1Q17 earnings missed consensus
Sino‐Thai Engineering and Construction Outperform (17E TP Bt27.00)
Company Update
Close Bt24.60
Construction Services May 16, 2017
Earnings upgrade/Earnings downgrade/Overview unchanged
1Q17 earnings missed consensus Price Performance (%)
Maintain “Outperform” with TP lowered to Bt27 (SOTP) We lower STEC’s earnings in 2017‐18E after it announced weak results in 1Q17. As a result, STEC’s target price is also lowered to Bt27 (vs. Bt30 previously), based on the SOTP valuation method by including the investment value in the Japanese power plant (40% stake) in our calculation (based on 9% IRR). We maintain our “Outperform” rating for STEC, thanks to huge backlog and better earnings visibility compared to peers. We view any share price decline on the weakening results as an opportunity to accumulate. Net profit fell in 1Q17 as gross profit margin declined STEC reported net profit of Bt249mn in 1Q17, falling by 7% YoY and 63% QoQ, 10% below the consensus estimate. Stripping out the extra item booked in 4Q16 (from asset revaluation), STEC delivered normalized profit of Bt249mn in 1Q17, dropping by 7% YoY, owing mainly to the gross profit margin (GPM) contracting to 8.2% vs. 9.1% in 1Q16, as the current backlog contains public infrastructure projects with a low margin. STEC’s revenue in 1Q17 increased by 12% YoY and 4% QoQ to Bt5bn due to the construction progress of many mass transit projects, buildings, and small power plants. On a quarter‐to‐quarter basis, norm. profit improved by 26% QoQ due to the decline of SG&A expenses (seasonal pattern).
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
0.837
1.089
KT ZMICO vs. consensus Share data
‐17.6%
‐2.7%
Reuters / Bloomberg
STEC.BK/STEC TB
Paid‐up Shares (m)
1,525.11
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
38.00/1,086.00
Foreign limit / actual (%)
49.00/31.97
52 week High / Low (Bt)
29.00/20.40
Avg. daily T/O (shares 000) NVDR (%)
8,173.00 8.56
Estimated free float (%)
70.63
Beta
1.23
URL
www.stecon.co.th
CGR
Anti‐corruption
n.a.
Raenoo Bhandasukdi Analyst no. 17989 [email protected] 66 (0) 2695‐5836
Substantial backlog (and potential) of Bt96.4bn (4.8x yearly revenue) As of 1Q17, we calculate that STEC’s backlog likely stands at Bt60.9bn, including YTD signed contracts of Bt24.3bn (Orange Line mass transit, motorway (4 contracts) and head office for Ministry of Finance). Meanwhile, STEC will likely sign civil works contracts of the Yellow and Pink Line mass transit projects valued at Bt35.5bn soon (projects are under negotiations between MRTA and BSR‐JV). As a result, STEC’s backlog on hand (and awaiting to be signed) will likely stand at Bt96.4bn, which will support revenue over the next 4.8 years. Lower net profit estimates in 2017‐18E by 19% and 17% Based on the lower‐than‐expected earnings in 1Q17 from the decline of the GPM and slower‐than‐expected revenue improvement, we lower STEC’s net profit estimates in 2017‐18E by 19% and 17% to Bt1.1bn and Bt1.6bn, respectively. We lower revenue in 2017‐18E by 8% for both years and lower the GPM to 8% (vs. 8.5% previously). 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 (%)
2015 18,331 1,527 1.00 1,168 0.77 (23.16) 0.33 6.09
2016 17,953 1,381 0.91 904 0.59 (22.65) 0.22 6.79
2017E 20,908 1,055 0.69 1,055 0.69 16.68 0.17 7.31
2018E 30,954 1,618 1.06 1,618 1.06 53.40 0.26 8.11
2019E 34,813 1,935 1.27 1,935 1.27 19.59 0.31 9.07
2015 24.58 15.39 4.04 1.34 13.25 cash
2016 27.17 17.86 3.62 0.89 9.20 cash
2017E 35.58 11.06 3.36 0.68 9.81 cash
2018E 23.19 6.49 3.03 1.05 13.75 cash
2019E 19.39 3.37 2.71 1.25 14.76 cash
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 5
Figure 1: Summary of sum‐of‐the‐parts (SOTP) valuation for STEC Company
STEC’s
Type
Capacity
stake (%) Construction service Power plants - Onikoube project SOTP‐based TP
40.00
Location
(MW)
COD
154.98
Japan
2021
Value to STEC (Bt)
PER of 35x (+1.5SD)
Solar
Valuation Method
Period
IRR 9%
24.2 2.8 27.0
Source: KTZMICO research
Figure 2: STEC’s PER band and sensitivity of market prices based on PER at different standard deviation levels (X) 45 40 +1.5 S.D. 35
+1.0 S.D. +0.5 S.D.
