Lack of near-term catalysts
Thaicom Buy (2017E TP Bt33.00)
Company Update
Close Bt20.00
ICT
Earnings upgrade/Earnings downgrade/Overview unchanged
October 6, 2016
Lack of near‐term catalysts Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
1.973
2.066
KT ZMICO vs. consensus Share data
2.9%
‐3.2%
Reuters / Bloomberg
THCOM.BK/THCOM TB
Paid‐up Shares (m)
1,095.99
Par (Bt)
5.00
Market cap (Bt bn / US$ m)
22.00/636.00
Foreign limit / actual (%)
40.00/17.30
52 week High / Low (Bt)
32.75/19.70
Avg. daily T/O (shares 000) NVDR (%)
5,167.00 6.80
Estimated free float (%)
51.25
Beta
0.74
URL CGR
www.thaicom.net
Anti‐corruption
Level 4 (Certified)
Waraporn Wiboonkanarak Analyst, no. 2482 [email protected] 66 (0) 2624‐6273
Overhanging issues cap share price performance THCOM’s core earnings continue on a downtrend given the recent orders lost domestically while costs have accelerated on the satellite launch. We roll our target price to 2017E at Bt33 (DCF) with a BUY rating maintained, but its share price should continue underperforming until the overhanging issues, particularly on regulatory control, are clarified. Slow progress on new orders THCOM’s loss of key clients from the satellite TV business (GMMB and CTH) has been partially offset by new orders from IPM and Myanmar’s Forever Group. However, the capacity ramp up of Thaicom8 dragged the utilization rate of its conventional satellites down to 59% from 75% the previous quarter. In addition to putting more effort toward retaining its client base, THCOM is expanding its presence in overseas markets, particularly the high growth Myanmar and Indian markets, to fill up the remaining capacities. For the broadband IPSTAR satellite, the bulk sales opportunities in focus markets remain intact and there should hopefully be some progress by the end of the year. THCOM expects the demand from telecom carriers to be sufficient to replace the expiration of ToT’s NSO contract in 2017. Overhang from regulatory challenges In addition to customer churn, THCOM also faces uncertainties with respect to regulatory oversight of the satellite industry. The government previously considered returning THCOM’s license‐based satellites including Thaicom7 and 8 to concession schemes. This uncertainty will overshadow the outlook on new satellite launches. We, however, see a favorable response from the Deputy PM who is also serving as acting Minister of Digital Economy and Society (DE). THCOM hopes that all of the overhanging issues will be resolved by the current government. 3Q16E earnings to weaken We expect THCOM’s core earnings to retreat by 46%YoY and 39%QoQ to Bt363mn in 3Q16E due to the twin impacts of lower satellite revenue and elevating costs. Its revenue should fall by 11%YoY and 4%QoQ to Bt2.8bn due to orders lost from CTH, which stopped airing programs through THCOM in August, while its D&A charges will rise by 15%QoQ from the launch of Thaicom8. As a result, its GPM is expected to fall to 36% from 42% in 3Q15. Its shared profit from joint ventures should slip by 34%QoQ due to seasonality, but reverse from a loss last year, which mainly stemmed from exchange loss. If including the hefty Fx loss booked last year, its NP would jump 53%YoY to Bt406mn. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm EPS (Bt) Norm EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec Norm. PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 12,065 1,601 1.46 1.71 24.2% 0.65 15.77 2014 23.79 8.67 2.20 1.9% 11.5% 38.2%
