Nok Airlines
Nok Airlines Underperform (16E TP Bt7.30)
Company Update
Close Bt7.00
Transport & Logistics March 16, 2016
Earnings upgrade/Earnings downgrade/Overview unchanged
Pilot inadequacy problem likely to be resolved by June Price Performance (%)
Downgrade to “Underperform” with P/BV‐based TP of Bt7.30 We lower the earnings estimates for NOK owing mainly to continued flight reductions due to the pilot shortage. We change NOK’s valuation method to be based on P/BV as the company is likely to still report a net loss in 2016E. We lower NOK’s 2016E TP to Bt7.30, vs. Bt10.80 previously, based on P/BV of 1.7x, ‐1.5SD and below P/BV of 2.2x for peers. We thus lower NOK’s rating to “Underperform”, vs. Buy previously, owing to the prospect of weakening results compared to peers. 30% flight reduction in Mar‐16 from lack of pilots NOK will cut 60 flights per day (round trip) until the end of March because of pilot inadequacy. The 60 flights per day reduction accounts for around 30% of NOK’s total flights per day (compared to the normal situation). NOK affirmed that the flight reduction in Mar‐16 should be the bottom as the company is in the process of solving the problem by importing foreign pilots from abroad and upgrading co‐pilots to replace some pilots who resigned recently. NOK believes that the pilot shortage is likely to be resolved by Jun‐16.
Source: SET Smart
FY15
FY16
Consensus EPS (Bt)
0.480
1.173
‐202.1%
‐29.2%
KT ZMICO vs. consensus Share data Reuters / Bloomberg
NOK.BK/NOK TB
Paid‐up Shares (m)
625.00
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
5.00/130.00
Foreign limit / actual (%)
49.00/2.31
52 week High / Low (Bt)
16.20/6.95
Avg. daily T/O (shares 000) NVDR (%)
3,830.00 1.72
Estimated free float (%)
57.52
Beta
0.62
URL
www.nokair.com
CGR
Anti‐corruption
Data not available / no policy
Raenoo Bhandasukdi Analyst no. 17989 [email protected] 66 (0) 2695‐5836
Positive fares in Jan‐Feb from international route expansion NOK’s operating results before the pilot shortage likely improved (1Q16E) owing to the positive impact of the global jet fuel price decline and ticket fare increases. Average ticket fares in Jan‐Feb 16 increased slightly owing to the aggressive expansion of international routes in 4Q15. Meanwhile, among the four airlines listed in the SET, NOK continues to have the lowest oil hedging exposure as only 10‐15% of fuel usage is currently hedged, compared to 47‐52%, 47% and 44% for AAV, BA, and THAI. Earnings cut; assume flight frequency will return to normal in Jul‐16 We lower NOK’s earnings estimate in 2016E to a net loss of Bt365mn (vs. net profit of Bt517mn previously). Our assumption assumes an average flight reduction of 10% for a six‐month period due to pilot inadequacy, resulting in a lower passenger volume assumption by 9% to 10mn, +14% YoY. Meanwhile, owing to the impact of lower‐than‐expected ticket fares in 2015 and to be conservative, we lower NOK’s average ticket fare in 2016E by 4% to Bt1,368/pax, flat YoY. However, we lower the jet fuel price assumption by 24% to US$54/barrel, ‐17% YoY, to be in line with the new Dubai crude price assumption from KTZMICO research team. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec Norm. PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
2013 11,180 1,066 1.71 68.83 1.03 7.27 2013 4.10 n.m. 0.96 14.71 39.26 cash
2014 11,965 (472) (0.75) (144.24) 0.00 6.03 2014 n.m. n.m. 1.16 0.00 (11.35) cash
2015 13,753 (726) (1.16) 136.24 0.00 4.88 2015 n.m. n.m. 1.44 0.00 (32.68) cash
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 6
2016E 17,722 (365) (0.58) (67.2) 0.00 4.29 2016E n.m. n.m. 1.63 0.00 (12.75) cash
2017E 23,260 297 0.48 n.m. 0.14 4.62 2017E 14.72 n.m. 1.51 2.04 10.67 cash
Downgrade to “Underperform” with P/BV‐based TP of Bt7.30 We lower the earnings estimate for NOK owing to continued flight reductions due to the pilot shortage, which began impacting NOK’s earnings in 4Q15. However, the negative impact has been offset by lower jet fuel costs. After the earnings revision, we change NOK’s valuation method to be based on P/BV as we expect the company to still report a net loss in 2016E. As such, we lower NOK’s target price to Bt7.30, vs. Bt10.80 previously, based on P/BV of 1.7x, ‐1.5SD from NOK’s historical P/BV and lower than P/BV of 2.2x for peers. We thus lower NOK’s recommendation to “Underperform”, vs. Buy previously, owing to the prospect of weakening results compared to peers. Figure 1: NOK’s PER band and sensitivity of market prices based on PER at different standard deviation levels (X)
2016E +1.0SD +0.5SD Average ‐0.5SD ‐1.0SD ‐1.5SD ‐2.0SD ‐2.5SD
4.0 3.6 3.2
+0.5 S.D.
