Transport & Logistics (Airlines)
Transport & Logistics (Airlines) Industry Update
Neutral
October 30, 2015
3Q15E earnings preview Price chart
Source: ASPEN Share data (Transport & Logistics) SET index
1,390.04
Sector index
218.87
52‐week high
244.71
52‐week low
199.95
Market capitalization (Bt m)
812,004.57
% of market cap
6.16
Avg daily turnover (m shares)
354.43
Beta
0.50
Sector Performance (%)
1M
3M
12M
Absolute
3.18
‐3.21
2.14
Relative
0.12
0.26
16.02
Raenoo Bhandasukdi Analyst, no 17989 [email protected] 66 (0) 2695‐5836
Still select AAV and BA as our top picks According to our 3Q15E earnings preview for airlines listed in the SET, BA should be the best performer in the quarter followed by AAV. Meanwhile, NOK and THAI should still report losses in 3Q15E. However, we believe airlines’ earnings will improve in 4Q15E upon entering the high season. We maintain our earnings projections for 2015‐16E with AAV (BUY, TP Bt5.90) and BA (BUY, TP Bt25.00) still the top picks. We maintain our call that NOK’s (BUY, TP Bt10.80) earnings will turn positive in 2016E, based on our assumption that the red flag marked by the ICAO related to Thai aviation safety standards will be lifted in 1H16E. A delay in lifting the red flag will create downside risk for NOK. BA and AAV to still report better earnings in 3Q15E (YoY basis) Comparing the four airlines listed in the SET, BA is likely to report a better performance as this quarter is normally the peak season for Samui International Airport, prompting passenger volume and fare increases both YoY and QoQ. On the other hand, the third quarter is normally the low season for LCC operators (fewer holidays), with AAV’s earnings likely to be lower QoQ but turning around YoY to Bt118mn (including an unrealized FX loss from baht depreciation against the US$). Earnings in 3Q15E for NOK and THAI to remain in the red We estimate that NOK will still report a net loss of Bt362mn in 3Q15E owing mainly to weak ticket fares, higher maintenance costs, and a net operating loss from NOKSCOOT. Meanwhile, THAI’s performance is likely to stay in the red at Bt11.8bn owing to a weak core operation and a huge unrealized FX loss. However, we believe the earnings for both will turn around in 4Q15E upon entering the high season. NOK’s ticket fares in 4Q15E are likely to benefit from the increasing frequency and expansion of international routes (4 destinations in China, 1 in Myanmar, and 2 in Vietnam), along with a lower loss contribution from NOKSCOOT. Meanwhile, we calculate THAI’s net profit to turn around in 4Q15E on both the operation (peak season) and unrealized FX gains from the baht, which has begun to appreciate against core currencies currently (compared to end 3Q15). FAA downgrade (if it occurs) will not have much impact on airlines On 26‐28 October 2015, the US Federal Aviation Administration (FAA) revisited the Thai authorities after their previous audit in July relating to the Significant Safety Concern (SSC) signal by the ICAO for Thai aviation. According to news sources, the FAA will announce its decision in a month on whether to downgrade Thai airlines to Category 2 from Category 1 currently. As there are no Thai‐registered airlines operating direct flights to the US (THAI recently stopped direct flights to the US), an FAA downgrade would not directly impact the airline business; however, it would affect the credibility of Thai aviation.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 7
Figure 1: Rating and valuation summary
16E TP (Bt/shr)
Rating
AAV BA NOK THAI Average
Buy Buy Buy Underperform
5.90 25.00 10.80 10.40
14 190.5 121.4 n.m. n.m. 155.9
PER (x) 15E 19.4 24.9 n.m. n.m. 22.2
16E 16.4 20.3 9.5 14.4 15.2
14 1.2 1.7 1.3 0.6 1.2
PBV (x) 15E 1.2 1.6 1.4 0.8 1.2
16E 1.1 1.5 1.3 0.8 1.2
14 0.6 2.1 (11.3) (31.8) (10.1)
ROE (%) 15E 6.0 6.6 (8.4) (38.5) (8.6)
16E 7.0 7.8 13.8 5.7 8.6
Div. yield (%) 14 15E 16E ‐ 3.6 4.3 1.0 2.0 2.5 ‐ ‐ 3.1 ‐ ‐ ‐ 0.2 1.4 2.5
Source: KT ZMICO Research
Figure 2: Earnings summary Company AAV BA NOK THAI Total
Net profit (Btm) 14 15E 183 1,074 351 1,807 (472) (307) (15,612) (13,108) (15,549) (10,534)
16E 1,426 2,083 517 1,571 5,597
Norm. profit (Btm) 14 15E 120 1,179 348 1,694 (472) (307) (23,048) (5,522) (23,052) (2,955)
16E 1,399 2,083 517 1,571 5,570
Norm. EPS (Bt) 14 15E 0.02 0.24 0.17 0.81 (0.75) (0.49) (10.56) (2.53)
16E 0.29 0.99 0.83 0.72
Norm. EPS growth (%) 14 15E 16E (86.8) 881.4 18.6 (70.5) 387.1 23.0 (144.2) n.m. n.m. (76.0) n.m. 292.8
Source: KT ZMICO Research
Figure 3: 3Q15E earnings preview summary Profit and Loss (Btmn) Year‐end 31 Dec AAV BA NOK THAI Total
3Q14 5,715 5,034 2,750 45,826 59,325
Revenue (Btmn) 2Q15 3Q15E 7,041 7,239 4,944 5,715 3,258 2,968 41,363 41,394 56,606 57,316
YoY 26.7 13.5 7.9 (9.7) (3.4)
QoQ 2.8 15.6 (8.9) 0.1 1.3
3Q14 (209) (52) (372) 1,086 453
Net profit (Btmn) 2Q15 3Q15E 206 118 91 363 (150) (362) (12,759) (11,767) (12,612) (11,648)
YoY n.m. n.m. (2.9) n.m. n.m.
