TISCO Financial Group
TISCO Financial Group Underperform (16E TP Bt44.00)
Earnings Review
Close Bt46.25
Banking April 19, 2016
Beat forecast/Below forecast/In line
1Q16 net profit in line with both our estimate and the street Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
6.054
6.401
KT ZMICO vs. consensus Share data
‐4.2%
‐5.0%
Reuters / Bloomberg
TISCO.BK/TISCO TB
Paid‐up Shares (m)
800.64
Par (Bt)
10.00
Market cap (Bt bn / US$ m)
37.00/1,057.00
Foreign limit / actual (%)
49.00/49.00
52 week High / Low (Bt)
49.25/34.00
Avg. daily T/O (shares 000)
1,587.00
NVDR (%)
10.66
Estimated free float (%)
75.02
Beta
0.71
URL
www.tisco.co.th
CGR
Anti‐corruption
Level 4 (Certified)
Lending environment remains weak We maintain our Underperform rating and the 16E TP of Bt44/share. We see the operating environment for TISCO in 2016 continuing to be challenging (despite easing vs. 2015), especially with respect to its attempt to build up reserve coverage and the weak lending environment in auto loans. 1Q16 net profit in line with both our forecast and the street TISCO’s 1Q16 net profit (NP) of Bt1,255mn (+5% YoY, +1% QoQ) was in line with our forecast (Bt1,252mn) and the street estimate (Bt1,287mn). Meanwhile, core profit was also in line with our estimate. 1Q16 net profit stood at Bt1,255mn (+5% YoY, +1% QoQ) The higher NP YoY and QoQ was driven mainly by the much stronger net interest margin (NIM), especially on a YoY basis, thanks to the much lower funding cost on the benefit of the rate decline trend. Loans remained weak with a contraction by 8.4% YoY and 2.1% QoQ, mainly on the decline in auto hire purchase loans. TISCO still set a high provision of Bt981mn (167 bps) in 1Q16, which included a general provision of Bt520mn to cushion against business volatility. Asset quality improved QoQ Its NPLs for 1Q16 declined QoQ to 3.07% of loans from 3.23% in 4Q15, but still increased YoY from 2.65% in 1Q15, mainly from the continuing decline of NPLs in auto hire purchase loans. The higher ratio YoY was caused by 1) a loan drop by 8.4% YoY and especially 2) the impact from the NPL classification of SSI (Bt821mn) in 3Q15. Excluding the NPLs of SSI, the NPL ratio for 1Q16 would stand at 2.72%. Meanwhile, its loan loss reserve (LLR) to NPLs improved slightly QoQ to 89% from 80%. Its LLR to the BoT’s required LLR in 1Q16 improved QoQ to 139% from 126% in 4Q15 following its move to set a general provision as mentioned earlier. Financials and Valuation FY Ended 31 Dec
2014
2015
2016E
2017E
2018E
PPOP (Btm)
8,412
9,399
8,150
8,028
8,543
Net profit (Btm)
5,106
4,250
4,250
4,644
4,866
EPS (Bt)
5.31
5.31
5.80
6.08
6.38
EPS growth (%)
0.0%
0.0%
9.3%
4.8%
4.9%
Dividend (Bt)
2.00
2.40
2.30
2.40
2.50
Book value (Bt)
32.14
35.09
38.78
42.65
46.72
FY Ended 31 Dec
2014
2015
2016E
2017E
2018E
PER (X)
8.71
8.71
7.97
7.61
7.25
Prapharas Nonthapiboon
PBV (X)
1.44
1.32
1.19
1.08
0.99
Analyst, no 17836
Dividend yield (%) ROE (%)
4.32 17.4%
5.19 15.8%
4.97 15.7%
5.19 14.9%
5.41 14.3%
[email protected] 66 (0) 2695‐5872
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 4