2.8
Avg.
2.4
-0.5 S.D.
2.0 -1 S.D.
1.6 1.2
-2 S.D.
0.8 0.0
Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
0.4
P/BV (x) 3.2 2.9 2.6 2.3 2.0 1.7 1.4 1.1
Implied market price (Bt) 13.73 12.44 11.15 9.87 8.58 7.29 6.01 4.72
Upside/Downside vs. current market price (%) 96.1 77.7 59.3 41.0 22.6 4.2 (14.2) (32.6)
Source: Bloomberg, KT ZMICO Research Figure 2: Peer comparison COUNTRY
PER (x)
PBV (x) 15 0.8
16E 1.0
Yield (%) 17E 0.8
15 0.0
16E 2.6
ROE (%) 17E 2.9
15 12.0
16E 15.9
EV/EBITDA (x)
15 6.6
16E 7.0
17E 6.2
17E 14.8
15 6.0
16E 7.9
17E 7.6
12.4
10.8
10.2
1.3
1.2
1.2
6.6
7.1
7.3
10.2
12.5
12.9
8.3
7.5
7.2
7.5
6.7
6.8
2.0
1.6
1.3
2.2
2.5
2.6
28.7
24.2
20.7
5.6
5.5
5.4 5.4
AIR ASIA BHD
Malaysia
AIRARABI
UAE
CEBU AIR INC
Philippines
EASYJET PLC
Britain
12.8
10.1
8.8
3.1
2.3
1.9
3.1
4.3
4.7
24.8
23.9
23.8
8.0
6.2
RYANAIR HOLDINGS PLC
Ireland
17.8
14.3
11.7
3.8
3.9
3.1
0.0
2.3
1.0
23.7
30.8
29.3
10.5
9.0
7.6
SOUTHWEST AIRLINES
USA
12.2
10.2
9.5
3.8
3.2
2.4
0.7
0.8
0.8
30.9
33.4
27.5
5.5
5.0
4.8
TIGER AIRWAYS HLDG
Singapore
n.a.
n.a.
20.9
4.0
4.9
4.1
0.0
0.0
0.0
n.m.
5.7
20.6
n.m.
17.7
11.4
VIRGIN AUSTRALIA HLDG
Australia
n.a.
15.9
8.8
1.4
1.4
1.2
0.0
0.0
0.2
(10.4)
8.3
16.5
16.3
6.3
4.9
WESTJET AIRLINES LTD
Canada
6.6
8.4
8.3
1.3
1.1
1.0
2.7
3.0
3.1
19.8
13.5
12.3
2.9
3.2
3.1
AAV*
Thailand
21.6
13.9
13.0
1.3
1.2
1.2
3.2
5.0
5.4
6.0
9.0
9.4
8.9
5.9
5.3
12.2
10.8
10.4
2.3
2.2
1.8
1.9
2.8
2.8
16.2
17.7
18.8
8.0
7.4
6.3
Average (simple)
Source: Bloomberg, Note: *KT ZMICO Research estimates
30% flight reduction in Mar‐16 from lack of pilots According to the Civil Aviation Authority of Thailand (CAAT), NOK will cut 60 flights (round trip) per day until the end of March because of pilot inadequacy. The cancellations should not affect passengers since some of the flights had no bookings while many passengers who have already booked can fly on other scheduled flights. The 60 flights per day reduction accounts for around 30% of NOK’s total flights per day (compared to the normal situation). NOK affirmed that the flight reductions in Mar‐16 should be the bottom as the company is in the process of solving the problem by importing foreign pilots from abroad and upgrading co‐pilots to replace some pilots who resigned recently. NOK believes that the pilot shortage is likely to be resolved by Jun‐16. REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 6
NOK’s flight frequency reductions started in Feb‐16 when the company had to cancel 18 flights. This resulted from some pilots taking emergency sick leave, which impacted certain flights. NOK has been attempting to resolve such matters in accordance with the Protection of Passenger Rights using Thai air carriers’ service and expects Bt20mn in expenses related to this. NOK has been forced to announce cancellations and flight schedule revisions from time to time. Currently, the company is in the process of gathering information for clarification of these matters to the CAAT. Positive fares in Jan‐Feb 16 from international route expansion NOK’s operating results before the pilot shortfall likely improved (1Q16E) owing to the positive impact of the global jet fuel price decline and ticket fare increases. According to NOK, average ticket fares in Jan‐Feb 16 increased slightly owing to the aggressive expansion of international routes in 4Q15. Specifically, NOK started the DMK‐Ho Chi Minh City, Vietnam destination (14 flights/week) in Dec‐15, the DMK‐Hanoi, Vietnam (7 flights/week) destination in Dec‐15, and increased the frequency for the DMK – Yangon, Myanmar destination in Sep‐15. Meanwhile, NOK’s operating costs have likely benefitted from the global jet fuel price decline to US$41/barrel YTD, ‐35% YoY, compared to the US$65/barrel jet fuel price last year. Compared to peers, NOK has the lowest oil hedging exposure as only 10‐15% of fuel usage is currently hedged, compared to 47‐52%, 47% and 44% for AAV, BA, and THAI, respectively. Earnings cut; assume flight frequency will return to normal in Jul‐16 Due to the weaker‐than‐expected earnings in 2015, partly as a result of the pilot shortage that started to affect NOK’s operation in 4Q15, coupled with our assumption that the situation will continue until Jun‐16, we lower NOK’s earnings estimate in 2016E to a net loss of Bt365mn (vs. net profit of Bt517mn previously). Our assumption assumes an average flight reduction of 10% for the six‐month period, resulting in a lower passenger volume assumption by 9% to 10mn, +14% YoY. Meanwhile, owing to the impact of lower‐than‐expected ticket fares in 2015 and to be conservative, we lower NOK’s average ticket fare in 2016E by 4% to Bt1,368/pax, flat YoY. However, we lower the jet fuel price assumption by 24% to US$54/barrel, ‐17% YoY, to be in line with the new Dubai crude price assumption from KT ZMICO research team.
