BROKERS still peg the net profit of listed companies at Bt990 billion for this whole year, although their net profit in the second quarter showed signs of coming in lower than the first quarter.
Asia Plus Securities Plc said yesterday that 132 listed companies with 44 per cent of the Stock Exchange of Thailand’s capitalisation have reported their second-quarter results.
Their net profit dropped 14.9 per cent to Bt116 billion from the same quarter of last year and 23.1 per cent from the first quarter of this year.
Excluding the banking sector, their net profit dropped 5.1 per cent to Bt67.4 billion from the same quarter of last year and 26.1 per cent from the first quarter of this year.
“We estimate all listed companies will show net profit of over Bt200 billion in the second quarter of this year, but their net profit will still be lower than the first quarter of this year, which was recorded at Bt285 billion,” Asia Plus Securities said.
However, the securities house continues to be confident that they will achieve a net profit of Bt990 billion this full year, even though the baht will strengthen from 35 per US dollar to 34.
The baht’s appreciation will impact the profit of exporters of products such as agricultural products and processed foods, and electronic parts.
Both industries will show a net profit drop of about 5 per cent due to the baht, but they account for only 4 per cent of market capitalisation.
Trinity Securities Plc also forecasts export firms would suffer from the baht’s climb.
Pattera Dilokrungthirapop, chairwoman of the Association of Securities Companies (Thailand), said the association forecasts the results, especially net profit, of listed companies to rise only 4 per cent.
This is a downward revision from 9 per cent, as most firms showed first-half results lower than predicted.
“The financial results of listed companies this year, which will be lower than early estimates, will impact investment in the market, especially foreign investment, so we believe the SET Index this year will not go over 1,650 points,” she said.
However, she continues to express confidence that listed firms will enjoy financial growth of up to 10 per cent next year.