Bualuang paints rosy picture
Bualuang Securities Plc expects its net profit this year to improve from last year on the back of the lower corporate income tax payments and the fact its has paid off its brokerage seat this year.
The prediction is based on the results of the daily average trading volume of Bt20 billion, its managing director Yarnsak Manomaiphiboon told reporters yesterday. Also the brokerage is getting the benefit of a preferred 25-per-cent corporate income tax rate, rather than the standard 30, thanks to privileges extended by the Stock Exchange of Thailand for going public last year. Bualuang Securities last year posted a net profit of Bt137 million. Its net profit in the first three months this year shot up 104 per cent from the same period last year to Bt64.16 million. Yarnsak said the firm was set to expand in all areas. The company aims raise its market share by year-end to 4 per cent from 3.26 per cent at present. To achieve this target, the broker will focus much more on high net worth individual investors and local institutional investors, he said. A collaborative arrangement with Morgan Stanley in research will increase the research paper quality and capture the targeted group, Yarnsak said. At the end of first quarter this year, institutional investor accounted for 24.4 per cent of Bualuang Security's business, up from 9.3 per cent on March 31, 2005. The company expects them to comprise up to 30 per cent by year's end. The tie-up with Morgan Stanley will see Bualuang Securities take six to eight of the companies it is involved with in fund-raising deals on overseas road shows to attract institutional investors, Yarnsak said. Bualuang Securities will participate in investment banking deals worth more than Bt10 billion this year. This year the company is also set to serve as financial advisor for two property-fund issues worth a total of Bt708 billion. In addition, it plans to serve as a financial advisor for two to three initial public offerings worth Bt2.6 billion to Bt3 billion each, as well as for three merger and acquisition deals. He said the company have a 5-per-cent share of the trading volume in the futures trading market by the end of the year and that it plans to add securities borrowing and lending services and over-the-counter derivatives in the fourth quarter.
Siriporn Chanjindamanee The Nation
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