VGI Global Media
VGI Global Media Underperform (FY18E TP Bt5.30)
Earnings Review
Close Bt5.30
Media & Publishing August 3, 2017
Beat forecast/Below forecast/In line
Flat earnings results in 1QFY18 Price Performance (%)
Maintain “Underperform” We expect flat earnings in 1QFY18 for VGI to act as a negative catalyst to VGI’s share price in the short term, even though we believe earnings will ramp up for the rest of this fiscal year. We believe VGI’s strategy to focus on the digital media platform (Rabbit Group) will strengthen its performance in the long term; however, huge investment will cap the profitability performance and the success story will take time to prove. We thus maintain our “Underperform” rating for VGI with the SOTP‐ based TP of Bt5.30, implying PER of 41x, which is the historical average. Flat normalized profit in 1QFY18 VGI delivered net profit of Bt175mn in 1QFY18 (Apr‐Jun 17), falling by 44% YoY owing to the absence of extra items booked in 1QFY17 (from gains from the change of the investment status of MACO). If we exclude extra items, normalized profit was flat YoY. Although revenue jumped to Bt852mn (+37% YoY), the flat earnings were due to the slightly lower gross profit margin (GPM) to 58% in 1QFY18, vs. 59% in 1QFY17, higher SG&A expenses (mainly from MACO’s M&A deals and the Rabbit Group’s employees increase), higher interest expenses, and the weakening performance from affiliates (mainly from the Rabbit Group’s associates).
Source: SET Smart
FY17
Consensus EPS (Bt)
0.132
0.155
KT ZMICO vs. consensus Share data
‐9.1%
‐14.8%
Reuters / Bloomberg
FY18
VGI.BK/VGI TB
Paid‐up Shares (m)
6,864.33
Par (Bt)
0.10
Market cap (Bt bn / US$ m) Foreign limit / actual (%)
36.00/1,094.00 49.00/7.99
52 week High / Low (Bt)
6.80/3.80
Avg. daily T/O (shares 000)
10,605.00
NVDR (%)
2.43
Estimated free float (%)
25.11
Beta
1.54
URL
www.vgi.co.th
CGR
Anti‐corruption
Level 3A (Established)
Raenoo Bhandasukdi Analyst no. 17989
Revenue expanded 37% YoY VGI posted revenue of Bt852mn in 1QFY18 (+37% YoY), consisting of: 1) BTS‐related media revenue of Bt519mn (+23% YoY) owing to improvement of ad spending via the BTS‐related platform, price adjustments for static media, and additional revenue from the station sponsorship campaign for “OPPO” mobile phone, 2) MACO’s outdoor media revenue of Bt170mn (+209% YoY) owing to a full‐quarter contribution and improvement of MACO’s revenue, 3) office buildings and other revenue of Bt66mn (flat YoY), and 4) Rabbit Group revenue of Bt97mn (+19% YoY), vs. VGI’s own target of Bt600mn for the whole year. Maintain earnings projection Although VGI’s earnings in 1QFY18 contributed only 19% of our full‐year projection, we decide to maintain our forecast as we expect revenue to ramp up for the rest of this fiscal year. Financials and Valuation FY Ended 31 Mar Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm. profit (Btmn) Norm. EPS (Bt) Norm. EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Mar PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
FY15 2,963 838 0.122 999 0.146 (56.38) 0.176 0.266 FY15 36.40 11.89 19.89 3.32 44.29 22.31
FY16 2,341 941 0.137 852 0.122 (15.97) 0.110 0.327 FY16 43.32 13.09 16.23 2.08 46.20 cash
FY17 3,051 826 0.120 689 0.100 (17.92) 0.060 0.270 FY17 52.78 16.39 19.60 1.13 40.33 116.26
[email protected] 66 (0) 2695‐5836
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
FY18E 3,830 908 0.132 908 0.132 31.71 0.119 0.297 FY18E 40.07 12.62 17.85 1.49 46.63 107.28
FY19E 4,609 1,138 0.166 1,138 0.166 25.30 0.149 0.330 FY19E 31.98 10.00 16.06 1.87 52.88 57.13
Figure 1: Summary of SOTP‐based valuation for VGI Business
% Holding
VGI
Valuation Method
Value to VGI (Bt)
DCF (WACC 8%)
5.09
MACO
33.68
DCF (WACC 9%)
0.22
SBK Line
30.00
DCF (WACC 10%)
0.01
5.31
SOTP‐based Source: KT ZMICO Research
Figure 2: VGI’s PER band and sensitivity of market prices based on PER at different standard deviation levels (X) 70 +2 S.D.
