Floods take toll on listed companies' earnings
Underlying the Thai stock market's attractiveness is the continued increase in listed companies' earnings in 2011, despite the floods which plunged their fourth-quarter earnings by 52.91 per cent from the same period last year.
According to the Stock Exchange of Thailand, 461 companies or 97.88 per cent of all listed companies showed the combined net profits of Bt625.36 billion. Combined revenue hit Bt9.1 trillion, or 22.23 per cent from 2010. Of all, 386 companies showed net profits.
PTT, PTT Exploration and Production, Siam Commercial Bank, PTT Chemical Global and Bangkok Bank are the top five with highest annualised earnings in the year.
In the fourth quarter alone, their combined net profits fell 52.91 per cent on year to Bt71.46 billion, while turnover dropped 13.09 per cent to Bt2.12 trillion.
"The annualised earnings rose only 4.30 per cent on year, due to the sharp drop in fourth-quarter results. Companies witnessed higher pressure on selling cost and had to book huge losses from floods. Still, turnover in the quarter rose 13.09 per cent on year while annualised turnover rose 22.23 per cent. This demonstrated listed companies' potential and short-term impacts on the companies. With good management and efficient selling cost management, they can stage a rebound," said SET President Charamporn Jotikasthira.
