Somboon Advance Technology
Somboon Advance Technology Outperform (15E TP Bt20.40)
Company Update
Close Bt16.50
Automotive July 29, 2015
Earnings upgrade/Earnings downgrade/ Overview unchanged
Seasonally weak quarter in 2Q15E
FY15
FY16
Consensus EPS (Bt)
1.773
1.975
KT ZMICO vs. consensus Share data
4.9%
5.3%
Reuters / Bloomberg
SAT.BK/SAT TB
Paid‐up Shares (m)
425.19
Par (Bt)
1.00
Softer‐than‐expected 2Q15E earnings cap near‐term share price We expect that SAT’s earnings performance this year will bottom out in 2Q15E. Its earnings should see an upturn in 2H15 thanks to more orders from new models, but the weaker than earlier expected 2Q15E results may post downside risk to our full‐year forecast. Although the recent fall in the share price opens more upside to our target price, we leave our OUTPERFORM rating unchanged. Seasonally weak 2Q15E earnings results We expect SAT to post a net profit of Bt64mn (EPS: Bt0.15) in 2Q15E, decreasing 50%YoY and 67%QoQ. Apart from the slowdown in overall auto output due to a series of public holidays, the company also has been adversely impacted by volume loss from production line modifications in preparation for a key client’s new one‐ton pickup model. This caused its overall capacity utilization to fall from the average of 69% in 1Q15 to 53%. With shine parts sales from one client’s accounting policy change, the gross margin should dive to only 12.4% from 17% a year earlier. Revise down output guidance SAT anticipates that overall output will recover HoH in 2H15E thanks to acceleration of the delivery of Toyota’s new pickup, Rivo. The company will also gain orders from its clients’ new models, which will be updated later. Nevertheless, with slower‐than‐expected domestic car sales, SAT lowered its guidance on 2015E auto output to 2.0mn units (+6%YoY), from 2.1mn units (+12%YoY) previously, in line with the FTI’s estimate.
Market cap (Bt bn / US$ m)
7.00/201.00
Foreign limit / actual (%)
49.00/24.30
52 week High / Low (Bt)
25.00/15.80
Downside risk on 2015E earnings forecast SAT guides that its sales will rebound strongly (over 30%QoQ) in 3Q15E given the rolling order seen from Toyota. The momentum is likely to continue in the last quarter with new orders from Big Truck. Nevertheless, as its margin in 2Q15E is likely to be softer than earlier expected, we see downside risk to our full‐year forecast. Financials and Valuation
Avg. daily T/O (shares 000) NVDR (%)
649.00 4.94
Estimated free float (%)
55.44
Beta
0.76
URL
www.satpcl.co.th
CGR
Waraporn Wiboonkanarak Analyst, no. 2482 [email protected] 66 (0) 2624‐6273
FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm. EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) EV/EBITDA (x) PBV (x) Dividend yield (%) ROE (%) Net gearing (%)
2012 9,410 804 2.36 2.30 80.08 0.97 12.21 2012 13.26 7.38 2.50 3.18 19.29 55.76
2013 8,973 966 2.27 1.91 (17.02) 0.75 11.47 2013 7.55 4.64 1.26 5.21 21.42 45.17
2014 8,084 650 1.53 1.53 (19.88) 0.60 12.27 2014 10.60 5.28 1.32 3.70 12.88 34.47
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 4
2015E 8,843 790 1.86 1.86 21.65 0.74 13.50 2015E 8.87 4.62 1.22 4.50 14.42 21.48
2016E 9,471 885 2.08 2.08 12.06 0.83 14.84 2016E 7.92 3.97 1.11 5.05 14.69 9.92
Figure 1: Earnings preview Profit and Loss Statement (Btmn) Fiscal Year‐Ended Dec. 2Q14 Revenue 1,881 Gross profit 327 SG&A (207) EBITDA 372 Interest expense (35) Other income 44 Income tax (11) Gain (Loss) from affiliates 9 Net profit (loss) 128 Normalized profit (loss) 127 Reported EPS (Bt) 0.30 Gross margin 17.4% EBITDA margin 19.8% Net margin 6.8% Current ratio (x) 1.41 Interest coverage (x) 4.67 Debt to equity (x) 0.99 BVPS 11.65 ROE 14.3%
