ASEAN KEY DESTINATIONS
Thai alternative bourse’s firms post rising sales, but profits drop in Q2/2013
- Sales of mai-listed firms up 10 pct y-o-y in Q2
- Higher costs and expenses drag net profits down
Companies listed on the Market for Alternative Investment (mai), under The Stock Exchange of Thailand (SET) group, reported a 9.91 percent increase in Q2 sales year-on-year to THB 27.91 billion (USD 930 million), while net profit was THB 964 million (USD 32 million), down 46.74 percent from a year earlier.
The number was aggregated from the 86 of the total 88 mai-listed firms. Of the total, 66 companies, or 77 percent, reported net profits, said mai President Chanitr Charnchainarong.
"Despite an increase in sales in the Q2, net profit dropped in the period as most mai-listed firms faced higher selling costs and expenses in the second quarter, dragging their gross profit margins down to 19.97 percent, from 21.93 percent a year earlier, and net profit margins down to 3.46 percent, from 7.13 percent. In addition, business expansion and increasing investment of some firms resulted in higher costs, especially for interest on loans," Chanitr said
In the first six months, mai-listed firms reported a 4.48 percent increase y-o-y in sales to THB 53.88 billion (approx. USD 1.74 billion), but net earnings dropped 4.32 percent to THB 3.2 billion (USD 103 million). However, Thai Mitsuwa pcl (TMW)’s income from flood insurance compensation in 2012 of THB277 million is a non-operational item; excluding it would cause total net earnings of all mai firms in the first half of 2013 to rise by 4.35 percent y-o-y.
Eleven mai-listed firms reported both growing sales and profits compared with the first quarter and the same period of last year. These firms were Aira Factoring pcl (AF), Asian Phytoceuticals pcl (APCO), Chu Kai pcl (CRANE), Fortune Parts Industry pcl (FPI), Hot Pot pcl (HOTPOT), Kiattana Transport pcl (KIAT), Project Planning Service pcl (PPS), Pylon pcl (PYLON), Qualitech pcl (QLT), Thanasiri Group pcl (THANA), and Thai Plastic pcl (TPAC).
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