Outperform (17E TP Bt360.00) Earnings Review
PTT Outperform (17E TP Bt360.00)
Earnings Review
Close Bt344.00
Energy & Utilities August 16, 2016
Beat forecast / Below forecast / In line
Continuing solid 2Q16 earnings as expected Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
29.230
31.942
KT ZMICO vs. consensus Share data
‐2.7%
5.7%
Reuters / Bloomberg
PTT.BK/PTT TB
Paid‐up Shares (m)
2,856.30
Par (Bt)
10.00
Market cap (Bt bn / US$ m)
983.00/28,381.00
Foreign limit / actual (%)
30.00/15.13
52 week High / Low (Bt)
345.00/197.00
Avg. daily T/O (shares 000) NVDR (%)
7,185.00 6.46
Estimated free float (%)
48.87
Beta
1.89
URL
www.pttplc.com
CGR
Anti‐corruption
Level 4 (Certified)
Patcharin Karsemarnuntana Analyst, no 17834 [email protected] 66 (0) 2695‐5837
ST and LT catalysts Given PTT’s continuing strong 2Q16 earnings, our full‐year 2016E forecast is highly achievable with its gas business still the growth catalyst for the year. Moreover, the company’s long‐term growth looks promising with the country remaining dependent on gas as the major fuel; meanwhile, the targeted spinoff of its oil business and the upcoming 21st petroleum bidding with PTTEP’s involvement will be price catalysts in 2017E. Thus, we maintain an “Outperform” rating (2017E SOTP‐based TP of Bt360). Reported 2Q16 NP of Bt24.9bn, in line with our forecast PTT delivered solid NP of Bt24.9bn in 2Q16 (+5% YoY, +5% QoQ), in line with our forecast (Bt26.5bn), thanks to the good operational line, with stock gain (Bt3.5bn) helping to offset the loss from financial derivatives (Bt4.1bn), mainly from PTTEP. Larger core profit of Bt29.2bn in 2Q16 The company posted soaring core profit of Bt29.2bn in 2Q16 (+7.5% YoY, +31% QoQ), with an improving operational performance on almost all fronts (PTT itself for both the gas and oil business, and the profit contributions from affiliates, especially QoQ, due to strong petrochemical spreads and stock gain). PTT’s 2Q16 performance itself was well supported by 1) the higher seasonal gas sales volume of 4,881mmscfd (+5% QoQ, flat YoY); 2) the widening product spreads at its GSP in line with higher petrochemical prices against the sustained low gas cost despite the slight drop in its GSP sales volume to 1.473mn tons (‐2% YoY, ‐1.3% QoQ) following the 26‐day planned shutdown at its GSP #6; and 3) the higher revenue from the oil business with the higher oil price more than offsetting the lower volume, along with the benefit of stock gain in the quarter. 2016E NP estimate maintained Given that the 1H16 core profit and NP account for 65% and 60% of our full‐year forecasts, respectively, our 2016E forecasts calling for Bt79.5bn core profit and Bt81.2bn NP are highly achievable, with the solid performance at PTT itself (no planned shutdowns in 2H16E, lower NGV loss, and a narrowing mismatched gap between the market price and gas cost for industrial gas sales in 2H16E) and efficient cost control as the cushion for PTTEP’s earnings, while the sustained low crude cost will benefit its downstream affiliates. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Core profit (Btmn) Net profit (Btmn) EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) EV/EBITDA (x) PBV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 2,605,062 82,066 58,678 20.34 (37.45) 11.00 239.22
2015 2,026,912 96,251 19,812 6.73 (66.91) 10.00 244.07
2016E 2,096,854 79,480 81,182 28.44 322.55 10.91 260.30
2017E 2,774,084 95,599 96,379 33.76 18.72 12.83 282.17
2018E 3,402,364 104,716 104,893 36.74 8.83 12.86 306.05
2014 16.91 5.37 1.44 3.2% 8.6% 60.5%
2015 51.11 4.75 1.41 2.9% 2.9% 44.9%
2016E 12.10 4.40 1.32 3.2% 11.3% 41.7%
2017E 10.19 3.61 1.22 3.7% 12.4% 23.4%
2018E 9.36 3.12 1.12 3.7% 12.5% 7.9%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
Figure 1: PTT’s 2Q16 earnings review
Profit and Loss (Btmn) Year‐end 31 Dec
2Q15
1Q16
2Q16
% YoY
% QoQ
1H16
% YoY
2015
2016E
536,145
386,940
420,447
(21.6)
8.7
% YoY
% YTD
807,387
(23.2)
2,026,912
Gross profit
69,696
54,268
66,289
(4.9)
22.2
120,557
(1.3)
216,982
2,096,854
3.5
38.5
241,231
11.2
EBITDA
83,859
68,045
79,077
(5.7)
16.2
147,122
(5.0)
50.0
272,757
293,906
7.8
Interest expense
(7,829)
(7,235)
(7,245)
(7.5)
0.1
(14,480)
50.1
(7.9)
(30,089)
(24,215)
(19.5)
4,600
4,917
4,845
5.3
(1.4)
59.8
9,762
9.9
28,361
14,455
(49.0)
Income tax
(8,989)
(3,798)
(6,912)
(23.1)
67.5
82.0
(10,710)
(13.9)
(24,855)
(30,613)
23.2
Forex gain (loss)
(6,500)
1,432
(4,319)
35.0
(33.5)
nm
Extraordinary Items
3,096
‐
(2,887)
(6.5)
(6,038)
1,702
nm
(169.6)
‐
(100.0)
nm
‐
(100.0)
(71,811)
‐
(100.0)
Gn (Ls) from affiliates
2,433
nm
865
839
(65.5)
(3.0)
1,704
(60.6)
6,032
‐
(100.0)
nm
(10,254)
(8,730)
(9,481)
(7.5)
8.6
(18,211)
(12.3)
(10,783)
(31,579)
192.9
57.7
Net profit (loss)
23,746
23,669
24,879
4.8
5.1
48,548
4.8
19,812
81,182
309.8
59.8
Core profit (loss)
27,149
22,237
29,198
7.5
31.3
51,435
11.0
96,251
79,480
(17.4)
64.7
Reported EPS (Bt)
8.19
8.23
8.51
3.9
3.4
16.74
4.1
6.73
28.44
322.6
58.9
Gross margin (%)
13.0
14.0
15.8
14.9
10.71
11.50
EBITDA margin (%)
15.6
17.6
18.8
18.2
13.46
14.02
Net margin (%)
4.4
6.1
5.9
6.0
0.98
3.87
Current ratio (x)
2.0
2.2
2.2
2.2
2.16
1.83
Interest coverage (x)
6.0
5.0
6.5
5.8
4.29
6.25
Debt / equity (x)
1.0
0.9
0.9
0.9
0.95
0.77
BVPS (Bt)
253.4
251.2
255.6
255.6
244.1
260.3
ROE (%)
13.3
13.4
13.8
13.3
2.87
11.27
Revenue
Other income
Minority interests
Source: 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, PLE, TPOLY, M‐CHAI, CI. KT ZMICO is a co‐underwriter of ALT, EKH, RJH.
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
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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
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.
