Profit accretion from BIGC to boost 2Q16 core profit
Berli Jucker
Buy (17E TP Bt49.00)
Company Update
Close Bt45.75
Commerce
Earnings upgrade/Earnings downgrade/Overview unchanged
August 1, 2016
Profit accretion from BIGC to boost 2Q16 core profit Price Performance (%) Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
0.823
1.583
KT ZMICO vs. consensus Share data
14.2%
5.5%
Reuters / Bloomberg
BJC.BK/BJC TB
Paid‐up Shares (m)
3,185.50
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
146.00/4,191.00
Foreign limit / actual (%)
49.00/9.88
52 week High / Low (Bt)
46.00/26.19
Avg. daily T/O (shares 000) NVDR (%)
2,439.00 1.74
Estimated free float (%)
20.72
Beta
0.62
URL
www.bjc.co.th
CGR
Anti‐corruption
n.a.
Pornsawat Jirajarus Analyst, no 18228 [email protected] 66 (0) 2624‐6257
Profit to accelerate in 2H16 Profit accretion from BIGC should help boost BJC’s earnings significantly from 2Q16 onward. This together with improving profitability from BJC’s existing business, the low interest rate trend and gradual progress on synergies should be earnings catalysts in 2H16‐17E. We retain our view that BJC’s post‐acquisition outlook as ASEAN’s leading integrated retail platform and its prospective PE/EPS growth at 0.6x in 2017 to EPS CAGR of 47% in 17‐18E are attractive. Maintain our Buy call. Expect 2Q16 core net profit of Bt651mn, up 62% YoY We estimate BJC’s 2Q16 net profit at Bt435mn, down 42% YoY due largely to comparing to the abnormally high base from extra gain of Bt343mn (from Danone investment) in 2Q15 and the unrealized Fx loss (est. Bt270mn from hedging contracts) in 2Q16. Excluding extraordinary items, BJC’s 2Q16 core net profit should be Bt651mn, up 62% YoY and 19% QoQ, driven by both improving profit from existing businesses and additional profit from the BIGC consolidation (we estimate a net contribution of around Bt180‐200mn in 2Q16). Improving sales in the packaging business (especially in glass bottles), healthcare products and the international sales of consumer products business should be key areas for profit growth in existing businesses. BIGC’s same‐store sales should contract further to 5‐6% (‐2.9% in 1Q16) due to rising competition and the changing product mix to focus more on profitable items; nevertheless, well‐controlled SG&A expenses should have helped shore up profit slightly YoY. BJC’s 1H16E net profit should be Bt960mn, down 25% YoY (due to extra items), but core net profit would be Bt1.20bn, up 29% YoY and accounting for 32% of our full‐year forecast. Increasing profit from BIGC and huge Fx gain in 3Q16 We expect BJC’s core profit to continue improving, given growing sales from the packaging business, low fuel costs and improving profit from BIGC as the catalysts. BJC has already hedged all Fx exposure and it should realize huge Fx gain (could be as high as Bt800‐900mn) when refinancing all bridge loans in 3Q16. Thus far, the company has paid down approximately 40% of bridge loans with the proceeds from its first RO last month and expects to refinance the remaining debt within August. We maintain our core profit forecast, as we expect improving profit in 2H16, especially from BIGC’s seasonal pickup in earnings in Q4, to keep our forecasts achievable. Financials and Valuation FY Ended 31 Dec Revenues (Bt mn) Net profit (Bt mn) EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) EV/EBITDA (x) PBV (x) Dividend yield (%) ROE (%) Net Gearing (%)
