NOK
Company update October 9, 2014
Nok Airlines
Buy (TP Bt18.40)
Industry turbulence likely to end soon
Price Bt14.70
We lower NOK’s earnings estimates in 2014-15E due mainly to lower-than-expected airfares. However, we believe NOK’s earnings will turn around next year owing to the expected improvement of the LCC industry and the setting up of the new medium haul LCC. We upgrade NOK to BUY (from Trading BUY) with a revised target price of Bt18.40 (based on 15x PER, higher than PER of 13x for peers) vs. Bt19.30 previously. Oversupply situation expected to improve in 2015E Thailand’s LCC industry in 2014E experienced an oversupply situation along with airfare pressure owing to increases in available seat supply from both existing operators and newcomers coupled with slowing demand resulting from the political situation. As the political conflict has been resolved currently, we believe the price pressure for the sector will be relieved in 2015E.
Stock Performance (%) 1M
3M
12M
Absolute
-9.26
-17.42
-42.36
Relative to SET
-6.99
-18.18
-44.99
Share data Reuters / Bloomberg Sector
NOK.BK/NOK TB Transportation & Logistics
Medium haul LCC outlook promising We have a positive view on NOK joining with Scoot, an LCC that is 100% owned by Singapore Airlines, to set up a new medium haul LCC. The first flight will be arranged in Jan-15 to tap the East Asian regional market, especially Japan and South Korea, which is a major source of tourist arrivals to Thailand. Meanwhile, Japan and South Korea are also top destinations for Thai tourists. NOK will gain additional benefit from increased foreign currency income and more connecting customers from Scoot.
Paid-up Shares (m)
Beta
1.34
Expect earnings to stay in the red in 3Q14E According to NOK, the cabin factor in Jun-Aug 14 is likely to improve significantly (from 70% in May to over 85% in Aug), but airfares will still be pressured by competition. Meanwhile, September is the weakest month of the quarter. As a result, the net loss in 3Q14E will likely be higher than the previous quarter. However, earnings are expected to improve in 4Q14E and 2015E.
URL
www.nokair.com
2013 11,180 1,066 1,066 1.71 68.80 1.03 7.27 2013 8.56 3.69 2.01 7.05 39.25 cash
2014E 12,023 (271) (271) (0.43) n.m. 0.00 7.05 2014E n.m. n.m. 2.07 0.00 (6.05) cash
2015E 18,133 767 767 1.23 n.m. 0.61 7.67 2015E 11.90 7.97 1.90 4.20 16.67 cash
1.00
Market cap (Bt bn / US$ m)
9.00/282.00
Foreign limit / actual (%)
49.00/13.52
52 week High / Low (Bt)
25.50/14.50
Avg. daily T/O (shares 000)
2,572.00
NVDR (%)
1.11
Estimated free float (%)
31.75
Major Shareholders (17/03/2014) Thai Airways Plc.
39.20 %
State Street Bank Europe Limited
6.76 %
Aviation Investment International
6.65 %
Limited
Revise down net profit estimates in 2014-15E We revise down our earnings estimate in 2014E for NOK to a net loss of Bt271mn vs. net profit of Bt335mn previously. Meanwhile, we lower the net profit estimate in 2015E by 17% to Bt767mn. Our earnings revisions for both years are based on an upward revision of ASK alongside a downward revision of the average airfare. Meanwhile, the beginning of NokScoot’s operation will be delayed to 1Q15E vs. 4Q14E as previously expected. Financial and Valuation FY Ended 31 Dec 2012 Revenues (Btm) 8,218 Net profit (Btm) 258 Norm. profit (Btm) 505 Norm. EPS (Bt) 1.01 Norm. EPS growth (%) 152.84 Dividend (Bt) 0.50 BV (Bt) 1.78 FY Ended 31 Dec 2012 PER (x) 14.45 EV/EBITDA (x) 14.11 PBV (x) 8.22 Dividend yield (%) 3.42 ROE (%) 59.95 Net gearing (%) cash
625.00
Par (Bt)
2016E 26,321 1,240 1,240 1.98 61.73 0.99 8.66 2016E 7.36 2.67 1.69 6.80 24.32 cash
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
FY14 Consensus EPS (Bt)
FY15
0.714
1.427
n.a.
