Stronger 3Q16 earnings; potential capacity addition on the upside
EDL‐Generation Buy (16E TP LAK9,816/US$1.20)
Earnings Review
Close LAK4,900 / US$0.60 November 15, 2016
Beat forecast/ Below forecast / In line
Stronger 3Q16 earnings; potential capacity addition on the upside Price Performance (%)
Nov‐16
Apr‐16
Sep‐15
Feb‐15
EDL‐Gen
Dec‐13
Oct‐12
May‐13
Mar‐12
Aug‐11
Jan‐11
LSX
Jul‐14
120% 100% 80% 60% 40% 20% 0% ‐20%
FY16 464.13
FY17 571.88
KT ZMICO vs. consensus Share data
0.0
0.0
Reuters / Bloomberg
EDL.BK/EDL LS
Consensus EPS (Kip)
Paid‐up Shares (m)
1,679.30
Par (USD, Kip)
0.49 / 4,000
Market cap (Kip bn/USDmn)
8,228.59 /1,008.838
Foreign limit / actual (%)
25.00 / 13.8328
52 week High / Low (Kip)
6,350 /4,700
Avg. daily T/O (shares 000) Estimated free float (%)
41.624 11.1672
Beta
0.83
URL
www.edlgen.com.la
Note: BCEL‐KT Securities is the underwriter of EDL‐Gen. BCEL‐KT Securities Co., Ltd. is a joint venture company between BCEL Bank and KT ZMICO Securities (Thailand).
KT ZMICO is a selling agent of EDL‐Gen’s capital increase totaling 453.09mn shares through a rights offering and public offering with the subscription period during 28 Aug. 2015 – 8 Sept. 2015. Patcharin Karsemarnuntana Analyst, no 17834 [email protected] 66 (0) 2695‐5837
Despite the possible downward revision on the 2016‐18E earnings estimates, its earnings prospects are on an accelerating trend in the years ahead, with the contribution ramp up from the newly transferred power assets as the growth catalyst; thus, we maintain our Buy rating, with its share price having largely priced in the two weak operation years in 2015‐ 16E, causing it to trade at 0.08x 2017E PBV/ROE (vs. peers’ average of 0.12x). Meanwhile, its potential capacity expansion beyond the projects in the pipeline (“To do list” and “Wish list” projects) is on the upside, facilitated by the recent US$‐debentures issuance. Reported stronger NP in 3Q16 despite the forex loss impact
Source: Bloomberg, KT ZMICO Research
Undemanding valuation with negative pressure largely priced in; potential capacity expansion on the upside
EDL‐Gen reported 3Q16 NP of 267,922mn kip (‐2% YoY, +52% QoQ), despite the forex loss of 20,202mn kip in the quarter. At the same time, it posted a stronger core profit of 288,124mn kip in 3Q16 (+2.5% YoY, +77% QoQ), with the improving performance at the wholly‐owned HPPs and IPPs as the main catalyst QoQ following the higher power generation to 863.5GWh (+42.5% QoQ) and to 622.8GWh on an equity basis (+27% QoQ), respectively. Note that HPPs were the major profit contributor in 3Q16, accounting for 71% of total core profit (approximately 203,224mn kip), with the rest from IPPs (84,900mn kip). Possible downside risk on 2016E NP forecast Given that the 9M16 core profit and NP both accounted for 67% of our full‐year forecasts, we see possible downside risk on the 2016E earnings estimates, with the 9M16 power generation at both HPPs and IPPs lagging behind the plan by 13% and 11%, respectively, due to unfavorable weather conditions and conservative