Bangkok--1 Jun--SET
Investment in fixed assets by Thai listed companies in Q1/2007 was THB 84 billion (approx. USD 2.42 billion), an increase of 0.5% over Q1/2006 according to the Corporate Update issue of SET Note, The Stock Exchange of Thailand (SET)’s research report. Overall efficiency declined marginally but was still favorable compared to the first quarter average for 2000-2005. Fundraising was about THB 10 billion, a 40% decline from Q1/2006, with 97% coming from the secondary market.
The Exchange’s SET Note Corporate Update provides an analysis of Thai listed firms’ Q1/2007 activities in three key areas: overall efficiency, investment and fundraising through SET and the Market for Alternative Investment (mai).
Overall efficiency of listed firms on the Thai bourse (excluding those in the Financials and Non-Performing groups) remains encouraging, with a slight decrease year-on-year (y-o-y) compared to the average efficiency over Q1/2000-Q1/2005. Returns on equity (ROE) and on capital employed (ROCE) stood at 15.5% and 15.7%, down 3.9% and 2.6% respectively, on the same quarter last year.
Listed firms’ efficiency declined marginally as their costs increased at a faster rate (11.2%) than sales (9.3%), thus reducing net profit margins. Thai public firms generally recorded low financial risk, with favorable debt-to-equity and interest coverage ratios of 1.1 and 6.8 respectively.
In Q1/2007, overall investment in fixed assets was THB 84 billion, a 0.5% increase on Q1/2006. While the Resources and Industrials group expanded fixed asset investment, other industry groups eased theirs.
Thai public companies received a THB 147 billion cash inflow from operating activities and THB 9.4 billion from financing activities. Concurrently, there was a THB 122 billion cash outflow through investment, resulting in a net cash inflow of about THB 35 billion.
Thai listed firms raised approximately THB 10 billion in Q1/2007, a 40% decrease from Q1/2006. Of this amount, about THB 9.9 billion came from the secondary market, mainly through rights offerings and the exercise of warrants by existing shareholders (THB 5.1 and THB 4.0 billion respectively).
For more information on SET Note Corporate Update Q1/2007, 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