Thai Union Frozen Products Underperform
Thai Union Frozen Products Underperform (15E TP Bt20.60)
Company Update
Close 21.20
Food & Beverage June 23, 2015
Earnings upgrade/Earnings downgrade/Overview unchanged
Progress on capital increase and Bumble Bee deal
FY15
FY16
Consensus EPS (Bt)
1.287
1.494
KT ZMICO vs. consensus Share data
‐2.1%
‐11.6%
Reuters / Bloomberg
TUF.BK/TUF TB
Paid‐up Shares (m)
4,771.82
Par (Bt)
0.25
Market cap (Bt bn / US$ m)
101.00/3,006.00
Foreign limit / actual (%)
45.00/40.72
52 week High / Low (Bt)
24.50/16.06
Avg. daily T/O (shares 000)
7,599.00
NVDR (%)
11.20
Estimated free float (%)
63.92
Beta
1.51
URL
www.thaiuniongroup.com
CGR
Attractive for the long term but fully valued for the short term We have a positive view toward TUF’s acquisition of Bumble Bee as we believe the deal will strengthen TUF’s business growth in the future. TUF is thus attractive in the long term; however, the current share price is fully valued vs. our 2015E fair price of Bt20.60/share (16X PER) and the 2016E fair price of Bt21/share (assuming the capital increase and consolidation with Bumble Bee). Hence, we maintain UNDERPERFORM. XB on 2 Jul; general existing shareholders allowed to raise capital TUF will go XB on 2‐6 Jul‐15, allowing general shareholders to subscribe newly‐issued shares (the “Preferential Public Offering”). This is in accordance with the AGM resolution dated 3 Apr‐15 to increase the firm’s registered capital through the issuance, offering and allocation of up to 1,200mn newly‐issued ordinary shares with the aim to obtain proceeds of US$400mn (equivalent to approximately Bt13.2bn). The last trading day for shareholders to subscribe the newly‐issued shares is 30 Jun‐15. After that, TUF will announce the list of eligible shareholders on 10 Jul‐15. Details in regard to the number of offered shares, the offering price and the rights ratio will be announced later. XB on track; expected dilution effect of not over 20% The XB is well on track. The capital increase is aimed at raising new capital of US$400mn to fund the Bumble Bee deal. If the demand for newly‐issued shares is high, the offering price may be impressive. There is a possibility that the number of newly‐issued shares may fall below 1,200mn shares and if this is the case the dilution effect should not exceed 20%. The offering price should not be less than the par value and 70% of the market price or the weighted average price (either the closing price or the average trading price of each trading day) in the past 7‐15 consecutive trading days prior to the first day of the public offering. Financials and Valuation FY Ended 31 Dec
2012
2013
2014
2015E
2016E
Revenues (Btmn)
106,698
112,813
121,402
149,554
166,062
2,270
Net profit (Btmn) EPS (Bt) Norm. EPS (Bt) Norm. EPS growth (%) Dividend (Bt)
5,092
6,007
6,276
1.0725
4,694
0.62 1.08
1.26
1.32
0.91
0.48 1.01
‐27% 0.53
1.26
1.32
111%
25%
4%
0.37 0.54
0.63
0.66
‐48%
BV (Bt)
8.11
8.61
9.15
9.87
10.55
FY Ended 31 Dec
2012
2013
2014
2015E
2016E
Phornsri Laysanitsaerekul
PER (x)
19.77
34.06
19.56
16.84
16.12
Analyst , no 17621
EV/EBITDA (x)
13.07
19.85
13.79
13.82
13.03
PBV (x)
2.61
2.46 2.32
2.15
2.01
[email protected] 66 (0) 2624‐6258
Dividend yield (%)
2.48%
1.76%
2.59%
2.97%
3.10%
ROE (%) Net gearing (%)
15.2% 89.9
5.9% 106.6
12.2% 101.5
13.2% 94.2
12.9% 82.9
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 4