60
+1 S.D.
50 Avg. 40 30
-1 S.D. -2 S.D.
20
0
Oct-12 Nov-12 Jan-13 Feb-13 Apr-13 May-13 Jul-13 Aug-13 Oct-13 Nov-13 Jan-14 Feb-14 Apr-14 May-14 Jul-14 Aug-14 Oct-14 Dec-14 Jan-15 Mar-15 Apr-15 Jun-15 Jul-15 Sep-15 Oct-15 Dec-15 Jan-16 Mar-16 Apr-16 Jun-16 Jul-16 Sep-16 Oct-16 Dec-16 Jan-17 Mar-17 Apr-17 Jun-17 Jul-17
10
FY18E +1.0SD +0.5SD Average ‐0.5SD ‐1.0SD ‐1.5SD ‐2.0SD ‐2.5SD
PER (x) 52.2 48.2 44.2 40.2 36.2 32.2 28.2 24.2
Implied market price (Bt) 6.88 6.36 5.83 5.30 4.77 4.25 3.72 3.19
Upside/Downside vs. current market price (%) 29.9 19.9 10.0 0.0 (9.9) (19.9) (29.8) (39.8)
Source: Bloomberg, KT ZMICO Research
Figure 3: VGI’s 1QFY18 (Apr‐Jun 17) earnings review Profit and Loss (Btmn) Year‐end 31 Mar Revenue Gross profit SG&A EBITDA Interest expense Other income Income tax Other extra items Gn (Ls) 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 (%) Revenue structure BTS‐related Office building & others MACO Rabbit group
1QFY17 624 368 (189) 228 (5) 18 (39) 137 2 313 176 0.046
1QFY18 852 496 (257) 340 (23) 21 (55) ‐ (8) 175 175 0.026
59.0 36.6 28.3 1.2 39.1 0.2 0.37 29.4
58.2 39.9 20.6 0.8 10.4 1.4 0.30 36.1 519 66 170 97
422 66 55 81
% YoY 36.5 34.7 36.1 48.9 402.0 15.7 41.0 ‐ (441.6) (44.0) (0.6) (44.0)
FY17 3,051 1,783 (1,028) 1,102 (32) 99 (175) 137 (16) 826 689 0.12
FY18E 3,830 2,267 (1,222) 1,433 (69) 107 (231) ‐ (20) 908 908 0.13
% YoY 25.5 27.2 18.9 30.1 117.6 7.8 31.7 (100.0) 28.1 9.9 31.7 9.9
58.4 36.1 27.1 0.9 23.8 1.0 0.27 33.6
59.2 37.4 23.7 0.9 15.1 0.9 0.30 46.6
23.0 0.0 209.1 19.8
1,865 265 550 371
1,998 283 949 600
7.1 6.8 72.5 61.7
YTD (% of FY18E 22.2 21.9 21.0 23.7 33.3 19.6 23.6 ‐ 41.2 19.3 19.3 19.3 26.0 23.4 17.8 16.3
Source: VGI, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 3
Note: KT ZMICO has two major shareholders, Krungthai Bank PLC (KTB) and Seamico Securities PLC (ZMICO). Therefore, prior to making investments in the securities of KTB and ZMICO, investors should consider the risk factors carefully. An executive of KT ZMICO Securities is also a board member of BCP, BTC, CI, CPI, KBS, MAJOR, MK, PACE, PSL, SVH, VNG, ZMICO, SAWAD, TFG. A management member of KT ZMICO Securities is also a board member of BTC and NFC. KT ZMICO is a financial advisor for U, LOXLEY, ZMICO, MAKRO, CPALL, SAFARI, M‐CHAI, POMPUI, TTL, NMG, SAWAD.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD) Excellent (scores: 90 ‐ 100) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
Anti‐corruption Progress Indicator Source: Sec, Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC)
Level 1 (Committed) : Organization’s statement or board's resolution to work against corruption and to be in compliance with all relevant laws. Level 2 (Declared) : Public declaration statement to participate in Thailand's private sector Collective Action Coalition Against Corruption (CAC) or equivalent initiatives Level 3 (Established) : Public out preventive measures, risk assessment, communication and training for all employees, including consistent monitoring and review processes Level 4 (Certified) : Audit engagement by audit committee or auditors approved by the office of SEC, and receiving certification or assurance by independent external assurance providers (CAC etc.) Level 5 (Extended) : Extension of the anti‐corruption policy to business partners in the supply chain, and disclosure of any current investigations, prosecutions or closed cases Insufficient or not clearly defined policy Data not available / no policy
