Asia Aviation
Asia Aviation Outperform (17E TP Bt6.60)
Earnings Review
Close Bt6.30
Transport & Logistics August 10, 2017
Beat forecast/Below forecast/In line
Below estimates from cost increase Maintain “Outperform” Although AAV’s net profit in 2Q17 was below the expectation, we decide to keep our projection unchanged as we believe net profit will strongly improve in 2H17E thanks to the expected rise of passenger volume due to the government’s measure to encourage domestic travel coupled with Chinese tourist improvement. We thus maintain our “Outperform” rating with the PER‐based target price of Bt6.60 (based on 20x PER, +0.5SD) for AAV.
Results date: August 9, 2017 Price Performance (%)
2Q17 normalized profit below expectation AAV reported net profit of Bt171mn, including FX gain of Bt15mn owing to the Thai baht strengthening against the US$. Stripping out extra items, AAV delivered normalized profit of Bt156mn, falling by 62% YoY and 69% QoQ, below our expectation (of Bt377mn) and the consensus estimate (of Bt242mn), owing mainly to higher‐than‐expected cost of services, which lowered the GPM to 13% vs. our expectation of 17%. The norm. profit decline in 2Q17 was due mainly to higher costs, especially from fuel expenses (jet fuel price & excise tax). Meanwhile, personnel, leasing and other service costs also increased from fleet expansion to 54, vs. 49 and 53 in 2Q16 and 1Q17, respectively.
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
0.397
0.451
KT ZMICO vs. consensus Share data
‐16.9%
‐22.4%
Reuters / Bloomberg
AAV.BK/AAV TB
Paid‐up Shares (m)
4,850.00
Par (Bt)
0.10
Market cap (Bt bn / US$ m) Foreign limit / actual (%)
31.00/919.00 0.10/0.10
52 week High / Low (Bt)
7.80/5.35
Avg. daily T/O (shares 000)
35,299.00
NVDR (%)
7.78
Estimated free float (%)
63.94
Beta
1.32
URL
www.aavplc.co.th
CGR
Anti‐corruption
n.a.
Raenoo Bhandasukdi Analyst no. 17989 [email protected]
Ticket fares fell by 5% YoY, in line with target In 1Q17, AAV reported passenger volume of 4.69mn (+12.5% YoY, ‐3.3% QoQ) and revenue of Bt8.4bn, +8% YoY, ‐9% QoQ on the seasonal pattern. The average ticket fare fell to Bt1,476/pax, ‐5% YoY, ‐6% QoQ, in line with our expectation. However, the decline of ticket fares looked better compared with the ‐9% YoY drop in 1Q17. Maintain earnings projection In 1H17, AAV delivered a normalized profit of Bt654mn, accounting for 44% of our full‐year projection. Although the 2Q17 earnings fell short of our expectation, we decide to maintain our earnings estimate for the whole year given the potential positive impact from the government’s policy to encourage domestic tourism in 4Q60, including a tax incentive for air tickets for travel. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm. profit (Btmn) Norm. EPS (Bt) Norm. EPS growth (%) DPS (Bt) BV (Bt) FY Ended 31 Dec Norm. PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
2015 30,345 1,078 0.22 1,181 0.24 882.68 0.10 4.15 2015 25.88 9.80 1.52 1.59 5.95 32.00
2016 33,054 1,869 0.39 1,909 0.40 61.68 0.15 4.39 2016 16.00 8.00 1.44 2.38 9.22 41.00
2017E 37,003 1,581 0.33 1,494 0.31 (21.75) 0.12 4.58 2017E 20.45 8.92 1.37 1.90 6.87 44.52
66 (0) 2695‐5836
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2018E 40,776 1,717 0.35 1,717 0.35 14.93 0.14 4.80 2018E 17.79 7.81 1.31 2.19 7.54 40.45
2019E 42,891 1,823 0.38 1,823 0.38 6.15 0.15 5.03 2019E 16.76 7.19 1.25 2.32 7.65 36.36
Figure 1: AAV’s PER band and sensitivity of market prices based on PER at different standard deviation levels (X)
2017E +1.0SD +0.5SD Average ‐0.5SD ‐1.0SD ‐1.5SD ‐2.0SD ‐2.5SD
45 40 35 +1.0 S.D.
30 25
Avg.