Progress on the Bumble Bee deal Regarding the progress on the deal to acquire Bumble Bee Holdco S.C.A. (BB) worth US$1.51bn, the deal is presently in stage II, with the relevant state agency requesting further information and conducting interviews. This stage is likely to take approximately 4‐6 months for verification and clarification. TUF is not concerned about the tuna business because BB’s tuna business uses Albacore fish while Chicken of the Sea’s tuna business uses Skipjack fish. However, the firm is rather concerned about the sardine business, in which it will become a dominant player considering the combined market shares (note that BB and COS earn revenue from their sardine business at 12% and 4% of total revenue, respectively). If the deal is determined to be in compliance with anti‐trust law, TUF may be able to consolidate BB’s operation in late 3Q15 to early 4Q15. In the worst‐case scenario, TUF may have to cut or reduce some businesses in BB. Should the deal be successful, TUF’s earnings in 2015E/16E/17E will be raised by 3%/12.5%/12.7% The capital increase program is well on track, with the offering price expected in the second half of July. Meanwhile, the deal to acquire Bumble Bee has shown good progress, minimizing the risk that this deal may be unsuccessful. However, the deal still contains some risks, so we have yet to incorporate it in our current projections. We will do so only when the deal is officially announced. We have studied the capital increase based on TUF’s average closing price of Bt21 in the past seven consecutive trading days (11‐19 Jun‐15). Assuming a 15% discount, we anticipate an offering price of Bt17.85/share and the number of offered shares at 739.5mn shares (13% dilution), implying an offering ratio of 6.45 existing shares: 1 new share. This should bring in proceeds of US$400mn to fund the Bumble Bee deal, as planned by TUF. We have also studied TUF’s 2015E/16E/17E earnings performance based upon the consolidation of Bumble Bee from 4Q15 under the following assumptions: 1. We assume Bumble Bee’s sales growth of 0.7% p.a. (i.e., average sales growth in the past four years), a gross profit margin of 22%, and an EBITDA margin of 13.7%. 2. TUF’s debt will increase by Bt36.6bn (US$1,100mn) with an interest rate of 3% (vs. the company’s guidance below of 4%). According to the aforementioned study, our revenue projections for TUF in 2015E/16E/17E would have to be raised by 5%/20%/18% to Bt158bn/Bt198bn/Bt217bn, respectively. In addition, the gross profit assumptions would be raised by 8%/30%/27%. However, the SG&A projections would be raised as well and the expected interest expenses would almost double. Hence, our 2015E/16E/17E net profit projections for TUF would also be increased by 3%/13%/13% to Bt6.2bn/Bt7.1bn/Bt7.9bn, respectively. Meanwhile, due to a 15.56% increase in ordinary shares (i.e., an average increase in newly‐issued shares in 2015 and fully dilution in 2016‐17), our earnings per share projections for those years would be adjusted by +1.7%/‐ 2.6%/‐2.4% to Bt1.28/Bt1.28/Bt1.43. Finally, the 2016E fair value would be estimated at Bt21/share and the 2017E fair value would be at Bt23.50/share based on 16X PER.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 4
Figure 1: TUF’s earnings outlook, financial position and fair price on consolidation of Bumble Bee from 4Q15
TUF (base case) 2015E 2016E 2017E 149,554 166,062 184,728 22,174 23,997 26,484 14.8% 14.5% 14.3% 12,031 13,460 14,946 1,680 1,701 1,639 6,007 6,276 7,015 1.26 1.32 1.47 6,007 6,276 7,015 1.26 1.32 1.47 20.58 21.50 24.03 46,207 43,357 40,457 0.98 0.86 0.75
Bt m Revenues Gross profit Gross margin SG&A expense Interest expense Norm profit Norm EPS (Bt) Net profit EPS (Bt) Fair value (Bt) Interest bearing debt DER (x)
TUF+ Bumble Bee % Upside from Bumble Bee 2015E 2016E 2017E 2015E 2016E 2017E 157,612 198,515 217,404 5.4% 19.5% 17.7% 23,962 31,199 33,735 8.1% 30.0% 27.4% 15.2% 15.7% 15.5% 15,619 19,673 21,545 29.8% 46.2% 44.2% 1,955 3,195 3,133 16.3% 87.8% 91.2% 6,166 7,063 7,904 2.6% 12.5% 12.7% 1.28 1.28 1.43 1.7% ‐2.6% ‐2.4% 6,166 7,063 7,904 2.6% 12.5% 12.7% 1.28 1.28 1.43 1.7% ‐2.6% ‐2.4% 20.92 20.95 23.45 1.7% ‐2.6% ‐2.4% 82,816 79,966 77,066 79.2% 84.4% 90.5% 1.37 1.24 1.13 39.6% 44.3% 51.2%
Source: KTZ Research
Figure 2: PER (X) 35.0 30.0 +2 S.D.
25.0 20.0
+1 S.D.
15.0
+0.5 S.D. Avg.
