Asia Aviation
Asia Aviation Buy (16E TP Bt7.80)
Company Update
Close Bt5.85
Transport & Logistics January 13, 2016
Earnings upgrade/Earnings downgrade/Overview unchanged
More favorable outlook Price Performance (%)
Reiterate BUY with revised target price of Bt7.80 We maintain our BUY call for AAV with the revised PER‐based target price to Bt7.80, vs. Bt5.90 previously, based on PER of 21x (‐0.5SD), after the earnings revision. Among the four airlines listed in the SET, AAV will be a prime beneficiary from tourism expansion, both domestically and regionally, coupled with the potential benefit from lower jet fuel prices as only 24% of 2016E fuel usage is currently hedged. Better‐than‐expected passenger volume in 2015 According to preliminary statistics, AAV recorded passenger volume of 14.7mn in 2015E (+20.5% YoY), beating the company’s own target of 14.5mn and our previous expectation of 14.2mn. We believe the higher‐ than‐expected passenger volume in 2015E may have been due mainly to the increase of domestic/regional tourists who chose to fly on LCCs in the high season coupled with AAV’s route network expansion, especially from the new hub‐UTP. In 4Q15, AAV added five new destinations at UTP, three domestic and two international (to Macau and Singapore).
Source: SET Smart
FY15
FY16
Consensus EPS (Bt)
0.302
0.385
KT ZMICO vs. consensus Share data
‐13.9%
‐3.9%
Reuters / Bloomberg
AAV.BK/AAV TB
Paid‐up Shares (m)
4,850.00
Par (Bt)
0.10
Market cap (Bt bn / US$ m) Foreign limit / actual (%)
28.00/781.00 0.10/0.10
52 week High / Low (Bt)
5.95/3.90
Avg. daily T/O (shares 000)
26,749.00
NVDR (%)
11.51
Estimated free float (%)
54.46
Beta
0.87
URL
www.aavplc.co.th
CGR
Anti‐corruption
Level 3B (Established)
Raenoo Bhandasukdi Analyst no. 17989 [email protected] 66 (0) 2695‐5836
Estimate norm. profit of Bt496mn in 4Q15E (+18% YoY) We expect AAV to report net profit of Bt440mn in 4Q15E, including normalized profit of Bt496mn and FX loss of Bt56mn. Norm. profit is likely to increase by 18% YoY owing to estimated passenger volume of 3.88mn (+15% YoY) and an expected average ticket fare of Bt1,980 (+2% YoY). AAV’s gross profit margin in 4Q15E is likely to improve to 19.4%, vs. 17.6% in 4Q14, owing mainly to a ticket fare increase and a jet fuel price decline (Singapore jet fuel price in 4Q15 stood at US$56/bbl, falling by 38% YoY). In 4Q15, 50% of AAV’s fuel usage was hedged at an average cost of US$73/bbl. Upgrade net profit estimates in 2015‐16E Given higher‐than‐expected passenger volume in 2015E and lower jet fuel price assumptions in 2015‐16E (following lower Dubai crude price assumptions previously), we upgrade AAV’s net profit estimates in 2015‐ 16E by 16% and 26% to Bt1.2bn and Bt1.8bn, respectively. Moreover, we lift the growth assumption for ticket fares in 2015E to +3%, vs. +0% previously, based on AAV’s guidance and owing to more favorable competition coupled with the success of route expansion in potential markets. However, we maintain our growth assumption of +0% for ticket fares in 2016E to be conservative. Note that AAV guided that ticket fares in 2016E will continue growing by 3%. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm. profit (Btmn) 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 (%)
2013 23,994 1,043 0.22 914 0.19 13.69 0.00 3.99 2013 31.05 11.09 1.47 0.00 4.86 8.83
2014 25,981 183 0.04 120 0.02 (86.85) 0.00 4.03 2014 236.11 9.28 1.45 0.00 0.62 29.58
2015E 31,670 1,244 0.26 1,450 0.30 1,106.80 0.21 4.10 2015E 19.56 7.73 1.43 3.58 7.35 30.16
