SET Announces an Improvement in Listed-Company 3Q Earnings with a 24% Increase in Profit

The Stock Exchange of Thailand (SET) announced that listed companies in the Thai stock market reported increases in their total sales and net profits in Q3/2020 from the previous quarter after COVID-19 control measures have been relaxed. However, their first nine-month results reported a downturn posed by earlier pressure of the disease spread.

 

SET Senior Executive Vice President Manpong Senanarong said that 697 listed firms, accounting for 94.3 percent of a total of 739 firms (excluding non-compliance or NC, non-performing groups or NPG, property funds, and infrastructure funds) submitted their nine-month and Q3 financial reports, ended September 30, 2020. Of all the submissions, 483 firms, or 69.3 percent recorded net profits.

 

For the third quarter of 2020, listed firms reported their aggregate sales of THB 2.50 trillion (approx. USD 80.6 billion), up 8.6 percent from the previous quarter, with core operating profits rising 46.2 percent to THB 216.83 billion, and net profits increasing 24.4 percent to THB 137.58 billion.

The gross profit margin was 23.5 percent, up from 22.2 percent. The core profit margin rose to 8.7 percent from 6.5 percent, and the net profit margin edged up to 5.5 percent from 4.8 percent. Listed firms delivered better performances over the last quarter in line with Thailand’s economic growth.

According to the National Economic and Social Development Council (NESDC), the real GDP growth rate in Q3/2020 rose 6.5 percent from Q2.

 

“In Q3, almost all sectors of listed firms, particularly in Food & Beverage, Personal Products & Pharmaceuticals, and Packaging, recorded a recovery in their total sales and net profits compared to the performance in Q2, mainly due to the easing coronavirus restrictions. Certain listed firms in other sectors also reported positive growth such as in the Electronic Components sector which have diversified into digital platforms, in cloud storage and data center businesses that are adapted to the new normal, among others. Notably, we need to closely monitor the Financials sector setting more loan loss reserves, as well as the Transportation & Logistics, and Tourism and Leisure sectors, related to transport, tourism and entertainment businesses,” said Manpong.

 

For the first nine months of 2020, listed firms reported their aggregate sales of THB 7.54 trillion, a 15.1 percent decline. Their core operating profits dropped 28.4 percent to THB 494.12 billion, and net profits decreased 51.1 percent to THB 327.43 billion over the same period last year. The gross profit margin was slightly down to 20.5 percent from 21.3 percent. The core operating profit margin was down to 5.4 percent from 8.4 percent, and the net profit margin declined to 3.7 percent from 7.8 percent. Thai listed firms’ financial position at the end of Q3/2020 (excluding Financials industry group) showed their continuous accumulation of debt, causing a rise in debt-to-equity ratio to 1.63 times from 1.35 over the same period last year.

 

Market for Alternative Investment (mai)-listed companies reported their total sales of THB 121.61 billion, down 8.5 percent during the first nine months of this year, with operating profits falling 5.6 percent to THB 4.64 billion and net profits declining 69.4 percent to THB 2.61 billion from the same period last year.