2015 12,454 2,122 1.94 2.11 23.5% 0.65 16.53 2015 14.98 6.66 1.75 2.2% 13.3% 37.0%
2016E 12,177 2,227 2.03 2.03 ‐3.5% 0.81 17.92 2016E 10.04 5.59 1.14 4.0% 12.1% 51.2%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 13,057 2,188 2.00 2.00 ‐1.7% 0.80 19.11 2017E 10.22 4.63 1.07 3.9% 11.0% 31.8%
2018E 13,308 2,258 2.06 2.06 3.2% 0.82 20.38 2018E 9.90 3.83 1.00 4.0% 10.6% 8.6%
Figure 1: Earnings preview Profit and Loss Statement (Btmn) Fiscal Year‐Ended Dec. Revenue Gross Profit EBITDA Share of profit from affiliate Interest Expense Other income Net profit (loss) Core profit (loss) Reported EPS (THB) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt to equity (x) BVPS (Bt) ROE (%)
3Q15 3,147 1,323 1,518 (13) 86 37 265 674 0.24 42.0% 48.2% 8.4% 1.56 8.80 0.86 15.65 3.9%
2Q16 2,902 1,168 1,405 62 73 43 591 592 0.54 40.3% 48.4% 20.4% 1.91 10.23 0.85 16.60 3.2%
3Q16E 2,799 995 1,295 41 86 41 406 363 0.37 35.6% 46.3% 14.5% 0.79 5.86 0.89 17.02 1.9%
%QoQ ‐3.5% ‐14.8% ‐7.8% pm 17.9% ‐5.9% ‐31.3% ‐38.7% ‐31.3% ‐4.7% ‐2.2% ‐5.9%
2.5%
%YoY ‐11.1% ‐24.8% ‐14.7% ‐409.3% 0.0% 9.1% 53.0% ‐46.1% 53.0% ‐6.5% ‐2.0% 6.1%
9M16E 8,911 3,579 4,218 144 228 130 1,698 1,538 1.55 40.2% 47.3% 19.1% 0.79 9.13 0.89 8.7% 17.02 1.9%
%YoY ‐2.7% ‐3.8% ‐0.8% 30.9% ‐8.7% 20.4% 23.2% ‐6.2% 23.2%
2016E 12,177 4,948 5,795 223 289 146 2,227 2,148 2.03 40.6% 47.6% 18.3% 1.39 10.13 0.81 8.7% 17.92 12.1%
YTD %YoY (% of 2016E) ‐2.2% 73.2% ‐3.0% 72.3% 0.3% 72.8% 14.9% 64.9% ‐5.6% 78.9% ‐5.0% 89.2% 4.9% 76.2% ‐9.8% 71.6% 4.9% 76.2% ‐0.3% 1.2% 1.2%
8.4%
Source: THCOM and KT Zmico Research Figure 2: PER and EV/EBITDA band 12.00
25.00
+2S.D.
PER (x)
EV/EBITDA (x)
10.00
20.00
+1S.D.
15.00
8.00 +1S.D.
Average
6.00
‐0.5S.D. 10.00
Average
4.00 ‐1S.D.
‐1S.D.
5.00
2.00
Jan‐10 May‐10 Sep‐10 Jan‐11 May‐11 Sep‐11 Jan‐12 May‐12 Sep‐12 Jan‐13 May‐13 Sep‐13 Jan‐14 May‐14 Sep‐14 Jan‐15 May‐15 Sep‐15 Jan‐16 May‐16 Sep‐16
Jan‐06 May‐06 Sep‐06 Jan‐07 May‐07 Sep‐07 Jan‐08 May‐08 Sep‐08 Jan‐09 May‐09 Sep‐09 Jan‐10 May‐10 Sep‐10 Jan‐11 May‐11 Sep‐11 Jan‐12 May‐12 Sep‐12 Jan‐13 May‐13 Sep‐13 Jan‐14 May‐14 Sep‐14 Jan‐15 May‐15 Sep‐15 Jan‐16 May‐16 Sep‐16
‐
‐
Source: THCOM and KT Zmico 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, PACE, TPOLY, M‐CHAI, TFD, SUTHA, EARTH. KT ZMICO is a co‐underwriter of RJH, BCPG, ITEL, SQ, ALLA.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD) Excellent (scores: 90 ‐ 100) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
Anti‐corruption Progress Indicator Source: Sec, Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC)
Level 1 (Committed) : Organization’s statement or board's resolution to work against corruption and to be in compliance with all relevant laws. Level 2 (Declared) : Public declaration statement to participate in Thailand's private sector Collective Action Coalition Against Corruption (CAC) or equivalent initiatives Level 3 (Established) : Public out preventive measures, risk assessment, communication and training for all employees, including consistent monitoring and review processes Level 4 (Certified) : Audit engagement by audit committee or auditors approved by the office of SEC, and receiving certification or assurance by independent external assurance providers (CAC etc.) Level 5 (Extended) : Extension of the anti‐corruption policy to business partners in the supply chain, and disclosure of any current investigations, prosecutions or closed cases Insufficient or not clearly defined policy Data not available / no policy