20
-0.50S.D.
15
-1 .0S.D.
Apr-17
Dec-16
Sep-16
Feb-16
May-16
Jul-15
Oct-15
Apr-15
Dec-14
Sep-14
Feb-14
May-14
Nov-13
Jul-13
Apr-13
Dec-12
May-12
Sep-12
10
PER (x) 29.0 25.9 22.7 19.6 16.4 13.3 10.1 7.0
Implied market price (Bt) 9.57 8.55 7.53 6.51 5.49 4.47 3.46 2.44
Upside/Downside vs. current market price (%) 51.9 35.7 19.6 3.4 (12.8) (29.0) (45.1) (61.3)
Source: Bloomberg, KT ZMICO Research
Figure 2: AAV’s 2Q17 earnings review 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 (%) Source: AAV, KT ZMICO Research
2Q16 7,914 1,359 (613) 1,033 (109) 25 76 14 (330) 423 408 0.09
1Q17 9,393 1,824 (747) 1,405 (158) 9 (36) 72 (393) 570 499 0.12
2Q17 8,538 1,073 (697) 733 (172) 21 55 15 (124) 171 156 0.04
% YoY 7.9 (21.0) 13.8 (29.1) 57.3 (17.0) n.m. 6.5 (62.4) (59.6) (61.9) (59.6)
% QoQ (9.1) (41.2) (6.7) (47.8) 8.4 136.7 n.m. (79.0) (68.4) (70.1) (68.8) (70.1)
1H16 17,085 4,062 (1,276) 3,358 (236) 37 (14) 13 (1,155) 1,432 1,419 0.30
1H17 17,932 2,897 (1,444) 2,138 (330) 29 19 87 (517) 741 654 0.15
17.2 13.1 5.3 1.2 6.8 0.6 4.4 7.9
19.4 15.0 6.1 1.0 6.8 0.7 4.5 10.6
12.6 8.6 2.0 1.0 2.2 0.8 4.5 3.1
23.8 19.7 8.4 1.2 11.8 0.6 4.4 13.7
16.2 11.9 4.1 1.0 4.4 0.8 4.5 6.8
% YoY 5.0 (28.7) 13.2 (36.3) 39.9 (21.0) n.m. 571.4 (55.3) (48.2) (53.9) (48.2)
2017E 37,003 6,017 (2,821) 4,536 (545) 65 ‐ 87 (1,222) 1,581 1,494 0.326
YTD (% of 17E) 48.5 48.1 51.2 47.1 60.6 44.8 ‐ 100.0 42.3 46.9 43.8 46.9
16.3 12.3 4.3 0.9 5.9 0.5 4.6 7.3
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, TTL, NMG, SAWAD.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD) Excellent (scores: 90 ‐ 100) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
Anti‐corruption Progress Indicator Source: Sec, Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC)
Level 1 (Committed) : Organization’s statement or board's resolution to work against corruption and to be in compliance with all relevant laws. Level 2 (Declared) : Public declaration statement to participate in Thailand's private sector Collective Action Coalition Against Corruption (CAC) or equivalent initiatives Level 3 (Established) : Public out preventive measures, risk assessment, communication and training for all employees, including consistent monitoring and review processes Level 4 (Certified) : Audit engagement by audit committee or auditors approved by the office of SEC, and receiving certification or assurance by independent external assurance providers (CAC etc.) Level 5 (Extended) : Extension of the anti‐corruption policy to business partners in the supply chain, and disclosure of any current investigations, prosecutions or closed cases Insufficient or not clearly defined policy Data not available / no policy
DISCLAIMER This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS
SECTOR RECOMMENDATIONS
BUY: Expecting positive total returns of 15% or more OVERWEIGHT: The industry, as defined by the analyst's over the next 12 months coverage universe, is expected to outperform the relevant OUTPERFORM: Expecting total returns between ‐10% primary market index by at least 10% over the next 12 months. to +15%; returns expected to exceed market returns NEUTRAL: The industry, as defined by the analyst's coverage over a six‐month period due to specific catalysts universe, is expected to perform in line with the relevant UNDERPERFORM: Expecting total returns between primary market index over the next 12 months. ‐10% to +15%; returns expected to be below market returns over a six‐month period due to specific UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant catalysts SELL: Expecting negative total returns of 10% or more primary market index by 10% over the next 12 months. 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 Bt6.30
Transport & Logistics August 10, 2017
Beat forecast/Below forecast/In line
Below estimates from cost increase Maintain “Outperform” Although AAV’s net profit in 2Q17 was below the expectation, we decide to keep our projection unchanged as we believe net profit will strongly improve in 2H17E thanks to the expected rise of passenger volume due to the government’s measure to encourage domestic travel coupled with Chinese tourist improvement. We thus maintain our “Outperform” rating with the PER‐based target price of Bt6.60 (based on 20x PER, +0.5SD) for AAV.