May-15
Jan-15
Sep-14
Jan-14
May-14
Sep-13
Jan-13
May-13
Sep-12
Jan-12
May-12
Sep-11
May-11
Jan-11
Sep-10
May-10
Jan-10
Sep-09
Jan-09
May-09
Sep-08
Jan-08
May-08
10.0 -0.5 S.D. -1 S.D. 5.0 -2 S.D. 0.0
Source: KT Z 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 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 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 21.20
Food & Beverage June 23, 2015
Earnings upgrade/Earnings downgrade/Overview unchanged
Progress on capital increase and Bumble Bee deal
FY15
FY16
Consensus EPS (Bt)
1.287
1.494
KT ZMICO vs. consensus Share data
‐2.1%
‐11.6%
Reuters / Bloomberg
TUF.BK/TUF TB
Paid‐up Shares (m)
4,771.82
Par (Bt)
0.25
Market cap (Bt bn / US$ m)
101.00/3,006.00
Foreign limit / actual (%)
45.00/40.72
52 week High / Low (Bt)
24.50/16.06
Avg. daily T/O (shares 000)
7,599.00
NVDR (%)
11.20
Estimated free float (%)
63.92
Beta
1.51
URL
www.thaiuniongroup.com
CGR
Attractive for the long term but fully valued for the short term We have a positive view toward TUF’s acquisition of Bumble Bee as we believe the deal will strengthen TUF’s business growth in the future. TUF is thus attractive in the long term; however, the current share price is fully valued vs. our 2015E fair price of Bt20.60/share (16X PER) and the 2016E fair price of Bt21/share (assuming the capital increase and consolidation with Bumble Bee). Hence, we maintain UNDERPERFORM. XB on 2 Jul; general existing shareholders allowed to raise capital TUF will go XB on 2‐6 Jul‐15, allowing general shareholders to subscribe newly‐issued shares (the “Preferential Public Offering”). This is in accordance with the AGM resolution dated 3 Apr‐15 to increase the firm’s registered capital through the issuance, offering and allocation of up to 1,200mn newly‐issued ordinary shares with the aim to obtain proceeds of US$400mn (equivalent to approximately Bt13.2bn). The last trading day for shareholders to subscribe the newly‐issued shares is 30 Jun‐15. After that, TUF will announce the list of eligible shareholders on 10 Jul‐15. Details in regard to the number of offered shares, the offering price and the rights ratio will be announced later. XB on track; expected dilution effect of not over 20% The XB is well on track. The capital increase is aimed at raising new capital of US$400mn to fund the Bumble Bee deal. If the demand for newly‐issued shares is high, the offering price may be impressive. There is a possibility that the number of newly‐issued shares may fall below 1,200mn shares and if this is the case the dilution effect should not exceed 20%. The offering price should not be less than the par value and 70% of the market price or the weighted average price (either the closing price or the average trading price of each trading day) in the past 7‐15 consecutive trading days prior to the first day of the public offering. Financials and Valuation FY Ended 31 Dec
2012
2013
2014
2015E
2016E
Revenues (Btmn)
106,698
112,813
121,402
149,554
166,062
2,270
Net profit (Btmn) EPS (Bt) Norm. EPS (Bt) Norm. EPS growth (%) Dividend (Bt)
5,092
6,007
6,276
1.0725
4,694
0.62 1.08
1.26
1.32
0.91
0.48 1.01
‐27% 0.53
1.26
1.32
111%
25%
4%
0.37 0.54
0.63
0.66
‐48%
BV (Bt)
8.11
8.61
9.15
9.87
10.55
FY Ended 31 Dec
2012
2013
2014
2015E
2016E
Phornsri Laysanitsaerekul
PER (x)
19.77
34.06
19.56
16.84
16.12
Analyst , no 17621
EV/EBITDA (x)
13.07
19.85
13.79
13.82
13.03
PBV (x)
2.61
2.46 2.32
2.15
2.01
[email protected] 66 (0) 2624‐6258
Dividend yield (%)
2.48%
1.76%
2.59%
2.97%
3.10%
ROE (%) Net gearing (%)
15.2% 89.9
5.9% 106.6
12.2% 101.5
13.2% 94.2
12.9% 82.9
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 4
