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Companies listed on the Market for Alternative Investment (mai), in The Stock Exchange of Thailand (SET) group, reported net profits of THB 1.98 billion (approx. USD 68.27 million), a 54.34 percent year-on-year increase, in the first quarter of 2013, mainly due to effective cost control that helped boost gross profit margin to 23.01 percent.
Chanitr Charnchainarong, mai president, said: “The first quarter’s performance, ending on March 31, 2013, showed that 69 companies, equivalent to 82 percent of the total, made net profits. The companies recorded a 23.01 percent increase in gross profit margin, when compared to the 19.43 percent registered during the same period of 2012, which exhibits their abilities to effectively manage cost of sales and services. As a result, their combined net profits rose to THB 1.98 billion (approx. USD 68.27 million), a 54.34 percent year-on-year rise, although their combined sales shrank 1.43 percent year-on-year to THB 24.86 billion (approx. USD 857.24 million). Sectors that have reported outstanding profit growth are Trading and Manufacturing.”
“Regarding worries over the pressure of the baht appreciation and the new daily minimum wage on company performances in the first quarter, mai-listed firms have not been significantly affected by the stronger baht, as most of them operate their businesses only in the country. Also, many firms have been prepared for the rise in the daily minimum wage, which has a direct impact on their costs,” Chanitr concluded.
One in 4 mai-listed firm has registered net profits for at least 8 consecutive quarters since their securities started trading on the Thai alternative bourse, showing their resilience and ability to deal with various challenges, such as political conflicts, heavy floods and the new daily minimum wage. Business Online pcl (BOL) was the best performer, with 9 consecutive years or 36 quarters of profitability.
At present, there are 86 companies listed on mai, with market capitalization of THB 187.46 billion (approx. USD 6.46 billion). On May 21, 2013, the mai index closed at 489.21 points.