DISCLAIMER This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS
SECTOR RECOMMENDATIONS
BUY: Expecting positive total returns of 15% or more OVERWEIGHT: The industry, as defined by the analyst's over the next 12 months coverage universe, is expected to outperform the relevant OUTPERFORM: Expecting total returns between ‐10% primary market index by at least 10% over the next 12 months. to +15%; returns expected to exceed market returns NEUTRAL: The industry, as defined by the analyst's coverage over a six‐month period due to specific catalysts universe, is expected to perform in line with the relevant UNDERPERFORM: Expecting total returns between primary market index over the next 12 months. ‐10% to +15%; returns expected to be below market returns over a six‐month period due to specific UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant catalysts SELL: Expecting negative total returns of 10% or more primary market index by 10% over the next 12 months. over the next 12 months
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 3
KT ZMICO Securities Company Limited Head Office
WWW.KTZMICO.COM
8th, 15th‐17th,19th, 21st Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok, Thailand 10500 Telephone: (66‐2) 695‐5000 Fax: (66‐2) 695‐5173 KT ZMICO Connect 662 695 5555
Central World Branch
Amarin Branch
22nd Floor, Amarin Building, 496‐502 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 018‐6200 Fax: (66‐2) 018‐6298, (66‐2) 018‐6299
8th Floor, Ton Son Tower, 900 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 626‐6000 Fax: (66‐2) 626‐6111
Phaholyothin Branch
Sindhorn Branch
Viphavadee Branch
2nd Floor, Sindhorn Tower 1, 130‐132 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 627‐3550 Fax: (66‐2) 627‐3582, 627‐3600
G Floor, Lao Peng Nguan 1 Bldg., 333 Soi Cheypuand, Viphavadee‐Rangsit Road, Ladyao, Jatujak, Bangkok 10900 Telephone: (66‐2) 013‐8600 Fax: (66‐2) 618‐8569
BangKhae Branch
Chiang Mai Branch
Pak Chong Branch
999/9 The Offices at Central World, 16th Fl., Rama 1 Rd, Pathumwan, Bangkok 10330 Telephone: (66‐2) 264‐5888 Fax: (66‐2) 264 5899
1291/1, Shinnawatra Tower II, 3rd Floor, Phaholyothin Road, Phayathai, Bangkok 10400 Telephone: (66‐2) 686‐1500 Fax: (66‐2) 686‐1666
Ploenchit Branch
518 The Mall Group Building Bangkhae Branch, 6th Floor, Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Telephone: (66‐2) 454‐9979 Fax: (66‐2) 454‐9970
422/49 Changklan Road, Changklan Subdistrict, Amphoe Meuang, Chiang Mai 50100 Telephone: (053) 270‐072 Fax: (053) 272‐618
173 175, Mittapap Road, Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Telephone: (044) 279‐511 Fax: (044) 279‐574
Korat Branch
Khon Kaen Branch
Chonburi Branch
