Bangkok--21 Mar--SET
Investment in fixed assets by Thai listed companies in Q4/2006 amounted to THB 93 billion (approx. USD 2.66 billion) in Q4/2006, an increase of 62% year-on-year (y-o-y), according to The Stock Exchange of Thailand (SET). Overall efficiency declined marginally but was still favorable. Fundraising jumped 70% y-o-y, with 98% coming from stock market activity, and public companies remained well able to meet interest payments.
The corporate update issue of SET Note, the Exchange’s research report, provides an analysis of Thai listed firms’ Q4/2007 activities in three key areas: overall efficiency, investment, and fundraising through the capital market. Overall efficiency of listed firms on the Thai bourse (excluding those in the Financials and Non-Performing groups) remains encouraging, with a slight decrease y-o-y. Returns on equity (ROE) and on capital employed (ROCE) stood at 17.3% and 16.5%, down 1.6% and 0.1%, respectively, on the same quarter last year.
SET Note Corporate Update Q4/2006 reported that listed companies’ overall efficiency declined marginally as their costs increased at a slightly faster rate (15.7%) than sales (15.1%), thus reducing net profit margins. Thai public firms generally recorded low financial risk, with their debt-to-equity and interest coverage ratios being 1.1 and 6.8, respectively.
In Q4/2006, among listed firms, the Resources Industry group invested 155% more in fixed assets y-o-y. Thai public companies received a THB 163 billion cash inflow from operating activities and THB 36 billion from financing activities. Meanwhile, there was a THB 124 billion cash outflow through investment, resulting in a net cash inflow of THB 75 billion.
Of the THB 67 billion raised by listed firms, THB 65 billion came from the stock market, mainly through rights offerings to existing shareholders (THB 30 billion) and private placements (THB 28 billion). There was no public offering in Q4/2006.
For more information on SET Note Corporate Update Q4/2006, please visit www.set.or.th/setresearch/setresearch.html
For more information, please contact the Corporate Communications Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Sarinluck Jitkawong Tel: 0-2229-2037 /
Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797