3Q16 core earnings below view
Total Access Communication Sell (17E TP Bt29.00)
Earnings Review
Close Bt31.00
ICT
Beat forecast/Below forecast/In line
October 21, 2016
3Q16 core earnings below view Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
1.238
1.172
KT ZMICO vs. consensus Share data
‐19.2%
46.8%
Reuters / Bloomberg
DTAC.BK/DTAC TB
Paid‐up Shares (m)
2,367.81
Par (Bt)
2.00
Market cap (Bt bn / US$ m)
73.00/2,098.00
Foreign limit / actual (%)
49.00/45.01
52 week High / Low (Bt)
68.00/27.50
Avg. daily T/O (shares 000) NVDR (%)
17,296.00 5.26
Estimated free float (%)
29.36
Beta
2.10
URL
www.dtac.co.th
CGR
Anti‐corruption
Level 4 (Certified)
Waraporn Wiboonkanarak Analyst, no. 2482 [email protected] 66 (0) 2624‐6273
Earnings upside limited; SELL maintained DTAC’s operating performance has bottomed out, but the intensified competition will limit the improvement of momentum. This together with the unattractive yield causes us to leave our SELL rating unchanged despite its undemanding valuation for 2016E of 3.7x EV/EBITDA. 3Q16 NP below our estimate DTAC reported a net profit of Bt659mn (EPS: Bt0.28) in 3Q16, decreasing 46%YoY. This was 12% below our estimate, but beat the market consensus by 5%. The weaker‐than‐expected earnings were mainly because of a higher loss on handset sales. DTAC recorded a ‐32% handset sales margin vs. our estimate of ‐25%. Weak core earnings on cost pressure DTAC’s core earnings dropped 59%YoY on accelerating costs from continued network expansion and negative handset margin. Its service revenue ex IC fell 1.2%YoY to Bt16bn as strong growth in data revenue (+20%YoY) was insufficient to offset the decline in voice revenue (‐ 23%YoY). Its cost of services ex IC continued to climb by 7.6%YoY due to higher D&A from network expansion. Its SG&A to revenue stood at 21%. The intensified market competition and growth in postpaid bundled with device offers led to a wider negative margin to ‐32% from 19% last year. Nevertheless, its EBITDA margin improved to 37% from 36% on lower regulatory and administrative costs. On a QoQ basis, stripping out one‐time restructuring costs, its core profit jumped 21% on EBITDA expansion as a result of lower handset subsidy and selling expenses. Revises up EBITDA guidance DTAC keeps its guidance of a slight YoY decline in revenue ex IC and CAPEX of Bt20bn unchanged. However, it revised the EBITDA guidance from an EBITDA margin of 31‐33% and now expects it to reach at least the same level as last year. It seems that the management has a bit more positive view, translating to an EBITDA margin of 32‐34% on the assumption of a slight drop in revenue YoY. Its 9M16 NP of Bt2.1bn represents 87% of our full‐year forecast. With the positive development on postpaid subscribers and good cost control, we may fine‐tune our earnings forecasts after the analyst meeting today. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm EPS (Bt) Norm EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec Norm. PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 90,415 10,729 4.53 4.53 ‐1.1% 6.91 13.77 2014 21.30 8.30 7.01 7.2% 32.9% 85.4%