water management, along with seasonally low electricity output in 4Q. We will also revisit our 2017‐18E earnings forecasts, with a review of each project’s power generation, as well as the scheduled kick‐off of contributions from new power assets and larger finance costs to reflect the new US$312mn debentures issued in Sept‐2016. Meanwhile, the rollover of the TP to 2017E is underway. Financials and Valuation FY Ended 31 Dec 2014 Sales (Kipmn) 839,193 907,684 Net profit (Kipmn) 740.36 EPS (Kip) ‐weighted 740.23 EPS (Kip) ‐ FD (6.6) EPS growth – FD (%) 450 DPS (Kip) 5,155 BV (Kip) FY Ended 31 Dec 2014 PER (x) 6.6 6.1 EV/EBITDA (x) 1.0 PBV (x) 9.2 Dividend yield (%) 14.7 ROE (%) 14.6 Net gearing (%)
2015 847,759 640,839 456.44 381.61 (48.4) 260 5,421 2015 12.8 9.8 0.9 5.3 8.3 13.8
2016E 1,315,325 779,411 464.13 464.13 21.6 278 5,607 2016E 10.6 8.9 0.9 5.7 8.4 48.7
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 1,586,553 960,359 571.88 571.88 23.2 343 5,836 2017E 8.6 7.7 0.8 7.0 10.0 57.6
2018E 1,947,247 1,086,545 647.02 647.02 13.1 388 6,095 2018E 7.6 7.6 0.8 7.9 10.8 78.9
Figure 1: EDL‐Gen’s 3Q16 and 9M16 earnings review Unit: mnkip Electricity sales Cost of sales Gross profit Profit from associates Other income Exchange gains (loss) Total revenue Gain before expenses Admin. expenses Finance costs Income tax Net profit Core profit Reported EPS (kip) GPM* (%) EBITDA margin (%) Net profit margin (%) ROE (%) Debt/Equity ratio (x)
3Q15
2Q16
3Q16
% YoY
% QoQ
9M15
9M16
% YoY
2015
2016E
% YoY
% YTD
303,607 (80,896) 222,711 119,153 3,175 (6,856) 419,079 338,183 (30,030) (16,754) (17,244) 274,155 281,011 185.6
278,678 (114,840) 163,838 54,894 1,793 13,654 349,019 234,179 (20,697) (22,862) (13,855) 176,765 163,111 105.26
389,860 (112,096) 277,764 84,900 1,147 (20,202) 455,705 343,609 (22,835) (32,493) (20,359) 267,922 288,124 159.54
28.4 38.6 24.7 (28.7) (63.9) 194.7 8.7 1.6 (24.0) 93.9 18.1 (2.3) 2.5 (14.1)
39.9 (2.4) 69.5 54.7 (36.0) nm 30.6 46.7 10.3 42.1 46.9 51.6 76.6 51.6
625,104 (201,967) 423,137 263,360 14,611 (10,169) 892,906 690,939 (82,985) (45,067) (30,167) 532,720 542,889 396.52
954,856 (366,380) 588,476 120,929 6,328 (1,584) 1,080,529 714,149 (66,252) (83,832) (44,656) 519,409 520,993 309.30
52.8 81.4 39.1 (54.1) (56.7) (84.4) 21.0 3.4 (20.2) 86.0 48.0 (2.5) (4.0) (22.0)
847,759 (269,374) 578,385 286,218 16,198 (9,975) 1,140,200 870,826 (121,027) (61,937) (39,954) 640,839 650,814 456.44
1,315,325 (397,561) 917,764 318,592 11,223 (351) 1,644,790 1,247,229 (146,911) (260,713) (60,193) 779,411 779,762 464.13
55.2 47.6 58.7 11.3 (30.7) (96.5) 44.3 43.2 21.4 320.9 50.7 21.6 19.8 1.7
72.6 92.2 64.1 38.0 56.4 452 65.7 57.3 45.1 32.2 74.2 66.6 66.8 66.6
73.4 91.1 65.4 14.4 0.28
58.8 83.8 50.6 7.7 0.72
71.2 93.0 58.8 11.7 0.98
67.7 87.2 59.7 7.9 0.28
61.6 88.9 48.1 7.6 0.98
70.3 84.9 56.2 8.3 0.27
71.4 87.5 47.4 8.4 0.77
Note: *GPM (gross profit margin) = gross profit from operation / electricity sales 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, TPOLY, M‐CHAI, TFD, SUTHA, CI.