-13.8%
KT ZMICO vs. consensus Company Profile
The Company operates as a budget airline (Low-cost carrier) under the brand "Nok Air" providing domestic air transport services. Nok Air serves point-to-point routing using narrow body jets and turbo prop aircrafts (flying radius of 4 hours). The Company is considered the leading domestic low cost carrier with the most domestic coverage. Nok Air allows free seat assignments, provides free snack sets on board, and allows a minimum of 15 kilograms of baggage weight without additional cost. The Company was spun off from THAI. CGR 2013 -
Raenoo Bhandasukdi Analyst, no 17989 [email protected] 66 (0) 2695-5836 page 1 of 7
Figure 1: Key changes to our assumptions and revision to earnings forecasts: NOK 2014E Ended Dec
New
2015E
Previous
% +/-
New
Previous
% +/-
ASK growth (% YoY)
31.4
24.3
25.0
18.3
RPK growth (% YoY)
27.3
20.9
28.0
21.0
Cabin factor (%)
81.4
81.7
83.3
83.5
7.5
7.0
7.1
9.0
8.5
5.9
1,484
1,609
(7.8)
1,543
1,641
(6.0)
(17.0)
(10.0)
4.0
2.0
119
119
0.0
125
125
Cabin factor (%)
-
72.0
Passengers carried (mn)
-
0.1
0.6
Average fare (Bt/Passenger)
-
4,100
4,350
Passengers carried (mn) Average fare (Bt/passenger) % +/Average ancillary (Bt/passenger)
0.0
NOK-SCOOT assumption
Revenue (Btmn)
75.7
12,023
12,605
(4.6)
18,133
18,098
0.2
Normalized profit (Btmn)
(271)
335
n.m.
767
930
(17.5)
Net profit (Btmn)
(271)
335
n.m.
767
930
(17.5)
Source: KT ZMICO Research
Figure 2: Peer comparison COUNTRY
Mkt Cap
PER (x)
US$mn 14E
15E
PBV (x) 16E
14E
15E
Yield (%) 16E
14E
15E
ROE (%) 16E
14E
15E
EV/EBITDA (x) 16E
14E
15E
16E
AIR ASIA BHD
Malaysia
2,120
12.1
9.6
7.8
1.3
1.1
1.0
1.7
2.1
2.4
10.1
12.0
13.4
10.3
8.9
AIRARABI
UAE
1,779
14.3
12.5
11.2
1.2
1.1
1.1
5.2
5.7
6.5
8.7
9.3
10.1
11.1
9.1
7.9 7.7
CEBU AIR INC
Philippines
945
14.1
12.4
10.2
1.8
1.6
1.4
2.1
2.3
2.3
15.8
15.5
15.9
8.2
7.7
6.9
EASYJET PLC
Britain
8,909
12.2
11.1
9.8
2.5
2.2
2.0
3.0
3.3
3.7
21.3
21.4
20.9
7.2
6.6
5.9
RYANAIR HOLDINGS PLC
Ireland
12,573
20.6
14.8
12.9
3.2
2.8
2.4
0.0
3.4
0.7
15.9
20.0
20.0
10.3
7.7
6.9
SOUTHWEST AIRLINES
USA
22,637
18.1
15.2
13.6
2.8
2.4
2.1
0.6
0.7
0.8
15.8
15.8
17.6
7.0
6.2
5.8
TIGER AIRWAYS HLDG
Singapore
305
n.a.
n.a.
n.a.
6.6
2.2
2.5
0.0
0.0
0.0
n.m.
n.m.
n.m.
n.a.
n.a.
23.0
VIRGIN AUSTRALIA HLDG
Australia
1,146
n.a.
n.a.
n.a.
1.4
1.2
1.2
0.0
0.0
0.0
(33.1)
(9.0)
0.1
n.m.
10.7
7.6
WESTJET AIRLINES LTD
Canada
3,447
12.8
10.3
9.2
2.2
1.9
1.6
1.6
1.9
2.2
17.6
18.9
19.3
5.5
4.7
4.2
Thailand
667
99.0
20.6
16.8
1.1
1.1
1.0
0.0
2.0
2.4
1.1
5.2
6.2
20.3
8.0
6.7
25.4
13.3
11.4
2.4
1.8
1.6
1.4
2.1
2.1
8.1
12.1
13.7
25.7
7.7
8.2
Thailand
285
n.m.
11.9
7.4
2.1
1.9
1.7
0.0
4.2
6.8
(6.1)
16.7
24.3
n.m.
8.0
2.7
AAV* Average (simple) NOK*
Source: Bloomberg Note: *KT ZMICO Research estimates
Industry price cuts expected to be relieved after end of the protest Flight expansion and fierce competition, especially from new comer Thai Lion Air, coupled with the slowdown of travel demand from international passengers, prompted LCC operators to cut their airfares to compete with each other. Although NOK has focused mainly on domestic routes, an oversupply situation in international routes still had a negative impact on the company, especially on primary routes that account for 75% of NOK’s total revenue (2013). However, based on historical records, tourist arrivals to Thailand have rebounded strongly after the end of crises, both political unrest and natural disasters. This is due to the strength of Thailand’s tourism sector and the diversification of tourist destinations. As a result, we believe the price situation will be better after the resolution of the political crisis, especially in 4Q14E upon entering the high season of the tourism industry in Thailand. Although the tourism situation remains uncertain as the NCPO has not yet lifted martial law, political calm and the government’s support of the tourism industry is still a positive catalyst to the sector.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
page 2 of 7
According to monthly statistics from the AOT, LCC flight expansion slowed down to +18% and +19% in Jul-Aug 14 after an increase of 34% in Apr-May 14. On the other hand, travel demand looks to be improving as LCC passenger volume increased at a higher rate to +23% and 24% in Jul-Aug 14, from +17% in Jun-14 after the coup. As a result, we believe the ticket price pressure for LCC operators will be relieved in 4Q14E. We expect average fares for NOK to improve in 2015E on the favorable demand-supply situation for the LCC industry, with the industry fleet likely to grow in line with passenger volume. As a result, LCC operators that focus on international routes will shift their capacities to international flights and increase their average ticket prices while competition for domestic routes is likely to decline. It should be noted that our fleet growth assumptions do not include medium haul LCC (two aircraft from NokScoot and five aircraft from Thai Air Asia X) or other newcomers, but do include Thai Smile fleet volume (which is in the process of moving its airport base from SBIA to DMK).