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 5
2016E 36,591 1,805 0.37 1,768 0.36 21.89 0.26 4.22 2016E 16.05 6.32 1.39 4.36 8.76 29.55
2017E 40,444 1,832 0.38 1,832 0.38 3.63 0.26 4.33 2017E 15.49 5.80 1.35 4.52 8.84 28.19
Figure 1: 4Q15E earnings preview Profit and Loss (Btmn) Year‐end 31 Dec Revenue Gross profit SG&A expenses EBITDA Interest expenses Other income Income tax Forex gain (loss) Minority interests Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt/equity (x) BVPS (Bt) ROE (%) Statistic Cabin factor (%) Passenger volume (mn) Average fare (Bt/pax)
4Q14 8,052 1,414 (555) 1,103 (107) 38 (20) 9 (350) 430 421 0.09
3Q15 7,431 1,077 (592) 763 (88) 24 (21) (116) (192) 92 208 0.02
4Q15E 9,289 1,804 (649) 1,458 (109) 52 (174) (56) (429) 440 496 0.09
% YoY 15.4 27.6 16.9 32.1 1.4 35.2 769.8 (730.4) 22.6 2.4 17.8 2.4
% QoQ 25.0 67.5 9.7 91.1 23.1 116.1 712.2 (51.8) 123.0 378.7 138.8 378.7
2014 25,981 2,273 (1,925) 1,166 (313) 168 1 63 (85) 183 120 0.04
2015E 31,670 5,634 (2,317) 4,450 (448) 132 (315) (206) (1,235) 1,244 1,450 0.26
17.6 13.7 5.3 1.0 8.0 0.6 4.0 8.9 81.1 3.39 1,941
14.5 10.3 1.2 1.1 5.5 0.7 4.1 1.8 82.1 3.58 1,710
19.4 15.7 4.7
8.7 4.5 0.7 1.0 1.1 0.4 4.0 0.6
82.0 3.88 1,980
14.5 2.0
8.4 15.8
80.5 12.2 1,726
17.8 14.1 3.9 1.0 7.4 0.5 4.1 7.4 82.1 14.7 1,778
% YoY 21.9 147.8 20.4 281.5 43.3 (21.7) n.m. (426.8) 1,352.0 579.3 1,106.8 579.3 20.5 3.0
Source: AAV, KT ZMICO Research
Figure 2: Key changes to our assumptions and revision to the earnings forecasts of AAV
2015E
Ended Dec
Current
No. of aircraft
2016E
Previous
% chg
Current
Previous
% chg
45
45
50
50
Cabin factor (%)
82.1
82.8
82.1
82.8
Passengers carried (mn)
14.7
14.2
3.5
16.9
16.3
3.7
Change (% +/‐) Average fare (Bt/passenger)
20.5
16.4
15.0
15.0
1,778
1,726
3.0
1,778
1,726
3.0
Change (% +/‐)
3.0
0.0
0.0
0.0
Average ancillary (Bt/passenger)
330
334
(1.2)
340
344
(1.2)
65
66
(1.5)
66
71
(7.0)
Norm. profit (Btmn)
Jet fuel price (US$/barrel)
1,450
1,179
23.0
1,768
1,399
26.4
FX gains/loss (Btmn)
(206)
(105)
96.2
37
37
0.0
Net profit (Btmn)
1,244
1,074
15.8
1,805
1,435
25.8
Source: KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 5
Figure 3: AAV’s PER band and sensitivity of market prices based on PER at different standard deviation levels 2016E +1.0SD +0.5SD Average ‐0.5SD ‐1.0SD ‐1.5SD ‐2.0SD ‐2.5SD
(X) 45 40 35 +1.0 S.D. 30 Avg.
25 20
-0.50S.D. -1 .0S.D.
15 10
2 1 g u A
2 1 y a M
2 1 v o N
3 1 n a J
3 1 rp A
3 1 c e D
3 1 tc O
3 1 lu J
4 1 ra M
4 1 n u J
4 1 g u A
4 1 v o N
5 1 b e F
5 1 y a M
5 1 lu J
5 1 tc O
6 1 n a J
PER (x) 30.0 27.0 24.0 21.0 18.0 15.0 12.0 9.0
Implied market price (Bt) 11.10 9.99 8.88 7.77 6.66 5.55 4.44 3.33
Upside/Downside vs. current market price (%) 88.1 69.3 50.5 31.7 12.9 (5.9) (24.7) (43.6)
Source: Bloomberg, KT ZMICO Research Figure 4: Peer comparison COUNTRY
PER (x)
14
15E
PBV (x) 16E
14
15E
Yield (%) 16E
14
15E
ROE (%) 16E
14
15E
EV/EBITDA (x) 16E
14
15E
16E
LCC AIR ASIA BHD
Malaysia
90.7
7.3
5.8
1.7
0.8
0.7
1.1
2.8
3.5
1.7
7.5
12.4
12.9
8.6
AIRARABI
UAE
12.5
10.4
9.0
1.4
1.2
1.1
6.0
7.3
7.9
10.4
12.0
13.0
10.9
8.4
8.2 7.4
CEBU AIR INC
Philippines
60.9
6.5
6.2
2.4
1.7
1.4
1.2
2.4
2.7
4.0
29.0
22.6
9.7
5.3
5.3
EASYJET PLC
Britain
12.4
12.8
11.5
2.6
3.1
2.6
3.2
3.1
3.5
21.5
24.8
23.2
7.5
8.0
7.1
RYANAIR HOLDINGS PLC
Ireland
20.6
17.8
16.7
3.2
3.8
4.4
0.0
0.0
0.0
15.9
23.7
28.5
10.3
10.5
10.2
SOUTHWEST AIRLINES
USA
21.0
11.9
10.2
4.2
3.5
2.8
0.5
0.7
0.8
16.1
31.5
30.1
9.1
5.4
4.8
TIGER AIRWAYS HLDG
Singapore
n.a.
