Airports of Thailand Underperform (FY17E TP Bt43.50)
Airports of Thailand Underperform (FY17E TP Bt43.50)
Earnings Review
Close Bt42.00
Transport & Logistics May 19, 2017
Beat forecast/Below forecast/In line
2QFY17 earnings slightly higher than expectation Results date: May 15, 2017 Price Performance (%)
6% higher‐than‐expected net profit in 2QFY17 (Jan‐Mar 17) AOT reported net profit of Bt6,470mn in 2QFY17 (Jan‐Mar 17), up by 18% YoY and 29% QoQ, higher than our estimate and the street expectation by 6% owing to lower‐than‐expected operating expenses. Stripping out FX gain of Bt60mn, AOT delivered norm. profit of Bt6,410mn, +16% YoY and +34% QoQ. On a yearly basis, norm. profit increased owing to revenue expansion (+6% YoY) on traffic growth (+8% passenger volume, +7% aircraft movement). Meanwhile, operating expenses declined by 3% YoY, mainly from costs related to depreciation (as some assets at SBIA had full depreciation), maintenance and other expenses. The decline of operating costs resulted in a higher operating margin to 55%, vs. 51% in 2QFY16. On a quarter‐to‐quarter basis, norm. profit increased by 34% QoQ also owing to revenue and operating margin expansion.
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
1.500
1.681
KT ZMICO vs. consensus Share data
6.0%
4.7%
Reuters / Bloomberg
AOT.BK/AOT TB
Paid‐up Shares (m)
14,285.70
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
600.00/17,391.00
Foreign limit / actual (%)
30.00/13.11
52 week High / Low (Bt)
42.50/30.00
Avg. daily T/O (shares 000) NVDR (%)
12,215.00 3.96
Estimated free float (%)
1.60
URL
www.airportthai.co.th
Anti‐corruption
Level 2 (Declared)
Raenoo Bhandasukdi Analyst no. 17989 [email protected] 66 (0) 2695‐5836
Retroactive rental costs of regional airports started in 2QFY17 AOT already started realization of incremental state property rental expenses related to regional airports of around Bt50mn in 2QFY17 (and retroactive on the financial statement in 2QFY16), in line with our expectation of additional costs of around Bt200mn for the whole year. Maintain normalized profit projection For 1H17, AOT’s net profit and norm. profit increased by 14% YoY and 11% YoY to Bt11.5bn and Bt11.2bn, respectively, owing to revenue and margin expansion. Norm. profit of Bt11.2bn in 1HFY17 accounted for 49% of our projection for the whole year. Thus, we maintain our earnings projection in FY17E for AOT.
29.99
Beta CGR
SBIA’s cost adjustment still overhanging Although 2QFY17 earnings were better than expected, we decide to maintain our earnings projections in FY17‐18E for AOT. Still, we view that the potential of rental cost increases for SBIA will pressure AOT’s share price for the next three months (this issue is likely to be concluded by Sep‐17). We thus maintain our “Underperform” rating with the DCF‐ based TP of Bt43.50 for AOT. Every Bt1bn rental cost increase will lower our FY17E net profit projection and TP for AOT by 3% and 1%, respectively.
Financials and Valuation FY Ended 30 Sep Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm. profit (Btmn) Norm. EPS (Bt) Norm. EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 30 Sep Norm. PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
FY15 43,969 18,729 1.31 15,755 1.10 30.97 0.65 7.60 FY15 32.04 21.91 5.53 1.56 15.32 cash
FY16 50,962 19,571 1.37 19,371 1.36 22.95 0.68 8.49 FY16 30.66 18.63 4.95 1.63 16.85 cash
FY17E 56,053 22,761 1.59 22,761 1.59 17.50 0.79 9.29 FY17E 26.36 16.50 4.52 1.89 17.92 cash
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
FY18E 60,549 25,158 1.76 25,158 1.76 10.53 0.88 10.17 FY18E 23.85 15.45 4.13 2.09 18.09 cash
FY19E 65,908 27,789 1.95 27,789 1.95 10.46 0.97 11.15 FY19E 21.59 14.33 3.77 2.31 18.24 cash
Figure 1: Summary of assumptions for DCF‐based valuation for AOT 5.00 14.50 9.50 12.70 30.00 3.00 10.00
Risk‐free rate (Rf) % Market return (Rm)% Market risk premium (Rm‐Rf) % Cost of equity (Ke) % Debt‐to‐capital ratio (%) Perpetual growth rate (%) WACC (%)
Present value of free cash flow (FY17‐29E) Present value of terminal value Total present value of FCF Less: net debt (cash) as of end‐FY17E Total equity value Outstanding shares at end‐FY17E Equity value / share (Bt)
(Btmn) 251,546 338,320 589,866 (31,553) 621,419 14,290 43.50
Source: KT ZMICO Research
Figure 2: AOT’s PER band and sensitivity of market prices based on PER at different standard deviation levels (X) 60
FY17E +1.5SD +1.0SD +0.5SD average ‐0.5SD ‐1.0SD
50 40 +1.0 S.D. 30
+0.5 S.D.
