Companies On Thai Alternative Bourse Post Growing Sales In July-Sept

• Sales up 7.29 pct in Q3 from a year earlier, but net profits down on rising costs
• Gross profit margins drop slightly, weighed by business expansion and new investment 
• Nine-month sales up 6.89 pct year-on-year

Companies listed on the Market for Alternative Investment (mai), under The Stock Exchange of Thailand (SET) group, reported a 7.29 percent increase in sales to THB 28.75 billion (approx. USD 913 million) in the third quarter of 2013, but combined net profit dropped 27 percent to THB 1.34 billion, hit by rising costs of goods sold.

There were 74 firms, representing 82 percent of total mai-listed companies, showing net profits. However, gross profit margins were down to 20.25 percent from 21.30 percent a year ago due to rising selling costs, while rising expenses, especially amortization and depreciation costs, and interest expense, slashed net profit margins to 4.60 percent, from 6.67 percent.  In addition, some mai-listed companies could not maintain their net profit margins because they were expanding businesses and investment.

However, the services, ICT, and industrial manufacturing sectors could maintain their margins, reflecting their good cost management. Among those sectors, there were four companies whose sales and net profit increased at an accelerated rate over the past 12 months, which are ARIP pcl (ARIP), Lighting & Equipment pcl (L&E), Thai Nondestructive Testing pcl (TNDT), and Thai Plaspac pcl (TPAC),” SET Executive Vice President Chanitr Charnchainarong said. 

For January-September, companies reported aggregated sales of THB 83.81 billion, up 6.89 percent from a year earlier, while net profits were at THB 4.84 billion, down 9.01 percent. However, the nine-month net profit drops to only 4.48 percent if the THB 277 million gain from 2012 flood insurance compensation of Thai Mitsuwa pcl (TMW) were excluded in 2012 net profit.    

In addition, 14 mai-listed companies posted rising sales and net profit from the previous quarter and a year earlier: 2S Metal pcl (2S), Arrow Syndicate pcl  (ARROW), Union Auction pcl (AUCT), Buildersmart pcl (BSM), Cho Thavee Dollasien pcl  (CHO), Halcyon Technology pcl (HTECH), Interlink Communication pcl (ILINK), Lighting & Equipment pcl  (L&E), Project Planning Service pcl (PPS), T S Flour Mill pcl (TMILL), Thai Nondestructive Testing pcl (TNDT), Thai Nakarin Hospital pcl (TNH), Thai Plaspac pcl (TPAC), and Universal Adsorbents & Chemicals pcl (UAC).

Currently, there are 92 mai-listed firms. As of November 19, 2013, the mai index closed at 377.24 points, down 9.25 percent since the start of this year, with a total market capitalization of THB 184.66 billion and daily average trading volume of THB 2.44 billion. For more information of mai listed firms' financial statements, please visit www.mai.or.th and www.settrade.com

mai-listed companies with sales and net profit rises vs. Q2/2013 and year-on-year

(Alphabetically sequenced by symbol)