Figure 3: Key changes to our assumptions and revision to earnings forecasts of NOK
2016E
Ended Dec
Current
No. of aircraft Passengers carried (mn) Passenger volume growth (% YoY)
2017E
Previous
%chg
Current
Previous
%chg
31
31
36
36
10.0
11.0
(9.1)
11.8
12.1
(2.5)
13.8
20.0
18.3
10.0
1,368
1,425
(4.0)
1,409
1,467
(4.0)
fare change (% YoY)*
0.0
4.0
3.0
3.0
Jet fuel price (US$/barrel)
54
71
(23.9)
66
71
(7.0)
(365)
517
n.m.
297
749
(60.3)
Average fare (Bt/passenger)*
Net profit (Btmn)
Source: KT ZMICO, Note: *not include NOKSCOOT
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 6
Sensitivity analysis Our sensitivity analysis assumptions based on the longer‐than‐expected resolution of the pilot problem are shown in the table below.
Figure 4: Impact to NOK’s earnings and target price owing to the longer‐than‐expected pilot shortage Flight reduction period 6 months (base case) 7 months 8 months 9 months
Impact to 2016E earnings from flight reductions 10% (base case) 15% 20% (365) (599) (833) (443) (716) (989) (521) (833) (1,145) (599) (950) (1,301)
Impact to 2016E TP from flight reductions 10% (base case) 15% 20% 7.30 6.70 6.00 7.10 6.30 5.60 6.90 6.00 5.20 6.70 5.70 4.80
Source: KT ZMICO
Figure 5: 4Q15 earnings review Profit and Loss (Btmn) Year‐end 31 Dec Revenue Gross profit SG&A expenses EBITDA Interest expense Other income Income tax FX gain (loss) Other extra items Minority interests Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Debt/equity (x) BVPS (Bt) ROE (%) Operating Statistic Passenger volume (mn) Average fare (Bt/pax)
4Q14 3,514 31 (209) (15) (0) 62 0 ‐ ‐ 135 20 20 0.03
3Q15 3,135 (581) (293) (639) ‐ 84 0 137 ‐ 229 (424) (560) (0.68)
4Q15 3,726 (284) (268) (279) (42) 34 (6) (6) 183 235 (154) (331) (0.25)
% YoY 6.0 n.m. 28.1 1,801.6 n.m. (45.7) n.m. n.m. n.m. 73.7 (888.1) n.m. (888.1)
% QoQ 18.8 (51.2) (8.5) (56.4) n.m. (59.8) n.m. n.m. n.m. 2.6 (63.6) (40.9) (63.6)
2014 12,160 2 (819) (553) (2) 153 0 ‐ ‐ 194 (472) (472) (0.75)
2015 13,753 (1,150) (1,011) (1,140) (42) 155 (6) 205 183 938 (726) (1,114) (1.16)
0.9 (0.4) 0.6 2.6 cash 6.0 2.1 2.24 1,432
(18.5) (20.4) (13.5) 2.0 cash 5.1 (49.7) 2.05 1,361
(7.6) (7.5) (4.1) 1.7 cash 4.9 (19.8)
0.0 (4.5) (3.9) 2.6 cash 6.0 (11.3)
2.27 1,272
1.3 (11.2)
10.7 (6.6)
7.62 1,473
(8.4) (8.3) (5.3) 1.7 cash 4.9 (32.7) 8.76 1,368
% YoY 13.1 n.m. 23.4 106.1 1,726.4 1.3 (1,695.6) ‐ ‐ 383.4 53.9 136.2 53.9 15.0 (7.1)
Source: NOK, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 6
