Outperform (17E TP Bt17.50) Company Update
GFPT Outperform (17E TP Bt17.50)
Company Update
Close Bt17.40
Agribusiness April 24, 2017
Earning upgrade/Earnings downgrade/Overview unchanged
Solid 1Q17E earnings growth of 50%YoY; bright export outlook Price Performance (%)
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
1.401
1.506
KT ZMICO vs. consensus Share data
‐4.4%
‐3.7%
Reuters / Bloomberg
GFPT.BK/GFPT TB
Paid‐up Shares (m)
1,253.82
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
22.00/635.00
Foreign limit / actual (%)
49.00/19.28
52 week High / Low (Bt)
19.90/10.70
Avg. daily T/O (shares 000) NVDR (%)
5,566.00 6.42
Estimated free float (%)
44.19
Beta
1.13
URL
www.gfpt.co.th
CGR
Level 2 (Declared)
Anti‐corruption
Phornsri Laysanitsaerekul Analyst , no 17621 [email protected] 66 (0) 2624‐6258
Bright business outlook and promising earnings prospects The outlook for Thai broiler exports remains bright with expected new markets in 2017. The raw material costs may remain low while domestic broiler prices should stay sound. Hence, the firm’s profit margin is expected to continue growing strongly. 1Q17E earnings are expected to have grown by 50%YoY. However, the current share price is almost fully valued vs. our target price of Bt17.50/share (13x PER). We thus downgrade our rating to “Outperform” (from Buy). Thai broiler export growth projected at 2‐8% in 2017E The Thai Broiler Export Association projects Thai broiler export growth of 2‐8% to 760,000 to 800,000 tons, driven by growing demand from the Japanese market for both raw and cooked products, as well as new markets (for raw broiler products), e.g., South Korea, Singapore and a potential market, Saudi Arabia (i.e., the world’s second biggest broiler importer at 0.85mn tons after Japan at 0.96mn tons in 2016). Saudi Arabia is likely to resume imports of raw chicken part products from Thailand in the near future. Good broiler prices and low raw material costs to drive profit margin The latest broiler price has risen to Bt40‐41/kg (vs. an average of Bt39‐ 40/share in 1Q17 and Bt37/share in2016), which is consistent with the increase in the current price of day‐old chicks to Bt17.50/chick (vs. the average of Bt16.2 in 1Q17 and Bt13.3 in 2016). The domestic broiler price is likely to remain high in the next 3‐6 months on the back of growing demand from the expansion of export markets. As for raw material prices (feed), the levels remain low. For example, the corn price has been at Bt8/kg (vs. Bt8.6 in 2016) and the soybean meal price has stood at Bt16.2/kg (vs. Bt17.1 in 2016), which is positive to operators’ profit margins. Bright outlook for 1Q17 with expected growth of +50%YoY but ‐7%QoQ We expect GFPT to report core profit of Bt413mn in 1Q17 (+50%YoY, ‐ 7%QoQ), with projected sales of Bt4.37bn (+12%YoY, ‐3%QoQ). The gross profit margin is projected at 15% (vs. 11.5% in 1Q16 and 17.1% in 4Q16). Finally, the firm is expected to have booked a profit contribution from its affiliates at Bt90mn (‐15%YoY, +20%QoQ). 2017E earnings projection maintained If the 1Q17E earnings come out in line with expectations, the figure will represent 24.5% of our full‐year projection at Bt1.69bn (+6%), which is quite good for 1Q earnings (note: normally the first quarter earnings mark the low point for the year before accelerating in 2Q and peaking in 3Q). Given the bright outlook for Thai broiler exports, our 2017E earnings projection tilts to upside. Financial 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 PER (x) EV/EBITDA (x) PBV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 17,829 1,780 1.42 1.40 17% 0.40 6.89 2014 12.26 10.76 2.53 2.3% 22.4% 38%
2015 16,467 1,195 0.95 0.95 ‐33% 0.25 7.44 2015 18.26 13.33 2.34 1.4% 13.3% 38%
2016 16,693 1,594 1.27 1.27 33% 0.30 8.50 2016 13.69 10.56 2.05 1.7% 16.0% 33%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 18,296 1,685 1.34 1.34 6% 0.40 9.43 2017E 12.95 10.42 1.84 2.3% 15.0% 27%
