4Q16E net profit to peak from gain on asset sales - Amazon Web ...
WHA Corporation Outperform (17E TP Bt3.50)
Company Update
Close Bt3.02
Property Development November 28, 2016
Earnings upgrade/ Earnings downgrade/Overview unchanged
4Q16E net profit to peak from gain on asset sales Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
0.269
0.294
KT ZMICO vs. consensus Share data
4.1%
‐25.2%
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 (%)
43.00/1,214.00 49.00/20.40
52 week High / Low (Bt)
3.70/2.56
Avg. daily T/O (shares 000)
73,036.00
NVDR (%)
2.14
Estimated free float (%)
32.92
Beta
1.13
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. WHA’s asset monetization is proceeding as planned, which will cause the 4Q16E net profit to be the peak of the year; meanwhile, in 1Q17E, WHA will get extra gain from selling the current shares of WHAUP in the IPO process. The cash from asset sales will reduce its debt burden from the acquisition of Hemaraj, enabling WHA to further its investments in both Thailand and Vietnam next year. First asset monetization to HREIT starts trading on Nov 28, 16 Hemaraj Leasehold Real Estate Investment Trust (HREIT) starts trading on Nov 28, 16. This is WHA’s first monetization of assets as planned in 4Q16E. WHA will book gain from the net proceeds of asset sales to HREIT at around Bt6bn during 4Q16E. Second and third asset monetization on schedule in 4Q16E WHA will receive net proceeds of Bt1.5bn from selling two seed projects (Laemchabang and Bang‐na Trad) to the JV company, 51% held by WHA and 49% held by Daiwa House Industry, before the end of Nov. Meanwhile, WHA will sell and transfer two logistic centers worth Bt4.19bn to WHA Premium Growth Freehold and Leasehold Real Estate Investment (WHART) on Dec 15, 16. Listing of utilities & power company within 1Q17E 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 Initial Public Offering in the SET in 1Q17E. 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. WHAUP expects to repay its long‐ term loan by using IPO proceeds of Bt5bn, leaving only Bt8bn remaining on the long‐term loan. In addition, WHA will be able to book gain from share divestment of the current shares of H‐International (SG) from the listing, which we roughly estimate at more than B1bn. Note that we do not include the gain in our 2017E estimates. Revised down 2016E net profit by 1.3% from lower land transfers 9M16 industrial land sales were 653 rai, which were 65% of the 2016E target of 1,100 rai. WHA maintains its land sales target as they are in negotiations with potential customers and expect to conclude deals within 2016E. WHA expects its 2016E land transfers to drop to 600 rai from 700 rai on the delay of the land sales process. The company had a backlog of B2bn (537 rai) at the end of 3Q16. Hence, we revised down our 2016E net profit slightly by 1.3% to reflect lower 2016E transfers to 600 rai from 700 rai along with the actual 9M16 transfers of 305 rai. Meanwhile, we keep our 2017E net profit at Bt3.17bn (‐20.6% YoY). 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 18.9 18.9 15.4 6.7 4.4 41.6 84.3
2014 4,888 979 0.10 (36.3) 0.10 (36.3) 0.00 0.46 2014 29.7 29.7 21.3 6.5 0.0 22.7 152.6
2015 11,437 1,954 0.14 34.4 0.14 34.4 0.00 1.51 2015 22.1 22.1 20.3 2.0 0.0 14.9 201.7
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 4
2016E 16,499 3,986 0.28 104.0 0.28 104.0 0.10 1.80 2016E 10.9 10.9 12.7 1.7 3.2 16.8 135.0
2017E 12,288 3,166 0.22 (20.6) 0.22 (20.6) 0.08 1.94 2017E 13.7 13.7 17.4 1.6 2.6 11.8 116.4
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 16,499 (10,254) 6,245 (1,079) 6,150 642 5,508 (2,281) 342 4,810 (615) 0 0 1,584 3,986 0.28 0.28 3,986 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 79,066 16,760 31,005 57,407 1,432 21,659 79,066
2016E 7,860 452 0 11,449 21,548 78,335 7,979 34,783 52,481 1,432 25,855 78,335
2017E 507 673 0 8,849 21,503 69,745 4,781 28,063 41,952 1,432 27,792 69,745
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 3,986 (3,774) 394 (798) (193) 7,436 368 7,804 3,785 0 0 0 3,785 11,396 (5,325) (0.37)
2017E 3,166 (1,924) 332 (146) 1,428 3,365 (673) 2,692 (6,720) (0) (1,395) 0 (8,115) (3,995) (2,913) (0.20)
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 44.3 43.9 104.0 37.8 37.3 33.4 24.2 24.2 12.8
2017E (25.5) (29.2) (20.6) 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, M‐CHAI, TFD, CI.
