Bangkok--16 Mar--SET Corporate Communications
Total sales down 2.5 pct to THB 11.6 trillionNet profits fell 5.9 pct to THB 866.13 billion, affected by trade war and Thai economic slowdown.Food & Beverage and Finance & Securities sectors reported earning growth.
Securities listed on The Stock Exchange of Thailand (SET) recorded total sales of THB 11.6 trillion (approx. USD 368.2 billion) in 2019, down 2.5 percent from the previous year. Their net profits dropped by 5.9 percent to THB 866.13 billion, swayed by the US-China trade tension the Thai economic slowdown.
SET Senior Executive Vice President Manpong Senanarong said that 704 SET and mai-listed securities, accounting for 97.1 percent of the total 725 securities (excluding property funds, infrastructure funds, non-compliance or NC, and non-performing groups or NPG), submitted their financial reports, ended December 31, 2019. Among those securities, 537 securities or 74.6 percent posted net profits.
In 2019, SET-listed securities’ combined sales were down 2.5 percent to THB 11.6 trillion, core operating profits decreased 16.5 percent to THB 896.61 billion, and net profits dropped 5.9 percent to THB 866.13 billion, compared to previous year. However, the earnings were better than its first-nine-month results which declined 15.4 percent year-on-year.
SET-listed securities’ operating performance for Q4/2019 was steady compared to Q3/2019 but total sales fell 7.6 percent from a year earlier to THB 2.87 trillion, while core operating profits rose 19.1 percent year-on-year to THB 201.67 billion, and net profits jumped 39.2 percent to THB 198.91 billion. Transportation & Logistics (aviation), and Energy & Utilities sectors posted stronger financial performance due to low base effect from the sharp drop of oil price at end-2018.
“In 2019, Thai listed securities were adversely impacted by the trade dispute, stronger baht, softer petroleum profit margin and weaker demand in petrochemical products, resulting in the lower core operating profit and net profit from the preceding year. Thai listed securities’ core operating profit margin decreased to 7.7 percent in 2019 from 9.0 percent while net profit margin was down slightly to 7.0 percent from 7.3 percent a year earlier,” Manpong said.
Regarding financial position at end-Q4/2019, Thai listed firms’ debt-to-equity ratio (excluding those in Financials industry group) rose slightly to 1.34 times from 1.30 in the previous year.
In 2019, the Food & Beverage sector delivered outstanding financial performance, propelled by market expansion to CLMV countries; and Finance & Securities sector showing better earnings from growth in personal loan, home loan and credit card business.
Securities listed on Market for Alternative Investment (mai) recorded their total sales in 2019 with an increase of 2.6 percent to THB 185.16 billion, and operating profits with a 7.3 percent decrease to THB 6.76 billion. However, the gain from special items in Resources industry group largely resulted in mai-listed companies’ total net profits surged to THB 9.88 billion or 91.9 percent compared to the preceding year.