Bangkok--21 Aug--SET
- H1 net profit of SET-listed companies up 5.62 pct y-o-y to THB 517 bln
- Higher cost of sales and production pulled Q2 earnings down.
- Growth of consumption-related sectors remained robust while property development sector showed signs of recovery.
- Rising 2017 GDP growth forecast to be instrumental to H2 performance
Companies listed on The Stock Exchange of Thailand (SET) reported a net profit of THB 516.53 billion (approx. USD 15.19 billion) in the first half of 2017, up 5.62 percent from a year earlier, with the total sales rose 10.09 percent to THB 5.43 trillion and their gross profit was at THB 1.26 trillion. This was underpinned by the improved performance of Energy & Utilities, and Petrochemicals and Chemicals sectors due to the higher price of crude oil which was up 40 percent to USD 51 per barrel compared to the same period last year.
Aggregate earnings were compiled from 572 listed firms, or 94.55 percent of the total 605 companies (including property funds, real estate investment trusts and infrastructure funds, and excluding non-compliance and non-performing groups), in their financial for the first half of 2017, ending June 30. Among the reporting firms, 445 firms, or 77.80 percent, made net profit, similar to last year's. Nevertheless, their gross profit margin dropped to 23.26 percent from 25.06 percent a year earlier.
From June onwards, the total of 159 firms listed on SET and mai announced a combined dividend payment of THB 123.71 billion. Among those firms, 117 firms paid H1 dividends of THB 93.88 billion from cash dividend and stock dividend, rising from THB 88.04 billion in the same period of 2016.
SET Executive Vice President Santi Kiranand said, "In the first half of 2017, the steadyrecovery of the country's economic growth resulted in continuous sales growth. However, the higher production and sales costs adversely pulled Q2 gross profit and net profit of listed companies down. Two sectors with strong growth in sales and net profit were consumer-related sectors and real estate development, the latter having launched more marketing activities".
In the second quarter of 2017, the total sales of listed companies recorded a 7.24 percent increase, to THB 2.70 trillion, when compared to Q2/2016, while gross profit was at THB 606.59 billion. The net profit decreased 9.54 percent from a year earlier to THB 225.67 billionwhile the gross profit margin decreased to 22.43 percent from 25.52 percent. When compared to Q1/2017, sales were stable and net profit dropped by 20.60 percent.
At the end of Q2/2017, the healthy capital structure of listed firms showed the debt-to-equity ratio (excluding those in Financials industry) at 1.16 times, slightly down from 1.21 at end- Q2/2016 and end-2016.
Companies listed on Market for Alternative Investment (mai) reported a combined net profit of THB 1.98 billion in H1/2017, a 21.30 percent decrease from the same period a year earlier, while their net profit in Q2/2017 dropped 43.55 percent when compared to Q2/2016 or a drop of 33.94 percent when compared to Q1/2017.