Earnings Review
Close Bt344.00
Energy & Utilities August 16, 2016
Beat forecast / Below forecast / In line
Continuing solid 2Q16 earnings as expected Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
29.230
31.942
KT ZMICO vs. consensus Share data
‐2.7%
5.7%
Reuters / Bloomberg
PTT.BK/PTT TB
Paid‐up Shares (m)
2,856.30
Par (Bt)
10.00
Market cap (Bt bn / US$ m)
983.00/28,381.00
Foreign limit / actual (%)
30.00/15.13
52 week High / Low (Bt)
345.00/197.00
Avg. daily T/O (shares 000) NVDR (%)
7,185.00 6.46
Estimated free float (%)
48.87
Beta
1.89
URL
www.pttplc.com
CGR
Anti‐corruption
Level 4 (Certified)
Patcharin Karsemarnuntana Analyst, no 17834 [email protected] 66 (0) 2695‐5837
ST and LT catalysts Given PTT’s continuing strong 2Q16 earnings, our full‐year 2016E forecast is highly achievable with its gas business still the growth catalyst for the year. Moreover, the company’s long‐term growth looks promising with the country remaining dependent on gas as the major fuel; meanwhile, the targeted spinoff of its oil business and the upcoming 21st petroleum bidding with PTTEP’s involvement will be price catalysts in 2017E. Thus, we maintain an “Outperform” rating (2017E SOTP‐based TP of Bt360). Reported 2Q16 NP of Bt24.9bn, in line with our forecast PTT delivered solid NP of Bt24.9bn in 2Q16 (+5% YoY, +5% QoQ), in line with our forecast (Bt26.5bn), thanks to the good operational line, with stock gain (Bt3.5bn) helping to offset the loss from financial derivatives (Bt4.1bn), mainly from PTTEP. Larger core profit of Bt29.2bn in 2Q16 The company posted soaring core profit of Bt29.2bn in 2Q16 (+7.5% YoY, +31% QoQ), with an improving operational performance on almost all fronts (PTT itself for both the gas and oil business, and the profit contributions from affiliates, especially QoQ, due to strong petrochemical spreads and stock gain). PTT’s 2Q16 performance itself was well supported by 1) the higher seasonal gas sales volume of 4,881mmscfd (+5% QoQ, flat YoY); 2) the widening product spreads at its GSP in line with higher petrochemical prices against the sustained low gas cost despite the slight drop in its GSP sales volume to 1.473mn tons (‐2% YoY, ‐1.3% QoQ) following the 26‐day planned shutdown at its GSP #6; and 3) the higher revenue from the oil business with the higher oil price more than offsetting the lower volume, along with the benefit of stock gain in the quarter. 2016E NP estimate maintained Given that the 1H16 core profit and NP account for 65% and 60% of our full‐year forecasts, respectively, our 2016E forecasts calling for Bt79.5bn core profit and Bt81.2bn NP are highly achievable, with the solid performance at PTT itself (no planned shutdowns in 2H16E, lower NGV loss, and a narrowing mismatched gap between the market price and gas cost for industrial gas sales in 2H16E) and efficient cost control as the cushion for PTTEP’s earnings, while the sustained low crude cost will benefit its downstream affiliates. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Core profit (Btmn) Net profit (Btmn) EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) EV/EBITDA (x) PBV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 2,605,062 82,066 58,678 20.34 (37.45) 11.00 239.22
2015 2,026,912 96,251 19,812 6.73 (66.91) 10.00 244.07
2016E 2,096,854 79,480 81,182 28.44 322.55 10.91 260.30
2017E 2,774,084 95,599 96,379 33.76 18.72 12.83 282.17
2018E 3,402,364 104,716 104,893 36.74 8.83 12.86 306.05
2014 16.91 5.37 1.44 3.2% 8.6% 60.5%
2015 51.11 4.75 1.41 2.9% 2.9% 44.9%
2016E 12.10 4.40 1.32 3.2% 11.3% 41.7%
2017E 10.19 3.61 1.22 3.7% 12.4% 23.4%
2018E 9.36 3.12 1.12 3.7% 12.5% 7.9%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
Figure 1: PTT’s 2Q16 earnings review
Profit and Loss (Btmn) Year‐end 31 Dec
2Q15
1Q16
2Q16
% YoY
% QoQ
1H16
% YoY
2015
2016E
536,145