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
KT ZMICO Securities Company Limited Head Office
WWW.KTZMICO.COM
8th, 15th‐17th,19th, 21st Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok, Thailand 10500 Telephone: (66‐2) 695‐5000 Fax: (66‐2) 695‐5173 KT ZMICO Connect 662 695 5555
Central World Branch
Amarin Branch
22nd Floor, Amarin Building, 496‐502 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 018‐6200 Fax: (66‐2) 018‐6298, (66‐2) 018‐6299
8th Floor, Ton Son Tower, 900 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 626‐6000 Fax: (66‐2) 626‐6111
Phaholyothin Branch
Sindhorn Branch
Viphavadee Branch
2nd Floor, Sindhorn Tower 1, 130‐132 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 627‐3550 Fax: (66‐2) 627‐3582, 627‐3600
G Floor, Lao Peng Nguan 1 Bldg., 333 Soi Cheypuand, Viphavadee‐Rangsit Road, Ladyao, Jatujak, Bangkok 10900 Telephone: (66‐2) 013‐8600 Fax: (66‐2) 618‐8569
BangKhae Branch
Chiang Mai Branch
Pak Chong Branch
999/9 The Offices at Central World, 16th Fl., Rama 1 Rd, Pathumwan, Bangkok 10330 Telephone: (66‐2) 264‐5888 Fax: (66‐2) 264 5899
1291/1, Shinnawatra Tower II, 3rd Floor, Phaholyothin Road, Phayathai, Bangkok 10400 Telephone: (66‐2) 686‐1500 Fax: (66‐2) 686‐1666
Ploenchit Branch
518 The Mall Group Building Bangkhae Branch, 6th Floor, Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Telephone: (66‐2) 454‐9979 Fax: (66‐2) 454‐9970
422/49 Changklan Road, Changklan Subdistrict, Amphoe Meuang, Chiang Mai 50100 Telephone: (053) 270‐072 Fax: (053) 272‐618
173 175, Mittapap Road, Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Telephone: (044) 279‐511 Fax: (044) 279‐574
Korat Branch
Khon Kaen Branch
Chonburi Branch
624/9 Changphuek Road, T.Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171
5th Floor, Charoen Thani Princess Hotel, 260 Srichan Road, T. Naimuang, A. Muang, Khon Kaen 40000 Telephone: (043) 389‐171‐193 Fax: (043) 389‐209
4th Floor, Forum Plaza Bldg., 870/52 Sukhumvit Road, T. Bangplasoy, A. Muang, Cholburi 20000 Telephone: (038) 287‐635 Fax: (038) 287‐637
Pattaya Branch
Chachoengsao Branch
Hat Yai Branch
Easy Point 2, 392/65 Moo.9, T.Nong Prue, A. Bang Lamung, Chonburi 20260 Telephone: (038) 420‐965 Fax: (038) 420‐968
108/34‐36 Mahajakkrapad Road, T.Namuang, A.Muang, Chachoengsao 24000 Telephone: (038) 813‐088 Fax: (038) 813‐099
200/301, 200/303 JULDIS HATYAI PLAZA Floor 3 , Niphat‐Uthit 3 Rd, Hatyai Songkhla 90110 Telephone: (074) 355530‐3 Fax: (074) 355534
Phuket Branch
22/61‐63, Luang Por Wat Chalong Road, Talat Yai, Mueang Phuket, Phuket 83000 Telephone: (076) 222‐811, (076) 222‐683 Fax: (076) 222‐861
Phitsanulok Branch
227/171 Borom Trilokkanat Road, Muang, Phitsanulok 65000 Telephone: 055‐219‐255 to 8 Fax: 055‐219‐259
Nakhon Pathom
Cyber Branch Ayutthaya
Cyber Branch @ North Nana
Cyber Branch Chiangrai
KrungThai Bank, Rojana Branch 253 Moo 5, Rojana Road, Phai Ling, Phra Nakhon Si Ayutthaya, Phra Nakhonsi Ayutthaya, 13000 Telephone: 035‐242‐477 Fax: 035‐242‐476
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd., Klong Toey Nua Subdistrict , Wattana District , Bangkok 10110 Telephone: 083‐490‐2871
