Market for Alternative Investment (mai)-listed companies reported better performances in the third quarter of 2020 compared to the previous quarter, with total sales of THB 40.89 billion (approx. USD 1.32 billion) and net profits of THB 1.61 billion. However, the first nine-month results posted a decline in both total sales and net profits over the same period last year due mainly to realized gain related to divestment of a firm in Resources industry group in the first nine months of 2019. Significantly, Agro & Food Industry and Industrials industry groups delivered higher net profits over the same period a year ago.
mai President Prapan Charoenprawatt said that 167 mai-listed firms, or 95 percent of all the 176 firms (excluding non-compliance or NC, those with different accounting period end dates, and those having late report submission) submitted their first nine-month financial reports, ended September 30, 2020. Out of all the submissions, 110 listed firms, or 66 percent recorded net profits.
mai-listed companies posted improved results in the third quarter of this year, compared to the previous quarter, with their aggregate sales rising 8.6 percent to THB 40.89 billion. Their core operating profits grew 34.4 percent to THB 1.73 billion and net profits rocketed 443.7 percent to THB 1.61 billion. The gross profit margin was slightly lower to 22.0 percent from 22.3 percent, while the core profit margin increased to 4.2 percent from 3.4 percent, with the net profit margin rising to 3.8 percent from 0.8 percent.
For the first nine months of 2020, mai-listed firms' total sales dropped 8.5 percent from a year earlier to THB 121.61 billion. Their core operating profits fell 5.6 percent to THB 4.64 billion and total net profits decreased 69.4 percent to THB 2.61 billion compared to the same period a year ago. A drastic decline in total net profit for the first nine months mainly resulted from realized gain worth THB 3.38 billion from divestment of a particular firm listed in Resources industry group in the January-September period of 2019. Excluding the one-time gain, mai-listed companies' cumulative net profits would drop 32.5 percent on year. The gross profit margin was slightly up to 22.1 percent from 21.8 percent. The core profit margin increased slightly to 3.8 percent from 3.7 percent, while the net profit margin reduced to 2.1 percent from 6.0 percent. Regarding mai-listed firms' financial position ended Q3/2020, their total assets rose 5.5 percent from the end of 2019 to THB 279.91 billion. All in all, the financial structure remained robust, with debt-to-equity ratio recorded at 1.09 times, compared to 1.01 at end-2019.
"The lower sales and net profits of mai-listed firms for the first nine months of 2020 was attributed to sluggish economy and adverse impact caused by COVID-19 pandemic. However, they managed to maintain growth in gross profit margin and core profit margin amid unprecedented challenging conditions. Agro & Food Industry, and Industrials industry groups were the two gainers with net profit,"added Prapan.
As of November 24, 2020, there were 176 mai-listed companies. The mai Index closed at 321.84 points, with a total market capitalization of THB 234.93 billion and average daily trading value of THB 1.22 billion.