Equity Instruments

Classification of Industry Group and Sector

Classification of Industry Group and Sector

The classification of listed company’s industry structure is to incorporate similar businesses into the same group, so as to provide appropriate investment information and comparison among the listed companies. The classification is intended to clearly reflect the listed companies’ business as well as the country’s various industries.

  • The classification will be for listed companies (ordinary shares), unit trusts of the property fund, unit trust of the infrastructure fund, and the Real Estate Investment Trusts (REITs). Other financial instruments will be in separate groups.
  • This shall not apply to listed companies in Non-Performing Group (NPG).
  • The classification will include companies operating similar businesses or are likely to develop in the same direction.
  • The consideration will essentially be based on major business of the listed company that generates more than 50% of its total revenue.
  • If there is no business that generates more than 50% of total revenue, profits will be used as secondary basis. Nevertheless, SET may consider using other supporting criteria as deemed appropriate.
  • In case the company operates via its holding in several subsidiaries (Holding Company), the company will be classified in line with the business of its subsidiary that generates major revenue.
  • Presently, SET has classified the listed companies according to their industry groups and business sector. From 2015 onwards, the listed companies on mai will be classified as well.
Industry GroupBusiness SectorDescription of Business
Agro & Food Industry
Businesses relating to farming, forestation, livestock, processing agricultural products, and food and beverage production

Agribusiness
The businesses that : 
  • operate the farms, livestock, fishing, forest
  • process, carve and store agricultural products
  • as well as the distributors of agricultural products primarily for other industries
except the businesses relating to chemical fertilizer and pesticides and those relating to textiles.
 Food & Beverage

The businesses that : 
  • Producing the food by processing agricultural products,
  • operating the restaurants
  • distributing the food
  • as well as producing beverages
Consumer Products
Businesses relating to the production and distribution of consumer products, both necessity and luxury goods.
Fashion

Producers, designers, and distributors of the following:
  • Apparels, shoes, leatherwork, bags
  • Cutting and processing gemstones and accessories
  • Producing the raw materials for the industry e.g. textile, yarn, tanning.
 Home & Office Products
Operate businesses relating to household or office products:
  • Producers and distributors of household products such as furniture, decorating items, sports equipment, toys, and kitchen appliances.
  • Producers and distributors of the lighting products, household or office appliances e.g. televisions, sound equipment, and photocopiers.
  • Producers of office supplies e.g. pens, folders, etc.
 Personal Products & Pharmaceuticals

Producers and distributors of:
  • Products for personal consumption e.g. cosmetics, skincare products, perfume, napkins, and toilet paper.
  • Medicine, medical equipment, products produced from the bio-technology.
Financials
Industries relating to different types of financial service providers
Banking

Operators of the banking business as per the Commercial Banking Act and related laws, as well as the businesses established under the special law.
 Finance & Securities

Operators of these businesses: Finance, leasing, hire-purchase (not selling the services or products directly to customers), factoring, credit card, consumer loan, securities company, investment management company, asset management company, and other asset services.
 Insurance

Operators as per the Insurance Act, Life Assurance Act, as well as other similar businesses established under the special law.
Industrials
Business relating to the production and distribution of general raw materials used in various industries, primary and intermediate products, machines and equipment used in production industry and the automotive industry.		Automotive

The operators of these businesses:
  • Production or assembly of cars, and various automotive
  • Production, distribution, or assembly of the auto parts and spare parts
  • Auto repair and maintenance services
  • Distribution and being a distribution center for new and used cars
 Industrial Materials & Machine

The operators of these businesses:
  • Production and distribution of light and heavy machines and equipment
  • Equipment or basic parts of electrical appliances e.g. cables and wires, light bulbs, insulators, and motors.
  • Raw materials used in several industries
Exception: Companies that produce tools or equipment for special business only, not for application in other businesses.
 Packaging

Producers and distributors of packaging products, including the packing parts, materials or products used to produce the packages, and those not classified in other sectors.
 Paper & Printing Materials

Producers and distributors of:
  • Pulp and paper, and paper products
  • Ink used for printing
 Petrochemicals & Chemicals

Producers and distributors of:
  • Petrochemical products, plastic compound, molded plastic products
  • Chemicals, basic chemicals, and processed chemical products, fertilizer, and pesticides.
Exception: Production of molded plastic to be used as parts or accessory of finished goods or any specific goods
 Steel and Metal Products

Producer, processors, or distributors of steel products, steel fabrication or metal products which have steel as a major component.
Property & Construction
Industries relating to the producers of construction material, the developers and managers of real estates, as well as the construction and engineering services.		Construction Materials

Producers and distributors of: Construction material, non-steel decorating material, as well as sanitary ware
Construction Services

Providers of services and advice about:
  • Construction of the residence and other types of buildings e.g. residential construction, condominiums, industrial estates, shopping centers, roads, bridges, and interior decoration services
  • The construction projects regarding the engineering system, and civil design
 Property Development

