Q2/2017 Performance of the construction materials group saw the highest revenue belonging to Thai Cement (SCC) at 597 billion baht, with the highest earnings per share at 25.53 baht. Meanwhile, Deecon Products (DCON) achieved the highest net profit margin at 26.8%. In terms of return ratios, Dynasty Ceramic (DCC) delivered the best returns in the group with an ROE of 38.5% and an ROA of 26.57%. The capital projects of this industrial group are not concerning, as most have a debt-to-equity ratio (D/E) of no more than 2 times.


            TerraBKK Research summarizes the performance figures for Q2 2017 of the “Construction Materials” group, comprising 19 companies, as follows:


Revenue

• The average revenue performance for Q2 2017 was mostly in the billion baht range.
• The highest revenue at the hundred billion baht level was only from Thai Cement (SCC) at 243 billion baht.
• The highest revenue growth compared to the same period last year was led by Thai Carpet Industry (TCMC) at 94.3%, Tipco Asphalt (TASCO) at 37.7%, and Siam City Cement (SCCC) at 33.5%.
• The largest revenue decline compared to the same period last year was seen in Premier Products (PPP) at -22.3%, Siam Mosaic Industry (UMI) at -13.4%, and Thaksin Concrete (SCP) at -7.9%.


Net Profit Margin (NPM)

• The average net profit margin for Q2 2017 ranged from 0.2% to 11.5%.
• The top three highest net profit margins were Deecon Products (DCON) at 26.8%, Dynasty Ceramic (DCC) at 17.1%, and Thaksin Concrete (SCP) at 14.07%.
• The largest increase in net profit margin compared to the same period last year was Deecon Products (DCON) at 26.8% (Q2/2017) from 16.6% (Q2/2016).
• The largest decrease in net profit margin compared to the same period last year was Royal Ceramic (RCI) at -59.01% (Q2/2017) from -1.18% (Q2/2016).


Earnings per Share (EPS)

• The top three companies with the highest earnings per share were Thai Cement (SCC) at 25.53 baht per share, Siam City Cement (SCCC) at 3.14 baht per share, and Tipco Asphalt (TASCO) at 1.02 baht per share.


Return on Equity (ROE)

• The average ROE for Q2 2017 ranged from 0.3% to 15.5%.
• The top three highest ROE were Dynasty Ceramic (DCC) at 38.53%, Thai Cement (SCC) at 24.01%, and Tipco Asphalt (TASCO) at 23.41%, reflecting their ability to manage operations effectively to provide good returns to shareholders.
• The highest growth in ROE compared to the same period last year was seen in Diamond Products (DRT) at 20.3% (Q2/2017) from 17.5% (Q2/2016).
• The largest decline in ROE compared to the same period last year was Royal Ceramic (RCI) at -45.7% (Q2/2017) from -11.3% (Q2/2016).

Return on Asset (ROA)

• The average ROA for Q2 2017 ranged from 0.75% to 13.5%.
• The top three highest ROA were Dynasty Ceramic (DCC) at 26.57%, Tipco Asphalt (TASCO) at 19.46%, and Diamond Products (DRT) at 15.93%, reflecting the companies' efficiency in utilizing assets for good returns.
• The highest growth in ROA compared to the same period last year was Diamond Products (DRT) at 15.9% (Q2/2017) from 14.2% (Q2/2016).
• The largest decline in ROA compared to the same period last year was Royal Ceramic (RCI) at -27.8% (Q2/2017) from 13.8% (Q2/2016).

Debt to Equity (D/E)

• The average D/E for Q2 2017 ranged from 0.5 to 2 times, indicating relatively good management of capital structure risk. The company with the highest D/E in the group is Thai Carpet Industry (TCMC) at 2.07 times.


P/E Ratio (as of September 13, 2017)
• The average P/E ratio for the real estate development group ranged from 12.5 to 20 times.
• The unusually high P/E ratio was seen in Siam Mosaic Industry (UMI) at 141.78 times, indicating that its stock price is very high compared to others in the group. ---TerraBKK

Article by: TerraBKK Investment Tips
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