River Hotel (Building 3rd),1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
KrungThai Bank, Hayaek Phokhun Mengrai Branch 116/19 Moo 19, Highway 110 Road, Rop Wiang, Mueang Chiang Rai, Chiang Rai, 57000 Telephone: 053‐715‐067 Fax: 053‐715‐068
Earnings Review
Close LAK4,900 / US$0.60 November 15, 2016
Beat forecast/ Below forecast / In line
Stronger 3Q16 earnings; potential capacity addition on the upside Price Performance (%)
Nov‐16
Apr‐16
Sep‐15
Feb‐15
EDL‐Gen
Dec‐13
Oct‐12
May‐13
Mar‐12
Aug‐11
Jan‐11
LSX
Jul‐14
120% 100% 80% 60% 40% 20% 0% ‐20%
FY16 464.13
FY17 571.88
KT ZMICO vs. consensus Share data
0.0
0.0
Reuters / Bloomberg
EDL.BK/EDL LS
Consensus EPS (Kip)
Paid‐up Shares (m)
1,679.30
Par (USD, Kip)
0.49 / 4,000
Market cap (Kip bn/USDmn)
8,228.59 /1,008.838
Foreign limit / actual (%)
25.00 / 13.8328
52 week High / Low (Kip)
6,350 /4,700
Avg. daily T/O (shares 000) Estimated free float (%)
41.624 11.1672
Beta
0.83
URL
www.edlgen.com.la
Note: BCEL‐KT Securities is the underwriter of EDL‐Gen. BCEL‐KT Securities Co., Ltd. is a joint venture company between BCEL Bank and KT ZMICO Securities (Thailand).
KT ZMICO is a selling agent of EDL‐Gen’s capital increase totaling 453.09mn shares through a rights offering and public offering with the subscription period during 28 Aug. 2015 – 8 Sept. 2015. Patcharin Karsemarnuntana Analyst, no 17834 [email protected] 66 (0) 2695‐5837
Despite the possible downward revision on the 2016‐18E earnings estimates, its earnings prospects are on an accelerating trend in the years ahead, with the contribution ramp up from the newly transferred power assets as the growth catalyst; thus, we maintain our Buy rating, with its share price having largely priced in the two weak operation years in 2015‐ 16E, causing it to trade at 0.08x 2017E PBV/ROE (vs. peers’ average of 0.12x). Meanwhile, its potential capacity expansion beyond the projects in the pipeline (“To do list” and “Wish list” projects) is on the upside, facilitated by the recent US$‐debentures issuance. Reported stronger NP in 3Q16 despite the forex loss impact
Source: Bloomberg, KT ZMICO Research
Undemanding valuation with negative pressure largely priced in; potential capacity expansion on the upside
EDL‐Gen reported 3Q16 NP of 267,922mn kip (‐2% YoY, +52% QoQ), despite the forex loss of 20,202mn kip in the quarter. At the same time, it posted a stronger core profit of 288,124mn kip in 3Q16 (+2.5% YoY, +77% QoQ), with the improving performance at the wholly‐owned HPPs and IPPs as the main catalyst QoQ following the higher power generation to 863.5GWh (+42.5% QoQ) and to 622.8GWh on an equity basis (+27% QoQ), respectively. Note that HPPs were the major profit contributor in 3Q16, accounting for 71% of total core profit (approximately 203,224mn kip), with the rest from IPPs (84,900mn kip). Possible downside risk on 2016E NP forecast Given that the 9M16 core profit and NP both accounted for 67% of our full‐year forecasts, we see possible downside risk on the 2016E earnings estimates, with the 9M16 power generation at both HPPs and IPPs lagging behind the plan by 13% and 