Financial tables PROFIT & LOSS (Btm) Revenues Cost of sales and service Gross profit SG&A expense EBITDA Depreciation & amortization EBIT Interest expense Equity earnings Other income / exp. EBT Corporate tax Minority interests Net profit Reported EPS Fully diluted EPS Core net profit Core EPS Dividend (Bt) BALANCE SHEET (Btm) Cash and equivalents Inventories PP&E‐net Other assets Total assets ST debt & current portion Long‐term debt Total liabilities Minority interests Shareholder equity Total liab. & shareholder equity CASH FLOW (Btm) Net income Depreciation & amortization Change in working capital FX, non‐cash adjustment & others Cash flow from operations Capex (Invest)/Divest Others Cash flow from investing Debt financing (repayment) Equity financing Dividend payment Others Cash flow from financing Net change in cash Free cash flow FCF per share (Bt) PROFITABILITY Revenue growth (%) EBITDA growth (%) Core EPS growth (%) Gross margin (%) EBITDA margin (%) Operating margin (%) Net margin (%) Core profit margin (%) Effective tax rate (%) FINANCIAL QUALITY Total debt to capital employed (x) Net debt to equity (x) Interest coverage (x)
2013 11,180 (9,478) 1,701 (737) 1,015 (51) 965 0 0 135 1,100 (33) 0 1,066 1.71 1.71 1,066 1.71 1.03
2014 11,965 (12,024) (60) (814) (610) (70) (680) (2) 0 210 (666) 0 194 (472) (0.75) (0.75) (472) (0.75) 0.00
2015 13,753 (14,902) (1,150) (1,011) (1,140) (82) (1,222) (42) 0 544 (1,658) (6) 938 (726) (1.16) (1.16) (1,114) (1.78) 0.00
2016E 17,722 (17,367) 355 (1,335) (396) (102) (498) (42) 0 175 (847) 0 482 (365) (0.58) (0.58) (365) (0.58) 0.00
2013 5,333 11 93 835 6,272 0 0 1,728 0 4,543 6,272
2014 3,227 17 254 3,071 6,569 0 0 2,220 578 3,771 6,569
2015 4,530 21 286 2,274 7,110 520 0 4,168 (105) 3,047 7,110
2016E 3,404 23 278 1,850 5,555 0 0 3,460 (587) 2,682 5,555
2013 1,066 51 (49) 35 1,103 1 (2,541) (2,540) 1,205 3,167 (588) 0 3,785 2,348 (1,437) (2.30)
2014 (472) 70 (2,073) 24 (2,450) (82) 2,799 2,717 773 0 (306) 0 467 733 267 0.43
2015 (726) 82 995 298 649 (80) (52) (132) 769 0 0 0 769 1,287 518 0.83
2016E (365) 102 (243) 0 (506) (100) 0 (100) (520) 0 0 0 (520) (1,126) (606) (0.97)
2013 36.0 92.0 68.8 15.2 9.1 8.6 9.5 9.5 3.0
2014 7.0 (160.0) (144.2) (0.5) (5.1) (5.7) (3.9) (3.9) 0.1
2015 14.9 87.0 136.2 (8.4) (8.3) (8.9) (5.3) (8.1) (0.4)
2016E 28.9 (65.2) (67.2) 2.0 (2.2) (2.8) (2.1) (2.1) 0.0
2013 cash cash cash
2014 cash cash cash
2015 0.15 cash (27.61)
2016E cash cash (9.44)
2017E 23,260 (21,342) 1,919 (1,401) 200 (122) 78 0 0 219 737 0 (439) 297 0.48 0.48 297 0.48 0.14
2017E 4,413 30 276 2,163 6,882 0 0 4,140 (147) 2,890 6,883
2017E 297 122 735 0 1,154 (100) 0 (100) 0 0 (45) 0 (45) 1,009 1,054 1.69
2017E 31.3 n.m. n.m. 8.2 0.9 0.3 1.3 1.3 0.0 2017E cash cash cash
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 5 of 6
Note: KT ZMICO is a partnership between KTB and ZMICO. 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. KT ZMICO is a co‐underwriter of TKN.
