SET President Patreeya Benjapolchai revealed that 532 out of 546 companies enlisted on the SET and the Market for Alternative Investment or MAI have submitted their 2008 financial budget reports. They made 313,068 million baht in profits, a drop of 25 per cent or 109,086 million baht compared to total profits the previous year.
Without including the performance of companies in non-compliance and non-performing groups in 2008 in the calculation, the total profit last year was 309,973 million baht, a drop of 27 percent from the previous year.
The top three most profitable businesses were finance, natural resources, and real estate & construction. Patreeya added that the overall drop in profits is the result of the loss in energy operations in the fourth quarter, negative trends in the domestic economy and foreign economies, and the weakening value of the Thai baht. The depreciation of the baht has led to larger burdens for the companies who have foreign debts. Their losses due to the weakening baht are estimated at 15,456 million baht.
Despite the lowered performance of SET and MAI companies, they managed to make 7.3 trillion baht in sales, an increase of 22 per cent compared to the previous year’s sales figure, and 272 companies have announced a relatively high dividend rate at 6.65 for their 2008 dividend payments. (TOC)
Something is wrong. 😉
Where are the suckers who were talking to me about Price Earning Ratio ? “Thais stocks are cheap, buy, buy, buy !”. Where are they ?
Anyway. 2008 is the past. Like a century ago. I know what you are thinking, but you’re wrong : 2008 was NOT DIRECTLY IMPACTED by the current global crisis, at least for the first 3 quarters.
What happened in 2008 ? Two events :
-explosion of costs (and prices) with high inflation, due to the oil and commodities prices crisis (from january to july)… mechanically it increased the turn over, but trimmed the profits.
–Peak Exports (july 2008), demand was strong.
Enough to explain the twisted figures for the whole year : sales up, profits down.
It’s ironic to note that the profits were leaded… by “finance, natural resources, and real estate & construction” companies, the very 3 sectors that are suffering in 2009 ! So it’s easy to forecast how 2009 is going to be…
Anyway, the real game starts this year. 2008 is not interesting, I don’t even know why I’m talking about it. 😉
Because in 2009, we are going to have the double whammy : sales down, and profits… extremely down.