20
Avg.
-0.5 S.D. 10 -1.0 S.D.
May-17
Sep-16
Jan-16
May-15
Sep-14
Jan-14
May-13
Sep-12
Jan-12
May-11
Sep-10
Jan-10
May-09
Oct-08
0
PER (x) 37.0 32.3 27.7 23.0 18.4 13.7
Implied market price (Bt) 59 51 44 37 29 22
Upside/Downside vs. current market price (%) 40.32 22.69 5.05 (12.59) (30.22) (47.86)
Source: Bloomberg, KT ZMICO Research
Figure 3: 2QFY17 earnings review Profit / Loss Year‐end 30 Sep Revenue Operating expenses Operating profit EBITDA Interest expenses Other income Income tax Forex gain (loss) Other extra items Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Operating margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt/equity (x) BVPS (Bt) ROE (%)
2QFY16 13,800 (6,812) 6,988 8,600 (349) 327 (1,353) (33) ‐ 5,567 5,600 0.39
1QFY17 12,613 (6,449) 6,163 7,593 (319) 327 (1,319) 246 ‐ 5,084 4,839 0.36
2QFY17 14,665 (6,636) 8,028 9,412 (300) 310 (1,609) 60 ‐ 6,470 6,410 0.45
% YoY 6.3 (3.3) 15.7 10.1 (13.9) 2.4 19.0 n.m. ‐ 17.8 16.0 17.8
% QoQ 16.3 2.0 31.5 24.9 (6.0) (5.4) 22.0 n.m. ‐ 28.7 34.1 28.7
1HFY17 27,278 (13,145) 14,133 16,946 (619) 637 (2,928) 305 ‐ 11,496 11,190 0.80
% YoY 6.5 2.1 10.9 6.3 (12.7) (1.0) 13.4 n.m. ‐ 14.2 11.1 14.2
FY17E 56,053 (27,785) 28,268 34,457 (1,232) 1,481 (5,719) ‐ ‐ 22,761 22,761 1.59
YTD (% of 17E) 48.7 47.3 50.0 49.2 50.3 43.0 51.2 ‐ ‐ 50.5 49.2 50.5
50.6 62.3 40.3 3.5 20.0 0.3 7.8 20.0
48.9 60.2 40.3 4.2 19.3 0.2 8.8 15.7
54.7 64.2 44.1 3.5 26.7 0.2 8.5 20.8
51.8 62.1 42.1 3.5 22.8 0.2 8.5 19.0
50.4 61.5 40.6 3.7 22.9 0.2 9.3 17.9
Source: AOT, 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, POMPUI, TFD, TTL, NMG, NUSA.
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 Bt42.00
Transport & Logistics May 19, 2017
Beat forecast/Below forecast/In line
2QFY17 earnings slightly higher than expectation Results date: May 15, 2017 Price Performance (%)
6% higher‐than‐expected net profit in 2QFY17 (Jan‐Mar 17) AOT reported net profit of Bt6,470mn in 2QFY17 (Jan‐Mar 17), up by 18% YoY and 29% QoQ, higher than our estimate and the street expectation by 6% owing to lower‐than‐expected operating expenses. Stripping out FX gain of Bt60mn, AOT delivered norm. profit of Bt6,410mn, +16% YoY and +34% QoQ. On a yearly basis, norm. profit increased owing to revenue expansion (+6% YoY) on traffic growth (+8% passenger volume, +7% aircraft movement). Meanwhile, operating expenses declined by 3% YoY, mainly from costs related to depreciation (as some assets at SBIA had full depreciation), maintenance and other expenses. The decline of operating costs resulted in a higher operating margin to 55%, vs. 51% in 2QFY16. On a quarter‐to‐quarter basis, norm. profit increased by 34% QoQ also owing to revenue and operating margin expansion.
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
1.500
1.681
KT ZMICO vs. consensus Share data
6.0%
4.7%
Reuters / Bloomberg
AOT.BK/AOT TB
Paid‐up Shares (m)
14,285.70
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
600.00/17,391.00
Foreign limit / actual (%)
30.00/13.11
52 week High / Low (Bt)
42.50/30.00
Avg. daily T/O (shares 000) NVDR (%)
12,215.00 3.96
Estimated free float (%)
1.60
URL
www.airportthai.co.th
Anti‐corruption
Level 2 (Declared)
Raenoo Bhandasukdi Analyst no. 17989 [email protected] 66 (0) 2695‐5836
Retroactive rental costs of regional airports started in 2QFY17 AOT already started realization of incremental state property rental expenses related to regional airports of around Bt50mn in 2QFY17 (and retroactive on the financial statement in 2QFY16), in line with our expectation of additional costs of around Bt200mn for the whole year. Maintain normalized profit projection For 1H17, AOT’s net profit and norm. profit increased by 14% YoY and 11% YoY to Bt11.5bn and Bt11.2bn, respectively, owing to revenue and margin expansion. Norm. profit of Bt11.2bn in 1HFY17 accounted for 49% of our projection for the whole year. Thus, we maintain our earnings projection in FY17E for AOT.