Anti‐corruption Progress Indicator
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
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KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS BUY: Expecting positive total returns of 15% or more over the next 12 months OUTPERFORM: Expecting total returns between ‐10% to +15%; returns expected to exceed market returns over a six‐month period due to specific catalysts UNDERPERFORM: Expecting total returns between ‐10% to +15%; returns expected to be below market returns over a six‐month period due to specific catalysts SELL: Expecting negative total returns of 10% or more over the next 12 months
SECTOR RECOMMENDATIONS OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index by at least 10% over the next 12 months. NEUTRAL: The industry, as defined by the analyst's coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months. UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index by 10% over the next 12 months.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 6 of 6
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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
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
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Fax. (66-2) 686-1666
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Fax. (66-2) 627-3582, 627-3600
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Chachoengsao Branch
Viphavadee Branch
Phitsanulok Branch
G Floor, Lao Peng Nguan 1 Bldg.,
Krung Thai Bank, Singhawat Branch
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Telephone: 083-490-2873
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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
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Khon Kaen Branch
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Hat Yai Branch
Sriworajak Building Branch
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1st – 2nd Floor, Sriworajak Building, 222
260 Srichan Road, T. Naimuang,
Niphat-Uthit 3 Rd,
Luang Road, Pomprab,
A. Muang, Khon Kaen 40000
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Bankgok 10100
Telephone: (043) 389-171-193
Telephone: (074) 355-530-3
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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
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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 Bt7.00
Transport & Logistics March 16, 2016
Earnings upgrade/Earnings downgrade/Overview unchanged
Pilot inadequacy problem likely to be resolved by June Price Performance (%)
Downgrade to “Underperform” with P/BV‐based TP of Bt7.30 We lower the earnings estimates for NOK owing mainly to continued flight reductions due to the pilot shortage. We change NOK’s valuation method to be based on P/BV as the company is likely to still report a net loss in 2016E. We lower NOK’s 2016E TP to Bt7.30, vs. Bt10.80 previously, based on P/BV of 1.7x, ‐1.5SD and below P/BV of 2.2x for peers. We thus lower NOK’s rating to “Underperform”, vs. Buy previously, owing to the prospect of weakening results compared to peers. 30% flight reduction in Mar‐16 from lack of pilots NOK will cut 60 flights per day (round trip) until the end of March because of pilot inadequacy. The 60 flights per day reduction accounts for around 30% of NOK’s total flights per day (compared to the normal situation). NOK affirmed that the flight reduction in Mar‐16 should be the bottom as the company is in the process of solving the problem by importing foreign pilots from abroad and upgrading co‐pilots to replace some pilots who resigned recently. NOK believes that the pilot shortage is likely to be resolved by Jun‐16.
Source: SET Smart
FY15
FY16
Consensus EPS (Bt)
0.480
1.173
‐202.1%
‐29.2%
KT ZMICO vs. consensus Share data Reuters / Bloomberg
NOK.BK/NOK TB
Paid‐up Shares (m)
625.00
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
5.00/130.00
Foreign limit / actual (%)
49.00/2.31
52 week High / Low (Bt)
16.20/6.95
Avg. daily T/O (shares 000) NVDR (%)
3,830.00 1.72
Estimated free float (%)
57.52
Beta
0.62
URL
www.nokair.com
CGR
Anti‐corruption
Data not available / no policy
Raenoo Bhandasukdi Analyst no. 17989 [email protected] 66 (0) 2695‐5836
Positive fares in Jan‐Feb from international route expansion NOK’s operating results before the pilot shortage likely improved (1Q16E) owing to the positive impact of the global jet fuel price decline and ticket fare increases. Average ticket fares in Jan‐Feb 16 increased slightly owing to the aggressive expansion of international routes in 4Q15. Meanwhile, among the four airlines listed in the SET, NOK continues to have the lowest oil hedging exposure as only 10‐15% of fuel usage is currently hedged, compared to 47‐52%, 47% and 44% for AAV, BA, and THAI. Earnings cut; assume flight frequency will return to normal in Jul‐16 We lower NOK’s earnings estimate in 2016E to a net loss of Bt365mn (vs. net profit of Bt517mn previously). Our assumption assumes an average flight reduction of 10% for a six‐month period due to pilot inadequacy, resulting in a lower passenger volume assumption by 9% to 10mn, +14% YoY. Meanwhile, owing to the impact of lower‐than‐expected ticket fares in 2015 and to be conservative, we lower NOK’s average ticket fare in 2016E by 4% to Bt1,368/pax, flat YoY. However, we lower the jet fuel price assumption by 24% to US$54/barrel, ‐17% YoY, to be in line with the new Dubai crude price assumption from KTZMICO research team. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec Norm. PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
2013 11,180 1,066 1.71 68.83 1.03 7.27 2013 4.10 n.m. 0.96 14.71 39.26 cash
2014 11,965 (472) (0.75) (144.24) 0.00 6.03 2014 n.m. n.m. 1.16 0.00 (11.35) cash
2015 13,753 (726) (1.16) 136.24 0.00 4.88 2015 n.m. n.m. 1.44 0.00 (32.68) cash
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 6
2016E 17,722 (365) (0.58) (67.2) 0.00 4.29 2016E n.m. n.m. 1.63 0.00 (12.75) cash
2017E 23,260 297 0.48 n.m. 0.14 4.62 2017E 14.72 n.m. 1.51 2.04 10.67 cash
Downgrade to “Underperform” with P/BV‐based TP of Bt7.30 We lower the earnings estimate for NOK owing to continued flight reductions due to the pilot shortage, which began impacting NOK’s earnings in 4Q15. However, the negative impact has been offset by lower jet fuel costs. After the earnings revision, we change NOK’s valuation method to be based on P/BV as we expect the company to still report a net loss in 2016E. As such, we lower NOK’s target price to Bt7.30, vs. Bt10.80 previously, based on P/BV of 1.7x, ‐1.5SD from NOK’s historical P/BV and lower than P/BV of 2.2x for peers. We thus lower NOK’s recommendation to “Underperform”, vs. Buy previously, owing to the prospect of weakening results compared to peers. Figure 1: NOK’s PER band and sensitivity of market prices based on PER at different standard deviation levels (X)
2016E +1.0SD +0.5SD Average ‐0.5SD ‐1.0SD ‐1.5SD ‐2.0SD ‐2.5SD
4.0 3.6 3.2
+0.5 S.D.
