Bangkok--20 Aug--SET Listed companies on The Stock Exchange of Thailand (SET) posted their H1/2007 profits at THB 229,403 million (about USD 6.75 billion) and total sales at THB 2.86 trillion (about USD 84.26 billion). About 78% of firms recorded profits. The top three most profitable industry groups were Resources, Property and Construction, and Financials. 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-listed firms--469 out of 492--including the property funds, submitted their financial statements for H1/2007, which ended June 30. During H1/2007, total net profits were recorded of THB 229,403 million. This represented a drop of THB 47,674 million, or 17%, from the same period last year. Among these companies having reported their financial results, 367 companies posted profits, while the remaining 102 had net losses. The ratio of companies with net gains to those with losses is 78:22. In Q2/2007 alone, they posted profits of THB 114,578 million, which was down 10% from the same period in 2006. SET President Ms. Patareeya Benjapolchai noted, “The decline in H1/2007 profits compared to the same period last year was due to increase in cost of sales, while having less profits from exchange rates due to the strengthening baht. 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. Nevertheless they recorded THB 2.86 trillion in sales in H1/2007, or a 5% increase over H1/2006,” Ms. Patareeya said. SET100 Index companies racked up THB 206,330 million in net profit, or 90% of the overall net profit of all listed firms. Net profit, however, was 13% lower than H1/2006. Total sales rose 6%, while the cost of sales grew 8%, and the gross margin rate narrowed from 27% to 25%. SET50 Index firms earned THB 188,650 million in net profit, or 82% of the overall net profit of all listed companies. This represented a 16% decrease over H1/2006. Total sales grew 6%, while the cost of sales rose 8%, and the gross margin rate declined from 27% to 25%. 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). 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 a slight decline in gross profit margin from 21% to 20%. 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 105,452 million, a 8% decrease over H1/2006. Sales grew 5% 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. 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 41,179 million, increasing 29% over H1/2006. 3. Financials Industry Group (consisting of the banking, finance & securities, and insurance sectors): This industry group saw net profit of THB 26,742 million, a 48% decrease over H1/2006 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 20,970 million in net profit, down 54%. 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 1,804 million in profit, a 26% decrease over H1/2006, 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 2,095 million, a 9% increase over H1/2006. 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 23,872 million, down 23% from H1/2006. The group had a 7% sales growth. The media and publishing sector saw 32% profit growth. 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 17,985 million, a 7% increase from H1/2006. The group had a 9% increase in sales and costs of sales, while exchange rate gains were lowered. 6. Technology Industry Group (consisting of the information & communication technology, and electronic components sectors): This group’s combined net profits amounted to THB 11,663 million, a drop of 46% over H1/2006. However, the electronic components sector saw 26% profit growth and enjoyed gains from exchange rates, a contrast from its exchange rate losses in H1/2006. 7. Agro and Food Industry Group (consisting of food & beverage and agribusiness sectors): This group recorded THB 3,873 million in net profits, which was a 44% 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. 8. Consumer Products Industry Group (consisting of fashion, home & office products, and personal products & pharmaceuticals sectors): This group posted net profits of THB 2,328 million, or a 31% drop from H1/2006. 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