2014 43,423 1,680 1.05 (30.85) 0.60 11.32 2014 39.1 16.0 3.6 1.3 9.4 83.9
2015 42,893 2,792 1.75 66.22 0.84 13.03 2015 20.0 11.3 2.7 2.2 14.4 66.7
2016E 143,730 3,764 0.94 (46.12) 0.47 27.00 2016E 48.4 20.3 1.0 1.2 3.1 75.4
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 186,091 6,646 1.67 76.56 0.83 28.30 2017E 27.4 15.2 1.6 1.8 4.4 128.0
2018E 202,460 8,125 2.04 22.25 1.02 29.68 2018E 22.5 14.3 1.5 2.2 7.0 123.2
Figure 1: Quarterly earnings results preview Profit and Loss (Btmn) FY Ended 31 Dec 2Q15 3Q15 4Q15 Revenue 10,241 10,388 11,771 Gross profit 2,383 2,379 2,530 EBITDA 1,597 1,914 1,580 Interest expense 128 111 122 Other income 469 693 167 Income tax 86 80 125 Forex gain (loss) 33 94 (15) Other extraordinary Items 0 0 0 Gn (Ls) from affiliates 4 49 25 Net profit (loss) 744 825 693 Normalized profit (loss) 401 481 663 Reported EPS (THB) 0.47 0.52 0.44 Gross margin (%) 23.3 22.9 21.5 EBITDA margin (%) 15.6 18.4 13.4 Net margin (%) 7.3 7.9 5.9 Current ratio (x) 1.0 1.1 1.2 Interest coverage (x) 18.5 23.8 12.6 Debt / equity (x) 1.5 1.5 1.2 BVPS (Bt) 12.0 12.5 13.0 ROE (%) 4.4 11.1 10.1
1Q16 2Q16E % YoY % QoQ
1H15
14,717
41,503
305.3
182.0 20,734
3,085
6,879
188.7
123.0
4,913
2,004
4,686
193.4
133.8
273
1,924
high
603.9
520
3,640
676.8
198
382
(27) 0
1H16E % YoY 56,220
2016E % YoY 235.1
39.1
9,964
102.8
24,523
149.7
40.6
2,972
6,690
125.1
16,264
151.5
41.1
260
2,198
745.8
6,016
0.0
36.5
600.4
619
4,160
571.9
12,194
724.6
34.1
341.5
93.1
195
580
197.5
1,076
168.8
53.9
(270)
n.m.
887.3
37
(297)
n.m.
(297)
n.m.
n.m.
0
n.m.
n.m.
0
0
n.m.
0
n.m.
n.m.
59
30
674.2
(49.4)
13
89
574.5
159
82.8
56.0
525
435
(41.6)
(17.2)
1,273
960
(24.6)
3,764
34.8
25.5
549
651
62.2
18.6
930
1,200
28.9
3,764
81.4
31.9
0.33
0.27
(41.6)
(17.2)
0.80
0.60
(24.6)
0.94
(46.1)
63.8
21.0
16.6
23.7
17.7
17.1
13.6
11.3
14.3
11.9
11.3
3.6
1.0
6.1
1.7
2.6
0.2
n.a.
1.0
n.a.
0.3
10.1
12.3
15.3
11.5
2.7
5.0
n.a.
1.5
n.a.
1.0
25.3
n.a.
12.0
n.a.
47.4
3.4
n.a.
4.4
n.a.
2.0
Source: Bloomberg, KT ZMICO Research
Packaging
Consumer product
Healthcare & Technical
600 500 400 300 200 100
1Q16
4Q15
3Q15
2Q15
1Q15
4Q14
3Q14
2Q14
1Q14
4Q13
3Q13
2Q13
1Q13
1Q16
4Q15
3Q15
2Q15
1Q15
4Q14
3Q14
2Q14
1Q14
4Q13
3Q13
2Q13
1Q13
Figure 2: BJC’s quarterly net profit trend Core profit 800 600 400 200 Source: BJC, KT Zmico estimates
Figure 3: BIGC’s net profit forecasts Quarterly
Yearly
5,000
12,000
4,000
10,000 8,000
3,000
6,000 2,000
4,000 1,000
2,000
2018E
2017E
2016E
2015
2014
2013
2012
2011
0
‐
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16E 3Q16E 4Q16E
% YTD
171.1 143,730
Source: BJC, KT Zmico estimates
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 3
Note: KT ZMICO has two major shareholders, Krungthai Bank PLC (KTB) and Seamico Securities PLC (ZMICO). Therefore, prior to making investments in the securities of KTB and ZMICO, investors should consider the risk factors carefully. An executive of KT ZMICO Securities is also a board member of BCP, BTC, CI, CPI, KBS, MAJOR, MK, PACE, PSL, SVH, VNG, ZMICO, SAWAD, TFG. A management member of KT ZMICO Securities is also a board member of BTC and NFC. KT ZMICO is a financial advisor for U, LOXLEY, ZMICO, MAKRO, CPALL, SAFARI, PACE, PLE, TPOLY, M‐CHAI. KT ZMICO is a co‐underwriter of ALT, EKH.
