TRIS Rating Co., Ltd. has assigned the company rating of Rojana Industrial Park PLC (Rojana) at "BBB+" with "stable" rating outlook. The rating reflects the company's proven record in industrial property development, its reliable and stable income from electricity and utilities sales, and strong support from its Japanese partner. The rating also takes into consideration the volatility in the industrial property market, the company's diversification into the residential condominium market and its substantial investment plan during the next two years.
The "stable" outlook reflects the expectation that Rojana will be able to maintain its good position in industrial property development. Rojana's power plant is expected to generate stable revenue, which will enable the company to withstand a fluctuation in industrial land sales. In addition, the condominium project is expected to be completed without significant cost overruns. Though Rojana's leverage level will increase during the next two years due to its investment plan, the company is expected to maintain its debt to capitalization ratio lower than 60% in the medium term.
TRIS Rating reported that Rojana is one of the leading industrial property developers in Thailand. It was established in 1988 by the Vinichbutr family and a subsidiary of the Sumitomo Group. The two largest groups currently are the Vinichbutr family and Sumikin Bussan Corporation, which is a subsidiary of Sumitomo Group. Together, the two companies hold almost 50% of the shares in Rojana. Rojana owns and operates two industrial parks in Ayudhya and Rayong provinces, together with one industrial park under developing in Changzhou, China. The total remaining salable area of approximately 1,500 rai in Thailand is sufficient for future development, based on average land sales of 280 rai per year during the last three years. Rojana holds a 41% stake in Rojana Power Co., Ltd. Rojana Power was established in 1996 under the Small Power Producers (SPP) program to sell 90 megawatts (MW) of electricity to EGAT PLC and the remaining to its industrial customers. Rojana Power is expanding to enable it to generate another 43 MW of electricity, which would bring its total capacity to 208 MW in late 2006. Rojana has its own water management system to supply water to industrial users in both industrial parks. Rojana also launched its condominium project, The Madison, in February 2004. The project has received a good response from customers, with 91% of 151 units already sold as of September 2005. Construction is expected to be completed in the first quarter of 2007.
TRIS Rating said that for 2002-2004 operations, Rojana's revenue from industrial land sales accounted for 20% of total revenue while the majority 80% came from electricity and utilities sales, resulting in reliable and stable cash flow. Rojana's competitiveness stems from its proven record in industrial land development, brighter prospects of its industrial park in Ayudhya, and sufficiency of electricity and water supplies. For the first nine months of 2005, Rojana's land sales was 502 rai, increased by 43% compared with the same period last year. Electricity sales for the first nine months of 2005 was Bt2,291 million and its net profit for the first nine months of 2005 was Bt546 million. -- End
Rojana Industrial Park PLC (Rojana) Company Rating: BBB+ Rating Outlook: Stable
The "stable" outlook reflects the expectation that Rojana will be able to maintain its good position in industrial property development. Rojana's power plant is expected to generate stable revenue, which will enable the company to withstand a fluctuation in industrial land sales. In addition, the condominium project is expected to be completed without significant cost overruns. Though Rojana's leverage level will increase during the next two years due to its investment plan, the company is expected to maintain its debt to capitalization ratio lower than 60% in the medium term.
TRIS Rating reported that Rojana is one of the leading industrial property developers in Thailand. It was established in 1988 by the Vinichbutr family and a subsidiary of the Sumitomo Group. The two largest groups currently are the Vinichbutr family and Sumikin Bussan Corporation, which is a subsidiary of Sumitomo Group. Together, the two companies hold almost 50% of the shares in Rojana. Rojana owns and operates two industrial parks in Ayudhya and Rayong provinces, together with one industrial park under developing in Changzhou, China. The total remaining salable area of approximately 1,500 rai in Thailand is sufficient for future development, based on average land sales of 280 rai per year during the last three years. Rojana holds a 41% stake in Rojana Power Co., Ltd. Rojana Power was established in 1996 under the Small Power Producers (SPP) program to sell 90 megawatts (MW) of electricity to EGAT PLC and the remaining to its industrial customers. Rojana Power is expanding to enable it to generate another 43 MW of electricity, which would bring its total capacity to 208 MW in late 2006. Rojana has its own water management system to supply water to industrial users in both industrial parks. Rojana also launched its condominium project, The Madison, in February 2004. The project has received a good response from customers, with 91% of 151 units already sold as of September 2005. Construction is expected to be completed in the first quarter of 2007.
TRIS Rating said that for 2002-2004 operations, Rojana's revenue from industrial land sales accounted for 20% of total revenue while the majority 80% came from electricity and utilities sales, resulting in reliable and stable cash flow. Rojana's competitiveness stems from its proven record in industrial land development, brighter prospects of its industrial park in Ayudhya, and sufficiency of electricity and water supplies. For the first nine months of 2005, Rojana's land sales was 502 rai, increased by 43% compared with the same period last year. Electricity sales for the first nine months of 2005 was Bt2,291 million and its net profit for the first nine months of 2005 was Bt546 million. -- End
Rojana Industrial Park PLC (Rojana) Company Rating: BBB+ Rating Outlook: Stable