Sector-by-sector outlook from ASP’s analysts

As the combined 2019 net profit of 98% of SET-listed companies was registered at 939 billion baht, down 3.3% yearon-year, this year’s earnings outlook has been revised down on the back of growing uncertainty clouding Thailand’s economic growth trajectory, according to Asia Plus Securities (ASP).

Combined net profit of listed companies in 2020 has been revised down to 83 billion baht, down 8.2% from 918 billion baht projected previously, with lower earnings per share of 85.60 baht anticipated, down from 95.71 baht, ASP said.

For each sector of the SET, ASP provides a mixed outlook depending on the nature of each business segment.

DOWNWARD REVISIONS

Energy and petrochemicals: revised down by 61 billion baht in total, pressured by low petrochemical spread.

Banks: revised down by 13 billion baht, pressured by the country’s historically low interest rates and economic decline, which could trigger additional rate cuts.

Telecommunications: revised down by 10 billion baht, pressured by higher cost of 5G auction.

Aviation and tourism: revised down by 31 billion baht. No rationale given, but the coronavirus outbreak could be the main factor sapping revenue for listed companies operating in this business segment.

UPWARD REVISIONS

Some exporting companies: supported by the weakening baht and higher pork price.

Some energy companies: revised up by 1.6 billion baht in total, supported by sales that are likely to increase.

Infrastructure funds: revised up by 15 billion baht, supported by asset revaluation.