3Q16E net profit to increase YoY and QoQ; will peak in 4Q16E
WHA Corporation Outperform (17E TP Bt3.50)
Company Update
Close Bt3.30
Property Development November 8, 2016
Earnings upgrade/ Earnings downgrade/Overview unchanged
3Q16E net profit to increase YoY and QoQ; will peak in 4Q16E Price Performance (%)
Source: SET Smart
FY16
Consensus EPS (Bt)
0.268
0.290
KT ZMICO vs. consensus Share data
4.5%
‐24.1%
Reuters / Bloomberg
FY17
WHA.BK/WHA TB
Paid‐up Shares (m)
14,322.43
Par (Bt)
0.10
Market cap (Bt bn / US$ m) Foreign limit / actual (%)
47.00/1,350.00 49.00/20.26
52 week High / Low (Bt)
3.70/2.56
Avg. daily T/O (shares 000)
72,467.00
NVDR (%)
2.17
Estimated free float (%)
32.92
Beta
1.14
URL
www.wha.co.th
CGR Anti‐corruption
‐ Level 2 (Declared)
Worarat Powpaka Analyst, no. 17992 [email protected] 66 (0) 2624‐6248
Maintain Outperform at the 2017E TP of Bt3.5 We maintain an Outperform rating at the 2017E TP of Bt3.5 with PER of 16X, as we expect that WHA has the potential to grow after it finishes its debt restructuring plan in 2017E; moreover, the company has a land bank of 8,000 rai located in Chonburi and Rayong that will benefit from the Eastern Economic Corridor Development plan in the future Debt recapitalization to lower interest cost At end‐3Q16, WHA had Bt16.6bn remaining on the acquisition loan for Hemaraj; the majority of the loan amounting to Bt13bn was already recapitalized to its subsidiary, i.e., WHA Utility and Power PCL (WHAUP), as a seven‐year, long‐term loan with a lower interest rate by around 100 basis points, while WHA has the remainder of Bt3.6bn. Repayment of acquisition loan by asset monetization on track WHA plans to repay the acquisition loan of Bt3.6bn using the net proceeds from selling Hemaraj’s ready‐built factories and ready‐built warehouses amounting to Bt6.5bn to Hemaraj Leasehold Real Estate Investment Trust (HREIT) in 4Q16. Meanwhile, WHAUP will launch an Initial Public Offering on the SET in 1Q17. WHAUP expects to repay its long‐term loan recapitalization using IPO proceeds of Bt5bn, leaving only Bt8bn remaining on the long‐term acquisition loan. Expanding to industrial park development in Vietnam The joint venture company between Hemaraj (80% hold) and Civil Engineering Construction Corporation No. 4 Ltd (20% holding) has signed an agreement with the People’s Committee of Nghe An province to develop an industrial zone in Vietnam. The projects include two industrial parks with total area of 3,200 hectares. The projects will be divided into seven phases over a development timeline of seven years. The first phase will be developed in 2017E on an area of 500 hectares (3,125 rai). 3Q16E net profit to increase both YoY and QoQ and peak in 4Q16E We expect 3Q16E net profit to improve QoQ from 2Q16 net profit at Bt334mn and rise YoY from the loss of Bt53mn in 3Q15 as all operating revenue improved from the previous period. The peak of net profit will be seen in 4Q16E, as huge asset sales gain from WHA and HEMRAJ at a total of Bt10bn will be booked in this quarter. 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 (%)
2013 7,085 1,463 0.16 282.8 0.16 282.8 0.13 0.45 2013 20.7 20.7 16.6 7.3 4.0 41.6 84.3
2014 4,888 979 0.10 (36.3) 0.10 (36.3) 0.00 0.46 2014 32.5 32.5 22.9 7.1 0.0 22.7 152.6
2015 11,437 1,954 0.14 34.4 0.14 34.4 0.00 1.51 2015 24.2 24.2 21.3 2.2 0.0 14.9 201.7
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 4
