In Q1/2011, Thai listed companies’ total net profits rose by 30.78% over Q1/2010, due to more efficient operating cost management. For listed firms as a whole, investing in one’s own subsidiaries and affiliated companies was the most popular usage of funds, including firms with large-capitalizations, which tended to raise funds for their own expansion.
In Q1/2011, revenue from sales and service reached THB2,099.25 billion (approx.USD69.07 billion), a 7.00% rise, while operating cost increased at a lower rate, helping push operating profits to THB214.14 billion (approx. USD7.04 billion), a 26.29% rise quarter-on-quarter (q-o-q). Net profits reached THB204.92 billion (approx. USD6.74 billion), a 37.32% surge q-o-q, as reported in The Stock Exchange of Thailand (SET) Note Quarterly Corporate Update.
Listed companies’ performance overall improved, with 428 firms recorded net profits, accounting for 84.42% of total listed companies, up from 81.94% and 80.61% in Q4/2010 and Q1/2010, respectively. Meanwhile, of all listed firms, as many as 302, enjoyed higher net profits than in the previous quarter.
In Q1/2011, most industries’ profits came from operations with higher net profits than in the previous quarter, particularly in industries involving in commodity and agricultural products.
Company performance indicators in Q1/2011 improved both on a q-o-q and year-on-year (y-o-y) basis, which was in line with increasing net profits. Meanwhile, company financial status remained stable, with high debt repayment liquidity level even though lending interest rates have risen.
Financial ratio |
Q1/2010 |
Q4/2010 |
Q1/2011 |
|
Operating profit ratio (%) |
10.16 |
8.64 |
10.20 |
|
Net profit margin (%) |
8.27 |
7.07 |
9.18 |
|
Return on equity (%) |
4.42 |
3.86 |
5.27 |
|
Debt to equity ratio (times) |
1.13 |
1.17 |
1.26 |
|
In Q1/2011, more companies invested in fixed assets than in Q4/2010, but with lower investment value. Four hundred seventy firms, or 87.04% of all listed companies, raised their investments in fixed assets in Q1/2011, up from 85.95% in the previous quarter,
In Q1/2011, firms invested THB85.87 billion (approx. USD2.82 billion), in fixed assets, a 35.22% drop q-o-q.
In Q1/2011, THB42.17 billion (approx. USD1.38 billion) was raised through equity, up from the previous quarter due to initial public offerings (IPOs) and seasonal equity offerings (SEOs) of large listed firms. One firm and two property funds made IPOs - Vintage Engineering PCL (VTE) and Dusit Thani Freehold and Leasehold Property Fund (DTCPF) and Trinity Property Fund (TNPF), respectively. THB37.34 billion (approx. USD1.22 billion) in new funds came from SEOs in Q1/2011, doubling from the previous quarter.
However, in Q1/2011, there were signs of a slow-down in revenue. Every industry’s sales and service revenues dipped or expanded at a lower rate from the previous quarter, except for industrials, resources, and agricultural businesses, which posted increasing revenue, due to rising prices of commodity and agricultural products.