30
Avg.
25 20
-0.5 S.D.
15
-1 S.D.
10
Jan-17
Apr-16
Jul-15
Oct-14
Jan-14
Apr-13
Jul-12
Oct-11
Apr-10
Jul-09
Oct-08
Jan-08
0
Jan-11
-1 S.D.
5
2017E +2.0SD +1.5SD +1.0SD +0.5SD average ‐0.5SD ‐1.0SD
PER (x) 39.4 35.4 31.4 27.4 23.4 19.4 15.4
Implied market price (Bt) 33.90 30.46 27.02 23.58 20.14 16.71 13.27
Upside/Downside vs. current market price (%) 37.81 23.83 9.85 (4.13) (18.11) (32.09) (46.07)
Source: Bloomberg, KT ZMICO Research
Figure 3: 1Q17 earnings review Profit and Loss (Btmn) Year‐end 31 Dec Revenue Gross profit SG&A expenses EBITDA Interest expenses Other income Income tax Other extra items Gn (Ls) from affiliates 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 (%)
1Q16 4,486 407 (109) 429 (2) 21 (54) ‐ 8 268 268 0.18
4Q16 4,839 454 (212) 371 (6) 21 (57) 477 8 674 198 0.44
1Q17 5,011 411 (118) 413 (5) 15 (61) ‐ 9 249 249 0.16
% YoY 11.7 1.0 8.4 (3.6) 136.7 (25.5) 13.9 ‐ 20.8 (7.0) (7.0) (7.0)
% QoQ 3.6 (9.5) (44.5) 11.6 (5.5) (27.3) 7.3 ‐ 21.2 (63.0) 26.1 (63.0)
2016 17,953 1,604 (554) 1,570 (13) 75 (218) 477 26 1,381 904 0.91
2017E 20,908 1,681 (523) 1,967 (9) 147 (254) ‐ 30 1,055 1,055 0.69
9.1 9.6 6.0 1.2 130.7 0.0 6.3 11.4
9.4 7.7 4.1 1.1 42.3 0.1 6.8 8.0
8.2 8.3 5.0 1.2 54.2 0.1 6.9 9.6
8.9 8.7 7.7 1.1 77.9 0.1 6.8 14.1
8.5 10.0 5.7 1.0 167.0 0.0 7.4 12.1
% YoY 16.5 4.9 (5.6) 25.3 (34.2) 95.3 16.7 ‐ 16.5 (23.6) 16.7 (23.6)
YTD (% of 17E) 24.0 24.4 22.5 21.0 60.9 10.4 24.1 ‐ 30.4 23.6 23.6 23.6
Source: STEC, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 5
Figure 4: Progress of public infrastructure development projects (action plan) Projects
Value
Status
2017 Regional airport development Maritime: Development of Ferry Terminal Road Facilitation: Intermodal Facility ‐ Chiang Khong SBIA # 5: Automated people mover (APM) procure & install Double Track: Huahin ‐ Prachuap Khiri Khan 84 km. Double Track: Nakorn Pathom ‐ Hua Hin 165 km. Double Track: Map Ka Boa ‐ Jira Junction, 132 km. Double Track: Lopburi ‐ Pak Nam Pho, 148 km. Double Track: Prachuap Khiri Khan ‐ Chumphon, 167 km. SBIA # 3: 1st Midfield Satellite (2‐4th floors), South Tunnel SBIA # 4: Main terminal expansion (East), Office Building SBIA # 6: Baggage Handling System (BHS) procure & install Mass Transit: South Purple (Taopoon ‐ Ratburana), 20 km. Mass Transit: Dark Green (Samutprakan ‐ Bang Pu) Mass Transit: Dark Green (Khu Kot ‐ Lum Lukka)
290,479 7,686 982 2,366 2,895 7,340 19,270 28,505 23,921 16,234 17,462 4,684 6,182 131,004 12,146 9,803
Partially started construction (Mae Sod & Baetong Airport) Partially started (Pattaya ‐ Hua Hin) on Feb‐17 Lowest bidder: Sam Prasith Partnership (for 1st phase: Bt1,360mn) Lowest bidder: ITD Target to sell TOR on May‐17, price bidding contest: 4/8/17 Target to sell TOR on Jun‐17 Expected to start tendering process in 2H17 Expected to start tendering process in 2H17 Expected to start tendering process in 2H17 Target to start tendering in 17E Target to start tendering in 17E Target to start tendering in 17E EIA approved (2017 action plan, PPP Fast Track) EIA approved (2017 action plan) EIA approved (2017 action plan)
