2016 net profit rose from gain on asset sales
WHA Corporation Outperform (17E TP Bt3.50)
Earnings Review
Close Bt3.06
Property Development February 23, 2017
Beat forecast/Below forecast/In line
2016 net profit rose from gain on asset sales Results date: February 22, 2017 Price Performance (%)
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
0.330
0.295
KT ZMICO vs. consensus Share data
‐33.3%
‐22%
Reuters / Bloomberg
WHA.BK/WHA TB
Paid‐up Shares (m)
14,322.43
Par (Bt)
0.10
Market cap (Bt bn / US$ m) Foreign limit / actual (%)
44.00/1,251.00 49.00/16.03
52 week High / Low (Bt)
3.70/2.62
Avg. daily T/O (shares 000)
81,280.00
NVDR (%)
2.76
Estimated free float (%)
32.92
Beta
1.11
URL
www.wha.co.th
CGR Anti‐corruption
‐ Level 2 (Declared)
Worarat Powpaka Analyst, no. 17992 [email protected] 66 (0) 2624‐6248
Maintain Outperform and the 2017E TP of Bt3.5 We maintain Outperform and the 2017E TP of Bt3.5 with PER of 16X. We will fine‐tune our 2017E forecast after getting more information from the firm. WHA’s 2016 asset monetization is proceeding well as planned. The IPO of WHAUP in 2Q17E will reduce the long‐term financial support of WHA to WHAUP and enable WHA to further its investments in both Thailand and Vietnam this year. WHA announced a 2016 DPS of Bt 0.1536, implying a dividend yield of 5.0%. The stock will go XD on May 4 and the dividend will be paid on May 23, 2017. 4Q16 net profit rose 34.5% YoY and 5541.4% QoQ WHA’s 4Q16 net profit was Bt2.4bn, rising 34.5% YoY and 5541.4% QoQ, 31% below our estimate from a lower‐than‐expected GPM and higher‐ than‐expected SG&A expenses, tax rate and shared loss from associates. 4Q16 revenue from sales of properties, rental and service income was Bt14bn (+63.0% YoY, +975.3% QoQ). The average GPM was 33.2%. WHA realized a shared loss from associates and joint ventures of the power business of Bt155mn (‐140.2% YoY, ‐170.3% QoQ). The SG&A expenses‐ to‐revenue ratio was 4.8% due to a higher revenue base. Interest expenses were Bt577mn (‐17.5% YoY, ‐8.2% QoQ) and the effective tax rate was 23.2%. 2016 net profit increased 48.3% YoY WHA reported 2016 net profit of Bt2.9bn, increasing 48.3% YoY. The high growth in 2016 was mainly from huge asset sales to REIT aimed at acquisition debt repayment. 2016 revenue from sales of properties, rental and service income was Bt16.2bn (+44.3% YoY). The average GPM was 35.9%, better than 35.0% in 2015. Shared profit of associates and joint ventures was flat at Bt1bn. SG&A‐to‐revenue was 7.1%, which was lower than 7.9% in 2015 due to a higher revenue base. Interest expenses were Bt2.4bn (+6.5% YoY) and the effective tax rate was 20.4%. Listing of WHAUP in 2Q17E WHA Utilities and Power PCL. (WHAUP), which is 82.31% held by Hemaraj and 17.7% held by H‐International (SG) Pte. Ltd (100% held by Hemaraj), will launch an IPO in the SET in 2Q17E. The total share offering will not exceed 229.5mn shares or 30% of paid‐up shares. The shares will be comprised of new shares not exceeding 125mn shares; at the same time, H‐International (SG) Pte will sell its current shares not exceeding 104.5mn shares. WHA is offering pre‐emptive rights for its shareholders to subscribe WHAUP at 250: 1 (WHA’s shares: WHAUP’s shares), with total allotted shares of 57,289,722. The Ex‐other benefits date (XB) is Mar 2, 2017. The offering price will be at the same price as the IPO price. Financials and Valuation FY Ended 31 Dec Revenues (Btm) Net profit (Btm) EPS (Bt) EPS growth (%) Core EPS (Bt) Core EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) Normalized PER (x) EV/EBITDA (x) PBV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 4,888 979 0.10 (36.3) 0.10 (36.3) 0.00 0.46 2014 30.1 30.1 21.6 6.6 0.0 22.7 152.6
