Bangkok--4 Dec--SET
Operating performance of firms listed on The Stock Exchange of Thailand (SET) in Q3/2009 improved year-on-year in line with the economic recovery. Eighty percent of listed firms (350 out of 436 companies) made net profits. The number of listed firms investing in fixed assets rose over Q2/2009, while liquidity also increased due to a rise in cash inflow from operation. A decrease of overall listed companies’ net profits over Q2/2009 was due to Resources Industry Group, which was affected by temporary factors. Meanwhile, net profits of firms in other industry groups continued to expand from previous quarter.
Excluding companies in Non-Performing Group and Property Funds, Q3/2009’s total net profits of THB113.19 billion (approx. USD3.41 billion) were a 21.07% rise over the same period last year. However, Q3/2009’s net profits dropped by 10.38% over Q2/2009, because the net profits of the Resources Industry Group plummeted by 29.51%. This drop was due to a decrease in both refinery prices and profits from inventory, including reserve for damages at some companies’ oil sites. If we exclude the Resources Group, listed companies’ total net profit in Q3/2009 increased 5.26% over Q2/2009, as shown in SET Note Corporate Update for No.4/2009, issued by The Stock Exchange of Thailand.
In addition, the number of listed companies recording net profits reached 350 (or 80.28% of the 436 firms, up from the Q2/2009 proportion of 75.23%). Of the 350 firms, 268 enjoyed a rise in net profits over Q2/2009.
All eight industry groups recorded net profits for Q3/2009, four with a rise in net profits on a quarter-on-quarter basis: Agro & Food Industry, Financials, Property & Construction, and Services. Property & Construction recorded the highest percentage of net profits increase both on a y-o-y and q-o-q basis, registering rises of 46.07% and 16.23%, respectively.
In terms of operating efficiency (excluding companies in Financials, Non-Performing Group, and Property Funds), return on equity (ROE) rose to 3.31% (y-o-y) vs. the 2.47% of Q3/2008 but a drop (q-o-q) from the 3.82% of Q2/2009. However, if we exclude Resources Group’s firms, ROE will increase both on a y-o-y and q-o-q basis.
In terms of capital structure, the overall debt to equity ratio (D/E ratio) slightly increased to 1.18, which was in the mid-range of 1.02-1.28 recorded during 2004-2008.
Liquidity improved, with net cash outflows at THB6.65 billion (approx. USD0.20 billion), decreasing both q-o-q and y-o-y due to an increase in net cash inflows from operations.
For an overview of investments (excluding Financials, Non-Performing Group, and Property Funds), 343 companies increased their investment in fixed assets, an increase over Q3/2009 and Q2/2009. Investment in fixed assets totaled THB93.48 billion (approx. USD2.82 billion); the industry group with the most fixed assets investment was the Resources Group, accounting for 62.08% of total investment.
For an overview of fundraising, (excluding companies in Non-Performing Group), listed firms raised a total of THB7.23 billion (approx. USD0.22 billion) in Q3/2009, consisting of fundraising in the primary market of THB4.28 billion (approx. USD0.13 billion) from five new listings, namely, Bangkok Life Assurance PCL (BLA), Senadevelopment PCL (SENA), Siam Global House PCL (GLOBAL), Southern Steel PCL (S2), Stars Microelectronics (Thailand) PCL (SMT) and fundraising in the secondary market of THB2.95 billion, most of which was raised by PTT PCL (PTT).
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For more information, please contact S-E-T Call Center 0 2229 2222
Press office, 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