n.a.
227.5
6.6
4.0
5.1
0.0
0.0
0.0
n.m.
n.m.
n.m.
n.a.
210.5
17.5
VIRGIN AUSTRALIA HLDG
Australia
n.a.
n.a.
18.3
1.4
1.4
1.5
0.0
0.0
0.0
(32.9)
(10.4)
8.2
n.a.
16.3
5.9
WESTJET AIRLINES LTD
Canada
13.6
6.3
6.6
2.4
1.2
1.1
1.4
2.9
3.2
16.9
19.9
16.1
5.8
2.5
2.5
9.4
30.6
7.7
33.1
10.4
34.6
2.9
2.3
1.9
1.5
2.1
2.4
6.7
17.2
19.3
Conventional CHINA SOUTHERN AIRLINES‐H China
16.4
5.9
5.3
0.8
1.0
0.9
1.4
2.7
2.9
5.1
17.8
16.8
9.6
4.7
4.6
AIR CHINA LTD‐H
China
16.2
6.0
5.6
1.2
0.9
0.8
1.0
2.7
2.9
7.1
14.7
13.9
10.5
5.4
5.2
CATHAY PACIFIC AIRWAYS
Hong Kong
11.0
5.4
5.2
1.3
1.0
0.9
0.0
1.1
0.9
12.5
19.3
16.6
10.2
6.1
5.7
CHINA EASTERN AIRLINES‐H
China
21.1
8.3
7.6
1.3
0.9
0.8
2.1
4.5
4.9
5.5
11.5
11.7
8.2
5.5
5.3
KOREAN AIR LINES CO LTD
South Korea
34.2
38.1
19.6
0.9
1.1
1.0
2.0
1.8
3.2
2.7
2.9
5.1
4.4
5.2
4.0
SINGAPORE AIRLINES LTD
Singapore
n.a.
n.a.
9.1
1.3
1.0
0.9
0.0
0.0
0.0
(20.3)
(24.6)
12.0
9.2
7.7
7.2
Average (simple)
EVA AIRWAYS CORP
Taiwan
n.a.
8.2
8.3
2.1
1.4
1.2
0.0
0.2
0.6
(3.7)
18.6
14.7
9.3
5.3
5.2
CHINA AIRLINES LTD
Taiwan
n.a.
