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SET rolls out new plan gearing towards Thailand 4.0

The goal is to develop the capital market for all stakeholders, while building up the foundation for the Thai capital market, economy, society, and the country in line with the government’s new economic model “Thailand 4.0.”

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The Stock Exchange of Thailand (SET) announces its strategic plan for 2017, driven by the vision “To Make the Capital Market ‘Work’ for Everyone.”

SET aims to expand its fund raising coverage to competitive s-curve industry, startup businesses, as well as strengthening Thai aging society in term of wealth creation, reinforcing SET mission toward inclusiveness and sustainable growth.

The goal is to develop the capital market for all stakeholders, while building up the foundation for the Thai capital market, economy, society, and the country in line with the government’s new economic model “Thailand 4.0.”

A particular focus will be put on seeking high competitiveness industries, while establishing
an ecosystem conducive for startup companies for fundraising.

SET and its partners aim to build an investment culture via digital platforms,
while promoting Investment Saving Plan (ISP) to allow Thais to get ready for an
upcoming aging society. While SET will continue to provide and develop excellent
infrastructure and capability in accordance with international practices,
Moreover, SET as regional connector will join Cambodia, Laos, Myanmar and
Vietnam (CLMV) to launch CLMV index to promote high potential businesses in the
region.
SET Chairman Chaiyawat Wibulswasdi said that the capital market has been an
instrumental driving force for the economic development. In 2017, SET has thus
set a vision to continuously develop the capital market to ensure sustainable
and inclusive growth for all stakeholders. This would reinforce the government’s
“Thailand 4.0 economic model” to enhance Thailand’s economic competitiveness.
SET President Kesara Manchusree also elaborated that SET has set out the 2017
strategic goal to achieve sustainable and inclusive growth, covering three
areas:

1. Fund-raising Cultivator: to expand fundraising opportunities through various approaches

  • – To attract newly listed securities focusing on Thailand’s competitive
    industries and clusters such as food and energy, state-enterprises’
    infrastructure funds and common stocks, as well as potential foreign listing,
    while providing fund-raising knowledge to potentially high-growth small and
    medium-sized enterprises and start-up companies
  • – To enhance the quality and capability of listed companies by facilitating
    fundraising tools, as well as encouraging them to adopt the environment, social,
    and governance (ESG) principles. In addition, SET will enhance capabilities of
    social enterprises through various programs including “SET Social Impact
    Platform” – an online platform to connect both businesses and investors for
    collaborative synergy. It will also increase efforts to raise the international
    recognition for listed firms through roadshows, “Dow Jones Sustainability
    Indices” (DJSI), “MSCI Index”, and the upcoming “CLMV Index”.
  • – To build start-up ecosystem to strengthen the knowhow and readiness for
    raising capital funds. In this regard, it plans to launch the start-up trading
    platform in Q3/2017.Overall, SET expects to increase market capitalization via initial public
    offering (IPO) by THB 280 billion and through existing listed companies by THB
    270 billion, totaling THB 550 billion. Following the above target, competitive
    industries are expected to contribute 25 percent of new listing.
    2. Investment Cultivator: to enhance investment and develop investment literacy
    of stocks, mutual funds, and provident funds, through digital platforms.
    – To foster an investment culture by creating a long-term investor base in
    keeping with an aging society. In this regard, SET and its partners will promote
    ISP through online application, while creating and an investment portal as a
    knowledge hub for multi-asset class investment.
    – To educate Thai people to diversify investment into provident funds and
    encourage employers to provide employee’s choice schemes for provident funds
    – To launch the “FundConnext”- a technology-enabled fund service platform
    enabling investors to access mutual funds efficiently (March 2017). SET plans to
    develop the platform to serve as a central registrar for mandatory provident
    funds.
    For this part of the strategy, SET targets to attract 110,000 retail investors
    from equity and derivatives markets.

3. Excellent Infrastructure and Capability

to develop the capital marketinfrastructure and standardize operational practices, as well as to bridgeinvestment opportunities with global market through digital platforms,including:
– To continuously develop infrastructure such as open architecture and cyber
security in line with international standards
– To standardize the clearing and settlement securities process, preparing for
the two business days clearing and settlement cycle of securities trading (T+2)
– To cooperate with other regional exchanges on foreign listing

“SET’s 2017 strategic plan will help create a new “S-curve” by facilitating new
competitive industry to gain easier access to capital funds and enhance
capabilities for start-up companies. This is in line with the government’s
policy to synergize efforts from the public and private sectors to enhance
Thailand’s sustainable development,” Chaiyawat commented.