Next 3rd expressway Northern Route (N2 & E‐W Corridor) Double Track: Chumpon ‐ Surat Thani Double Track: Surat Thani ‐ Songkhla Double Track: Hat Yai ‐ Padang Beza Double Track: Paknampho ‐ Den Chai Double Track: Den Chai ‐ Chiang Mai Double Track: Den Chai ‐ Chiang Rai ‐ Chiang Khong Double Track: Khon Kaen ‐ Nong Khai Double Track: Jira Junction ‐ Ubonratchathani Double Track: Ban Pai ‐ Nakhon Phanom Commuter: Light & Dark Red (Rangsit ‐ TU, Taling Chan ‐ Siriraj ‐ Salaya) Mass Transit: ARL Mass Transit: Blue Line (Bang Kae ‐ Phutthamonton 4) Mass Transit: Orange (West, Taling Chan ‐ TCC) Mass Transit: Phuket Maritime: Laem Chabang Development Phase III Road Facilitation: Truck Rest Area on Main Routes Road Facilitation: Cross‐border Logistics Center Nakorn Phanom Road Facilitation: Regional Logistics Center (9 border provinces) Road Facilitation: Regional Logistics Center (8 regional cities) Public Bus Procurement and Stations (200 units) Common ticketing system Motorway: Nakhon Pathom ‐ Cha Am Motorway: Hat Yai ‐ Malaysia Border Motorway: Rama 3 ‐ Dao Kanong ‐ West Outer Ring Road Expressway: Kratu ‐ Patong SBIA's Baggage Handling System Upgrade
852,537 14,382 23,385 51,824 7,942 56,066 59,924 76,979 26,066 35,840 60,352 26,639 31,149 21,197 123,354 23,499 35,100 550 1,054 8,066 9,438 2,272 1,355 80,600 30,500 31,244 10,497 3,264
Target to propose to Cabinet/PPP Committee Approval in 2017 Under EIA study process Under EIA study process EIA under reviewed by OTP Under EIA study process Under design process Target to propose to Cabinet/PPP Committee Approval in 2017 Under EIA study process Under EIA study process Target to propose to Cabinet/PPP Committee Approval in 2017 Cabinet approved in Jul‐16, to start bidding process in Aug‐17 Under EIA study process for 2nd phase (Bang Sue ‐ DMK) Target to start bidding process in 2017 Target to start bidding process in 2017, PPP Fast Track Target to propose development / policy driven (PPP Fast Track) Target to propose to Cabinet/PPP Committee Approval in 2017 Target to propose development / policy driven Under study (Target to propose to Cabinet/PPP Committee in 2017) Under study (Target to propose development / policy driven) Under study (Target to propose development / policy driven) Target to start bidding process in 2017 Target to be in service in 2017 PPP Fast Track Target to propose development / policy driven Target to start construction in 2017 Target to propose to Cabinet/PPP Committee Approval in 2017 Target to start construction in 2017
High Speed Trains Standard gauge: BKK ‐ Phitsanulok ‐ Chiang Mai Standard gauge: BKK ‐ Hua Hin Standard gauge: BKK ‐ Rayong Standard gauge: BKK ‐ Nong Khai, Kang Koi ‐ Map Ta Phut
1,065,782 449,473 94,673 152,488 369,148
Signed MOU with Japan, under study, PPP Fast Track Under PPP report review by SRT, under EIA review by OTP Under review based on EEC Committee to connect 3 airports MOU: Thai ‐ China, under study and design process
Source: AOT, CK, Ministry of Transport, Newspaper sources, KT ZMICO Research estimates
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 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)
2014 21,652 (19,435) 2,217 (583) 2,061 (427) 1,634 (18) 11 292 1,919 (389) (10) 1,521 1.00 1.00 1,521 1.00 0.40
