ROJNA and Its Main Supporters
ROJNA and Its Main Supporters
ROJNA and Its Main Supporters
31 ส.ค. 2563

2Q20F is such a nightmare for industrial estate groups after lockdown measures, which were imposed to curb the spreading of Covid-19, have weighed on their business operations. The industrial city developers such as WHA Corporation Public Company Limited (WHA)’s 2Q20F core profit shrank 48.5% YoY to 542 million baht, while Amata Corporation Public Company Limited (AMATA)’s net profit plunged 48.3% to 215 million baht, except for Rojana Industrial Park Public Company Limited (ROJNA). 
ROJNA posted an increasing profit of 140.52% YoY in 2Q20 to 1,369 million baht jumped from 569 million baht in 2Q19…How did this happen?
Literally, revenues in every unit of ROJNA have dropped.  Revenue from sales of land decreased 48.15% YoY to 102 million baht, revenue from sales of electricity dropped 4.81% to 2,509 million baht and  service income and rental income declined 29.21% to 166 million baht. 
Cost of land sales was 92 million baht, increasing 25.27% YoY, while cost of electricity sales decreased 5.16% to stand at 2,178 million baht and costs of services and rentals dropped 33.41% to 130 million baht, however, it showed insignificant decline…But how come ROJNA booked profit?  
ROJNA gained an incredible profit from unrealized gain on change of investment of 1,536 million baht, increasing 187.68% from 533 million baht in 2Q19, which mainly benefited from Gulf Energy Development Public Company Limited (GULF) (ROJNA currently owns 19.40 million shares in GULF).
GULF initially priced its IPO of 45 baht/shares with a par value at 5 baht/shares, and later changed the par value to 1 baht/share. As of the second quarter-end, GULF’s share price was 37.75 baht/share, therefore ROJNA has recognized a capital gain from GULF’s stock of 28.75 baht/share, amounted to 557.75 million baht.
Analysts cited that if GULF’s share price increases 1%, ROJNA will gain a profit of 7.8%…it refers that ROJNA is really relying on GULF…!
In addition, ROJNA was also benefited from Fraser Logistics &amp; Commercial Trust (FLT) in Singapore. The Trust value in 2Q20 was 1.12 SGD compared to 0.85 SGD in 1Q20, leading POJNA to recognize a profit of this investment of at least 1,000 million baht.
Well…if there is no support from GULF and FLT, ROJNA would end up like WHA and AMATA. Let’s see what is going to happen in the next quarter… 
However, ROJNA has a dividend yield as high as 9.30% per year…!!! 