land purchases will resume in the second half of the year," he said.
Mr Krailuck said Thailand would remain "a major manufacturing and logistics hub in the region".
HEMRAJ shares closed yesterday on the SET at 4.46 baht, up eight satang, in trade worth 5.69 million baht.