Bangkok--6 Mar--SET
Listed companies on The Stock Exchange of Thailand (SET) and the Market for Alternative Investment (mai) posted their combined 2008 year-end profits at THB 313.07 billion (approx. USD8.61billion) and sales at THB7.38 trillion (approx. USD 203.04 billion), with a combined dividend yield of 6.65%. The Financial Industry Group yielded the highest percentage net profit growth, at 396%, followed by the Agro and Food Industry Group at 67%. The top five most profitable stocks were PTT PCL (PTT), PTT Exploration and Production PCL (PTTEP), Siam Commercial Bank PCL (SCB), Bangkok Bank PCL (BBL) and Siam Cement PCL (SCC)
Listed companies’ operating performance in Q4/2008 recorded a 180% decrease over the same period last year. The Q4/2008 net loss was THB83.40 billion, vs. Q4/2007 net profits of THB104.82 billion. The rapid drop in crude oil prices led to inventory losses in the Resources Industry Group. This sector accounted for 77% of net losses of all listed companies. Exchange rate losses also affected operating performance in Q4/2008.
Almost all SET- and mai-listed firms (532 reporting out of 546 listings, including 21 property funds), have submitted their financial statements for the year ending December 31, 2008. Total net profits were THB313.07 billion, down THB109.09 billion, or 25 %, year-on-year (y-o-y). If we exclude operating performance of Non-compliance (NC) and Non-performing Group (NPG) firms as of end-2008, the companies’ net profits would be THB309.97 billion, down 27% y-o-y. The top three industry groups that generated the highest net profits were Financial, Resources, and Property and Construction, SET President Patareeya Benjapolchai said.
For SET-listed companies specifically, with 481 reporting out of 495 listings, posted THB 310.55 billion profit, down 25% y-o-y. Their total sales were THB7.33 trillion, up by 22% over 2007.
“The decline in profits was due to the decrease in operating performance of Resources Industry Group and an exchange loss of THB15.46 billion, together with the worldwide domestic and global economic recession at the year-end. However, total sales of SET- and mai-listed firms were THB7.38 trillion, up 22% y-o-y. A total of 272 listed firms have announced their dividends for 2008,” added Ms. Patareeya.
Firms in the SET50 Index made THB260.50 billion in net profit, or 83% of the overall net profits (THB313.07 billion) of all listed firms, a 22% decrease y-o-y. Total sales rose 26%, while costs of sales grew 32%, and gross margins narrowed to 16%.
SET100 Index firms earned THB266.09 billion in net profit, or 85% of the overall net profit of all listed firms (THB313.07 billion), a 30% decrease y-o-y. Total sales grew 25%, while costs of sales rose 31%, and gross margins narrowed to 16%.
The two industry groups generating highest profit growth were the Financial, with THB 89.94 billion - a rise of 396%; and the Agro and Food, with THB18.08 billion - an increase of 67%.
The top five most profitable stocks, in descending order of monetary value, were PTT PCL (PTT), PTT Exploration and Production PCL (PTTEP), Siam Commercial Bank (SCB), Bangkok Bank PCL (BBL) and Siam Cement PCL (SCC).
The 463 firms in the eight industry groups (excluding the Non-compliance and Non-performing Groups) recorded decreased net profits in nearly every industry, except for the Financial Industry and Agro and Food Industry Groups. The eight groups saw a total net profit of THB307.45 billion, a 27% decrease y-o-y. Sales increased by 22%, while gross margins narrowed to 16% from 20%.
Looking at operating performance in Q4/2008 of all eight industry groups, only the Financial Group recorded net profits growth, that of THB19.53 billion y-o-y. Other groups recorded drops in net profits. In order of net profitability, the groups are as follows:
1. Financial Industry Group: (consisting of the banking, finance and securities and insurance sectors) This industry group saw net profits of THB89.95 billion, a 396% increase y-o-y.
Twelve companies in the banking sector posted a total of THB83.43 billion in net profits, up THB75.14 billion, or 907% y-o-y, mainly due to the Bank of Thailand requirement to comply with the IAS39 standard on reserves for doubtful debts in 2007. This made companies in the banking sector have significantly high reserves for doubtful accounts. However, in 2008 the reserves for doubtful accounts decreased by 52%, while the companies’ revenues and net dividends increased by 12% y-o-y.
Sixteen companies in the securities sector posted THB14 million in net losses, a 101% decrease from a net profit of THB2.27 billion in 2007. The loss is mainly due to a rise in reserves for doubtful debts to a total of THB1.30 billion, up from last year’s THB 0.26 billion; a decrease in profits from investment of THB0.71 billion, or 72% down from 2007’s THB0.99 billion; and a drop in revenue from the brokerage business, a major revenue source, from THB9.18 billion to THB8.36 billion, a 9% decrease.
Fifteen insurance firms and a life assurance company recorded THB3.51 billion net profit, a 14% decrease over the previous year’s THB4.09 billion. The decline was due to a 46% decrease in revenue and profit from investments, or from THB4.34 billion in 2007 to THB2.33 billion in 2008. Premiums earned increased from THB37.01 billion in 2007 to THB43.27 billion in 2008, or a 17% rise.
2. Resources Industry Group: (consisting of the energy and utilities and mining sectors) This group’s combined net profit was THB89.67 billion, decreasing by 55% y-o-y.
3. Property and Construction Industry Group: (consisting of the property development and construction materials sectors, plus property funds) This group saw net profits of THB42.15billion, decreasing by 39% y-o-y.
4. Technology Industry Group: (consisting of the information and communication technology and electronic components sectors) This group’s combined net profits amounted to THB31.88 billion, decreasing by 25% y-o-y.
5. Services Industry Group: (consisting of commerce, healthcare services, media and publishing, professional services, tourism and leisure, and transportation and logistics sectors) This group posted a combined net profit of THB19.41billion, down 53% from 2007.
6. Agro and Food Industry Group: (consisting of the food and beverage and agribusiness sectors) This group’s net profit was THB18.08 billion, an increase of 67% y-o-y.
7. Industrials Industry Group: (consisting of the automotive, industrial materials and machinery, packaging, paper and printing materials and petrochemicals and chemicals sectors) These firms posted a combined net profit of THB11.34 billion, a 67% decrease from 2007.
8. Consumer Products Industry Group: (consisting of home and office products, fashion, and personal products and pharmaceuticals sectors) This group posted total net profits of THB4.97 billion, a 29% decrease from 2007.
For more information, please contact Public Relations Unit, the Corporate Communications Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Kanokwan Khemmalai Tel: 0-2229-2048 / Panitee Chatpolarak Tel: 0-2229-2792