2015 87,753 5,893 2.49 2.61 ‐42.4% 2.41 11.50 2015 12.15 3.92 2.63 8.0% 20.7% 139.1%
2016E 83,901 2,356 1.00 1.13 ‐56.7% 0.70 11.55 2016E 31.14 3.69 2.68 2.2% 9.8% 104.2%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 83,213 4,083 1.72 1.72 52.3% 1.21 12.40 2017E 17.98 3.33 2.50 3.9% 14.4% 92.8%
2018E 83,919 4,022 1.70 1.70 ‐1.5% 1.19 12.90 2018E 18.25 3.60 2.40 3.8% 13.4% 136.4%
Figure 1: Earnings review Profit and Loss Statement (Btmn) Fiscal Year‐Ended Dec. Service Revenue Sales Revenue Gross Profit EBITDA Interest Expense Other income Net profit (loss) Core profit (loss) Reported EPS (THB) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt to equity (x) BVPS (Bt) ROE (%)
3Q15 17,598 1,901 19,695 6,345 7,090 379 169 1,228 1,583 0.52 32.2% 36.0% 6.2% 0.66 6.16 3.28 11.80 26.0%
2Q16 17,195 2,331 19,799 5,326 6,606 403 50 141 539 0.06 26.9% 33.4% 0.7% 0.74 1.42 3.14 11.57 17.5%
3Q16 17,320 1,949 19,537 5,288 7,191 383 57 659 652 0.28 27.1% 36.8% 3.4% 0.84 3.21 3.23 11.43 13.2%
%QoQ 0.7% ‐16.4% ‐1.3% ‐0.7% 8.9% ‐4.8% 13.3% 366.2% 21.0% 366.2% 0.2% 3.4% 2.7%
‐1.2%
%YoY ‐1.6% 2.5% ‐0.8% ‐16.7% 1.4% 1.1% ‐66.3% ‐46.3% ‐58.8% ‐46.3% ‐5.1% 0.8% ‐2.9%
9M16 52,136 8,117 61,012 16,987 21,123 1,190 158 2,056 2,373 0.87 27.8% 34.6% 3.4% 0.84 3.12 3.23 ‐1.2% 11.43 13.2%
%YoY ‐3.5% ‐19.9% ‐5.4% ‐10.5% ‐0.3% 17.6% ‐28.3% ‐58.0% ‐54.8% ‐58.0%
2016E 69,875 13,099 83,900 22,713 27,601 1,604 213 2,357 2,681 1.00 27.1% 32.9% 2.8% 0.53 2.79 2.77 11.55 9.8%
YTD %YoY (% of 2016E) ‐2.8% 74.6% ‐15.0% 62.0% ‐4.4% 72.7% ‐10.0% 74.8% ‐1.2% 76.5% 15.9% 74.2% ‐28.3% 74.0% ‐60.0% 87.2% ‐56.7% 88.5% ‐60.0% 87.2% ‐1.7% 1.1% ‐3.9%
0.5%
Source: DTAC and KT Zmico Research Figure 2: PER and EV/EBITDA band
PER (x) 45.0
+2SD = 41.0x
40.0
EV/EBITDA (x)
12.0
+2.0SD = 10.8x
10.0
35.0
+1SD = 8.5x
30.0
+1SD = 25.9x
25.0
8.0
Avearge = 18.4x
6.0
Average= 6.3x
‐1SD = 10.8x
4.0
‐1SD = 4.0x
5.0
2.0
‐1.5SD = 2.9x
‐
0.0
20.0 15.0
Source: Bloomberg and KT Zmico Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 3
Oct‐16
Jan‐16
May‐15
Dec‐13
Aug‐14
Mar‐13
Jun‐12
Oct‐11
Jan‐11
May‐10
Aug‐09
Nov‐08
Mar‐08
Jun‐07
Oct‐16
Nov‐15
Dec‐14
Jan‐14
Jan‐13
Feb‐12
Mar‐11
Apr‐10
May‐09
May‐08
Jun‐07
10.0
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, PACE, TPOLY, M‐CHAI, TFD, SUTHA. KT ZMICO is a co‐underwriter of RJH, BCPG, ITEL, SQ, ALLA, BPP.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD) Excellent (scores: 90 ‐ 100) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) 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
th
th
th
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KT•ZMICO Securities Company Limited
st
8 , 15 -17 , 19 , 21 Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok 10500 Telephone: (66-2) 695-5000
Phaholyothin Branch
rd
Fax. (66-2) 631-1709
Ploenchit Branch
th
nd
2
Sindhorn Branch
3 Floor, Shinnawatra Tower II,
8 Floor, Ton Son Tower,
1291/1 Phaholyothin Road,
900 Ploenchit Road, Lumpini,
Floor, Sindhorn Tower 1, 130-132 Wireless Road, Lumpini,
Phayathai, Bangkok 10400
Pathumwan, Bangkok 10330