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
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
Company Update
Close Bt3.02
Property Development November 28, 2016
Earnings upgrade/ Earnings downgrade/Overview unchanged
4Q16E net profit to peak from gain on asset sales Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
0.269
0.294
KT ZMICO vs. consensus Share data
4.1%
‐25.2%
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 (%)
43.00/1,214.00 49.00/20.40
52 week High / Low (Bt)
3.70/2.56
Avg. daily T/O (shares 000)
73,036.00
NVDR (%)
2.14
Estimated free float (%)
32.92
Beta
1.13
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. WHA’s asset monetization is proceeding as planned, which will cause the 4Q16E net profit to be the peak of the year; meanwhile, in 1Q17E, WHA will get extra gain from selling the current shares of WHAUP in the IPO process. The cash from asset sales will reduce its debt burden from the acquisition of Hemaraj, enabling WHA to further its investments in both Thailand and Vietnam next year. First asset monetization to HREIT starts trading on Nov 28, 16 Hemaraj Leasehold Real Estate Investment Trust (HREIT) starts trading on Nov 28, 16. This is WHA’s first monetization of assets as planned in 4Q16E. WHA will book gain from the net proceeds of asset sales to HREIT at around Bt6bn during 4Q16E. Second and third asset monetization on schedule in 4Q16E WHA will receive net proceeds of Bt1.5bn from selling two seed projects (Laemchabang and Bang‐na Trad) to the JV company, 51% held by WHA and 49% held by Daiwa House Industry, before the end of Nov. Meanwhile, WHA will sell and transfer two logistic centers worth Bt4.19bn to WHA Premium Growth Freehold and Leasehold Real Estate Investment (WHART) on Dec 15, 16. Listing of utilities & power company within 1Q17E 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 Initial Public Offering in the SET in 1Q17E. 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. WHAUP expects to repay its long‐ term loan by using IPO proceeds of Bt5bn, leaving only Bt8bn remaining on the long‐term loan. In addition, WHA will be able to book gain from share divestment of the current shares of H‐International (SG) from the listing, which we roughly estimate at more than B1bn. Note that we do not include the gain in our 2017E estimates. Revised down 2016E net profit by 1.3% from lower land transfers 9M16 industrial land sales were 653 rai, which were 65% of the 2016E target of 1,100 rai. WHA maintains its land sales target as they are in negotiations with potential customers and expect to conclude deals within 2016E. WHA expects its 2016E land transfers to drop to 600 rai from 700 rai on the delay of the land sales process. The company had a backlog of B2bn (537 rai) at the end of 3Q16. Hence, we revised down our 2016E net profit slightly by 1.3% to reflect lower 2016E transfers to 600 rai from 700 rai along with the actual 9M16 transfers of 305 rai. Meanwhile, we keep our 2017E net profit at Bt3.17bn (‐20.6% YoY). 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 18.9 18.9 15.4 6.7 4.4 41.6 84.3
2014 4,888 979 0.10 (36.3) 0.10 (36.3) 0.00 0.46 2014 29.7 29.7 21.3 6.5 0.0 22.7 152.6
2015 11,437 1,954 0.14 34.4 0.14 34.4 0.00 1.51 2015 22.1 22.1 20.3 2.0 0.0 14.9 201.7
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 4
2016E 16,499 3,986 0.28 104.0 0.28 104.0 0.10 1.80 2016E 10.9 10.9 12.7 1.7 3.2 16.8 135.0
2017E 12,288 3,166 0.22 (20.6) 0.22 (20.6) 0.08 1.94 2017E 13.7 13.7 17.4 1.6 2.6 11.8 116.4
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 16,499 (10,254) 6,245 (1,079) 6,150 642 5,508 (2,281) 342 4,810 (615) 0 0 1,584 3,986 0.28 0.28 3,986 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 79,066 16,760 31,005 57,407 1,432 21,659 79,066
2016E 7,860 452 0 11,449 21,548 78,335 7,979 34,783 52,481 1,432 25,855 78,335
2017E 507 673 0 8,849 21,503 69,745 4,781 28,063 41,952 1,432 27,792 69,745
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 3,986 (3,774) 394 (798) (193) 7,436 368 7,804 3,785 0 0 0 3,785 11,396 (5,325) (0.37)
2017E 3,166 (1,924) 332 (146) 1,428 3,365 (673) 2,692 (6,720) (0) (1,395) 0 (8,115) (3,995) (2,913) (0.20)
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 44.3 43.9 104.0 37.8 37.3 33.4 24.2 24.2 12.8
2017E (25.5) (29.2) (20.6) 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, M‐CHAI, TFD, CI.
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
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