8.3
8.7
1.6
1.1
1.0
0.0
1.3
0.9
(1.5)
12.7
11.3
9.3
5.5
5.4
19.8
11.5
8.7
1.3
1.0
0.9
0.8
1.8
2.0
0.9
12.8
11.6
8.8
5.7
5.3
Average (simple)
Source: Bloomberg
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 5
Financial tables PROFIT & LOSS (Btm) Revenues Cost of sales and service Gross profit SG&A expense EBITDA Depreciation & amortization EBIT Interest expense Equity earnings Other income / exp. EBT Corporate tax Minority interests Net profit Reported EPS Fully diluted EPS Core net profit Core EPS Dividend (Bt) BALANCE SHEET (Btm) Cash and equivalents Inventories PP&E‐net Other assets Total assets ST debt & current portion Long‐term debt Total liabilities Minority interests Shareholder equity Total liab. & shareholder equity CASH FLOW (Btm) Net income Depreciation & amortization Change in working capital FX, non‐cash adjustment & others 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 (%) Core EPS growth (%) Gross margin (%) EBITDA margin (%) Operating margin (%) Net margin (%) Core profit margin (%) Effective tax rate (%) FINANCIAL QUALITY Total debt to capital employed (x) Net debt to equity (x) Interest coverage (x)
2012 16,409 (14,018) 2,391 (885) 1,648 (141) 1,506 (17) 0 14,791 16,280 (436) (331) 15,513 3.20 3.20 804 0.17 0.00
2013 23,994 (19,928) 4,066 (1,756) 2,712 (402) 2,310 (171) 0 291 2,430 (651) (736) 1,043 0.22 0.22 914 0.19 0.00
2014 25,981 (23,708) 2,273 (1,925) 1,166 (818) 348 (313) 0 231 267 1 (85) 183 0.04 0.04 120 0.02 0.00
2015E 31,670 (26,036) 5,634 (2,317) 4,450 (1,133) 3,317 (448) 0 (74) 2,795 (315) (1,235) 1,244 0.26 0.26 1,450 0.30 0.21
2012 6,166 80 3,075 25,288 34,609 137 1,783 9,892 6,459 18,259 34,609
2013 6,453 90 10,956 27,436 44,935 615 7,546 18,260 7,329 19,346 44,935
2014 6,298 97 16,033 27,073 49,502 959 11,118 22,486 7,482 19,534 49,502
2015E 6,885 132 17,942 27,313 52,272 1,271 11,616 23,647 8,717 19,907 52,271
2012 15,513 141 1,649 (14,660) 2,643 478 (2,308) (1,830) (345) 2,690 0 0 2,345 3,158 813 0.17
2013 1,043 402 2,445 131 4,020 (2,082) (3,483) (5,565) (348) 0 0 0 (348) (1,894) (1,545) (0.32)
2014 183 818 655 194 1,849 (980) 3,004 2,025 (1,038) 0 0 0 (1,038) 2,836 3,874 0.80
2015E 1,244 1,133 (495) 206 2,088 (2,312) 0 (2,312) 811 0 0 0 811 586 (224) (0.05)
2012 98.2 65.5 (27.4) 14.6 10.0 9.2 94.5 4.9 2.7
2013 46.2 64.6 13.7 16.9 11.3 9.6 4.3 3.8 26.8
2014 8.3 (57.0) (86.8) 8.7 4.5 1.3 0.7 0.5 (0.5)
2015E 21.9 281.5 1,106.8 17.8 14.1 10.5 3.9 4.6 11.3
2012 0.10 cash 69.57
2013 0.30 0.09 12.05
2014 0.38 0.30 3.73
2015E 0.39 0.30 9.22
2016E 36,591 (29,922) 6,669 (2,682) 5,445 (1,458) 3,987 (473) 0 180 3,694 (384) (1,506) 1,805 0.37 0.37 1,768 0.36 0.26
2016E 7,404 153 20,976 27,486 56,019 1,577 11,871 25,347 10,223 20,449 56,019
2017E 7,783 169 23,731 27,620 59,302 1,882 11,821 26,520 11,783 20,998 59,302
2016E 1,805 1,458 139 (37) 3,364 (2,390) 0 (2,390) 560 0 (1,015) 0 (455) 520 975 0.20
2017E 40,444 (33,339) 7,106 (2,980) 5,909 (1,783) 4,126 (487) 0 152 3,790 (398) (1,560) 1,832 0.38 0.38 1,832 0.38 0.26
2017E 1,832 1,783 135 0 3,750 (2,390) 0 (2,390) 255 0 (1,237) 0 (982) 378 1,361 0.28
2016E 15.5 22.4 21.9 18.2 14.9 10.9 4.9 4.8 10.4
2017E 10.5 8.5 3.6 17.6 14.6 10.2 4.5 4.5 10.5
2016E 0.40 0.30 10.70
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 5
2017E 0.39 0.28 11.31
Note: KT ZMICO is a partnership between KTB and ZMICO. 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. 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, SUTHA, ZMICO, MAKRO, CPALL, SAFARI, PACE, PLE, TPOLY, TFG. KT ZMICO is a co‐underwriter of TKN.
Anti‐corruption Progress Indicator
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 BUY: Expecting positive total returns of 15% or more over the next 12 months OUTPERFORM: Expecting total returns between ‐10% to +15%; returns expected to exceed market returns over a six‐month period due to specific catalysts UNDERPERFORM: Expecting total returns between ‐10% to +15%; returns expected to be below market returns over a six‐month period due to specific catalysts SELL: Expecting negative total returns of 10% or more over the next 12 months
SECTOR RECOMMENDATIONS OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index by at least 10% over the next 12 months. NEUTRAL: The industry, as defined by the analyst's coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months. UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index by 10% over the next 12 months.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 5 of 5
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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.
