Siam Cement sees 32% Q3 profit jump
The Nation, October 30, 2003
By: Watcharapong Thongrung
THE COUNTRY'S biggest conglomerate, Siam Cement Plc, outstripped analysts' forecasts with a 32-per-cent rise in third quarter profit yesterday, thanks to the construction industry boom.
President Chumpol Na Lamlieng warned, however, that the 20-30 per cent growth currently enjoyed in the real estate sector could not be sustained over the long run.
"A growth rate of 20-30 per cent per year could last for one to three years. If it went on longer, there would be an oversupply in developed houses," he said.
The high-end housing segment, with houses priced over Bt10 million each, already seems to be oversupplied, Chumpol said.
Siam Cement recorded a net profit of Bt4.86 billion in the third quarter, 32 per cent higher than the corresponding period last year and 36 per cent up on the second quarter.
Brokerages had forecast a net profit of Bt4.1 billion-Bt4.2 billion.
Analysts, speaking before the results were announced, said strong demand for plastics in China had helped lift prices for Siam Cement's petrochemical products. And Bangkok 's Bt120billion new international airport, plus new roads and a surge in housing projects, meant the group's cement unit hardly slowed in the rainy season, they said.
Siam Cement's three core sectors - cement, chemicals and paper - have made the group's shares like an indicator of Thai economic growth, which is expected to exceed 6 per cent this year.
The stock has gained 56 per cent this year, against a 74-percent rise in the Stock Exchange of Thailand's benchmark index.
Back to Newsclippings | To top
|
