Earnings to bottom out in 3Q16E
Thaicom Buy (16E TP Bt36.70)
Company Update
Close Bt22.10
ICT
Earnings upgrade/Earnings downgrade/Overview unchanged
July 8, 2016
Earnings to bottom out in 3Q16E Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
2.245
2.291
KT ZMICO vs. consensus Share data
‐5.6%
‐11.8%
Reuters / Bloomberg
THCOM.BK/THCOM TB
Paid‐up Shares (m)
1,095.99
Par (Bt)
5.00
Market cap (Bt bn / US$ m)
24.00/688.00
Foreign limit / actual (%)
40.00/15.68
52 week High / Low (Bt)
36.50/21.20
Avg. daily T/O (shares 000) NVDR (%)
4,273.00 5.31
Estimated free float (%)
51.25
Beta
0.83
URL CGR
www.thaicom.net
Anti‐corruption
Level 4 (Certified)
Waraporn Wiboonkanarak Analyst, no. 2482 [email protected] 66 (0) 2624‐6273
Near‐term earnings remain under pressure THCOM faces challenges from many headwinds including lost orders domestically, slow progress on capacity sales overseas as well as a potential hike of regulatory risk. We view that THCOM, which is currently traded at only 5x 2016E EV/EBITDA, has factored in these negatives; meanwhile, the bottoming out of earnings in 3Q16E may cause its share price to underperform peers until progress on capacity sales is evident. 2Q16E NP to have retreated QoQ on lost orders We expect THCOM to post a net profit of Bt646mn in 2Q16E, up 13%YoY. Stripping out Fx gain, its core profit should gain 14%YoY and 0.2%QoQ to Bt587mn. Revenue is likely to have increased 3%YoY driven by the benefit of baht depreciation and the growth of CSL’s ICT business, but dropped 5%QoQ on orders lost from one key broadcasting client. Its EBITDA margin is expected to be flat at 47.3% thanks to well‐controlled SG&A expenses, offsetting the declining gross margin. Shared profit from LTC should also improve 3%YoY and 95%QoQ to Bt80mn, helping to maintain its bottom line. Earnings to bottom out in 3Q16E The announcement of the ceasing of the Ku‐band broadcasting platform of CTH, the leading pay‐TV operator, from August 1 onward has created downside risk to the earnings of THCOM. If CTH annuls its two KU‐band transponder contract, we believe the additional capacity from Myanmar’s Forever Group and the recently‐launched Thaicom8 will be sufficient to offset the overall loss of orders, causing its revenue in 3Q16 to fall by 0.9%QoQ. Nevertheless, the upsurge of the depreciation of Thaicom8 will cause its earnings to dive by 50%YoY and 36%QoQ. Lower guidance possible There is a possibility for THCOM to lower its full‐year revenue guidance of 4‐5% this year after the 1H16 earnings announcement to reflect the impact of losing key clients, which is currently factored into our model. Regarding the ICT Ministry’s idea to transfer all commercial satellites back under the concession scheme, THCOM said it has not yet received any official letter or had the chance to discuss this issue with the authorities. We see little chance for the government to make such a retroactive claim, but do not discount the possibility of it imposing additional fees on THCOM for orbital slot filing co‐ordination. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) 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 (%)
