Listed firms' 2014 net earnings 'could hit Bt1 trn'
ASIA Plus Securities expects the net profits of listed companies next year could reach nearly Bt1 trillion, providing there is no sharp fall in global oil and commodity prices.
For this year, the research house believes listed firms’ net earnings could achieve growth of 23 per cent to Bt800 billion-Bt900 billion, thanks to the extra profit from the BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF), which could offset the lower profit from the energy sector, Asia Plus’s research manager, Terdsak Taweethiratham, said yesterday.
Listed companies last year recorded net earnings of Bt709.3 billion, Terdsak said.
The outlook for net earnings in the second quarter is that they will reach Bt200 billion, down from Bt240 billion in the first three months due to a slowdown in crude-oil prices and the baht’s appreciation, the research manager said.
The baht’s strength in the early part of the second quarter affected listed companies in the energy and petrochemical sectors, with those companies expected to report losses in relation to both their stock and foreign exchange.
However, the net profits from other sectors – especially commercial banks, which reported second-quarter net earnings of more than Bt56 billion – and the extra profit of more than Bt10 billion from the BTSGIF, could offset the lower profit growth among energy companies, Terdsak added.
“The outlook of net profits for the second quarter might be lower than the first quarter, but the trend of the second half will be better after crude-oil prices returned to exceed $100 per barrel, from $90,” said the Asia Plus analyst.
For the Stock Exchange of Thailand Index this year, Asia Plus still projects 1,570 points based on a price-to-earnings ratio of 15 times, and a SET Index of 1,725 points based on a similar P/E next year.
Pattera Dilokrungthirapop, CEO of DBS Vickers Securities (Thailand) and chairperson of the Association of Securities Companies, said that while the performance of listed companies in the second quarter is expected to drop from the first quarter, the association would monitor the actual results.
If the net profits are lower than expected, it might impact on the SET Index this year. DBS Vickers estimates the index at 1,550-1,600 points by year-end.