Pathumwan, Bangkok 10330
Telephone: (66-2) 686-1500
Telephone: (66-2) 626-6000
Telephone: (66-2) 627-3550
Fax. (66-2) 686-1666
Fax. (66-2) 626-6111
Fax. (66-2) 627-3582, 627-3600
Nakhon Pathom Branch 1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
Chachoengsao Branch
Viphavadee Branch
Phitsanulok Branch
G Floor, Lao Peng Nguan 1 Bldg.,
Krung Thai Bank, Singhawat Branch
333 Soi Cheypuand, Viphavadee-Rangsit Road,
114 Singhawat Road,
Ladyao, Jatujak, Bangkok 10900
Muang, Phitsanulok 65000
Telephone: (66-2) 618-8500
Telephone: 083-490-2873
Fax. (66-2) 618-8569
th
Chonburi Branch
Pattaya Branch
108/34-36 Mahajakkrapad Road,
4 Floor, Forum Plaza Bldg.,
382/6-8 Moo 9, T. NongPrue,
T.Namuang, A.Muang,
870/52 Sukhumvit Road, T. Bangplasoy,
A. Banglamung, Cholburi 20260
Chachoengsao 24000
A. Muang, Cholburi 20000
Telephone: (038) 362-420-9
Telephone: (038) 813-088
Telephone: (038) 287-635
Fax. (038) 362-430
Fax. (038) 813-099
Fax. (038) 287-637
Khon Kaen Branch
5th Floor, Charoen Thani Princess Hotel,
Hat Yai Branch
Sriworajak Building Branch
200/301 Juldis Hatyai Plaza Floor 3,
1st – 2nd Floor, Sriworajak Building, 222
260 Srichan Road, T. Naimuang,
Niphat-Uthit 3 Rd,
Luang Road, Pomprab,
A. Muang, Khon Kaen 40000
Hatyai Songkhla 90110
Bankgok 10100
Telephone: (043) 389-171-193
Telephone: (074) 355-530-3
Telephone: (02) 689-3100
Fax. (043) 389-209
Fax: (074) 355-534
Fax. (02) 689-3199
Central World Branch
Chiang Mai Branch
Phuket Branch
999/9 The Offices at Central World,
422/49 Changklan Road, Changklan
22/61-63, Luang Por Wat Chalong Road,
16th Fl., Rama 1 Rd, Pathumwan,
Subdistrict, Amphoe Meuang,
Talat Yai, Mueang Phuket,
Bangkok 10330
Chiang Mai 50100
Phuket 83000
Telephone: (66-2) 673-5000,
Telephone: (053) 270-072
Tel. (076) 222-811,(076) 222-683
(66-2) 264-5888 Fax. (66-2) 264-5899
Fax: (053) 272-618
Fax. (076) 222-861
Pak Chong Branch
Cyber Branch @ North Nana
173 175, Mittapap Road,
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd.,Klong Toey Nua Subdistrict , Wattana District, Bangkok 10110 Telephone: 083-490-2871
Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Tel. (044) 279-511 Fax. (044) 279-574
Nakhon Ratchasima Branch
Bangkhae Branch
6th Floor The Mall Group Building Bangkhae 275 Moo 1 Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Tel. (66-2) 454-9979 Fax. (66-2) 454-9970
624/9 Changphuek Road, . Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171 Information herein was obtained from sources believed to be reliable, but its completeness and accuracy are not guaranteed. All opinions expressed constitute our views on that date and are not intended as an offer or solicitation to sell or buy any securities. Investors should exercise care when making a decision to invest in securities. No one may modify or distribute any part of this report unless written permission is first received from Seamico Securities Plc. If any modifications are made, quotes or references taken from the report and the report date must be clearly mentioned and must not cause misunderstanding or damage to the company.