2014 12,065 1,601 1.46 1.71 24.2% 0.65 15.77 2014 23.79 8.67 2.20 1.9% 11.5% 38.2%
2015 12,454 2,122 1.94 2.11 23.5% 0.65 16.53 2015 14.98 6.66 1.75 2.2% 13.3% 37.0%
2016E 12,455 2,322 2.12 2.12 0.6% 0.85 18.00 2016E 10.39 5.39 1.22 3.9% 12.6% 39.5%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 13,195 2,219 2.02 2.02 ‐4.4% 0.81 19.19 2017E 10.86 4.49 1.15 3.7% 11.1% 19.9%
2018E 13,448 2,289 2.09 2.09 3.1% 0.84 20.48 2018E 10.54 3.69 1.07 3.8% 10.7% ‐2.6%
Figure 1: Earnings preview Profit and Loss Statement (Btmn) Fiscal Year‐Ended Dec. Revenue Gross Profit EBITDA Share of profit from affiliate Interest Expense Other income Net profit (loss) Core profit (loss) Reported EPS (THB) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt to equity (x) BVPS (Bt) ROE (%)
2Q15 2,939 1,181 1,393 77 82 28 572 515 0.52 40.2% 47.4% 19.5% 1.90 8.26 0.86 15.40 3.1%
1Q16 3,210 1,416 1,517 41 70 47 700 586 0.64 44.1% 47.3% 21.8% 1.69 12.02 0.90 16.12 3.2%
2Q16E 3,037 1,262 1,437 80 69 44 646 587 0.59 41.6% 47.3% 21.3% 0.70 11.55 0.96 16.71 2.9%
%QoQ ‐5.4% ‐10.8% ‐5.3% om ‐1.1% ‐5.5% ‐7.7% 0.2% ‐7.7% ‐2.5% 0.0% ‐0.5%
%YoY 3.3% 6.8% 3.2% 3.5% ‐15.7% 54.6% 13.0% 14.1% 13.0% 1.4% ‐0.1% 1.8%
1H16E 6,247 2,678 2,954 121 139 91 1,347 1,174 1.23 42.9% 47.3% 21.6% 0.70 11.79 0.96 8.5% 16.71 2.9%
3.7%
%YoY 3.9% 11.8% 8.0% ‐2.1% ‐15.4% 27.5% 21.1% 19.7% 21.1%
2016E 12,455 5,111 5,914 223 289 149 2,322 2,243 2.12 41.0% 47.5% 18.6% 2.03 10.54 0.81 8.5% 18.00 12.6%
YTD %YoY (% of 2016E) 0.0% 50.2% 0.2% 52.4% 2.4% 49.9% 14.9% 54.4% ‐5.6% 48.0% ‐2.8% 60.7% 9.4% 58.0% ‐5.8% 52.3% 9.4% 58.0% 0.1% 1.1% 1.6%
8.9%
Source: THCOM and KT Zmico Research Figure 2: Sum‐of‐the‐parts valuation Company Holding stake (%) Satellite business CSL LTC
42.07% through DTV services 24.99% (holding through Shenington)
Valuation Method DCF (WACC 8.3%) DDM (ke 12%) PER
SOTP‐based target Source: THCOM and KT Zmico Research
Value to THCOM (Bt) 33.29 1.36 2.07 36.72
Figure 3: PER and EV/EBITDA band +2S.D.
PER (x)
12.00
EV/EBITDA (x)
10.00
+1S.D.
8.00
Average
+1S.D.
‐0.5S.D.
6.00
Average
4.00
‐1S.D.
‐1S.D. 2.00
Source: THCOM and KT Zmico Research
‐ Jan‐06 May‐06 Sep‐06 Jan‐07 May‐07 Sep‐07 Jan‐08 May‐08 Sep‐08 Jan‐09 May‐09 Sep‐09 Jan‐10 May‐10 Sep‐10 Jan‐11 May‐11 Sep‐11 Jan‐12 May‐12 Sep‐12 Jan‐13 May‐13 Sep‐13 Jan‐14 May‐14 Sep‐14 Jan‐15 May‐15 Sep‐15 Jan‐16 May‐16
Jan‐10 May‐10 Sep‐10 Jan‐11 May‐11 Sep‐11 Jan‐12 May‐12 Sep‐12 Jan‐13 May‐13 Sep‐13 Jan‐14 May‐14 Sep‐14 Jan‐15 May‐15 Sep‐15 Jan‐16 May‐16
25.00 20.00 15.00 10.00 5.00 ‐
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, PACE, PLE, TPOLY. KT ZMICO is a co‐underwriter of ALT.
