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Stock Exchange Of Thailand Listed Companies’ Profits In Q1/2005 Rose By 27%, Worth Over THB136 Bln. In Total

Date 18/05/2005

Listed companies announced a total of THB136.48 bln. (approx. USD3.412 bln.) worth of profits in Q1/2005, accounting for an overall 27% year-on-year increase. The Resources Industry Group ranked highest, with net profits collectively worth THB41.41 bln., followed by the THB31.11 bln. of the Financials Group. The SET50 and SET100 companies had equal profit growth of 26%. The top five stocks with highest net profits are PTT, SCC, BBL, ADVANC, and SCB.

The President of The Stock Exchange of Thailand (SET), Mr. Kittiratt Na-Ranong, announced that 454 listed companies on the SET and the Market for Alternative Investment (mai), or 96% of the total 474 listed companies, had submitted their financial statements to the SET for Q1/2005 ending March 31, 2005.

“As of May 17, 2005, the 430 (out of a total of 448) SET-listed firms accumulated a combined THB1.02 trillion in sales, up 23% year-on-year (YoY). Their net profits were recorded at THB136.26 bln., up 27% from THB107.01 bln. in Q1/2004. Of these firms, 90%, or 388 companies, posted profits.

“As for companies listed on the mai, as of May 17, 2005, 24 out of a total 26 companies had submitted their financial statements. These companies posted THB3.51 bln. in sales, up 26% YoY, and THB226.10 mln. in net profits, a 15% rise from the THB196 mln. There were 19 companies, or a 79% of mai-listed companies having submitted their financial results, that showed profits,” Mr. Kittiratt said.

Companies in the SET50 earned THB103.97 bln. in net profits, or 76% of the overall net profits of all listed companies (THB136.48 bln.). This amount accounted for a 26% increase over the same period last year. Their total sales grew by 27%. Their gross margin profit stood at 29%.

For companies in the SET100, they earned THB112.82 bln. in net profits, or 83% of the overall net profits of all listed companies. This amount accounted for a 26% increase. Their total sales grew by 25%. Their gross margin profit stood at 26%.

As the SET President went on, “The top five most profitable companies were PTT Pcl. (PTT), Siam Cement Pcl. (SCC), the Bangkok Bank Pcl. (BBL), Advanced Info Service Pcl. (ADVANC), and Siam Commercial Bank Pcl. (SCB).

  1. PTT earned a 112% rise in net profits as a result of higher domestic petroleum utilization, plus an upward trend in oil product and petrochemical prices. Furthermore it gained from acquiring a 100% stake in Rayong Refinery Co., Ltd., leading to a 39% jump in sales and THB7.74 bln. from Rayong Refinery’s debt restructuring.
  2. SCC recorded a 36% increase in net profits. The main contributing factor was because almost all of its business groups had improved performances, especially the petrochemical business, resulting in a 31% increase in sales. SCC also gained THB701 mln. worth of profits from sales of its assets.
  3. BBL recorded an 81% jump in net profits as its interest rate income from loans rose by 44% while interest expenses and discounts decreased.
  4. ADVANC had only a 2.2% increase, from 2004, in number of clients. However its marketing and administration expenses were reduced; hence, its net profits rose by 7%.
  5. SCB’s net profits decreased by 28%. Last year it gained THB3.67 bln. profits from investment. This year, nevertheless, its core business had an improved performance, as shown by its THB4.72 bln. in net profits, excluding the gains from investment and bad debts. This amount of profits was 23% higher than the same period last year.
The 396 listed companies in 8 industry groups (excluding companies in the Rehabilitation, or REHABCO, Sector) saw total net profits of THB132.88 bln., or 97% of the overall net profits of all listed companies. Summarized in order of greatest net profits, the eight industry groups are as follows:
  • Resources Industry Group: (comprised of the 16 listed companies in the energy & utility sector and one firm in the mining sector). This group’s combined net profits of THB41.41 bln. was a YoY increase of 67%. 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.
  • Financials Industry Group: (consisting of 65 listed companies in the banking, finance and securities, and insurance sectors). This industry group saw net profits of THB31.11 bln. The 12 commercial banks posted a total of THB25.31 bln. in net profits, down from the THB25.52 bln. in Q1/2004, due to an 18% decrease in non-interest income and a 2,435% rise in bad and doubtful debts. Their interest and dividend incomes increased by 25%. Loans and savings deposits increased only marginally compared to the same period last year.