1Q15 2,429 377 (177) 447 (33) 27 (13) 10 194 192 0.46 15.5% 18.4% 8.0% 1.45 6.99 0.89 12.73 12.9%
2Q15E 1,835 228 (169) 303 (32) 37 (5) 5 64 64 0.15 12.4% 16.5% 3.5% 1.41 3.00 0.92 12.49 11.9%
%QoQ ‐24.4% ‐39.7% ‐4.3% ‐32.3% ‐2.0% 37.2% ‐62.1% ‐49.4% ‐67.1% ‐66.8% ‐67.1% ‐3.1% ‐1.9% ‐4.5%
‐1.9%
%YoY ‐2.4% ‐30.4% ‐18.3% ‐18.5% ‐9.3% ‐16.6% ‐55.4% ‐41.8% ‐50.2% ‐49.7% ‐50.2% ‐5.0% ‐3.3% ‐3.3%
1H15E 4,264 605 (345) 750 (64) 63 (17) 15 258 256 0.61 14.2% 17.6% 6.0% 1.37 5.02 0.92 7.2% 12.49 11.9%
%YoY 6.9% ‐14.0% ‐12.2% ‐4.3% ‐15.6% ‐1.1% ‐45.2% ‐47.3% ‐13.1% ‐12.9% ‐13.1% ‐3.4% ‐2.1% ‐1.4%
2015E 8,843 1,601 (747) 1,784 (152) 117 (98) 71 790 791 1.86 18.1% 20.2% 8.9% 1.51 6.38 0.69 7.2% 13.50 14.4%
Source: Bloomberg and KTZMICO Research Auto output softened in 2Q15 Auto output in 2Q15 declined 5.5%YoY to 410,711 units, according to the Federation of Thai Industries (FTI), due to weaker domestic and export markets. Domestic car sales continued to head south to 158,230 units, down 27%YoY, thanks to weak purchasing power amidst the continuation of stricter car loan approvals. The export market also turned down by 8%YoY to 247,841 units due to the transition of the top player’s new pickup model. FTI again revised down whole year output target Overall auto output slumped 1.8%YoY to 935,251 units in 1H15. While the demand in overseas markets continued to grow (+2.9%YoY to 576,073 units), domestic demand has yet to improve (‐19.3%YoY to 356,017 units). This led the FTI to cut its auto production forecast for the local market by 11% to 850,000 units, increasing 12%YoY. As a result, the overall output target this year is revised down to 2.05mn units, up 9%YoY. Overall output will pick up in 2H15 We expect acceleration of auto output to be seen in 2H15 thanks to the full delivery of Toyota’s new pickup model and a series of new models from other companies. In addition, the new excise tax on vehicles, which is based on carbon dioxide emissions, is expected to boost local demand prior to the tax regime becoming effective early next year. With the slow pace of domestic recovery, we keep our output target unchanged at 2.0mn units, surging 6%YoY. REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 4
YTD %YoY (%2015E) 9.4% 48.2% 12.9% 37.8% 6.0% 46.2% 8.4% 42.1% 3.7% 42.3% 28.0% 54.5% 41.4% 17.8% 20.0% 20.9% 21.5% 32.6% 21.6% 32.4% 21.5% 32.6%
10.0%
Figure 2: Auto market '000 units
Monthly auto output
'000 units
300
300
250
250
200
200
150
150
100
100
50
50
0
Monthly auto industry
‐ Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2011 2012 2013 2014 2015
Jan‐10
Jan‐11
Domestic sales
Jan‐12
Jan‐13
Jan‐14
Export
Jan‐15 Production
Source: The Federation of Thai Industries
Figure 3: PER and PBV band
PER (x)
25
3.0
20
2.5
+2 S.D.
+1 S.D.
15
2.0
+1 S.D.
10
PBV (x)
3.5
1.5
Average
Average
1.0
‐1 S.D.
0.5
Jan‐05 Aug‐05 Feb‐06 Sep‐06 Mar‐07 Sep‐07 Apr‐08 Oct‐08 Apr‐09 Oct‐09 May‐10 Nov‐10 May‐11 Nov‐11 Jun‐12 Dec‐12 Jun‐13 Dec‐13 Jul‐14 Jan‐15 Jul‐15
0
-1 S.D.
0.0
Jan‐05 Aug‐05 Feb‐06 Sep‐06 Mar‐07 Sep‐07 Apr‐08 Oct‐08 Apr‐09 Oct‐09 May‐10 Nov‐10 May‐11 Nov‐11 Jun‐12 Dec‐12 Jun‐13 Dec‐13 Jul‐14 Jan‐15 Jul‐15
5
Source: Bloomberg and KTZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 4
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 return over six months period because of specific catalysts UNDERPERFORM: Expecting total returns between ‐10% to +15%; returns expected to below market return over six months period because of 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 4 of 4
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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.
