Net profits for listed companies on the Stock Exchange of Thailand rose by 9.7% year-on-year in the first half of 2024, reaching 519 billion baht, spurred by a 6.3% increase in sales to 8.96 trillion baht, thanks to a robust recovery in tourism and rising oil prices.
SET president Pakorn Peetathawatchai noted that listed companies experienced substantial growth in both revenue and net income during the first six months, with the positive effects of tourism extending to the services and consumer goods sectors. Additionally, oil-related industries benefited from favorable market conditions.
Approximately 95% of the 856 companies listed on the SET and the Market for Alternative Investment (MAI), excluding property and infrastructure funds, have already reported their second-quarter results.
Of these firms, 631—representing 77% of those that submitted financial statements—reported a net profit.
In the second quarter, listed companies maintained their growth momentum, with those on the SET achieving an 8.4% year-on-year increase in sales. As of June 30, the average debt-to-equity (D/E) ratio for listed companies (excluding the financial sector) remained steady at 1.51 times.
“The ongoing growth of the tourism sector significantly contributed to profits in service-related businesses, including food and beverages, consumer goods, hotels, aviation, space rental, retail, healthcare, and telecommunications,” said Mr. Pakorn.
Higher oil prices also supported the oil sector, leading to strong operational and net profit increases for listed companies in the first half. However, the property development and construction sectors faced difficulties due to a reduction in public and private sector projects.
Companies listed on the MAI reported a 7.7% rise in first-half sales to 104 billion baht. Due to effective cost management, these companies saw an impressive 80.5% surge in net profit to 6.1 billion baht.
Excluding the top five turnaround companies, MAI-listed firms reported a 22.8% increase in net profit to 4.95 billion baht in the first half.
“Companies have successfully managed their costs and selling and administrative expenses since the first quarter, which has improved their profitability,” remarked MAI president Prapan Charoenprawatt.
“Sales growth was observed across nearly all industry sectors, with the exception of resources, which saw a slight decline. However, almost all sectors experienced increases in operating profit and net profit, with only consumer goods and technology showing a decline in profitability,” he added.
In the meantime, the SET is gearing up to implement three new measures aimed at improving market oversight and reducing stock price volatility in two phases, beginning next month, to help restore investor confidence as the market continues its recovery.
According to Rongrak Phanapavudhikul, senior executive vice-president and spokesperson for the SET, the measures will include dynamic price bands (DPB), minimum resting times, and auction methods, with the first phase set to take effect on September 2, while the second phase is planned for early 2025.
The DPB measure, applicable to securities trading at a price of 1 baht or higher, will cap price changes for current trading at no more than 10% of the reference price, which is the last executed price. If no trading occurs that day, the previous day’s closing price is used as the reference.
The bands will apply to common stocks, real estate investment trusts, property funds, and infrastructure funds but will not apply to foreign order books, odd lots, derivative warrants, or initial public offering stocks.
The minimum resting time will require that trading orders remain in the trading system for a minimum of 250 milliseconds before they can be modified or canceled, aiming to prevent frequent order updates and cancellations that could mislead the market regarding demand for certain securities.
Lastly, the auction method is designed to match trading at a specified time for securities whose trading deviates from regular conditions, according to Mr. Rongrak.