2.8
Avg.
2.4
-0.5 S.D.
2.0 -1 S.D.
1.6 1.2
-2 S.D.
0.8 0.0
Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
0.4
P/BV (x) 3.2 2.9 2.6 2.3 2.0 1.7 1.4 1.1
Implied market price (Bt) 13.73 12.44 11.15 9.87 8.58 7.29 6.01 4.72
Upside/Downside vs. current market price (%) 96.1 77.7 59.3 41.0 22.6 4.2 (14.2) (32.6)
Source: Bloomberg, KT ZMICO Research Figure 2: Peer comparison COUNTRY
PER (x)
PBV (x) 15 0.8
16E 1.0
Yield (%) 17E 0.8
15 0.0
16E 2.6
ROE (%) 17E 2.9
15 12.0
16E 15.9
EV/EBITDA (x)
15 6.6
16E 7.0
17E 6.2
17E 14.8
15 6.0
16E 7.9
17E 7.6
12.4
10.8
10.2
1.3
1.2
1.2
6.6
7.1
7.3
10.2
12.5
12.9
8.3
7.5
7.2
7.5
6.7
6.8
2.0
1.6
1.3
2.2
2.5
2.6
28.7
24.2
20.7
5.6
5.5
5.4 5.4
AIR ASIA BHD
Malaysia
AIRARABI
UAE
CEBU AIR INC
Philippines
EASYJET PLC
Britain
12.8
10.1
8.8
3.1
2.3
1.9
3.1
4.3
4.7
24.8
23.9
23.8
8.0
6.2
RYANAIR HOLDINGS PLC
Ireland
17.8
14.3
11.7
3.8
3.9
3.1
0.0
2.3
1.0
23.7
30.8
29.3
10.5
9.0
7.6
SOUTHWEST AIRLINES
USA
12.2
10.2
9.5
3.8
3.2
2.4
0.7
0.8
0.8
30.9
33.4
27.5
5.5
5.0
4.8
TIGER AIRWAYS HLDG
Singapore
n.a.
n.a.
20.9
4.0
4.9
4.1
0.0
0.0
0.0
n.m.
5.7
20.6
n.m.
17.7
11.4
VIRGIN AUSTRALIA HLDG
Australia
n.a.
15.9
8.8
1.4
1.4
1.2
0.0
0.0
0.2
(10.4)
8.3
16.5
16.3
6.3
4.9
WESTJET AIRLINES LTD
Canada
6.6
8.4
8.3
1.3
1.1
1.0
2.7
3.0
3.1
19.8
13.5
12.3
2.9
3.2
3.1
AAV*
Thailand
21.6
13.9
13.0
1.3
1.2
1.2
3.2
5.0
5.4
6.0
9.0
9.4
8.9
5.9
5.3
12.2
10.8
10.4
2.3
2.2
1.8
1.9
2.8
2.8
16.2
17.7
18.8
8.0
7.4
6.3
Average (simple)
Source: Bloomberg, Note: *KT ZMICO Research estimates
30% flight reduction in Mar‐16 from lack of pilots According to the Civil Aviation Authority of Thailand (CAAT), NOK will cut 60 flights (round trip) per day until the end of March because of pilot inadequacy. The cancellations should not affect passengers since some of the flights had no bookings while many passengers who have already booked can fly on other scheduled flights. The 60 flights per day reduction accounts for around 30% of NOK’s total flights per day (compared to the normal situation). NOK affirmed that the flight reductions in Mar‐16 should be the bottom as the company is in the process of solving the problem by importing foreign pilots from abroad and upgrading co‐pilots to replace some pilots who resigned recently. NOK believes that the pilot shortage is likely to be resolved by Jun‐16. REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 6
NOK’s flight frequency reductions started in Feb‐16 when the company had to cancel 18 flights. This resulted from some pilots taking emergency sick leave, which impacted certain flights. NOK has been attempting to resolve such matters in accordance with the Protection of Passenger Rights using Thai air carriers’ service and expects Bt20mn in expenses related to this. NOK has been forced to announce cancellations and flight schedule revisions from time to time. Currently, the company is in the process of gathering information for clarification of these matters to the CAAT. Positive fares in Jan‐Feb 16 from international route expansion NOK’s operating results before the pilot shortfall likely improved (1Q16E) owing to the positive impact of the global jet fuel price decline and ticket fare increases. According to NOK, average ticket fares in Jan‐Feb 16 increased slightly owing to the aggressive expansion of international routes in 4Q15. Specifically, NOK started the DMK‐Ho Chi Minh City, Vietnam destination (14 flights/week) in Dec‐15, the DMK‐Hanoi, Vietnam (7 flights/week) destination in Dec‐15, and increased the frequency for the DMK – Yangon, Myanmar destination in Sep‐15. Meanwhile, NOK’s operating costs have likely benefitted from the global jet fuel price decline to US$41/barrel YTD, ‐35% YoY, compared to the US$65/barrel jet fuel price last