11%, respectively, due to unfavorable weather conditions and conservative water management, along with seasonally low electricity output in 4Q. We will also revisit our 2017‐18E earnings forecasts, with a review of each project’s power generation, as well as the scheduled kick‐off of contributions from new power assets and larger finance costs to reflect the new US$312mn debentures issued in Sept‐2016. Meanwhile, the rollover of the TP to 2017E is underway. Financials and Valuation FY Ended 31 Dec 2014 Sales (Kipmn) 839,193 907,684 Net profit (Kipmn) 740.36 EPS (Kip) ‐weighted 740.23 EPS (Kip) ‐ FD (6.6) EPS growth – FD (%) 450 DPS (Kip) 5,155 BV (Kip) FY Ended 31 Dec 2014 PER (x) 6.6 6.1 EV/EBITDA (x) 1.0 PBV (x) 9.2 Dividend yield (%) 14.7 ROE (%) 14.6 Net gearing (%)
2015 847,759 640,839 456.44 381.61 (48.4) 260 5,421 2015 12.8 9.8 0.9 5.3 8.3 13.8
2016E 1,315,325 779,411 464.13 464.13 21.6 278 5,607 2016E 10.6 8.9 0.9 5.7 8.4 48.7
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
2017E 1,586,553 960,359 571.88 571.88 23.2 343 5,836 2017E 8.6 7.7 0.8 7.0 10.0 57.6
2018E 1,947,247 1,086,545 647.02 647.02 13.1 388 6,095 2018E 7.6 7.6 0.8 7.9 10.8 78.9
Figure 1: EDL‐Gen’s 3Q16 and 9M16 earnings review Unit: mnkip Electricity sales Cost of sales Gross profit Profit from associates Other income Exchange gains (loss) Total revenue Gain before expenses Admin. expenses Finance costs Income tax Net profit Core profit Reported EPS (kip) GPM* (%) EBITDA margin (%) Net profit margin (%) ROE (%) Debt/Equity ratio (x)
3Q15
2Q16
3Q16
% YoY
% QoQ
9M15
9M16
% YoY
2015
2016E
% YoY
% YTD
303,607 (80,896) 222,711 119,153 3,175 (6,856) 419,079 338,183 (30,030) (16,754) (17,244) 274,155 281,011 185.6
278,678 (114,840) 163,838 54,894 1,793 13,654 349,019 234,179 (20,697) (22,862) (13,855) 176,765 163,111 105.26
389,860 (112,096) 277,764 84,900 1,147 (20,202) 455,705 343,609 (22,835) (32,493) (20,359) 267,922 288,124 159.54
28.4 38.6 24.7 (28.7) (63.9) 194.7 8.7 1.6 (24.0) 93.9 18.1 (2.3) 2.5 (14.1)
39.9 (2.4) 69.5 54.7 (36.0) nm 30.6 46.7 10.3 42.1 46.9 51.6 76.6 51.6
625,104 (201,967) 423,137 263,360 14,611 (10,169) 892,906 690,939 (82,985) (45,067) (30,167) 532,720 542,889 396.52
954,856 (366,380) 588,476 120,929 6,328 (1,584) 1,080,529 714,149 (66,252) (83,832) (44,656) 519,409 520,993 309.30
52.8 81.4 39.1 (54.1) (56.7) (84.4) 21.0 3.4 (20.2) 86.0 48.0 (2.5) (4.0) (22.0)
847,759 (269,374) 578,385 286,218 16,198 (9,975) 1,140,200 870,826 (121,027) (61,937) (39,954) 640,839 650,814 456.44
1,315,325 (397,561) 917,764 318,592 11,223 (351) 1,644,790 1,247,229 (146,911) (260,713) (60,193) 779,411 779,762 464.13
55.2 47.6 58.7 11.3 (30.7) (96.5) 44.3 43.2 21.4 320.9 50.7 21.6 19.8 1.7
72.6 92.2 64.1 38.0 56.4 452 65.7 57.3 45.1 32.2 74.2 66.6 66.8 66.6
73.4 91.1 65.4 14.4 0.28
58.8 83.8 50.6 7.7 0.72
71.2 93.0 58.8 11.7 0.98
67.7 87.2 59.7 7.9 0.28
61.6 88.9 48.1 7.6 0.98
70.3 84.9 56.2 8.3 0.27
71.4 87.5 47.4 8.4 0.77
Note: *GPM (gross profit margin) = gross profit from operation / electricity sales 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, TPOLY, M‐CHAI, TFD, SUTHA, CI.