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,
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Telephone: (66-2) 686-1500
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Chachoengsao Branch
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G Floor, Lao Peng Nguan 1 Bldg.,
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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
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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.
Buy (17E TP Bt49.00)
Company Update
Close Bt45.75
Commerce
Earnings upgrade/Earnings downgrade/Overview unchanged
August 1, 2016
Profit accretion from BIGC to boost 2Q16 core profit Price Performance (%) Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
0.823
1.583
KT ZMICO vs. consensus Share data
14.2%
5.5%
Reuters / Bloomberg
BJC.BK/BJC TB
Paid‐up Shares (m)
3,185.50
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
146.00/4,191.00
Foreign limit / actual (%)
49.00/9.88
52 week High / Low (Bt)
46.00/26.19
Avg. daily T/O (shares 000) NVDR (%)
2,439.00 1.74
Estimated free float (%)
20.72
Beta
0.62
URL
www.bjc.co.th
CGR
Anti‐corruption
n.a.
Pornsawat Jirajarus Analyst, no 18228 [email protected] 66 (0) 2624‐6257
Profit to accelerate in 2H16 Profit accretion from BIGC should help boost BJC’s earnings significantly from 2Q16 onward. This together with improving profitability from BJC’s existing business, the low interest rate trend and gradual progress on synergies should be earnings catalysts in 2H16‐17E. We retain our view that BJC’s post‐acquisition outlook as ASEAN’s leading integrated retail platform and its prospective PE/EPS growth at 0.6x in 2017 to EPS CAGR of 47% in 17‐18E are attractive. Maintain our Buy call. Expect 2Q16 core net profit of Bt651mn, up 62% YoY We estimate BJC’s 2Q16 net profit at Bt435mn, down 42% YoY due largely to comparing to the abnormally high base from extra gain of Bt343mn (from Danone investment) in 2Q15 and the unrealized Fx loss (est. Bt270mn from hedging contracts) in 2Q16. Excluding extraordinary items, BJC’s 2Q16 core net profit should be Bt651mn, up 62% YoY and 19% QoQ, driven by both improving profit from existing businesses and additional profit from the BIGC consolidation (we estimate a net contribution of around Bt180‐200mn in 2Q16). Improving sales in the packaging business (especially in glass bottles), healthcare products and the international sales of consumer products business should be key areas for profit growth in existing businesses. BIGC’s same‐store sales should contract further to 5‐6% (‐2.9% in 1Q16) due to rising competition and the changing product mix to focus more on profitable items; nevertheless, well‐controlled SG&A expenses should have helped shore up profit slightly YoY. BJC’s 1H16E net profit should be Bt960mn, down 25% YoY (due to extra items), but core net profit would be Bt1.20bn, up 29% YoY and accounting for 32% of our full‐year forecast. Increasing profit from BIGC and huge Fx gain in 3Q16 We expect BJC’s core profit to continue improving, given growing sales from the packaging business, low fuel costs and improving profit from BIGC as the catalysts. BJC has already hedged all Fx exposure and it should realize huge Fx gain (could be as high as Bt800‐900mn) when refinancing all bridge loans in 3Q16. Thus far, the company has paid down approximately 40% of bridge loans with the proceeds from its first RO last month and expects to refinance the remaining debt within August. We maintain our core profit forecast, as we expect improving profit in 2H16, especially from BIGC’s seasonal pickup in earnings in Q4, to keep our forecasts achievable. Financials and Valuation FY Ended 31 Dec Revenues (Bt mn) Net profit (Bt mn) EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) EV/EBITDA (x) PBV (x) Dividend yield (%) ROE (%) Net Gearing (%)