624/9 Changphuek Road, T.Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171
5th Floor, Charoen Thani Princess Hotel, 260 Srichan Road, T. Naimuang, A. Muang, Khon Kaen 40000 Telephone: (043) 389‐171‐193 Fax: (043) 389‐209
4th Floor, Forum Plaza Bldg., 870/52 Sukhumvit Road, T. Bangplasoy, A. Muang, Cholburi 20000 Telephone: (038) 287‐635 Fax: (038) 287‐637
Pattaya Branch
Chachoengsao Branch
Hat Yai Branch
Easy Point 2, 392/65 Moo.9, T.Nong Prue, A. Bang Lamung, Chonburi 20260 Telephone: (038) 420‐965 Fax: (038) 420‐968
108/34‐36 Mahajakkrapad Road, T.Namuang, A.Muang, Chachoengsao 24000 Telephone: (038) 813‐088 Fax: (038) 813‐099
200/301, 200/303 JULDIS HATYAI PLAZA Floor 3 , Niphat‐Uthit 3 Rd, Hatyai Songkhla 90110 Telephone: (074) 355530‐3 Fax: (074) 355534
Phuket Branch
22/61‐63, Luang Por Wat Chalong Road, Talat Yai, Mueang Phuket, Phuket 83000 Telephone: (076) 222‐811, (076) 222‐683 Fax: (076) 222‐861
Phitsanulok Branch
227/171 Borom Trilokkanat Road, Muang, Phitsanulok 65000 Telephone: 055‐219‐255 to 8 Fax: 055‐219‐259
Nakhon Pathom
Cyber Branch Ayutthaya
Cyber Branch @ North Nana
Cyber Branch Chiangrai
KrungThai Bank, Rojana Branch 253 Moo 5, Rojana Road, Phai Ling, Phra Nakhon Si Ayutthaya, Phra Nakhonsi Ayutthaya, 13000 Telephone: 035‐242‐477 Fax: 035‐242‐476
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd., Klong Toey Nua Subdistrict , Wattana District , Bangkok 10110 Telephone: 083‐490‐2871
River Hotel (Building 3rd),1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
KrungThai Bank, Hayaek Phokhun Mengrai Branch 116/19 Moo 19, Highway 110 Road, Rop Wiang, Mueang Chiang Rai, Chiang Rai, 57000 Telephone: 053‐715‐067 Fax: 053‐715‐068
Earnings Review
Close Bt5.30
Media & Publishing August 3, 2017
Beat forecast/Below forecast/In line
Flat earnings results in 1QFY18 Price Performance (%)
Maintain “Underperform” We expect flat earnings in 1QFY18 for VGI to act as a negative catalyst to VGI’s share price in the short term, even though we believe earnings will ramp up for the rest of this fiscal year. We believe VGI’s strategy to focus on the digital media platform (Rabbit Group) will strengthen its performance in the long term; however, huge investment will cap the profitability performance and the success story will take time to prove. We thus maintain our “Underperform” rating for VGI with the SOTP‐ based TP of Bt5.30, implying PER of 41x, which is the historical average. Flat normalized profit in 1QFY18 VGI delivered net profit of Bt175mn in 1QFY18 (Apr‐Jun 17), falling by 44% YoY owing to the absence of extra items booked in 1QFY17 (from gains from the change of the investment status of MACO). If we exclude extra items, normalized profit was flat YoY. Although revenue jumped to Bt852mn (+37% YoY), the flat earnings were due to the slightly lower gross profit margin (GPM) to 58% in 1QFY18, vs. 59% in 1QFY17, higher SG&A expenses (mainly from MACO’s M&A deals and the Rabbit Group’s employees increase), higher interest expenses, and the weakening performance from affiliates (mainly from the Rabbit Group’s associates).
