- 2011 net profits up on strong revenues, but rising costs weigh on profits
- Return on equity (ROE) at 14.63 pct, down from 15.23 pct in 2010
- Debt to equity ratios (D/E) move higher in 2011 at 1.32 times
- Floods dragged Q4 net profits down year-on-year
Thai listed firms proved resilient against 2011’s uncertainties, with a 5.28 percent growth of 2011 net profits, although their performances were undermined by higher fuel prices and flooding in Thailand, according to The Stock Exchange of Thailand (SET).
In 2011, companies' overall ROE dropped to 14.63 percent, compared with 15.23 percent in 2010, after posting aggregate net earnings of THB 592.10 billion (approx. USD 19.1 billion), while their sales and services revenues rose to THB 8.54 trillion (USD 275 billion), the data in SET Note Quarterly Corporate Update shows.
Debt to equity ratios increased to 1.32 times, up from 1.20 times in 2010; however, companies’ assets turnover ratios increased to 111.63 percent, compared with 104.90 percent in a year earlier.
In the fourth quarter when the devastating floods hit the country, the companies' overall ROE dropped to 1.87 percent, compared with 3.79 percent in the same quarter of last year and 3.72 percent in the third quarter, while debt to equity ratios rose to 1.32 times, up from 1.20 times in a year earlier, and 1.29 in the past quarter.
By industry, all industries posted net profit in 2011 and mainly reporting higher net profit from a year earlier. The increase of 2011 net profit came mainly from Resources and Financials, while three industries reported falling net profits (in descending order): Services, Property & Construction, and Consumer Products. The drop in net profits was due to rising selling costs and an absence of extra gains from foreign exchange and capital gains.
Other indicators used to gauge listed firms' financial health also fell from 2010, with a collective 2011 net profit margin at 6.53 percent, down from 7.48 percent a year ago.
In 2011, companies raised THB 83.32 billion (USD 2.69 billion) through equities, down 7.96 percent from a year earlier. Of that amount, THB 18.46 billion was from initial public offerings of ten newly-listed firms and six property funds, with another THB 64.86 billion via secondary equity offerings.