Listed firms look overseas

Thai listed companies more than doubled the value of their overseas investment to 185 billion baht last year, with the food and beverage (F&B) sector the largest investor, says a senior official at the Stock Exchange of Thailand (SET).

Listed F&B companies splashed 61 billion baht worth of investment into overseas markets in 2016, followed by the resources sector at 56 billion and financial institutions at 13 billion, said Pakorn Peetathawatchai, senior executive vice-president at the SET.

Listed firms poured 75 billion baht into overseas investments in 2015.

In 2016, 198 listed companies, representing 39% of listed companies and 71% of market capitalisation, invested outside Thailand. Some 155 of them invested in Asean countries.

Borrowing from banks, profits and bonds were the main sources used to finance their overseas investment, he said.

A biannual survey of listed companies’ chief executives on economic and revenue outlooks found them upbeat that the Thai economy will expand more than 3% this year and all industries’ revenues are expected to improve, said Mr Pakorn.

Thailand’s economy grew 3.3% in the first quarter, the fastest pace in three quarters. The survey queried 105 listed companies, constituting market value of 36%, in 26 sectors.

The executives expect the seven factors supporting Thai economic growth in 2017 to be fiscal policy and government expenditure at 34%, tourism 26%, domestic political stability 15%, domestic purchasing power 14%, recovery of the world economy 5%, oil prices 2% and baht valuation 2%.

Listed headwinds include uncertainty in world economic growth at 28%, domestic household debt 18%, political uncertainly 11%, foreign currency fluctuation 6%, and geopolitical uncertainty 3%.

Listed companies’ aggregate net profit hit a record of 853.2 billion baht last year, up 36% year-on-year. Their combined revenue amounted to 2.33 trillion baht in 2016, of which 27% was contributed from overseas investment. Their revenue ratio of contributions from overseas investment stood at 18% for the past decade.

Most surveyed bosses were optimistic their revenue will gain in 2017 and about 50% believe their revenue will grow by 6%.