Results date: August 9, 2017 Price Performance (%)
2Q17 normalized profit below expectation AAV reported net profit of Bt171mn, including FX gain of Bt15mn owing to the Thai baht strengthening against the US$. Stripping out extra items, AAV delivered normalized profit of Bt156mn, falling by 62% YoY and 69% QoQ, below our expectation (of Bt377mn) and the consensus estimate (of Bt242mn), owing mainly to higher‐than‐expected cost of services, which lowered the GPM to 13% vs. our expectation of 17%. The norm. profit decline in 2Q17 was due mainly to higher costs, especially from fuel expenses (jet fuel price & excise tax). Meanwhile, personnel, leasing and other service costs also increased from fleet expansion to 54, vs. 49 and 53 in 2Q16 and 1Q17, respectively.
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
0.397
0.451
KT ZMICO vs. consensus Share data
‐16.9%
‐22.4%
Reuters / Bloomberg
AAV.BK/AAV TB
Paid‐up Shares (m)
4,850.00
Par (Bt)
0.10
Market cap (Bt bn / US$ m) Foreign limit / actual (%)
31.00/919.00 0.10/0.10
52 week High / Low (Bt)
7.80/5.35
Avg. daily T/O (shares 000)
35,299.00
NVDR (%)
7.78
Estimated free float (%)
63.94
Beta
1.32
URL
www.aavplc.co.th
CGR
Anti‐corruption
n.a.
Raenoo Bhandasukdi Analyst no. 17989 [email protected]
Ticket fares fell by 5% YoY, in line with target In 1Q17, AAV reported passenger volume of 4.69mn (+12.5% YoY, ‐3.3% QoQ) and revenue of Bt8.4bn, +8% YoY, ‐9% QoQ on the seasonal pattern. The average ticket fare fell to Bt1,476/pax, ‐5% YoY, ‐6% QoQ, in line with our expectation. However, the decline of ticket fares looked better compared with the ‐9% YoY drop in 1Q17. Maintain earnings projection In 1H17, AAV delivered a normalized profit of Bt654mn, accounting for 44% of our full‐year projection. Although the 2Q17 earnings fell short of our expectation, we decide to maintain our earnings estimate for the whole year given the potential positive impact from the government’s policy to encourage domestic tourism in 4Q60, including a tax incentive for air tickets for travel. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm. profit (Btmn) Norm. EPS (Bt) Norm. EPS growth (%) DPS (Bt) BV (Bt) FY Ended 31 Dec Norm. PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
2015 30,345 1,078 0.22 1,181 0.24 882.68 0.10 4.15 2015 25.88 9.80 1.52 1.59 5.95 32.00
2016 33,054 1,869 0.39 1,909 0.40 61.68 0.15 4.39 2016 16.00 8.00 1.44 2.38 9.22 41.00
2017E 37,003 1,581 0.33 1,494 0.31 (21.75) 0.12 4.58 2017E 20.45 8.92 1.37 1.90 6.87 44.52
66 (0) 2695‐5836
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2018E 40,776 1,717 0.35 1,717 0.35 14.93 0.14 4.80 2018E 17.79 7.81 1.31 2.19 7.54 40.45
2019E 42,891 1,823 0.38 1,823 0.38 6.15 0.15 5.03 2019E 16.76 7.19 1.25 2.32 7.65 36.36
Figure 1: AAV’s PER band and sensitivity of market prices based on PER at different standard deviation levels (X)
2017E +1.0SD +0.5SD Average ‐0.5SD ‐1.0SD ‐1.5SD ‐2.0SD ‐2.5SD
45 40 35 +1.0 S.D.
30 25
Avg.
20
-0.50S.D.
15
-1 .0S.D.
