Executive Vice President of the SET, Mr. Suthichai Chitvanich, revealed that 456 out of total 470 listed firms on the SET had submitted their financial statements for the year ending December 31, 2005. In 2004, these companies recorded total net profits worth THB537.39 billion, or a 13% year-on-year (y-o-y) increase over 2004’s THB474.05 billion. Of these 456 firms, 393 companies posted profits, while the remaining 63 firms posted net losses.
Companies in the SET100 index earned THB411.81 billion in net profits, or 76% of the overall net profits of all listed firms. This amount accounted for an 8% y-o-y increase. Total sales grew 24%, costs of sales rose 27%, and the gross margin rate rose 23%.
Companies in the SET50 index earned THB380.91billion in net profits, or 71% of the overall net profits of all listed firms. This amount accounted for an 11% y-o-y increase. Total sales went up by 25%, costs of sales grew by 28%, and the gross margin rate rose 24%.
The top five most profitable companies were PTT Pcl. (PTT), Siam Cement Pcl. (SCC), PTT Exploration and Production Pcl. (PTTEP), Bangkok Bank Pcl. (BBL), and Advanced Info Service Pcl. (ADVANC).
The 426 listed firms in 8 industry groups (excl. companies under rehabilitation or REHABCO) recorded increased sales in every industry and sector, except for the Paper and Printing Materials Sector. These 426 companies saw total net profits of THB465.78 billion, or 87% of the overall net profits of all listed firms.
Summarized in order of greatest net profits, the eight industry groups are as follows:
- Resources Industry Group: (comprised of the 16 companies in the energy and utility sector and one firm in the mining sector). This group’s combined net profits were THB150.4 billion, a y-o-y increase of 29%. The energy & utility sector enjoyed a 39% jump in sales, while the gross profit margin remained at 16%, as a result of greater energy consumption, higher prices of crude oil and its related products.
- Financials Industry Group: (consisted of 68 companies in the banking, finance and securities, and insurance sectors). This industry group saw net profits of THB108.79 billion, a 16% y-o-y growth.
Fourteen companies in the Banking Sector posted a total of THB95.39 billion in net profits, up from the THB82.76 billion in 2004, due to a 22% rise in interest and dividend incomes. Their credit and interest income rose by 4%, while the deposits and loans grew by 5%. The companies had a 20% decrease in the provision for bad and doubtful debts.
Twenty companies in the finance & securities sector (excl. hire-purchase and leasing companies) posted a 42% rise in net profits, from THB4.48 billion to THB6.36 billion. However one securities firm amortized its cost of investments at THB4.46 billion in 2004. Therefore, without this amortization, this sector would post a THB2.58 billion decrease in net profits, or by 29%. The securities industry collectively posted THB2.58 billion in net profits, down from the THB5.17 billion in the previous year. This was due to a 24% decrease in brokerage fee income as trading activities deteriorated.
- Property & Construction Industry Group: (consists of 37 companies in the building & furnishing materials sector and 50 firms in the property development sector). This group saw net profits of THB65.29 billion, down 35% y-o-y. This was due to a 23% rise in costs of sales as the prices of construction materials and energy costs jumped. Margins, especially in the steel industry, were thus narrowed. Nevertheless, their sales recorded a 15% increase.
- Services Industry Group: (consists of 80 companies in 6 sectors) This group posted a combined net profit of THB48.85 billion, down 10% from 2004. This was a result of a 16% increase in costs of sales. However their gross profit margin dropped only marginally, from 23% to 21%. Many of them, particularly in the Transportation and Logistics and Commerce sectors, were affected by higher oil prices.
- Technology Industry Group: (consists of 45 firms in the communication, electronic components, and electrical products and computer sectors) This group’s combined net profits amounted to THB36.19 billion, dropping 20% from 2004. Every sector, except the Electronic Component Sector, had decreased profits. The industry faced fiercer price competition and sluggish economic conditions as oil prices increased and people were more reluctant to spend.
- Industrials Industry Group: (consisted of 51 companies). These firms posted a combined net profit of THB33.35 billion, a 4% decrease from 2004. This drop was mainly in the Automotive and Packaging sectors. The group has also been affected by sluggish economic conditions caused by the oil prices continuing to increase and the deteriorating consumer spending.
- Agro & Food Industry Group: (consists of 22 firms in the food and beverage sector and 20 companies in the agribusiness sector). This group’s net profits of THB16.4 billion were a 60% y-o-y rise. The increase was mainly in the Agribusiness Sector, as they sold added- value products and could export more.
- Consumer Products Industry Group: (consists of 36 companies) This group posted net profits of THB6.51 billion. The Group exhibited a marginal decline in its gross profit margin, from 22% to 20%. Their sales recorded a 3% rise.
Thirty out of the 39 companies under rehabilitation (REHABCO) have submitted financial statements. Eighteen firms enjoyed net profits, while the other 12 suffered net losses. They had a combined net profit of THB71.61 billion, increasing five-fold over THB11.67 in the previous year. The substantial increase was a result of THB47 billion in profits from debt restructuring. If these profits were excluded in both 2004 and 2005, the sector would have recorded THB24.61 billion in net profits in 2005 and THB10.67 billion in net losses in 2004. Thus the 2005 profits would be a three-fold rise over 2004.
The total outstanding debts of the companies in the REHABCO sector, as of December 31, 2005, amounted to THB139.57 billion, a THB97.22 billion or 41% drop from the THB236.79 billion in the previous year.
The following is a summary of the REHABCO companies’ statuses from January 1, 2005 to March 2, 2006:
- 6 companies were moved into the sector— Circuit Electronic Industries Pcl. (CIRKIT), Daidomon Group Pcl. (DAIDO), Thai-Denmark Swine Breeder Pcl. (D-MARK), Hantex Pcl. (HTX), New Plus Knitting Pcl. (NPK), and Kuang Pei San Food Products Pcl. (POMPUI).
- 9 companies were removed from the sector, and are trading in their regular sectors—Nakornthai Strip Mill Pcl. (NSM), K.C. Property Pcl. (KC), T.C.J. Asia Pcl. (TCJ), Power-P Pcl. (POWER), Wyncoast Industrial Park Pcl. (WIN), Bangkok Ranch Pcl. (RANCH), Everland Pcl. (EVER), Inter Far East Engineering Pcl. (IFEC), and Preecha Group Pcl. (PRECHA).