2016E 16,846 4,039 0.28 106.7 0.28 106.7 0.10 1.81 2016E 11.7 11.7 13.1 1.8 3.0 17.0 133.2
2017E 12,288 3,166 0.22 (21.6) 0.22 (21.6) 0.08 1.94 2017E 14.9 14.9 18.2 1.7 2.3 11.8 115.3
Figure 1: Expected repayment plan for acquisition loan
Source: WHA
Figure 2: Actual repayments of the acquisition loan
Source: WHA
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 4
FINANCIAL TABLE PROFIT & LOSS (Btmn) Revenues Cost of sales and service Gross profit SG&A EBITDA Depreciation & amortization EBIT Interest expense Other income / exp. EBT Corporate tax Forex gain (loss) Extra Items Gain (loss) from affiliates Net profit Reported EPS Fully diluted EPS Core net profit Core EPS Dividend (Bt) BALANCE SHEET (Btmn) Cash and equivalents Accounts receivable Inventories PP&E‐net Other assets Total assets ST debt & current portion Long‐term debt Total liabilities Paid‐up shares Shareholder equity Total liab. & shareholder equity CASH FLOW (Btmn) Net income Forex and other extraordinary adjustments Depreciation & amortization Change in working capital Cash flow from operations Capex (Invest)/Divest Others Cash flow from investing Debt financing (repayment) Equity financing Dividend payment Others Cash flow from financing Net change in cash Free cash flow FCF per share (Bt) PROFITABILITY Revenue growth (%) EBITDA growth (%) EPS growth (%) Gross margin (%) EBITDA margin (%) Operating margin (%) Net margin (%) Core profit margin (%) Effective tax rate (%)
2013 7,085 (5,141) 1,945 (132) 2,034 137 1,896 (183) 84 1,712 (249) 0 0 (1) 1,463 0.16 0.16 1,463 0.16 0.13
2014 4,888 (3,269) 1,619 (283) 1,684 179 1,505 (295) 170 1,203 (224) 0 0 (8) 979 0.10 0.10 979 0.10 0.00
2015 11,437 (7,431) 4,006 (1,133) 4,275 775 3,500 (2,284) 627 2,254 (87) 0 0 1,038 1,954 0.14 0.14 1,954 0.14 0.00
2016E 16,846 (10,487) 6,359 (1,101) 6,243 642 5,600 (2,304) 342 4,880 (628) 0 0 1,584 4,039 0.28 0.28 4,039 0.28 0.10
2017E 12,288 (7,725) 4,563 (1,146) 4,352 581 3,771 (1,726) 354 3,723 (390) 0 0 1,678 3,166 0.22 0.22 3,166 0.22 0.08
2013 983 48 0 6,211 2,300 11,049 290 4,197 6,895 918 4,154 11,049
2014 2,186 104 0 8,025 3,392 15,952 655 8,366 11,472 964 4,480 15,952
2015 4,070 346 0 18,481 21,817 79,095 16,760 31,005 57,436 1,432 21,659 79,095
2016E 8,251 462 0 11,449 21,346 78,545 20,980 21,783 52,634 1,432 25,911 78,545
2017E 754 673 0 8,849 21,294 69,782 4,781 28,063 41,952 1,432 27,830 69,782
2013 1,463 (1,633) 137 136 104 (642) (1,093) (1,735) 986 0 (96) (5) 884 (747) (7,274) (0.79)
2014 979 (1,266) 179 (73) (181) (3,270) (1,607) (4,877) 5,309 0 (652) (7) 4,651 (408) (7,363) (0.76)
2015 1,954 (2,719) 515 65 (186) 5,084 (37,367) (32,284) 20,998 12,114 (341) (6) 32,765 296 (2,275) (0.16)
2016E 4,039 (3,774) 394 (510) 149 7,436 368 7,804 (9,215) 0 0 0 (9,215) (1,263) (4,987) (0.35)
2017E 3,166 (1,924) 332 (225) 1,349 3,365 (673) 2,692 6,280 (0) (1,414) 0 4,866 8,907 (2,992) (0.21)
2013 226.7 301.3 282.8 27.4 28.7 26.8 20.7 20.7 14.5
2014 (31.0) (17.2) (36.3) 33.1 34.5 30.8 20.0 20.0 18.6
2015 134.0 153.8 34.4 35.0 37.4 30.6 17.1 17.1 3.9
2016E 47.3 46.0 106.7 37.7 37.1 33.2 24.0 24.0 12.9
2017E (27.1) (30.3) (21.6) 37.1 35.4 30.7 25.8 25.8 10.5
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 4
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 ALLA.
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 4 of 4
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.
