Stock Exchange Of Thailand Listed Companies’ Profits In 2004 Rose By 37%, Worth Over THB460 Bln. In Total

457 listed companies on the SET and mai posted their 2004 year-end profits at THB464,317 mln. (approx. USD11,608 mln.), accounting for an overall 37% increase. The three top industry groups with the highest net profits were Resources, Financials, and Property & Construction.

The President of The Stock Exchange of Thailand (SET), Mr. Kittiratt Na-Ranong, revealed that 457 listed companies on the SET and the Market for Alternative Investment (mai), or 98% of the total 468 listed companies, had submitted their financial statements to the SET for the year ending December 31, 2004.

“In 2004, these listed companies recorded total net profits worth THB464,317 mln., or a 37% year-on-year increase over the THB337,986 mln. The 434 (out of a total of 444) SET-listed firms that have submitted their financial statements earned a combined THB463,282 mln. in net profits, up 37% year-on-year. Of these firms, 91%, or 396 companies, posted profits while the remaining 9% (38 firms) posted net losses. Their sales were recorded at THB3,751,467 mln., a 24% year-on-year rise.

“For both 9-month periods and Q3/2004, the top three industry groups with highest the net profits were Resources, Financials, and Property & Construction,” Mr. Kittiratt said.

Companies in the SET50 earned THB326,465 mln. in net profits, or 70% of the overall net profits of all listed companies. This amount accounted for a 38% increase over the same period last year, as the quantity and prices of goods being sold rose at a faster rate than total costs. Total sales grew by 24% while the gross margin rate increased 29%. The top five most profitable companies were PTT Pcl. (PTT), Siam Cement Pcl. (SCC), Advanced Info Service Pcl. (ADVANC), Siam Commercial Bank Pcl. (SCB), and the Bangkok Bank Pcl. (BBL).

The 399 listed companies in 8 industry groups saw total net profits of THB434,658 mln., or 94% of the overall net profits of all listed companies. Summarized in order of greatest net profits, the eight industry groups are as follows:

1. Resources Industry Group: (comprised of the 15 listed companies in the energy & utility sector and one firm in the mining sector). This group’s combined net profits of THB114,101 mln. was a year-on-year increase of 62%. This rise was due to a 30% jump in sales for the energy & utility sector as a result of economic expansion, greater energy consumption, higher prices of crude oil and its related products, and a 6% drop in interest expenses.
2. Financials Industry Group: (consisted of 66 listed companies in the banking, finance and securities, and insurance sectors). This industry group saw net profits of THB92,915 mln., a 59% year-on-year growth.

   The Banking Sector posted a total of THB77,317 mln. in net profits, up from the THB39,015 mln. in 2003, due to a 38% decrease in bad and doubtful debts and a 29% rise in interest and dividend incomes.

   On the other hand, 21 companies in the finance & securities sector (excl. hire-purchase and leasing companies) posted a 33% drop in their net profits, from THB13,809 mln. to THB9,277 mln. Overall, securities firms showed losses of THB56 mln., since Asia Plus Securities Pcl. (ASP) amortized its cost of investments beyond Asset Plus Securities’ THB4,460 mln. in fair value. So if this over-amortization were excluded, the finance & securities sector would collectively have posted THB3,263 mln. in net profits.

   The 18 assurance and 2 life insurance companies recorded total net profits of THB3,055 mln., or a 9% increase. Their insurance profits rose by 17%.

3. Property & Construction Industry Group: (consists of 30 listed companies in the building & furnishing materials sector and 39 listed companies in the property development sector. Only 2 companies haven’t submitted their financial statements yet). This group saw net profits of THB79,923 mln., up 18% year-on-year. This was due to a 28% rise in sales resulting from a higher demand in building and furnishing materials domestically as well as the higher prices of the materials, especially steels. Their interest expenses also dropped by 15%.
4. Services Industry Group: (consists of 78 listed companies in 7 sectors) This group posted a combined net profit of THB54,546 mln.. The 45% jump over 2003 was a result of a 20% sales growth. The transportation and logistics sector accounted for 61% of the Group’s total net profits. This sector’s sales rose 23%, with its gross profit margin up from 20% to 24% due to the rising demand for services and increased charges for water transportation.
5. Technology Industry Group: (consists of 44 listed companies in the communication, electronic components, and electrical products & computer sectors) This group’s combined net profits amounted to THB43,519 mln., or a 4% increase. Sales revenues were up by 22% while interest expenses decreased by 7%. The communication sector accounted for 80% of the industry group’s overall net profits.
6. Industrials Industry Group: (consisted of 48 listed companies). These firms post a combined net profit of THB34,155 mln., a 78% increase over 2003. This rise was attributed to a 139% surge in the profits of the petrochemicals and chemicals sector (which accounted for 80% of the group’s overall net profits) as the petrochemical prices rose.
7. Agro & Food Industry Group: (consists of 22 listed companies in the food & beverage sector and 20 companies in the agribusiness sector). This group saw a combined net profit of THB8,672 mln., an 18% drop compared to the same period in 2003. The food and beverage sector posted a 12% drop in net profits, with gross profits down from 20% last year to 18% this year. This decline was due to an upward adjustment in raw material prices. The agribusiness sector posted a 25% decline in profits. Production quantity and prices of large operators in the sector declined as a result of the bird flu and exchange rate losses.
8. Consumer Products Industry Group: (consists of 39 listed companies) This group posted net profits of THB6,827 mln., up 71% over 2003. This was attributed to item transfers by companies in the Fashion Sector. Nevertheless, the Group had 6% and 19% increases in sales and gross profit margins respectively.

The SET President added that 35 out of the 40 companies under rehabilitation (REHABCO) have submitted their financial statements. 25 firms posted net profits, while the other 10 posted net losses. They had a combined net profit of THB28,624 mln., a 5% year-on-year increase from 2003’s THB27,237 mln. This was due to a sales increase of THB80,892 mln., or a 62% rise over 2003. Their profits from debt restructuring amounted to THB21,435 mln., or a 40% decline.

The total outstanding debts of the listed companies in the REHABCO sector, as of December 31, 2004, amounted to THB242,294 mln., a THB49,522 mln. drop from the THB291,816 mln. at end-2003. The following is a summary of the REHABCO companies’ statuses from January 1, 2004 to March 2, 2005:

• A total of 12 companies were trading in the REHABCO group.
• 3 companies were moved into the group—Tuntex Thailand Pcl. (TUNTEX), Bangkok Rubber Pcl. (BRC), and Srithai Food & Beverage Pcl. (SRI).
• 7 companies were removed from the group, and are trading in their regular sectors—EMC Pcl. (EMC), Natural Park Pcl. (N-PARK) and Millennium Steel Pcl. (MS), Raimon Land Pcl. (RAIMON), Christiani & Nielsen (Thai) Pcl. (CNT), Syntec Construction Pcl. (SYNTEC), and Eastern Wire Pcl. (EWC).

“As for companies listed on the mai, 23 out of a total 24 companies have submitted their financial statements. These companies posted THB1,035 mln. in net profits, a 28% rise from the THB809 mln. last year,” Mr. Kittiratt concluded.