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 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
th
th
th
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KT•ZMICO Securities Company Limited
st
8 , 15 -17 , 19 , 21 Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok 10500 Telephone: (66-2) 695-5000
Phaholyothin Branch
rd
Fax. (66-2) 631-1709
Ploenchit Branch
th
nd
2
Sindhorn Branch
3 Floor, Shinnawatra Tower II,
8 Floor, Ton Son Tower,
1291/1 Phaholyothin Road,
900 Ploenchit Road, Lumpini,
Floor, Sindhorn Tower 1, 130-132 Wireless Road, Lumpini,
Phayathai, Bangkok 10400
Pathumwan, Bangkok 10330
Pathumwan, Bangkok 10330
Telephone: (66-2) 686-1500
Telephone: (66-2) 626-6000
Telephone: (66-2) 627-3550
Fax. (66-2) 686-1666
Fax. (66-2) 626-6111
Fax. (66-2) 627-3582, 627-3600
Nakhon Pathom Branch 1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
Chachoengsao Branch
Viphavadee Branch
Phitsanulok Branch
G Floor, Lao Peng Nguan 1 Bldg.,
Krung Thai Bank, Singhawat Branch
333 Soi Cheypuand, Viphavadee-Rangsit Road,
114 Singhawat Road,
Ladyao, Jatujak, Bangkok 10900
Muang, Phitsanulok 65000
Telephone: (66-2) 618-8500
Telephone: 083-490-2873
Fax. (66-2) 618-8569
th
Chonburi Branch
Pattaya Branch
108/34-36 Mahajakkrapad Road,
4 Floor, Forum Plaza Bldg.,
382/6-8 Moo 9, T. NongPrue,
T.Namuang, A.Muang,
870/52 Sukhumvit Road, T. Bangplasoy,
A. Banglamung, Cholburi 20260
Chachoengsao 24000
A. Muang, Cholburi 20000
Telephone: (038) 362-420-9
Telephone: (038) 813-088
Telephone: (038) 287-635
Fax. (038) 362-430
Fax. (038) 813-099
Fax. (038) 287-637
Khon Kaen Branch
5th Floor, Charoen Thani Princess Hotel,
Hat Yai Branch
Sriworajak Building Branch
200/301 Juldis Hatyai Plaza Floor 3,
1st – 2nd Floor, Sriworajak Building, 222
260 Srichan Road, T. Naimuang,
Niphat-Uthit 3 Rd,
Luang Road, Pomprab,
A. Muang, Khon Kaen 40000
Hatyai Songkhla 90110
Bankgok 10100
Telephone: (043) 389-171-193
Telephone: (074) 355-530-3
Telephone: (02) 689-3100
Fax. (043) 389-209
Fax: (074) 355-534
Fax. (02) 689-3199
Central World Branch
Chiang Mai Branch
Phuket Branch
999/9 The Offices at Central World,
422/49 Changklan Road, Changklan
22/61-63, Luang Por Wat Chalong Road,
16th Fl., Rama 1 Rd, Pathumwan,
Subdistrict, Amphoe Meuang,
Talat Yai, Mueang Phuket,
Bangkok 10330
Chiang Mai 50100
Phuket 83000
Telephone: (66-2) 673-5000,
Telephone: (053) 270-072
Tel. (076) 222-811,(076) 222-683
(66-2) 264-5888 Fax. (66-2) 264-5899
Fax: (053) 272-618
Fax. (076) 222-861
Pak Chong Branch
Cyber Branch @ North Nana
173 175, Mittapap Road,
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd.,Klong Toey Nua Subdistrict , Wattana District, Bangkok 10110 Telephone: 083-490-2871
Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Tel. (044) 279-511 Fax. (044) 279-574
Nakhon Ratchasima Branch
Bangkhae Branch
6th Floor The Mall Group Building Bangkhae 275 Moo 1 Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Tel. (66-2) 454-9979 Fax. (66-2) 454-9970
624/9 Changphuek Road, . Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171 Information herein was obtained from sources believed to be reliable, but its completeness and accuracy are not guaranteed. All opinions expressed constitute our views on that date and are not intended as an offer or solicitation to sell or buy any securities. Investors should exercise care when making a decision to invest in securities. No one may modify or distribute any part of this report unless written permission is first received from Seamico Securities Plc. If any modifications are made, quotes or references taken from the report and the report date must be clearly mentioned and must not cause misunderstanding or damage to the company.