386,940
420,447
(21.6)
8.7
% YoY
% YTD
807,387
(23.2)
2,026,912
Gross profit
69,696
54,268
66,289
(4.9)
22.2
120,557
(1.3)
216,982
2,096,854
3.5
38.5
241,231
11.2
EBITDA
83,859
68,045
79,077
(5.7)
16.2
147,122
(5.0)
50.0
272,757
293,906
7.8
Interest expense
(7,829)
(7,235)
(7,245)
(7.5)
0.1
(14,480)
50.1
(7.9)
(30,089)
(24,215)
(19.5)
4,600
4,917
4,845
5.3
(1.4)
59.8
9,762
9.9
28,361
14,455
(49.0)
Income tax
(8,989)
(3,798)
(6,912)
(23.1)
67.5
82.0
(10,710)
(13.9)
(24,855)
(30,613)
23.2
Forex gain (loss)
(6,500)
1,432
(4,319)
35.0
(33.5)
nm
Extraordinary Items
3,096
‐
(2,887)
(6.5)
(6,038)
1,702
nm
(169.6)
‐
(100.0)
nm
‐
(100.0)
(71,811)
‐
(100.0)
Gn (Ls) from affiliates
2,433
nm
865
839
(65.5)
(3.0)
1,704
(60.6)
6,032
‐
(100.0)
nm
(10,254)
(8,730)
(9,481)
(7.5)
8.6
(18,211)
(12.3)
(10,783)
(31,579)
192.9
57.7
Net profit (loss)
23,746
23,669
24,879
4.8
5.1
48,548
4.8
19,812
81,182
309.8
59.8
Core profit (loss)
27,149
22,237
29,198
7.5
31.3
51,435
11.0
96,251
79,480
(17.4)
64.7
Reported EPS (Bt)
8.19
8.23
8.51
3.9
3.4
16.74
4.1
6.73
28.44
322.6
58.9
Gross margin (%)
13.0
14.0
15.8
14.9
10.71
11.50
EBITDA margin (%)
15.6
17.6
18.8
18.2
13.46
14.02
Net margin (%)
4.4
6.1
5.9
6.0
0.98
3.87
Current ratio (x)
2.0
2.2
2.2
2.2
2.16
1.83
Interest coverage (x)
6.0
5.0
6.5
5.8
4.29
6.25
Debt / equity (x)
1.0
0.9
0.9
0.9
0.95
0.77
BVPS (Bt)
253.4
251.2
255.6
255.6
244.1
260.3
ROE (%)
13.3
13.4
13.8
13.3
2.87
11.27
Revenue
Other income
Minority interests
Source: 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, PLE, TPOLY, M‐CHAI, CI. KT ZMICO is a co‐underwriter of ALT, EKH, RJH.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD) Excellent (scores: 90 ‐ 100) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
Anti‐corruption Progress Indicator Source: Sec, Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC)
Level 1 (Committed) : Organization’s statement or board's resolution to work against corruption and to be in compliance with all relevant laws. Level 2 (Declared) : Public declaration statement to participate in Thailand's private sector Collective Action Coalition Against Corruption (CAC) or equivalent initiatives Level 3 (Established) : Public out preventive measures, risk assessment, communication and training for all employees, including consistent monitoring and review processes Level 4 (Certified) : Audit engagement by audit committee or auditors approved by the office of SEC, and receiving certification or assurance by independent external assurance providers (CAC etc.) Level 5 (Extended) : Extension of the anti‐corruption policy to business partners in the supply chain, and disclosure of any current investigations, prosecutions or closed cases Insufficient or not clearly defined policy Data not available / no policy
DISCLAIMER This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS
SECTOR RECOMMENDATIONS
BUY: Expecting positive total returns of 15% or more OVERWEIGHT: The industry, as defined by the analyst's over the next 12 months coverage universe, is expected to outperform the relevant OUTPERFORM: Expecting total returns between ‐10% primary market index by at least 10% over the next 12 months. to +15%; returns expected to exceed market returns NEUTRAL: The industry, as defined by the analyst's coverage over a six‐month period due to specific catalysts universe, is expected to perform in line with the relevant UNDERPERFORM: Expecting total returns between primary market index over the next 12 months. ‐10% to +15%; returns expected to be below market UNDERWEIGHT: The industry, as defined by the analyst's returns over a six‐month period due to specific coverage universe, is expected to underperform the relevant catalysts primary market index by 10% over the next 12 months. SELL: Expecting negative total returns of 10% or more over the next 12 months
