Siam Global House Buy (16E TP Bt12.00)
Siam Global House
Buy (16E TP Bt12.00)
Company update
Close Bt11.40
Commerce May 12, 2016
Beat forecast/Below forecast/In line
Better both in sales & margin Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
0.293
0.359
KT ZMICO vs. consensus Share data
5.8%
11.4%
Reuters / Bloomberg
GLOBAL.BK/GLOBAL TB
Paid‐up Shares (m)
3,484.28
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
40.00/1,126.00
Foreign limit / actual (%)
49.00/1.83
52 week High / Low (Bt)
12.50/7.57
Avg. daily T/O (shares 000) NVDR (%)
3,806.00 1.12
Estimated free float (%)
33.07
Beta
1.05
URL
www.globalhouse.co.th
CGR
Anti‐corruption
Level 2 (Declared)
Pornsawat Jirajarus Analyst no. 18228 [email protected] 66 (0) 2624‐6257
Improving profit and expansion will be catalysts in 2H16‐17E Robust profit growth in 1Q16 should have resulted largely from a gain in steel prices, in our view, which may be short‐lived. Nevertheless, we believe recovering same‐store sales, improving profitability from the increasing mix of house brands and new store rollouts, especially in Bangkok’s suburbs this year, should extend the improving profit trend in the following quarters. We retain our view that its lead in the middle‐to‐ low end home improvement market and the ample land bank for future expansion remain the key attractions. Moreover, the stock price at 1.2x of PE/EPS growth in 16E‐17E plus a potential earnings upgrade make GLOBAL look attractive for accumulation. Maintain a Buy rating. 1Q16 net profit doubled YoY, beat our forecast GLOBAL reported 1Q16 net profit of Bt452mn, up 108% YoY and 139% QoQ. The profit beat our forecast by 61% due largely to a 265 bps (+Bt137mn to GP) higher‐than‐estimated gross margin (+519 bps YoY to 19.5%), which we believe resulted from: 1) profit from rising steel prices (+c20% QoQ from shrinking supply after China closed down a number of steel mills in an effort to trim overcapacity; steel sales account for around 10%‐15% of GLOBAL’s total sales), and 2) the increasing mix of house brand products. Other positives were 1) 3% higher‐than‐expected sales (+Bt25mn to GP), 2) 4% lower‐than‐expected SG&A expenses (Bt27mn), and 3) 12% higher‐than‐expected other income (Bt18mn). Sales grew 14% YoY driven by 1) four new stores during the past twelve months (no new stores in 1Q16) and 2) +2.5% same‐store‐sales growth, which rebounded from a 4‐5% decline YoY in 2H15 on lessening cannibalization and pent‐up demand in the provinces. The EBITDA margin rose 455 bps YoY to 14.8%. The 1Q16 net profit accounts for 40% of our full‐year forecast. Positive trend should continue in 2H16 We expect that the gains from steel prices will be one‐off (assuming prices do not increase further). Nevertheless, other positive issues, e.g., recovering same‐store sales, the improving mix of house brand products, favorable sales of stores in border provinces and GLOBAL’s increasing market share in certain locations cause us to expect a continuation of the improving profit trend in the following quarters. New stores to be rolled out at Salaya and Patumthani in May‐June should help to significantly boost sales. GLOBAL expects to continue rolling out one new store per month going forward. Thus far, we maintain our forecast for 2% same‐ store‐sales growth this year but we may revise up our profit forecast after updating the outlook with management. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 15,561 702 0.23 ‐36.1% 0.16 4.71 2014 56.48 23.74 2.76 1.22 5.3% 24.5%
2015 16,864 881 0.25 9.9% 0.18 4.28
2016E 19,077 1,119 0.31 21.1% 0.21 4.34
2017E 22,884 1,481 0.40 32.3% 0.28 4.70
2018E 26,046 1,827 0.50 23.3% 0.35 5.14
2015 45.53 19.17 2.35 1.35 5.0% 25.3%
2016E 37.58 18.48 2.65 1.86 7.1% 27.4%
2017E 28.40 14.96 2.45 2.46 9.0% 24.6%
2018E 23.03 12.53 2.24 3.04 10.2% 18.9%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
Figure 1: Earnings results review Profit and Loss (Btmn) FY Ended 31 Dec Revenue Gross profit EBITDA Interest expense Other income Income tax Forex gain (loss) Other extraordinary Items Gn (Ls) from affiliates Net profit (loss) Normalized profit (loss) Reported EPS (THB) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt / equity (x) BVPS (Bt) ROE (%)