Company Update
Close Bt16.50
Automotive July 29, 2015
Earnings upgrade/Earnings downgrade/ Overview unchanged
Seasonally weak quarter in 2Q15E
FY15
FY16
Consensus EPS (Bt)
1.773
1.975
KT ZMICO vs. consensus Share data
4.9%
5.3%
Reuters / Bloomberg
SAT.BK/SAT TB
Paid‐up Shares (m)
425.19
Par (Bt)
1.00
Softer‐than‐expected 2Q15E earnings cap near‐term share price We expect that SAT’s earnings performance this year will bottom out in 2Q15E. Its earnings should see an upturn in 2H15 thanks to more orders from new models, but the weaker than earlier expected 2Q15E results may post downside risk to our full‐year forecast. Although the recent fall in the share price opens more upside to our target price, we leave our OUTPERFORM rating unchanged. Seasonally weak 2Q15E earnings results We expect SAT to post a net profit of Bt64mn (EPS: Bt0.15) in 2Q15E, decreasing 50%YoY and 67%QoQ. Apart from the slowdown in overall auto output due to a series of public holidays, the company also has been adversely impacted by volume loss from production line modifications in preparation for a key client’s new one‐ton pickup model. This caused its overall capacity utilization to fall from the average of 69% in 1Q15 to 53%. With shine parts sales from one client’s accounting policy change, the gross margin should dive to only 12.4% from 17% a year earlier. Revise down output guidance SAT anticipates that overall output will recover HoH in 2H15E thanks to acceleration of the delivery of Toyota’s new pickup, Rivo. The company will also gain orders from its clients’ new models, which will be updated later. Nevertheless, with slower‐than‐expected domestic car sales, SAT lowered its guidance on 2015E auto output to 2.0mn units (+6%YoY), from 2.1mn units (+12%YoY) previously, in line with the FTI’s estimate.
Market cap (Bt bn / US$ m)
7.00/201.00
Foreign limit / actual (%)
49.00/24.30
52 week High / Low (Bt)
25.00/15.80
Downside risk on 2015E earnings forecast SAT guides that its sales will rebound strongly (over 30%QoQ) in 3Q15E given the rolling order seen from Toyota. The momentum is likely to continue in the last quarter with new orders from Big Truck. Nevertheless, as its margin in 2Q15E is likely to be softer than earlier expected, we see downside risk to our full‐year forecast. Financials and Valuation
Avg. daily T/O (shares 000) NVDR (%)
649.00 4.94
Estimated free float (%)
55.44
Beta
0.76
URL
www.satpcl.co.th
CGR
Waraporn Wiboonkanarak Analyst, no. 2482 [email protected] 66 (0) 2624‐6273
FY Ended 31 Dec Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm. EPS (Bt) EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Dec PER (x) EV/EBITDA (x) PBV (x) Dividend yield (%) ROE (%) Net gearing (%)
2012 9,410 804 2.36 2.30 80.08 0.97 12.21 2012 13.26 7.38 2.50 3.18 19.29 55.76
2013 8,973 966 2.27 1.91 (17.02) 0.75 11.47 2013 7.55 4.64 1.26 5.21 21.42 45.17
2014 8,084 650 1.53 1.53 (19.88) 0.60 12.27 2014 10.60 5.28 1.32 3.70 12.88 34.47
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 4
2015E 8,843 790 1.86 1.86 21.65 0.74 13.50 2015E 8.87 4.62 1.22 4.50 14.42 21.48
2016E 9,471 885 2.08 2.08 12.06 0.83 14.84 2016E 7.92 3.97 1.11 5.05 14.69 9.92
Figure 1: Earnings preview Profit and Loss Statement (Btmn) Fiscal Year‐Ended Dec. 2Q14 Revenue 1,881 Gross profit 327 SG&A (207) EBITDA 372 Interest expense (35) Other income 44 Income tax (11) Gain (Loss) from affiliates 9 Net profit (loss) 128 Normalized profit (loss) 127 Reported EPS (Bt) 0.30 Gross margin 17.4% EBITDA margin 19.8% Net margin 6.8% Current ratio (x) 1.41 Interest coverage (x) 4.67 Debt to equity (x) 0.99 BVPS 11.65 ROE 14.3%