Apr-17
Dec-16
Sep-16
Feb-16
May-16
Jul-15
Oct-15
Apr-15
Dec-14
Sep-14
Feb-14
May-14
Nov-13
Jul-13
Apr-13
Dec-12
May-12
Sep-12
10
PER (x) 29.0 25.9 22.7 19.6 16.4 13.3 10.1 7.0
Implied market price (Bt) 9.57 8.55 7.53 6.51 5.49 4.47 3.46 2.44
Upside/Downside vs. current market price (%) 51.9 35.7 19.6 3.4 (12.8) (29.0) (45.1) (61.3)
Source: Bloomberg, KT ZMICO Research
Figure 2: AAV’s 2Q17 earnings review 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 (%) Source: AAV, KT ZMICO Research
2Q16 7,914 1,359 (613) 1,033 (109) 25 76 14 (330) 423 408 0.09
1Q17 9,393 1,824 (747) 1,405 (158) 9 (36) 72 (393) 570 499 0.12
2Q17 8,538 1,073 (697) 733 (172) 21 55 15 (124) 171 156 0.04
% YoY 7.9 (21.0) 13.8 (29.1) 57.3 (17.0) n.m. 6.5 (62.4) (59.6) (61.9) (59.6)
% QoQ (9.1) (41.2) (6.7) (47.8) 8.4 136.7 n.m. (79.0) (68.4) (70.1) (68.8) (70.1)
1H16 17,085 4,062 (1,276) 3,358 (236) 37 (14) 13 (1,155) 1,432 1,419 0.30
1H17 17,932 2,897 (1,444) 2,138 (330) 29 19 87 (517) 741 654 0.15
17.2 13.1 5.3 1.2 6.8 0.6 4.4 7.9
19.4 15.0 6.1 1.0 6.8 0.7 4.5 10.6
12.6 8.6 2.0 1.0 2.2 0.8 4.5 3.1
23.8 19.7 8.4 1.2 11.8 0.6 4.4 13.7
16.2 11.9 4.1 1.0 4.4 0.8 4.5 6.8
% YoY 5.0 (28.7) 13.2 (36.3) 39.9 (21.0) n.m. 571.4 (55.3) (48.2) (53.9) (48.2)
2017E 37,003 6,017 (2,821) 4,536 (545) 65 ‐ 87 (1,222) 1,581 1,494 0.326
YTD (% of 17E) 48.5 48.1 51.2 47.1 60.6 44.8 ‐ 100.0 42.3 46.9 43.8 46.9
16.3 12.3 4.3 0.9 5.9 0.5 4.6 7.3
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, TTL, NMG, SAWAD.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD) Excellent (scores: 90 ‐ 100) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
Anti‐corruption Progress Indicator Source: Sec, Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC)
Level 1 (Committed) : Organization’s statement or board's resolution to work against corruption and to be in compliance with all relevant laws. Level 2 (Declared) : Public declaration statement to participate in Thailand's private sector Collective Action Coalition Against Corruption (CAC) or equivalent initiatives Level 3 (Established) : Public out preventive measures, risk assessment, communication and training for all employees, including consistent monitoring and review processes Level 4 (Certified) : Audit engagement by audit committee or auditors approved by the office of SEC, and receiving certification or assurance by independent external assurance providers (CAC etc.) Level 5 (Extended) : Extension of the anti‐corruption policy to business partners in the supply chain, and disclosure of any current investigations, prosecutions or closed cases Insufficient or not clearly defined policy Data not available / no policy
DISCLAIMER This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS
SECTOR RECOMMENDATIONS
BUY: Expecting positive total returns of 15% or more OVERWEIGHT: The industry, as defined by the analyst's over the next 12 months coverage universe, is expected to outperform the relevant OUTPERFORM: Expecting total returns between ‐10% primary market index by at least 10% over the next 12 months. to +15%; returns expected to exceed market returns NEUTRAL: The industry, as defined by the analyst's coverage over a six‐month period due to specific catalysts universe, is expected to perform in line with the relevant UNDERPERFORM: Expecting total returns between primary market index over the next 12 months. ‐10% to +15%; returns expected to be below market returns over a six‐month period due to specific UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant catalysts SELL: Expecting negative total returns of 10% or more primary market index by 10% over the next 12 months. 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
