Berli Jucker
Berli Jucker
Buy (17E TP Bt54.00)
Company Update
Close Bt44.00
Commerce
Earnings upgrade/Earnings downgrade/Overview unchanged
May 5, 2017
Improving margin & lower financial cost the catalysts Price Performance (%) Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
1.695
1.969
KT ZMICO vs. consensus Share data
4.4%
9.7%
Reuters / Bloomberg
BJC.BK/BJC TB
Paid‐up Shares (m)
3,991.61
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
176.00/5,074.00
Foreign limit / actual (%)
49.00/12.74
52 week High / Low (Bt)
56.25/31.66
Avg. daily T/O (shares 000) NVDR (%)
10,474.00 2.81
Estimated free float (%)
20.72
Beta
1.08
URL
www.bjc.co.th
CGR
Anti‐corruption
n.a.
Pornsawat Jirajarus Analyst, no 18228 [email protected] 66 (0) 2624‐6257
Normal operation to continue exhibiting strong performance BJC’s share price retreat by around 15% YTD should be blamed largely on the disappointing performance of its subsidiary in 4Q16, as BIGC’s gross margin and rebate income contracted significantly due to the impact from the changing sales strategy (discontinuing big basket discounts for unprofitable products) and weak consumption during the mourning period. However, we expect its performance to recover this year, with key drivers from growing sales of core businesses and declining financial cost. We retain our positive view on BJC’s positioning as ASEAN’s leading integrated retail platform and reckon that the stock’s prospective PE/EPS growth at 0.5x in 17E (vs. EPS CAGR of 44% in 17‐18E) looks appealing. Maintain our Buy call. Expect BJC to post 1Q17 core net profit growth at 55% YoY We expect BJC’s 1Q17 core net profit at Bt853mn, up 55% YoY (excluding extra items that may arise from revaluation of BIGC’s assets and a goodwill adjustment). Key drivers for the YoY profit growth will be 1) the full‐quarter recognition of profit from BIGC (vs. 11 days post‐acquisition in 1Q16) and 2) rising profit from the consumer products business (from new products and decreasing raw material costs). This is despite our expectation that the profit from the packaging business, BJC’s key profit driver during 2Q16‐4Q16, will exhibit descending growth due to the maintenance shutdown of a glass furnace and rising fuel costs. BIGC’s profit to decline.. but will accelerate in 2H17 For BIGC, we expect the 1Q17 core net profit at Bt1.33bn, down 11% YoY, largely dampened by a contraction of same‐store sales of around 20% YoY (from discontinuing big basket discounts for cigarettes and alcoholic beverages). Meanwhile, we expect the gross profit margin to improve 150 bps YoY to 14.7%. In 2H17, we expect BIGC’s profit to turn to grow YoY due to recovery in same‐store sales, the opening of more new stores (no new stores in 1Q17, but the firm plans to add 7‐8 new hypermarkets in 2H17) and improving profitability. Lower interest cost, expansion and higher margin to boost profit The 1Q17 core profit estimate that accounts for merely 12% of our full‐ year forecast, along with possibly weaker‐than‐expected profit from the packaging unit, may cause us to revisit our forecast after the analyst meeting in the upcoming weeks. Nevertheless, we believe that the key profit drivers for 17E will remain intact, i.e., 1) lower financial cost by Bt600‐800mn/quarter (since 4Q16 vs. Bt1.75‐2.0bn/quarter during 2Q16‐ 3Q16) from refinancing and the absence of advisory