PROFITS SEEN SHARPLY LOWER

Tally a 53.6% drop from the year before

SET-listed companies are expected to post a combined profit of 416 billion baht in 2020, a 53.6% drop from 2019.

‘‘ The delisting of THAI would drive the SET to raise the price-per-earning ratio from 28 to 38 times. MONGKOL PUANGPETRA Executive vice-president for strategy research, KTB Securities

Companies listed on the Stock Exchange of Thailand (SET) are expected to post a combined profit of 416 billion baht in 2020, a 53.6% drop from the year before, due to the impact of the pandemic and staggering loss of Thailand’s flagship airline Thai Airways International (THAI).

Their fourth-quarter net profit is expected to stand at 82 billion baht, according to Mongkol Puangpetra, executive vice-president for strategy research at KTB Securities Thailand.

He said SET-listed firms excluding THAI would have a net profit of 558 billion baht in 2020 with an earning per share (EPS) of 52 baht.

In the fourth quarter of 2020, THAI lost 91 billion baht while other listed firms made 174 billion baht in profit.

The estimated performance for 2021 would be at 790 billion baht with the EPS for 2021 at 71 baht.

THAI has had problems over the past year due to the high competition among the aviation industry and economic slowdown stemming from the pandemic last year, causing its performance to decline considerably.

THAI reported to the SET a performance loss of 141 billion baht last year, compared to a loss of 12 billion baht in 2019. Its EPS fell from -5.5 baht in 2019 to -64.7 baht in 2020.

Mr Mongkol said the delisting of THAI would drive the SET to raise the price per earning ratio from 28 to 38 times, among the highest in the region.

Mr Mongkol said SET-listed firms’ performance from 2016-2019 were 891 billion, 975 billion, 968 billion and 896 billion baht, respectively.

Meanwhile EPS during that time were 90.6, 97.1, 95.7 and 86.7 baht.

The SET on Feb 25 posted suspension (SP) and Notice Pending (NP) signs on THAI securities, which means its shares may be subject to a possible delisting as the auditor had issued a disclaimer of opinion on financial statements in 2020. Because of negative equity, the SET will determine this issue within seven business days or within March 8.

The Securities and Exchange Commission may require the company to amend the financial statements.

The beleaguered national carrier disclosed to the SET that it will propose the rehabilitation plan to the Central Bankruptcy Court, but the plan has already been filed a few times.

Lastly, the court approved the extension of the submission period of the rehabilitation plan to March 2, 2021 which is the final extension permitted by law.