Progress on the Bumble Bee deal Regarding the progress on the deal to acquire Bumble Bee Holdco S.C.A. (BB) worth US$1.51bn, the deal is presently in stage II, with the relevant state agency requesting further information and conducting interviews. This stage is likely to take approximately 4‐6 months for verification and clarification. TUF is not concerned about the tuna business because BB’s tuna business uses Albacore fish while Chicken of the Sea’s tuna business uses Skipjack fish. However, the firm is rather concerned about the sardine business, in which it will become a dominant player considering the combined market shares (note that BB and COS earn revenue from their sardine business at 12% and 4% of total revenue, respectively). If the deal is determined to be in compliance with anti‐trust law, TUF may be able to consolidate BB’s operation in late 3Q15 to early 4Q15. In the worst‐case scenario, TUF may have to cut or reduce some businesses in BB. Should the deal be successful, TUF’s earnings in 2015E/16E/17E will be raised by 3%/12.5%/12.7% The capital increase program is well on track, with the offering price expected in the second half of July. Meanwhile, the deal to acquire Bumble Bee has shown good progress, minimizing the risk that this deal may be unsuccessful. However, the deal still contains some risks, so we have yet to incorporate it in our current projections. We will do so only when the deal is officially announced. We have studied the capital increase based on TUF’s average closing price of Bt21 in the past seven consecutive trading days (11‐19 Jun‐15). Assuming a 15% discount, we anticipate an offering price of Bt17.85/share and the number of offered shares at 739.5mn shares (13% dilution), implying an offering ratio of 6.45 existing shares: 1 new share. This should bring in proceeds of US$400mn to fund the Bumble Bee deal, as planned by TUF. We have also studied TUF’s 2015E/16E/17E earnings performance based upon the consolidation of Bumble Bee from 4Q15 under the following assumptions: 1. We assume Bumble Bee’s sales growth of 0.7% p.a. (i.e., average sales growth in the past four years), a gross profit margin of 22%, and an EBITDA margin of 13.7%. 2. TUF’s debt will increase by Bt36.6bn (US$1,100mn) with an interest rate of 3% (vs. the company’s guidance below of 4%). According to the aforementioned study, our revenue projections for TUF in 2015E/16E/17E would have to be raised by 5%/20%/18% to Bt158bn/Bt198bn/Bt217bn, respectively. In addition, the gross profit assumptions would be raised by 8%/30%/27%. However, the SG&A projections would be raised as well and the expected interest expenses would almost double. Hence, our 2015E/16E/17E net profit projections for TUF would also be increased by 3%/13%/13% to Bt6.2bn/Bt7.1bn/Bt7.9bn, respectively. Meanwhile, due to a 15.56% increase in ordinary shares (i.e., an average increase in newly‐issued shares in 2015 and fully dilution in 2016‐17), our earnings per share projections for those years would be adjusted by +1.7%/‐ 2.6%/‐2.4% to Bt1.28/Bt1.28/Bt1.43. Finally, the 2016E fair value would be estimated at Bt21/share and the 2017E fair value would be at Bt23.50/share based on 16X PER.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 4
Figure 1: TUF’s earnings outlook, financial position and fair price on consolidation of Bumble Bee from 4Q15
TUF (base case) 2015E 2016E 2017E 149,554 166,062 184,728 22,174 23,997 26,484 14.8% 14.5% 14.3% 12,031 13,460 14,946 1,680 1,701 1,639 6,007 6,276 7,015 1.26 1.32 1.47 6,007 6,276 7,015 1.26 1.32 1.47 20.58 21.50 24.03 46,207 43,357 40,457 0.98 0.86 0.75
Bt m Revenues Gross profit Gross margin SG&A expense Interest expense Norm profit Norm EPS (Bt) Net profit EPS (Bt) Fair value (Bt) Interest bearing debt DER (x)
TUF+ Bumble Bee % Upside from Bumble Bee 2015E 2016E 2017E 2015E 2016E 2017E 157,612 198,515 217,404 5.4% 19.5% 17.7% 23,962 31,199 33,735 8.1% 30.0% 27.4% 15.2% 15.7% 15.5% 15,619 19,673 21,545 29.8% 46.2% 44.2% 1,955 3,195 3,133 16.3% 87.8% 91.2% 6,166 7,063 7,904 2.6% 12.5% 12.7% 1.28 1.28 1.43 1.7% ‐2.6% ‐2.4% 6,166 7,063 7,904 2.6% 12.5% 12.7% 1.28 1.28 1.43 1.7% ‐2.6% ‐2.4% 20.92 20.95 23.45 1.7% ‐2.6% ‐2.4% 82,816 79,966 77,066 79.2% 84.4% 90.5% 1.37 1.24 1.13 39.6% 44.3% 51.2%
Source: KTZ Research
Figure 2: PER (X) 35.0 30.0 +2 S.D.
25.0 20.0
+1 S.D.
15.0
+0.5 S.D. Avg.
May-15
Jan-15
Sep-14
Jan-14
May-14
Sep-13
Jan-13
May-13
Sep-12
Jan-12
May-12
Sep-11
May-11
Jan-11
Sep-10
May-10
Jan-10
Sep-09
Jan-09
May-09
Sep-08
Jan-08
May-08
10.0 -0.5 S.D. -1 S.D. 5.0 -2 S.D. 0.0
Source: KT Z 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 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 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.