DISCLAIMER This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS
SECTOR RECOMMENDATIONS
BUY: Expecting positive total returns of 15% or more OVERWEIGHT: The industry, as defined by the analyst's over the next 12 months coverage universe, is expected to outperform the relevant OUTPERFORM: Expecting total returns between ‐10% primary market index by at least 10% over the next 12 months. to +15%; returns expected to exceed market returns NEUTRAL: The industry, as defined by the analyst's coverage over a six‐month period due to specific catalysts universe, is expected to perform in line with the relevant UNDERPERFORM: Expecting total returns between primary market index over the next 12 months. ‐10% to +15%; returns expected to be below market UNDERWEIGHT: The industry, as defined by the analyst's returns over a six‐month period due to specific coverage universe, is expected to underperform the relevant catalysts primary market index by 10% over the next 12 months. SELL: Expecting negative total returns of 10% or more over the next 12 months
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 3
th
th
th
th
KT•ZMICO Securities Company Limited
st
8 , 15 -17 , 19 , 21 Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok 10500 Telephone: (66-2) 695-5000
Phaholyothin Branch
rd
Fax. (66-2) 631-1709
Ploenchit Branch
th
nd
2
Sindhorn Branch
3 Floor, Shinnawatra Tower II,
8 Floor, Ton Son Tower,
1291/1 Phaholyothin Road,
900 Ploenchit Road, Lumpini,
Floor, Sindhorn Tower 1, 130-132 Wireless Road, Lumpini,
Phayathai, Bangkok 10400
Pathumwan, Bangkok 10330
Pathumwan, Bangkok 10330
Telephone: (66-2) 686-1500
Telephone: (66-2) 626-6000
Telephone: (66-2) 627-3550
Fax. (66-2) 686-1666
Fax. (66-2) 626-6111
Fax. (66-2) 627-3582, 627-3600
Nakhon Pathom Branch 1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
Chachoengsao Branch
Viphavadee Branch
Phitsanulok Branch
G Floor, Lao Peng Nguan 1 Bldg.,
Krung Thai Bank, Singhawat Branch
333 Soi Cheypuand, Viphavadee-Rangsit Road,
114 Singhawat Road,
Ladyao, Jatujak, Bangkok 10900
Muang, Phitsanulok 65000
Telephone: (66-2) 618-8500
Telephone: 083-490-2873
Fax. (66-2) 618-8569
th
Chonburi Branch
Pattaya Branch
108/34-36 Mahajakkrapad Road,
4 Floor, Forum Plaza Bldg.,
382/6-8 Moo 9, T. NongPrue,
T.Namuang, A.Muang,
870/52 Sukhumvit Road, T. Bangplasoy,
A. Banglamung, Cholburi 20260
Chachoengsao 24000
A. Muang, Cholburi 20000
Telephone: (038) 362-420-9
Telephone: (038) 813-088
Telephone: (038) 287-635
Fax. (038) 362-430
Fax. (038) 813-099
Fax. (038) 287-637
Khon Kaen Branch
5th Floor, Charoen Thani Princess Hotel,
Hat Yai Branch
Sriworajak Building Branch
200/301 Juldis Hatyai Plaza Floor 3,
1st – 2nd Floor, Sriworajak Building, 222
260 Srichan Road, T. Naimuang,
Niphat-Uthit 3 Rd,
Luang Road, Pomprab,
A. Muang, Khon Kaen 40000
Hatyai Songkhla 90110
Bankgok 10100
Telephone: (043) 389-171-193
Telephone: (074) 355-530-3
Telephone: (02) 689-3100
Fax. (043) 389-209
Fax: (074) 355-534
Fax. (02) 689-3199
Central World Branch
Chiang Mai Branch
Phuket Branch