2018E 18,914 1,813 1.45 1.45 8% 0.43 10.45 2018E 12.04 9.32 1.67 2.5% 14.5% 19%
Bright outlook for 1Q17 with expected growth of +50%YoY but ‐7%QoQ Export volume normally falls on seasonality in 1Q; however, given strong demand from Japan and Malaysia, export volume is projected at 7,200 tons (+33%YoY, ‐20%QoQ). As export prices in the first two months remained solid, we project sales of Bt4.37bn in value terms (+12%YoY, ‐ 3%QoQ). Meanwhile, thanks to low feed costs, the firm’s gross profit margin is projected at 15% (vs. 11.5% in 1Q16 and 17.1% in 4Q16). Finally, the firm is expected to have booked a profit contribution from its affiliates at Bt90mn (‐15%YoY, +20%QoQ). Figure 1: 1Q17 earnings preview
YE Dec (Bt m) Sales COGS Gross profit SG&A expense Others income EBIT Interest expense EBT Tax expense Equity income MI Norm. profit Extra. Items Net profit EPS (Bt) Gross margin EBIT margin Norm. profit margin
1Q16 4Q16 1Q17E % YoY %QoQ 2016 2017E % YoY YTD (% of 2017E) 3,901 4,479 4,365 11.9% ‐2.5% 16,693 18,296 9.6% 23.9% ‐3,453 ‐3,713 ‐3,711 7.5% ‐0.1% ‐14,191 ‐15,735 ‐1.9% 23.6% 448 766 655 46.1% ‐14.5% 2,502 2,561 24.9% 25.6% ‐294 ‐332 ‐327 11.3% ‐1.4% ‐1,243 ‐1,297 6.2% 25.2% 64 34 50 ‐21.4% 49.2% 280 323 22.5% 15.5% 218 467 377 73.3% ‐19.3% 1,539 1,587 45.0% 23.8% ‐27 ‐21 ‐21 ‐19.6% 0.0% ‐98 ‐102 ‐20.5% 20.9% 191 446 356 86.2% ‐20.2% 1,441 1,485 53.6% 24.0% ‐19 ‐77 ‐31 60.4% ‐59.4% ‐206 ‐189 ‐1150.5% 16.5% 106 75 90 ‐14.9% 19.8% 371 404 49.2% 22.4% 3 3 2 ‐35.8% ‐23.5% 13 15 ‐29.9% 13.3% 275 442 413 50.4% ‐6.5% 1,594 1,685 34.1% 24.5% 0 50 0 nm nm 50 0 nm nm 275 492 413 50.4% ‐15.9% 1,644 1,685 37.6% 24.5% 0.22
0.35
0.33
11.5% 17.1% 15.0% 5.6% 10.4% 8.6% 7.0% 9.9% 9.5%
50.4%
‐6.5%
1.31
1.34
15.0% 9.2% 9.5%
14.0% 8.7% 9.2%
38.4%
24.5%
Source: SET and KTZMICO Research
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, CI, 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
Company Update
Close Bt17.40
Agribusiness April 24, 2017
Earning upgrade/Earnings downgrade/Overview unchanged
Solid 1Q17E earnings growth of 50%YoY; bright export outlook Price Performance (%)
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
1.401
1.506
KT ZMICO vs. consensus Share data
‐4.4%
‐3.7%
Reuters / Bloomberg
GFPT.BK/GFPT TB
Paid‐up Shares (m)
1,253.82
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
22.00/635.00
Foreign limit / actual (%)
49.00/19.28
52 week High / Low (Bt)
19.90/10.70
Avg. daily T/O (shares 000) NVDR (%)
5,566.00 6.42
Estimated free float (%)
44.19
Beta
1.13
URL
www.gfpt.co.th
CGR
Level 2 (Declared)
Anti‐corruption
Phornsri Laysanitsaerekul Analyst , no 17621 [email protected] 66 (0) 2624‐6258
Bright business outlook and promising earnings prospects The outlook for Thai broiler exports remains bright with expected new markets in 2017. The raw material costs may remain low while domestic broiler prices should stay sound. Hence, the firm’s profit margin is expected to continue growing strongly. 1Q17E earnings are expected to have grown by 50%YoY. However, the current share price is almost fully valued vs. our target price of Bt17.50/share (13x PER). We thus downgrade our rating to “Outperform” (from Buy). Thai broiler export growth projected at 2‐8% in 2017E The Thai Broiler Export Association projects Thai broiler export growth of 2‐8% to 760,000 to 800,000 tons, driven by growing demand from the Japanese market for both raw and cooked products, as well as new markets (for raw broiler products), e.g., South Korea, Singapore and a potential market, Saudi Arabia (i.e., the world’s second biggest broiler importer at 0.85mn tons after Japan at 0.96mn tons in 2016). Saudi Arabia is likely to resume imports of raw chicken part products from Thailand in the near future. Good broiler prices and low raw material costs to drive profit margin The