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 3
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KT•ZMICO Securities Company Limited
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8 , 15 -17 , 19 , 21 Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok 10500 Telephone: (66-2) 695-5000
Phaholyothin Branch
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Fax. (66-2) 631-1709
Ploenchit Branch
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nd
2
Sindhorn Branch
3 Floor, Shinnawatra Tower II,
8 Floor, Ton Son Tower,
1291/1 Phaholyothin Road,
900 Ploenchit Road, Lumpini,
Floor, Sindhorn Tower 1, 130-132 Wireless Road, Lumpini,
Phayathai, Bangkok 10400
Pathumwan, Bangkok 10330
Pathumwan, Bangkok 10330
Telephone: (66-2) 686-1500
Telephone: (66-2) 626-6000
Telephone: (66-2) 627-3550
Fax. (66-2) 686-1666
Fax. (66-2) 626-6111
Fax. (66-2) 627-3582, 627-3600
Nakhon Pathom Branch 1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
Chachoengsao Branch
Viphavadee Branch
Phitsanulok Branch
G Floor, Lao Peng Nguan 1 Bldg.,
Krung Thai Bank, Singhawat Branch
333 Soi Cheypuand, Viphavadee-Rangsit Road,
114 Singhawat Road,
Ladyao, Jatujak, Bangkok 10900
Muang, Phitsanulok 65000
Telephone: (66-2) 618-8500
Telephone: 083-490-2873
Fax. (66-2) 618-8569
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Chonburi Branch
Pattaya Branch
108/34-36 Mahajakkrapad Road,
4 Floor, Forum Plaza Bldg.,
382/6-8 Moo 9, T. NongPrue,
T.Namuang, A.Muang,
870/52 Sukhumvit Road, T. Bangplasoy,
A. Banglamung, Cholburi 20260
Chachoengsao 24000
A. Muang, Cholburi 20000
Telephone: (038) 362-420-9
Telephone: (038) 813-088
Telephone: (038) 287-635
Fax. (038) 362-430
Fax. (038) 813-099
Fax. (038) 287-637
Khon Kaen Branch
5th Floor, Charoen Thani Princess Hotel,
Hat Yai Branch
Sriworajak Building Branch
200/301 Juldis Hatyai Plaza Floor 3,
1st – 2nd Floor, Sriworajak Building, 222
260 Srichan Road, T. Naimuang,
Niphat-Uthit 3 Rd,
Luang Road, Pomprab,
A. Muang, Khon Kaen 40000
Hatyai Songkhla 90110
Bankgok 10100
Telephone: (043) 389-171-193
Telephone: (074) 355-530-3
Telephone: (02) 689-3100
Fax. (043) 389-209
Fax: (074) 355-534
Fax. (02) 689-3199
Central World Branch
Chiang Mai Branch
Phuket Branch
999/9 The Offices at Central World,
422/49 Changklan Road, Changklan
22/61-63, Luang Por Wat Chalong Road,
16th Fl., Rama 1 Rd, Pathumwan,
Subdistrict, Amphoe Meuang,
Talat Yai, Mueang Phuket,
Bangkok 10330
Chiang Mai 50100
Phuket 83000
Telephone: (66-2) 673-5000,
Telephone: (053) 270-072
Tel. (076) 222-811,(076) 222-683
(66-2) 264-5888 Fax. (66-2) 264-5899
Fax: (053) 272-618
Fax. (076) 222-861
Pak Chong Branch
Cyber Branch @ North Nana
173 175, Mittapap Road,
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd.,Klong Toey Nua Subdistrict , Wattana District, Bangkok 10110 Telephone: 083-490-2871
Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Tel. (044) 279-511 Fax. (044) 279-574
Nakhon Ratchasima Branch
Bangkhae Branch
6th Floor The Mall Group Building Bangkhae 275 Moo 1 Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Tel. (66-2) 454-9979 Fax. (66-2) 454-9970
624/9 Changphuek Road, . Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171 Information herein was obtained from sources believed to be reliable, but its completeness and accuracy are not guaranteed. All opinions expressed constitute our views on that date and are not intended as an offer or solicitation to sell or buy any securities. Investors should exercise care when making a decision to invest in securities. No one may modify or distribute any part of this report unless written permission is first received from Seamico Securities Plc. If any modifications are made, quotes or references taken from the report and the report date must be clearly mentioned and must not cause misunderstanding or damage to the company.
