Bangkok--29 Aug--SET
Investment by Thai listed companies increased by 4% y-o-y in Q2/2006, according to The Stock Exchange of Thailand (SET). Total funds raised were worth THB 41.8 billion (approx. USD 1.1 billion), up 77%, while financial risk was been kept low. Overall efficiency was still favorable.
The corporate update issue of SET Note, the Exchange’s research report, analyzed Thai listed companies’ activities in three key areas: investment, overall efficiency, and fund-raising through the capital market, SET Senior Vice President Dr. Sethaput Suthiwart-Narueput, Ph.D, said.
“In Q2/2006, Thai public companies invested THB 84 billion, an increase of THB 2.8 billion or 4% y-o-y, indicating a slow-down in investment in the consumer products, property & construction, services, and technology industry groups. Their investment decreased by 33.8% y-o-y. However, the resources industry group invested heavily, and this group accounted for 48% of total net investment.”
“In Q2/2006 Thai listed firms recorded a THB 88.7 billion net cash flow surplus from operating activities, while they had a THB 184 billion deficit net cash flow from investing and financing activities. The companies had to use their accumulated cash from the previous quarter to meet the dividend payout of THB 88 billion,” Dr. Sethaput added.
Concerning efficiency, the returns on equity (ROE) and returns on capital employed (ROCE) of firms (excluding those in the Financials and Non-Performing groups) were still favorable, although slightly decreased y-o-y. This quarter, their ROE and ROCE stood at 19.8% and 18.9%, decreases of 2.4% and 0.3% respectively. While costs increased by 21.2%, sales grew at 18.6%, leading to a narrower net profit margin.
Thai public companies generally had low financial risk. Their debt-to-equity ratio and interest coverage ratio were recorded at 1.2 and 7.8 respectively.
Listed firms raised a total of THB 41.8 billion, or a 77% increase y-o-y, mostly through initial public offerings (IPOs) of THB 27.8 billion (approx. USD 0.73 billion). The 81% increase in IPO’s y-o-y was due to the listing of Rayong Refinery PCL (RRC). Aside from IPOs in the primary market, THB 76 billion was raised through PP (private placement), and THB 48 billion from exercising warrants, Dr. Sethaput noted.
For more information, please contact the Corporate Communication Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Kulvida Jintakawong Tel: 0-2229-2037
Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797