Figure 3: LCC flight and passenger volume growth
Figure 4: Industry fleet & pax volume growth**
Source: AOT, AAV, NOK, THAI, KT ZMICO Research Note: * Estimate Thai Lion Air to increase fleet by 1 aircraft per 2 months ** Not including medium haul LCC and other newcomers
Thai Smile’s move to DMK may increase NOK’s passengers in L-T Starting from Aug-14, Thai Smile, an LCC operator that is 100% owned by Thai Airways International (THAI), moved some of its flight operations from SBIA to DMK, and it plans to move all the flights to this airport by the end of this year. In our view, Thai Smile’s routes are likely to compete with all other LCC operators based at DMK, not only with NOK. Thai Smile has a flight frequency of 234 flights/week: 154 flights/week are for domestic destinations, especially primary routes. In our view, in the absence of Thai Smile, other LCC operators would increase flight frequency if demand picked up, especially for domestic primary routes. Meanwhile, Thai Smile’s move to DMK will take advantage of the growth of the international market at DMK in the long term. Beside, Thai Smile may transfer connecting passengers to NOK when it lacks appropriate flights to serve connecting passengers. Moreover, as Thai Smile only uses A320-200 aircraft for service, NOK still has a competitive advantage on secondary and feeder routes. While NOK and other LCC operators use websites and booths at airports as selling channels as a tool in LCC’s dynamic pricing model, Thai Smile will need time to develop these selling channels to compete. According to NOK, both LCC operators owned by THAI will co-ordinate on routes and flight time slots to suit each airline’s customers. REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
page 3 of 7
Figure 5: Thai Smile’s flight frequency/week Route Frequency International BKK – Macau 14 BKK – Phnom Penh 14 BKK – Vientiane 14 BKK – Colombo 7 BKK – Delhi 5 BKK – Hyderabad 5 BKK – Mandalay 4 BKK – Chongqing 4 BKK –Changsa 3
Route Domestic BKK – Hat Yai BKK – Udon Thani BKK – Khon Kaen BKK – Chiang Mai BKK – Ubon Rachthani BKK – Surat Thani BKK – Krabi BKK – Chiang Rai Chiang Mai - Phuket
Figure 6: Thai Smile’s fleet plan
Frequency 35 28 21 14 14 14 14 7 7
Source: THAI
Joining with Scoot to set up medium haul LCC Regarding expansion to the international LCC market, NOK currently has one route to Yangoon, Myanmar. The performance looks promising as the cabin factor of this route achieved 78% in 2Q14, after a 50% cabin factor when introducing this route in 4Q13. The company plans to introduce a new international route to Ho Chi Minh City, Vietnam, in 3Q15E. Moreover, NOK will join with Scoot, an LCC 100% owned by Singapore Airlines Limited, to set up a new LCC airline, NokScoot. The new airline will operate medium haul LCC based in Thailand. NOK will hold 49% of the joint venture, with an initial investment of Bt2bn. NokScoot plans to service flights to profitable destinations in the East Asian region, such as Tokyo, Osaka, Hong Kong, Seoul, and Beijing. The airline will start it first flight in Jan-15 with two B777-200 aircraft and expand to seven aircraft over the next five years. The majority of tourist arrivals to Thailand are from the East Asian region, accounting for around 57% of the total (8M14). Among the region, China is the major source of tourist arrivals followed by Japan and South Korea. NokScoot will have an opportunity to serve travelers in the region, which contains some of the fastest growing economies in the world. Among the East Asian region, Chinese tourist arrivals to Thailand showed signs of significant improvement in Aug-14, falling only 5%, vs. -25% in Jul14 after the coup. Korean and Japanese tourists have also shown the same improving trend. This improvement, coupled with visa exemptions for Chinese tourists, causes us to believe that the East Asian region will be a major source of improvement for tourist arrivals to Thailand in 4Q14E and 2015E.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
page 4 of 7
Figure 7: Tourist arrivals by region (8M14)
Figure 8: East Asian tourists show signs of improvement
Source: Department of Tourism