2015 11,437 1,954 0.14 34.4 0.14 34.4 0.00 1.51 2015 22.4 22.4 20.5 2.0 0.0 14.9 201.7
2016 17,821 2,898 0.20 48.3 0.20 48.3 0.15 1.53 2016 15.1 15.1 13.5 2.0 5.0 13.3 170.4
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 12,288 3,166 0.22 9.2 0.22 9.2 0.08 1.62 2017E 13.8 13.8 18.6 1.9 2.5 14.0 159.3
2018E 13,104 3,286 0.23 3.8 0.23 3.8 0.08 1.78 2018E 13.3 13.3 16.8 1.7 2.6 13.5 128.5
Figure 1: Quarterly earnings review Profit and Loss (Btmn)
FY Ended 31 Dec Rental and service income
4Q15 840
3Q16 983
4Q16 958
% YoY 14.0
% QoQ (2.6)
2015 1,993
2016 2,261
% YoY 13.5
Sales of investment properties
7,735
0
13,023
68.4
N.M.
4,536
10,690
135.7
Total revenue
8,575
1,300
13,981
63.0
975.3
11,437
17,821
55.8
Gross profit
2,515
678
4,639
84.4
583.9
4,006
6,406
59.9
EBITDA
2,492
648
4,284
71.9
561.4
4,275
6,032
41.1
Interest expense
(699)
(628)
(577)
(17.5)
(8.2)
(2,284)
(2,432)
6.5
Other income
235
108
163
(30.4)
51.3
627
498
(20.6)
Income tax
(32)
(12)
(826)
2,445.9
6,631.3
(87)
(813)
833.8
Gn (Ls) from affiliates Net profit (loss)
385
220
(155)
(140.2)
(170.3)
1,038
1,006
(3.1)
1,785
43
2,401
34.5
5,541.4
1,954
2,898
48.3
Core net profit (loss)
1,784
43
2,401
34.6
5,541.4
1,954
2,898
48.3
Reported EPS (THB)
0.12
0.00
0.17
34.5
5,541.4
0.14
0.20
48.3
Core EPS (THB)
0.12
0.00
0.17
34.6
5,541.4
0.14
0.20
48.3
Gross margin ‐ overall (%)
29.3
52.2
33.2
35.0
35.9
EBITDA margin (%)
29.1
49.8
30.6
37.4
33.8
Net margin (%)
20.8
3.3
17.2
17.1
16.3
Current ratio (x)
1.3
1.2
1.4
1.3
1.4
Interest coverage (x)
3.2
0.8
7.2
1.5
2.2
Debt / equity (x)
2.7
3.1
2.4
2.7
2.4
BVPS (Bt)
1.30
1.34
1.50
1.51
1.50
ROE (%)
10.2
11.5
13.9
14.9
13.9
Source: WHA, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 3
Note: KT ZMICO has two major shareholders, Krungthai Bank PLC (KTB) and Seamico Securities PLC (ZMICO). Therefore, prior to making investments in the securities of KTB and ZMICO, investors should consider the risk factors carefully. An executive of KT ZMICO Securities is also a board member of BCP, BTC, CI, CPI, KBS, MAJOR, MK, PACE, PSL, SVH, VNG, ZMICO, SAWAD, TFG. A management member of KT ZMICO Securities is also a board member of BTC and NFC. KT ZMICO is a financial advisor for U, LOXLEY, ZMICO, MAKRO, CPALL, SAFARI, M‐CHAI, TFD. KT ZMICO is a co underwriter of RPH.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD)
Excellent (scores: 90 ‐ 100) Satisfactory (scores: 60 – 69) Very Good (scores: 80 – 89) Pass (scores: 50 – 59) Good (scores: 70 – 79) No Logo N/A (scores: below 50) Anti‐corruption Progress Indicator Source: Sec, Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC) Level 1 (Committed) : Organization’s statement or board's resolution to work against corruption and to be in compliance with all relevant laws.
