Q2/60 Performance of the air transportation group continues to maintain the best financial figures across various financial ratios. Starting with the highest quarterly revenue, Thai Airways (THAI) reported 94,188 million baht, while Airports of Thailand (AOT) achieved a net profit margin of 40.12% along with the highest ROA of 16.42% in the group. In terms of return on equity, Asian Marine Services (ASIMAR) led with an ROE of 17.54%. Regarding capital structure risk, Nok Air (NOK) stands out with a D/E ratio of 11.74 times.

             The stocks currently trending are primarily from the shipping group, such as TTA, ASIMA, and RCL, benefiting from the BDI shipping index in August entering the high season, reaching a new high in four months. Moving forward, caution is advised regarding the timing of selling stocks once the high season ends.

TerraBKK Research summarizes the Q2/60 performance of the "transportation" group, comprising 18 companies, including revenue, profitability metrics such as net profit margin, earnings per share, return on equity, return on assets, and debt levels such as debt-to-equity ratios, and evaluates the price-to-earnings (P/E) ratios as follows:

Revenue
    • The average revenue for Q2 2017 mostly ranged from 680 to 9,700 million baht.
    • The top three highest revenues were Thai Airways (THAI) at 94,188 million baht, Airports of Thailand (AOT) at 42,113 million baht, and Asia Aviation (AAV) at 18,134 million baht.
    • The highest revenue growth compared to the same period last year was Wise Logistics (WICE) at 686 million baht (Q2/60) from 381 million baht (Q2/59).
    • The largest revenue decline compared to the same period last year was Nam Yong Terminal (NYT) at 691 million baht (Q2/60) from 720 million baht (Q2/59).

Net Profit Margin (NPM)
    • The average net profit margin for Q2 2017 ranged from (-2.08%) to 11.48%.
    • The highest net profit margins were Airports of Thailand (AOT) at 40.12%, Bangkok So Phon (KWC) at 31.8 times, and Nam Yong Terminal (NYT) at 28.14 times.
    • The highest growth in net profit margin compared to the same period last year was Asian Marine Services (ASIMAR) at 10.6% (Q2/60) from 5.12% (Q2/59).
    • The largest decline in net profit margin compared to the same period last year was Thai Airways (THAI) at -2.18% (Q2/60) from 3.37% (Q2/59).

Earnings per Share (EPS)
    • The highest earnings per share was Bangkok So Phon (KWC) at 6.72 baht per share.


Return on Equity (ROE)
    • The average ROE for Q2 2017 ranged from (-10.5%) to 10.9%.
    • The highest ROE was Asian Marine Services (ASIMAR) at 17.54%, Airports of Thailand (AOT) at 17.36%, and Wise Logistics (WICE) at 14.9%, reflecting effective management to provide returns to shareholders.
    • The highest growth in ROE compared to the same period last year was Asian Marine Services (ASIMAR) at 17.54% (Q2/60) from 11.64% (Q2/59).
    • The largest decline in ROE compared to the same period last year was Bang Pakong Terminal (BTC) at -14.06% (Q2/60) from -3.29% (Q2/59).

  Return on Asset (ROA)
    • The average ROA for Q2 2017 ranged from (-0.5%) to 10.5%.
    • The highest ROA was Airports of Thailand (AOT) at 16.42%, Bangkok So Phon (KWC) at 16.32%, and Wise Logistics (WICE) at 15.84%, reflecting the company's efficiency in utilizing assets for returns.
    • The highest growth in ROA compared to the same period last year was Asian Marine Services (ASIMAR) at 14.5% (Q2/60) from 9.45% (Q2/59).
    • The largest decline in ROA compared to the same period last year was RCL at -4.75% (Q2/60) from -0.18% (Q2/59).

Debt to Equity (D/E)
    • The average D/E for Q2 2017 ranged from 0.5 to 1.5 times.
    • The abnormally high D/E ratios exceeding 2 times were Nok Air (NOK) at 11.74 times, Thai Airways (THAI) at 8.27 times, and Juthanavi (JUTHA) at 3.67 times, reflecting high risk in capital structure management.

P/E Ratio (as of August 30, 60)
    • The average P/E for the transportation group ranged from 17.5 to 36.5 times.
    • The abnormally high P/E ratios exceeding 100 times were JWD Info Logistics (JWD) at 388.59 times, Thoresen Thai Agencies (TTA) at 117.57 times, and Bangkok Airways (BA) at 107.96 times, indicating that these stocks are very expensive compared to others in the group. ---TerraBKK

 Article by: TerraBKK Investment Tips
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