Company Update
Close Bt22.10
ICT
Earnings upgrade/Earnings downgrade/Overview unchanged
July 8, 2016
Earnings to bottom out in 3Q16E Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
2.245
2.291
KT ZMICO vs. consensus Share data
‐5.6%
‐11.8%
Reuters / Bloomberg
THCOM.BK/THCOM TB
Paid‐up Shares (m)
1,095.99
Par (Bt)
5.00
Market cap (Bt bn / US$ m)
24.00/688.00
Foreign limit / actual (%)
40.00/15.68
52 week High / Low (Bt)
36.50/21.20
Avg. daily T/O (shares 000) NVDR (%)
4,273.00 5.31
Estimated free float (%)
51.25
Beta
0.83
URL CGR
www.thaicom.net
Anti‐corruption
Level 4 (Certified)
Waraporn Wiboonkanarak Analyst, no. 2482 [email protected] 66 (0) 2624‐6273
Near‐term earnings remain under pressure THCOM faces challenges from many headwinds including lost orders domestically, slow progress on capacity sales overseas as well as a potential hike of regulatory risk. We view that THCOM, which is currently traded at only 5x 2016E EV/EBITDA, has factored in these negatives; meanwhile, the bottoming out of earnings in 3Q16E may cause its share price to underperform peers until progress on capacity sales is evident. 2Q16E NP to have retreated QoQ on lost orders We expect THCOM to post a net profit of Bt646mn in 2Q16E, up 13%YoY. Stripping out Fx gain, its core profit should gain 14%YoY and 0.2%QoQ to Bt587mn. Revenue is likely to have increased 3%YoY driven by the benefit of baht depreciation and the growth of CSL’s ICT business, but dropped 5%QoQ on orders lost from one key broadcasting client. Its EBITDA margin is expected to be flat at 47.3% thanks to well‐controlled SG&A expenses, offsetting the declining gross margin. Shared profit from LTC should also improve 3%YoY and 95%QoQ to Bt80mn, helping to maintain its bottom line. Earnings to bottom out in 3Q16E The announcement of the ceasing of the Ku‐band broadcasting platform of CTH, the leading pay‐TV operator, from August 1 onward has created downside risk to the earnings of THCOM. If CTH annuls its two KU‐band transponder contract, we believe the additional capacity from Myanmar’s Forever Group and the recently‐launched Thaicom8 will be sufficient to offset the overall loss of orders, causing its revenue in 3Q16 to fall by 0.9%QoQ. Nevertheless, the upsurge of the depreciation of Thaicom8 will cause its earnings to dive by 50%YoY and 36%QoQ. Lower guidance possible There is a possibility for THCOM to lower its full‐year revenue guidance of 4‐5% this year after the 1H16 earnings announcement to reflect the impact of losing key clients, which is currently factored into our model. Regarding the ICT Ministry’s idea to transfer all commercial satellites back under the concession scheme, THCOM said it has not yet received any official letter or had the chance to discuss this issue with the authorities. We see little chance for the government to make such a retroactive claim, but do not discount the possibility of it imposing additional fees on THCOM for orbital slot filing co‐ordination. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) 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 (%)