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
KT ZMICO Securities Company Limited Head Office
WWW.KTZMICO.COM
8th, 15th‐17th,19th, 21st Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok, Thailand 10500 Telephone: (66‐2) 695‐5000 Fax: (66‐2) 695‐5173 KT ZMICO Connect 662 695 5555
Central World Branch
Amarin Branch
22nd Floor, Amarin Building, 496‐502 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 018‐6200 Fax: (66‐2) 018‐6298, (66‐2) 018‐6299
8th Floor, Ton Son Tower, 900 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 626‐6000 Fax: (66‐2) 626‐6111
Phaholyothin Branch
Sindhorn Branch
Viphavadee Branch
2nd Floor, Sindhorn Tower 1, 130‐132 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 627‐3550 Fax: (66‐2) 627‐3582, 627‐3600
G Floor, Lao Peng Nguan 1 Bldg., 333 Soi Cheypuand, Viphavadee‐Rangsit Road, Ladyao, Jatujak, Bangkok 10900 Telephone: (66‐2) 013‐8600 Fax: (66‐2) 618‐8569
BangKhae Branch
Chiang Mai Branch
Pak Chong Branch
999/9 The Offices at Central World, 16th Fl., Rama 1 Rd, Pathumwan, Bangkok 10330 Telephone: (66‐2) 264‐5888 Fax: (66‐2) 264 5899
1291/1, Shinnawatra Tower II, 3rd Floor, Phaholyothin Road, Phayathai, Bangkok 10400 Telephone: (66‐2) 686‐1500 Fax: (66‐2) 686‐1666
Ploenchit Branch
518 The Mall Group Building Bangkhae Branch, 6th Floor, Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Telephone: (66‐2) 454‐9979 Fax: (66‐2) 454‐9970
422/49 Changklan Road, Changklan Subdistrict, Amphoe Meuang, Chiang Mai 50100 Telephone: (053) 270‐072 Fax: (053) 272‐618
173 175, Mittapap Road, Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Telephone: (044) 279‐511 Fax: (044) 279‐574
Korat Branch
Khon Kaen Branch
Chonburi Branch
624/9 Changphuek Road, T.Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171
5th Floor, Charoen Thani Princess Hotel, 260 Srichan Road, T. Naimuang, A. Muang, Khon Kaen 40000 Telephone: (043) 389‐171‐193 Fax: (043) 389‐209
4th Floor, Forum Plaza Bldg., 870/52 Sukhumvit Road, T. Bangplasoy, A. Muang, Cholburi 20000 Telephone: (038) 287‐635 Fax: (038) 287‐637
Pattaya Branch
Chachoengsao Branch
Hat Yai Branch
Easy Point 2, 392/65 Moo.9, T.Nong Prue, A. Bang Lamung, Chonburi 20260 Telephone: (038) 420‐965 Fax: (038) 420‐968
108/34‐36 Mahajakkrapad Road, T.Namuang, A.Muang, Chachoengsao 24000 Telephone: (038) 813‐088 Fax: (038) 813‐099
200/301, 200/303 JULDIS HATYAI PLAZA Floor 3 , Niphat‐Uthit 3 Rd, Hatyai Songkhla 90110 Telephone: (074) 355530‐3 Fax: (074) 355534
Phuket Branch
22/61‐63, Luang Por Wat Chalong Road, Talat Yai, Mueang Phuket, Phuket 83000 Telephone: (076) 222‐811, (076) 222‐683 Fax: (076) 222‐861
Phitsanulok Branch
227/171 Borom Trilokkanat Road, Muang, Phitsanulok 65000 Telephone: 055‐219‐255 to 8 Fax: 055‐219‐259
Nakhon Pathom
Cyber Branch Ayutthaya
Cyber Branch @ North Nana
Cyber Branch Chiangrai
KrungThai Bank, Rojana Branch 253 Moo 5, Rojana Road, Phai Ling, Phra Nakhon Si Ayutthaya, Phra Nakhonsi Ayutthaya, 13000 Telephone: 035‐242‐477 Fax: 035‐242‐476
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd., Klong Toey Nua Subdistrict , Wattana District , Bangkok 10110 Telephone: 083‐490‐2871
River Hotel (Building 3rd),1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
KrungThai Bank, Hayaek Phokhun Mengrai Branch 116/19 Moo 19, Highway 110 Road, Rop Wiang, Mueang Chiang Rai, Chiang Rai, 57000 Telephone: 053‐715‐067 Fax: 053‐715‐068
