Siam Global House Buy (17E TP Bt16.80)
Siam Global House
Buy (17E TP Bt16.80)
Company update
Close Bt15.70
Commerce November 14, 2016
Earnings upgrade/Earnings downgrade/Overview unchanged New stores and widening margin the catalysts Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
0.301
0.329
KT ZMICO vs. consensus Share data
‐0.3%
‐2.7%
Reuters / Bloomberg
GLOBAL.BK/GLOBAL TB
Paid‐up Shares (m)
10,714.38
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
26.00/745.00
Foreign limit / actual (%)
40.00/30.44
52 week High / Low (Bt)
2.88/2.06
Avg. daily T/O (shares 000)
44,808.00
NVDR (%)
6.49
Estimated free float (%)
62.94
Beta
0.96
URL
www.globalhouse.co.th
CGR
Anti‐corruption
Level 2 (Declared)
Pornsawat Jirajarus Analyst no. 18228 [email protected] 66 (0) 2624‐6257
New stores and improving profit the catalysts We believe the improving profit trend will continue and new stores will remain the key profit driver for GLOBAL in the coming years. Its dominance in the home improvement market in the provinces and land bank for future expansion remain the attractions, which should make the stock price at 1.4x of PE/EPS growth in 17E look justified in light of its future prospects. We maintain our Buy call. 3Q16 net profit increased 34% YoY GLOBAL reported 3Q16 net profit of Bt284mn, up 34% YoY but down 32% QoQ (seasonal). Excluding extra items (mainly from Fx gain in 3Q15), the 3Q16 core net profit increased 54% YoY. The YoY net profit growth was driven by 1) 15% sales growth, driven largely by eight new stores opening during the past twelve months and 2) a 302 bps increase in the gross margin (to 20.7% in 3Q16). Same‐store sales inched up 0.6% YoY in 3Q16 (vs. ‐1.2% in 2Q16). New stores were opened in Singburi, Samutsongkram and Chiangrai provinces in 3Q16. The improving gross margin resulted from the increasing mix of higher margin products (including house brands). The EBITDA margin increased 180 bps YoY (to 13.6%), a softer pace than the gross margin due to pre‐operating expenses for new stores. The 9M16 net profit was Bt1.15bn, up 67% YoY and accounting for 77% of our full‐year forecast. Change accounting policy back to use cost basis for PPE GLOBAL notified the SET that the company will change its accounting policy for property, plants and equipment from a revaluation basis to a cost basis, starting from the 2017 accounting period onward. This should lower depreciation by around Bt200mn per year, close to the amount it has risen by since the firm changed from a cost to revaluation basis two years ago. GLOBAL reasoned that this will better reflect actual costs and be appropriate for future expansion, although we have significant doubts due to the company’s inconsistency regarding its accounting policy. Improving profit trend to continue in 4Q16‐17E GLOBAL should open three more new stores in Suratthani, Nakhon Si Thammarat and Kanchanaburi provinces in 4Q16, which will raise the number of new stores to eight this year. We expect that same‐store‐sales growth in 4Q16 will remain slightly positive given that most of the new stores this year are in untapped cities, thus not entailing a cannibalization impact. In addition, the low base (SSSG ‐3.5% YoY in 4Q15) and pent‐up demand from frequent rains in 3Q16 should reduce the negative impact from slowing consumption. The improving product mix should also continue to raise the gross margin. We maintain our forecasts. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 15,561 702 0.23 ‐36.1% 0.16 4.71 2014 56.48 23.74 2.76 1.22 5.3% 24.5%
2015 16,864 881 0.25 9.9% 0.18 4.28 2015 45.53 19.17 2.35 1.35 5.0% 25.3%
2016E 19,163 1,492 0.41 61.4% 0.29 4.44
2017E 22,376 1,830 0.50 22.6% 0.35 4.88
2018E 25,378 2,212 0.60 20.9% 0.42 5.41
2016E 36.78 20.23 3.38 1.90 9.4% 27.0%
