Muangthai Leasing
Muangthai Leasing Earnings Review
Outperform (17E TP Bt33.00) Close Bt29.75
Finance & Securities May 12, 2017
Beat forecast/Below forecast/In line
Results in line Results date: May 11, 2017
Price Performance (%)
Growth remains on track We maintain our Outperform rating for MTLS as we see that it remains appealing on its favorable earnings outlook, which should continue outperforming financial peers. 1Q17 net profit (Bt536mn) in line with both our forecast and the street MTLS’s 1Q17 net profit of Bt536mn (+91% YoY, +11% QoQ) was in line with both our forecast (Bt525mn) and the street estimate (Bt513mn).
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
1.020
1.377
KT ZMICO vs. consensus Share data
‐1.0%
‐2.0%
Reuters / Bloomberg
MTLS.BK/MTLS TB
Paid‐up Shares (m)
2,120.00
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
63.00/1,815.00
Foreign limit / actual (%)
49.00/5.22
52 week High / Low (Bt)
32.75/14.00
Avg. daily T/O (shares 000) NVDR (%)
10,872.00 3.99
Estimated free float (%)
20.07
Beta
1.34
URL
www.muangthaileasing.co.th
CGR
Anti‐corruption
Level 2 (Declared)
Prapharas Nonthapiboon Analyst, no 17836 [email protected]
1Q17 net profit came in at Bt536mn, up 91% YoY and 11% QoQ The upbeat results were due mainly to 1) robust loan growth of 80% YoY and 10% QoQ with the main loan growth driver coming from cars and agricultural land products; and 2) non‐interest income growth of 54% YoY and 13% QoQ. This should also be thanks largely to its aggressive branch expansion to 1,874 branches at end‐1Q17 vs. 1,664 branches at end‐16, with 210 new branches opened in 1Q17 vs. the firm’s plan to expand by around 600 new branches for 2017E. Meanwhile, the interest spread was quite stable QoQ at 20%. Provision expenses continued to rise both YoY and QoQ to 2.2% of loans vs. 1.6% for both 1Q16 and 4Q16, due partly to its robust loan growth and its weakened asset quality following its rapid loan expansion. NPLs increased both YoY and QoQ following its rapid credit growth Its NPLs in 1Q17 increased slightly QoQ to 1.09% from 1.07% in 4Q16 following its rapid credit expansion. The increase in NPLs came mainly from NPLs in car title loans. The management said that it will try to control its NPL ratio for 2017E below 1.5%. However, its reserve‐to‐NPL ratio for 1Q17 remained quite solid at 265% vs. 257% in 4Q16. Financials and Valuation FY Ended 31 Dec PPOP (Btm) Net profit (Btmn) EPS (Bt) EPS growth (%) BV (Bt) Dividend (Bt) FY Ended 31 Dec PER (x) PBV (x) Dividend yield (%) ROE (%)
2015 856 825 0.39 52% 2.67 0.20
2016 1,811 1,464 0.69 77% 3.16 0.10
2017E 2,790 2,147 1.01 47% 4.07 0.15
2018E 3,811 2,865 1.35 33% 5.27 0.20
2019E 5,058 3,834 1.81 34% 6.87 0.27
2015 76.45 11.16 0.67 15%
2016 43.08 9.42 0.34 24%
2017E 29.37 7.31 0.51 28%
2018E 22.02 5.65 0.68 29%
2019E 16.45 4.33 0.91 30%
66 (0) 2695‐5872
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 4
Figure 1: 1Q17 earnings results Statement of comprehensive income (Btmn) Fiscal Year‐Ended Dec.