1Q15 2,429 377 (177) 447 (33) 27 (13) 10 194 192 0.46 15.5% 18.4% 8.0% 1.45 6.99 0.89 12.73 12.9%
2Q15E 1,835 228 (169) 303 (32) 37 (5) 5 64 64 0.15 12.4% 16.5% 3.5% 1.41 3.00 0.92 12.49 11.9%
%QoQ ‐24.4% ‐39.7% ‐4.3% ‐32.3% ‐2.0% 37.2% ‐62.1% ‐49.4% ‐67.1% ‐66.8% ‐67.1% ‐3.1% ‐1.9% ‐4.5%
‐1.9%
%YoY ‐2.4% ‐30.4% ‐18.3% ‐18.5% ‐9.3% ‐16.6% ‐55.4% ‐41.8% ‐50.2% ‐49.7% ‐50.2% ‐5.0% ‐3.3% ‐3.3%
1H15E 4,264 605 (345) 750 (64) 63 (17) 15 258 256 0.61 14.2% 17.6% 6.0% 1.37 5.02 0.92 7.2% 12.49 11.9%
%YoY 6.9% ‐14.0% ‐12.2% ‐4.3% ‐15.6% ‐1.1% ‐45.2% ‐47.3% ‐13.1% ‐12.9% ‐13.1% ‐3.4% ‐2.1% ‐1.4%
2015E 8,843 1,601 (747) 1,784 (152) 117 (98) 71 790 791 1.86 18.1% 20.2% 8.9% 1.51 6.38 0.69 7.2% 13.50 14.4%
Source: Bloomberg and KTZMICO Research Auto output softened in 2Q15 Auto output in 2Q15 declined 5.5%YoY to 410,711 units, according to the Federation of Thai Industries (FTI), due to weaker domestic and export markets. Domestic car sales continued to head south to 158,230 units, down 27%YoY, thanks to weak purchasing power amidst the continuation of stricter car loan approvals. The export market also turned down by 8%YoY to 247,841 units due to the transition of the top player’s new pickup model. FTI again revised down whole year output target Overall auto output slumped 1.8%YoY to 935,251 units in 1H15. While the demand in overseas markets continued to grow (+2.9%YoY to 576,073 units), domestic demand has yet to improve (‐19.3%YoY to 356,017 units). This led the FTI to cut its auto production forecast for the local market by 11% to 850,000 units, increasing 12%YoY. As a result, the overall output target this year is revised down to 2.05mn units, up 9%YoY. Overall output will pick up in 2H15 We expect acceleration of auto output to be seen in 2H15 thanks to the full delivery of Toyota’s new pickup model and a series of new models from other companies. In addition, the new excise tax on vehicles, which is based on carbon dioxide emissions, is expected to boost local demand prior to the tax regime becoming effective early next year. With the slow pace of domestic recovery, we keep our output target unchanged at 2.0mn units, surging 6%YoY. REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 4
YTD %YoY (%2015E) 9.4% 48.2% 12.9% 37.8% 6.0% 46.2% 8.4% 42.1% 3.7% 42.3% 28.0% 54.5% 41.4% 17.8% 20.0% 20.9% 21.5% 32.6% 21.6% 32.4% 21.5% 32.6%
10.0%
Figure 2: Auto market '000 units
Monthly auto output
'000 units
300
300
250
250
200
200
150
150
100
100
50
50
0
Monthly auto industry
‐ Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2011 2012 2013 2014 2015
Jan‐10
Jan‐11
Domestic sales
Jan‐12
Jan‐13
Jan‐14
Export
Jan‐15 Production
Source: The Federation of Thai Industries
Figure 3: PER and PBV band
PER (x)
25
3.0
20
2.5
+2 S.D.
+1 S.D.
15
2.0
+1 S.D.
10
PBV (x)
3.5
1.5
Average
Average
1.0
‐1 S.D.
0.5
Jan‐05 Aug‐05 Feb‐06 Sep‐06 Mar‐07 Sep‐07 Apr‐08 Oct‐08 Apr‐09 Oct‐09 May‐10 Nov‐10 May‐11 Nov‐11 Jun‐12 Dec‐12 Jun‐13 Dec‐13 Jul‐14 Jan‐15 Jul‐15
0
-1 S.D.
0.0
Jan‐05 Aug‐05 Feb‐06 Sep‐06 Mar‐07 Sep‐07 Apr‐08 Oct‐08 Apr‐09 Oct‐09 May‐10 Nov‐10 May‐11 Nov‐11 Jun‐12 Dec‐12 Jun‐13 Dec‐13 Jul‐14 Jan‐15 Jul‐15
5
Source: Bloomberg and KTZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 4
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 return over six months period because of specific catalysts UNDERPERFORM: Expecting total returns between ‐10% to +15%; returns expected to below market return over six months period because of 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 4 of 4
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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.