2015 18,331 (16,599) 1,731 (448) 1,777 (494) 1,283 (13) 17 490 1,777 (232) (18) 1,527 1.00 1.00 1,168 0.77 0.33
2016 17,953 (16,349) 1,604 (554) 1,570 (520) 1,050 (13) 26 552 1,614 (218) (15) 1,381 0.91 0.91 904 0.59 0.22
2017E 20,908 (19,226) 1,681 (523) 1,967 (808) 1,159 (9) 30 147 1,327 (254) (18) 1,055 0.69 0.69 1,055 0.69 0.17
2018E 30,954 (28,493) 2,462 (774) 2,702 (1,014) 1,688 (9) 44 312 2,036 (390) (27) 1,618 1.06 1.06 1,618 1.06 0.26
2014 5,565 9,115 3,166 7,157 25,004 90 101 16,454 198 8,351 25,004
2015 2,065 8,379 3,197 9,022 22,661 152 82 13,153 216 9,292 22,661
2016 1,890 8,087 2,886 12,137 25,000 647 101 14,415 232 10,353 25,000
2017E 7,666 9,588 4,778 12,047 34,079 152 82 22,741 250 11,151 34,141
2018E 11,876 14,195 5,820 14,691 46,582 152 82 34,012 277 12,376 46,665
2014 1,521 427 (2,874) (14) (940) (1,281) 2,891 1,610 (123) (0) (763) 10 (876) (207) 669 0.44
2015 1,527 494 (4,744) 361 (2,363) (426) 2,406 1,980 (120) 0 (610) 18 (712) (1,095) (383) (0.25)
2016 1,381 520 184 (676) 1,409 125 (1,858) (1,733) 385 0 (503) 15 (103) (428) (325) (0.21)
2017E 1,055 808 7,467 0 9,330 (2,700) 0 (2,700) (514) 0 (336) 18 (831) 5,799 6,630 4.35
2018E 1,618 1,014 3,863 0 6,494 (2,056) 0 (2,056) 0 0 (256) 27 (229) 4,209 4,438 2.91
2014 (2.9) 5.4 1.5 10.2 9.5 7.5 7.0 7.0 20.3
2015 (15.3) (13.8) (23.2) 9.4 9.7 7.0 8.3 6.4 13.1
2016 (2.1) (11.7) (22.7) 8.9 8.7 5.8 7.7 5.0 13.5
2017E 16.5 25.3 16.7 8.0 9.4 5.5 5.0 5.0 19.2
2018E 48.1 37.3 53.4 8.0 8.7 5.5 5.2 5.2 19.2
2019E 12.5 17.6 19.6 8.0 9.1 5.5 5.6 5.6 19.2
2014 0.02 cash 91.74
2015 0.02 cash 114.82
2016 0.02 cash 100.27
2017E 0.02 cash 193.05
2018E 0.02 cash 260.53
2019E 0.02 cash 305.57
2019E 34,813 (32,041) 2,771 (870) 3,178 (1,277) 1,901 (9) 50 492 2,434 (467) (33) 1,935 1.27 1.27 1,935 1.27 0.31
2019E 18,714 15,964 7,171 15,986 57,835 152 82 43,739 310 13,840 57,889
2019E 1,935 1,277 6,614 0 9,825 (2,628) 0 (2,628) 1 0 (393) 33 (359) 6,838 7,197 4.72
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 5
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) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Anti‐corruption Progress Indicator
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
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 5 of 5
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 Bt24.60
Construction Services May 16, 2017
Earnings upgrade/Earnings downgrade/Overview unchanged
1Q17 earnings missed consensus Price Performance (%)
Maintain “Outperform” with TP lowered to Bt27 (SOTP) We lower STEC’s earnings in 2017‐18E after it announced weak results in 1Q17. As a result, STEC’s target price is also lowered to Bt27 (vs. Bt30 previously), based on the SOTP valuation method by including the investment value in the Japanese power plant (40% stake) in our calculation (based on 9% IRR). We maintain our “Outperform” rating for STEC, thanks to huge backlog and better earnings visibility compared to peers. We view any share price decline on the weakening results as an opportunity to accumulate. Net profit fell in 1Q17 as gross profit margin declined STEC reported net profit of Bt249mn in 1Q17, falling by 7% YoY and 63% QoQ, 