Earnings Review
Close Bt31.00
ICT
Beat forecast/Below forecast/In line
October 21, 2016
3Q16 core earnings below view Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
1.238
1.172
KT ZMICO vs. consensus Share data
‐19.2%
46.8%
Reuters / Bloomberg
DTAC.BK/DTAC TB
Paid‐up Shares (m)
2,367.81
Par (Bt)
2.00
Market cap (Bt bn / US$ m)
73.00/2,098.00
Foreign limit / actual (%)
49.00/45.01
52 week High / Low (Bt)
68.00/27.50
Avg. daily T/O (shares 000) NVDR (%)
17,296.00 5.26
Estimated free float (%)
29.36
Beta
2.10
URL
www.dtac.co.th
CGR
Anti‐corruption
Level 4 (Certified)
Waraporn Wiboonkanarak Analyst, no. 2482 [email protected] 66 (0) 2624‐6273
Earnings upside limited; SELL maintained DTAC’s operating performance has bottomed out, but the intensified competition will limit the improvement of momentum. This together with the unattractive yield causes us to leave our SELL rating unchanged despite its undemanding valuation for 2016E of 3.7x EV/EBITDA. 3Q16 NP below our estimate DTAC reported a net profit of Bt659mn (EPS: Bt0.28) in 3Q16, decreasing 46%YoY. This was 12% below our estimate, but beat the market consensus by 5%. The weaker‐than‐expected earnings were mainly because of a higher loss on handset sales. DTAC recorded a ‐32% handset sales margin vs. our estimate of ‐25%. Weak core earnings on cost pressure DTAC’s core earnings dropped 59%YoY on accelerating costs from continued network expansion and negative handset margin. Its service revenue ex IC fell 1.2%YoY to Bt16bn as strong growth in data revenue (+20%YoY) was insufficient to offset the decline in voice revenue (‐ 23%YoY). Its cost of services ex IC continued to climb by 7.6%YoY due to higher D&A from network expansion. Its SG&A to revenue stood at 21%. The intensified market competition and growth in postpaid bundled with device offers led to a wider negative margin to ‐32% from 19% last year. Nevertheless, its EBITDA margin improved to 37% from 36% on lower regulatory and administrative costs. On a QoQ basis, stripping out one‐time restructuring costs, its core profit jumped 21% on EBITDA expansion as a result of lower handset subsidy and selling expenses. Revises up EBITDA guidance DTAC keeps its guidance of a slight YoY decline in revenue ex IC and CAPEX of Bt20bn unchanged. However, it revised the EBITDA guidance from an EBITDA margin of 31‐33% and now expects it to reach at least the same level as last year. It seems that the management has a bit more positive view, translating to an EBITDA margin of 32‐34% on the assumption of a slight drop in revenue YoY. Its 9M16 NP of Bt2.1bn represents 87% of our full‐year forecast. With the positive development on postpaid subscribers and good cost control, we may fine‐tune our earnings forecasts after the analyst meeting today. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm EPS (Bt) Norm EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec Norm. PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 90,415 10,729 4.53 4.53 ‐1.1% 6.91 13.77 2014 21.30 8.30 7.01 7.2% 32.9% 85.4%
