Second-quarter net profit of listed companies hit an all-time high of 320 billion baht, with energy, refining, banking and consumer goods sectors recording notable earnings, prompting analysts' expectations that the whole-year profit could exceed one trillion baht.
According to data collected by Asia Plus Securities (ASPS), 645 listed companies reported their quarterly financial performances to the Stock Exchange of Thailand as of Aug 15. Those accounted to 87% of the overall capitalisation of the Thai bourse.
The total net profit hit the record of 320 billion baht in the quarter to June, an increase of 27.9% from the same period last year and 21.2% from 295 billion baht recorded in the previous quarter.
Therdsak Thaveetheerathum, deputy director of the research division at ASPS, attributed the high oil prices and Thailand's economic recovery for pushing listed companies' profits.
Meanwhile, US and European stocks were less attractive on the onset of technical recession, particularly after the US reported a GDP for two consecutive quarters this year while Europe's GDP declined in the second quarter.
Foreign capital flowing into the Thai stock market totalled 18.5 billion baht this month and it is expected that the inflow will continue in second half, he said.
ASPS expects tourism industry to continue to grow in the second half as a key driver of Thai economic growth this year and the continuous growth of listed firms' profit.
The brokerage firm now expects earnings of listed firms to reach 1.04 trillion baht with a projected earning per share (EPS) of 88.9 baht per share.
But Mr Therdsak noted that ASPS is likely to revise up EPS estimates for all of 2022 to 94 baht after 100% of listed companies reported their results of the quarter.
The National Economic and Social Development Board revealed recently that the Thai economy grew 2.5% in the second quarter. That is better than the US and UK, which contracted quarter-on-quarter and are likely to gradually enter a technical recession.
Foreign fund flows into the Thai stock market exceeded 18.5 billion baht in August, indicating that foreign funds continued to flow into the country.
The Consumer Confidence Index (CCI) has risen and the baht has appreciated, supporting the belief that the Thai economy is recovering.
Additionally, Kasikornbank (KBANK) was among 13 global stocks added to MSCI Global Standard last Friday, a fresh positive sentiment for the Thai stock market, Mr Therdsak said.
ASPS recommends investors choose large stocks with unique support, such as KBANK, Bangkok Commercial Asset Management (BAM), which has a tendency to continue earnings growth, and Central Plaza Hotel (CENTEL), which benefited from the country's opening.