Hemaraj Land and Development Plc, Thailand's largest private industrial land developer, has raised its land sales target to 1,000 rai (1 rai= 1,600 sq m) from 800 rai, in light of recovery in the automobile industry.

The company's total revenue is also expected to increase by between 60% and 80% to at least 3.56 billion baht this year, said president and chief executive David Nardone.

''We're seeing growth in industrial land sales and returns in other income, including property sales and utilities,'' he said. ''The global economy is heading back to normal and employment is also rebounding, especially in the automotive industry.''

Political unrest has so far had a minimal impact on Hemaraj's business, as most investors are looking at long-term investment, he added.

''The political factor has delayed some decision-making by our clients. Some have had to postpone their trips to sign contracts, but none has yet cancelled contracts,'' he said.

Mr Nardone described the revenue target this year as very achievable if peace soon returns to the country.

''Domestic consumption and exports are still growing. Thailand is well-positioned due to the growth of GDP when compared with neighbouring countries,'' he said.

Hemaraj reported industrial land sales of 565 rai in the first quarter at its annual general meeting of shareholders. The company has secured four land sales contracts for the second quarter but declined to disclose the number of rai.

Last year, the company was affected by the global downturn and local political instability, causing its revenue to drop by 55% to 2.22 billion baht. Net profit slumped by 59% to 599 million from 1.46 billion baht in 2008.

The company will invest between 2.5 billion and 3 billion baht this year. Of that, 1.3 billion baht is for the Gheco-One coal-fired power plant project, a joint venture with Glow Energy. The plant will have a production capacity of 660 megawatts and will start operations in November 2011.

Hemaraj also plans to develop a 1-billion-baht residential project next year in the Eastern Seaboard area aimed at Japanese investors.

Hemaraj has increasingly aimed to diversify from land sales, which used to provide 90% of its revenue. The contribution of land sales fell to 55% last year, during global recession. The rest was generated by utility services, rentals and sales of property including The Park Chidlom condominium.

Utility earnings are forecast to make up about 25% to 30% of Hemaraj's revenue this year, up from 20% in 2008.

Hemaraj earlier issued debentures worth 1.4 billion baht, from an approved limit of 3 billion baht. The company plans to offer another 1.6 billion baht in debentures from May this year. The funds raised will be used to reduce short-term debts and support future investments.

As of Dec 31, Hemaraj reported assets of 13.68 billion baht, liabilities of 5.22 billion and shareholders' equity of 8.458 billion baht. The net debt-to-equity ratio was at 0.51 to 1 time, with cash on hand at 910 million baht.

Hemaraj shares (HEMRAJ) closed yesterday on the Stock Exchange of Thailand at 89 satang, up one satang, in trade worth 4.15 million baht.