2017E 30.00 16.92 3.07 2.33 10.7% 21.5%
2018E 24.81 14.09 2.77 2.82 11.8% 10.6%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
Figure 1: Earnings results review Profit and Loss (Btmn) FY Ended 31 Dec Revenue Gross profit EBITDA Interest expense Other income Income tax Forex gain (loss) Other extraordinary Items Gn (Ls) from affiliates Net profit (loss) Core net profit (loss) Reported EPS (THB) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt / equity (x) BVPS (Bt) ROE (%)
3Q15 3,796 670 467 (38) 149 (53) 16 26 (0) 211 185 0.06 17.6 11.8 5.4 2.3 12.4 0.5 4.2 6.0
4Q15 4,118 738 488 (40) 114 (46) (20) (22) 3 189 211 0.05 17.9 11.5 4.5 2.2 12.3 0.5 4.3 6.0
1Q16 5,155 1,008 789 (37) 173 (112) 0 0 3 452 464 0.13 19.5 14.8 8.5 2.1 21.3 0.5 4.4 7.5
2Q16 4,787 993 740 (39) 161 (100) 0 0 7 417 421 0.11 20.7 15.0 8.4 1.2 19.0 0.6 4.5 8.2
3Q16 % YoY % QoQ 4,362 14.9 (8.9) 901 34.6 (9.2) 613 31.2 (17.2) (44) 16.2 12.7 131 (12.1) (18.7) (70) 31.9 (30.1) 0 n.m. n.m. 0 n.m. n.m. (5) n.m. n.m. 284 34.5 (31.8) 284 53.6 (32.6) 0.08 28.1 (31.8) 20.7 13.6 6.3 1.1 14.0 0.6 4.6 8.5
9M15 12,746 2,081 1,485 (105) 433 (173) 16 27 (0) 691 664 0.21 16.3 11.3 5.4 3.0 14.2 0.5 4.2 5.5
9M16 % YoY 14,304 12.2 2,902 39.5 2,141 44.1 (120) 14.3 466 7.4 (282) 63.1 0 n.m. 0 n.m. 5 n.m. 1,153 66.7 1,170 76.2 0.32 54.9 20.3 14.5 8.1 1.1 17.9 0.6 4.6 8.5
2016E % YoY % YTD 19,163 8.4 74.6 3,778 19.7 76.8 2,780 16.5 77.0 (155) 8.6 77.5 650 9.8 71.7 (368) 24.5 76.5 0 n.m. n.m. 0 n.m. n.m. 0 n.m. n.m. 1,492 25.6 77.2 1,492 25.6 78.4 0.41 9.9 78.8 19.7 14.0 7.5 1.9 18.0 0.6 4.4 9.6
Source: GLOBAL, KT ZMICO Research
Figure 2: Sales growth
Figure 3: Store expansion
Same‐store sales growth
Sales growth
50.0% 40.0%
Stores
Number of stpres
New stores
100
80
30.0% 60
20.0% 38
40
10.0%
56
51
46 32
27 20
1Q16
1Q15
1Q14
‐10.0%
1Q13
1Q12
0.0%
20
13
11
8 1
3
2
7
7
5
6
8
5
5
0
‐20.0%
2009 2010 2011 2012 2013 2014 2015 2016F 2017F 2018F
Source: Company data, 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, TPOLY, M‐CHAI, TFD, SUTHA, CI.
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
KT ZMICO Securities Company Limited Head Office
WWW.KTZMICO.COM
8th, 15th‐17th,19th, 21st Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok, Thailand 10500 Telephone: (66‐2) 695‐5000 Fax: (66‐2) 695‐5173 KT ZMICO Connect 662 695 5555
Central World Branch
Amarin Branch
22nd Floor, Amarin Building, 496‐502 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 018‐6200 Fax: (66‐2) 018‐6298, (66‐2) 018‐6299
8th Floor, Ton Son Tower, 900 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 626‐6000 Fax: (66‐2) 626‐6111
Phaholyothin Branch
Sindhorn Branch
Viphavadee Branch
2nd Floor, Sindhorn Tower 1, 130‐132 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 627‐3550 Fax: (66‐2) 627‐3582, 627‐3600
G Floor, Lao Peng Nguan 1 Bldg., 333 Soi Cheypuand, Viphavadee‐Rangsit Road, Ladyao, Jatujak, Bangkok 10900 Telephone: (66‐2) 013‐8600 Fax: (66‐2) 618‐8569
BangKhae Branch
Chiang Mai Branch
Pak Chong Branch
999/9 The Offices at Central World, 16th Fl., Rama 1 Rd, Pathumwan, Bangkok 10330 Telephone: (66‐2) 264‐5888 Fax: (66‐2) 264 5899
1291/1, Shinnawatra Tower II, 3rd Floor, Phaholyothin Road, Phayathai, Bangkok 10400 Telephone: (66‐2) 686‐1500 Fax: (66‐2) 686‐1666
Ploenchit Branch
518 The Mall Group Building Bangkhae Branch, 6th Floor, Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Telephone: (66‐2) 454‐9979 Fax: (66‐2) 454‐9970
422/49 Changklan Road, Changklan Subdistrict, Amphoe Meuang, Chiang Mai 50100 Telephone: (053) 270‐072 Fax: (053) 272‐618
173 175, Mittapap Road, Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Telephone: (044) 279‐511 Fax: (044) 279‐574
Korat Branch
Khon Kaen Branch
Chonburi Branch