QoQ (42.9) 296.5 141.1 (7.8) (7.6)
Source: KT ZMICO Research
Figure 4: Progress of corrective action plan by the Thai government to solve the SSC notification problem Date
Progress
Jun‐15
ICAO imposed a red flag to Thailand on its website related to an SSC notification
Jun – Jul 15
Training of related parties, both theoretical and practical, regarding the transportation of dangerous goods
Completed preparation of dangerous goods manual and inspection manual, including checklists
Jul‐15
Thai DCA made announcement to 28 airline operators regarding recertification for AOC licenses
Aug‐15
AOC recertification started with three priority airlines (THAI, NOKSCOOT, Thai Air Asia)
Aug‐15
Started public hearing process for the new Aviation Act, which is likely to be enforced in Oct‐15 by using
section 44 of the “Constitution of the Kingdom of Thailand” (interim) Act 2014
Sep‐15
The Command Center for Resolving Civil Aviation Issues (CRCA) was set up to solve the problem
Sep‐15
Cabinet approved the issue of three executive decrees and one ministerial regulation to restructure
the Aviation Authority instead of issuing bills, which would be time consuming
Oct‐15
FAA revisit, expected to announce its decision in a month
Source: Thaipublica online news, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 7
AAV: Expect net profit of Bt118mn in 3Q15E We expect net profit of Bt118mn in 3Q15E for AAV, including FX loss of Bt86mn from baht depreciation against the US$ to Bt36.34, vs. Bt33.79 as of the end of 2Q15. Stripping out FX loss, AAV is likely to report normalized profit of Bt204mn in 3Q15E, improving from a normalized loss of Bt251mn in 3Q14 owing to higher passenger volume (+25% YoY to 2.9mn), a higher average fare (+1% YoY to Bt1,608/passenger), and gross profit margin (GPM) improvement thanks to the falling global jet fuel price (‐47% YoY to US$61/barrel). The average fare is expected to continue increasing owing to international route expansion, especially for three new Chinese destinations from U‐Tapao Airport, a new hub that AAV launched in Sep‐15. On a quarter‐to‐quarter basis, AAV’s normalized profit is likely to decline (‐18% QoQ) as this quarter is normally the low season, while there was also a tax expense increase. According to AAV, quarterly tax expense fluctuations depend on aircraft received (financial lease aircraft will result in deferred tax) and the BOI/non‐BOI profit contribution. As of 3Q15, AAV’s aircraft fleet had increased to 44, vs. 43 in 2Q15. The company will receive another aircraft in Nov‐15, raising the total to 45, in line with our expectation. Figure 5: AAV’s 3Q15E earnings preview Profit and Loss (Btmn) Year‐end 31 Dec Revenue Gross profit SG&A expenses EBITDA Interest expenses Other income Income tax Forex gain (loss) Minority interests Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt/equity (x) BVPS (Bt) ROE (%) Statistics Passenger volume (mn) Cabin factor (%) Average fare (Bt/pax)
3Q14 5,715 94 (497) (184) (87) 40 (17) 42 216 (209) (251) (0.04)
2Q15 7,041 1,000 (500) 780 (143) 33 67 (42) (208) 206 248 0.04
3Q15E 7,239 1,035 (521) 803 (142) 35 (20) (86) (183) 118 204 0.02
% YoY 26.7 997.1 4.8 n.m. 62.9 (12.6) 19.7 (303.5) (185.0) n.m. n.m. n.m.
% QoQ 2.8 3.6 4.2 3.0 (1.0) 6.9 (130.5) 105.5 (11.9) (42.9) (17.9) (42.9)
9M15E 22,189 3,788 (1,598) 3,032 (393) 91 (140) (120) (797) 830 950 0.17
1.7 (3.2) (3.7) 0.8 (4.6) 0.6 3.9 (4.4) 2.90 83.2 1,592
14.2 11.1 2.9 1.2 3.5 0.7 4.2 4.1 3.54 81.0 1,632
14.3 11.1 1.6
17.1 13.7 3.7
3.63 82.6 1,608
25.0 1.0
2.4 (1.5)
% YoY 23.8 341.0 16.6 4,717.6 91.2 (29.8) (757.5) (322.2) (401.4) n.m. n.m. n.m.