Japan and Korea: top destinations for Thai tourists On the other hand, Thai tourist arrivals to Japan have also increased significantly over the past 10 years (+25% CAGR in 2003-13). Meanwhile, after Japan introduced visa exemptions for Thai tourists (for 14-day stays in Japan) starting in Jul-13, tourists from Thailand to Japan almost doubled to 392,856 persons in 2013, and they expanded by 74% YoY in 5M14. Japan is a top destination for Thais, especially the middle class, owing to the familiarity with the culture and food, in our view. South Korea is another popular destination for Thai tourists with the travel numbers achieving +22% CAGR in 2003-13. Travel to South Korea by Thais became popular subsequent to its policy to open the country by exporting Korean movies/series and entertainers globally, including to Thailand. However, after visa exemptions to Japan went into effect, tourists from Thailand to South Korea declined by 8% YoY in 2013. Nevertheless, Thai tourist arrivals to South Korea returned to +21% in 8M14. Figure 9: Thai tourist arrivals to Japan
Figure 10: Thai tourist arrivals to South Korea
Source: Japan National Tourist Organization (JNTO), Korea Tourism Organization
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
page 5 of 7
Financial tables PROFIT & LOSS (Btm) Revenues Cost of sales and service Gross profit SG&A expense EBITDA Depreciation & amortization EBIT Interest expense Equity earnings Other income / exp. EBT Corporate tax Minority interests Net profit Reported EPS Fully diluted EPS Core net profit Core EPS Dividend (Bt)
2011 6,039 (5,301) 738 (484) 304 (50) 254 0 0 38 292 (92) 0 200 0.40 0.40 200 0.40 0.22
2012 8,218 (7,175) 1,043 (564) 529 (51) 478 0 0 (205) 273 (15) 0 258 0.52 0.52 505 1.01 0.50
2013 11,180 (9,479) 1,701 (737) 1,019 (54) 964 0 0 135 1,099 (33) 0 1,066 1.71 1.71 1,066 1.71 1.03
2014E 12,023 (11,620) 403 (972) (494) (74) (569) (1) 0 167 (403) 40 92 (271) (0.43) (0.43) (271) (0.43) 0.00
2015E 18,133 (16,573) 1,560 (1,149) 505 (94) 411 0 0 176 586 (18) 198 767 1.23 1.23 767 1.23 0.61
2016E 26,321 (23,819) 2,502 (1,596) 1,020 (114) 906 0 0 225 1,131 (34) 144 1,240 1.98 1.98 1,240 1.98 0.99
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
2011 1,247 5 71 693 2,016 0 0 1,218 0 797 2,016
2012 1,656 4 81 511 2,252 0 0 1,364 0 888 2,252
2013 5,365 11 93 803 6,272 0 0 1,728 0 4,543 6,272
2014E 4,197 9 166 1,723 6,095 0 0 1,595 92 4,408 6,095
2015E 5,099 14 226 1,955 7,294 0 0 2,212 290 4,792 7,294
2016E 6,401 20 267 2,272 8,960 0 0 3,115 434 5,412 8,961
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)
2011 200 44 10 66 320 (27) (345) (372) 1 0 (100) 0 (99) (152) (53) (0.11)
2012 258 50 272 264 844 (20) (360) (380) (2) 0 (414) 0 (416) 48 464 0.93
2013 1,066 51 (134) 156 1,138 30 (3,391) (3,361) (38) 3,167 (588) 0 2,542 320 (2,222) (3.56)
2014E (271) 54 424 0 208 (100) (970) (1,070) 0 0 (306) 0 (306) (1,168) (862) (1.38)
2015E 767 74 352 0 1,194 (100) 0 (100) 0 0 (192) 0 (192) 902 1,094 1.75
2016E 1,240 94 570 0 1,905 (100) 0 (100) 0 0 (502) 0 (502) 1,303 1,805 2.89
PROFITABILITY Revenue growth (%) EBITDA growth (%) Core EPS growth (%) Gross margin (%) EBITDA margin (%) Operating margin (%) Net margin (%) Core profit margin (%) Effective tax rate (%)
2011 44.5 (53.6) (66.78) 12.2 5.0 4.2 3.3 3.3 31.6
2012 36.1 73.9 152.84 12.7 6.4 5.8 3.1 6.1 5.6
2013 36.0 92.5 68.80 15.2 9.1 8.6 9.5 9.5 3.0
2014E 7.5 n.m. n.m. 3.4 (4.1) (4.7) (2.3) (2.3) 10.0
2015E 50.8 n.m. n.m. 8.6 2.8 2.3 4.2 4.2 3.0
2016E 45.2 102.0 61.73 9.5 3.9 3.4 4.7 4.7 3.0
2011 cash cash cash
2012 cash cash cash
2013 cash cash cash
2014E cash cash cash
2015E cash cash cash
2015E cash cash cash
FINANCIAL QUALITY Total debt to capital employed (x) Net debt to equity (x) Interest coverage (x)
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
page 6 of 7
DISCLAIMER This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS BUY: Expecting positive total returns of 15% or more over the next 12 months TRADING BUY: Expecting positive total returns of 10% or more over the next 3 months
SECTOR RECOMMENDATIONS OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index by at least 10% over the next 12 months.
SELL INTO STRENGTH: Expecting total returns between -10% to +10% over the next 12 month; share price has largely priced in fundamentals
The industry, as defined by the NEUTRAL: analyst's coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months.
SELL: Expecting negative total returns of 10% or more over the next 12 months
UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index by 10% over the next 12 months.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
page 7 of 7
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.