Level 2 (Declared) : Public declaration statement to participate in Thailand's private sector Collective Action Coalition Against Corruption (CAC) or equivalent initiatives Level 3 (Established) : Public out preventive measures, risk assessment, communication and training for all employees, including consistent monitoring and review processes Level 4 (Certified) : Audit engagement by audit committee or auditors approved by the office of SEC, and receiving certification or assurance by independent external assurance providers (CAC etc.) Level 5 (Extended) : Extension of the anti‐corruption policy to business partners in the supply chain, and disclosure of any current investigations, prosecutions or closed cases Insufficient or not clearly defined policy Data not available / no policy
DISCLAIMER This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS
SECTOR RECOMMENDATIONS
BUY: Expecting positive total returns of 15% or more OVERWEIGHT: The industry, as defined by the analyst's over the next 12 months coverage universe, is expected to outperform the relevant OUTPERFORM: Expecting total returns between ‐10% primary market index by at least 10% over the next 12 months. to +15%; returns expected to exceed market returns NEUTRAL: The industry, as defined by the analyst's coverage over a six‐month period due to specific catalysts universe, is expected to perform in line with the relevant UNDERPERFORM: Expecting total returns between primary market index over the next 12 months. ‐10% to +15%; returns expected to be below market UNDERWEIGHT: The industry, as defined by the analyst's returns over a six‐month period due to specific coverage universe, is expected to underperform the relevant catalysts primary market index by 10% over the next 12 months. SELL: Expecting negative total returns of 10% or more over the next 12 months
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 3
KT ZMICO Securities Company Limited Head Office
WWW.KTZMICO.COM
8th, 15th‐17th,19th, 21st Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok, Thailand 10500 Telephone: (66‐2) 695‐5000 Fax: (66‐2) 695‐5173 KT ZMICO Connect 662 695 5555
Central World Branch
Amarin Branch
22nd Floor, Amarin Building, 496‐502 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 018‐6200 Fax: (66‐2) 018‐6298, (66‐2) 018‐6299
8th Floor, Ton Son Tower, 900 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 626‐6000 Fax: (66‐2) 626‐6111
Phaholyothin Branch
Sindhorn Branch
Viphavadee Branch
2nd Floor, Sindhorn Tower 1, 130‐132 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 627‐3550 Fax: (66‐2) 627‐3582, 627‐3600
G Floor, Lao Peng Nguan 1 Bldg., 333 Soi Cheypuand, Viphavadee‐Rangsit Road, Ladyao, Jatujak, Bangkok 10900 Telephone: (66‐2) 013‐8600 Fax: (66‐2) 618‐8569
BangKhae Branch
Chiang Mai Branch
Pak Chong Branch
999/9 The Offices at Central World, 16th Fl., Rama 1 Rd, Pathumwan, Bangkok 10330 Telephone: (66‐2) 264‐5888 Fax: (66‐2) 264 5899
1291/1, Shinnawatra Tower II, 3rd Floor, Phaholyothin Road, Phayathai, Bangkok 10400 Telephone: (66‐2) 686‐1500 Fax: (66‐2) 686‐1666
Ploenchit Branch
