mai-listed companies continue to recover in H2/2020

  • Operating profit up 8.3 pct to THB 6.44 billion
  • Total sales down 7.2 pct to THB 166.88 billion
  • Earnings of mai-listed firms continued to rebound in Q4/2020

Companies listed on Market for Alternative Investment (mai) reported combined sales of THB 166.88 billion (approx. USD 5.42 billion) in 2020, down 7.2 percent from a year earlier. Their core operating profit rose 8.3 percent to THB 6.44 billion in 2020, while aggregate net profit declined 63.0 percent to THB 3.37 billion due to COVID-19 pandemic impact. However, the recovery gathered steam in H2/2020.

mai President Prapan Charoenprawatt said that 169 mai-listed companies, representing 95 percent of the total 177 firms (excluding those in the non-compliance group or NC, those using different accounting period, and those not submitting the report in time), submitted the 2020 financial reports, ended December 31, 2020. A total of 114 companies, accounting for 67 percent of those submitted the yearly earnings, showed net profits.

mai-listed companies’ combined sales decreased to THB 166.88 billion, or 7.2 percent from the previous year. However, the improved cost control contributed to a 7.4 percent drop in cost to THB 130.01 billion, triggering gross profit margin to edge higher to 22.1 percent from 21.9 percent. Core operating profit rose 8.3 percent to THB 6.44 billion, resulting in net profit margin increase to 3.9 percent from 3.3 percent. Combined net profits declined 63.0 percent to THB 3.37 billion due to a one-off gain from investment disposal of THB3.38 billion in 2019 recorded by a firm listed on Resources industry group. If excluding the firm’s one-time gain, the combined net profits would fall at a slower pace of 26.8 percent (not 63.0 percent) and the net profit margin would decrease to a mere 2.0 percent (not 4.8 percent).

“The COVID-19 outbreak affected mai-listed companies across sectors, causing aggregate sales plunge. However, sign of recovery was detected in the second half of 2020 following the ease of COVID-19 containment measures. In addition, listed companies were resilient and efficient in taking actions on cost control and expense management. As a result, their profitability was improved at a certain level. Industry groups with higher profitability comprised Industrials, Resources, Consumer Products, Agro & Food Industry, and Technology,” said Prapan.

Earnings of mai-listed firms continued to rebound in Q4/2020. Combined sales surged 10.5 percent to THB 45.25 billion. Core operating profits jumped 28.5 percent to THB 2.15 billion, while net profits declined 19.2 percent to THB 1.27 billion.

Regarding financial positions of mai-listed companies, the combined assets increased 4.6 percent to THB 281.62 billion from the end of 2019. Funding structure remained strong with debt-to-equity ratio inching up to 1.10 times from 1.03 times at end-2019.

Currently, there are 177 listed companies on mai (as of March 9, 2021). mai Index closed at 398.55 points with market capitalization of THB 283.54 billion and average daily trading value worth THB 2.78 billion.

Source: The Stock Exchange of Thailand