    The 21 companies in the finance & securities sector (excl. hire-purchase and leasing companies) posted a 14% drop in their net profits, from THB3.85 bln. to THB3.32 bln. Overall, securities firms showed profits of THB1.06 bln., decreasing from Q1/2004 because of the drop in securities trading.

    The 17 assurance and 2 life insurance companies recorded total net profits of THB1.08 bln., or a 4% decrease from THB1.13 bln. in Q1/2004. This was due to a 25% drop in earnings and profits from investment. Meanwhile, their insurance profits rose by 18%.

    1. Property & Construction Industry Group: (consisting of 30 listed companies in the building & furnishing materials sector and 40 listed firms in the property development sector.) This group saw net profits of THB19.33 bln.
    2. Services Industry Group: (consists of 79 companies in 7 sectors). This group posted a combined net profit of THB16.32 bln., with the 11% increase over Q1/2004 being a result of a 14% sales growth. The transportation and logistics sector accounted for 68% of the Group’s total net profits. This sector’s sales rose 7%, which was mainly contributed by the water transportation business as it saw rising demands for services and increased charges.
    3. Technology Industry Group: (consists of 42 firms in the communication, electronic components, and electrical products & computer sectors). This group’s combined net profits amounted to THB11.15 bln. The communication sector accounted for 84% of the industry group’s overall net profits. Their combined profits decreased by 2% YoY due to the rising costs of raw materials in the electronic components sector.
    4. Industrials Industry Group: (consists of 46 companies). These firms posted a combined net profit of THB9.13 bln., a 57% increase over Q1/2004. This rise was attributed to an 80% surge in the profits of the petrochemicals and chemicals sector (which accounted for 83% of the group’s overall net profits) as the petrochemical prices are on an upward trend.
    5. Agro & Food Industry Group: (consists of 22 firms in the food & beverage sector and 19 companies in the agribusiness sector). This group saw a combined net profit of THB3.12 bln., a 142% surge YoY. The food and beverage sector posted a 12% rise in net profits. The agribusiness sector had a 10-fold rise in profits, due to the sales increase of large-scale operators to domestic and overseas markets. Their sales were especially good in value-added products. Moreover, they also gained from exchange rates whilst facing losses in the same period last year.
    6. Consumer Products Industry Group: (consists of 36 listed companies) This group posted net profits of THB1.31 bln., down 3% from Q1/2004. Nevertheless companies in this group posted a 5% rise in net sales. Their gross profit margin remains 19%, similar to Q1/2004.
    “34 out of the 45 REHABCO companies have submitted their financial statements. 25 firms posted net profits, while the other 9 posted net losses. They had a combined net profit of THB3.38 bln., a 187% increase from Q1/2004’s loss of THB3.90 bln. This was due to a sales increase of THB15.61 bln., or a 37% rise over Q1/2004. Their profits from debt restructuring amounted to THB242 mln., or a 39% decline.” the SET President said.

    On the progress of debt restructuring, as of March 31, 2005, the total outstanding debts of the firms in the REHABCO sector amounted to THB230.11 bln., a THB3.02 bln. rise from the THB227.09 bln. in Q1/2004. The following is a summary of the REHABCO companies’ statuses from January 1, 2005 to May 16, 2005:

    • Additional 5 companies were moved into the group—Circuit Electronic Industry Pcl. (CIRKIT), Daidomon Group Pcl. (DAIDO), Thai-Denmark Swine Breeder Pcl. (D-MARK), Hantex Pcl. (HTX), and New Plus Knitting Pcl. (NPK).
    • One company will resume trading in its regular sector on May 20, 2005—Nakornthai Strip Mill Pcl. (NSM).
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