latest broiler price has risen to Bt40‐41/kg (vs. an average of Bt39‐ 40/share in 1Q17 and Bt37/share in2016), which is consistent with the increase in the current price of day‐old chicks to Bt17.50/chick (vs. the average of Bt16.2 in 1Q17 and Bt13.3 in 2016). The domestic broiler price is likely to remain high in the next 3‐6 months on the back of growing demand from the expansion of export markets. As for raw material prices (feed), the levels remain low. For example, the corn price has been at Bt8/kg (vs. Bt8.6 in 2016) and the soybean meal price has stood at Bt16.2/kg (vs. Bt17.1 in 2016), which is positive to operators’ profit margins. Bright outlook for 1Q17 with expected growth of +50%YoY but ‐7%QoQ We expect GFPT to report core profit of Bt413mn in 1Q17 (+50%YoY, ‐ 7%QoQ), with projected sales of Bt4.37bn (+12%YoY, ‐3%QoQ). The gross profit margin is projected at 15% (vs. 11.5% in 1Q16 and 17.1% in 4Q16). Finally, the firm is expected to have booked a profit contribution from its affiliates at Bt90mn (‐15%YoY, +20%QoQ). 2017E earnings projection maintained If the 1Q17E earnings come out in line with expectations, the figure will represent 24.5% of our full‐year projection at Bt1.69bn (+6%), which is quite good for 1Q earnings (note: normally the first quarter earnings mark the low point for the year before accelerating in 2Q and peaking in 3Q). Given the bright outlook for Thai broiler exports, our 2017E earnings projection tilts to upside. Financial 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 PER (x) EV/EBITDA (x) PBV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 17,829 1,780 1.42 1.40 17% 0.40 6.89 2014 12.26 10.76 2.53 2.3% 22.4% 38%
2015 16,467 1,195 0.95 0.95 ‐33% 0.25 7.44 2015 18.26 13.33 2.34 1.4% 13.3% 38%
2016 16,693 1,594 1.27 1.27 33% 0.30 8.50 2016 13.69 10.56 2.05 1.7% 16.0% 33%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 18,296 1,685 1.34 1.34 6% 0.40 9.43 2017E 12.95 10.42 1.84 2.3% 15.0% 27%
2018E 18,914 1,813 1.45 1.45 8% 0.43 10.45 2018E 12.04 9.32 1.67 2.5% 14.5% 19%
Bright outlook for 1Q17 with expected growth of +50%YoY but ‐7%QoQ Export volume normally falls on seasonality in 1Q; however, given strong demand from Japan and Malaysia, export volume is projected at 7,200 tons (+33%YoY, ‐20%QoQ). As export prices in the first two months remained solid, we project sales of Bt4.37bn in value terms (+12%YoY, ‐ 3%QoQ). Meanwhile, thanks to low feed costs, the firm’s gross profit margin is projected at 15% (vs. 11.5% in 1Q16 and 17.1% in 4Q16). Finally, the firm is expected to have booked a profit contribution from its affiliates at Bt90mn (‐15%YoY, +20%QoQ). Figure 1: 1Q17 earnings preview
YE Dec (Bt m) Sales COGS Gross profit SG&A expense Others income EBIT Interest expense EBT Tax expense Equity income MI Norm. profit Extra. Items Net profit EPS (Bt) Gross margin EBIT margin Norm. profit margin
1Q16 4Q16 1Q17E % YoY %QoQ 2016 2017E % YoY YTD (% of 2017E) 3,901 4,479 4,365 11.9% ‐2.5% 16,693 18,296 9.6% 23.9% ‐3,453 ‐3,713 ‐3,711 7.5% ‐0.1% ‐14,191 ‐15,735 ‐1.9% 23.6% 448 766 655 46.1% ‐14.5% 2,502 2,561 24.9% 25.6% ‐294 ‐332 ‐327 11.3% ‐1.4% ‐1,243 ‐1,297 6.2% 25.2% 64 34 50 ‐21.4% 49.2% 280 323 22.5% 15.5% 218 467 377 73.3% ‐19.3% 1,539 1,587 45.0% 23.8% ‐27 ‐21 ‐21 ‐19.6% 0.0% ‐98 ‐102 ‐20.5% 20.9% 191 446 356 86.2% ‐20.2% 1,441 1,485 53.6% 24.0% ‐19 ‐77 ‐31 60.4% ‐59.4% ‐206 ‐189 ‐1150.5% 16.5% 106 75 90 ‐14.9% 19.8% 371 404 49.2% 22.4% 3 3 2 ‐35.8% ‐23.5% 13 15 ‐29.9% 13.3% 275 442 413 50.4% ‐6.5% 1,594 1,685 34.1% 24.5% 0 50 0 nm nm 50 0 nm nm 275 492 413 50.4% ‐15.9% 1,644 1,685 37.6% 24.5% 0.22
0.35
0.33
11.5% 17.1% 15.0% 5.6% 10.4% 8.6% 7.0% 9.9% 9.5%
50.4%
‐6.5%
1.31
1.34
15.0% 9.2% 9.5%
14.0% 8.7% 9.2%
38.4%
24.5%
Source: SET and KTZMICO Research
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, CI, 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