999/9 The Offices at Central World,
422/49 Changklan Road, Changklan
22/61-63, Luang Por Wat Chalong Road,
16th Fl., Rama 1 Rd, Pathumwan,
Subdistrict, Amphoe Meuang,
Talat Yai, Mueang Phuket,
Bangkok 10330
Chiang Mai 50100
Phuket 83000
Telephone: (66-2) 673-5000,
Telephone: (053) 270-072
Tel. (076) 222-811,(076) 222-683
(66-2) 264-5888 Fax. (66-2) 264-5899
Fax: (053) 272-618
Fax. (076) 222-861
Pak Chong Branch
Cyber Branch @ North Nana
173 175, Mittapap Road,
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd.,Klong Toey Nua Subdistrict , Wattana District, Bangkok 10110 Telephone: 083-490-2871
Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Tel. (044) 279-511 Fax. (044) 279-574
Nakhon Ratchasima Branch
Bangkhae Branch
6th Floor The Mall Group Building Bangkhae 275 Moo 1 Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Tel. (66-2) 454-9979 Fax. (66-2) 454-9970
624/9 Changphuek Road, . Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171 Information herein was obtained from sources believed to be reliable, but its completeness and accuracy are not guaranteed. All opinions expressed constitute our views on that date and are not intended as an offer or solicitation to sell or buy any securities. Investors should exercise care when making a decision to invest in securities. No one may modify or distribute any part of this report unless written permission is first received from Seamico Securities Plc. If any modifications are made, quotes or references taken from the report and the report date must be clearly mentioned and must not cause misunderstanding or damage to the company.
Company Update
Close Bt20.00
ICT
Earnings upgrade/Earnings downgrade/Overview unchanged
October 6, 2016
Lack of near‐term catalysts Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
1.973
2.066
KT ZMICO vs. consensus Share data
2.9%
‐3.2%
Reuters / Bloomberg
THCOM.BK/THCOM TB
Paid‐up Shares (m)
1,095.99
Par (Bt)
5.00
Market cap (Bt bn / US$ m)
22.00/636.00
Foreign limit / actual (%)
40.00/17.30
52 week High / Low (Bt)
32.75/19.70
Avg. daily T/O (shares 000) NVDR (%)
5,167.00 6.80
Estimated free float (%)
51.25
Beta
0.74
URL CGR
www.thaicom.net
Anti‐corruption
Level 4 (Certified)
Waraporn Wiboonkanarak Analyst, no. 2482 [email protected] 66 (0) 2624‐6273
Overhanging issues cap share price performance THCOM’s core earnings continue on a downtrend given the recent orders lost domestically while costs have accelerated on the satellite launch. We roll our target price to 2017E at Bt33 (DCF) with a BUY rating maintained, but its share price should continue underperforming until the overhanging issues, particularly on regulatory control, are clarified. Slow progress on new orders THCOM’s loss of key clients from the satellite TV business (GMMB and CTH) has been partially offset by new orders from IPM and Myanmar’s Forever Group. However, the capacity ramp up of Thaicom8 dragged the utilization rate of its conventional satellites down to 59% from 75% the previous quarter. In addition to putting more effort toward retaining its client base, THCOM is expanding its presence in overseas markets, particularly the high growth Myanmar and Indian markets, to fill up the remaining capacities. For the broadband IPSTAR satellite, the bulk sales opportunities in focus markets remain intact and there should hopefully