2014 12,065 1,601 1.46 1.71 24.2% 0.65 15.77 2014 23.79 8.67 2.20 1.9% 11.5% 38.2%
2015 12,454 2,122 1.94 2.11 23.5% 0.65 16.53 2015 14.98 6.66 1.75 2.2% 13.3% 37.0%
2016E 12,455 2,322 2.12 2.12 0.6% 0.85 18.00 2016E 10.39 5.39 1.22 3.9% 12.6% 39.5%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 13,195 2,219 2.02 2.02 ‐4.4% 0.81 19.19 2017E 10.86 4.49 1.15 3.7% 11.1% 19.9%
2018E 13,448 2,289 2.09 2.09 3.1% 0.84 20.48 2018E 10.54 3.69 1.07 3.8% 10.7% ‐2.6%
Figure 1: Earnings preview Profit and Loss Statement (Btmn) Fiscal Year‐Ended Dec. Revenue Gross Profit EBITDA Share of profit from affiliate Interest Expense Other income Net profit (loss) Core profit (loss) Reported EPS (THB) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt to equity (x) BVPS (Bt) ROE (%)
2Q15 2,939 1,181 1,393 77 82 28 572 515 0.52 40.2% 47.4% 19.5% 1.90 8.26 0.86 15.40 3.1%
1Q16 3,210 1,416 1,517 41 70 47 700 586 0.64 44.1% 47.3% 21.8% 1.69 12.02 0.90 16.12 3.2%
2Q16E 3,037 1,262 1,437 80 69 44 646 587 0.59 41.6% 47.3% 21.3% 0.70 11.55 0.96 16.71 2.9%
%QoQ ‐5.4% ‐10.8% ‐5.3% om ‐1.1% ‐5.5% ‐7.7% 0.2% ‐7.7% ‐2.5% 0.0% ‐0.5%
%YoY 3.3% 6.8% 3.2% 3.5% ‐15.7% 54.6% 13.0% 14.1% 13.0% 1.4% ‐0.1% 1.8%
1H16E 6,247 2,678 2,954 121 139 91 1,347 1,174 1.23 42.9% 47.3% 21.6% 0.70 11.79 0.96 8.5% 16.71 2.9%
3.7%
%YoY 3.9% 11.8% 8.0% ‐2.1% ‐15.4% 27.5% 21.1% 19.7% 21.1%
2016E 12,455 5,111 5,914 223 289 149 2,322 2,243 2.12 41.0% 47.5% 18.6% 2.03 10.54 0.81 8.5% 18.00 12.6%
YTD %YoY (% of 2016E) 0.0% 50.2% 0.2% 52.4% 2.4% 49.9% 14.9% 54.4% ‐5.6% 48.0% ‐2.8% 60.7% 9.4% 58.0% ‐5.8% 52.3% 9.4% 58.0% 0.1% 1.1% 1.6%
8.9%
Source: THCOM and KT Zmico Research Figure 2: Sum‐of‐the‐parts valuation Company Holding stake (%) Satellite business CSL LTC
42.07% through DTV services 24.99% (holding through Shenington)
Valuation Method DCF (WACC 8.3%) DDM (ke 12%) PER
SOTP‐based target Source: THCOM and KT Zmico Research
Value to THCOM (Bt) 33.29 1.36 2.07 36.72
Figure 3: PER and EV/EBITDA band +2S.D.
PER (x)
12.00
EV/EBITDA (x)
10.00
+1S.D.
8.00
Average
+1S.D.
‐0.5S.D.
6.00
Average
4.00
‐1S.D.
‐1S.D. 2.00
Source: THCOM and KT Zmico Research
‐ Jan‐06 May‐06 Sep‐06 Jan‐07 May‐07 Sep‐07 Jan‐08 May‐08 Sep‐08 Jan‐09 May‐09 Sep‐09 Jan‐10 May‐10 Sep‐10 Jan‐11 May‐11 Sep‐11 Jan‐12 May‐12 Sep‐12 Jan‐13 May‐13 Sep‐13 Jan‐14 May‐14 Sep‐14 Jan‐15 May‐15 Sep‐15 Jan‐16 May‐16
Jan‐10 May‐10 Sep‐10 Jan‐11 May‐11 Sep‐11 Jan‐12 May‐12 Sep‐12 Jan‐13 May‐13 Sep‐13 Jan‐14 May‐14 Sep‐14 Jan‐15 May‐15 Sep‐15 Jan‐16 May‐16
25.00 20.00 15.00 10.00 5.00 ‐
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, PACE, PLE, TPOLY. KT ZMICO is a co‐underwriter of ALT.
