Ref FASET 03/58
April 30, 2015
Subject:
Report the unreviewed operating result for the first quarter ended March 31, 2015
To:
President of the Stock Exchange of Thailand
Seamico Securities Public Company Limited would like to report the unreviewed
operating result for the period ended March 31, 2015 as follows:
The unreviewed separate operating result for the first quarter ended March 31, 2015
The Company generated net income of Baht 122.02 million comparing to the same
period of the year 2014 with net income of Baht 54.05 million. The increase in net income of
Baht 67.97 million or 126 % was from the followings :•
Total revenue has increased by Baht 48.98 million which were mainly from :
-
The Company received dividend from KT ZMICO Securities Company Limited (KT
ZMICO) which is Seamico’s associated company of Baht 141.49 million compared
with the same period of last year whereby the Company had recorded dividend
income amounting to Baht 64.27 million, thereby, dividend income has increased by
Baht 77.22 million.
-
Interest income from deposit at financial institutions and debt securities and dividend
income from investment have increased in sum of Baht 2.31 million.
-
Gain from investments decreased by Baht 25.92 million mainly due to the mark to
market of unrealized losses of equity securities.
•
Total expenses decreased by Baht 13.43 million or 73 % due to:
-
Impairment loss from securities decreased totaling of Baht 15.21 million which can
be summarized as follows :(1) A decrease of impairment loss of investment in Thanh Cong Securities J.S.C.
(Thanh Cong) which declined by Baht 3.04 million owing to Thanh Cong started
to have profitable operation since the second quarter 2014.
(2) A decrease of impairment loss of investment in Solaris Assets Management
Company Limited which is the Company’s subsidiary (Solaris) which declined
by Baht 12.17 million as a result of Solaris is able to manage mutual fund and
private fund by which revenue has significantly increased by 376 %. The Asset
Under Managements have increased from Baht 6.06 billion to Baht 20.29 billion
or 235 % as well as the number of mutual and private funds under management
have increased from 21 funds from the first quarter 2014 to 59 funds in the
current year.
The operating results of Solaris can be summarized as below :For the first quarter
Fee and service incomes
Other incomes
Operating expenses
Corporate income tax
Net profit
•
2015
2014
26.19
0.25
(17.58)
(1.77)
5.50
0.18
(9.57)
-
7.09
(3.89)
Income tax expense decreased by Baht 5.57 million compared with the same period of last
year even though the profit before tax in the first quarter 2015 is higher than the first
quarter 2014 owing to the fact that the dividend received from KT ZMICO for the first
quarter 2015 is greater than the first quarter 2014 of which these dividend income is taxexempted.
From the above reasons, the net income of the Company for the first quarter 2015
increased by Baht 67.97 million comparing to the same period of last year.
The unreviewed consolidated operating result for the first quarter ended March 31, 2015
The Company and its subsidiary generated net income of Baht 15.41 million comparing
to the same period of year 2014 with net loss of Baht 1.47 million. The Baht 16.88 million
increase of net income were from the following reasons :
•
Total revenue increased by Baht 20.35 million or 98 % due to :-
-
Share of profit/(loss) from associated companies under equity method have increased
in total of Baht 28.99 million which comprise of :(1) The Company recorded share of profit from operating result of KT ZMICO under
the equity method according to 49.64 % of investment increased from Baht 5.91
million from the first quarter 2014 to Baht 36.22 million in the current period.
Share of profit has increased by Baht 30.31 million due to the fact that KT
ZMICO generated net profit for the first quarter 2015 higher than the first quarter
2014.
KT ZMICO generated net income for the first quarter 2015 of Baht 72.96 million
comparing to the first quarter 2014 with the net income of Baht 11.91 million;
therefore, net income increased by Baht 61.05 million or 513 % due to :-
(1.1) KT ZMICO’s revenue for the first quarter 2015 has increased by Baht
178.22 million or 56 % comparing to the same period of last year due to an
increase in brokerage income from securities totaling Baht 169.16 million
or 86 % as a result of increase in trading volume of securities from retail
customers. In additions, interest received from margin loan lending to retail
customers for trading securities has increased by Baht 17.14 million which
resulted from an increase of average margin loan in the first quarter 2014 of
Baht 2.7 billion to Baht 4.3 billion in the first quarter 2015. Interest and
dividend incomes increased by Baht 10.8 million from dividends received
from investment in securities. Furthermore, the assets under private funds
managed by KT ZMICO had doubled increase in total value. However, the
Company incurred a decrease in gain from securities and derivative trading
amounting to Baht 19.04 million due to KT ZMICO has lowered the credit
line of investment in securities.
(1.2) KT ZMICO’s expenses have increased by Baht 102.88 million or 34 % due
to an increment of trading volume resulted in an increase of fee and service
expenses by Baht 9.95 million. Personnel expenses increased by Baht
88.74 million from sale incentives paid to marketing officers and
performance rewards for employees which were in line with an increase in
trading volume. In addition, the interest paid from borrowings in order to
support credit balance transactions as well as interest paid to customers for
money deposit for securities and derivatives trading have increased by Baht
8.80 million. However, the Company has improved the efficiency of space
utilities in the office which causes the decrease in premises and equipment
by Baht 7.69 million.
The operating results of KT ZMICO for the first quarter 2015 are as
follows:Net securities business income
Operating expenses
Corporate income tax
Net profit
494.0
million Baht
(403.6)
million Baht
(17.5)
million Baht
72.9
million Baht
(2) The Company recorded share of losses under equity method of Beacon offshore
Ltd. (Beacon) according to 19.05 % which has increased from Baht 0.03 million
from the first quarter 2014 to Baht 1.35 million in this period because the
Company has started to invest in Beacon since ending of March 2014.
-
Fee and service income for the first quarter 2015 increased by Baht 20.68 million
comparing to the same period of last year due to Solaris is able manage mutual and
private funds which the revenue has significantly increased as mentioned above.
-
Interest and dividend income decreased by Baht 2.21 million from interest received
from deposit at finance institutions and debt securities of Baht 1.67 million and
dividend from securities of Baht 0.54 million.
-
Gain from investment in securities decreased by Baht 25.92 million in which the
reasons were mentioned above.
•
Total expenses increased by Baht 6.85 million or 30 % due to:-
-
Fees and services expenses increased by Baht 6.27 million due to an increase in agent
fee for selling unit trusts from Solaris as according to an increase of Assets Under
Management.
-
Personnel expenses increased by Baht 2.59 million due to an increase in number of
employees of subsidiary and annual salary rate adjustment.
-
The Company reversed impairment loss from investment in Thanh Cong in which the
Company has shareholding interest of 18.88 % which decreased by Baht 3.04 million
which was mentioned above.
From the above reasons, the net profit of the Company and its subsidiary for the first
quarter 2015 increased by Baht 16.88 million from the same period of the year 2014.
By the way, the consolidated net income for the first quarter 2015 is lower than the
separate net income of Baht 106.61 million. According to the Financial Reporting Standards, the
separate statement of income recognized dividend income from KT ZMICO of Baht 141.49
million while consolidated statement of income recognized share of profit/(loss) from KT ZMICO
and Beacon under equity method in sum of Baht 34.87 million, and recognized gain on transfer
business to KT ZMICO net of tax by Baht 0.01 million.
Yours sincerely,
(Mr. Chaipatr Srivisarvacha)
Chief Executive Officer