be some progress by the end of the year. THCOM expects the demand from telecom carriers to be sufficient to replace the expiration of ToT’s NSO contract in 2017. Overhang from regulatory challenges In addition to customer churn, THCOM also faces uncertainties with respect to regulatory oversight of the satellite industry. The government previously considered returning THCOM’s license‐based satellites including Thaicom7 and 8 to concession schemes. This uncertainty will overshadow the outlook on new satellite launches. We, however, see a favorable response from the Deputy PM who is also serving as acting Minister of Digital Economy and Society (DE). THCOM hopes that all of the overhanging issues will be resolved by the current government. 3Q16E earnings to weaken We expect THCOM’s core earnings to retreat by 46%YoY and 39%QoQ to Bt363mn in 3Q16E due to the twin impacts of lower satellite revenue and elevating costs. Its revenue should fall by 11%YoY and 4%QoQ to Bt2.8bn due to orders lost from CTH, which stopped airing programs through THCOM in August, while its D&A charges will rise by 15%QoQ from the launch of Thaicom8. As a result, its GPM is expected to fall to 36% from 42% in 3Q15. Its shared profit from joint ventures should slip by 34%QoQ due to seasonality, but reverse from a loss last year, which mainly stemmed from exchange loss. If including the hefty Fx loss booked last year, its NP would jump 53%YoY to Bt406mn. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm EPS (Bt) Norm EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec Norm. PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 12,065 1,601 1.46 1.71 24.2% 0.65 15.77 2014 23.79 8.67 2.20 1.9% 11.5% 38.2%
2015 12,454 2,122 1.94 2.11 23.5% 0.65 16.53 2015 14.98 6.66 1.75 2.2% 13.3% 37.0%
2016E 12,177 2,227 2.03 2.03 ‐3.5% 0.81 17.92 2016E 10.04 5.59 1.14 4.0% 12.1% 51.2%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 13,057 2,188 2.00 2.00 ‐1.7% 0.80 19.11 2017E 10.22 4.63 1.07 3.9% 11.0% 31.8%
2018E 13,308 2,258 2.06 2.06 3.2% 0.82 20.38 2018E 9.90 3.83 1.00 4.0% 10.6% 8.6%
Figure 1: Earnings preview Profit and Loss Statement (Btmn) Fiscal Year‐Ended Dec. Revenue Gross Profit EBITDA Share of profit from affiliate Interest Expense Other income Net profit (loss) Core profit (loss) Reported EPS (THB) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt to equity (x) BVPS (Bt) ROE (%)
3Q15 3,147 1,323 1,518 (13) 86 37 265 674 0.24 42.0% 48.2% 8.4% 1.56 8.80 0.86 15.65 3.9%
2Q16 2,902 1,168 1,405 62 73 43 591 592 0.54 40.3% 48.4% 20.4% 1.91 10.23 0.85 16.60 3.2%
3Q16E 2,799 995 1,295 41 86 41 406 363 0.37 35.6% 46.3% 14.5% 0.79 5.86 0.89 17.02 1.9%
%QoQ ‐3.5% ‐14.8% ‐7.8% pm 17.9% ‐5.9% ‐31.3% ‐38.7% ‐31.3% ‐4.7% ‐2.2% ‐5.9%
2.5%
%YoY ‐11.1% ‐24.8% ‐14.7% ‐409.3% 0.0% 9.1% 53.0% ‐46.1% 53.0% ‐6.5% ‐2.0% 6.1%
9M16E 8,911 3,579 4,218 144 228 130 1,698 1,538 1.55 40.2% 47.3% 19.1% 0.79 9.13 0.89 8.7% 17.02 1.9%
%YoY ‐2.7% ‐3.8% ‐0.8% 30.9% ‐8.7% 20.4% 23.2% ‐6.2% 23.2%
2016E 12,177 4,948 5,795 223 289 146 2,227 2,148 2.03 40.6% 47.6% 18.3% 1.39 10.13 0.81 8.7% 17.92 12.1%
YTD %YoY (% of 2016E) ‐2.2% 73.2% ‐3.0% 72.3% 0.3% 72.8% 14.9% 64.9% ‐5.6% 78.9% ‐5.0% 89.2% 4.9% 76.2% ‐9.8% 71.6% 4.9% 76.2% ‐0.3% 1.2% 1.2%
8.4%
Source: THCOM and KT Zmico Research Figure 2: PER and EV/EBITDA band 12.00
25.00
+2S.D.