Company Update
Close Bt5.85
Transport & Logistics January 13, 2016
Earnings upgrade/Earnings downgrade/Overview unchanged
More favorable outlook Price Performance (%)
Reiterate BUY with revised target price of Bt7.80 We maintain our BUY call for AAV with the revised PER‐based target price to Bt7.80, vs. Bt5.90 previously, based on PER of 21x (‐0.5SD), after the earnings revision. Among the four airlines listed in the SET, AAV will be a prime beneficiary from tourism expansion, both domestically and regionally, coupled with the potential benefit from lower jet fuel prices as only 24% of 2016E fuel usage is currently hedged. Better‐than‐expected passenger volume in 2015 According to preliminary statistics, AAV recorded passenger volume of 14.7mn in 2015E (+20.5% YoY), beating the company’s own target of 14.5mn and our previous expectation of 14.2mn. We believe the higher‐ than‐expected passenger volume in 2015E may have been due mainly to the increase of domestic/regional tourists who chose to fly on LCCs in the high season coupled with AAV’s route network expansion, especially from the new hub‐UTP. In 4Q15, AAV added five new destinations at UTP, three domestic and two international (to Macau and Singapore).
Source: SET Smart
FY15
FY16
Consensus EPS (Bt)
0.302
0.385
KT ZMICO vs. consensus Share data
‐13.9%
‐3.9%
Reuters / Bloomberg
AAV.BK/AAV TB
Paid‐up Shares (m)
4,850.00
Par (Bt)
0.10
Market cap (Bt bn / US$ m) Foreign limit / actual (%)
28.00/781.00 0.10/0.10
52 week High / Low (Bt)
5.95/3.90
Avg. daily T/O (shares 000)
26,749.00
NVDR (%)
11.51
Estimated free float (%)
54.46
Beta
0.87
URL
www.aavplc.co.th
CGR
Anti‐corruption
Level 3B (Established)
Raenoo Bhandasukdi Analyst no. 17989 [email protected] 66 (0) 2695‐5836
Estimate norm. profit of Bt496mn in 4Q15E (+18% YoY) We expect AAV to report net profit of Bt440mn in 4Q15E, including normalized profit of Bt496mn and FX loss of Bt56mn. Norm. profit is likely to increase by 18% YoY owing to estimated passenger volume of 3.88mn (+15% YoY) and an expected average ticket fare of Bt1,980 (+2% YoY). AAV’s gross profit margin in 4Q15E is likely to improve to 19.4%, vs. 17.6% in 4Q14, owing mainly to a ticket fare increase and a jet fuel price decline (Singapore jet fuel price in 4Q15 stood at US$56/bbl, falling by 38% YoY). In 4Q15, 50% of AAV’s fuel usage was hedged at an average cost of US$73/bbl. Upgrade net profit estimates in 2015‐16E Given higher‐than‐expected passenger volume in 2015E and lower jet fuel price assumptions in 2015‐16E (following lower Dubai crude price assumptions previously), we upgrade AAV’s net profit estimates in 2015‐ 16E by 16% and 26% to Bt1.2bn and Bt1.8bn, respectively. Moreover, we lift the growth assumption for ticket fares in 2015E to +3%, vs. +0% previously, based on AAV’s guidance and owing to more favorable competition coupled with the success of route expansion in potential markets. However, we maintain our growth assumption of +0% for ticket fares in 2016E to be conservative. Note that AAV guided that ticket fares in 2016E will continue growing by 3%. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm. profit (Btmn) 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 (%)
2013 23,994 1,043 0.22 914 0.19 13.69 0.00 3.99 2013 31.05 11.09 1.47 0.00 4.86 8.83
2014 25,981 183 0.04 120 0.02 (86.85) 0.00 4.03 2014 236.11 9.28 1.45 0.00 0.62 29.58
2015E 31,670 1,244 0.26 1,450 0.30 1,106.80 0.21 4.10 2015E 19.56 7.73 1.43 3.58 7.35 30.16