 Producers and distributors of the following:
  • Real estate developers for sale or lease, as well as managing the real estate e.g. the juristic person of condominium, housing estate, or land
  • Representatives or agents for selling or leasing the property
 Property Fund & Real Estate Investment Trusts
 		Mutual funds or trust funds with an objective to invest in the property and gain revenue from the rent, interest, and profits from property trade
Resources
Businesses relating sourcing and managing the resources such as production and allocation of energy and mining.		Energy & Utilities
Operators of the following businesses:
  • Production, exploration, drilling, refining and distributing natural energy in various forms such as oil and natural gas.
  • Utility providers e.g. electricity, water, and gas
 Mining

Mining surveyor, operator, smelter, and distributor. The minerals can be either metal or non-metal, but excluding the energy minerals.
Services
Businesses in the service industry, except financial service and IT as they are classified in different groups.		Commerce

Two factors are taken into consideration:
  • Providers of goods to consumers, retail and wholesale, with physical stores e.g. shops, department stores, convenient stores, discount stores, superstores, or without a physical store i.e. electronic medium
  • Products for sale must be the finished goods for consumers, and can be from different sectors.
 Health Care Services

Providers of medical services, dental services, cosmetic surgery, health rehabilitation, and other physical fitness.
 Media & Publishing

Producers and distributors of these media:
  • Various type of media:
    1. Entertainment media e.g. music, film, play, entertainment programs, cinemas, and the play house.
    2. Broadcaster of radio and television
    3. Producer of advertising media
  • Print media e.g. printing house, publishing house, and producers of the magazines, newspapers, and other prints.
 Professional Services

Providers of specific services not specified in any other sectors e.g. education, business consultancy, waste management, as well as the services to the business not categorized in any sector.
 Tourisms & Leisure

Comprise of:
  • Operators of the hotel and temporary accommodation, as well as travel service e.g. tour agency
  • Operators of recreation, relax, and study tour places e.g. zoo, entertainment venue, exercise and fitness, and sports arena
 Transportation & Logistics

Comprise of:
  • Transportation businesses in all channels e.g. air transport (airports, airlines), water transport (ports, shipping companies), train and other land transports, and integrated logistic services.
  • Product storage service, warehouse rental, and other related services.
Technology
Businesses relating to IT products, including all primary, intermediate and final products, and the providers of IT and telecommunication services.		Electronic Components

Producers of electrical components used in electrical appliances or other electrical equipment e.g. IC, PCB, and semiconductors (except for the components produced to be specifically used in computers)
Information & Communication Technology
Comprise of:
  • Providers of IT services relating to the management of information and communication e.g. providers of telecommunication network, satellite, cable, IT system design and implementation, internet network providers, designer and implementing the internet network.
  • Producers or providers of installation services for computers or the mainframe servers.
  • Producers or distributors of IT equipment used for this technology e.g. telecommunication devices, hardware, computer parts, and the software developers.
Since the listed company may have changed its business structure, there is a need to review the classification of industry group and business sector regularly. SET will take into consideration based on the following three cases:

Group 16481 Case 1: Annual review

SET will consider the information as per the Form 56-1 One Report, which must be sent to SET within three months after the end of company’s accounting period. 

  1. It will take approximately 30 days for SET to consider, starting from the due date of Form 56-1 One Report.
  2. If the company’s revenue structure is not in line with its current business sector, SET will send a notification letter to the company about the change in business sector within 15 days after the due date in (1).
  3. If the company has different opinions, it can provide additional clarifications to SET within 15 days from the day SET has sent the notification letter.
  4. SET will consider additional clarifications within 15 days. If SET is to proceed with the business sector change, it will send a notification letter to the company and announces to the investors not less than 15 days before the securities will begin trading in the new sector.

Case 1: Annual Review based on Form 56-1 One Report

Industry-case 1
Industry-case 1-m

Group 16481 Case 2: The Company’s revenue structure has obviously changed

In case the company’s business has changed so much that it leads to the change in revenue structure. For example, when there is an acquisition of business, or change the type of business operations. SET will then consider reviewing business sector classification without having to wait for the annual review. The change in business sector will occur after the structural change has taken effect. SET will proceed as per Case 1, item (3) to (4).

Case 2: The Company’s revenue structure has obviously changed.

Industry-case 2
Industry-case 2-m

Group 16481 Case 3: Request by the listed company

The listed company can request for a change in industry group and business sector if it sees inappropriate. The company can send a request letter to SET, along with related information. It will take 15 days for SET to consider, starting from the day SET has received complete information. If SET agrees upon, it will send a notification letter to the company and announces to investors not less than 15 days before the securities will begin trading in the new sector.

Case 3: Request by the listed company

Industry-case 3
Industry-case 3-m

Q&As

Income will considered from consolidated financial statements of the listed company and subsidiaries

Operational performance will be considered from total-year period to see which business brings the most income to the company. If it is still unclear, other information such as profits and additional clarifications by the company will be considered.