fees (for M&A in 2016), 2) additional capacity of around 10% for glass bottle production from 4Q17 onward, 3) more new BIGC stores in 2H17 and 4) the improving profitability of BIGC. These factors should limit the downside risk, in case of a downward revision to the forecast, to 10‐12% from our current estimate. Financials and Valuation FY Ended 31 Dec Revenues (Bt mn) Net profit (Bt mn) EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) EV/EBITDA (x) PBV (x) Dividend yield (%) ROE (%) Net Gearing (%)
2014 43,423 1,680 1.05 (30.85) 0.60 11.32 2014 39.1 16.0 3.6 1.3 9.4 83.9
2015 42,893 2,792 1.75 66.22 0.84 13.03 2015 20.0 11.3 2.7 2.2 14.4 66.7
2016 125,330 4,001 1.00 (42.80) 0.50 28.04 2016 50.1 21.3 1.8 1.2 4.9 132.8
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 155,248 7,092 1.77 77.26 0.89 29.45 2017E 24.8 15.3 1.5 1.9 6.2 128.2
2018E 168,298 8,635 2.16 21.68 1.08 30.84 2018E 20.4 13.7 1.4 2.5 7.2 118.9
Figure 1: BJC’s quarterly earnings results preview Profit and Loss (Bt mn) FY Ended 31 Dec 1Q16 2Q16 3Q16 4Q16 Revenue 14,717 40,487 33,481 36,645 Gross profit 3,085 6,651 6,613 6,212 2,000 6,108 5,502 5,166 EBITDA 273 2,003 1,750 1,176 Interest expense 520 3,733 3,296 3,618 Other income 198 365 626 57 Income tax (27) (299) 1,354 37 Forex gain (loss) 0 0 0 0 Other extraordinary Items Gn (Ls) from affiliates 59 58 36 27 Net profit (loss) 525 447 1,800 1,229 Normalized profit (loss) 549 706 696 1,229 Reported EPS (THB) 0.33 0.28 0.45 0.31 Gross margin (%) 21.0 16.4 19.8 17.0 EBITDA margin (%) 13.6 15.1 16.4 14.1 Net margin (%) 3.6 1.1 5.4 3.4 Current ratio (x) 0.2 0.1 0.7 0.7 Interest coverage (x) 7.3 3.0 3.1 4.4 Debt / equity (x) 11.9 14.2 1.9 1.7 BVPS (Bt) 10.6 12.1 25.6 28.0 4.0 3.4 2.2 1.6 ROE (%)
1Q17E
% YoY
35,948
144.3
6,033
95.6
5,049 1,135
% QoQ
2016
2017E
% YoY
% YTD
(1.9) 125,330 155,248
23.9
23.2
(2.9)
22,561
27,730
22.9
21.8
152.4
(2.3)
16,816
22,016
30.9
22.9
315.1
(3.5)
5,203
5,346
2.8
21.2
3,631
598.6
0.4
11,166
16,697
49.5
21.7
268
35.7
374.8
1,246
1,970
58.2
13.6
0
n.m.
(100.0)
1,064
0
(100.0)
n.m.
0
n.m.
n.m.
0
0
n.m.
n.m.
62
4.7
127.3
181
194
7.0
32.0
853
62.6
(30.5)
4,001
7,092
77.2
12.0
853
55.5
(30.5)
3,180
7,092
123.0
12.0
0.21
(35.1)
(30.5)
1.00
1.78
77.2
12.0
16.8
18.0
17.9
14.0
13.4
14.2
2.4
3.2
4.6
n.a.
0.7
0.9
4.4
3.2
4.1
n.a.
1.7
1.7
n.a.
28.0
29.2
n.a.
3.6
6.1
Source: BJC, KT Zmico
Figure 2: BJC’s core profit and gross margin trends
BJC’s quarterly core profit
BJC’s gross margin trend
Core prof it 1,500
Packaging
Consumer product
Healthcare & Technical
Modern retail
35% 30% 25%
1,000
20% 15%
500
10% 5%
1Q17
1Q16
1Q15
1Q14
0% 1Q13
1Q17
1Q16
1Q15
1Q14
1Q13
-
Remark: Profit from modern trade was net off financial and advisory costs.
Source: BJC, KT Zmico estimates
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 3
Note: KT ZMICO has two major shareholders, Krungthai Bank PLC (KTB) and Seamico Securities PLC (ZMICO). Therefore, prior to making investments in the securities of KTB and ZMICO, investors should consider the risk factors carefully. An executive of KT ZMICO Securities is also a board member of BCP, BTC, CI, CPI, KBS, MAJOR, MK, PACE, PSL, SVH, VNG, ZMICO, SAWAD, TFG. A management member of KT ZMICO Securities is also a board member of BTC and NFC. KT ZMICO is a financial advisor for U, LOXLEY, ZMICO, MAKRO, CPALL, SAFARI, M‐CHAI, POMPUI, TFD, TTL, NMG.