2014 43,423 1,680 1.05 (30.85) 0.60 11.32 2014 39.1 16.0 3.6 1.3 9.4 83.9
2015 42,893 2,792 1.75 66.22 0.84 13.03 2015 20.0 11.3 2.7 2.2 14.4 66.7
2016E 143,730 3,764 0.94 (46.12) 0.47 27.00 2016E 48.4 20.3 1.0 1.2 3.1 75.4
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 186,091 6,646 1.67 76.56 0.83 28.30 2017E 27.4 15.2 1.6 1.8 4.4 128.0
2018E 202,460 8,125 2.04 22.25 1.02 29.68 2018E 22.5 14.3 1.5 2.2 7.0 123.2
Figure 1: Quarterly earnings results preview Profit and Loss (Btmn) FY Ended 31 Dec 2Q15 3Q15 4Q15 Revenue 10,241 10,388 11,771 Gross profit 2,383 2,379 2,530 EBITDA 1,597 1,914 1,580 Interest expense 128 111 122 Other income 469 693 167 Income tax 86 80 125 Forex gain (loss) 33 94 (15) Other extraordinary Items 0 0 0 Gn (Ls) from affiliates 4 49 25 Net profit (loss) 744 825 693 Normalized profit (loss) 401 481 663 Reported EPS (THB) 0.47 0.52 0.44 Gross margin (%) 23.3 22.9 21.5 EBITDA margin (%) 15.6 18.4 13.4 Net margin (%) 7.3 7.9 5.9 Current ratio (x) 1.0 1.1 1.2 Interest coverage (x) 18.5 23.8 12.6 Debt / equity (x) 1.5 1.5 1.2 BVPS (Bt) 12.0 12.5 13.0 ROE (%) 4.4 11.1 10.1
1Q16 2Q16E % YoY % QoQ
1H15
14,717
41,503
305.3
182.0 20,734
3,085
6,879
188.7
123.0
4,913
2,004
4,686
193.4
133.8
273
1,924
high
603.9
520
3,640
676.8
198
382
(27) 0
1H16E % YoY 56,220
2016E % YoY 235.1
39.1
9,964
102.8
24,523
149.7
40.6
2,972
6,690
125.1
16,264
151.5
41.1
260
2,198
745.8
6,016
0.0
36.5
600.4
619
4,160
571.9
12,194
724.6
34.1
341.5
93.1
195
580
197.5
1,076
168.8
53.9
(270)
n.m.
887.3
37
(297)
n.m.
(297)
n.m.
n.m.
0
n.m.
n.m.
0
0
n.m.
0
n.m.
n.m.
59
30
674.2
(49.4)
13
89
574.5
159
82.8
56.0
525
435
(41.6)
(17.2)
1,273
960
(24.6)
3,764
34.8
25.5
549
651
62.2
18.6
930
1,200
28.9
3,764
81.4
31.9
0.33
0.27
(41.6)
(17.2)
0.80
0.60
(24.6)
0.94
(46.1)
63.8
21.0
16.6
23.7
17.7
17.1
13.6
11.3
14.3
11.9
11.3
3.6
1.0
6.1
1.7
2.6
0.2
n.a.
1.0
n.a.
0.3
10.1
12.3
15.3
11.5
2.7
5.0
n.a.
1.5
n.a.
1.0
25.3
n.a.
12.0
n.a.
47.4
3.4
n.a.
4.4
n.a.
2.0
Source: Bloomberg, KT ZMICO Research
Packaging
Consumer product
Healthcare & Technical
600 500 400 300 200 100
1Q16
4Q15
3Q15
2Q15
1Q15
4Q14
3Q14
2Q14
1Q14
4Q13
3Q13
2Q13
1Q13
1Q16
4Q15
3Q15
2Q15
1Q15
4Q14
3Q14
2Q14
1Q14
4Q13
3Q13
2Q13
1Q13
Figure 2: BJC’s quarterly net profit trend Core profit 800 600 400 200 Source: BJC, KT Zmico estimates
Figure 3: BIGC’s net profit forecasts Quarterly
Yearly
5,000
12,000
4,000
10,000 8,000
3,000
6,000 2,000
4,000 1,000
2,000
2018E
2017E
2016E
2015
2014
2013
2012
2011
0
‐
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16E 3Q16E 4Q16E
% YTD
171.1 143,730
Source: BJC, KT Zmico estimates
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 3
Note: KT ZMICO has two major shareholders, Krungthai Bank PLC (KTB) and Seamico Securities PLC (ZMICO). Therefore, prior to making investments in the securities of KTB and ZMICO, investors should consider the risk factors carefully. An executive of KT ZMICO Securities is also a board member of BCP, BTC, CI, CPI, KBS, MAJOR, MK, PACE, PSL, SVH, VNG, ZMICO, SAWAD, TFG. A management member of KT ZMICO Securities is also a board member of BTC and NFC. KT ZMICO is a financial advisor for U, LOXLEY, ZMICO, MAKRO, CPALL, SAFARI, PACE, PLE, TPOLY, M‐CHAI. KT ZMICO is a co‐underwriter of ALT, EKH.
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
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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
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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
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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.
