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06 Mar 2017 09:44:00
SET News :Thai listed firms' 2016 earnings leap to 5-year high at THB 909 bln
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SET News 14/2017
        March 6, 2017

Thai listed firms' 2016 earnings leap to 5-year high at THB 909 bln

- 2016 net profits worth THB 909 billion, up 30.41 pct from last year, record 
high in 5 years

- Net profit margin rose to 8.95 percent from 6.70 percent a year earlier.

- Lower production costs, recovery of Energy & Utilities, and Petrochemicals and
 Chemicals sectors boost net profits

BANGKOK, March 6, 2017- Companies listed on The Stock Exchange of Thailand (SET)
reported a net profit of THB 909 billion (approx. USD 26 billion) in 2016, a
30.41 percent rise from a year earlier, the highest net profits in five years.
This was underpinned by lower production cost and recovery of Energy &
Utilities, and Petrochemicals and Chemicals sectors.

Aggregate earnings were compiled from 567 listed firms, or 96.10 percent of the 
total 590 companies (including property funds, real estate investment trusts and
infrastructure funds, and excluding non-compliance and non-performing groups),
as of December 31, 2016. There were 461 companies making net profits,
representing 81.31 percent of the total listed companies posting their financial

Falling production costs pushed 2016 gross profit up 2.37 percent to THB 2.50 
trillion. In addition, the jump of net profit was also supported by neither
losses of foreign exchange rates nor impairment, although the overall sales
dropped slightly to THB 10.13 trillion due to decreasing sales in the Energy &
Utilities and Petrochemicals & Chemicals sectors as a result of a 20 percent
fall in crude oil prices in 2016.

Nevertheless, if excluding net profit of companies in Energy & Utilities and 
Petrochemicals & Chemicals sectors, the sales of listed companies could be seen
a 4.15 percent increase in 2016 and net profits could increase by 7.42 percent,
compared to the previous year.

Meanwhile, Thai listed firms' ability to generate profit has been growing with 
their 2016 gross profit margin rising to 24.69 percent from 22.28 percent a year
earlier, and net profit margins also increased to 8.95 percent from 6.70
percent, while their debt-to-equity ratio (excluding Financials industry) was at
 1.19 times, down slightly from 1.20 percent at end-2015.

In quarter 4/2016, the combined net profit was THB 204.85 billion, up 20.15 
percent increase from the same quarter of 2015, but down  slightly by 1.47
percent from the third quarter of 2016.

SET Senior Executive Vice President Santi Kiranand said, "The overall 
performance of the Thai listed companies in 2016 has improved corresponding to
the growing domestic consumption. The business sectors that could benefit most
from the government policies were Property Development, Construction Materials,
Commerce, and Healthcare sectors. Interestingly, companies in 10 target
industrial groups from the "Thailand 4.0" economic policy, the government
economic model, reported healthy performance with a 20 percent net profit
growth, compared to end-2015.

The companies listed on Market for Alternative Investment (mai) also reported 
the 2016 net profit, a 8.73 percent year-on-year drop to THB 3.89 billion,
partly due to extra items booked. As for Q4/2016, they reported a net loss of
THB 472 million, compared to THB 233 million loss in the same period a year

                                         "SET...You Grow, We Groom"