year. Compared to peers, NOK has the lowest oil hedging exposure as only 10‐15% of fuel usage is currently hedged, compared to 47‐52%, 47% and 44% for AAV, BA, and THAI, respectively. Earnings cut; assume flight frequency will return to normal in Jul‐16 Due to the weaker‐than‐expected earnings in 2015, partly as a result of the pilot shortage that started to affect NOK’s operation in 4Q15, coupled with our assumption that the situation will continue until Jun‐16, we lower NOK’s earnings estimate in 2016E to a net loss of Bt365mn (vs. net profit of Bt517mn previously). Our assumption assumes an average flight reduction of 10% for the six‐month period, resulting in a lower passenger volume assumption by 9% to 10mn, +14% YoY. Meanwhile, owing to the impact of lower‐than‐expected ticket fares in 2015 and to be conservative, we lower NOK’s average ticket fare in 2016E by 4% to Bt1,368/pax, flat YoY. However, we lower the jet fuel price assumption by 24% to US$54/barrel, ‐17% YoY, to be in line with the new Dubai crude price assumption from KT ZMICO research team.
Figure 3: Key changes to our assumptions and revision to earnings forecasts of NOK
2016E
Ended Dec
Current
No. of aircraft Passengers carried (mn) Passenger volume growth (% YoY)
2017E
Previous
%chg
Current
Previous
%chg
31
31
36
36
10.0
11.0
(9.1)
11.8
12.1
(2.5)
13.8
20.0
18.3
10.0
1,368
1,425
(4.0)
1,409
1,467
(4.0)
fare change (% YoY)*
0.0
4.0
3.0
3.0
Jet fuel price (US$/barrel)
54
71
(23.9)
66
71
(7.0)
(365)
517
n.m.
297
749
(60.3)
Average fare (Bt/passenger)*
Net profit (Btmn)
Source: KT ZMICO, Note: *not include NOKSCOOT
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 6
Sensitivity analysis Our sensitivity analysis assumptions based on the longer‐than‐expected resolution of the pilot problem are shown in the table below.
Figure 4: Impact to NOK’s earnings and target price owing to the longer‐than‐expected pilot shortage Flight reduction period 6 months (base case) 7 months 8 months 9 months
Impact to 2016E earnings from flight reductions 10% (base case) 15% 20% (365) (599) (833) (443) (716) (989) (521) (833) (1,145) (599) (950) (1,301)
Impact to 2016E TP from flight reductions 10% (base case) 15% 20% 7.30 6.70 6.00 7.10 6.30 5.60 6.90 6.00 5.20 6.70 5.70 4.80
Source: KT ZMICO
Figure 5: 4Q15 earnings review Profit and Loss (Btmn) Year‐end 31 Dec Revenue Gross profit SG&A expenses EBITDA Interest expense Other income Income tax FX gain (loss) Other extra items Minority interests Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Debt/equity (x) BVPS (Bt) ROE (%) Operating Statistic Passenger volume (mn) Average fare (Bt/pax)
4Q14 3,514 31 (209) (15) (0) 62 0 ‐ ‐ 135 20 20 0.03
3Q15 3,135 (581) (293) (639) ‐ 84 0 137 ‐ 229 (424) (560) (0.68)
4Q15 3,726 (284) (268) (279) (42) 34 (6) (6) 183 235 (154) (331) (0.25)
% YoY 6.0 n.m. 28.1 1,801.6 n.m. (45.7) n.m. n.m. n.m. 73.7 (888.1) n.m. (888.1)
% QoQ 18.8 (51.2) (8.5) (56.4) n.m. (59.8) n.m. n.m. n.m. 2.6 (63.6) (40.9) (63.6)
2014 12,160 2 (819) (553) (2) 153 0 ‐ ‐ 194 (472) (472) (0.75)
2015 13,753 (1,150) (1,011) (1,140) (42) 155 (6) 205 183 938 (726) (1,114) (1.16)
0.9 (0.4) 0.6 2.6 cash 6.0 2.1 2.24 1,432
(18.5) (20.4) (13.5) 2.0 cash 5.1 (49.7) 2.05 1,361
(7.6) (7.5) (4.1) 1.7 cash 4.9 (19.8)
0.0 (4.5) (3.9) 2.6 cash 6.0 (11.3)
2.27 1,272
1.3 (11.2)
10.7 (6.6)
7.62 1,473
(8.4) (8.3) (5.3) 1.7 cash 4.9 (32.7) 8.76 1,368
% YoY 13.1 n.m. 23.4 106.1 1,726.4 1.3 (1,695.6) ‐ ‐ 383.4 53.9 136.2 53.9 15.0 (7.1)
Source: NOK, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 6