2015E 29,895 5,036 (2,120) 4,048 (535) 129 (326) (106) (1,005) 1,074 1,179 0.221 16.8 13.5 3.6 1.0 5.4 0.5 4.1 5.5
Source: AAV, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 7
YTD (% of 15E) 74.2 75.2 75.4 74.9 73.5 70.9 42.9 114.0 79.4 77.3 80.6 77.3
BA: Estimate net profit of Bt363mn in 3Q15E, a turnaround both YoY and QoQ We expect BA to report net profit of Bt363mn in 3Q15E, turning around from both 3Q14 and 2Q15. Our net profit estimate assumes passenger volume of 1.31mn (+12% YoY, +18% QoQ) thanks to BA’s normal high season (August), including route expansion to Samui Airport. For the same reason, we expect BA’s average fare at Bt3,768/passenger in 3Q15E, improving by 2% YoY and 7% QoQ. The same as AAV, we expect BA’s GPM in 3Q15E to improve, both YoY and QoQ, owing to the global jet fuel price decline. However, BA is likely to report tax expenses of Bt95mn in the quarter owing to one financial lease aircraft received. Meanwhile, other income is likely to decline from the previous quarter as no dividend was received from BDMS in 3Q15E. As of 3Q15, BA’s fleet had increased to 30 vs. 29 in 2Q15. Figure 6: BA’s 3Q15E earnings preview Profit and Loss (Btmn) Year‐end 31 Dec Revenue Gross profit SG&A expenses EBITDA Interest expenses Other income Income tax Forex gain (loss) Other extra items Gain (loss) from affiliates Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt/equity (x) BVPS (Bt) ROE (%) Statistic Passenger volume (mn) Cabin factor (%) Average fare (Bt/pax)
3Q14 5,034 728 (743) 149 (403) 250 2 ‐ 0 120 (52) (52) (0.03)
2Q15 4,944 553 (811) (59) (400) 506 32 113 ‐ 109 91 (22) 0.04
3Q15E 5,715 1,248 (809) 675 (414) 323 (95) ‐ ‐ 129 363 363 0.17
% YoY 13.5 71.5 8.8 351.9 2.7 29.2 n.m. ‐ ‐ 7.4 n.m. n.m. n.m.
% QoQ 15.6 125.8 (0.3) n.m. 3.5 (36.2) n.m. ‐ ‐ 18.0 296.5 n.m. 296.5
9M15E 17,142 3,797 (2,390) 2,034 (1,195) 1,080 (182) 113 ‐ 348 1,524 1,411 0.73
14.5 3.0 (1.0) 0.6 (0.0) 1.0 8.6 (1.6) 1.17 62.9 3,694
11.2 (1.2) 1.9 2.8 (0.6) 0.5 13.4 1.3 1.11 59.9 3,533
21.8 11.8 6.3
22.1 11.9 8.9
1.31 67.6 3,768
12.0 2.0
18.0 6.6
% YoY 10.8 57.0 10.2 182.8 (2.7) 36.7 834.6 218.4 ‐ 6.1 1,020.0 1,352.7 742.7
2015E 23,554 5,142 (3,330) 2,675 (1,647) 1,405 (184) 113 ‐ 477 1,807 1,694 0.86 21.8 11.4 7.7 2.6 1.1 0.6 12.5 7.0
Source: BA, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 7
YTD (% of 15E) 72.8 73.8 71.8 76.1 72.6 76.9 98.6 100.0 ‐ 73.0 84.3 83.3 84.3
NOK: Earnings to still be in the red in 3Q15E NOK is likely to still report a huge net loss in 3Q15E owing to the normal low season for LCC operators, a maintenance cost increase, and a loss contribution from NOKSCOOT. We estimate a net loss of Bt362mn in 3Q15E, declining by 3% YoY but increasing by 141% QoQ. NOK’s passenger volume in the quarter is expected to reach 2.04mn, increasing by 8% YoY but declining by 4% QoQ. Meanwhile, the average fare should remain on a downtrend at Bt1,322/passenger, ‐1% YoY and ‐6% QoQ, due to fierce competition and a lower contribution from international passengers compared to AAV. Even though global jet fuel prices declined, the GPM should still have weakened due to an increase in maintenance costs, the Baht weaken, and costs related to NOKSCOOT, which is currently operating flights to Singapore, Nanjing and Taipei (new destination in 3Q15). Figure 7: NOK’s 3Q15E earnings preview Profit and Loss (Btmn) Year‐end 31 Dec Revenue Gross profit SG&A expenses EBITDA Interest expenses Other income Income tax Minority interests Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt/equity (x) BVPS (Bt) ROE (%) Statistics Passenger volume (mn) Cabin factor (%) Average fare (Bt/pax)
3Q14 2,750 (210) (240) (434) (1) 19 0 59 (372) (372) (0.60)
2Q15 3,258 (346) (211) (537) ‐ 99 0 308 (150) (150) (0.24)
3Q15E 2,968 (438) (194) (607) ‐ 40 ‐ 230 (362) (362) (0.58)
% YoY 7.9 108.5 (19.2) 39.8 ‐ 105.8 ‐ 290.9 (2.9) (2.9) (2.9)
% QoQ (8.9) 26.7 (8.2) 12.9 ‐ (59.4) ‐ (25.3) 141.1 141.1 141.1
