Most listed firms recover quickly from flood
Most companies listed on the Stock Exchange of Thailand have recovered quickly from the flood disaster, reflected by an increase in first-quarter earnings, according to the "SET Note Quarterly Corporate Update".
Listed companies posted combined revenue of Bt2.34 trillion, an increase of 12.69 per cent over the fourth quarter of last year when floods crippled parts of the country. Thanks to lower operating costs, their quarterly earnings rose 193.26 per cent from the previous quarter to Bt201.5 billion.
Still, despite a lower tax rate this year, net profit was 2.18 per cent lower than in the same period last year, showing poor improvement in their operating efficiency.
In the quarter, 391 listed companies or 74.33 per cent enjoyed net profit. A total of 374 companies, or 71.10 per cent, showed an increase in earnings over the previous quarter.
While those in the resources and financial sectors showed the highest increases, those in the rehabilitation process posted a drop in quarterly profits.
According to SET Note, aside from the efficiency issue, listed companies showed improvement on all fronts in the first quarter. Return on equity rose from 1.82 per cent in the previous quarter to 5.16 per cent.
Though the debt-to-equity ratio rose slightly to 1.38 times from 1.32 times in the previous quarter, higher cash flow contributed to financial stability.
In the quarter, listed companies’ investment in permanent assets hit Bt115.3 billion, close to the level in the previous quarter.
However, it increased by 30.43 per cent from the same period last year.
Equity issuance in the quarter reached Bt34.9 billion, rising by 423 per cent from the previous quarter.
Of the total, Bt21.18 billion was raised through initial public offerings and the remaining Bt13.75 billion through public offerings.