2015 87,753 5,893 2.49 2.61 ‐42.4% 2.41 11.50 2015 12.15 3.92 2.63 8.0% 20.7% 139.1%
2016E 83,901 2,356 1.00 1.13 ‐56.7% 0.70 11.55 2016E 31.14 3.69 2.68 2.2% 9.8% 104.2%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 83,213 4,083 1.72 1.72 52.3% 1.21 12.40 2017E 17.98 3.33 2.50 3.9% 14.4% 92.8%
2018E 83,919 4,022 1.70 1.70 ‐1.5% 1.19 12.90 2018E 18.25 3.60 2.40 3.8% 13.4% 136.4%
Figure 1: Earnings review Profit and Loss Statement (Btmn) Fiscal Year‐Ended Dec. Service Revenue Sales Revenue Gross Profit EBITDA Interest Expense Other income Net profit (loss) Core profit (loss) Reported EPS (THB) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt to equity (x) BVPS (Bt) ROE (%)
3Q15 17,598 1,901 19,695 6,345 7,090 379 169 1,228 1,583 0.52 32.2% 36.0% 6.2% 0.66 6.16 3.28 11.80 26.0%
2Q16 17,195 2,331 19,799 5,326 6,606 403 50 141 539 0.06 26.9% 33.4% 0.7% 0.74 1.42 3.14 11.57 17.5%
3Q16 17,320 1,949 19,537 5,288 7,191 383 57 659 652 0.28 27.1% 36.8% 3.4% 0.84 3.21 3.23 11.43 13.2%
%QoQ 0.7% ‐16.4% ‐1.3% ‐0.7% 8.9% ‐4.8% 13.3% 366.2% 21.0% 366.2% 0.2% 3.4% 2.7%
‐1.2%
%YoY ‐1.6% 2.5% ‐0.8% ‐16.7% 1.4% 1.1% ‐66.3% ‐46.3% ‐58.8% ‐46.3% ‐5.1% 0.8% ‐2.9%
9M16 52,136 8,117 61,012 16,987 21,123 1,190 158 2,056 2,373 0.87 27.8% 34.6% 3.4% 0.84 3.12 3.23 ‐1.2% 11.43 13.2%
%YoY ‐3.5% ‐19.9% ‐5.4% ‐10.5% ‐0.3% 17.6% ‐28.3% ‐58.0% ‐54.8% ‐58.0%
2016E 69,875 13,099 83,900 22,713 27,601 1,604 213 2,357 2,681 1.00 27.1% 32.9% 2.8% 0.53 2.79 2.77 11.55 9.8%
YTD %YoY (% of 2016E) ‐2.8% 74.6% ‐15.0% 62.0% ‐4.4% 72.7% ‐10.0% 74.8% ‐1.2% 76.5% 15.9% 74.2% ‐28.3% 74.0% ‐60.0% 87.2% ‐56.7% 88.5% ‐60.0% 87.2% ‐1.7% 1.1% ‐3.9%
0.5%
Source: DTAC and KT Zmico Research Figure 2: PER and EV/EBITDA band
PER (x) 45.0
+2SD = 41.0x
40.0
EV/EBITDA (x)
12.0
+2.0SD = 10.8x
10.0
35.0
+1SD = 8.5x
30.0
+1SD = 25.9x
25.0
8.0
Avearge = 18.4x
6.0
Average= 6.3x
‐1SD = 10.8x
4.0
‐1SD = 4.0x
5.0
2.0
‐1.5SD = 2.9x
‐
0.0
20.0 15.0
Source: Bloomberg and KT Zmico Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 3
Oct‐16
Jan‐16
May‐15
Dec‐13
Aug‐14
Mar‐13
Jun‐12
Oct‐11
Jan‐11
May‐10
Aug‐09
Nov‐08
Mar‐08
Jun‐07
Oct‐16
Nov‐15
Dec‐14
Jan‐14
Jan‐13
Feb‐12
Mar‐11
Apr‐10
May‐09
May‐08
Jun‐07
10.0
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, PACE, TPOLY, M‐CHAI, TFD, SUTHA. KT ZMICO is a co‐underwriter of RJH, BCPG, ITEL, SQ, ALLA, BPP.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD) Excellent (scores: 90 ‐ 100) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) 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
th
th
th
th
KT•ZMICO Securities Company Limited
st
8 , 15 -17 , 19 , 21 Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok 10500 Telephone: (66-2) 695-5000
Phaholyothin Branch
rd
Fax. (66-2) 631-1709
Ploenchit Branch
th
nd
2
Sindhorn Branch
3 Floor, Shinnawatra Tower II,
8 Floor, Ton Son Tower,
1291/1 Phaholyothin Road,
900 Ploenchit Road, Lumpini,
Floor, Sindhorn Tower 1, 130-132 Wireless Road, Lumpini,
Phayathai, Bangkok 10400
Pathumwan, Bangkok 10330
Pathumwan, Bangkok 10330