Figure 1: 1Q16 earnings results
Statement of Comprehensive Income 1Q15
4Q15
1Q16
% YoY % QoQ
2015
2016E
% YoY % 1Q to 16E
Fiscal Year‐Ended December Net Interes t Income
2,400
2,665
2,692
12%
1%
10,130
9,805
‐3%
27%
Non Interes t Income
1,615
1,566
1,514
‐6%
‐3%
6,359
6,290
‐1%
24%
Opera ti ng Income
4,015
4,231
4,206
5%
‐1%
16,489
16,095
‐2%
26%
Opera ti ng Expens es
1,553
1,792
1,659
7%
‐7%
5,923
6,737
14%
25%
Opera ti ng Profi t
2,064
2,133
2,229
8%
5%
9,404
8,175
‐13%
27%
Provi s i on (Revers a l )
972
896
981
1%
9%
5,277
3,536
‐33%
28%
Ta xes
292
301
309
6%
3%
1,032
1,153
12%
27%
Net Profi t PPOP EPS (Bt)
1,192 2,058 1.49
1,244 2,134 1.55
1,255 2,227 1.57
5% 8% 5%
1% 4% 1%
4,250 9,399 5.31
4,644 8,150 5.80
9% ‐13% 9%
27% 27% 27%
2015
2016E
Key Statistics & Ratios
1Q15
4Q15
1Q16
Gros s NPLs (Btmn)
6,742
7,701
7,158
7,701
7,547
Gros s NPLs /Loa ns
2.65%
3.23%
3.07%
3.23%
3.24%
105.3%
80.1%
89.3%
80.1%
95.5%
Loa n Los s Res erve/NPLs Ti er I/Ri s k As s et
12.7%
13.9%
14.1%
13.9%
14.0%
Ca pi ta l Adequa cy Ra ti o
17.1%
17.9%
18.1%
17.9%
17.9%
Loa n to Depos i t Ra ti o
127.1%
150.7%
152.5%
150.7%
157.4%
Loa n to Depos i ts a nd Borrowi ngs
100.5%
102.4%
102.3%
102.4%
103.9%
Cos t to Income
38.7%
42.3%
39.4%
35.9%
41.9%
Non Interes t Income/Tota l Income
39.4%
35.1%
34.6%
38.6%
39.1%
Ta x ra te
19.6%
19.5%
19.7%
19.5%
19.8%
3.04% 1.50% ‐10.6% ‐3.2%
3.59% 1.51% ‐9.3% 0.4%
3.73% 1.67% ‐8.4% ‐2.1%
3.41% 2.11% ‐9.3%
3.55% 1.50% ‐2.1%
Net Interes t Ma rgi n Provi s i on to a vera ge l oa ns Loa n growth YoY Loa n growth QoQ Source: Bloomberg and KTZMICO Research
Figure 2: TISCO's P/BV band and sensitivity of market prices based on P/BV at different standard deviation levels (X) 2.4 +2 S.D. 2.0 1.6 1.2 0.8
+1.5 S.D. +1 S.D. +0.5 S.D. Avg. -0.5 S.D. -1 S.D. -1.5 S.D. -2 S.D.
Apr-16
Oct-15
Oct-14
Apr-15
Nov-13
May-14
Nov-12
Source: Bloomberg, KT ZMICO Research
May-13
May-12
Jun-11
Dec-11
Jun-10
Dec-10
Jul-09
Jan-10
Jan-09
0.4
2016E
PBV (x)
Implied market Upside/ Downside price (Bt) to current price (%)
+2.0SD
2.0
79
71
+1.5SD
1.9
73
58
+1.0SD
1.7
67
44
+0.5SD
1.6
61
31
Average
1.4
55
18
-0.5SD
1.3
49
5
-1.0SD
1.1
43
-8
-1.5SD
0.9
36
-21
-2.0SD
0.8
30
-34
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 4
Figure 3: TISCO's PER band and sensitivity of market prices based on PER at different standard deviation levels (X) 12 11 10 9 8 7
+1.5 S.D. +1 S.D. +0.5 S.D. Avg. -0.5 S.D. -1 S.D. -1.5 S.D. -2 S.D.
6 5
Source: Bloomberg, KT ZMICO Research
Apr-16
Oct-15
Apr-15
Oct-14
May-14
Nov-13
Nov-12
May-13
Dec-11
May-12
Jun-11
Dec-10
Jun-10
Jul-09
Jan-10
Jan-09
4 3
2016E
PER (x)
+2.0SD
10.6
61
33
+1.5SD
9.9
57
24
+1.0SD
9.2
53
15
+0.5SD
8.5
49
7
Average
7.9
46
-2
-0.5SD
7.2
42
-10
-1.0SD
6.5
38
-19
-1.5SD
5.8
34
-27
-2.0SD
5.1
30
-36
+2 S.D.
Implied market Upside/ Downside price (Bt) to current price (%)
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 4
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. 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 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.