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 5
2016E 36,591 1,805 0.37 1,768 0.36 21.89 0.26 4.22 2016E 16.05 6.32 1.39 4.36 8.76 29.55
2017E 40,444 1,832 0.38 1,832 0.38 3.63 0.26 4.33 2017E 15.49 5.80 1.35 4.52 8.84 28.19
Figure 1: 4Q15E earnings preview Profit and Loss (Btmn) Year‐end 31 Dec Revenue Gross profit SG&A expenses EBITDA Interest expenses Other income Income tax Forex gain (loss) Minority interests Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt/equity (x) BVPS (Bt) ROE (%) Statistic Cabin factor (%) Passenger volume (mn) Average fare (Bt/pax)
4Q14 8,052 1,414 (555) 1,103 (107) 38 (20) 9 (350) 430 421 0.09
3Q15 7,431 1,077 (592) 763 (88) 24 (21) (116) (192) 92 208 0.02
4Q15E 9,289 1,804 (649) 1,458 (109) 52 (174) (56) (429) 440 496 0.09
% YoY 15.4 27.6 16.9 32.1 1.4 35.2 769.8 (730.4) 22.6 2.4 17.8 2.4
% QoQ 25.0 67.5 9.7 91.1 23.1 116.1 712.2 (51.8) 123.0 378.7 138.8 378.7
2014 25,981 2,273 (1,925) 1,166 (313) 168 1 63 (85) 183 120 0.04
2015E 31,670 5,634 (2,317) 4,450 (448) 132 (315) (206) (1,235) 1,244 1,450 0.26
17.6 13.7 5.3 1.0 8.0 0.6 4.0 8.9 81.1 3.39 1,941
14.5 10.3 1.2 1.1 5.5 0.7 4.1 1.8 82.1 3.58 1,710
19.4 15.7 4.7
8.7 4.5 0.7 1.0 1.1 0.4 4.0 0.6
82.0 3.88 1,980
14.5 2.0
8.4 15.8
80.5 12.2 1,726
17.8 14.1 3.9 1.0 7.4 0.5 4.1 7.4 82.1 14.7 1,778
% YoY 21.9 147.8 20.4 281.5 43.3 (21.7) n.m. (426.8) 1,352.0 579.3 1,106.8 579.3 20.5 3.0
Source: AAV, KT ZMICO Research
Figure 2: Key changes to our assumptions and revision to the earnings forecasts of AAV
2015E
Ended Dec
Current
No. of aircraft
2016E
Previous
% chg
Current
Previous
% chg
45
45
50
50
Cabin factor (%)
82.1
82.8
82.1
82.8
Passengers carried (mn)
14.7
14.2
3.5
16.9
16.3
3.7
Change (% +/‐) Average fare (Bt/passenger)
20.5
16.4
15.0
15.0
1,778
1,726
3.0
1,778
1,726
3.0
Change (% +/‐)
3.0
0.0
0.0
0.0
Average ancillary (Bt/passenger)
330
334
(1.2)
340
344
(1.2)
65
66
(1.5)
66
71
(7.0)
Norm. profit (Btmn)
Jet fuel price (US$/barrel)
1,450
1,179
23.0
1,768
1,399
26.4
FX gains/loss (Btmn)
(206)
(105)
96.2
37
37
0.0
Net profit (Btmn)
1,244
1,074
15.8
1,805
1,435
25.8
Source: KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 5
Figure 3: AAV’s PER band and sensitivity of market prices based on PER at different standard deviation levels 2016E +1.0SD +0.5SD Average ‐0.5SD ‐1.0SD ‐1.5SD ‐2.0SD ‐2.5SD
(X) 45 40 35 +1.0 S.D. 30 Avg.
25 20
-0.50S.D. -1 .0S.D.
15 10
2 1 g u A
2 1 y a M
2 1 v o N
3 1 n a J
3 1 rp A
3 1 c e D
3 1 tc O
3 1 lu J
4 1 ra M
4 1 n u J
4 1 g u A
4 1 v o N
5 1 b e F
5 1 y a M
5 1 lu J
5 1 tc O
6 1 n a J
PER (x) 30.0 27.0 24.0 21.0 18.0 15.0 12.0 9.0
Implied market price (Bt) 11.10 9.99 8.88 7.77 6.66 5.55 4.44 3.33
Upside/Downside vs. current market price (%) 88.1 69.3 50.5 31.7 12.9 (5.9) (24.7) (43.6)
Source: Bloomberg, KT ZMICO Research Figure 4: Peer comparison COUNTRY
PER (x)
14
15E
PBV (x) 16E
14
15E
Yield (%) 16E
14
15E
ROE (%) 16E
14
15E
EV/EBITDA (x) 16E
14
15E
16E
LCC AIR ASIA BHD
Malaysia
90.7
7.3
5.8
1.7
0.8
0.7
1.1
2.8
3.5
1.7
7.5
12.4
12.9
8.6
AIRARABI
UAE
12.5
10.4
9.0
1.4
1.2
1.1
6.0
7.3
7.9
10.4
12.0
13.0
10.9
8.4
8.2 7.4
CEBU AIR INC
Philippines
60.9
6.5
6.2
2.4
1.7
1.4
1.2
2.4
2.7
4.0
29.0
22.6
9.7
5.3
5.3
EASYJET PLC
Britain
12.4
12.8
11.5
2.6
3.1
2.6
3.2
3.1
3.5
21.5
24.8
23.2
7.5
8.0
7.1
RYANAIR HOLDINGS PLC
Ireland
20.6
17.8
16.7
3.2
3.8
4.4
0.0
0.0
0.0
15.9
23.7
28.5
10.3
10.5
10.2
SOUTHWEST AIRLINES
USA
21.0
11.9
10.2
4.2
3.5
2.8
0.5
0.7
0.8
16.1
31.5
30.1
9.1
5.4
4.8
TIGER AIRWAYS HLDG
Singapore
n.a.