Financial tables PROFIT & LOSS (Btm) Revenues Cost of sales and service Gross profit SG&A expense EBITDA Depreciation & amortization EBIT Interest expense Equity earnings Other income / exp. EBT Corporate tax Minority interests Net profit Reported EPS Fully diluted EPS Core net profit Core EPS Dividend (Bt) BALANCE SHEET (Btm) Cash and equivalents Inventories PP&E‐net Other assets Total assets ST debt & current portion Long‐term debt Total liabilities Minority interests Shareholder equity Total liab. & shareholder equity CASH FLOW (Btm) Net income Depreciation & amortization Change in working capital FX, non‐cash adjustment & others Cash flow from operations Capex (Invest)/Divest Others Cash flow from investing Debt financing (repayment) Equity financing Dividend payment Others Cash flow from financing Net change in cash Free cash flow FCF per share (Bt) PROFITABILITY Revenue growth (%) EBITDA growth (%) Core EPS growth (%) Gross margin (%) EBITDA margin (%) Operating margin (%) Net margin (%) Core profit margin (%) Effective tax rate (%) FINANCIAL QUALITY Total debt to capital employed (x) Net debt to equity (x) Interest coverage (x)
2013 11,180 (9,478) 1,701 (737) 1,015 (51) 965 0 0 135 1,100 (33) 0 1,066 1.71 1.71 1,066 1.71 1.03
2014 11,965 (12,024) (60) (814) (610) (70) (680) (2) 0 210 (666) 0 194 (472) (0.75) (0.75) (472) (0.75) 0.00
2015 13,753 (14,902) (1,150) (1,011) (1,140) (82) (1,222) (42) 0 544 (1,658) (6) 938 (726) (1.16) (1.16) (1,114) (1.78) 0.00
2016E 17,722 (17,367) 355 (1,335) (396) (102) (498) (42) 0 175 (847) 0 482 (365) (0.58) (0.58) (365) (0.58) 0.00
2013 5,333 11 93 835 6,272 0 0 1,728 0 4,543 6,272
2014 3,227 17 254 3,071 6,569 0 0 2,220 578 3,771 6,569
2015 4,530 21 286 2,274 7,110 520 0 4,168 (105) 3,047 7,110
2016E 3,404 23 278 1,850 5,555 0 0 3,460 (587) 2,682 5,555
2013 1,066 51 (49) 35 1,103 1 (2,541) (2,540) 1,205 3,167 (588) 0 3,785 2,348 (1,437) (2.30)
2014 (472) 70 (2,073) 24 (2,450) (82) 2,799 2,717 773 0 (306) 0 467 733 267 0.43
2015 (726) 82 995 298 649 (80) (52) (132) 769 0 0 0 769 1,287 518 0.83
2016E (365) 102 (243) 0 (506) (100) 0 (100) (520) 0 0 0 (520) (1,126) (606) (0.97)
2013 36.0 92.0 68.8 15.2 9.1 8.6 9.5 9.5 3.0
2014 7.0 (160.0) (144.2) (0.5) (5.1) (5.7) (3.9) (3.9) 0.1
2015 14.9 87.0 136.2 (8.4) (8.3) (8.9) (5.3) (8.1) (0.4)
2016E 28.9 (65.2) (67.2) 2.0 (2.2) (2.8) (2.1) (2.1) 0.0
2013 cash cash cash
2014 cash cash cash
2015 0.15 cash (27.61)
2016E cash cash (9.44)
2017E 23,260 (21,342) 1,919 (1,401) 200 (122) 78 0 0 219 737 0 (439) 297 0.48 0.48 297 0.48 0.14
2017E 4,413 30 276 2,163 6,882 0 0 4,140 (147) 2,890 6,883
2017E 297 122 735 0 1,154 (100) 0 (100) 0 0 (45) 0 (45) 1,009 1,054 1.69
2017E 31.3 n.m. n.m. 8.2 0.9 0.3 1.3 1.3 0.0 2017E cash cash cash
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 5 of 6
Note: KT ZMICO is a partnership between KTB and ZMICO. 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. KT ZMICO is a co‐underwriter of TKN.
Anti‐corruption Progress Indicator
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 BUY: Expecting positive total returns of 15% or more over the next 12 months OUTPERFORM: Expecting total returns between ‐10% to +15%; returns expected to exceed market returns over a six‐month period due to specific catalysts UNDERPERFORM: Expecting total returns between ‐10% to +15%; returns expected to be below market returns over a six‐month period due to specific catalysts SELL: Expecting negative total returns of 10% or more over the next 12 months
SECTOR RECOMMENDATIONS OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index by at least 10% over the next 12 months. NEUTRAL: The industry, as defined by the analyst's coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months. UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index by 10% over the next 12 months.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 6 of 6
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.