Source: SET Smart
FY17
Consensus EPS (Bt)
0.132
0.155
KT ZMICO vs. consensus Share data
‐9.1%
‐14.8%
Reuters / Bloomberg
FY18
VGI.BK/VGI TB
Paid‐up Shares (m)
6,864.33
Par (Bt)
0.10
Market cap (Bt bn / US$ m) Foreign limit / actual (%)
36.00/1,094.00 49.00/7.99
52 week High / Low (Bt)
6.80/3.80
Avg. daily T/O (shares 000)
10,605.00
NVDR (%)
2.43
Estimated free float (%)
25.11
Beta
1.54
URL
www.vgi.co.th
CGR
Anti‐corruption
Level 3A (Established)
Raenoo Bhandasukdi Analyst no. 17989
Revenue expanded 37% YoY VGI posted revenue of Bt852mn in 1QFY18 (+37% YoY), consisting of: 1) BTS‐related media revenue of Bt519mn (+23% YoY) owing to improvement of ad spending via the BTS‐related platform, price adjustments for static media, and additional revenue from the station sponsorship campaign for “OPPO” mobile phone, 2) MACO’s outdoor media revenue of Bt170mn (+209% YoY) owing to a full‐quarter contribution and improvement of MACO’s revenue, 3) office buildings and other revenue of Bt66mn (flat YoY), and 4) Rabbit Group revenue of Bt97mn (+19% YoY), vs. VGI’s own target of Bt600mn for the whole year. Maintain earnings projection Although VGI’s earnings in 1QFY18 contributed only 19% of our full‐year projection, we decide to maintain our forecast as we expect revenue to ramp up for the rest of this fiscal year. Financials and Valuation FY Ended 31 Mar Revenues (Btmn) Net profit (Btmn) EPS (Bt) Norm. profit (Btmn) Norm. EPS (Bt) Norm. EPS growth (%) Dividend (Bt) BV (Bt) FY Ended 31 Mar PER (x) EV/EBITDA (x) P/BV (x) Dividend yield (%) ROE (%) Net gearing (%)
FY15 2,963 838 0.122 999 0.146 (56.38) 0.176 0.266 FY15 36.40 11.89 19.89 3.32 44.29 22.31
FY16 2,341 941 0.137 852 0.122 (15.97) 0.110 0.327 FY16 43.32 13.09 16.23 2.08 46.20 cash
FY17 3,051 826 0.120 689 0.100 (17.92) 0.060 0.270 FY17 52.78 16.39 19.60 1.13 40.33 116.26
[email protected] 66 (0) 2695‐5836
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 3
FY18E 3,830 908 0.132 908 0.132 31.71 0.119 0.297 FY18E 40.07 12.62 17.85 1.49 46.63 107.28
FY19E 4,609 1,138 0.166 1,138 0.166 25.30 0.149 0.330 FY19E 31.98 10.00 16.06 1.87 52.88 57.13
Figure 1: Summary of SOTP‐based valuation for VGI Business
% Holding
VGI
Valuation Method
Value to VGI (Bt)
DCF (WACC 8%)
5.09
MACO
33.68
DCF (WACC 9%)
0.22
SBK Line
30.00
DCF (WACC 10%)
0.01
5.31
SOTP‐based Source: KT ZMICO Research
Figure 2: VGI’s PER band and sensitivity of market prices based on PER at different standard deviation levels (X) 70 +2 S.D.
60
+1 S.D.
50 Avg. 40 30
-1 S.D. -2 S.D.