n.a.
227.5
6.6
4.0
5.1
0.0
0.0
0.0
n.m.
n.m.
n.m.
n.a.
210.5
17.5
VIRGIN AUSTRALIA HLDG
Australia
n.a.
n.a.
18.3
1.4
1.4
1.5
0.0
0.0
0.0
(32.9)
(10.4)
8.2
n.a.
16.3
5.9
WESTJET AIRLINES LTD
Canada
13.6
6.3
6.6
2.4
1.2
1.1
1.4
2.9
3.2
16.9
19.9
16.1
5.8
2.5
2.5
9.4
30.6
7.7
33.1
10.4
34.6
2.9
2.3
1.9
1.5
2.1
2.4
6.7
17.2
19.3
Conventional CHINA SOUTHERN AIRLINES‐H China
16.4
5.9
5.3
0.8
1.0
0.9
1.4
2.7
2.9
5.1
17.8
16.8
9.6
4.7
4.6
AIR CHINA LTD‐H
China
16.2
6.0
5.6
1.2
0.9
0.8
1.0
2.7
2.9
7.1
14.7
13.9
10.5
5.4
5.2
CATHAY PACIFIC AIRWAYS
Hong Kong
11.0
5.4
5.2
1.3
1.0
0.9
0.0
1.1
0.9
12.5
19.3
16.6
10.2
6.1
5.7
CHINA EASTERN AIRLINES‐H
China
21.1
8.3
7.6
1.3
0.9
0.8
2.1
4.5
4.9
5.5
11.5
11.7
8.2
5.5
5.3
KOREAN AIR LINES CO LTD
South Korea
34.2
38.1
19.6
0.9
1.1
1.0
2.0
1.8
3.2
2.7
2.9
5.1
4.4
5.2
4.0
SINGAPORE AIRLINES LTD
Singapore
n.a.
n.a.
9.1
1.3
1.0
0.9
0.0
0.0
0.0
(20.3)
(24.6)
12.0
9.2
7.7
7.2
Average (simple)
EVA AIRWAYS CORP
Taiwan
n.a.
8.2
8.3
2.1
1.4
1.2
0.0
0.2
0.6
(3.7)
18.6
14.7
9.3
5.3
5.2
CHINA AIRLINES LTD
Taiwan
n.a.