10% below the consensus estimate. Stripping out the extra item booked in 4Q16 (from asset revaluation), STEC delivered normalized profit of Bt249mn in 1Q17, dropping by 7% YoY, owing mainly to the gross profit margin (GPM) contracting to 8.2% vs. 9.1% in 1Q16, as the current backlog contains public infrastructure projects with a low margin. STEC’s revenue in 1Q17 increased by 12% YoY and 4% QoQ to Bt5bn due to the construction progress of many mass transit projects, buildings, and small power plants. On a quarter‐to‐quarter basis, norm. profit improved by 26% QoQ due to the decline of SG&A expenses (seasonal pattern).
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
0.837
1.089
KT ZMICO vs. consensus Share data
‐17.6%
‐2.7%
Reuters / Bloomberg
STEC.BK/STEC TB
Paid‐up Shares (m)
1,525.11
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
38.00/1,086.00
Foreign limit / actual (%)
49.00/31.97
52 week High / Low (Bt)
29.00/20.40
Avg. daily T/O (shares 000) NVDR (%)
8,173.00 8.56
Estimated free float (%)
70.63
Beta
1.23
URL
www.stecon.co.th
CGR
Anti‐corruption
n.a.
Raenoo Bhandasukdi Analyst no. 17989 [email protected] 66 (0) 2695‐5836
Substantial backlog (and potential) of Bt96.4bn (4.8x yearly revenue) As of 1Q17, we calculate that STEC’s backlog likely stands at Bt60.9bn, including YTD signed contracts of Bt24.3bn (Orange Line mass transit, motorway (4 contracts) and head office for Ministry of Finance). Meanwhile, STEC will likely sign civil works contracts of the Yellow and Pink Line mass transit projects valued at Bt35.5bn soon (projects are under negotiations between MRTA and BSR‐JV). As a result, STEC’s backlog on hand (and awaiting to be signed) will likely stand at Bt96.4bn, which will support revenue over the next 4.8 years. Lower net profit estimates in 2017‐18E by 19% and 17% Based on the lower‐than‐expected earnings in 1Q17 from the decline of the GPM and slower‐than‐expected revenue improvement, we lower STEC’s net profit estimates in 2017‐18E by 19% and 17% to Bt1.1bn and Bt1.6bn, respectively. We lower revenue in 2017‐18E by 8% for both years and lower the GPM to 8% (vs. 8.5% previously). 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 (%)
2015 18,331 1,527 1.00 1,168 0.77 (23.16) 0.33 6.09
2016 17,953 1,381 0.91 904 0.59 (22.65) 0.22 6.79
2017E 20,908 1,055 0.69 1,055 0.69 16.68 0.17 7.31
2018E 30,954 1,618 1.06 1,618 1.06 53.40 0.26 8.11
2019E 34,813 1,935 1.27 1,935 1.27 19.59 0.31 9.07
2015 24.58 15.39 4.04 1.34 13.25 cash
2016 27.17 17.86 3.62 0.89 9.20 cash
2017E 35.58 11.06 3.36 0.68 9.81 cash
2018E 23.19 6.49 3.03 1.05 13.75 cash
2019E 19.39 3.37 2.71 1.25 14.76 cash
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Figure 1: Summary of sum‐of‐the‐parts (SOTP) valuation for STEC Company
STEC’s
Type
Capacity
stake (%) Construction service Power plants - Onikoube project SOTP‐based TP
40.00
Location
(MW)
COD
154.98
Japan
2021
Value to STEC (Bt)
PER of 35x (+1.5SD)
Solar
Valuation Method
Period
IRR 9%
24.2 2.8 27.0
Source: KTZMICO research
Figure 2: STEC’s PER band and sensitivity of market prices based on PER at different standard deviation levels (X) 45 40 +1.5 S.D. 35
+1.0 S.D. +0.5 S.D.