518 The Mall Group Building Bangkhae Branch, 6th Floor, Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Telephone: (66‐2) 454‐9979 Fax: (66‐2) 454‐9970
422/49 Changklan Road, Changklan Subdistrict, Amphoe Meuang, Chiang Mai 50100 Telephone: (053) 270‐072 Fax: (053) 272‐618
173 175, Mittapap Road, Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Telephone: (044) 279‐511 Fax: (044) 279‐574
Korat Branch
Khon Kaen Branch
Chonburi Branch
624/9 Changphuek Road, T.Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171
5th Floor, Charoen Thani Princess Hotel, 260 Srichan Road, T. Naimuang, A. Muang, Khon Kaen 40000 Telephone: (043) 389‐171‐193 Fax: (043) 389‐209
4th Floor, Forum Plaza Bldg., 870/52 Sukhumvit Road, T. Bangplasoy, A. Muang, Cholburi 20000 Telephone: (038) 287‐635 Fax: (038) 287‐637
Pattaya Branch
Chachoengsao Branch
Hat Yai Branch
Easy Point 2, 392/65 Moo.9, T.Nong Prue, A. Bang Lamung, Chonburi 20260 Telephone: (038) 420‐965 Fax: (038) 420‐968
108/34‐36 Mahajakkrapad Road, T.Namuang, A.Muang, Chachoengsao 24000 Telephone: (038) 813‐088 Fax: (038) 813‐099
200/301, 200/303 JULDIS HATYAI PLAZA Floor 3 , Niphat‐Uthit 3 Rd, Hatyai Songkhla 90110 Telephone: (074) 355530‐3 Fax: (074) 355534
Phuket Branch
22/61‐63, Luang Por Wat Chalong Road, Talat Yai, Mueang Phuket, Phuket 83000 Telephone: (076) 222‐811, (076) 222‐683 Fax: (076) 222‐861
Phitsanulok Branch
227/171 Borom Trilokkanat Road, Muang, Phitsanulok 65000 Telephone: 055‐219‐255 to 8 Fax: 055‐219‐259
Nakhon Pathom
Cyber Branch Ayutthaya
Cyber Branch @ North Nana
Cyber Branch Chiangrai
KrungThai Bank, Rojana Branch 253 Moo 5, Rojana Road, Phai Ling, Phra Nakhon Si Ayutthaya, Phra Nakhonsi Ayutthaya, 13000 Telephone: 035‐242‐477 Fax: 035‐242‐476
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd., Klong Toey Nua Subdistrict , Wattana District , Bangkok 10110 Telephone: 083‐490‐2871
River Hotel (Building 3rd),1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
KrungThai Bank, Hayaek Phokhun Mengrai Branch 116/19 Moo 19, Highway 110 Road, Rop Wiang, Mueang Chiang Rai, Chiang Rai, 57000 Telephone: 053‐715‐067 Fax: 053‐715‐068
Earnings Review
Close Bt3.06
Property Development February 23, 2017
Beat forecast/Below forecast/In line
2016 net profit rose from gain on asset sales Results date: February 22, 2017 Price Performance (%)
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
0.330
0.295
KT ZMICO vs. consensus Share data
‐33.3%
‐22%
Reuters / Bloomberg
WHA.BK/WHA TB
Paid‐up Shares (m)
14,322.43
Par (Bt)
0.10
Market cap (Bt bn / US$ m) Foreign limit / actual (%)
44.00/1,251.00 49.00/16.03
52 week High / Low (Bt)
3.70/2.62
Avg. daily T/O (shares 000)
81,280.00
NVDR (%)
2.76
Estimated free float (%)
32.92
Beta
1.11
URL
www.wha.co.th
CGR Anti‐corruption
‐ Level 2 (Declared)
Worarat Powpaka Analyst, no. 17992 [email protected] 66 (0) 2624‐6248