9M15E 9,859 (724) (643) (1,303) ‐ 152 0 704 (510) (510) (0.82)
(7.6) (15.8) (13.5) 2.4 n.m. cash 6.0 (37.9) 1.89 84.2 1,335
(10.6) (16.5) (4.6) 2.5 cash cash 5.8 (16.2) 2.12 83.4 1,401
(14.8) (20.4) (12.2)
(7.3) (13.2) (5.2)
2.04 82.1 1,322
8.0 (1.0)
(3.7) (5.6)
% YoY 14.0 2,361.3 5.5 118.2 ‐ 67.0 (23.9) 1,097.0 3.8 3.8 3.8
2015E 13,756 (522) (882) (1,314) ‐ 192 1 905 (307) (307) (0.49) (3.8) (9.6) (2.2)
Source: NOK, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 5 of 7
YTD (% of 15E) 71.7 138.5 72.9 99.2 ‐ 79.5 21.2 77.8 166.2 166.2 166.2
THAI: Huge net loss expected in 3Q15E THAI’s earnings in 3Q15E are expected to remain in the red at Bt11.8bn, comprised of a normalized loss of Bt5.2bn and an unrealized FX loss of Bt6.5bn from baht depreciation against the US$, yen, and euro. The weakening core operating results should come mainly from the expected fall of the passenger yield to Bt2.337/RPK, ‐9% YoY and ‐2% QoQ, owing to high competition. Meanwhile, THAI is still not fully benefitting from the global jet fuel price decline owing to a high fuel hedging position of around 70% of fuel usage in the quarter. Figure 8: THAI’s 3Q15E earnings preview Profit and Loss (Btmn) Year‐end 31 Dec Revenue Operating cost Operating profit EBITDA Interest expenses Other incomes Income tax Forex gain (loss) Other extra items Gn (Ls) from affiliates Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Operating margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt/equity (x) BVPS (Bt) ROE (%) Statistic ASK (mn‐km) RPK (mn‐km) Cabin factor (%) Passenger Yield (Bt/RPK)
3Q14 45,826 (50,189) (4,363) 783 (1,472) 614 175 7,380 (1,131) (105) 1,086 (5,163) 0.50
2Q15 41,363 (48,982) (7,619) (2,987) (1,499) 534 (214) (3,679) (313) 35 (12,759) (8,768) (5.85)
3Q15E 41,394 (45,543) (4,149) 851 (1,552) 435 ‐ (6,532) ‐ 40 (11,767) (5,235) (5.39)
% YoY (9.7) (9.3) (4.9) 8.8 5.4 (29.1) ‐ (188.5) ‐ n.m. n.m. 1.4 n.m.
% QoQ 0.1 (7.0) (45.5) n.m. 3.5 (18.6) ‐ 77.5 ‐ 12.9 (7.8) (40.3) (7.8)
9M15E 133,973 (140,485) (6,512) 8,212 (4,460) 1,403 (231) (557) (9,816) 212 (19,984) (9,611) (9.16)
(9.5) 1.7 2.4 0.7 (3.0) 3.6 21.8 (43.9) 20,439 14,523 71.1 2.61
(18.4) (7.2) (30.8) 0.7 (5.1) 5.7 14.6 (90.4) 20,278 14,042 69.2 2.42
(10.0) 2.1 (28.4)
(4.9) 6.1 (14.9)
19,542 14,615 74.8 2.37
(4.4) 0.6 (9.0)
(3.6) 4.1 (2.0)
% YoY (3.0) (7.4) (52.2) 362.6 (1.9) (18.5) (223.4) (105.9) 327.9 3,848.8 117.0 (41.0) 117.0
2015E 187,849 (189,531) (1,682) 18,732 (6,170) 1,935 167 4,000 (11,586) 264 (13,108) (5,522) (6.01) (0.9) 10.0 (7.0) 0.6 (0.3) 6.4 12.3 (38.5)
Source: THAI, KT ZMICO Research Figure 9: THAI’s passenger and freight statistics Oct‐14 Nov‐14 Dec‐14 Jan‐15 Feb‐15 Mar‐15 Apr‐15 May‐15 Jun‐15 Jul‐15 Aug‐15 Sep‐15
ASK
RPK
(% yoy) (6.1) (4.6) (4.3) (1.8) 2.5 4.4 0.7 0.5 (0.7) (1.5) (1.5) (4.3)
(% yoy) (10.4) (5.9) 1.6 1.9 11.7 16.9 7.6 11.0 11.1 7.8 2.0 (2.5)
Total 68.3 70.1 74.8 74.2 76.2 76.9 75.9 66.0 66.2 76.8 78.1 68.9
Cabin factor (%) Regional 74.2 77.2 77.5 71.6 77.3 81.9 79.5 75.3 71.6 73.5 77.6 68.2
Europe 62.4 65.6 70.8 76.8 75.8 74.4 71.9 54.5 56.8 79.9 82.5 68.6
Freight load Factor (%) 50.2 54.0 47.0 54.5 65.3 61.9 58.6 58.7 57.8 53.9 57.0 62.9
Source: THAI
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 6 of 7
YTD (% of 15E) 71.3 74.1 387.3 43.8 72.3 72.5 (138.9) (13.9) 84.7 80.1 152.5 174.1 152.5
Note: KT ZMICO is a partnership between KTB and ZMICO. An executive of KT ZMICO Securities is also a board member of BCP, BTC, CI, KBS, PSL, SVH, VNG, ZMICO, CPI. KT ZMICO is a financial advisor for U, LOXLEY, SUTHA, ZMICO, MAKRO, CPALL, PLE, SAFARI, PACE, TPOLY, TFG, BRR. KT ZMICO is a co‐underwriter of KOOL, ORI, SCI, SR.
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 7 of 7
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KT•ZMICO Securities Company Limited
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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.