Company Update
Close Bt3.30
Property Development November 8, 2016
Earnings upgrade/ Earnings downgrade/Overview unchanged
3Q16E net profit to increase YoY and QoQ; will peak in 4Q16E Price Performance (%)
Source: SET Smart
FY16
Consensus EPS (Bt)
0.268
0.290
KT ZMICO vs. consensus Share data
4.5%
‐24.1%
Reuters / Bloomberg
FY17
WHA.BK/WHA TB
Paid‐up Shares (m)
14,322.43
Par (Bt)
0.10
Market cap (Bt bn / US$ m) Foreign limit / actual (%)
47.00/1,350.00 49.00/20.26
52 week High / Low (Bt)
3.70/2.56
Avg. daily T/O (shares 000)
72,467.00
NVDR (%)
2.17
Estimated free float (%)
32.92
Beta
1.14
URL
www.wha.co.th
CGR Anti‐corruption
‐ Level 2 (Declared)
Worarat Powpaka Analyst, no. 17992 [email protected] 66 (0) 2624‐6248
Maintain Outperform at the 2017E TP of Bt3.5 We maintain an Outperform rating at the 2017E TP of Bt3.5 with PER of 16X, as we expect that WHA has the potential to grow after it finishes its debt restructuring plan in 2017E; moreover, the company has a land bank of 8,000 rai located in Chonburi and Rayong that will benefit from the Eastern Economic Corridor Development plan in the future Debt recapitalization to lower interest cost At end‐3Q16, WHA had Bt16.6bn remaining on the acquisition loan for Hemaraj; the majority of the loan amounting to Bt13bn was already recapitalized to its subsidiary, i.e., WHA Utility and Power PCL (WHAUP), as a seven‐year, long‐term loan with a lower interest rate by around 100 basis points, while WHA has the remainder of Bt3.6bn. Repayment of acquisition loan by asset monetization on track WHA plans to repay the acquisition loan of Bt3.6bn using the net proceeds from selling Hemaraj’s ready‐built factories and ready‐built warehouses amounting to Bt6.5bn to Hemaraj Leasehold Real Estate Investment Trust (HREIT) in 4Q16. Meanwhile, WHAUP will launch an Initial Public Offering on the SET in 1Q17. WHAUP expects to repay its long‐term loan recapitalization using IPO proceeds of Bt5bn, leaving only Bt8bn remaining on the long‐term acquisition loan. Expanding to industrial park development in Vietnam The joint venture company between Hemaraj (80% hold) and Civil Engineering Construction Corporation No. 4 Ltd (20% holding) has signed an agreement with the People’s Committee of Nghe An province to develop an industrial zone in Vietnam. The projects include two industrial parks with total area of 3,200 hectares. The projects will be divided into seven phases over a development timeline of seven years. The first phase will be developed in 2017E on an area of 500 hectares (3,125 rai). 3Q16E net profit to increase both YoY and QoQ and peak in 4Q16E We expect 3Q16E net profit to improve QoQ from 2Q16 net profit at Bt334mn and rise YoY from the loss of Bt53mn in 3Q15 as all operating revenue improved from the previous period. The peak of net profit will be seen in 4Q16E, as huge asset sales gain from WHA and HEMRAJ at a total of Bt10bn will be booked in this quarter. 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 (%)
2013 7,085 1,463 0.16 282.8 0.16 282.8 0.13 0.45 2013 20.7 20.7 16.6 7.3 4.0 41.6 84.3
2014 4,888 979 0.10 (36.3) 0.10 (36.3) 0.00 0.46 2014 32.5 32.5 22.9 7.1 0.0 22.7 152.6
2015 11,437 1,954 0.14 34.4 0.14 34.4 0.00 1.51 2015 24.2 24.2 21.3 2.2 0.0 14.9 201.7
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 4
2016E 16,846 4,039 0.28 106.7 0.28 106.7 0.10 1.81 2016E 11.7 11.7 13.1 1.8 3.0 17.0 133.2
2017E 12,288 3,166 0.22 (21.6) 0.22 (21.6) 0.08 1.94 2017E 14.9 14.9 18.2 1.7 2.3 11.8 115.3
Figure 1: Expected repayment plan for acquisition loan
Source: WHA
Figure 2: Actual repayments of the acquisition loan