Nok Airlines
Buy (TP Bt18.40)
Industry turbulence likely to end soon
Price Bt14.70
We lower NOK’s earnings estimates in 2014-15E due mainly to lower-than-expected airfares. However, we believe NOK’s earnings will turn around next year owing to the expected improvement of the LCC industry and the setting up of the new medium haul LCC. We upgrade NOK to BUY (from Trading BUY) with a revised target price of Bt18.40 (based on 15x PER, higher than PER of 13x for peers) vs. Bt19.30 previously. Oversupply situation expected to improve in 2015E Thailand’s LCC industry in 2014E experienced an oversupply situation along with airfare pressure owing to increases in available seat supply from both existing operators and newcomers coupled with slowing demand resulting from the political situation. As the political conflict has been resolved currently, we believe the price pressure for the sector will be relieved in 2015E.
Stock Performance (%) 1M
3M
12M
Absolute
-9.26
-17.42
-42.36
Relative to SET
-6.99
-18.18
-44.99
Share data Reuters / Bloomberg Sector
NOK.BK/NOK TB Transportation & Logistics
Medium haul LCC outlook promising We have a positive view on NOK joining with Scoot, an LCC that is 100% owned by Singapore Airlines, to set up a new medium haul LCC. The first flight will be arranged in Jan-15 to tap the East Asian regional market, especially Japan and South Korea, which is a major source of tourist arrivals to Thailand. Meanwhile, Japan and South Korea are also top destinations for Thai tourists. NOK will gain additional benefit from increased foreign currency income and more connecting customers from Scoot.
Paid-up Shares (m)
Beta
1.34
Expect earnings to stay in the red in 3Q14E According to NOK, the cabin factor in Jun-Aug 14 is likely to improve significantly (from 70% in May to over 85% in Aug), but airfares will still be pressured by competition. Meanwhile, September is the weakest month of the quarter. As a result, the net loss in 3Q14E will likely be higher than the previous quarter. However, earnings are expected to improve in 4Q14E and 2015E.
URL
www.nokair.com
2013 11,180 1,066 1,066 1.71 68.80 1.03 7.27 2013 8.56 3.69 2.01 7.05 39.25 cash
2014E 12,023 (271) (271) (0.43) n.m. 0.00 7.05 2014E n.m. n.m. 2.07 0.00 (6.05) cash
2015E 18,133 767 767 1.23 n.m. 0.61 7.67 2015E 11.90 7.97 1.90 4.20 16.67 cash
1.00
Market cap (Bt bn / US$ m)
9.00/282.00
Foreign limit / actual (%)
49.00/13.52
52 week High / Low (Bt)
25.50/14.50
Avg. daily T/O (shares 000)
2,572.00
NVDR (%)
1.11
Estimated free float (%)
31.75
Major Shareholders (17/03/2014) Thai Airways Plc.
39.20 %
State Street Bank Europe Limited
6.76 %
Aviation Investment International
6.65 %
Limited
Revise down net profit estimates in 2014-15E We revise down our earnings estimate in 2014E for NOK to a net loss of Bt271mn vs. net profit of Bt335mn previously. Meanwhile, we lower the net profit estimate in 2015E by 17% to Bt767mn. Our earnings revisions for both years are based on an upward revision of ASK alongside a downward revision of the average airfare. Meanwhile, the beginning of NokScoot’s operation will be delayed to 1Q15E vs. 4Q14E as previously expected. Financial and Valuation FY Ended 31 Dec 2012 Revenues (Btm) 8,218 Net profit (Btm) 258 Norm. profit (Btm) 505 Norm. EPS (Bt) 1.01 Norm. EPS growth (%) 152.84 Dividend (Bt) 0.50 BV (Bt) 1.78 FY Ended 31 Dec 2012 PER (x) 14.45 EV/EBITDA (x) 14.11 PBV (x) 8.22 Dividend yield (%) 3.42 ROE (%) 59.95 Net gearing (%) cash
625.00
Par (Bt)
2016E 26,321 1,240 1,240 1.98 61.73 0.99 8.66 2016E 7.36 2.67 1.69 6.80 24.32 cash
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
FY14 Consensus EPS (Bt)
FY15
0.714
1.427
n.a.
-13.8%
KT ZMICO vs. consensus Company Profile
The Company operates as a budget airline (Low-cost carrier) under the brand "Nok Air" providing domestic air transport services. Nok Air serves point-to-point routing using narrow body jets and turbo prop aircrafts (flying radius of 4 hours). The Company is considered the leading domestic low cost carrier with the most domestic coverage. Nok Air allows free seat assignments, provides free snack sets on board, and allows a minimum of 15 kilograms of baggage weight without additional cost. The Company was spun off from THAI. CGR 2013 -
Raenoo Bhandasukdi Analyst, no 17989 [email protected] 66 (0) 2695-5836 page 1 of 7
Figure 1: Key changes to our assumptions and revision to earnings forecasts: NOK 2014E Ended Dec
New
2015E
Previous
% +/-
New
Previous
% +/-
ASK growth (% YoY)
31.4
24.3
25.0
18.3
RPK growth (% YoY)
27.3
20.9
28.0
21.0
Cabin factor (%)
81.4
81.7
83.3
83.5
7.5
7.0
7.1
9.0
8.5
5.9
1,484
1,609
(7.8)
1,543
1,641
(6.0)
(17.0)
(10.0)
4.0
2.0
119
119
0.0
125
125
Cabin factor (%)
-
72.0
Passengers carried (mn)
-
0.1
0.6
Average fare (Bt/Passenger)
-
4,100
4,350
Passengers carried (mn) Average fare (Bt/passenger) % +/Average ancillary (Bt/passenger)
0.0
NOK-SCOOT assumption
Revenue (Btmn)
75.7
12,023
12,605
(4.6)
18,133
18,098
0.2
Normalized profit (Btmn)
(271)
335
n.m.