8.3
8.7
1.6
1.1
1.0
0.0
1.3
0.9
(1.5)
12.7
11.3
9.3
5.5
5.4
19.8
11.5
8.7
1.3
1.0
0.9
0.8
1.8
2.0
0.9
12.8
11.6
8.8
5.7
5.3
Average (simple)
Source: Bloomberg
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 5
Financial tables PROFIT & LOSS (Btm) Revenues Cost of sales and service Gross profit SG&A expense EBITDA Depreciation & amortization EBIT Interest expense Equity earnings Other income / exp. EBT Corporate tax Minority interests Net profit Reported EPS Fully diluted EPS Core net profit Core EPS Dividend (Bt) BALANCE SHEET (Btm) Cash and equivalents Inventories PP&E‐net Other assets Total assets ST debt & current portion Long‐term debt Total liabilities Minority interests Shareholder equity Total liab. & shareholder equity CASH FLOW (Btm) Net income Depreciation & amortization Change in working capital FX, non‐cash adjustment & others 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 (%) Core EPS growth (%) Gross margin (%) EBITDA margin (%) Operating margin (%) Net margin (%) Core profit margin (%) Effective tax rate (%) FINANCIAL QUALITY Total debt to capital employed (x) Net debt to equity (x) Interest coverage (x)
2012 16,409 (14,018) 2,391 (885) 1,648 (141) 1,506 (17) 0 14,791 16,280 (436) (331) 15,513 3.20 3.20 804 0.17 0.00
2013 23,994 (19,928) 4,066 (1,756) 2,712 (402) 2,310 (171) 0 291 2,430 (651) (736) 1,043 0.22 0.22 914 0.19 0.00
2014 25,981 (23,708) 2,273 (1,925) 1,166 (818) 348 (313) 0 231 267 1 (85) 183 0.04 0.04 120 0.02 0.00
2015E 31,670 (26,036) 5,634 (2,317) 4,450 (1,133) 3,317 (448) 0 (74) 2,795 (315) (1,235) 1,244 0.26 0.26 1,450 0.30 0.21
2012 6,166 80 3,075 25,288 34,609 137 1,783 9,892 6,459 18,259 34,609
2013 6,453 90 10,956 27,436 44,935 615 7,546 18,260 7,329 19,346 44,935
2014 6,298 97 16,033 27,073 49,502 959 11,118 22,486 7,482 19,534 49,502
2015E 6,885 132 17,942 27,313 52,272 1,271 11,616 23,647 8,717 19,907 52,271
2012 15,513 141 1,649 (14,660) 2,643 478 (2,308) (1,830) (345) 2,690 0 0 2,345 3,158 813 0.17
2013 1,043 402 2,445 131 4,020 (2,082) (3,483) (5,565) (348) 0 0 0 (348) (1,894) (1,545) (0.32)
2014 183 818 655 194 1,849 (980) 3,004 2,025 (1,038) 0 0 0 (1,038) 2,836 3,874 0.80
2015E 1,244 1,133 (495) 206 2,088 (2,312) 0 (2,312) 811 0 0 0 811 586 (224) (0.05)
2012 98.2 65.5 (27.4) 14.6 10.0 9.2 94.5 4.9 2.7
2013 46.2 64.6 13.7 16.9 11.3 9.6 4.3 3.8 26.8
2014 8.3 (57.0) (86.8) 8.7 4.5 1.3 0.7 0.5 (0.5)
2015E 21.9 281.5 1,106.8 17.8 14.1 10.5 3.9 4.6 11.3
2012 0.10 cash 69.57
2013 0.30 0.09 12.05
2014 0.38 0.30 3.73
2015E 0.39 0.30 9.22
2016E 36,591 (29,922) 6,669 (2,682) 5,445 (1,458) 3,987 (473) 0 180 3,694 (384) (1,506) 1,805 0.37 0.37 1,768 0.36 0.26
2016E 7,404 153 20,976 27,486 56,019 1,577 11,871 25,347 10,223 20,449 56,019
2017E 7,783 169 23,731 27,620 59,302 1,882 11,821 26,520 11,783 20,998 59,302
2016E 1,805 1,458 139 (37) 3,364 (2,390) 0 (2,390) 560 0 (1,015) 0 (455) 520 975 0.20
2017E 40,444 (33,339) 7,106 (2,980) 5,909 (1,783) 4,126 (487) 0 152 3,790 (398) (1,560) 1,832 0.38 0.38 1,832 0.38 0.26
2017E 1,832 1,783 135 0 3,750 (2,390) 0 (2,390) 255 0 (1,237) 0 (982) 378 1,361 0.28
2016E 15.5 22.4 21.9 18.2 14.9 10.9 4.9 4.8 10.4
2017E 10.5 8.5 3.6 17.6 14.6 10.2 4.5 4.5 10.5
2016E 0.40 0.30 10.70
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 5
2017E 0.39 0.28 11.31
Note: KT ZMICO is a partnership between KTB and ZMICO. 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. 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, SUTHA, ZMICO, MAKRO, CPALL, SAFARI, PACE, PLE, TPOLY, TFG. KT ZMICO is a co‐underwriter of TKN.
Anti‐corruption Progress Indicator
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 BUY: Expecting positive total returns of 15% or more over the next 12 months OUTPERFORM: Expecting total returns between ‐10% to +15%; returns expected to exceed market returns over a six‐month period due to specific catalysts UNDERPERFORM: Expecting total returns between ‐10% to +15%; returns expected to be below market returns over a six‐month period due to specific catalysts SELL: Expecting negative total returns of 10% or more over the next 12 months
SECTOR RECOMMENDATIONS OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index by at least 10% over the next 12 months. NEUTRAL: The industry, as defined by the analyst's coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months. UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index by 10% over the next 12 months.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 5 of 5
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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.