29.99
Beta CGR
SBIA’s cost adjustment still overhanging Although 2QFY17 earnings were better than expected, we decide to maintain our earnings projections in FY17‐18E for AOT. Still, we view that the potential of rental cost increases for SBIA will pressure AOT’s share price for the next three months (this issue is likely to be concluded by Sep‐17). We thus maintain our “Underperform” rating with the DCF‐ based TP of Bt43.50 for AOT. Every Bt1bn rental cost increase will lower our FY17E net profit projection and TP for AOT by 3% and 1%, respectively.
Financials and Valuation FY Ended 30 Sep Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm. profit (Btmn) Norm. EPS (Bt) Norm. EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 30 Sep Norm. PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
FY15 43,969 18,729 1.31 15,755 1.10 30.97 0.65 7.60 FY15 32.04 21.91 5.53 1.56 15.32 cash
FY16 50,962 19,571 1.37 19,371 1.36 22.95 0.68 8.49 FY16 30.66 18.63 4.95 1.63 16.85 cash
FY17E 56,053 22,761 1.59 22,761 1.59 17.50 0.79 9.29 FY17E 26.36 16.50 4.52 1.89 17.92 cash
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
FY18E 60,549 25,158 1.76 25,158 1.76 10.53 0.88 10.17 FY18E 23.85 15.45 4.13 2.09 18.09 cash
FY19E 65,908 27,789 1.95 27,789 1.95 10.46 0.97 11.15 FY19E 21.59 14.33 3.77 2.31 18.24 cash
Figure 1: Summary of assumptions for DCF‐based valuation for AOT 5.00 14.50 9.50 12.70 30.00 3.00 10.00
Risk‐free rate (Rf) % Market return (Rm)% Market risk premium (Rm‐Rf) % Cost of equity (Ke) % Debt‐to‐capital ratio (%) Perpetual growth rate (%) WACC (%)
Present value of free cash flow (FY17‐29E) Present value of terminal value Total present value of FCF Less: net debt (cash) as of end‐FY17E Total equity value Outstanding shares at end‐FY17E Equity value / share (Bt)
(Btmn) 251,546 338,320 589,866 (31,553) 621,419 14,290 43.50
Source: KT ZMICO Research
Figure 2: AOT’s PER band and sensitivity of market prices based on PER at different standard deviation levels (X) 60
FY17E +1.5SD +1.0SD +0.5SD average ‐0.5SD ‐1.0SD
50 40 +1.0 S.D. 30
+0.5 S.D.
20
Avg.
-0.5 S.D. 10 -1.0 S.D.
May-17
Sep-16
Jan-16
May-15
Sep-14
Jan-14
May-13
Sep-12
Jan-12
May-11
Sep-10
Jan-10
May-09
Oct-08
0
PER (x) 37.0 32.3 27.7 23.0 18.4 13.7
Implied market price (Bt) 59 51 44 37 29 22
Upside/Downside vs. current market price (%) 40.32 22.69 5.05 (12.59) (30.22) (47.86)
Source: Bloomberg, KT ZMICO Research
Figure 3: 2QFY17 earnings review Profit / Loss Year‐end 30 Sep Revenue Operating expenses Operating profit EBITDA Interest expenses Other income Income tax Forex gain (loss) Other extra items Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Operating margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt/equity (x) BVPS (Bt) ROE (%)
2QFY16 13,800 (6,812) 6,988 8,600 (349) 327 (1,353) (33) ‐ 5,567 5,600 0.39
1QFY17 12,613 (6,449) 6,163 7,593 (319) 327 (1,319) 246 ‐ 5,084 4,839 0.36
2QFY17 14,665 (6,636) 8,028 9,412 (300) 310 (1,609) 60 ‐ 6,470 6,410 0.45
% YoY 6.3 (3.3) 15.7 10.1 (13.9) 2.4 19.0 n.m. ‐ 17.8 16.0 17.8
% QoQ 16.3 2.0 31.5 24.9 (6.0) (5.4) 22.0 n.m. ‐ 28.7 34.1 28.7
1HFY17 27,278 (13,145) 14,133 16,946 (619) 637 (2,928) 305 ‐ 11,496 11,190 0.80
% YoY 6.5 2.1 10.9 6.3 (12.7) (1.0) 13.4 n.m. ‐ 14.2 11.1 14.2
FY17E 56,053 (27,785) 28,268 34,457 (1,232) 1,481 (5,719) ‐ ‐ 22,761 22,761 1.59
YTD (% of 17E) 48.7 47.3 50.0 49.2 50.3 43.0 51.2 ‐ ‐ 50.5 49.2 50.5
50.6 62.3 40.3 3.5 20.0 0.3 7.8 20.0
48.9 60.2 40.3 4.2 19.3 0.2 8.8 15.7
54.7 64.2 44.1 3.5 26.7 0.2 8.5 20.8
51.8 62.1 42.1 3.5 22.8 0.2 8.5 19.0
50.4 61.5 40.6 3.7 22.9 0.2 9.3 17.9
Source: AOT, 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, POMPUI, TFD, TTL, NMG, NUSA.
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
