Thai listed companies’ combined net profits in Q1/2010 of THB157.00 billion (USD 4.84 billion) were 95.35% more than in Q1/2009 due to increased revenues and effective cost control. In addition, increased revenue for four consecutive quarters indicated Thailand’s continuous economic recovery.
In Q1/2010, listed firms’ revenue was THB 1,778.95 billion (USD 54.86 billion), a 29.92% rise over Q1/2009, while effective cost control resulted in the cost to income ratio to drop to 90.06% from 92.06% of Q1/2009. Thus, operating profit increased to THB 181.03 billion (USD 5.58 billion), up 57.56% over Q1/2009. In addition, decreased interest rates and some large listed companies benefited from exchange rates causing Q1/2010 net profit reached THB 157.00 billion (USD 4.84 billion), 95.35% up y-o-y, according to the SET Note Quarterly Corporate Update for Q1/2010, issued by The Stock Exchange of Thailand (SET)’s Corporate Strategy & Development Division.
Most firms showed improved operations, with 405 companies, or 80.04% of all listed firms, recording net profits, up from 68.02% and 76.85% in Q1/2009 and Q4/2009 respectively.
In terms of operating efficiency, almost all figures improved from Q1/2009, showing the companies’ strength in coping with economic volatility over the 12 months covered. On average return on equity (ROE) more than doubled, to 4.45% from 2.14%, return on assets (ROA) rose to 3.16 % from 1.93%, and interest coverage ratio rose to 9.74 times from 4.67 times. However, the average debt to equity ratio (D/E ratio), at 1.13 times, was relatively unchanged from 1.15 times in Q1/2009.
For an overview of investments, in Q1/2010, companies invested THB 76.91 billion (USD 2.37 billion), down 28.68% from Q1/2009, due mainly to a slowdown of investment in the Resources, Property and Construction, and Services Groups. However, there were 430 companies, or 88.30% of all listed companies, which increased their investments in fixed assets, up from 78.00% and 86.32% in Q1/2009 and Q4/2009 respectively, showing that most firms had continuous investments.
For fundraising in Q1/2010, companies raised THB 10.26 billion (USD 0.32 billion), a 14.23% drop from Q1/2009 partly due to less fundraising in the secondary market. However, fundraising increased by 7.58% over Q4/2009 due to the listing of companies with large market capitalizations.
Turning to quarter-on-quarter changes, listed companies have shown continuous recovery for four consecutive quarters. On average net profit increased 41.54% in Q1/2010 over Q4/2009, and all operating efficiency indicators improved.