Thai listed companies recorded a nearly 80% rise in net profit to 986 billion baht in 2021, as rising oil and commodity prices supported related businesses and the government's easing of pandemic restrictions spurred economic recovery.
Manpong Senanarong, senior executive vice-president at the Stock Exchange of Thailand (SET), said 757 companies from a total of 780 listed on the SET and Market for Alternative Investment (MAI) have submitted their annual financial performance reports.
He said that of 757 companies, 592 companies have recorded net profits, representing 78.1% of the listed companies that submitted their financial statements.
Companies that reported high growth in net profits last year were mostly those in commodity-related industries such as energy, petrochemicals, steel and transportation (waterways), healthcare and medicine-related businesses such as rubber glove manufacturers, and businesses in fast-recovering industries including electronic components, industrial materials, and automotive, said Mr Manpong.
Overall, SET-listed companies recorded total sales worth 13.13 trillion baht, up 23.1% year-on-year, with core operating profits of 1.56 trillion baht, an increase of 68.3% from the previous year.
The average operating profit margin and net profit margin were at 11.9% and 7.5%, respectively.
Compared with 2019, the year before the pandemic started, listed companies have delivered better financial performances in 2021 with increases in sales, core operating profits and net profits, while their profit margins also bounced back to 2019 levels.
Meanwhile, companies on the MAI reported a 38.9% rise in operating profits to 10.76 billion baht and a 273.6% increase in net profits to 8.44 billion baht.
For investment direction this week, an analyst at Bualuang Securities recommended investors monitor progress in the Russia-Ukraine war and results from the Federal Reserve's Federal Open Market Committee meeting that will be held on March 15-16.
The analyst recommended investing in logistics and transportation stocks, except Kerry Express (Thailand), as such stocks are expected to benefit from the European war and higher inflation that will push up freight rates.
Public transportation companies such as BTS Group Holdings and Bangkok Expressway and Metro are expected to benefit from a gradual increase in usage.
The prolonged geopolitical conflict will also be a boon for airlines as Chinese tourists will choose to visit Asia instead of Europe.
The analyst recommends Regional Container Lines, Precious Shipping, Leo Global Logistics and Triple I Logistics for logistics stocks, and Asia Aviation for airlines.