Earnings Review
Close Bt46.25
Banking April 19, 2016
Beat forecast/Below forecast/In line
1Q16 net profit in line with both our estimate and the street Price Performance (%)
Source: SET Smart
FY16
FY17
Consensus EPS (Bt)
6.054
6.401
KT ZMICO vs. consensus Share data
‐4.2%
‐5.0%
Reuters / Bloomberg
TISCO.BK/TISCO TB
Paid‐up Shares (m)
800.64
Par (Bt)
10.00
Market cap (Bt bn / US$ m)
37.00/1,057.00
Foreign limit / actual (%)
49.00/49.00
52 week High / Low (Bt)
49.25/34.00
Avg. daily T/O (shares 000)
1,587.00
NVDR (%)
10.66
Estimated free float (%)
75.02
Beta
0.71
URL
www.tisco.co.th
CGR
Anti‐corruption
Level 4 (Certified)
Lending environment remains weak We maintain our Underperform rating and the 16E TP of Bt44/share. We see the operating environment for TISCO in 2016 continuing to be challenging (despite easing vs. 2015), especially with respect to its attempt to build up reserve coverage and the weak lending environment in auto loans. 1Q16 net profit in line with both our forecast and the street TISCO’s 1Q16 net profit (NP) of Bt1,255mn (+5% YoY, +1% QoQ) was in line with our forecast (Bt1,252mn) and the street estimate (Bt1,287mn). Meanwhile, core profit was also in line with our estimate. 1Q16 net profit stood at Bt1,255mn (+5% YoY, +1% QoQ) The higher NP YoY and QoQ was driven mainly by the much stronger net interest margin (NIM), especially on a YoY basis, thanks to the much lower funding cost on the benefit of the rate decline trend. Loans remained weak with a contraction by 8.4% YoY and 2.1% QoQ, mainly on the decline in auto hire purchase loans. TISCO still set a high provision of Bt981mn (167 bps) in 1Q16, which included a general provision of Bt520mn to cushion against business volatility. Asset quality improved QoQ Its NPLs for 1Q16 declined QoQ to 3.07% of loans from 3.23% in 4Q15, but still increased YoY from 2.65% in 1Q15, mainly from the continuing decline of NPLs in auto hire purchase loans. The higher ratio YoY was caused by 1) a loan drop by 8.4% YoY and especially 2) the impact from the NPL classification of SSI (Bt821mn) in 3Q15. Excluding the NPLs of SSI, the NPL ratio for 1Q16 would stand at 2.72%. Meanwhile, its loan loss reserve (LLR) to NPLs improved slightly QoQ to 89% from 80%. Its LLR to the BoT’s required LLR in 1Q16 improved QoQ to 139% from 126% in 4Q15 following its move to set a general provision as mentioned earlier. Financials and Valuation FY Ended 31 Dec
2014
2015
2016E
2017E
2018E
PPOP (Btm)
8,412
9,399
8,150
8,028
8,543
Net profit (Btm)
5,106
4,250
4,250
4,644
4,866
EPS (Bt)
5.31
5.31
5.80
6.08
6.38
EPS growth (%)
0.0%
0.0%
9.3%
4.8%
4.9%
Dividend (Bt)
2.00
2.40
2.30
2.40
2.50
Book value (Bt)
32.14
35.09
38.78
42.65
46.72
FY Ended 31 Dec
2014
2015
2016E
2017E
2018E
PER (X)
8.71
8.71
7.97
7.61
7.25
Prapharas Nonthapiboon
PBV (X)
1.44
1.32
1.19
1.08
0.99
Analyst, no 17836
Dividend yield (%) ROE (%)
4.32 17.4%
5.19 15.8%
4.97 15.7%
5.19 14.9%
5.41 14.3%
[email protected] 66 (0) 2695‐5872
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 4