Neutral
October 30, 2015
3Q15E earnings preview Price chart
Source: ASPEN Share data (Transport & Logistics) SET index
1,390.04
Sector index
218.87
52‐week high
244.71
52‐week low
199.95
Market capitalization (Bt m)
812,004.57
% of market cap
6.16
Avg daily turnover (m shares)
354.43
Beta
0.50
Sector Performance (%)
1M
3M
12M
Absolute
3.18
‐3.21
2.14
Relative
0.12
0.26
16.02
Raenoo Bhandasukdi Analyst, no 17989 [email protected] 66 (0) 2695‐5836
Still select AAV and BA as our top picks According to our 3Q15E earnings preview for airlines listed in the SET, BA should be the best performer in the quarter followed by AAV. Meanwhile, NOK and THAI should still report losses in 3Q15E. However, we believe airlines’ earnings will improve in 4Q15E upon entering the high season. We maintain our earnings projections for 2015‐16E with AAV (BUY, TP Bt5.90) and BA (BUY, TP Bt25.00) still the top picks. We maintain our call that NOK’s (BUY, TP Bt10.80) earnings will turn positive in 2016E, based on our assumption that the red flag marked by the ICAO related to Thai aviation safety standards will be lifted in 1H16E. A delay in lifting the red flag will create downside risk for NOK. BA and AAV to still report better earnings in 3Q15E (YoY basis) Comparing the four airlines listed in the SET, BA is likely to report a better performance as this quarter is normally the peak season for Samui International Airport, prompting passenger volume and fare increases both YoY and QoQ. On the other hand, the third quarter is normally the low season for LCC operators (fewer holidays), with AAV’s earnings likely to be lower QoQ but turning around YoY to Bt118mn (including an unrealized FX loss from baht depreciation against the US$). Earnings in 3Q15E for NOK and THAI to remain in the red We estimate that NOK will still report a net loss of Bt362mn in 3Q15E owing mainly to weak ticket fares, higher maintenance costs, and a net operating loss from NOKSCOOT. Meanwhile, THAI’s performance is likely to stay in the red at Bt11.8bn owing to a weak core operation and a huge unrealized FX loss. However, we believe the earnings for both will turn around in 4Q15E upon entering the high season. NOK’s ticket fares in 4Q15E are likely to benefit from the increasing frequency and expansion of international routes (4 destinations in China, 1 in Myanmar, and 2 in Vietnam), along with a lower loss contribution from NOKSCOOT. Meanwhile, we calculate THAI’s net profit to turn around in 4Q15E on both the operation (peak season) and unrealized FX gains from the baht, which has begun to appreciate against core currencies currently (compared to end 3Q15). FAA downgrade (if it occurs) will not have much impact on airlines On 26‐28 October 2015, the US Federal Aviation Administration (FAA) revisited the Thai authorities after their previous audit in July relating to the Significant Safety Concern (SSC) signal by the ICAO for Thai aviation. According to news sources, the FAA will announce its decision in a month on whether to downgrade Thai airlines to Category 2 from Category 1 currently. As there are no Thai‐registered airlines operating direct flights to the US (THAI recently stopped direct flights to the US), an FAA downgrade would not directly impact the airline business; however, it would affect the credibility of Thai aviation.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 7
Figure 1: Rating and valuation summary
16E TP (Bt/shr)
Rating
AAV BA NOK THAI Average
Buy Buy Buy Underperform
5.90 25.00 10.80 10.40
14 190.5 121.4 n.m. n.m. 155.9
PER (x) 15E 19.4 24.9 n.m. n.m. 22.2
16E 16.4 20.3 9.5 14.4 15.2
14 1.2 1.7 1.3 0.6 1.2
PBV (x) 15E 1.2 1.6 1.4 0.8 1.2
16E 1.1 1.5 1.3 0.8 1.2
14 0.6 2.1 (11.3) (31.8) (10.1)
ROE (%) 15E 6.0 6.6 (8.4) (38.5) (8.6)
16E 7.0 7.8 13.8 5.7 8.6
Div. yield (%) 14 15E 16E ‐ 3.6 4.3 1.0 2.0 2.5 ‐ ‐ 3.1 ‐ ‐ ‐ 0.2 1.4 2.5
Source: KT ZMICO Research
Figure 2: Earnings summary Company AAV BA NOK THAI Total
Net profit (Btm) 14 15E 183 1,074 351 1,807 (472) (307) (15,612) (13,108) (15,549) (10,534)
16E 1,426 2,083 517 1,571 5,597
Norm. profit (Btm) 14 15E 120 1,179 348 1,694 (472) (307) (23,048) (5,522) (23,052) (2,955)
16E 1,399 2,083 517 1,571 5,570
Norm. EPS (Bt) 14 15E 0.02 0.24 0.17 0.81 (0.75) (0.49) (10.56) (2.53)
16E 0.29 0.99 0.83 0.72
Norm. EPS growth (%) 14 15E 16E (86.8) 881.4 18.6 (70.5) 387.1 23.0 (144.2) n.m. n.m. (76.0) n.m. 292.8
Source: KT ZMICO Research
Figure 3: 3Q15E earnings preview summary Profit and Loss (Btmn) Year‐end 31 Dec AAV BA NOK THAI Total
3Q14 5,715 5,034 2,750 45,826 59,325
Revenue (Btmn) 2Q15 3Q15E 7,041 7,239 4,944 5,715 3,258 2,968 41,363 41,394 56,606 57,316
YoY 26.7 13.5 7.9 (9.7) (3.4)
QoQ 2.8 15.6 (8.9) 0.1 1.3
3Q14 (209) (52) (372) 1,086 453
Net profit (Btmn) 2Q15 3Q15E 206 118 91 363 (150) (362) (12,759) (11,767) (12,612) (11,648)
YoY n.m. n.m. (2.9) n.m. n.m.
