Bangkok--21 May--SET
Listed companies on The Stock Exchange of Thailand (SET) posted their Q1/2007 profits at THB 116,634 million (about USD 3.33 billion) and total sales at THB 1.37 trillion (about USD 39.24 billion). The top three most profitable industry groups were Resources, Financials, and Property and Construction. The top five most profitable firms were PTT PCL (PTT), Siam Cement PCL (SCC), PTT Exploration and Production PCL (PTTEP), Thai Oil PCL (TOP), and Bangkok Bank PCL (BBL).
Most SET and Market for Alternative Investment (mai)-listed firms--511 out of 535--including the property funds, submitted their financial statements for Q1/2007, which ended March 31. During Q1/2007, total net profits were recorded of THB 116,634 million. This represented a drop of THB 30,908 million, or a 21%, from the same period last year.
Among SET-listed companies, 468 out of 491 (including property funds) submitted their Q1/2007 financial statements. They posted THB1.36 trillion in sales, up 5% year-on-year (y-o-y); they produced profits of THB 116,255 million, which was down 21% from the same period in 2006. Of these 468 firms, 361 companies posted profits, while the remaining 107 had net losses. The ratio of companies with net gains to those with losses is 77:23.
For mai-listed companies, 43 out of 44 firms submitted their Q1/2007 financial statements; the single remaining firm uses an accounting period different from the calendar year. These mai firms posted THB 379 million in net profits, an increase of 5%, while their sales rose by 15%, to THB 8,609 million. There were 35 companies with net profits, while the remaining eight companies had net losses, making it an 81:19 ratio.
SET President Ms. Patareeya Benjapolchai noted, “The decline in Q1/2007 profits compared to the same period last year was due to a 7% increase in cost of sales, while sales grew by only 5%, pushing the gross profit margin down from 21% to 20%. Gains from exchange rates were down 55%, due to the strengthening baht. Listed firms also had an 8% increase in interest expenses, as loan interest was adjusted upward. Furthermore, banks and finance companies allocated reserves for doubtful debt as required by the Bank of Thailand. They did this comply with the IAS39 standard.”
SET100 Index companies racked up THB 105,525 million in net profit, or 79% of the overall net profit of all listed firms. Net profit, however, was 14% lower y-o-y. Total sales rose 7%, while the cost of sales grew 10%, and the gross margin rate narrowed to 21%.
SET50 Index firms earned THB 99,977 million in net profit, or 86% of the overall net profit of all listed companies. This represented a 12% decrease y-o-y. Total sales grew 7%, while the cost of sales rose 10%, and the gross margin rate declined to 21%.
The top five most profitable firms, in descending order, were PTT PCL (PTT), Siam Cement PCL (SCC), PTT Exploration and Production PCL (PTTEP), Thai Oil PCL (TOP), and Bangkok Bank PCL (BBL).
The 455 listed firms in the eight industry groups (excluding companies in the non-compliance and non-performing groups) recorded increased sales in nearly every industry except in the technology and consumer products groups. These companies saw total net profit of THB 116,378 million, which accounted 99.8% of the profit for all listed firms.
In descending order of net profitability, the industry groups are as follows:
1. Resources Industry Group (comprising the energy & utilities and mining sectors): This group’s combined net profit was THB 48,148 million, a y-o-y increase of 0.5%. Sales grew 2% due to the rising price of finished oil products. However, cost of sales also increased, narrowing gross profit margins. The strengthening baht resulted in decreased exchange rate gains.
2. Financials Industry Group (consisting of the banking, finance & securities, and insurance sectors): This industry group saw net profit of THB 23,276 million, a 22% y-o-y decline, principally due to setting aside reserves for doubtful debts as required by Bank of Thailand (BOT).
Thirteen companies in the banking sector posted a total of THB 20,456 million in net profit, down 22% y-o-y. The decline was mainly due to the banks’ fulfilling the BOT and IAS39 standard requirement for increased reserves for doubtful debts.
Nineteen companies in the finance and securities sector (excluding hire-purchase and leasing companies) posted THB 938 million in profit, a 48% decrease y-o-y, to meet the new accounting standard in provisions for bad and doubtful debts similar to banks. The insurance sector saw total net profits of THB 1,060 million, down 3% y-o-y.
3. Property and Construction Industry Group (consisting of the property development and construction materials sector, plus property funds): This group saw a net profit of THB 16,984 million, decreasing 6% y-o-y due to sluggishness of the industry. These companies were affected by the domestic economy as well as to slower expenditure for infrastructure projects.
4. Services Industry Group (consisting of commerce, health care services, media & publishing, professional services, tourism & leisure, and transportation & logistics sectors): This group posted a combined net profit of THB 14,989 million, down 27% from Q1/2006. The group had a 7% sales growth. The media and publishing sector saw 12% profit growth because BEC World PCL (BEC) had been increasing its advertising charges. Health care services had an 11% increase in profit as revenue from health services increased. The tourism and leisure sector posted 8% profit growth. Nevertheless, most companies in this group had higher costs of sales and lower exchange rate gains.
5. Industrials Industry Group (consisting of automotive, industrial materials & machinery, packaging, paper & printing materials, and petrochemicals & chemicals sectors): These firms posted a combined net profit of THB 8,057 million, a 25% jump from Q1/2006. The rise was due to a 25% increase in sales, while costs of sales grew at 13%. The group registered lower exchange rate gains.
6. Technology Industry Group (consisting of the information & communication technology, and electronic components sectors): This group’s combined net profits amounted to THB 2,685 million, a drop of 80% y-o-y. However, the electronic components sector saw 45% profit growth as sales rose by 22% and the sector enjoyed gains from exchange rates.
7. Consumer Products Industry Group (consisting of fashion, home & office products, and personal products & pharmaceuticals sectors): This group posted net profits of THB 1,349 million, or a 36% drop from Q1/2006.
8. Agro and Food Industry Group (consisting of food & beverage and agribusiness sectors): This group recorded THB 888 million in net profits, which was a 71% drop from the same period in 2006. These sectors were hit by declining domestic sales prices, deteriorating exports as the baht strengthened, and higher costs of raw materials.
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