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 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
th
th
th
th
KT•ZMICO Securities Company Limited
st
8 , 15 -17 , 19 , 21 Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok 10500 Telephone: (66-2) 695-5000
Phaholyothin Branch
rd
Fax. (66-2) 631-1709
Ploenchit Branch
th
nd
2
Sindhorn Branch
3 Floor, Shinnawatra Tower II,
8 Floor, Ton Son Tower,
1291/1 Phaholyothin Road,
900 Ploenchit Road, Lumpini,
Floor, Sindhorn Tower 1, 130-132 Wireless Road, Lumpini,
Phayathai, Bangkok 10400
Pathumwan, Bangkok 10330
Pathumwan, Bangkok 10330
Telephone: (66-2) 686-1500
Telephone: (66-2) 626-6000
Telephone: (66-2) 627-3550
Fax. (66-2) 686-1666
Fax. (66-2) 626-6111
Fax. (66-2) 627-3582, 627-3600
Nakhon Pathom Branch 1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
Chachoengsao Branch
Viphavadee Branch
Phitsanulok Branch
G Floor, Lao Peng Nguan 1 Bldg.,
Krung Thai Bank, Singhawat Branch
333 Soi Cheypuand, Viphavadee-Rangsit Road,
114 Singhawat Road,
Ladyao, Jatujak, Bangkok 10900
Muang, Phitsanulok 65000
Telephone: (66-2) 618-8500
Telephone: 083-490-2873
Fax. (66-2) 618-8569
th
Chonburi Branch
Pattaya Branch
108/34-36 Mahajakkrapad Road,
4 Floor, Forum Plaza Bldg.,
382/6-8 Moo 9, T. NongPrue,
T.Namuang, A.Muang,
870/52 Sukhumvit Road, T. Bangplasoy,
A. Banglamung, Cholburi 20260
Chachoengsao 24000
A. Muang, Cholburi 20000
Telephone: (038) 362-420-9
Telephone: (038) 813-088
Telephone: (038) 287-635
Fax. (038) 362-430
Fax. (038) 813-099
Fax. (038) 287-637
Khon Kaen Branch
5th Floor, Charoen Thani Princess Hotel,
Hat Yai Branch
Sriworajak Building Branch
200/301 Juldis Hatyai Plaza Floor 3,
1st – 2nd Floor, Sriworajak Building, 222
260 Srichan Road, T. Naimuang,
Niphat-Uthit 3 Rd,
Luang Road, Pomprab,
A. Muang, Khon Kaen 40000
Hatyai Songkhla 90110
Bankgok 10100
Telephone: (043) 389-171-193
Telephone: (074) 355-530-3
Telephone: (02) 689-3100
Fax. (043) 389-209
Fax: (074) 355-534
Fax. (02) 689-3199
Central World Branch
Chiang Mai Branch
Phuket Branch
999/9 The Offices at Central World,
422/49 Changklan Road, Changklan
22/61-63, Luang Por Wat Chalong Road,
16th Fl., Rama 1 Rd, Pathumwan,
Subdistrict, Amphoe Meuang,
Talat Yai, Mueang Phuket,
Bangkok 10330
Chiang Mai 50100
Phuket 83000
Telephone: (66-2) 673-5000,
Telephone: (053) 270-072
Tel. (076) 222-811,(076) 222-683
(66-2) 264-5888 Fax. (66-2) 264-5899
Fax: (053) 272-618
Fax. (076) 222-861
Pak Chong Branch
Cyber Branch @ North Nana
173 175, Mittapap Road,
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd.,Klong Toey Nua Subdistrict , Wattana District, Bangkok 10110 Telephone: 083-490-2871
Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Tel. (044) 279-511 Fax. (044) 279-574
Nakhon Ratchasima Branch
Bangkhae Branch
6th Floor The Mall Group Building Bangkhae 275 Moo 1 Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Tel. (66-2) 454-9979 Fax. (66-2) 454-9970
624/9 Changphuek Road, . Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171 Information herein was obtained from sources believed to be reliable, but its completeness and accuracy are not guaranteed. All opinions expressed constitute our views on that date and are not intended as an offer or solicitation to sell or buy any securities. Investors should exercise care when making a decision to invest in securities. No one may modify or distribute any part of this report unless written permission is first received from Seamico Securities Plc. If any modifications are made, quotes or references taken from the report and the report date must be clearly mentioned and must not cause misunderstanding or damage to the company.