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 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
Buy (17E TP Bt54.00)
Company Update
Close Bt44.00
Commerce
Earnings upgrade/Earnings downgrade/Overview unchanged
May 5, 2017
Improving margin & lower financial cost the catalysts Price Performance (%) Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
1.695
1.969
KT ZMICO vs. consensus Share data
4.4%
9.7%
Reuters / Bloomberg
BJC.BK/BJC TB
Paid‐up Shares (m)
3,991.61
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
176.00/5,074.00
Foreign limit / actual (%)
49.00/12.74
52 week High / Low (Bt)
56.25/31.66
Avg. daily T/O (shares 000) NVDR (%)
10,474.00 2.81
Estimated free float (%)
20.72
Beta
1.08
URL
www.bjc.co.th
CGR
Anti‐corruption
n.a.
Pornsawat Jirajarus Analyst, no 18228 [email protected] 66 (0) 2624‐6257
Normal operation to continue exhibiting strong performance BJC’s share price retreat by around 15% YTD should be blamed largely on the disappointing performance of its subsidiary in 4Q16, as BIGC’s gross margin and rebate income contracted significantly due to the impact from the changing sales strategy (discontinuing big basket discounts for unprofitable products) and weak consumption during the mourning period. However, we expect its performance to recover this year, with key drivers from growing sales of core businesses and declining financial cost. We retain our positive view on BJC’s positioning as ASEAN’s leading integrated retail platform and reckon that the stock’s prospective PE/EPS growth at 0.5x in 17E (vs. EPS CAGR of 44% in 17‐18E) looks appealing. Maintain our Buy call. Expect BJC to post 1Q17 core net profit growth at 55% YoY We expect BJC’s 1Q17 core net profit at Bt853mn, up 55% YoY (excluding extra items that may arise from revaluation of BIGC’s assets and a goodwill adjustment). Key drivers for the YoY profit growth will be 1) the full‐quarter recognition of profit from BIGC (vs. 11 days post‐acquisition in 1Q16) and 2) rising profit from the consumer products business (from new products and decreasing raw material costs). This is despite our expectation that the profit from the packaging business, BJC’s key profit driver during 2Q16‐4Q16, will exhibit descending growth due to the maintenance shutdown of a glass furnace and rising fuel costs. BIGC’s profit to decline.. but will accelerate in 2H17 For BIGC, we expect the 1Q17 core net profit at Bt1.33bn, down 11% YoY, largely dampened by a contraction of same‐store sales of around 20% YoY (from discontinuing big basket discounts for cigarettes and alcoholic beverages). Meanwhile, we expect the gross profit margin to improve 150 bps YoY to 14.7%. In 2H17, we expect BIGC’s profit to turn to grow YoY due to recovery in same‐store sales, the opening of more new stores (no new stores in 1Q17, but the firm plans to add 7‐8 new hypermarkets in 2H17) and improving profitability. Lower interest cost, expansion and higher margin to boost profit The 1Q17 core profit estimate that accounts for merely 12% of our full‐ year forecast, along with possibly weaker‐than‐expected profit from the packaging unit, may cause us to revisit our forecast after the analyst meeting in the upcoming weeks. Nevertheless, we believe that the key profit drivers for 17E will remain intact, i.e., 1) lower financial cost by Bt600‐800mn/quarter (since 4Q16 vs. Bt1.75‐2.0bn/quarter during 2Q16‐ 3Q16) from refinancing and the absence of advisory fees (for M&A in 2016), 2) additional capacity of around 10% for glass bottle production from 4Q17 onward, 3) more new BIGC stores in 2H17 and 4) the improving profitability of BIGC. These factors should limit the downside risk, in case of a downward revision to the forecast, to 10‐12% from our current estimate. Financials and Valuation FY Ended 31 Dec Revenues (Bt mn) Net profit (Bt mn) EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) EV/EBITDA (x) PBV (x) Dividend yield (%) ROE (%) Net Gearing (%)