30
Avg.
25 20
-0.5 S.D.
15
-1 S.D.
10
Jan-17
Apr-16
Jul-15
Oct-14
Jan-14
Apr-13
Jul-12
Oct-11
Apr-10
Jul-09
Oct-08
Jan-08
0
Jan-11
-1 S.D.
5
2017E +2.0SD +1.5SD +1.0SD +0.5SD average ‐0.5SD ‐1.0SD
PER (x) 39.4 35.4 31.4 27.4 23.4 19.4 15.4
Implied market price (Bt) 33.90 30.46 27.02 23.58 20.14 16.71 13.27
Upside/Downside vs. current market price (%) 37.81 23.83 9.85 (4.13) (18.11) (32.09) (46.07)
Source: Bloomberg, KT ZMICO Research
Figure 3: 1Q17 earnings review Profit and Loss (Btmn) Year‐end 31 Dec Revenue Gross profit SG&A expenses EBITDA Interest expenses Other income Income tax Other extra items Gn (Ls) from affiliates 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 (%)
1Q16 4,486 407 (109) 429 (2) 21 (54) ‐ 8 268 268 0.18
4Q16 4,839 454 (212) 371 (6) 21 (57) 477 8 674 198 0.44
1Q17 5,011 411 (118) 413 (5) 15 (61) ‐ 9 249 249 0.16
% YoY 11.7 1.0 8.4 (3.6) 136.7 (25.5) 13.9 ‐ 20.8 (7.0) (7.0) (7.0)
% QoQ 3.6 (9.5) (44.5) 11.6 (5.5) (27.3) 7.3 ‐ 21.2 (63.0) 26.1 (63.0)
2016 17,953 1,604 (554) 1,570 (13) 75 (218) 477 26 1,381 904 0.91
2017E 20,908 1,681 (523) 1,967 (9) 147 (254) ‐ 30 1,055 1,055 0.69
9.1 9.6 6.0 1.2 130.7 0.0 6.3 11.4
9.4 7.7 4.1 1.1 42.3 0.1 6.8 8.0
8.2 8.3 5.0 1.2 54.2 0.1 6.9 9.6
8.9 8.7 7.7 1.1 77.9 0.1 6.8 14.1
8.5 10.0 5.7 1.0 167.0 0.0 7.4 12.1
% YoY 16.5 4.9 (5.6) 25.3 (34.2) 95.3 16.7 ‐ 16.5 (23.6) 16.7 (23.6)
YTD (% of 17E) 24.0 24.4 22.5 21.0 60.9 10.4 24.1 ‐ 30.4 23.6 23.6 23.6
Source: STEC, KT ZMICO Research
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Figure 4: Progress of public infrastructure development projects (action plan) Projects
Value
Status
2017 Regional airport development Maritime: Development of Ferry Terminal Road Facilitation: Intermodal Facility ‐ Chiang Khong SBIA # 5: Automated people mover (APM) procure & install Double Track: Huahin ‐ Prachuap Khiri Khan 84 km. Double Track: Nakorn Pathom ‐ Hua Hin 165 km. Double Track: Map Ka Boa ‐ Jira Junction, 132 km. Double Track: Lopburi ‐ Pak Nam Pho, 148 km. Double Track: Prachuap Khiri Khan ‐ Chumphon, 167 km. SBIA # 3: 1st Midfield Satellite (2‐4th floors), South Tunnel SBIA # 4: Main terminal expansion (East), Office Building SBIA # 6: Baggage Handling System (BHS) procure & install Mass Transit: South Purple (Taopoon ‐ Ratburana), 20 km. Mass Transit: Dark Green (Samutprakan ‐ Bang Pu) Mass Transit: Dark Green (Khu Kot ‐ Lum Lukka)
290,479 7,686 982 2,366 2,895 7,340 19,270 28,505 23,921 16,234 17,462 4,684 6,182 131,004 12,146 9,803
Partially started construction (Mae Sod & Baetong Airport) Partially started (Pattaya ‐ Hua Hin) on Feb‐17 Lowest bidder: Sam Prasith Partnership (for 1st phase: Bt1,360mn) Lowest bidder: ITD Target to sell TOR on May‐17, price bidding contest: 4/8/17 Target to sell TOR on Jun‐17 Expected to start tendering process in 2H17 Expected to start tendering process in 2H17 Expected to start tendering process in 2H17 Target to start tendering in 17E Target to start tendering in 17E Target to start tendering in 17E EIA approved (2017 action plan, PPP Fast Track) EIA approved (2017 action plan) EIA approved (2017 action plan)