1Q15 4,515 648 478 (34) 149 (54) 0 (17) 0 217 234 0.07 14.4 10.3 4.6 2.8 14.0 0.5 4.7 4.9
2Q15 4,435 763 540 (33) 136 (66) 0 17 (0) 263 247 0.08 17.2 11.8 5.8 3.0 16.5 0.5 4.2 5.5
3Q15 3,796 670 467 (38) 149 (53) 16 26 (0) 211 185 0.06 17.6 11.8 5.4 2.3 12.4 0.5 4.2 6.0
4Q15 4,118 738 488 (40) 114 (46) (20) (22) 3 189 211 0.05 17.9 11.5 4.5 2.2 12.3 0.5 4.3 6.0
1Q16 % YoY % QoQ 5,155 14.2 25.2 1,008 55.5 36.5 789 64.9 61.8 (37) 8.3 (6.8) 173 16.4 52.2 (112) 106.8 144.5 0 n.m. n.m. 0 n.m. n.m. 3 n.m. n.m. 452 108.4 138.9 452 93.4 113.9 0.13 82.3 138.9 19.5 14.8 8.5 2.1 21.3 0.5 4.4 7.5
2015 16,864 2,819 1,973 (144) 547 (219) 0 0 0 881 876 0.25 16.7 11.3 5.1 2.2 13.7 0.5 4.3 6.0
2016E % YoY % YTD 19,077 8.4 27.0 3,265 19.7 30.9 2,350 16.5 33.6 (135) 8.6 27.5 618 9.8 28.0 (280) 24.5 40.0 0 n.m. n.m. 0 n.m. n.m. 0 n.m. n.m. 1,119 25.6 40.4 1,119 25.8 40.4 0.31 9.9 42.4 17.1 11.9 5.7 2.3 17.4 0.5 4.3 7.3
Source: GLOBAL, KT ZMICO Research
Figure 2: Sales growth
Figure 3: Store expansion Stores
Same-store sales growth
Sales growth
Number of stpres
New stores
100
50.0% 80
40.0% 30.0%
60
20.0% 40
10.0%
48
43
38 32
27 20
-20.0%
1Q16
2Q16E
4Q15
3Q15
2Q15
1Q15
4Q14
3Q14
2Q14
1Q14
4Q13
3Q13
2Q13
1Q13
4Q12
3Q12
-10.0%
2Q12
1Q12
0.0%
20
13
11
8 1
3
2
7
7
5
6
5
5
0 2009
2010
2011
2012
2013
2014
2015 2016F 2017F
Source: Company data, KT ZMICO estimates
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 3
Note: KT ZMICO has two major shareholders, Krungthai Bank PLC (KTB) and Seamico Securities PLC (ZMICO). Therefore, prior to making investment in the securities of KTB and ZMICO, investor should consider 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, BIGC, BJC. KT ZMICO is a co‐underwriter of TPBI.
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 3 of 3
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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.
Buy (16E TP Bt12.00)
Company update
Close Bt11.40
Commerce May 12, 2016
Beat forecast/Below forecast/In line
Better both in sales & margin Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
0.293
0.359
KT ZMICO vs. consensus Share data
5.8%
11.4%
Reuters / Bloomberg
GLOBAL.BK/GLOBAL TB
Paid‐up Shares (m)
3,484.28
Par (Bt)
1.00
Market cap (Bt bn / US$ m)
40.00/1,126.00
Foreign limit / actual (%)
49.00/1.83
52 week High / Low (Bt)
12.50/7.57
Avg. daily T/O (shares 000) NVDR (%)
3,806.00 1.12
Estimated free float (%)
33.07
Beta
1.05
URL
www.globalhouse.co.th
CGR
Anti‐corruption
Level 2 (Declared)
Pornsawat Jirajarus Analyst no. 18228 [email protected] 66 (0) 2624‐6257
Improving profit and expansion will be catalysts in 2H16‐17E Robust profit growth in 1Q16 should have resulted largely from a gain in steel prices, in our view, which may be short‐lived. Nevertheless, we believe recovering same‐store sales, improving profitability from the increasing mix of house brands and new store rollouts, especially in Bangkok’s suburbs this year, should extend the improving profit trend in the following quarters. We retain our view that its lead in the middle‐to‐ low end home improvement market and the ample land bank for future expansion remain the key attractions. Moreover, the stock price at 1.2x of PE/EPS growth in 16E‐17E plus a potential earnings upgrade make GLOBAL look attractive for accumulation. Maintain a Buy rating. 