Mr. Kittiratt Na Ranong, President of The Stock Exchange of Thailand (SET), revealed that as of March 31, 2004, 395 listed companies on the SET and the Market for Alternative Investment (MAI), or 92% of the total 428 listed companies, have submitted their first-quarter financial statements ending March 31, 2004.
“Among the 416 listed companies on the SET, 386 listed companies posted total sales of THB 769,512 million, a 13% increase over the same period last year. Total net profits of THB 107,780 millionfrom 326 companies (84%) marked a 42% jump over last year’s first quarter net profits of THB 76,053 million..
Out of the 12 listed companies on the MAI, nine companies submitted their financial statements showing total sales of THB 1,324 million, a 29% increase over last year. Among those, seven companies saw net profits. The total net profits on the MAI amounted to THB 54 million, an 11% increase over the THB 49 million in profits earned last year,” Mr. Kittiratt said.
353 listed companies in the new eight industry groups the SET has employed since January 1, 2004 (excluding companies listed under “others” and REHABCO sectors) saw total net profits of THB 102,102 million, or 95% of the overall net profits of all listed companies. Summarising in order of greatest net profits, the eight industry groups are as follows:
- Financials Industry Group: consists of 61 listed companies in the banking, finance and securities, and insurance sectors. This industry group saw net profits of THB 30,178 million, an 83% growth over the same period last year. This amount represents 28% of the overall net profits of all listed companies.
- Resources Industry Group: comprised of 12 listed companies in the energy sector and one company in the mining sector. This group’s combined net profits of THB 20,033 million in the first quarter this year was an increase of 9% over the same period last year. This increase is due to a 13% jump in sales in the energy sector as a result of economic expansion as well as a 15% drop in interest rates.
- Property & Construction Industry Group: consists of 53 listed companies in two sectors—the property development sector and the building and furnishing materials sector. This group saw net profits of THB 17,983 million, a 50% surge over last year. This incredible increase was due to a 19% rise in sales in the building and furnishing materials sector, whose net profits made up 78% of the group’s combined net profits. A growing demand for, and rising prices of, construction materials as well as a 20% drop in interest rates when compared to the same period last year are the main factors contributing to the group’s net profit jump.
- Services Industry Group: with 75 listed companies posting a combined net profit of THB 14,441 million, a 29 jump over last year’s first quarter was a result of a 15% sales growth. The transportation sector accounted for 64% of the industry group’s total net profits. This sector’s sales rose 11%, with its gross profits up from 25% to 29% due to the rising demand for services and increased charges for water transportation.
- Technology Industry Group: consists of 38 listed companies in the communication, electronic components, and electrical products and computer sectors. This group’s combine net profits amounted to THB 11,167 million, a respectable 22% increase over the same period last year. The group’s profit increase was a result of a 16% growth in sales and a 13% drop in interest rates. The communication sector, accounted for 81% of the industry group’s overall net profits. The communications sector posted a 35% jump in net profits over the same period last year, due to a 7% increase in sales from a rising number of subscribers, as well as profits from a debt restructuring worth THB 961 million.
- Industrials Industry Group: with 39 listed companies posting a combined net profit of THB 5,998 million, a 6% increase over last year. This rise was attributed to a 7% increase in sales following economic expansion, and a 37% drop in interest rates. The chemicals and plastics sector, with a 6% increase in net profits, accounted for 70% of the group’s overall net profits.
- Agro & Food Industry Group: consists of 41 listed companies in two sectors—agribusiness and food and beverage. This group saw a combined net profit of THB 1,165 million, a one percent drop when compared to last year’s first quarter. The food and beverage sector posted a 24% drop in net profits, with gross profits down from 23% last year to 19% this year. This decline was due to an upward adjustment in raw material prices. The agribusiness, on the other hand, posted a 72% reduction in losses from last year due to a 9% increase in sales, as well as an increase in gross profits to 9% from 7% during the same period last year.
- Consumer Products Industry Group: comprised of 33 listed companies from three sectors. This group posted net profits of THB 1,137 million, a 12% drop from the first quarter last year, as a result of a 1% percent sales drop. Sales revenues of the textiles, clothing and footwear, which account for 69% of the group’s combined net profits, fell 5% in comparison to the same period last year.
“18 companies in the finance and securities sector (excluding leasing companies) posted net profits of THB 3,676 million, a 141% surge up from THB 1,524 million during the same period last year. This was attributed to a 120% increase in net securities-related and other fees, mainly due to a sharp increase in income from commissions and underwriting fees. This sharp increase in fees resulted from a drop in interest rates on deposits which prompted investors to turn to the capital market. Other incomes rose 45% due to improved sales of investment units. Additionally, finance companies saw a 40% jump in interest income and net dividends, mainly from an increase in revenues from leasing. This was attributed to a rise in car sales with a 5% increase in interest rates. Bad loans, however, have jumped 125%.”
“The insurance sector, which consists of 16 insurance companies and two life insurance companies, saw a combined net profit of THB 1,081 million, a 94% increase over the THB 558 million earned during the same period last year. The main factor contributing to this improvement is a 181% increase in revenues on investment in securities, or THB 770 million, as a result of a reform in investment in securities and debt instruments. Insurance premiums rose THB 1,006 million, or 23% over the same period last year.”
“Regarding companies under rehabilitation (REHABCO), as of May 18, 2004, out of 41 companies in the REHABCO group, 28 companies or 68% submitted their financial statements. 15 companies posted net profits, while the remaining 13 companies posted net losses. This sector saw a combined net profit of THB 5,506 million, an enormous 803% jump over the same period last year. This was due to strong sales of THB 13,307 million, a 40% rise over last year, and profits after debt restructuring amounting to THB 3,107 million, an increase of THB 2,822 million.,” the SET President said.
As for the progress of debt restructuring, total debts of the listed companies in this group amounted to THB 202,512 million, a THB 5,944 million decrease from THB 208,456 million at the end of 2003. The following is a summary of events from January 1 to May 18, 2004:
- A total of 14 companies were trading in the REHABCO group. No additional companies were allowed to trade in the group.
- 2 companies were moved to the group—Tuntex Thailand Public Company Limited (TUNTEX) and Bangkok Rubber Public Company Limited (BRC).
- 3 companies were removed from the group, and are trading in their regular sectors—EMC Public Company Limited (EMC), Natural Park Public Company Limited (N-PARK) and Millennium Steel Public Company Limited (MS).