PER (x)
EV/EBITDA (x)
10.00
20.00
+1S.D.
15.00
8.00 +1S.D.
Average
6.00
‐0.5S.D. 10.00
Average
4.00 ‐1S.D.
‐1S.D.
5.00
2.00
Jan‐10 May‐10 Sep‐10 Jan‐11 May‐11 Sep‐11 Jan‐12 May‐12 Sep‐12 Jan‐13 May‐13 Sep‐13 Jan‐14 May‐14 Sep‐14 Jan‐15 May‐15 Sep‐15 Jan‐16 May‐16 Sep‐16
Jan‐06 May‐06 Sep‐06 Jan‐07 May‐07 Sep‐07 Jan‐08 May‐08 Sep‐08 Jan‐09 May‐09 Sep‐09 Jan‐10 May‐10 Sep‐10 Jan‐11 May‐11 Sep‐11 Jan‐12 May‐12 Sep‐12 Jan‐13 May‐13 Sep‐13 Jan‐14 May‐14 Sep‐14 Jan‐15 May‐15 Sep‐15 Jan‐16 May‐16 Sep‐16
‐
‐
Source: THCOM and KT Zmico 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, PACE, TPOLY, M‐CHAI, TFD, SUTHA, EARTH. KT ZMICO is a co‐underwriter of RJH, BCPG, ITEL, SQ, ALLA.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD) Excellent (scores: 90 ‐ 100) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
Anti‐corruption Progress Indicator Source: Sec, Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC)
Level 1 (Committed) : Organization’s statement or board's resolution to work against corruption and to be in compliance with all relevant laws. Level 2 (Declared) : Public declaration statement to participate in Thailand's private sector Collective Action Coalition Against Corruption (CAC) or equivalent initiatives Level 3 (Established) : Public out preventive measures, risk assessment, communication and training for all employees, including consistent monitoring and review processes Level 4 (Certified) : Audit engagement by audit committee or auditors approved by the office of SEC, and receiving certification or assurance by independent external assurance providers (CAC etc.) Level 5 (Extended) : Extension of the anti‐corruption policy to business partners in the supply chain, and disclosure of any current investigations, prosecutions or closed cases Insufficient or not clearly defined policy Data not available / no policy
DISCLAIMER This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS
SECTOR RECOMMENDATIONS
BUY: Expecting positive total returns of 15% or more OVERWEIGHT: The industry, as defined by the analyst's over the next 12 months coverage universe, is expected to outperform the relevant OUTPERFORM: Expecting total returns between ‐10% primary market index by at least 10% over the next 12 months. to +15%; returns expected to exceed market returns NEUTRAL: The industry, as defined by the analyst's coverage over a six‐month period due to specific catalysts universe, is expected to perform in line with the relevant UNDERPERFORM: Expecting total returns between primary market index over the next 12 months. ‐10% to +15%; returns expected to be below market UNDERWEIGHT: The industry, as defined by the analyst's returns over a six‐month period due to specific coverage universe, is expected to underperform the relevant catalysts primary market index by 10% over the next 12 months. SELL: Expecting negative total returns of 10% or more over the next 12 months
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 3
th
th
th
th
KT•ZMICO Securities Company Limited
st
8 , 15 -17 , 19 , 21 Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok 10500 Telephone: (66-2) 695-5000
Phaholyothin Branch
rd
Fax. (66-2) 631-1709
Ploenchit Branch
th
nd
2
Sindhorn Branch
3 Floor, Shinnawatra Tower II,