QoQ (42.9) 296.5 141.1 (7.8) (7.6)
Source: KT ZMICO Research
Figure 4: Progress of corrective action plan by the Thai government to solve the SSC notification problem Date
Progress
Jun‐15
ICAO imposed a red flag to Thailand on its website related to an SSC notification
Jun – Jul 15
Training of related parties, both theoretical and practical, regarding the transportation of dangerous goods
Completed preparation of dangerous goods manual and inspection manual, including checklists
Jul‐15
Thai DCA made announcement to 28 airline operators regarding recertification for AOC licenses
Aug‐15
AOC recertification started with three priority airlines (THAI, NOKSCOOT, Thai Air Asia)
Aug‐15
Started public hearing process for the new Aviation Act, which is likely to be enforced in Oct‐15 by using
section 44 of the “Constitution of the Kingdom of Thailand” (interim) Act 2014
Sep‐15
The Command Center for Resolving Civil Aviation Issues (CRCA) was set up to solve the problem
Sep‐15
Cabinet approved the issue of three executive decrees and one ministerial regulation to restructure
the Aviation Authority instead of issuing bills, which would be time consuming
Oct‐15
FAA revisit, expected to announce its decision in a month
Source: Thaipublica online news, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 7
AAV: Expect net profit of Bt118mn in 3Q15E We expect net profit of Bt118mn in 3Q15E for AAV, including FX loss of Bt86mn from baht depreciation against the US$ to Bt36.34, vs. Bt33.79 as of the end of 2Q15. Stripping out FX loss, AAV is likely to report normalized profit of Bt204mn in 3Q15E, improving from a normalized loss of Bt251mn in 3Q14 owing to higher passenger volume (+25% YoY to 2.9mn), a higher average fare (+1% YoY to Bt1,608/passenger), and gross profit margin (GPM) improvement thanks to the falling global jet fuel price (‐47% YoY to US$61/barrel). The average fare is expected to continue increasing owing to international route expansion, especially for three new Chinese destinations from U‐Tapao Airport, a new hub that AAV launched in Sep‐15. On a quarter‐to‐quarter basis, AAV’s normalized profit is likely to decline (‐18% QoQ) as this quarter is normally the low season, while there was also a tax expense increase. According to AAV, quarterly tax expense fluctuations depend on aircraft received (financial lease aircraft will result in deferred tax) and the BOI/non‐BOI profit contribution. As of 3Q15, AAV’s aircraft fleet had increased to 44, vs. 43 in 2Q15. The company will receive another aircraft in Nov‐15, raising the total to 45, in line with our expectation. Figure 5: AAV’s 3Q15E earnings preview Profit and Loss (Btmn) Year‐end 31 Dec Revenue Gross profit SG&A expenses EBITDA Interest expenses Other income Income tax Forex gain (loss) Minority interests Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt/equity (x) BVPS (Bt) ROE (%) Statistics Passenger volume (mn) Cabin factor (%) Average fare (Bt/pax)
3Q14 5,715 94 (497) (184) (87) 40 (17) 42 216 (209) (251) (0.04)
2Q15 7,041 1,000 (500) 780 (143) 33 67 (42) (208) 206 248 0.04
3Q15E 7,239 1,035 (521) 803 (142) 35 (20) (86) (183) 118 204 0.02
% YoY 26.7 997.1 4.8 n.m. 62.9 (12.6) 19.7 (303.5) (185.0) n.m. n.m. n.m.
% QoQ 2.8 3.6 4.2 3.0 (1.0) 6.9 (130.5) 105.5 (11.9) (42.9) (17.9) (42.9)
9M15E 22,189 3,788 (1,598) 3,032 (393) 91 (140) (120) (797) 830 950 0.17
1.7 (3.2) (3.7) 0.8 (4.6) 0.6 3.9 (4.4) 2.90 83.2 1,592
14.2 11.1 2.9 1.2 3.5 0.7 4.2 4.1 3.54 81.0 1,632
14.3 11.1 1.6
17.1 13.7 3.7
3.63 82.6 1,608
25.0 1.0
2.4 (1.5)
% YoY 23.8 341.0 16.6 4,717.6 91.2 (29.8) (757.5) (322.2) (401.4) n.m. n.m. n.m.
