The Stock Exchange of Thailand (SET) President, Mr. Kittiratt Na-Ranong, revealed that as of May 19, 2003, 372 listed companies on the SET and the Market for Alternative Investment (MAI), or 93% of 399 listed companies, submitted their financial statements for 2003, ending March 31, 2003. He added that 306 companies, or 82%, of listed companies that submitted their financial statements posted net profits totaling 74,033 million baht. While 66 companies, or 18%, posted net losses of 45,426 million baht
The President stated "300 out of 365 (82%) listed companies on the SET posted net profits while the remaining 18% posted net losses. Total net profits were recorded at 73,976 million baht representing a 63% increase from the same period last year, which recorded 45,373 million baht.
For the MAI listed companies, five out of seven posted net profits of 19 million baht, accounting for a decrease of 65% from 54 million baht the same period 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), 290 listed of them saw improved performance. In Q1 2003, they enjoyed net profits of 56,634 million baht, which is an increase of 68%, compared to Q1 last year, which had profits of 33,677 million baht. The increase in revenue can be attributed to a 21% sales boost, from 451,972 million baht to 548,527 million baht, with a 22% gross profit margin. Lower interest rates also lessened the interest rate burden of listed companies from 18,415 million baht to 16,336 million baht. Their foreign exchange gain this quarter was recorded at 1,585 million baht, while in Q1 last year it was 6,598 million baht.
When categorized by sectors, 27 of them posted net profits with the first top five gainers in energy, commerce, building and furnishing materials, property development, and transportation sectors. They saw a combined net profit of 41,595 million baht, which is 73% of the net profit of all companies. The agricultural sector posted net loss of 680 million baht, compared to 1,371 million baht net profits in Q1 last year, resulting from a reduced gross profit margin rate that fell from 14% to only 7%.
Mr. Kittiratt went on to say that: "The 13 commercial banks and the Industrial Finance Corporation of Thailand saw a combined net profit of 13,832 million baht, an increase of 46% from the previous year, which saw a net profit of 9,477 million baht. Their improved performance can be attributed to a 14% increase in interest and dividend income before bad debt provision (supported by better spread margin management and a proportionately decrease in saving deposit rates over the loan rates), a 7% increase in non-interest income, and 23% decrease in provision for doubtful and bad debts."
"Fourteen out of 18 companies posted a combined net profit of 1,380 million baht, representing a decline from the previous year's net profit of 1,720 million baht or by 20%. Nevertheless, their non-interest income increased 24% while the provision for doubtful and bad debts decreased by 26%. This sector' net profits deteriorated because the companies' operating only securities business posted net loss of 54 million baht, compared to 345 million baht of net profit last year. This is a result of reduced daily trading turnover on the Exchange, hence negatively affecting income from the securities business. Nevertheless, when taking into account the finance business alone, finance companies posted a 4% increase in net profits compared to the same period last year.
In regards to non-performing loan (NPL), as of March 31, 2003, commercial banks and finance companies had a combined NPL amounting to 855,990 million baht or 19.20% of total loans and accrued interest income. This is slight decrease from last year's 845,514 million baht (19.28% of total loans and accrued interest income).
"Thirty-four out of 53 listed companies in the REHABCO sector submitted their Q1 2003 financial statements. Nineteen companies saw net profit, while 15 saw net losses. The net profit totaled 1,539 million baht, which is an increase from the previous year's net loss of 254 million baht, accounting for a 707% improvement. This is mainly attributed to a 9,052 million baht sales increase, from 24,354 million baht to 33,406 million baht. Besides, they also enjoyed 3,088 million baht of profit from debt restructuring, an increase of 367% from 2,427 million baht the previous year. Interest rate expenses of companies in this sector also declined by 113 million baht.
As of March 31, 2003, 148 companies reported advancements in their debt restructuring processes. The companies have successfully restructured 1.05 trillion baht worth of debt or 95% out of 1.1 trillion baht. Of all the restructured debts, 41 companies had their debt restructured by the Central Bankruptcy Court, with a total debt amount of B522,083 million or half of the total debt. Fifty-one percent of the debts restructured is being done through extending payment deadlines, 17% is through turning debt into capital/debentures, 6% is through capital increase, and the remaining 26% is through lowering principal and interest payments, sales or transfer of assets, etc," the SET President concluded.