Maintain Outperform and the 2017E TP of Bt3.5 We maintain Outperform and the 2017E TP of Bt3.5 with PER of 16X. We will fine‐tune our 2017E forecast after getting more information from the firm. WHA’s 2016 asset monetization is proceeding well as planned. The IPO of WHAUP in 2Q17E will reduce the long‐term financial support of WHA to WHAUP and enable WHA to further its investments in both Thailand and Vietnam this year. WHA announced a 2016 DPS of Bt 0.1536, implying a dividend yield of 5.0%. The stock will go XD on May 4 and the dividend will be paid on May 23, 2017. 4Q16 net profit rose 34.5% YoY and 5541.4% QoQ WHA’s 4Q16 net profit was Bt2.4bn, rising 34.5% YoY and 5541.4% QoQ, 31% below our estimate from a lower‐than‐expected GPM and higher‐ than‐expected SG&A expenses, tax rate and shared loss from associates. 4Q16 revenue from sales of properties, rental and service income was Bt14bn (+63.0% YoY, +975.3% QoQ). The average GPM was 33.2%. WHA realized a shared loss from associates and joint ventures of the power business of Bt155mn (‐140.2% YoY, ‐170.3% QoQ). The SG&A expenses‐ to‐revenue ratio was 4.8% due to a higher revenue base. Interest expenses were Bt577mn (‐17.5% YoY, ‐8.2% QoQ) and the effective tax rate was 23.2%. 2016 net profit increased 48.3% YoY WHA reported 2016 net profit of Bt2.9bn, increasing 48.3% YoY. The high growth in 2016 was mainly from huge asset sales to REIT aimed at acquisition debt repayment. 2016 revenue from sales of properties, rental and service income was Bt16.2bn (+44.3% YoY). The average GPM was 35.9%, better than 35.0% in 2015. Shared profit of associates and joint ventures was flat at Bt1bn. SG&A‐to‐revenue was 7.1%, which was lower than 7.9% in 2015 due to a higher revenue base. Interest expenses were Bt2.4bn (+6.5% YoY) and the effective tax rate was 20.4%. Listing of WHAUP in 2Q17E WHA Utilities and Power PCL. (WHAUP), which is 82.31% held by Hemaraj and 17.7% held by H‐International (SG) Pte. Ltd (100% held by Hemaraj), will launch an IPO in the SET in 2Q17E. The total share offering will not exceed 229.5mn shares or 30% of paid‐up shares. The shares will be comprised of new shares not exceeding 125mn shares; at the same time, H‐International (SG) Pte will sell its current shares not exceeding 104.5mn shares. WHA is offering pre‐emptive rights for its shareholders to subscribe WHAUP at 250: 1 (WHA’s shares: WHAUP’s shares), with total allotted shares of 57,289,722. The Ex‐other benefits date (XB) is Mar 2, 2017. The offering price will be at the same price as the IPO price. Financials and Valuation FY Ended 31 Dec Revenues (Btm) Net profit (Btm) EPS (Bt) EPS growth (%) Core EPS (Bt) Core EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) Normalized PER (x) EV/EBITDA (x) PBV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 4,888 979 0.10 (36.3) 0.10 (36.3) 0.00 0.46 2014 30.1 30.1 21.6 6.6 0.0 22.7 152.6
2015 11,437 1,954 0.14 34.4 0.14 34.4 0.00 1.51 2015 22.4 22.4 20.5 2.0 0.0 14.9 201.7
2016 17,821 2,898 0.20 48.3 0.20 48.3 0.15 1.53 2016 15.1 15.1 13.5 2.0 5.0 13.3 170.4
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 12,288 3,166 0.22 9.2 0.22 9.2 0.08 1.62 2017E 13.8 13.8 18.6 1.9 2.5 14.0 159.3
2018E 13,104 3,286 0.23 3.8 0.23 3.8 0.08 1.78 2018E 13.3 13.3 16.8 1.7 2.6 13.5 128.5
Figure 1: Quarterly earnings review Profit and Loss (Btmn)
FY Ended 31 Dec Rental and service income
4Q15 840
3Q16 983
4Q16 958
% YoY 14.0
% QoQ (2.6)
2015 1,993
2016 2,261
% YoY 13.5
Sales of investment properties
7,735
0
13,023
68.4
N.M.