2014 43,423 1,680 1.05 (30.85) 0.60 11.32 2014 39.1 16.0 3.6 1.3 9.4 83.9
2015 42,893 2,792 1.75 66.22 0.84 13.03 2015 20.0 11.3 2.7 2.2 14.4 66.7
2016 125,330 4,001 1.00 (42.80) 0.50 28.04 2016 50.1 21.3 1.8 1.2 4.9 132.8
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 155,248 7,092 1.77 77.26 0.89 29.45 2017E 24.8 15.3 1.5 1.9 6.2 128.2
2018E 168,298 8,635 2.16 21.68 1.08 30.84 2018E 20.4 13.7 1.4 2.5 7.2 118.9
Figure 1: BJC’s quarterly earnings results preview Profit and Loss (Bt mn) FY Ended 31 Dec 1Q16 2Q16 3Q16 4Q16 Revenue 14,717 40,487 33,481 36,645 Gross profit 3,085 6,651 6,613 6,212 2,000 6,108 5,502 5,166 EBITDA 273 2,003 1,750 1,176 Interest expense 520 3,733 3,296 3,618 Other income 198 365 626 57 Income tax (27) (299) 1,354 37 Forex gain (loss) 0 0 0 0 Other extraordinary Items Gn (Ls) from affiliates 59 58 36 27 Net profit (loss) 525 447 1,800 1,229 Normalized profit (loss) 549 706 696 1,229 Reported EPS (THB) 0.33 0.28 0.45 0.31 Gross margin (%) 21.0 16.4 19.8 17.0 EBITDA margin (%) 13.6 15.1 16.4 14.1 Net margin (%) 3.6 1.1 5.4 3.4 Current ratio (x) 0.2 0.1 0.7 0.7 Interest coverage (x) 7.3 3.0 3.1 4.4 Debt / equity (x) 11.9 14.2 1.9 1.7 BVPS (Bt) 10.6 12.1 25.6 28.0 4.0 3.4 2.2 1.6 ROE (%)
1Q17E
% YoY
35,948
144.3
6,033
95.6
5,049 1,135
% QoQ
2016
2017E
% YoY
% YTD
(1.9) 125,330 155,248
23.9
23.2
(2.9)
22,561
27,730
22.9
21.8
152.4
(2.3)
16,816
22,016
30.9
22.9
315.1
(3.5)
5,203
5,346
2.8
21.2
3,631
598.6
0.4
11,166
16,697
49.5
21.7
268
35.7
374.8
1,246
1,970
58.2
13.6
0
n.m.
(100.0)
1,064
0
(100.0)
n.m.
0
n.m.
n.m.
0
0
n.m.
n.m.
62
4.7
127.3
181
194
7.0
32.0
853
62.6
(30.5)
4,001
7,092
77.2
12.0
853
55.5
(30.5)
3,180
7,092
123.0
12.0
0.21
(35.1)
(30.5)
1.00
1.78
77.2
12.0
16.8
18.0
17.9
14.0
13.4
14.2
2.4
3.2
4.6
n.a.
0.7
0.9
4.4
3.2
4.1
n.a.
1.7
1.7
n.a.
28.0
29.2
n.a.
3.6
6.1
Source: BJC, KT Zmico
Figure 2: BJC’s core profit and gross margin trends
BJC’s quarterly core profit
BJC’s gross margin trend
Core prof it 1,500
Packaging
Consumer product
Healthcare & Technical
Modern retail
35% 30% 25%
1,000
20% 15%
500
10% 5%
1Q17
1Q16
1Q15
1Q14
0% 1Q13
1Q17
1Q16
1Q15
1Q14
1Q13
-
Remark: Profit from modern trade was net off financial and advisory costs.
Source: BJC, KT Zmico estimates
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 3
Note: KT ZMICO has two major shareholders, Krungthai Bank PLC (KTB) and Seamico Securities PLC (ZMICO). Therefore, prior to making investments in the securities of KTB and ZMICO, investors should consider the risk factors carefully. An executive of KT ZMICO Securities is also a board member of BCP, BTC, CI, CPI, KBS, MAJOR, MK, PACE, PSL, SVH, VNG, ZMICO, SAWAD, TFG. A management member of KT ZMICO Securities is also a board member of BTC and NFC. KT ZMICO is a financial advisor for U, LOXLEY, ZMICO, MAKRO, CPALL, SAFARI, M‐CHAI, POMPUI, TFD, TTL, NMG.
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 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
