Although the current investment status is continually in a lower position due to the lack of interesting products to attract investors, SET still has many good quality products available. Overall operational results of listed companies showed an improvement in profits of 275% over the same period in 2000. 366 listed companies, or 96% of the total of 380 listed companies, had as of 14 August 2001 submitted their financial reports for the six-month period (January - June) ending June 30, 2001. The reports showed that 257 companies, or 70% of the total, had net profits, while 109 companies, or 30% of the total, had net losses.
Operational results of 286 companies in the industry and service sectors, excluding companies in the REHABCO group, improved in 2001 with net profits of 45,405 million baht, or an increase of 41%, against net profits of 32,293 million baht, in 2000. Excluding foreign exchange losses in 2001 of 10,165 million baht, listed companies in the industry and service sectors had combined net profits of 55,570 million baht compared to the same period last year when losses from foreign exchange were 11,595 million baht. Total sales of companies in the industry and service sectors increased 17% from 621,691 million baht in 2000 to 726,837 million baht this year, leading an increase in the gross profit margin of 23% for companies in these sectors.
Twenty four sectors, or 86% of the total industry sector reported combined net profits of 47,143 million baht, increasing 39% from the same period a year earlier in which net profits were 33,810 million baht. The five industry sectors with the highest net profits were energy, building and furnishing materials, communication, commerce and electronic components. These five sectors reported net profits of 27,625 million baht, or 59% of net profits of the industry sectors showing profits. Excluding foreign exchange losses of 4,081 million baht, listed companies showed a 67% rise in net profits from the same period last year.
Only four sectors, or 14% of the total, showed losses. Companies in these four sectors reported net losses of 1,738 million baht, increasing 15% from the same period last year when losses were 1,517 million baht. Industry sectors reporting net losses include chemicals and plastics, entertainment and recreations, machinery and equipment and health care services.
Mr. Vicharat Vichit-Vadakan, President of the SET, said, "With regard to the operational results of Financial Institutions that are listed on the Stock Exchange, 13 commercial banks and the Industrial Finance Corporation of Thailand (IFCT) showed considerable improvement with net profits of 81,412 million baht this year, or an increase of 207%, against net losses of 75,851 million baht for the same period last year. This was due to the fact that in the second quarter of 2001, Bangkok Metropolitan Bank Plc (BMB) and Siam City Bank Plc (SCIB) had extraordinary revenues from transfers of reserves for doubtful debts, which were treated as income. The amounts transferred were used to erase accumulated losses in accordance the Cabinet resolution of 20 March 2001. The transfers amounted to 98,758 million baht. In addition, there was interest income and net dividend income before reserves for doubtful debts of commercial banks, which increased 53%, and loan reserves as well as reserves for doubtful debts decreased greatly by 57%. Excluding the above extraordinary items for the first six months of the year, commercial banks showed net profits of 17,346 million baht which was still better than during the same period last year."
Operational results of companies in the securities sector trended the same as commercial banks. Of the 20 listed financial institutions in the finance and securities sector, 16 companies reported net profits and only four reported losses. In 2001, companies in this sector reported net profits of 2,221 million baht against losses of 315 million baht in 2000. This was due to the companies' ability to earn more profit from interest rate spreads as a result of an increase in debt restructuring and a substantial reduction in reserves for doubtful debts over the same period last year.
"Regarding progress in debt restructuring of listed companies, as of 30 June 2001, 146 submitted progress reports on debt restructuring, with restructured debts totaling 858,394 million baht, or 68% of the total; this represented in increase in restructured debts of 19% from December 2000. Among the companies that had already restructured debts, 27 were companies undergoing restructuring and rehabilitation under the process of the Central Bankruptcy Court.
Any interested person who would like to view the six-month period of financial statements and certain financial ratio which end on June 30, 2001 in Thai version, please visit http:/www.set.or.th/download/conclusionq2_t.xls. For English version, please visit http:/www.set.or.th/download/conclusionq2_e.xls