1Q16
4Q16
1Q17
% YoY % QoQ
2016
2017E
% YoY % 1Q to 17E
Interest Income
769
1,270
1,415
84%
11% 4,019
6,571
63%
22%
Interest Expenses
66
102
122
84%
20% 328
657
100%
19%
Net Interest Income
703
1,168
1,293
84%
11% 3,691
5,914
60%
22%
Non Interest Income
96
131
148
54%
13% 453
482
6%
31%
Operating Income
799
1,300
1,441
80%
11% 4,144
6,395
54%
23%
Operating Expenses
390
601
622
59%
3% 1,985
3,058
54%
20%
Operating Profit
409
699
819
100%
17% 2,159
3,338
55%
25%
Provision expenses (Reversal)
57
92
146
154%
59% 332
601
81%
24%
Taxes
70
117
131
88%
12% 348
547
57%
24%
Gain(loss) from foreclosed assets
(2) (7) (6)
203%
‐11% (15) (42)
178%
14%
Net Profit PPOP EPS (Bt)
280 339 0.13
483 581 0.23
536 688 0.25
91% 103% 91%
11% 1,464 18% 1,811 11% 0.69
47% 54% 47%
25% 25% 25%
1Q16
4Q16
1Q17
2016
130
251
284
251
530
Key Statistics and Ratios Gross NPLs (Btmn)
2,147 2,790 1.01 2017E
Gross NPLs/Loans
0.90%
1.07%
1.09%
1.07%
1.50%
Loan Loss Reserve/NPLs
299%
257%
265%
257%
224%
Loan Loss Reserve/Loans
2.7%
2.7%
2.9%
2.7%
3.4%
38.9%
27.4%
27.0%
27.4%
24.0%
162%
139%
140%
139%
134%
2.6
3.2 47.8%
Equity/Asset Loan to borrowing ratio Debt to equity ratio
1.6
2.6
2.7
Cost to Income
48.8%
46.2%
43.2%
47.9%
Non Interest Income/Total Income
12.1%
10.1%
10.3%
10.9%
7.5%
Interest Spread
19.4%
20.5%
20.1%
19.5%
19.3%
Net Interest Margin
20.7%
21.2%
20.9%
20.4%
20.1%
Loan Growth YoY
79.2%
86.4%
79.6%
86.4%
50.1%
Loan Growth QoQ
14.5%
14.8%
10.3%
Source: KTZMICO Research
Figure 2: MTLS's P/BV band and sensitivity of market prices based on P/BV at different standard deviation levels (X)
9.0 8.0 7.0 6.0 5.0
Upside/ Downside vs. market price
(Bt)
(%)
38
29
9.0
37
23
+2.5SD
8.6
35
18
+2.0SD
8.2
33
12
+1.5SD
7.8
32
7
+1.0SD
7.4
30
2
+0.5SD
7.0
29
-4
Average
6.6
27
-9
-0.5SD
6.2
25
-15
-1.0SD
5.9
24
-20
-1.5SD
5.5
22
-25
-2.0SD
5.1
21
-31
PBV (x)
+3.5SD
9.4
+2.0 S.D.
+3.0SD
+1.0 S.D.
+3.0 S.D.
Avg. -1.0 S.D. -2.0 S.D.
Source: Bloomberg, KT ZMICO Research
May-17
Jan-17
Oct-16
Jul-16
Apr-16
Dec-15
Sep-15
Jun-15
Mar-15
Nov-14
4.0
Implied market price
2017E
10.0
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 4
Figure 3: MTLS's PER band and sensitivity of market prices based on PER at different standard deviation levels (X) 60.0
+2.0 S.D.
55.0
Upside/ Downside vs. market price
(Bt)
(%)
57
91
51.5
52
75
+1.0SD
46.7
47
59
+0.5SD Average -0.5SD -1.0SD -1.5SD -2.0SD
41.9 37.1 32.3 27.5 22.7 18.0
42 38 33 28 23 18
43 26 10 -6 -23 -39
PER (x)
+2.0SD
56.3
+1.5SD
+1.5 S.D.
50.0
+1.0 S.D.
45.0 40.0
May-17
Jan-17
Oct-16
Nov-14
Source: Bloomberg, KT ZMICO Research
Jul-16
-1.5 S.D.
Apr-16
-1.0 S.D.
25.0
Dec-15
30.0
Sep-15
-0.5 S.D.
Mar-15
35.0
Jun-15
Avg.