1Q16 net profit doubled YoY, beat our forecast GLOBAL reported 1Q16 net profit of Bt452mn, up 108% YoY and 139% QoQ. The profit beat our forecast by 61% due largely to a 265 bps (+Bt137mn to GP) higher‐than‐estimated gross margin (+519 bps YoY to 19.5%), which we believe resulted from: 1) profit from rising steel prices (+c20% QoQ from shrinking supply after China closed down a number of steel mills in an effort to trim overcapacity; steel sales account for around 10%‐15% of GLOBAL’s total sales), and 2) the increasing mix of house brand products. Other positives were 1) 3% higher‐than‐expected sales (+Bt25mn to GP), 2) 4% lower‐than‐expected SG&A expenses (Bt27mn), and 3) 12% higher‐than‐expected other income (Bt18mn). Sales grew 14% YoY driven by 1) four new stores during the past twelve months (no new stores in 1Q16) and 2) +2.5% same‐store‐sales growth, which rebounded from a 4‐5% decline YoY in 2H15 on lessening cannibalization and pent‐up demand in the provinces. The EBITDA margin rose 455 bps YoY to 14.8%. The 1Q16 net profit accounts for 40% of our full‐year forecast. Positive trend should continue in 2H16 We expect that the gains from steel prices will be one‐off (assuming prices do not increase further). Nevertheless, other positive issues, e.g., recovering same‐store sales, the improving mix of house brand products, favorable sales of stores in border provinces and GLOBAL’s increasing market share in certain locations cause us to expect a continuation of the improving profit trend in the following quarters. New stores to be rolled out at Salaya and Patumthani in May‐June should help to significantly boost sales. GLOBAL expects to continue rolling out one new store per month going forward. Thus far, we maintain our forecast for 2% same‐ store‐sales growth this year but we may revise up our profit forecast after updating the outlook with management. Financials and Valuation FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
2014 15,561 702 0.23 ‐36.1% 0.16 4.71 2014 56.48 23.74 2.76 1.22 5.3% 24.5%
2015 16,864 881 0.25 9.9% 0.18 4.28
2016E 19,077 1,119 0.31 21.1% 0.21 4.34
2017E 22,884 1,481 0.40 32.3% 0.28 4.70
2018E 26,046 1,827 0.50 23.3% 0.35 5.14
2015 45.53 19.17 2.35 1.35 5.0% 25.3%
2016E 37.58 18.48 2.65 1.86 7.1% 27.4%
2017E 28.40 14.96 2.45 2.46 9.0% 24.6%
2018E 23.03 12.53 2.24 3.04 10.2% 18.9%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
Figure 1: Earnings results review Profit and Loss (Btmn) FY Ended 31 Dec Revenue Gross profit EBITDA Interest expense Other income Income tax Forex gain (loss) Other extraordinary Items Gn (Ls) from affiliates Net profit (loss) Normalized profit (loss) Reported EPS (THB) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt / equity (x) BVPS (Bt) ROE (%)
1Q15 4,515 648 478 (34) 149 (54) 0 (17) 0 217 234 0.07 14.4 10.3 4.6 2.8 14.0 0.5 4.7 4.9
2Q15 4,435 763 540 (33) 136 (66) 0 17 (0) 263 247 0.08 17.2 11.8 5.8 3.0 16.5 0.5 4.2 5.5
3Q15 3,796 670 467 (38) 149 (53) 16 26 (0) 211 185 0.06 17.6 11.8 5.4 2.3 12.4 0.5 4.2 6.0
4Q15 4,118 738 488 (40) 114 (46) (20) (22) 3 189 211 0.05 17.9 11.5 4.5 2.2 12.3 0.5 4.3 6.0
1Q16 % YoY % QoQ 5,155 14.2 25.2 1,008 55.5 36.5 789 64.9 61.8 (37) 8.3 (6.8) 173 16.4 52.2 (112) 106.8 144.5 0 n.m. n.m. 0 n.m. n.m. 3 n.m. n.m. 452 108.4 138.9 452 93.4 113.9 0.13 82.3 138.9 19.5 14.8 8.5 2.1 21.3 0.5 4.4 7.5
2015 16,864 2,819 1,973 (144) 547 (219) 0 0 0 881 876 0.25 16.7 11.3 5.1 2.2 13.7 0.5 4.3 6.0
2016E % YoY % YTD 19,077 8.4 27.0 3,265 19.7 30.9 2,350 16.5 33.6 (135) 8.6 27.5 618 9.8 28.0 (280) 24.5 40.0 0 n.m. n.m. 0 n.m. n.m. 0 n.m. n.m. 1,119 25.6 40.4 1,119 25.8 40.4 0.31 9.9 42.4 17.1 11.9 5.7 2.3 17.4 0.5 4.3 7.3
Source: GLOBAL, KT ZMICO Research
Figure 2: Sales growth
Figure 3: Store expansion Stores
Same-store sales growth
Sales growth
Number of stpres
New stores
100
50.0% 80
40.0% 30.0%
60
20.0% 40
10.0%
48
43
38 32
27 20
-20.0%
1Q16
2Q16E
4Q15
3Q15
2Q15
1Q15
4Q14
3Q14
2Q14
1Q14
4Q13
3Q13
2Q13
1Q13
4Q12
3Q12
-10.0%
2Q12
1Q12
0.0%
20
13
11
8 1
3
2
7
7
5
6
5
5
0 2009
2010
2011
2012
2013
2014
2015 2016F 2017F
Source: Company data, KT ZMICO estimates
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 3
Note: KT ZMICO has two major shareholders, Krungthai Bank PLC (KTB) and Seamico Securities PLC (ZMICO). Therefore, prior to making investment in the securities of KTB and ZMICO, investor should consider 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, BIGC, BJC. KT ZMICO is a co‐underwriter of TPBI.
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 3 of 3
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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.