2015E 29,895 5,036 (2,120) 4,048 (535) 129 (326) (106) (1,005) 1,074 1,179 0.221 16.8 13.5 3.6 1.0 5.4 0.5 4.1 5.5
Source: AAV, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 7
YTD (% of 15E) 74.2 75.2 75.4 74.9 73.5 70.9 42.9 114.0 79.4 77.3 80.6 77.3
BA: Estimate net profit of Bt363mn in 3Q15E, a turnaround both YoY and QoQ We expect BA to report net profit of Bt363mn in 3Q15E, turning around from both 3Q14 and 2Q15. Our net profit estimate assumes passenger volume of 1.31mn (+12% YoY, +18% QoQ) thanks to BA’s normal high season (August), including route expansion to Samui Airport. For the same reason, we expect BA’s average fare at Bt3,768/passenger in 3Q15E, improving by 2% YoY and 7% QoQ. The same as AAV, we expect BA’s GPM in 3Q15E to improve, both YoY and QoQ, owing to the global jet fuel price decline. However, BA is likely to report tax expenses of Bt95mn in the quarter owing to one financial lease aircraft received. Meanwhile, other income is likely to decline from the previous quarter as no dividend was received from BDMS in 3Q15E. As of 3Q15, BA’s fleet had increased to 30 vs. 29 in 2Q15. Figure 6: BA’s 3Q15E earnings preview Profit and Loss (Btmn) Year‐end 31 Dec Revenue Gross profit SG&A expenses EBITDA Interest expenses Other income Income tax Forex gain (loss) Other extra items Gain (loss) from affiliates Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt/equity (x) BVPS (Bt) ROE (%) Statistic Passenger volume (mn) Cabin factor (%) Average fare (Bt/pax)
3Q14 5,034 728 (743) 149 (403) 250 2 ‐ 0 120 (52) (52) (0.03)
2Q15 4,944 553 (811) (59) (400) 506 32 113 ‐ 109 91 (22) 0.04
3Q15E 5,715 1,248 (809) 675 (414) 323 (95) ‐ ‐ 129 363 363 0.17
% YoY 13.5 71.5 8.8 351.9 2.7 29.2 n.m. ‐ ‐ 7.4 n.m. n.m. n.m.
% QoQ 15.6 125.8 (0.3) n.m. 3.5 (36.2) n.m. ‐ ‐ 18.0 296.5 n.m. 296.5
9M15E 17,142 3,797 (2,390) 2,034 (1,195) 1,080 (182) 113 ‐ 348 1,524 1,411 0.73
14.5 3.0 (1.0) 0.6 (0.0) 1.0 8.6 (1.6) 1.17 62.9 3,694
11.2 (1.2) 1.9 2.8 (0.6) 0.5 13.4 1.3 1.11 59.9 3,533
21.8 11.8 6.3
22.1 11.9 8.9
1.31 67.6 3,768
12.0 2.0
18.0 6.6
% YoY 10.8 57.0 10.2 182.8 (2.7) 36.7 834.6 218.4 ‐ 6.1 1,020.0 1,352.7 742.7
2015E 23,554 5,142 (3,330) 2,675 (1,647) 1,405 (184) 113 ‐ 477 1,807 1,694 0.86 21.8 11.4 7.7 2.6 1.1 0.6 12.5 7.0
Source: BA, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 7
YTD (% of 15E) 72.8 73.8 71.8 76.1 72.6 76.9 98.6 100.0 ‐ 73.0 84.3 83.3 84.3
NOK: Earnings to still be in the red in 3Q15E NOK is likely to still report a huge net loss in 3Q15E owing to the normal low season for LCC operators, a maintenance cost increase, and a loss contribution from NOKSCOOT. We estimate a net loss of Bt362mn in 3Q15E, declining by 3% YoY but increasing by 141% QoQ. NOK’s passenger volume in the quarter is expected to reach 2.04mn, increasing by 8% YoY but declining by 4% QoQ. Meanwhile, the average fare should remain on a downtrend at Bt1,322/passenger, ‐1% YoY and ‐6% QoQ, due to fierce competition and a lower contribution from international passengers compared to AAV. Even though global jet fuel prices declined, the GPM should still have weakened due to an increase in maintenance costs, the Baht weaken, and costs related to NOKSCOOT, which is currently operating flights to Singapore, Nanjing and Taipei (new destination in 3Q15). Figure 7: NOK’s 3Q15E earnings preview Profit and Loss (Btmn) Year‐end 31 Dec Revenue Gross profit SG&A expenses EBITDA Interest expenses Other income Income tax Minority interests Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Gross margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt/equity (x) BVPS (Bt) ROE (%) Statistics Passenger volume (mn) Cabin factor (%) Average fare (Bt/pax)
3Q14 2,750 (210) (240) (434) (1) 19 0 59 (372) (372) (0.60)
2Q15 3,258 (346) (211) (537) ‐ 99 0 308 (150) (150) (0.24)
3Q15E 2,968 (438) (194) (607) ‐ 40 ‐ 230 (362) (362) (0.58)
% YoY 7.9 108.5 (19.2) 39.8 ‐ 105.8 ‐ 290.9 (2.9) (2.9) (2.9)
% QoQ (8.9) 26.7 (8.2) 12.9 ‐ (59.4) ‐ (25.3) 141.1 141.1 141.1