20.0
Implied market price
2017E
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 4
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, 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 4 of 4
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
Outperform (17E TP Bt33.00) Close Bt29.75
Finance & Securities May 12, 2017
Beat forecast/Below forecast/In line
Results in line Results date: May 11, 2017
Price Performance (%)
Growth remains on track We maintain our Outperform rating for MTLS as we see that it remains appealing on its favorable earnings outlook, which should continue outperforming financial peers. 1Q17 net profit (Bt536mn) in line with both our forecast and the street MTLS’s 1Q17 net profit of Bt536mn (+91% YoY, +11% QoQ) was in line with both our forecast (Bt525mn) and the street estimate (Bt513mn).
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
1.020
1.377
KT ZMICO vs. consensus Share data
‐1.0%
‐2.0%
Reuters / Bloomberg
MTLS.BK/MTLS TB
Paid‐up Shares (m)
2,120.00
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
63.00/1,815.00
Foreign limit / actual (%)
49.00/5.22
52 week High / Low (Bt)
32.75/14.00
Avg. daily T/O (shares 000) NVDR (%)
10,872.00 3.99
Estimated free float (%)
20.07
Beta
1.34
URL
www.muangthaileasing.co.th
CGR
Anti‐corruption
Level 2 (Declared)
Prapharas Nonthapiboon Analyst, no 17836 [email protected]
1Q17 net profit came in at Bt536mn, up 91% YoY and 11% QoQ The upbeat results were due mainly to 1) robust loan growth of 80% YoY and 10% QoQ with the main loan growth driver coming from cars and agricultural land products; and 2) non‐interest income growth of 54% YoY and 13% QoQ. This should also be thanks largely to its aggressive branch expansion to 1,874 branches at end‐1Q17 vs. 1,664 branches at end‐16, with 210 new branches opened in 1Q17 vs. the firm’s plan to expand by around 600 new branches for 2017E. Meanwhile, the interest spread was quite stable QoQ at 20%. Provision expenses continued to rise both YoY and QoQ to 2.2% of loans vs. 1.6% for both 1Q16 and 4Q16, due partly to its robust loan growth and its weakened asset quality following its rapid loan expansion. NPLs increased both YoY and QoQ following its rapid credit growth Its NPLs in 1Q17 increased slightly QoQ to 1.09% from 1.07% in 4Q16 following its rapid credit expansion. The increase in NPLs came mainly from NPLs in car title loans. The management said that it will try to control its NPL ratio for 2017E below 1.5%. However, its reserve‐to‐NPL ratio for 1Q17 remained quite solid at 265% vs. 257% in 4Q16. Financials and Valuation FY Ended 31 Dec PPOP (Btm) Net profit (Btmn) EPS (Bt) EPS growth (%) BV (Bt) Dividend (Bt) FY Ended 31 Dec PER (x) PBV (x) Dividend yield (%) ROE (%)
2015 856 825 0.39 52% 2.67 0.20
2016 1,811 1,464 0.69 77% 3.16 0.10
2017E 2,790 2,147 1.01 47% 4.07 0.15
2018E 3,811 2,865 1.35 33% 5.27 0.20
2019E 5,058 3,834 1.81 34% 6.87 0.27
2015 76.45 11.16 0.67 15%
2016 43.08 9.42 0.34 24%
2017E 29.37 7.31 0.51 28%
2018E 22.02 5.65 0.68 29%
2019E 16.45 4.33 0.91 30%
66 (0) 2695‐5872
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 4
Figure 1: 1Q17 earnings results Statement of comprehensive income (Btmn) Fiscal Year‐Ended Dec.
