Company Coverage
WHA Corporation (WHA TB) 2Q26: Results Miss; Margin Pressure To Ease From 2027
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt4.90
Bt6.10
24.49%
Bt6.30
Analyst
Analyst
Panjarat Thaweesriprasert
Highlights
- WHA reported a net profit of Bt659m, down 32.7% yoy, and 56.3% qoq.
- Industrial estate gross margin dropped significantly due to the impact from WHA IER, which we expect to be non-recurring from 2027 onwards.
- We roll over target price to 2027 while maintaining BUY with a lower target price of Bt6.10 (previously Bt6.30).
Analysis
- Earnings declined yoy and qoq. WHA Corporation (WHA) reported a net profit of Bt659m (-32.7% yoy, -56.3% qoq), which was 44% and 25% below our and consensus estimates respectively, mainly due to pressure on the gross margin of its industrial estate business.
- Revenue dropped yoy and qoq. The company reported 2Q26 revenue of Bt2.5b, down 25% yoy and 21% qoq. This was mainly due to lower revenue from the industrial estate business, reflecting lower land transfers of 208 rai, compared with 301 rai in 2Q25 and 298 rai in 1Q26.
- Revenue from Industrial estate business down yoy and qoq. Land sales revenue came in at Bt949m, down 23% yoy and 30% qoq, mainly due to
lower land transfers. Gross margin also declined significantly to 28.3%, from 38.5% in 1Q26 and 55.7% in 2Q25, mainly pressured by the lower margin of WHA Industrial Estate Rayong (WHA IER) , which accounted for approximately 150 rai of the 207 rai of land transferred. However, we expect the impact from WHA IER's lower-margin land transfers to mostly be reflected in 2026 results, with gross margin expected to improve from 2027 onwards.
- 1H26 land sales accounted for 48% of 2026 land sales target. WHA delivered land sales of 1,199 rai in 1H26, achieving around 48% of its fullyear
target. We expect the land sales momentum to continue in 2H26, allowing the company to achieve its Thailand land sales target. However, given the absence of land transfers in Vietnam in 1H26, we expect part of WHA’s 2026 Vietnam land sales target to slip into 2027, reflecting potential
delays in deal closures.
- Resilient revenue growth in other businesses. WHA reported rental business revenue of Bt636m, up 14% yoy, driven by higher leasable area
and occupancy rates. Utilities revenue also increased to Bt856m from Bt799m, supported by higher sales volumes across all water categories.
Revenue from the solar business rose 41% yoy to Bt173m, driven by higher electricity sales .
- Share of profit improved significantly qoq. 2Q26 share of profit turned positive at Bt414m, compared with a loss of Bt139m in 1Q26, supported by the resumption of operations and improved operating performance at Gheco- One .
- Gross margin dropped significantly yoy and qoq. Gross margin dropped to 40.3%, from 50.1% in 1Q26 and 47.3% in 2Q25, mainly dragged down by the industrial estate business. The decline was primarily due to the higher contribution from WHA IER, which carries a lower margin.
Highlights
- WHA reported a net profit of Bt659m, down 32.7% yoy, and 56.3% qoq.
- Industrial estate gross margin dropped significantly due to the impact from WHA IER, which we expect to be non-recurring from 2027 onwards.
- We roll over target price to 2027 while maintaining BUY with a lower target price of Bt6.10 (previously Bt6.30).
Analysis
- Earnings declined yoy and qoq. WHA Corporation (WHA) reported a net profit of Bt659m (-32.7% yoy, -56.3% qoq), which was 44% and 25% below our and consensus estimates respectively, mainly due to pressure on the gross margin of its industrial estate business.
- Revenue dropped yoy and qoq. The company reported 2Q26 revenue of Bt2.5b, down 25% yoy and 21% qoq. This was mainly due to lower revenue from the industrial estate business, reflecting lower land transfers of 208 rai, compared with 301 rai in 2Q25 and 298 rai in 1Q26.
- Revenue from Industrial estate business down yoy and qoq. Land sales revenue came in at Bt949m, down 23% yoy and 30% qoq, mainly due to
lower land transfers. Gross margin also declined significantly to 28.3%, from 38.5% in 1Q26 and 55.7% in 2Q25, mainly pressured by the lower margin of WHA Industrial Estate Rayong (WHA IER) , which accounted for approximately 150 rai of the 207 rai of land transferred. However, we expect the impact from WHA IER's lower-margin land transfers to mostly be reflected in 2026 results, with gross margin expected to improve from 2027 onwards.
- 1H26 land sales accounted for 48% of 2026 land sales target. WHA delivered land sales of 1,199 rai in 1H26, achieving around 48% of its fullyear
target. We expect the land sales momentum to continue in 2H26, allowing the company to achieve its Thailand land sales target. However, given the absence of land transfers in Vietnam in 1H26, we expect part of WHA’s 2026 Vietnam land sales target to slip into 2027, reflecting potential
delays in deal closures.
- Resilient revenue growth in other businesses. WHA reported rental business revenue of Bt636m, up 14% yoy, driven by higher leasable area
and occupancy rates. Utilities revenue also increased to Bt856m from Bt799m, supported by higher sales volumes across all water categories.
Revenue from the solar business rose 41% yoy to Bt173m, driven by higher electricity sales .
- Share of profit improved significantly qoq. 2Q26 share of profit turned positive at Bt414m, compared with a loss of Bt139m in 1Q26, supported by the resumption of operations and improved operating performance at Gheco- One .
- Gross margin dropped significantly yoy and qoq. Gross margin dropped to 40.3%, from 50.1% in 1Q26 and 47.3% in 2Q25, mainly dragged down by the industrial estate business. The decline was primarily due to the higher contribution from WHA IER, which carries a lower margin.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt4.90
Bt6.10
24.49%
Bt6.30
Analyst
Analyst
Panjarat Thaweesriprasert
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