Next 3rd expressway Northern Route (N2 & E‐W Corridor) Double Track: Chumpon ‐ Surat Thani Double Track: Surat Thani ‐ Songkhla Double Track: Hat Yai ‐ Padang Beza Double Track: Paknampho ‐ Den Chai Double Track: Den Chai ‐ Chiang Mai Double Track: Den Chai ‐ Chiang Rai ‐ Chiang Khong Double Track: Khon Kaen ‐ Nong Khai Double Track: Jira Junction ‐ Ubonratchathani Double Track: Ban Pai ‐ Nakhon Phanom Commuter: Light & Dark Red (Rangsit ‐ TU, Taling Chan ‐ Siriraj ‐ Salaya) Mass Transit: ARL Mass Transit: Blue Line (Bang Kae ‐ Phutthamonton 4) Mass Transit: Orange (West, Taling Chan ‐ TCC) Mass Transit: Phuket Maritime: Laem Chabang Development Phase III Road Facilitation: Truck Rest Area on Main Routes Road Facilitation: Cross‐border Logistics Center Nakorn Phanom Road Facilitation: Regional Logistics Center (9 border provinces) Road Facilitation: Regional Logistics Center (8 regional cities) Public Bus Procurement and Stations (200 units) Common ticketing system Motorway: Nakhon Pathom ‐ Cha Am Motorway: Hat Yai ‐ Malaysia Border Motorway: Rama 3 ‐ Dao Kanong ‐ West Outer Ring Road Expressway: Kratu ‐ Patong SBIA's Baggage Handling System Upgrade
852,537 14,382 23,385 51,824 7,942 56,066 59,924 76,979 26,066 35,840 60,352 26,639 31,149 21,197 123,354 23,499 35,100 550 1,054 8,066 9,438 2,272 1,355 80,600 30,500 31,244 10,497 3,264
Target to propose to Cabinet/PPP Committee Approval in 2017 Under EIA study process Under EIA study process EIA under reviewed by OTP Under EIA study process Under design process Target to propose to Cabinet/PPP Committee Approval in 2017 Under EIA study process Under EIA study process Target to propose to Cabinet/PPP Committee Approval in 2017 Cabinet approved in Jul‐16, to start bidding process in Aug‐17 Under EIA study process for 2nd phase (Bang Sue ‐ DMK) Target to start bidding process in 2017 Target to start bidding process in 2017, PPP Fast Track Target to propose development / policy driven (PPP Fast Track) Target to propose to Cabinet/PPP Committee Approval in 2017 Target to propose development / policy driven Under study (Target to propose to Cabinet/PPP Committee in 2017) Under study (Target to propose development / policy driven) Under study (Target to propose development / policy driven) Target to start bidding process in 2017 Target to be in service in 2017 PPP Fast Track Target to propose development / policy driven Target to start construction in 2017 Target to propose to Cabinet/PPP Committee Approval in 2017 Target to start construction in 2017
High Speed Trains Standard gauge: BKK ‐ Phitsanulok ‐ Chiang Mai Standard gauge: BKK ‐ Hua Hin Standard gauge: BKK ‐ Rayong Standard gauge: BKK ‐ Nong Khai, Kang Koi ‐ Map Ta Phut
1,065,782 449,473 94,673 152,488 369,148