Telephone: (66-2) 686-1500
Telephone: (66-2) 626-6000
Telephone: (66-2) 627-3550
Fax. (66-2) 686-1666
Fax. (66-2) 626-6111
Fax. (66-2) 627-3582, 627-3600
Nakhon Pathom Branch 1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
Chachoengsao Branch
Viphavadee Branch
Phitsanulok Branch
G Floor, Lao Peng Nguan 1 Bldg.,
Krung Thai Bank, Singhawat Branch
333 Soi Cheypuand, Viphavadee-Rangsit Road,
114 Singhawat Road,
Ladyao, Jatujak, Bangkok 10900
Muang, Phitsanulok 65000
Telephone: (66-2) 618-8500
Telephone: 083-490-2873
Fax. (66-2) 618-8569
th
Chonburi Branch
Pattaya Branch
108/34-36 Mahajakkrapad Road,
4 Floor, Forum Plaza Bldg.,
382/6-8 Moo 9, T. NongPrue,
T.Namuang, A.Muang,
870/52 Sukhumvit Road, T. Bangplasoy,
A. Banglamung, Cholburi 20260
Chachoengsao 24000
A. Muang, Cholburi 20000
Telephone: (038) 362-420-9
Telephone: (038) 813-088
Telephone: (038) 287-635
Fax. (038) 362-430
Fax. (038) 813-099
Fax. (038) 287-637
Khon Kaen Branch
5th Floor, Charoen Thani Princess Hotel,
Hat Yai Branch
Sriworajak Building Branch
200/301 Juldis Hatyai Plaza Floor 3,
1st – 2nd Floor, Sriworajak Building, 222
260 Srichan Road, T. Naimuang,
Niphat-Uthit 3 Rd,
Luang Road, Pomprab,
A. Muang, Khon Kaen 40000
Hatyai Songkhla 90110
Bankgok 10100
Telephone: (043) 389-171-193
Telephone: (074) 355-530-3
Telephone: (02) 689-3100
Fax. (043) 389-209
Fax: (074) 355-534
Fax. (02) 689-3199
Central World Branch
Chiang Mai Branch
Phuket Branch
999/9 The Offices at Central World,
422/49 Changklan Road, Changklan
22/61-63, Luang Por Wat Chalong Road,
16th Fl., Rama 1 Rd, Pathumwan,
Subdistrict, Amphoe Meuang,
Talat Yai, Mueang Phuket,
Bangkok 10330
Chiang Mai 50100
Phuket 83000
Telephone: (66-2) 673-5000,
Telephone: (053) 270-072
Tel. (076) 222-811,(076) 222-683
(66-2) 264-5888 Fax. (66-2) 264-5899
Fax: (053) 272-618
Fax. (076) 222-861
Pak Chong Branch
Cyber Branch @ North Nana
173 175, Mittapap Road,
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd.,Klong Toey Nua Subdistrict , Wattana District, Bangkok 10110 Telephone: 083-490-2871
Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Tel. (044) 279-511 Fax. (044) 279-574
Nakhon Ratchasima Branch
Bangkhae Branch
6th Floor The Mall Group Building Bangkhae 275 Moo 1 Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Tel. (66-2) 454-9979 Fax. (66-2) 454-9970
624/9 Changphuek Road, . Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171 Information herein was obtained from sources believed to be reliable, but its completeness and accuracy are not guaranteed. All opinions expressed constitute our views on that date and are not intended as an offer or solicitation to sell or buy any securities. Investors should exercise care when making a decision to invest in securities. No one may modify or distribute any part of this report unless written permission is first received from Seamico Securities Plc. If any modifications are made, quotes or references taken from the report and the report date must be clearly mentioned and must not cause misunderstanding or damage to the company.