4,536
10,690
135.7
Total revenue
8,575
1,300
13,981
63.0
975.3
11,437
17,821
55.8
Gross profit
2,515
678
4,639
84.4
583.9
4,006
6,406
59.9
EBITDA
2,492
648
4,284
71.9
561.4
4,275
6,032
41.1
Interest expense
(699)
(628)
(577)
(17.5)
(8.2)
(2,284)
(2,432)
6.5
Other income
235
108
163
(30.4)
51.3
627
498
(20.6)
Income tax
(32)
(12)
(826)
2,445.9
6,631.3
(87)
(813)
833.8
Gn (Ls) from affiliates Net profit (loss)
385
220
(155)
(140.2)
(170.3)
1,038
1,006
(3.1)
1,785
43
2,401
34.5
5,541.4
1,954
2,898
48.3
Core net profit (loss)
1,784
43
2,401
34.6
5,541.4
1,954
2,898
48.3
Reported EPS (THB)
0.12
0.00
0.17
34.5
5,541.4
0.14
0.20
48.3
Core EPS (THB)
0.12
0.00
0.17
34.6
5,541.4
0.14
0.20
48.3
Gross margin ‐ overall (%)
29.3
52.2
33.2
35.0
35.9
EBITDA margin (%)
29.1
49.8
30.6
37.4
33.8
Net margin (%)
20.8
3.3
17.2
17.1
16.3
Current ratio (x)
1.3
1.2
1.4
1.3
1.4
Interest coverage (x)
3.2
0.8
7.2
1.5
2.2
Debt / equity (x)
2.7
3.1
2.4
2.7
2.4
BVPS (Bt)
1.30
1.34
1.50
1.51
1.50
ROE (%)
10.2
11.5
13.9
14.9
13.9
Source: WHA, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 3
Note: KT ZMICO has two major shareholders, Krungthai Bank PLC (KTB) and Seamico Securities PLC (ZMICO). Therefore, prior to making investments in the securities of KTB and ZMICO, investors should consider the risk factors carefully. An executive of KT ZMICO Securities is also a board member of BCP, BTC, CI, CPI, KBS, MAJOR, MK, PACE, PSL, SVH, VNG, ZMICO, SAWAD, TFG. A management member of KT ZMICO Securities is also a board member of BTC and NFC. KT ZMICO is a financial advisor for U, LOXLEY, ZMICO, MAKRO, CPALL, SAFARI, M‐CHAI, TFD. KT ZMICO is a co underwriter of RPH.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD)
Excellent (scores: 90 ‐ 100) Satisfactory (scores: 60 – 69) Very Good (scores: 80 – 89) Pass (scores: 50 – 59) Good (scores: 70 – 79) No Logo N/A (scores: below 50) Anti‐corruption Progress Indicator Source: Sec, Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC) Level 1 (Committed) : Organization’s statement or board's resolution to work against corruption and to be in compliance with all relevant laws.
Level 2 (Declared) : Public declaration statement to participate in Thailand's private sector Collective Action Coalition Against Corruption (CAC) or equivalent initiatives Level 3 (Established) : Public out preventive measures, risk assessment, communication and training for all employees, including consistent monitoring and review processes Level 4 (Certified) : Audit engagement by audit committee or auditors approved by the office of SEC, and receiving certification or assurance by independent external assurance providers (CAC etc.) Level 5 (Extended) : Extension of the anti‐corruption policy to business partners in the supply chain, and disclosure of any current investigations, prosecutions or closed cases Insufficient or not clearly defined policy Data not available / no policy
DISCLAIMER This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS
SECTOR RECOMMENDATIONS
BUY: Expecting positive total returns of 15% or more OVERWEIGHT: The industry, as defined by the analyst's over the next 12 months coverage universe, is expected to outperform the relevant OUTPERFORM: Expecting total returns between ‐10% primary market index by at least 10% over the next 12 months. to +15%; returns expected to exceed market returns NEUTRAL: The industry, as defined by the analyst's coverage over a six‐month period due to specific catalysts universe, is expected to perform in line with the relevant UNDERPERFORM: Expecting total returns between primary market index over the next 12 months. ‐10% to +15%; returns expected to be below market UNDERWEIGHT: The industry, as defined by the analyst's returns over a six‐month period due to specific coverage universe, is expected to underperform the relevant catalysts primary market index by 10% over the next 12 months. SELL: Expecting negative total returns of 10% or more over the next 12 months