8 Floor, Ton Son Tower,
1291/1 Phaholyothin Road,
900 Ploenchit Road, Lumpini,
Floor, Sindhorn Tower 1, 130-132 Wireless Road, Lumpini,
Phayathai, Bangkok 10400
Pathumwan, Bangkok 10330
Pathumwan, Bangkok 10330
Telephone: (66-2) 686-1500
Telephone: (66-2) 626-6000
Telephone: (66-2) 627-3550
Fax. (66-2) 686-1666
Fax. (66-2) 626-6111
Fax. (66-2) 627-3582, 627-3600
Nakhon Pathom Branch 1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
Chachoengsao Branch
Viphavadee Branch
Phitsanulok Branch
G Floor, Lao Peng Nguan 1 Bldg.,
Krung Thai Bank, Singhawat Branch
333 Soi Cheypuand, Viphavadee-Rangsit Road,
114 Singhawat Road,
Ladyao, Jatujak, Bangkok 10900
Muang, Phitsanulok 65000
Telephone: (66-2) 618-8500
Telephone: 083-490-2873
Fax. (66-2) 618-8569
th
Chonburi Branch
Pattaya Branch
108/34-36 Mahajakkrapad Road,
4 Floor, Forum Plaza Bldg.,
382/6-8 Moo 9, T. NongPrue,
T.Namuang, A.Muang,
870/52 Sukhumvit Road, T. Bangplasoy,
A. Banglamung, Cholburi 20260
Chachoengsao 24000
A. Muang, Cholburi 20000
Telephone: (038) 362-420-9
Telephone: (038) 813-088
Telephone: (038) 287-635
Fax. (038) 362-430
Fax. (038) 813-099
Fax. (038) 287-637
Khon Kaen Branch
5th Floor, Charoen Thani Princess Hotel,
Hat Yai Branch
Sriworajak Building Branch
200/301 Juldis Hatyai Plaza Floor 3,
1st – 2nd Floor, Sriworajak Building, 222
260 Srichan Road, T. Naimuang,
Niphat-Uthit 3 Rd,
Luang Road, Pomprab,
A. Muang, Khon Kaen 40000
Hatyai Songkhla 90110
Bankgok 10100
Telephone: (043) 389-171-193
Telephone: (074) 355-530-3
Telephone: (02) 689-3100
Fax. (043) 389-209
Fax: (074) 355-534
Fax. (02) 689-3199
Central World Branch
Chiang Mai Branch
Phuket Branch
999/9 The Offices at Central World,
422/49 Changklan Road, Changklan
22/61-63, Luang Por Wat Chalong Road,
16th Fl., Rama 1 Rd, Pathumwan,
Subdistrict, Amphoe Meuang,
Talat Yai, Mueang Phuket,
Bangkok 10330
Chiang Mai 50100
Phuket 83000
Telephone: (66-2) 673-5000,
Telephone: (053) 270-072
Tel. (076) 222-811,(076) 222-683
(66-2) 264-5888 Fax. (66-2) 264-5899
Fax: (053) 272-618
Fax. (076) 222-861
Pak Chong Branch
Cyber Branch @ North Nana
173 175, Mittapap Road,
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd.,Klong Toey Nua Subdistrict , Wattana District, Bangkok 10110 Telephone: 083-490-2871
Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Tel. (044) 279-511 Fax. (044) 279-574
Nakhon Ratchasima Branch
Bangkhae Branch
6th Floor The Mall Group Building Bangkhae 275 Moo 1 Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Tel. (66-2) 454-9979 Fax. (66-2) 454-9970
624/9 Changphuek Road, . Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171 Information herein was obtained from sources believed to be reliable, but its completeness and accuracy are not guaranteed. All opinions expressed constitute our views on that date and are not intended as an offer or solicitation to sell or buy any securities. Investors should exercise care when making a decision to invest in securities. No one may modify or distribute any part of this report unless written permission is first received from Seamico Securities Plc. If any modifications are made, quotes or references taken from the report and the report date must be clearly mentioned and must not cause misunderstanding or damage to the company.