In 2016, SET achieved key milestones and maintained its leading position in
ASEAN with SET index is best performer among ASEAN-5, up 15 percent at 1,485.68
points (as of November 22, 2016), the average daily trading value at THB 53.44
billion, being the highest in ASEAN for five consecutive years. Market
capitalization of new listing at initial public offerings totaled THB 136.66
billion, the highest among ASEAN5, while fundraising of listed companies from
secondary market was worth a combined THB 273.47 billion (as of end-October).
The combined market capitalization of SET and Market for Alternative Investment
(mai) rose 18 percent from the end of last year to THB 14.88 trillion, On the
quality aspect, 14 Thai listed companies have been included in the Dow Jones
Sustainability Indices (DJSI), highest among ASEAN, while the average corporate
governance (CG) of Thai listed companies from ASEAN CG Scorecard has been
constantly increased, showing that Thai listed companies have continued to
upgrade their CG practices.

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Asean

Thailand’s Stock Exchange (SET) market report for February 2021

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SET 16/2021
March 8, 2021
SET market report for February 2021

BANGKOK, March 8, 2021 – The global stock exchanges in February 2021 faced
volatility from bond yield spike that hit the 12-month high, reflecting an
anxiety in revising inflation forecast that could cause major central banks in
many countries to temper monetary policy easing sooner than previously expected.
The Stock Exchange of Thailand (SET) Index fared well on the heels of the
global economic rebound and optimism on recovery in service and tourism sectors
following the domestic vaccination rollout.

SET Senior Executive Vice President Soraphol Tulayasathien said the SET Index
gained 2.0 percent from the previous month to 1,496.78 points at end-February,
buoyed by a pickup in the world economy coupled with optimism after Thailand
begun importing vaccine. The Market for Alternative Investment (mai) Index
logged its closing high during the month-end in two years of 379.07, or a 6.4
percent increase from a month ago in February. Comparing with year-end
performance, Agro & Food Industry, Financials, Industrials and Services industry
groups outperformed SET Index.

Key highlights for February
-SET Index ended 1,496.78 points in February or a 2.0 percent gain from the
month before, outpacing other regional peers and MSCI ASEAN Index with a 1.6
percent rise.
-mai Index closed at 379.07 points, a 6.4 percent increase from the preceding
month (the highest level at month-end close in two years.
-In February, several industry groups increased from the previous month. Agro &
Food Industry, Financials, Industrials and Services outpaced SET Index.
-The average daily trading value of SET and mai soared 43.2 percent year-on-year
to THB 94.32 billion (approx. USD 3.08 billion). The trading value of THB
126.92 billion on February 25, 2021 was the sixth highest level since SET
started trading.
-Retail investors continued to dominate trading, accounting for 47.3 percent of
total trading, and they were net buyers for another month at THB 30.28 billion
in February. Brokers bought a net THB 2.44 billion, while foreign investors were
the net sellers for the second consecutive month with a net THB 18.61 billion.
Local institutional investors sold a net THB 14.11 billion. To sum up, during
the first two months of this year, foreign investors were net sellers of a total
of THB 29.28 billion.
-In February, IPO activities continued with two new listings on SET and one
listing on mai. Particularly, the IPO value in the first two months of this year
outpaced ASEAN peers, mainly from the listing of PTT Oil and Retail Business
pcl (OR).
-SET’s forward P/E ratio was 19.3 times at end-February, while historical P/E
ratio was 26.8 times, higher than the average of the Asian peers at 15.1 times
and 25.3 times, respectively.
-Dividend yield ratio of SET was 2.57 percent at end-February, above Asian stock
markets’ average ratio of 2.28 percent.

Derivatives market
– In February, the average derivatives trading volume recorded at 435,761
contracts per day, a 24.0 percent drop from end-January due to the decrease of
trading activities in Single Stock Futures and SET50 Index Futures. However, it
was partially offset by the rise of trading volume in Gold Futures & Silver
Futures and Agricultural Futures (entirely from Japanese Rubber Futures: JRF).