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 3
KT ZMICO Securities Company Limited Head Office
WWW.KTZMICO.COM
8th, 15th‐17th,19th, 21st Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok, Thailand 10500 Telephone: (66‐2) 695‐5000 Fax: (66‐2) 695‐5173 KT ZMICO Connect 662 695 5555
Central World Branch
Amarin Branch
22nd Floor, Amarin Building, 496‐502 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 018‐6200 Fax: (66‐2) 018‐6298, (66‐2) 018‐6299
8th Floor, Ton Son Tower, 900 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 626‐6000 Fax: (66‐2) 626‐6111
Phaholyothin Branch
Sindhorn Branch
Viphavadee Branch
2nd Floor, Sindhorn Tower 1, 130‐132 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 627‐3550 Fax: (66‐2) 627‐3582, 627‐3600
G Floor, Lao Peng Nguan 1 Bldg., 333 Soi Cheypuand, Viphavadee‐Rangsit Road, Ladyao, Jatujak, Bangkok 10900 Telephone: (66‐2) 013‐8600 Fax: (66‐2) 618‐8569
BangKhae Branch
Chiang Mai Branch
Pak Chong Branch
999/9 The Offices at Central World, 16th Fl., Rama 1 Rd, Pathumwan, Bangkok 10330 Telephone: (66‐2) 264‐5888 Fax: (66‐2) 264 5899
1291/1, Shinnawatra Tower II, 3rd Floor, Phaholyothin Road, Phayathai, Bangkok 10400 Telephone: (66‐2) 686‐1500 Fax: (66‐2) 686‐1666
Ploenchit Branch
518 The Mall Group Building Bangkhae Branch, 6th Floor, Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Telephone: (66‐2) 454‐9979 Fax: (66‐2) 454‐9970
422/49 Changklan Road, Changklan Subdistrict, Amphoe Meuang, Chiang Mai 50100 Telephone: (053) 270‐072 Fax: (053) 272‐618
173 175, Mittapap Road, Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Telephone: (044) 279‐511 Fax: (044) 279‐574
Korat Branch
Khon Kaen Branch
Chonburi Branch
624/9 Changphuek Road, T.Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171
5th Floor, Charoen Thani Princess Hotel, 260 Srichan Road, T. Naimuang, A. Muang, Khon Kaen 40000 Telephone: (043) 389‐171‐193 Fax: (043) 389‐209
4th Floor, Forum Plaza Bldg., 870/52 Sukhumvit Road, T. Bangplasoy, A. Muang, Cholburi 20000 Telephone: (038) 287‐635 Fax: (038) 287‐637
Pattaya Branch
Chachoengsao Branch
Hat Yai Branch
Easy Point 2, 392/65 Moo.9, T.Nong Prue, A. Bang Lamung, Chonburi 20260 Telephone: (038) 420‐965 Fax: (038) 420‐968
108/34‐36 Mahajakkrapad Road, T.Namuang, A.Muang, Chachoengsao 24000 Telephone: (038) 813‐088 Fax: (038) 813‐099
200/301, 200/303 JULDIS HATYAI PLAZA Floor 3 , Niphat‐Uthit 3 Rd, Hatyai Songkhla 90110 Telephone: (074) 355530‐3 Fax: (074) 355534
Phuket Branch
22/61‐63, Luang Por Wat Chalong Road, Talat Yai, Mueang Phuket, Phuket 83000 Telephone: (076) 222‐811, (076) 222‐683 Fax: (076) 222‐861
Phitsanulok Branch
227/171 Borom Trilokkanat Road, Muang, Phitsanulok 65000 Telephone: 055‐219‐255 to 8 Fax: 055‐219‐259
Nakhon Pathom
Cyber Branch Ayutthaya
Cyber Branch @ North Nana
Cyber Branch Chiangrai
KrungThai Bank, Rojana Branch 253 Moo 5, Rojana Road, Phai Ling, Phra Nakhon Si Ayutthaya, Phra Nakhonsi Ayutthaya, 13000 Telephone: 035‐242‐477 Fax: 035‐242‐476
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd., Klong Toey Nua Subdistrict , Wattana District , Bangkok 10110 Telephone: 083‐490‐2871
River Hotel (Building 3rd),1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
KrungThai Bank, Hayaek Phokhun Mengrai Branch 116/19 Moo 19, Highway 110 Road, Rop Wiang, Mueang Chiang Rai, Chiang Rai, 57000 Telephone: 053‐715‐067 Fax: 053‐715‐068
