For the 9M/60 performance of the “Transport Group” TerraBKK Research, it is divided into 3 main groups based on operational characteristics: water transport, air transport, and land transport.

Starting with the water transport group, companies in this sector are beginning to show positive signs. The revenue figures for 9M/60 indicate that the highest revenue company remains Thoresen Thai Agencies (TTA) at 10.45 billion baht, standing out among its peers. Meanwhile, WICE Logistics (WICE) is particularly interesting as its 9M/60 revenue has already surpassed its total revenue for the entire year of 2016 (9M/60 = 1,058 million baht, total for 2016 = 1,036 million baht). In the air transport group, overall revenue for 9M/60 has increased by 3-6% compared to 9M/59, with the most notable growth seen in Nok Air (NOK), which grew by 18.4% from the previous year (9M/60 = 14,728 million baht, 9M/59 = 12,438 million baht). This growth is primarily due to adjustments in domestic flight frequencies to match market conditions and an increase in charter flights to the People's Republic of China. Thai Airways (THAI) continues to generate the highest revenue, reaching over 100 billion baht consistently, with the latest figure for 9M/59 at 140 billion baht. As for the land transport group, BTS Group Holdings (BTS) has seen the highest revenue growth of over 48.5% from the previous year (9M/60 = 6,324.10 million baht, 9M/59 = 4,258.42 million baht) due to increased revenue from mass transit, advertising, and real estate businesses.

Regarding net profit figures, TerraBKK Research found that the water transport group showed the most remarkable adjustments. The companies with the most interesting performances that successfully turned profits back to positive are Thoresen Thai Agencies (TTA) with 351.07 million baht (9M/59 = -254.37 million baht) and RCL (RCL) with 143.41 million baht (9M/59 = -881.08 million baht). In the air transport group, all companies reported a decrease in net profit from the previous year, with only Airports of Thailand (AOT) showing a profit increase of 10.7% from the previous year (9M/60 = 16,894 million baht, 9M/59 = 15,257 million baht). In the land transport group, Bangkok Expressway and Metro (BEM) reported a profit increase of 17.4% from the previous year (9M/60 = 2,365 million baht, 9M/59 = 2,014 million baht).

For the key financial ratios in 9M/60, such as net profit margin, earnings per share, return on equity, return on assets, and debt to equity ratio, TerraBKK Research compiled the 9M/60 performance figures for the transport group, divided into 3 main groups: the top is the water transport group, the middle is the land transport group, and the bottom is the air transport group, totaling over 18 companies, detailed as follows:

1. Earnings per Share (EPS)
Generally, TerraBKK Research found that this industry group has earnings per share not exceeding 1 baht/share, with only Bangkok So Phon (KWC) at 10.52 baht per share.

2. Net Profit Margin (NPM)
The average net profit margin for 9M/60 is in the range of -2.5% to 15.3%. The top three companies with the highest net profit margins are Airports of Thailand (AOT) at 40.12%, Bangkok So Phon (KWC) at 32.97%, and Nam Yong Terminal (NYT) at 27.37%.


3. Return on Equity (ROE)
The average ROE for 9M/60 is in the range of -3.5% to 10.5%. The top three companies with the highest return on equity are Asian Marine Services (ASIMAR) at 17.49%, Airports of Thailand (AOT) at 17.36%, and Bangkok So Phon (KWC) at 14.47%, reflecting their ability to manage operations effectively to provide returns to shareholders.

4. Return on Assets (ROA)
The average ROA for 9M/60 is in the range of 1% to 9.5%. The top three companies with the highest return on assets are Bangkok So Phon (KWC) at 16.7%, Airports of Thailand (AOT) at 16.42%, and WICE Logistics (WICE) at 14.04%, reflecting the companies' efficiency in utilizing assets to generate returns.

5. Debt to Equity (D/E)
The average D/E ratio for 9M/60 in the hotel group remains at a good level, as it is generally not exceeding 2 times. Only 3 companies exceed this threshold: Thai Airways (THAI) at 8.65 times, Juthanavi (JUTHA) at 3.9 times, and Bangkok Expressway and Metro (BEM) at 2.32 times, indicating poor capital structure management and high financial risk.


TerraBKK Research concludes the 9M/60 performance of the “Transport Group” by stating that Thai Airways (THAI) continues to generate the highest revenue, reaching over 100 billion baht consistently, with the latest figure for 9M/59 at 140 billion baht, accompanied by the risk of managing a high D/E ratio of 8.65 times. Meanwhile, Airports of Thailand (AOT) achieved the highest net profit of 16.8 billion baht, with a net profit margin of 40.12%, the highest in the group. Bangkok So Phon (KWC) has the highest earnings per share (EPS) at 10.52 baht per share, along with the best ROA at 16.7%. Asian Marine Services (ASIMAR) achieved the highest ROE at 17.49%, the highest in the group. ---TerraBKK

Article by: TerraBKK Investment Tips
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