Source: WHA
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 4
FINANCIAL TABLE PROFIT & LOSS (Btmn) Revenues Cost of sales and service Gross profit SG&A EBITDA Depreciation & amortization EBIT Interest expense Other income / exp. EBT Corporate tax Forex gain (loss) Extra Items Gain (loss) from affiliates Net profit Reported EPS Fully diluted EPS Core net profit Core EPS Dividend (Bt) BALANCE SHEET (Btmn) Cash and equivalents Accounts receivable Inventories PP&E‐net Other assets Total assets ST debt & current portion Long‐term debt Total liabilities Paid‐up shares Shareholder equity Total liab. & shareholder equity CASH FLOW (Btmn) Net income Forex and other extraordinary adjustments Depreciation & amortization Change in working capital Cash flow from operations Capex (Invest)/Divest Others Cash flow from investing Debt financing (repayment) Equity financing Dividend payment Others Cash flow from financing Net change in cash Free cash flow FCF per share (Bt) PROFITABILITY Revenue growth (%) EBITDA growth (%) EPS growth (%) Gross margin (%) EBITDA margin (%) Operating margin (%) Net margin (%) Core profit margin (%) Effective tax rate (%)
2013 7,085 (5,141) 1,945 (132) 2,034 137 1,896 (183) 84 1,712 (249) 0 0 (1) 1,463 0.16 0.16 1,463 0.16 0.13
2014 4,888 (3,269) 1,619 (283) 1,684 179 1,505 (295) 170 1,203 (224) 0 0 (8) 979 0.10 0.10 979 0.10 0.00
2015 11,437 (7,431) 4,006 (1,133) 4,275 775 3,500 (2,284) 627 2,254 (87) 0 0 1,038 1,954 0.14 0.14 1,954 0.14 0.00
2016E 16,846 (10,487) 6,359 (1,101) 6,243 642 5,600 (2,304) 342 4,880 (628) 0 0 1,584 4,039 0.28 0.28 4,039 0.28 0.10
2017E 12,288 (7,725) 4,563 (1,146) 4,352 581 3,771 (1,726) 354 3,723 (390) 0 0 1,678 3,166 0.22 0.22 3,166 0.22 0.08
2013 983 48 0 6,211 2,300 11,049 290 4,197 6,895 918 4,154 11,049
2014 2,186 104 0 8,025 3,392 15,952 655 8,366 11,472 964 4,480 15,952
2015 4,070 346 0 18,481 21,817 79,095 16,760 31,005 57,436 1,432 21,659 79,095
2016E 8,251 462 0 11,449 21,346 78,545 20,980 21,783 52,634 1,432 25,911 78,545
2017E 754 673 0 8,849 21,294 69,782 4,781 28,063 41,952 1,432 27,830 69,782
2013 1,463 (1,633) 137 136 104 (642) (1,093) (1,735) 986 0 (96) (5) 884 (747) (7,274) (0.79)
2014 979 (1,266) 179 (73) (181) (3,270) (1,607) (4,877) 5,309 0 (652) (7) 4,651 (408) (7,363) (0.76)
2015 1,954 (2,719) 515 65 (186) 5,084 (37,367) (32,284) 20,998 12,114 (341) (6) 32,765 296 (2,275) (0.16)
2016E 4,039 (3,774) 394 (510) 149 7,436 368 7,804 (9,215) 0 0 0 (9,215) (1,263) (4,987) (0.35)
2017E 3,166 (1,924) 332 (225) 1,349 3,365 (673) 2,692 6,280 (0) (1,414) 0 4,866 8,907 (2,992) (0.21)
2013 226.7 301.3 282.8 27.4 28.7 26.8 20.7 20.7 14.5
2014 (31.0) (17.2) (36.3) 33.1 34.5 30.8 20.0 20.0 18.6
2015 134.0 153.8 34.4 35.0 37.4 30.6 17.1 17.1 3.9
2016E 47.3 46.0 106.7 37.7 37.1 33.2 24.0 24.0 12.9
2017E (27.1) (30.3) (21.6) 37.1 35.4 30.7 25.8 25.8 10.5
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 4
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 ALLA.
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 4 of 4
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KT•ZMICO Securities Company Limited
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8 , 15 -17 , 19 , 21 Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok 10500 Telephone: (66-2) 695-5000
Phaholyothin Branch
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Fax. (66-2) 631-1709
Ploenchit Branch
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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
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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.