Signed MOU with Japan, under study, PPP Fast Track Under PPP report review by SRT, under EIA review by OTP Under review based on EEC Committee to connect 3 airports MOU: Thai ‐ China, under study and design process
Source: AOT, CK, Ministry of Transport, Newspaper sources, KT ZMICO Research estimates
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Financial tables PROFIT & LOSS (Btm) Revenues Cost of sales and service Gross profit SG&A 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)
2014 21,652 (19,435) 2,217 (583) 2,061 (427) 1,634 (18) 11 292 1,919 (389) (10) 1,521 1.00 1.00 1,521 1.00 0.40
2015 18,331 (16,599) 1,731 (448) 1,777 (494) 1,283 (13) 17 490 1,777 (232) (18) 1,527 1.00 1.00 1,168 0.77 0.33
2016 17,953 (16,349) 1,604 (554) 1,570 (520) 1,050 (13) 26 552 1,614 (218) (15) 1,381 0.91 0.91 904 0.59 0.22
2017E 20,908 (19,226) 1,681 (523) 1,967 (808) 1,159 (9) 30 147 1,327 (254) (18) 1,055 0.69 0.69 1,055 0.69 0.17
2018E 30,954 (28,493) 2,462 (774) 2,702 (1,014) 1,688 (9) 44 312 2,036 (390) (27) 1,618 1.06 1.06 1,618 1.06 0.26
2014 5,565 9,115 3,166 7,157 25,004 90 101 16,454 198 8,351 25,004
2015 2,065 8,379 3,197 9,022 22,661 152 82 13,153 216 9,292 22,661
2016 1,890 8,087 2,886 12,137 25,000 647 101 14,415 232 10,353 25,000
2017E 7,666 9,588 4,778 12,047 34,079 152 82 22,741 250 11,151 34,141
2018E 11,876 14,195 5,820 14,691 46,582 152 82 34,012 277 12,376 46,665
2014 1,521 427 (2,874) (14) (940) (1,281) 2,891 1,610 (123) (0) (763) 10 (876) (207) 669 0.44
2015 1,527 494 (4,744) 361 (2,363) (426) 2,406 1,980 (120) 0 (610) 18 (712) (1,095) (383) (0.25)
2016 1,381 520 184 (676) 1,409 125 (1,858) (1,733) 385 0 (503) 15 (103) (428) (325) (0.21)
2017E 1,055 808 7,467 0 9,330 (2,700) 0 (2,700) (514) 0 (336) 18 (831) 5,799 6,630 4.35
2018E 1,618 1,014 3,863 0 6,494 (2,056) 0 (2,056) 0 0 (256) 27 (229) 4,209 4,438 2.91
2014 (2.9) 5.4 1.5 10.2 9.5 7.5 7.0 7.0 20.3
2015 (15.3) (13.8) (23.2) 9.4 9.7 7.0 8.3 6.4 13.1
2016 (2.1) (11.7) (22.7) 8.9 8.7 5.8 7.7 5.0 13.5
2017E 16.5 25.3 16.7 8.0 9.4 5.5 5.0 5.0 19.2
2018E 48.1 37.3 53.4 8.0 8.7 5.5 5.2 5.2 19.2
2019E 12.5 17.6 19.6 8.0 9.1 5.5 5.6 5.6 19.2
2014 0.02 cash 91.74
2015 0.02 cash 114.82
2016 0.02 cash 100.27
2017E 0.02 cash 193.05
2018E 0.02 cash 260.53
2019E 0.02 cash 305.57
2019E 34,813 (32,041) 2,771 (870) 3,178 (1,277) 1,901 (9) 50 492 2,434 (467) (33) 1,935 1.27 1.27 1,935 1.27 0.31
2019E 18,714 15,964 7,171 15,986 57,835 152 82 43,739 310 13,840 57,889
2019E 1,935 1,277 6,614 0 9,825 (2,628) 0 (2,628) 1 0 (393) 33 (359) 6,838 7,197 4.72
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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) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Anti‐corruption Progress Indicator
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
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 5 of 5
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