767
930
(17.5)
Net profit (Btmn)
(271)
335
n.m.
767
930
(17.5)
Source: KT ZMICO Research
Figure 2: Peer comparison COUNTRY
Mkt Cap
PER (x)
US$mn 14E
15E
PBV (x) 16E
14E
15E
Yield (%) 16E
14E
15E
ROE (%) 16E
14E
15E
EV/EBITDA (x) 16E
14E
15E
16E
AIR ASIA BHD
Malaysia
2,120
12.1
9.6
7.8
1.3
1.1
1.0
1.7
2.1
2.4
10.1
12.0
13.4
10.3
8.9
AIRARABI
UAE
1,779
14.3
12.5
11.2
1.2
1.1
1.1
5.2
5.7
6.5
8.7
9.3
10.1
11.1
9.1
7.9 7.7
CEBU AIR INC
Philippines
945
14.1
12.4
10.2
1.8
1.6
1.4
2.1
2.3
2.3
15.8
15.5
15.9
8.2
7.7
6.9
EASYJET PLC
Britain
8,909
12.2
11.1
9.8
2.5
2.2
2.0
3.0
3.3
3.7
21.3
21.4
20.9
7.2
6.6
5.9
RYANAIR HOLDINGS PLC
Ireland
12,573
20.6
14.8
12.9
3.2
2.8
2.4
0.0
3.4
0.7
15.9
20.0
20.0
10.3
7.7
6.9
SOUTHWEST AIRLINES
USA
22,637
18.1
15.2
13.6
2.8
2.4
2.1
0.6
0.7
0.8
15.8
15.8
17.6
7.0
6.2
5.8
TIGER AIRWAYS HLDG
Singapore
305
n.a.
n.a.
n.a.
6.6
2.2
2.5
0.0
0.0
0.0
n.m.
n.m.
n.m.
n.a.
n.a.
23.0
VIRGIN AUSTRALIA HLDG
Australia
1,146
n.a.
n.a.
n.a.
1.4
1.2
1.2
0.0
0.0
0.0
(33.1)
(9.0)
0.1
n.m.
10.7
7.6
WESTJET AIRLINES LTD
Canada
3,447
12.8
10.3
9.2
2.2
1.9
1.6
1.6
1.9
2.2
17.6
18.9
19.3
5.5
4.7
4.2
Thailand
667
99.0
20.6
16.8
1.1
1.1
1.0
0.0
2.0
2.4
1.1
5.2
6.2
20.3
8.0
6.7
25.4
13.3
11.4
2.4
1.8
1.6
1.4
2.1
2.1
8.1
12.1
13.7
25.7
7.7
8.2
Thailand
285
n.m.
11.9
7.4
2.1
1.9
1.7
0.0
4.2
6.8
(6.1)
16.7
24.3
n.m.
8.0
2.7
AAV* Average (simple) NOK*
Source: Bloomberg Note: *KT ZMICO Research estimates
Industry price cuts expected to be relieved after end of the protest Flight expansion and fierce competition, especially from new comer Thai Lion Air, coupled with the slowdown of travel demand from international passengers, prompted LCC operators to cut their airfares to compete with each other. Although NOK has focused mainly on domestic routes, an oversupply situation in international routes still had a negative impact on the company, especially on primary routes that account for 75% of NOK’s total revenue (2013). However, based on historical records, tourist arrivals to Thailand have rebounded strongly after the end of crises, both political unrest and natural disasters. This is due to the strength of Thailand’s tourism sector and the diversification of tourist destinations. As a result, we believe the price situation will be better after the resolution of the political crisis, especially in 4Q14E upon entering the high season of the tourism industry in Thailand. Although the tourism situation remains uncertain as the NCPO has not yet lifted martial law, political calm and the government’s support of the tourism industry is still a positive catalyst to the sector.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
page 2 of 7
According to monthly statistics from the AOT, LCC flight expansion slowed down to +18% and +19% in Jul-Aug 14 after an increase of 34% in Apr-May 14. On the other hand, travel demand looks to be improving as LCC passenger volume increased at a higher rate to +23% and 24% in Jul-Aug 14, from +17% in Jun-14 after the coup. As a result, we believe the ticket price pressure for LCC operators will be relieved in 4Q14E. We expect average fares for NOK to improve in 2015E on the favorable demand-supply situation for the LCC industry, with the industry fleet likely to grow in line with passenger volume. As a result, LCC operators that focus on international routes will shift their capacities to international flights and increase their average ticket prices while competition for domestic routes is likely to decline. It should be noted that our fleet growth assumptions do not include medium haul LCC (two aircraft from NokScoot and five aircraft from Thai Air Asia X) or other newcomers, but do include Thai Smile fleet volume (which is in the process of moving its airport base from SBIA to DMK).
