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128327
Thu, 06/17/2010 - 09:11
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http://m.oananews.org//node/128327
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Listed firms likely to earn handsome net profits this year, says SET chief
BANGKOK, June 17 (TNA) – Listed companies on the Stock Exchange of Thailand (SET) are expected to earn combined net profits of Bt600 billion this year, up 42 per cent from Bt400 billion, despite the recent political violence and the European debt crisis, according to SET president Charamporn Jotikasthira.
Normally, he said, the operating performances of listed companies expand in the third and fourth quarters each year in the same direction with the local economy, which is forecast to grow 5-6 per cent this year.
Yanyong Thaicharoen, director of the Research Institute for Capital Market Development, said the index on performance efficiency of listed companies in the first quarter of this year picked up in all categories from that of the same quarter last year.
The return on equity increased to 4.45 per cent from 2.14 per cent and the return on total assets rose to 3.16 per cent from 1.93 per cent.
The debt-to-equity ratio dropped to 1.13 from 1.15 times while the interest payment prospect increased to 9.74 from 4.67 times. It showed most listed firms had a stronger financial position and are in a position to resist the economic volatilities.
“With a high liquidity, listed companies are in a much better position to pay interest and, therefore, absorb the volatilities from the economic crisis, particularly the European debt turmoil which will have an impact
on Thailand’s exports.
“Should exports shrink for 2-3 consecutive quarters, listed companies remain able to repay debts and make profits,” he said.
Mr Yanyong said the high liquidity of listed companies stemmed from the failure by most firms to increase investment. This could be seen in the plunge in investment value of listed firms by 28.68 per cent to Bt7.69 billion in the first quarter of this year from the same quarter the year before.
The companies failing to increase their investment are in the resource, property and construction, and service business sectors (tourism and hotels).
Although the investment value of listed companies had dropped, the number of companies investing more in permanent assets totaled 430, up 78 per cent from the first quarter and 86.32 per cent in the fourth quarter last year.
Regarding capital mobilisation, he said, the listed firms raised capital in the form of capital instruments in the first quarter by Bt10.2 billion, down 14.23 per cent in the same quarter last year.
Still, the value of the capital mobilisation increased by 7.58 per cent from the fourth quarter the year before because large-scale companies were listed on SET, he said. (TNA)
Normally, he said, the operating performances of listed companies expand in the third and fourth quarters each year in the same direction with the local economy, which is forecast to grow 5-6 per cent this year.
Yanyong Thaicharoen, director of the Research Institute for Capital Market Development, said the index on performance efficiency of listed companies in the first quarter of this year picked up in all categories from that of the same quarter last year.
The return on equity increased to 4.45 per cent from 2.14 per cent and the return on total assets rose to 3.16 per cent from 1.93 per cent.
The debt-to-equity ratio dropped to 1.13 from 1.15 times while the interest payment prospect increased to 9.74 from 4.67 times. It showed most listed firms had a stronger financial position and are in a position to resist the economic volatilities.
“With a high liquidity, listed companies are in a much better position to pay interest and, therefore, absorb the volatilities from the economic crisis, particularly the European debt turmoil which will have an impact
on Thailand’s exports.
“Should exports shrink for 2-3 consecutive quarters, listed companies remain able to repay debts and make profits,” he said.
Mr Yanyong said the high liquidity of listed companies stemmed from the failure by most firms to increase investment. This could be seen in the plunge in investment value of listed firms by 28.68 per cent to Bt7.69 billion in the first quarter of this year from the same quarter the year before.
The companies failing to increase their investment are in the resource, property and construction, and service business sectors (tourism and hotels).
Although the investment value of listed companies had dropped, the number of companies investing more in permanent assets totaled 430, up 78 per cent from the first quarter and 86.32 per cent in the fourth quarter last year.
Regarding capital mobilisation, he said, the listed firms raised capital in the form of capital instruments in the first quarter by Bt10.2 billion, down 14.23 per cent in the same quarter last year.
Still, the value of the capital mobilisation increased by 7.58 per cent from the fourth quarter the year before because large-scale companies were listed on SET, he said. (TNA)