624/9 Changphuek Road, T.Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171
5th Floor, Charoen Thani Princess Hotel, 260 Srichan Road, T. Naimuang, A. Muang, Khon Kaen 40000 Telephone: (043) 389‐171‐193 Fax: (043) 389‐209
4th Floor, Forum Plaza Bldg., 870/52 Sukhumvit Road, T. Bangplasoy, A. Muang, Cholburi 20000 Telephone: (038) 287‐635 Fax: (038) 287‐637
Pattaya Branch
Chachoengsao Branch
Hat Yai Branch
Easy Point 2, 392/65 Moo.9, T.Nong Prue, A. Bang Lamung, Chonburi 20260 Telephone: (038) 420‐965 Fax: (038) 420‐968
108/34‐36 Mahajakkrapad Road, T.Namuang, A.Muang, Chachoengsao 24000 Telephone: (038) 813‐088 Fax: (038) 813‐099
200/301, 200/303 JULDIS HATYAI PLAZA Floor 3 , Niphat‐Uthit 3 Rd, Hatyai Songkhla 90110 Telephone: (074) 355530‐3 Fax: (074) 355534
Phuket Branch
22/61‐63, Luang Por Wat Chalong Road, Talat Yai, Mueang Phuket, Phuket 83000 Telephone: (076) 222‐811, (076) 222‐683 Fax: (076) 222‐861
Phitsanulok Branch
227/171 Borom Trilokkanat Road, Muang, Phitsanulok 65000 Telephone: 055‐219‐255 to 8 Fax: 055‐219‐259
Nakhon Pathom
Cyber Branch Ayutthaya
Cyber Branch @ North Nana
Cyber Branch Chiangrai
KrungThai Bank, Rojana Branch 253 Moo 5, Rojana Road, Phai Ling, Phra Nakhon Si Ayutthaya, Phra Nakhonsi Ayutthaya, 13000 Telephone: 035‐242‐477 Fax: 035‐242‐476
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd., Klong Toey Nua Subdistrict , Wattana District , Bangkok 10110 Telephone: 083‐490‐2871
River Hotel (Building 3rd),1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
KrungThai Bank, Hayaek Phokhun Mengrai Branch 116/19 Moo 19, Highway 110 Road, Rop Wiang, Mueang Chiang Rai, Chiang Rai, 57000 Telephone: 053‐715‐067 Fax: 053‐715‐068
Buy (17E TP Bt16.80)
Company update
Close Bt15.70
Commerce November 14, 2016
Earnings upgrade/Earnings downgrade/Overview unchanged New stores and widening margin the catalysts Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
0.301
0.329
KT ZMICO vs. consensus Share data
‐0.3%
‐2.7%
Reuters / Bloomberg
GLOBAL.BK/GLOBAL TB
Paid‐up Shares (m)
10,714.38
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
26.00/745.00
Foreign limit / actual (%)
40.00/30.44
52 week High / Low (Bt)
2.88/2.06
Avg. daily T/O (shares 000)
44,808.00
NVDR (%)
6.49
Estimated free float (%)
62.94
Beta
0.96
URL
www.globalhouse.co.th
CGR
Anti‐corruption
Level 2 (Declared)
Pornsawat Jirajarus Analyst no. 18228 [email protected] 66 (0) 2624‐6257
New stores and improving profit the catalysts We believe the improving profit trend will continue and new stores will remain the key profit driver for GLOBAL in the coming years. Its dominance in the home improvement market in the provinces and land bank for future expansion remain the attractions, which should make the stock price at 1.4x of PE/EPS growth in 17E look justified in light of its future prospects. We maintain our Buy call. 3Q16 net profit increased 34% YoY GLOBAL reported 3Q16 net profit of Bt284mn, up 34% YoY but down 32% QoQ (seasonal). Excluding extra items (mainly from Fx gain in 3Q15), the 3Q16 core net profit increased 54% YoY. The YoY net profit growth was driven by 1) 15% sales growth, driven largely by eight new stores opening during the past twelve months and 2) a 302 bps increase in the gross margin (to 20.7% in 3Q16). Same‐store sales inched up 0.6% YoY in 3Q16 (vs. ‐1.2% in 2Q16). New stores were opened in Singburi, Samutsongkram and Chiangrai provinces in 3Q16. The improving gross margin resulted from the increasing mix of higher margin products (including house brands). The EBITDA margin increased 180 bps YoY (to 13.6%), a softer pace than the gross margin due to pre‐operating expenses for new stores. The 9M16 net profit was Bt1.15bn, up 67% YoY and accounting for 77% of our full‐year forecast. Change accounting policy