Figure 3: LCC flight and passenger volume growth
Figure 4: Industry fleet & pax volume growth**
Source: AOT, AAV, NOK, THAI, KT ZMICO Research Note: * Estimate Thai Lion Air to increase fleet by 1 aircraft per 2 months ** Not including medium haul LCC and other newcomers
Thai Smile’s move to DMK may increase NOK’s passengers in L-T Starting from Aug-14, Thai Smile, an LCC operator that is 100% owned by Thai Airways International (THAI), moved some of its flight operations from SBIA to DMK, and it plans to move all the flights to this airport by the end of this year. In our view, Thai Smile’s routes are likely to compete with all other LCC operators based at DMK, not only with NOK. Thai Smile has a flight frequency of 234 flights/week: 154 flights/week are for domestic destinations, especially primary routes. In our view, in the absence of Thai Smile, other LCC operators would increase flight frequency if demand picked up, especially for domestic primary routes. Meanwhile, Thai Smile’s move to DMK will take advantage of the growth of the international market at DMK in the long term. Beside, Thai Smile may transfer connecting passengers to NOK when it lacks appropriate flights to serve connecting passengers. Moreover, as Thai Smile only uses A320-200 aircraft for service, NOK still has a competitive advantage on secondary and feeder routes. While NOK and other LCC operators use websites and booths at airports as selling channels as a tool in LCC’s dynamic pricing model, Thai Smile will need time to develop these selling channels to compete. According to NOK, both LCC operators owned by THAI will co-ordinate on routes and flight time slots to suit each airline’s customers. REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
page 3 of 7
Figure 5: Thai Smile’s flight frequency/week Route Frequency International BKK – Macau 14 BKK – Phnom Penh 14 BKK – Vientiane 14 BKK – Colombo 7 BKK – Delhi 5 BKK – Hyderabad 5 BKK – Mandalay 4 BKK – Chongqing 4 BKK –Changsa 3
Route Domestic BKK – Hat Yai BKK – Udon Thani BKK – Khon Kaen BKK – Chiang Mai BKK – Ubon Rachthani BKK – Surat Thani BKK – Krabi BKK – Chiang Rai Chiang Mai - Phuket
Figure 6: Thai Smile’s fleet plan
Frequency 35 28 21 14 14 14 14 7 7
Source: THAI
Joining with Scoot to set up medium haul LCC Regarding expansion to the international LCC market, NOK currently has one route to Yangoon, Myanmar. The performance looks promising as the cabin factor of this route achieved 78% in 2Q14, after a 50% cabin factor when introducing this route in 4Q13. The company plans to introduce a new international route to Ho Chi Minh City, Vietnam, in 3Q15E. Moreover, NOK will join with Scoot, an LCC 100% owned by Singapore Airlines Limited, to set up a new LCC airline, NokScoot. The new airline will operate medium haul LCC based in Thailand. NOK will hold 49% of the joint venture, with an initial investment of Bt2bn. NokScoot plans to service flights to profitable destinations in the East Asian region, such as Tokyo, Osaka, Hong Kong, Seoul, and Beijing. The airline will start it first flight in Jan-15 with two B777-200 aircraft and expand to seven aircraft over the next five years. The majority of tourist arrivals to Thailand are from the East Asian region, accounting for around 57% of the total (8M14). Among the region, China is the major source of tourist arrivals followed by Japan and South Korea. NokScoot will have an opportunity to serve travelers in the region, which contains some of the fastest growing economies in the world. Among the East Asian region, Chinese tourist arrivals to Thailand showed signs of significant improvement in Aug-14, falling only 5%, vs. -25% in Jul14 after the coup. Korean and Japanese tourists have also shown the same improving trend. This improvement, coupled with visa exemptions for Chinese tourists, causes us to believe that the East Asian region will be a major source of improvement for tourist arrivals to Thailand in 4Q14E and 2015E.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
page 4 of 7
Figure 7: Tourist arrivals by region (8M14)
Figure 8: East Asian tourists show signs of improvement
Source: Department of Tourism