9M15E 9,859 (724) (643) (1,303) ‐ 152 0 704 (510) (510) (0.82)
(7.6) (15.8) (13.5) 2.4 n.m. cash 6.0 (37.9) 1.89 84.2 1,335
(10.6) (16.5) (4.6) 2.5 cash cash 5.8 (16.2) 2.12 83.4 1,401
(14.8) (20.4) (12.2)
(7.3) (13.2) (5.2)
2.04 82.1 1,322
8.0 (1.0)
(3.7) (5.6)
% YoY 14.0 2,361.3 5.5 118.2 ‐ 67.0 (23.9) 1,097.0 3.8 3.8 3.8
2015E 13,756 (522) (882) (1,314) ‐ 192 1 905 (307) (307) (0.49) (3.8) (9.6) (2.2)
Source: NOK, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 5 of 7
YTD (% of 15E) 71.7 138.5 72.9 99.2 ‐ 79.5 21.2 77.8 166.2 166.2 166.2
THAI: Huge net loss expected in 3Q15E THAI’s earnings in 3Q15E are expected to remain in the red at Bt11.8bn, comprised of a normalized loss of Bt5.2bn and an unrealized FX loss of Bt6.5bn from baht depreciation against the US$, yen, and euro. The weakening core operating results should come mainly from the expected fall of the passenger yield to Bt2.337/RPK, ‐9% YoY and ‐2% QoQ, owing to high competition. Meanwhile, THAI is still not fully benefitting from the global jet fuel price decline owing to a high fuel hedging position of around 70% of fuel usage in the quarter. Figure 8: THAI’s 3Q15E earnings preview Profit and Loss (Btmn) Year‐end 31 Dec Revenue Operating cost Operating profit EBITDA Interest expenses Other incomes Income tax Forex gain (loss) Other extra items Gn (Ls) from affiliates Net profit (loss) Normalized profit (loss) Reported EPS (Bt) Operating margin (%) EBITDA margin (%) Net margin (%) Current ratio (x) Interest coverage (x) Debt/equity (x) BVPS (Bt) ROE (%) Statistic ASK (mn‐km) RPK (mn‐km) Cabin factor (%) Passenger Yield (Bt/RPK)
3Q14 45,826 (50,189) (4,363) 783 (1,472) 614 175 7,380 (1,131) (105) 1,086 (5,163) 0.50
2Q15 41,363 (48,982) (7,619) (2,987) (1,499) 534 (214) (3,679) (313) 35 (12,759) (8,768) (5.85)
3Q15E 41,394 (45,543) (4,149) 851 (1,552) 435 ‐ (6,532) ‐ 40 (11,767) (5,235) (5.39)
% YoY (9.7) (9.3) (4.9) 8.8 5.4 (29.1) ‐ (188.5) ‐ n.m. n.m. 1.4 n.m.
% QoQ 0.1 (7.0) (45.5) n.m. 3.5 (18.6) ‐ 77.5 ‐ 12.9 (7.8) (40.3) (7.8)
9M15E 133,973 (140,485) (6,512) 8,212 (4,460) 1,403 (231) (557) (9,816) 212 (19,984) (9,611) (9.16)
(9.5) 1.7 2.4 0.7 (3.0) 3.6 21.8 (43.9) 20,439 14,523 71.1 2.61
(18.4) (7.2) (30.8) 0.7 (5.1) 5.7 14.6 (90.4) 20,278 14,042 69.2 2.42
(10.0) 2.1 (28.4)
(4.9) 6.1 (14.9)
19,542 14,615 74.8 2.37
(4.4) 0.6 (9.0)
(3.6) 4.1 (2.0)
% YoY (3.0) (7.4) (52.2) 362.6 (1.9) (18.5) (223.4) (105.9) 327.9 3,848.8 117.0 (41.0) 117.0
2015E 187,849 (189,531) (1,682) 18,732 (6,170) 1,935 167 4,000 (11,586) 264 (13,108) (5,522) (6.01) (0.9) 10.0 (7.0) 0.6 (0.3) 6.4 12.3 (38.5)
Source: THAI, KT ZMICO Research Figure 9: THAI’s passenger and freight statistics Oct‐14 Nov‐14 Dec‐14 Jan‐15 Feb‐15 Mar‐15 Apr‐15 May‐15 Jun‐15 Jul‐15 Aug‐15 Sep‐15
ASK
RPK
(% yoy) (6.1) (4.6) (4.3) (1.8) 2.5 4.4 0.7 0.5 (0.7) (1.5) (1.5) (4.3)
(% yoy) (10.4) (5.9) 1.6 1.9 11.7 16.9 7.6 11.0 11.1 7.8 2.0 (2.5)
Total 68.3 70.1 74.8 74.2 76.2 76.9 75.9 66.0 66.2 76.8 78.1 68.9
Cabin factor (%) Regional 74.2 77.2 77.5 71.6 77.3 81.9 79.5 75.3 71.6 73.5 77.6 68.2
Europe 62.4 65.6 70.8 76.8 75.8 74.4 71.9 54.5 56.8 79.9 82.5 68.6
Freight load Factor (%) 50.2 54.0 47.0 54.5 65.3 61.9 58.6 58.7 57.8 53.9 57.0 62.9
Source: THAI
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 6 of 7
YTD (% of 15E) 71.3 74.1 387.3 43.8 72.3 72.5 (138.9) (13.9) 84.7 80.1 152.5 174.1 152.5
Note: KT ZMICO is a partnership between KTB and ZMICO. An executive of KT ZMICO Securities is also a board member of BCP, BTC, CI, KBS, PSL, SVH, VNG, ZMICO, CPI. KT ZMICO is a financial advisor for U, LOXLEY, SUTHA, ZMICO, MAKRO, CPALL, PLE, SAFARI, PACE, TPOLY, TFG, BRR. KT ZMICO is a co‐underwriter of KOOL, ORI, SCI, SR.
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 7 of 7
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KT•ZMICO Securities Company Limited
st
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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.