Figure 1: 1Q16 earnings results
Statement of Comprehensive Income 1Q15
4Q15
1Q16
% YoY % QoQ
2015
2016E
% YoY % 1Q to 16E
Fiscal Year‐Ended December Net Interes t Income
2,400
2,665
2,692
12%
1%
10,130
9,805
‐3%
27%
Non Interes t Income
1,615
1,566
1,514
‐6%
‐3%
6,359
6,290
‐1%
24%
Opera ti ng Income
4,015
4,231
4,206
5%
‐1%
16,489
16,095
‐2%
26%
Opera ti ng Expens es
1,553
1,792
1,659
7%
‐7%
5,923
6,737
14%
25%
Opera ti ng Profi t
2,064
2,133
2,229
8%
5%
9,404
8,175
‐13%
27%
Provi s i on (Revers a l )
972
896
981
1%
9%
5,277
3,536
‐33%
28%
Ta xes
292
301
309
6%
3%
1,032
1,153
12%
27%
Net Profi t PPOP EPS (Bt)
1,192 2,058 1.49
1,244 2,134 1.55
1,255 2,227 1.57
5% 8% 5%
1% 4% 1%
4,250 9,399 5.31
4,644 8,150 5.80
9% ‐13% 9%
27% 27% 27%
2015
2016E
Key Statistics & Ratios
1Q15
4Q15
1Q16
Gros s NPLs (Btmn)
6,742
7,701
7,158
7,701
7,547
Gros s NPLs /Loa ns
2.65%
3.23%
3.07%
3.23%
3.24%
105.3%
80.1%
89.3%
80.1%
95.5%
Loa n Los s Res erve/NPLs Ti er I/Ri s k As s et
12.7%
13.9%
14.1%
13.9%
14.0%
Ca pi ta l Adequa cy Ra ti o
17.1%
17.9%
18.1%
17.9%
17.9%
Loa n to Depos i t Ra ti o
127.1%
150.7%
152.5%
150.7%
157.4%
Loa n to Depos i ts a nd Borrowi ngs
100.5%
102.4%
102.3%
102.4%
103.9%
Cos t to Income
38.7%
42.3%
39.4%
35.9%
41.9%
Non Interes t Income/Tota l Income
39.4%
35.1%
34.6%
38.6%
39.1%
Ta x ra te
19.6%
19.5%
19.7%
19.5%
19.8%
3.04% 1.50% ‐10.6% ‐3.2%
3.59% 1.51% ‐9.3% 0.4%
3.73% 1.67% ‐8.4% ‐2.1%
3.41% 2.11% ‐9.3%
3.55% 1.50% ‐2.1%
Net Interes t Ma rgi n Provi s i on to a vera ge l oa ns Loa n growth YoY Loa n growth QoQ Source: Bloomberg and KTZMICO Research
Figure 2: TISCO's P/BV band and sensitivity of market prices based on P/BV at different standard deviation levels (X) 2.4 +2 S.D. 2.0 1.6 1.2 0.8
+1.5 S.D. +1 S.D. +0.5 S.D. Avg. -0.5 S.D. -1 S.D. -1.5 S.D. -2 S.D.
Apr-16
Oct-15
Oct-14
Apr-15
Nov-13
May-14
Nov-12
Source: Bloomberg, KT ZMICO Research
May-13
May-12
Jun-11
Dec-11
Jun-10
Dec-10
Jul-09
Jan-10
Jan-09
0.4
2016E
PBV (x)
Implied market Upside/ Downside price (Bt) to current price (%)
+2.0SD
2.0
79
71
+1.5SD
1.9
73
58
+1.0SD
1.7
67
44
+0.5SD
1.6
61
31
Average
1.4
55
18
-0.5SD
1.3
49
5
-1.0SD
1.1
43
-8
-1.5SD
0.9
36
-21
-2.0SD
0.8
30
-34
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 4
Figure 3: TISCO's PER band and sensitivity of market prices based on PER at different standard deviation levels (X) 12 11 10 9 8 7
+1.5 S.D. +1 S.D. +0.5 S.D. Avg. -0.5 S.D. -1 S.D. -1.5 S.D. -2 S.D.
6 5
Source: Bloomberg, KT ZMICO Research
Apr-16
Oct-15
Apr-15
Oct-14
May-14
Nov-13
Nov-12
May-13
Dec-11
May-12
Jun-11
Dec-10
Jun-10
Jul-09
Jan-10
Jan-09
4 3
2016E
PER (x)
+2.0SD
10.6
61
33
+1.5SD
9.9
57
24
+1.0SD
9.2
53
15
+0.5SD
8.5
49
7
Average
7.9
46
-2
-0.5SD
7.2
42
-10
-1.0SD
6.5
38
-19
-1.5SD
5.8
34
-27
-2.0SD
5.1
30
-36
+2 S.D.
Implied market Upside/ Downside price (Bt) to current price (%)
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 4
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. 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 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.
