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MAI-listed firms enjoy growing profits despite bearish mood
Listed companies on Thailand’s Market for Alternative Investment (MAI)
continued to enjoy a huge net profit growth in the second quarter this year
despite a bearish sentiment in the stock market, according to MAI manager
Chanit Charnchainarong.
He revealed that 48 companies listed on the MAI had combined revenues of
Bt11.81 billion, up 9 per cent from Bt10.85 billion in the same quarter last
year.
They enjoyed net profits of Bt728 million, up 58 per cent from Bt460 million
in the same period the year before.
Eleven companies that enjoyed a net profit growth of more than 100 per cent
include Thai Ha (1,246 per cent), CPR Gomu Industrial (474 per cent), Chuo
Senko (Thailand) (455 per cent), L.V. Technologies (354 per cent), Steel
Intertech (343 per cent), Pylon (324 per cent), Pico (Thailand) (159 per
cent), Goldfind Manufacturers (117 per cent), Tapaco (114 per cent), Yuasa
Battery (Thailand) (107 per cent), and Demco (101 per cent).
In the first half of 2008, the companies earned combined revenues of Bt22.5
billion, up 11 per cent from Bt20.29 billion, with net profits of Bt1.49
billion, up 70 per cent from Bt879 million.
The top three in net profit growth were Unique Mining Services with Bt240
million, Goldfine Manufacturers at Bt164 million, and Demco with Bt159
million.
Chanit said most companies listed on MAI enjoyed a net profit growth of 70
per cent on average despite Thailand’s economic and political uncertainties.
It reflected the ability of medium- and small-size companies to adjust their
performance amid economic and political volatility, he said. Many firms
managed to turn a profit this year after suffering losses last year, he
added. (TNA)
Liquidity in banking
system continues
to contract in June
Liquidity in Thailand’s banking system continued to contract
in June for the second consecutive period despite an increase in deposits,
according to Kasikorn Research Center.
The leading think tank reported that liquidity fell by Bt7.9 billion from Bt1.75
trillion as of the end of June although deposits rose by Bt285 billion.
Competition for deposits had increased partly because other forms of savings
such as promissory notes and mutual funds are being used more frequently.
In addition, a gradual decline in gold prices since mid-July caused a certain
amount of deposits to flow out to other forms of investment.
In particular, the shifting of deposits to other investment forms might occur
when the Deposit Insurance Institute Act is enforced this month.
KRC projected that liquidity would remain tight for the rest of the year because
many deposits which had been depleted in June had shifted back to the system at
reduced levels.
In addition, savings through commercial banks would face fierce competition with
other forms of savings although the loan growth is likely to ease in tandem with
the economic sluggishness in the rest of the year.
So, Kasikorn forecasts that during the remaining period of this year Thailand’s
banks will compete to introduce deposit programmes with special interest rates
and promissory notes with high interest rates to seek new money to maintain
their liquidity and the deposit market share. (TNA)
MBMG appoints Patrick Pitcher
as non-executive group chairman
MBMG Group, the specialist provider of financial planning, investment and
legal advice in Asia, has appointed Patrick Pitcher as their non-executive
group chairman. In this new position Patrick will be responsible for the
overall marketing strategy and organisational development and play a
strategic role in MBMG’s plans for regional expansion.
 Patrick
Pitcher, the new non-executive group chairman of MBMG Group.
Patrick’s appointment marks MBMG’s continued commitment to Thailand and
plans for further expansion in the region.
Paul Gambles, Managing Partner of MBMG Group, said, “We are pleased that
Patrick Pitcher is joining MBMG Group. His vast experience and in-depth
knowledge of working in the Asia Pacific region will certainly add to the
team’s strength. Patrick’s appointment reiterates our continued commitment
to Thailand and paves the way for our regional expansion plans.”
Prior to joining MBMG Patrick served as CEO of J. Walter Thompson Asia
Pacific South. Before that he was CEO Asia Pacific and main board director
of Saatchi & Saatchi Worldwide. During his career Patrick has also held
marketing positions at Johnson & Johnson and Unilever. Patrick has recently
been appointed as a board director of the Singapore Tourism Board.
Commenting on his new appointment Patrick Pitcher said: “I am looking
forward to joining the MBMG Group. I have worked with the managing partners
Paul Gambles and Graham Macdonald and the team of MBMG for many years now
and they have become partners I can trust. So when Paul and Graham came to
me with a suggestion to join the MBMG Group, there was no hesitation. I am
hugely impressed with the services and products offered by the MBMG Group;
The unique Hamptons Mortgages product for foreigners seeking to acquire Thai
property, the award-winning, number 1 ranked Midas portfolios, the
tax-efficient QROPS product and The Asian Century Fund to name a few. I
personally also could not have embarked on a recent new business venture in
China without using MBMG for corporate structure and tax advice.”
Thailand’s exports surge to record high in July
Thailand’s exports continued to surge to record highs for the
third consecutive month in July, although the balance of trade remained in
deficit, according to figures released by the Ministry of Commerce.
Permanent Secretary for Commerce, Siripol Yodmuangcharoen, revealed last week
that Thailand’s exports in July totaled US$16.96 billion, up 43.9 per cent from
the same month last year, while imports amounted to $17.98 billion, up 55.1 per
cent, all of which resulted in a trade deficit of $1.03 billion.
The trade deficit was mainly attributed to increased fuel imports - up 98.2 per
cent to $4.2 billion, oil exploration equipment valued at $200 million and
liquefied petroleum gas valued at $200 million.
Export items with the highest value in July are in the agricultural products
sector, which surged by 71.8 per cent to $3.06 billion upon higher demand and
prices in the world market. Examples of this were Thailand’s rice, natural
rubber, processed and frozen seafood, and canned and frozen fruit exports which
soared by 212.1, 51.9, 35.7, and 38.1 per cent respectively.
Total exports in the first seven months of this year totaled $104.17 billion, up
26.1 per cent from the corresponding period the year before, and the imports
amounted to $106.26 billion, up 38.6 per cent, resulting in a trade deficit of
$2.09 billion.
Siripol said that although Thailand enjoyed an export growth of 43.9 per cent in
July, it is still necessary to closely monitor oil price movements in the world
market, currency appreciation, and economic recession in the United States, all
of which have repercussions around the world.
However, he said, the ministry remained confident the country’s exports would
grow at least 12.5 per cent this year.
To reach the challenging target growth of 15 and 20 per cent, Siripol said the
private and public sectors must cooperate more closely with each other to seek
out new markets to increase the country’s export base. (TNA)
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