1Q16
4Q16
1Q17
% YoY % QoQ
2016
2017E
% YoY % 1Q to 17E
Interest Income
769
1,270
1,415
84%
11% 4,019
6,571
63%
22%
Interest Expenses
66
102
122
84%
20% 328
657
100%
19%
Net Interest Income
703
1,168
1,293
84%
11% 3,691
5,914
60%
22%
Non Interest Income
96
131
148
54%
13% 453
482
6%
31%
Operating Income
799
1,300
1,441
80%
11% 4,144
6,395
54%
23%
Operating Expenses
390
601
622
59%
3% 1,985
3,058
54%
20%
Operating Profit
409
699
819
100%
17% 2,159
3,338
55%
25%
Provision expenses (Reversal)
57
92
146
154%
59% 332
601
81%
24%
Taxes
70
117
131
88%
12% 348
547
57%
24%
Gain(loss) from foreclosed assets
(2) (7) (6)
203%
‐11% (15) (42)
178%
14%
Net Profit PPOP EPS (Bt)
280 339 0.13
483 581 0.23
536 688 0.25
91% 103% 91%
11% 1,464 18% 1,811 11% 0.69
47% 54% 47%
25% 25% 25%
1Q16
4Q16
1Q17
2016
130
251
284
251
530
Key Statistics and Ratios Gross NPLs (Btmn)
2,147 2,790 1.01 2017E
Gross NPLs/Loans
0.90%
1.07%
1.09%
1.07%
1.50%
Loan Loss Reserve/NPLs
299%
257%
265%
257%
224%
Loan Loss Reserve/Loans
2.7%
2.7%
2.9%
2.7%
3.4%
38.9%
27.4%
27.0%
27.4%
24.0%
162%
139%
140%
139%
134%
2.6
3.2 47.8%
Equity/Asset Loan to borrowing ratio Debt to equity ratio
1.6
2.6
2.7
Cost to Income
48.8%
46.2%
43.2%
47.9%
Non Interest Income/Total Income
12.1%
10.1%
10.3%
10.9%
7.5%
Interest Spread
19.4%
20.5%
20.1%
19.5%
19.3%
Net Interest Margin
20.7%
21.2%
20.9%
20.4%
20.1%
Loan Growth YoY
79.2%
86.4%
79.6%
86.4%
50.1%
Loan Growth QoQ
14.5%
14.8%
10.3%
Source: KTZMICO Research
Figure 2: MTLS's P/BV band and sensitivity of market prices based on P/BV at different standard deviation levels (X)
9.0 8.0 7.0 6.0 5.0
Upside/ Downside vs. market price
(Bt)
(%)
38
29
9.0
37
23
+2.5SD
8.6
35
18
+2.0SD
8.2
33
12
+1.5SD
7.8
32
7
+1.0SD
7.4
30
2
+0.5SD
7.0
29
-4
Average
6.6
27
-9
-0.5SD
6.2
25
-15
-1.0SD
5.9
24
-20
-1.5SD
5.5
22
-25
-2.0SD
5.1
21
-31
PBV (x)
+3.5SD
9.4
+2.0 S.D.
+3.0SD
+1.0 S.D.
+3.0 S.D.
Avg. -1.0 S.D. -2.0 S.D.
Source: Bloomberg, KT ZMICO Research
May-17
Jan-17
Oct-16
Jul-16
Apr-16
Dec-15
Sep-15
Jun-15
Mar-15
Nov-14
4.0
Implied market price
2017E
10.0
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 4
Figure 3: MTLS's PER band and sensitivity of market prices based on PER at different standard deviation levels (X) 60.0
+2.0 S.D.
55.0
Upside/ Downside vs. market price
(Bt)
(%)
57
91
51.5
52
75
+1.0SD
46.7
47
59
+0.5SD Average -0.5SD -1.0SD -1.5SD -2.0SD
41.9 37.1 32.3 27.5 22.7 18.0
42 38 33 28 23 18
43 26 10 -6 -23 -39
PER (x)
+2.0SD
56.3
+1.5SD
+1.5 S.D.
50.0
+1.0 S.D.
45.0 40.0
May-17
Jan-17
Oct-16
Nov-14
Source: Bloomberg, KT ZMICO Research
Jul-16
-1.5 S.D.
Apr-16
-1.0 S.D.
25.0
Dec-15
30.0
Sep-15
-0.5 S.D.
Mar-15
35.0
Jun-15
Avg.
20.0
Implied market price
2017E
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 4
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, 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
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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