Japan and Korea: top destinations for Thai tourists On the other hand, Thai tourist arrivals to Japan have also increased significantly over the past 10 years (+25% CAGR in 2003-13). Meanwhile, after Japan introduced visa exemptions for Thai tourists (for 14-day stays in Japan) starting in Jul-13, tourists from Thailand to Japan almost doubled to 392,856 persons in 2013, and they expanded by 74% YoY in 5M14. Japan is a top destination for Thais, especially the middle class, owing to the familiarity with the culture and food, in our view. South Korea is another popular destination for Thai tourists with the travel numbers achieving +22% CAGR in 2003-13. Travel to South Korea by Thais became popular subsequent to its policy to open the country by exporting Korean movies/series and entertainers globally, including to Thailand. However, after visa exemptions to Japan went into effect, tourists from Thailand to South Korea declined by 8% YoY in 2013. Nevertheless, Thai tourist arrivals to South Korea returned to +21% in 8M14. Figure 9: Thai tourist arrivals to Japan
Figure 10: Thai tourist arrivals to South Korea
Source: Japan National Tourist Organization (JNTO), Korea Tourism Organization
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
page 5 of 7
Financial tables PROFIT & LOSS (Btm) Revenues Cost of sales and service Gross profit SG&A expense EBITDA Depreciation & amortization EBIT Interest expense Equity earnings Other income / exp. EBT Corporate tax Minority interests Net profit Reported EPS Fully diluted EPS Core net profit Core EPS Dividend (Bt)
2011 6,039 (5,301) 738 (484) 304 (50) 254 0 0 38 292 (92) 0 200 0.40 0.40 200 0.40 0.22
2012 8,218 (7,175) 1,043 (564) 529 (51) 478 0 0 (205) 273 (15) 0 258 0.52 0.52 505 1.01 0.50
2013 11,180 (9,479) 1,701 (737) 1,019 (54) 964 0 0 135 1,099 (33) 0 1,066 1.71 1.71 1,066 1.71 1.03
2014E 12,023 (11,620) 403 (972) (494) (74) (569) (1) 0 167 (403) 40 92 (271) (0.43) (0.43) (271) (0.43) 0.00
2015E 18,133 (16,573) 1,560 (1,149) 505 (94) 411 0 0 176 586 (18) 198 767 1.23 1.23 767 1.23 0.61
2016E 26,321 (23,819) 2,502 (1,596) 1,020 (114) 906 0 0 225 1,131 (34) 144 1,240 1.98 1.98 1,240 1.98 0.99
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
2011 1,247 5 71 693 2,016 0 0 1,218 0 797 2,016
2012 1,656 4 81 511 2,252 0 0 1,364 0 888 2,252
2013 5,365 11 93 803 6,272 0 0 1,728 0 4,543 6,272
2014E 4,197 9 166 1,723 6,095 0 0 1,595 92 4,408 6,095
2015E 5,099 14 226 1,955 7,294 0 0 2,212 290 4,792 7,294
2016E 6,401 20 267 2,272 8,960 0 0 3,115 434 5,412 8,961
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)
2011 200 44 10 66 320 (27) (345) (372) 1 0 (100) 0 (99) (152) (53) (0.11)
2012 258 50 272 264 844 (20) (360) (380) (2) 0 (414) 0 (416) 48 464 0.93
2013 1,066 51 (134) 156 1,138 30 (3,391) (3,361) (38) 3,167 (588) 0 2,542 320 (2,222) (3.56)
2014E (271) 54 424 0 208 (100) (970) (1,070) 0 0 (306) 0 (306) (1,168) (862) (1.38)
2015E 767 74 352 0 1,194 (100) 0 (100) 0 0 (192) 0 (192) 902 1,094 1.75
2016E 1,240 94 570 0 1,905 (100) 0 (100) 0 0 (502) 0 (502) 1,303 1,805 2.89
PROFITABILITY Revenue growth (%) EBITDA growth (%) Core EPS growth (%) Gross margin (%) EBITDA margin (%) Operating margin (%) Net margin (%) Core profit margin (%) Effective tax rate (%)
2011 44.5 (53.6) (66.78) 12.2 5.0 4.2 3.3 3.3 31.6
2012 36.1 73.9 152.84 12.7 6.4 5.8 3.1 6.1 5.6
2013 36.0 92.5 68.80 15.2 9.1 8.6 9.5 9.5 3.0
2014E 7.5 n.m. n.m. 3.4 (4.1) (4.7) (2.3) (2.3) 10.0
2015E 50.8 n.m. n.m. 8.6 2.8 2.3 4.2 4.2 3.0
2016E 45.2 102.0 61.73 9.5 3.9 3.4 4.7 4.7 3.0
2011 cash cash cash
2012 cash cash cash
2013 cash cash cash
2014E cash cash cash
2015E cash cash cash
2015E cash cash cash
FINANCIAL QUALITY Total debt to capital employed (x) Net debt to equity (x) Interest coverage (x)
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
page 6 of 7
DISCLAIMER This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS BUY: Expecting positive total returns of 15% or more over the next 12 months TRADING BUY: Expecting positive total returns of 10% or more over the next 3 months
SECTOR RECOMMENDATIONS OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index by at least 10% over the next 12 months.
SELL INTO STRENGTH: Expecting total returns between -10% to +10% over the next 12 month; share price has largely priced in fundamentals
The industry, as defined by the NEUTRAL: analyst's coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months.
SELL: Expecting negative total returns of 10% or more over the next 12 months
UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index by 10% over the next 12 months.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES
page 7 of 7
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.
