Thai Listed Companies Exceed THB 140 Billion Profit (Q1/2006)

Listed companies on The Stock Exchange of Thailand (SET) posted Q1/2006 profits of THB145.28 billion (approx. USD3.77 billion), an 8% increase year-on-year (y-o-y). Profits of SET50 and SET100 companies made up 77% and 82% of overall profits respectively. The three industry groups recording the highest net profits were Resources, Financials, and Services. The leading five most profitable companies were PTT, SCC, PTTEP, THAI, and ADVANC.

Ninety-six percent, or 482 of the total 504 listed firms on SET -- including Market for Alternative Investment (mai) --had submitted their financial statements for Q1/2006, SET Executive Vice President Mr. Suthichai Chitvanich said.

“Financial results of listed companies on SET – this time, without mai -- have improved in terms of both net profits and sales, with 446 of the 467companies having submitted their financial statements. Collectively they posted THB145.01 billion in net profits, or a 8% y-o-y increase. Of companies having submitted financial statements, 376 of them (or 84%) were profitable. Total sales from those 446 companies were THB1.24 trillion, up 23% y-o-y,” Mr. Suthichai said.

For companies listed on the mai, 36 of 37 companies have submitted their financial statements (the remaining one operates on a different accounting year). These companies posted THB279 million net profit - a 10% drop y-o-y. Nevertheless, their total sales were recorded at THB5.7 billion, a 14% increase y-o-y.

Companies in the SET100 index earned THB119.81 billion net profit, or 82% of the combined net profit of all listed firms. This amount accounted for a 3% y-o-y increase. Total sales grew 26%, while associated costs rose 30%. The gross margin rate stood at 23%.

Companies in the SET50 index earned THB111.17 billion in net profit, or 77% of the overall net profit of all listed firms. This amount accounted for a 3% y-o-y increase. Total sales went up by 27%, while associated costs grew by 31%.The gross margin rate stood at 24%.

Increased profits from SET100 and SET50 companies were assisted by the stronger baht, quadrupling foreign exchange gains.

The leading five most profitable companies were, respectively, PTT PCL (PTT), Siam Cement PCL (SCC), PTT Exploration and Production PCL (PTTEP), Thai Airways International PCL (THAI) and Advanced Info Service PCL (ADVANC). These companies posted THB23.73 billion, THB9.55 billion, THB7.84 billion, THB6.21 billion, and THB5.29 billion in net profits, respectively.

Except for the Construction Materials Sector, Professional Services Sector, Packaging Sector and companies under rehabilitation, 425 listed firms in 8 industry groups recorded increased sales. These 425 companies saw total net profits of THB136.15 billion, or 94% of the overall net profits of all listed firms.

In order of net profits, the details of eight industry groups are as follows:

Resources Industry Group:

Financials Industry Group: (the banking, finance and securities, and the insurance sectors): This industry group saw net profits of THB30.23 billion, a similar result to the same period last year.
Services Industry Group: (the commerce, media and publishing, healthcare services, tourism and leisure, professional services, and transportation and logistics sectors): This group posted a combined net profit of THB20.78 billion, up 30% y-o-y. This was due to a 12% increase in sales. Profits from the transportation and logistics sector accounted for 64% of the Group’s profits, being derived from an increase in flights, creation of new routes, and exchange rate gains.
Property and Construction Industry Group: (the building and furnishing materials sector and the property development sector): This group saw net profits of THB15.86 billion, down 27% y-o-y. This was due to a 9% rise in sales-related costs, associated with construction materials and energy. Margins narrowed, especially in the steel industry. Further costs came from higher interest rates.
Technology Industry Group: (the communication, electronic components, and electrical products and computer sectors): This group’s combined net profits amounted to THB12.81 billion, a 12% increase y-o-y. The increase was due to higher revenue from sales and services as well as the exchange rate gains.
Industrials Industry Group: (petrochemicals and chemicals, machinery and equipment, packaging, paper and printing materials, and automotive sectors). These firms posted a combined net profit of THB7.55 billion, a 29% rise y-o-y. The gains were mainly due to a 42% rise in sales in the petrochemicals and chemicals sector, together with gains derived from the stronger baht.
Agro and Food Industry Group: (food and beverage plus the agribusiness sectors): This group’s net profits of THB3.09 billion dropped 15% y-o-y, due to a 21% rise in costs associated with higher energy prices.
Consumer Products Industry Group: (household goods, fashion, and personal products and pharmaceuticals sectors): This group posted net profits of THB2.04 billion, soaring 58% y-o-y, due to a 17% increase in sales.

“Twenty-one of the 35 companies under rehabilitation (Rehabco) have submitted financial statements. Fifteen enjoyed net profits. They had a combined net profit of THB8.85 billion, more than a 200% increase y-o-y, given the THB3.03 billion of last year. The substantial increase was a result of a 24% rise in operational revenue, together with exchange rate gains,” Mr. Suthichai said.

In conclusion, total outstanding debts of companies under rehabilitation, as of March 31, 2006, was THB91.76 billion, a 7% decrease y-o-y. The following is a summary of the status of Rehabco companies from January 1 - May 16, 2006:

No companies were moved into the this sector.
Six companies were removed from the sector, and are trading in their regular sectors:
- Everland PCL (EVER)
- Inter Far East Engineering PCL (IFEC)
- Preecha Group PCL (PRECHA)
- Thai Heat Exchange PCL (THECO)
- Thai Nam Plastic PCL (TNPC)
- Thai Wire Products PCL (TWP).

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