“SET…Make it Work for Everyone”
Follow us on Twitter @SET_Thailand_EN
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SET

Thailand’s Stock Exchange (SET)-listed companies’ 2020 earnings drop due to COVID-19, falling oil price

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SET News 17/2021
March 12, 2021

SET-listed companies’ 2020 earnings drop due to COVID-19, falling oil price with
positive sign of recovery in H2

– Yearly sales fell 14.4 pct to THB 10.68 trillion, hit by COVID-19 pandemic
& sharp decline in oil price.
– Operating profit of Agribusiness, Food & Beverage, Personal Products &
Pharmaceuticals, and packaging sectors increased.
– Q4 sales, core operating profit and net profit of SET-listed firms rose
Q-o-Q.

BANGKOK, March 12, 2021 – Companies listed on The Stock Exchange of Thailand
(SET) reported a 53 percent year-on-year drop of net profit in 2020, hit by
COVID-19 and sharp oil price decline. However, the companies have continued to
revive following the economic recovery, starting from Q2/2020 while the
pandemic containment measures have increasingly been relaxed.

SET Senior Executive Vice President Manpong Senanarong said that 718 SET- and
mai-listed companies, accounting for 96.2 percent of the total 746 companies
(excluding property funds, infrastructure funds, and non-compliance or NC),
submitted their financial reports, ended December 31, 2020. Among those firms,
509 companies or 70.9 percent posted net profits.

In 2020, SET-listed companies’ earnings were down year-on-year, marking combined
sales of THB 10.68 trillion (approx.. USD 34.66 billion), core operating
profits of THB 736.61 billion and net profits of THB 420.84 billion. Worst
performer in terms of sales was Energy & Utilities sector. Net profits of
companies in Transportation & Logistics sector recorded the most decline, hugely
impacted by large corporations’ losses. On the other hand, operating profit of
the following sectors: Agribusiness, Food & Beverage, Personal Products &
Pharmaceuticals and Packaging, notched higher.

SET-listed companies’ gross profit margin rose to 21.10 percent from 20.56
percent, while their core operating profits edged lower to 6.90 percent from
7.31 percent, and net profit margin slipped to 3.94 percent from 7.17 percent.
2020 growth rate (Y-o-Y) Total Excluding Energy & Utilities sector and
large firms in Transportation & Logistics sector
Sales -14.4% -6.8%
Core operating profit -19.2% -1.4%
Net profit -53.0% -33.0%

If excluding earnings of companies in Energy & Utilities sector, the decline in
2020 was in line with the pace of the country’s economic growth and the drop of
net profits was not considerably deep. In Q4/2020, sales, core operational
profits and net profits picked up from the previous quarter..

Quarterly growth rate excluding Energy & Utilities sector and large firms in
Transportation & Logistics sector
%Q-o-Q Q1/20 Q2/20 Q3/20 Q4/20
Sales -3.3 -9.7 8.5 3.7
Core operating profit 17.0 -19.4 37.9 2.8
Net Profit -24.7 -31.6 36.9 7.7

Regarding financial position at end-2020, Thai listed firms’ debt-to-equity
ratio (excluding those in Financials industry group) continued to rise to 1.58
times from 1.35 a year before.

“The virus outbreak adversely impacted consumption demand and tourism &
hospitality industries. As a result, business performance of listed companies in
most sectors decreased. However, the new normal way of life has accelerated
digitization while demand in healthcare & wellness surged, driving growth for
Food & Beverage, rubber-related Agribusiness, Packaging and digital platform
Communication Technology sectors. Moreover, the ease of pandemic control
measures in the second half of the year contributed to the improving performance
of listed companies across sectors from the bottom in Q2,” said Manpong.

Companies listed on Market for Alternative Investment (mai) posted a 7.2 percent
drop of total sales to THB 166.88 billion in 2020. Their operating core profits
increased 8.3 percent from a year earlier to THB 6.44 billion, while net
profits fell 63.0 percent to THB 3.37 billion.

“SET…Make it Work for Everyone”
Follow us on Twitter @SET_Thailand_EN
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