back to use cost basis for PPE GLOBAL notified the SET that the company will change its accounting policy for property, plants and equipment from a revaluation basis to a cost basis, starting from the 2017 accounting period onward. This should lower depreciation by around Bt200mn per year, close to the amount it has risen by since the firm changed from a cost to revaluation basis two years ago. GLOBAL reasoned that this will better reflect actual costs and be appropriate for future expansion, although we have significant doubts due to the company’s inconsistency regarding its accounting policy. Improving profit trend to continue in 4Q16‐17E GLOBAL should open three more new stores in Suratthani, Nakhon Si Thammarat and Kanchanaburi provinces in 4Q16, which will raise the number of new stores to eight this year. We expect that same‐store‐sales growth in 4Q16 will remain slightly positive given that most of the new stores this year are in untapped cities, thus not entailing a cannibalization impact. In addition, the low base (SSSG ‐3.5% YoY in 4Q15) and pent‐up demand from frequent rains in 3Q16 should reduce the negative impact from slowing consumption. The improving product mix should also continue to raise the gross margin. We maintain our forecasts. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 15,561 702 0.23 ‐36.1% 0.16 4.71 2014 56.48 23.74 2.76 1.22 5.3% 24.5%
2015 16,864 881 0.25 9.9% 0.18 4.28 2015 45.53 19.17 2.35 1.35 5.0% 25.3%
2016E 19,163 1,492 0.41 61.4% 0.29 4.44
2017E 22,376 1,830 0.50 22.6% 0.35 4.88
2018E 25,378 2,212 0.60 20.9% 0.42 5.41
2016E 36.78 20.23 3.38 1.90 9.4% 27.0%
2017E 30.00 16.92 3.07 2.33 10.7% 21.5%
2018E 24.81 14.09 2.77 2.82 11.8% 10.6%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
Figure 1: Earnings results review Profit and Loss (Btmn) FY Ended 31 Dec Revenue Gross profit EBITDA Interest expense Other income Income tax Forex gain (loss) Other extraordinary Items Gn (Ls) from affiliates Net profit (loss) Core net profit (loss) Reported EPS (THB) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt / equity (x) BVPS (Bt) ROE (%)
3Q15 3,796 670 467 (38) 149 (53) 16 26 (0) 211 185 0.06 17.6 11.8 5.4 2.3 12.4 0.5 4.2 6.0
4Q15 4,118 738 488 (40) 114 (46) (20) (22) 3 189 211 0.05 17.9 11.5 4.5 2.2 12.3 0.5 4.3 6.0
1Q16 5,155 1,008 789 (37) 173 (112) 0 0 3 452 464 0.13 19.5 14.8 8.5 2.1 21.3 0.5 4.4 7.5
2Q16 4,787 993 740 (39) 161 (100) 0 0 7 417 421 0.11 20.7 15.0 8.4 1.2 19.0 0.6 4.5 8.2
3Q16 % YoY % QoQ 4,362 14.9 (8.9) 901 34.6 (9.2) 613 31.2 (17.2) (44) 16.2 12.7 131 (12.1) (18.7) (70) 31.9 (30.1) 0 n.m. n.m. 0 n.m. n.m. (5) n.m. n.m. 284 34.5 (31.8) 284 53.6 (32.6) 0.08 28.1 (31.8) 20.7 13.6 6.3 1.1 14.0 0.6 4.6 8.5
9M15 12,746 2,081 1,485 (105) 433 (173) 16 27 (0) 691 664 0.21 16.3 11.3 5.4 3.0 14.2 0.5 4.2 5.5
9M16 % YoY 14,304 12.2 2,902 39.5 2,141 44.1 (120) 14.3 466 7.4 (282) 63.1 0 n.m. 0 n.m. 5 n.m. 1,153 66.7 1,170 76.2 0.32 54.9 20.3 14.5 8.1 1.1 17.9 0.6 4.6 8.5
2016E % YoY % YTD 19,163 8.4 74.6 3,778 19.7 76.8 2,780 16.5 77.0 (155) 8.6 77.5 650 9.8 71.7 (368) 24.5 76.5 0 n.m. n.m. 0 n.m. n.m. 0 n.m. n.m. 1,492 25.6 77.2 1,492 25.6 78.4 0.41 9.9 78.8 19.7 14.0 7.5 1.9 18.0 0.6 4.4 9.6
Source: GLOBAL, KT ZMICO Research
Figure 2: Sales growth
Figure 3: Store expansion
Same‐store sales growth
Sales growth
50.0% 40.0%
Stores
Number of stpres
New stores
100
80
30.0% 60
20.0% 38
40
10.0%
56
51
46 32
27 20
1Q16
1Q15
1Q14
‐10.0%
1Q13
1Q12
0.0%
20
13
11
8 1
3
2
7
7
5
6
8
5
5
0
‐20.0%
2009 2010 2011 2012 2013 2014 2015 2016F 2017F 2018F
Source: Company data, 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, TPOLY, M‐CHAI, TFD, SUTHA, CI.
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
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
