Thai listed firms record improved efficiency in Q4/2007
The overall efficiency of Thai listed companies in Q4/2007 improved considerably on Q4/2006, particularly in regard to capital deployment and increased returns on equity. Net profit margins rose as firms were less burdened by interest and their cash flows and financial risks were in better condition, according to The Stock Exchange of Thailand (SET)’s Corporate Update report.
SET’s Research and Information Division publishes SET Note Corporate Update, analyzing listed firms’ operational efficiency, investment and funding each quarter. The Q4/2007 report revealed that Thai-listed firms (excluding those in the financials and non-performing groups) demonstrated an increase in return on equity (ROE) from 2.8% in Q4/2006 to 3.1% in Q4/2007.
Return on capital employed (ROCE) improved marginally to 3.3% from 3.2%. Net profit margin rose to 6.8% from 5.1%. Financial risk also fell, as evidenced by the rise in interest coverage ratio to 8 from 5.1
Thai public companies recorded a healthy THB 42 billion net cash inflow from operating activities. Compared to Q4/2006, their investment in fixed assets was 1.7% lower, amounting to THB 88 billion. The resources group was the heaviest investor in fixed assets at THB 41 billion, or a 9.7% rise year-on-year.
In Q4/2007, firms raised about THB 49 billion in funds, a drop of 25.9% on Q4/2006. The financials group was the major fundraiser at about THB 41 billion. Almost 96.5% of total funds raised, or THB 48 billion, was from private placement (PP), warrant holders, rights holders and public offerings. Newly-listed companies raised THB 17 million through initial public offerings (IPOs) in Q4/2007.
For more information on SET Note Corporate Update Q4/2007, please visit www.set.or.th/setresearch/setresearch.html
For more information, please contact the Corporate Communications Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Sarinluck Jitkawong Tel: 0-2229-2037 /
Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797
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