Mr. Kittiratt Na-Ranong, President of The Stock Exchange of Thailand (SET), revealed that as of August 15, 2003, 388 listed companies on the SET and the Market for Alternative Investment (MAI), or 96% of 405 listed companies, submitted their 6M financial statements ending June 30, 2003. Overall results show that the companies generally have improved performance. Among the companies which submitted their financial statements, 320 companies (82%), posted net profit. While 68 companies, or 18%, posted net losses. During the first half of this year, listed companies recorded net profits of 137,797 million baht in total accounting for an increase of 21% from 114,137 million baht the same period last year. This was attributed mainly to improved performance in the energy, banking, communication, and building and furnishing materials sectors.
"Out of 380 listed companies on the SET, 314 listed companies or 83% posted net profits while the remaining 66 companies, or 17%, posted net losses. The total profits of 137,738 million baht repesents a 21% jump from 114,091 million baht the same period last year. Of the eight companies on the MAI, six (or 75%) saw net profits, while two saw net losses. The total net profits on the MAI amounted to 60 million baht, a 30% increase from 46 million baht last year," Mr. Kittiratt said.
In the industrial and service sectors, which make up the majority of companies on the SET (excluding financial institutions and companies in the REHABCO sector), 295 listed companies saw improved performance. In the first six months of 2003, they saw net profits of 104,587 million baht, which is an increase of 27% from 82,544 million baht the same period last year. The increase in profit can be attributed to sales boost of 17% from 945,246 to 1,102,836 million baht, profit margins of 21.03%, and lower interest rates that lessened interest payment burdens from 37,109 to 31,610 million baht.
Twenty-seven sectors recording net profits with the top five sectors--energy, communication, building and furnishing materials, property development, and transportation sectors--seeing the highest profits for another consecutive quarter. They saw a combined net profit of 76,065 million baht, which is 73% of the net profits recorded from companies in the industrial and service sectors. There is only one sector recording a loss, that is mining, which posted a net loss of six million baht compared to net profit of 15 million baht last year. This was attributed to a one percent reduction in profit margin to only 12.57%.
As Mr. Kittiratt went on: "The 13 commercial banks and the Industrial Finance Corporation of Thailand saw a combined net profit of 29,850 million baht in the first half of 2003, which is an increase of 135% from 12,708 million baht the same period last year. This was due to a 7.06% increase in interest income and net dividends before reserve for doubtful debts resulting from improved spread margin. This improvement is due to interest rates declining more than proportionately to the loan rates, an increase in non-interest income, and reduction in reserves for bad and doubtful debts."
"Of the 17 companies in finance and securities business, 13 posted a 14% increase in net profits of 4,132 million baht, compared to 3,616 million baht last year. This was attributed to a 10% increase in interest and dividend income plus a 34% increase in non-interst income. Nevertheless, companies in these sectors increased their reserves for bad and doubtful debts by 83% so as to comply with the Bank of Thailand's regulations.
"Forty-five or 83% of the listed companies in the REHABCO sector (54 companies) already submitted their financial statements. Twenty-three companies saw net profits, while 22 saw net losses. The net losses totaled 1,839 million baht, which declined from last year's net profit of 14,286 million baht or 113% decrease. If the profits from debt restructuring were excluded, they would have posted a total loss of 2,591 million baht," the SET President.
Regarding companies under rehabilitation, the Bankruptcy Court ordered one more company to go under rehabilitation, hence adding the number of companies under the Plan to 33. Moreover, the Court also revoked its orders for two other companies. There are five companies in the REHABCO sector that have resumed trading again in the first half of 2003. The total number of REHABCO companies that have become active were 19 or 35% of all REHABCO companies.