20
0
Oct-12 Nov-12 Jan-13 Feb-13 Apr-13 May-13 Jul-13 Aug-13 Oct-13 Nov-13 Jan-14 Feb-14 Apr-14 May-14 Jul-14 Aug-14 Oct-14 Dec-14 Jan-15 Mar-15 Apr-15 Jun-15 Jul-15 Sep-15 Oct-15 Dec-15 Jan-16 Mar-16 Apr-16 Jun-16 Jul-16 Sep-16 Oct-16 Dec-16 Jan-17 Mar-17 Apr-17 Jun-17 Jul-17
10
FY18E +1.0SD +0.5SD Average ‐0.5SD ‐1.0SD ‐1.5SD ‐2.0SD ‐2.5SD
PER (x) 52.2 48.2 44.2 40.2 36.2 32.2 28.2 24.2
Implied market price (Bt) 6.88 6.36 5.83 5.30 4.77 4.25 3.72 3.19
Upside/Downside vs. current market price (%) 29.9 19.9 10.0 0.0 (9.9) (19.9) (29.8) (39.8)
Source: Bloomberg, KT ZMICO Research
Figure 3: VGI’s 1QFY18 (Apr‐Jun 17) earnings review Profit and Loss (Btmn) Year‐end 31 Mar Revenue Gross profit SG&A EBITDA Interest expense Other income Income tax Other extra items Gn (Ls) 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 (%) Revenue structure BTS‐related Office building & others MACO Rabbit group
1QFY17 624 368 (189) 228 (5) 18 (39) 137 2 313 176 0.046
1QFY18 852 496 (257) 340 (23) 21 (55) ‐ (8) 175 175 0.026
59.0 36.6 28.3 1.2 39.1 0.2 0.37 29.4
58.2 39.9 20.6 0.8 10.4 1.4 0.30 36.1 519 66 170 97
422 66 55 81
% YoY 36.5 34.7 36.1 48.9 402.0 15.7 41.0 ‐ (441.6) (44.0) (0.6) (44.0)
FY17 3,051 1,783 (1,028) 1,102 (32) 99 (175) 137 (16) 826 689 0.12
FY18E 3,830 2,267 (1,222) 1,433 (69) 107 (231) ‐ (20) 908 908 0.13
% YoY 25.5 27.2 18.9 30.1 117.6 7.8 31.7 (100.0) 28.1 9.9 31.7 9.9
58.4 36.1 27.1 0.9 23.8 1.0 0.27 33.6
59.2 37.4 23.7 0.9 15.1 0.9 0.30 46.6
23.0 0.0 209.1 19.8
1,865 265 550 371
1,998 283 949 600
7.1 6.8 72.5 61.7
YTD (% of FY18E 22.2 21.9 21.0 23.7 33.3 19.6 23.6 ‐ 41.2 19.3 19.3 19.3 26.0 23.4 17.8 16.3
Source: VGI, KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 3
Note: KT ZMICO has two major shareholders, Krungthai Bank PLC (KTB) and Seamico Securities PLC (ZMICO). Therefore, prior to making investments in the securities of KTB and ZMICO, investors should consider the risk factors carefully. An executive of KT ZMICO Securities is also a board member of BCP, BTC, CI, CPI, KBS, MAJOR, MK, PACE, PSL, SVH, VNG, ZMICO, SAWAD, TFG. A management member of KT ZMICO Securities is also a board member of BTC and NFC. KT ZMICO is a financial advisor for U, LOXLEY, ZMICO, MAKRO, CPALL, SAFARI, M‐CHAI, POMPUI, TTL, NMG, SAWAD.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD) Excellent (scores: 90 ‐ 100) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
Anti‐corruption Progress Indicator Source: Sec, Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC)
Level 1 (Committed) : Organization’s statement or board's resolution to work against corruption and to be in compliance with all relevant laws. Level 2 (Declared) : Public declaration statement to participate in Thailand's private sector Collective Action Coalition Against Corruption (CAC) or equivalent initiatives Level 3 (Established) : Public out preventive measures, risk assessment, communication and training for all employees, including consistent monitoring and review processes Level 4 (Certified) : Audit engagement by audit committee or auditors approved by the office of SEC, and receiving certification or assurance by independent external assurance providers (CAC etc.) Level 5 (Extended) : Extension of the anti‐corruption policy to business partners in the supply chain, and disclosure of any current investigations, prosecutions or closed cases Insufficient or not clearly defined policy Data not available / no policy
DISCLAIMER This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS
SECTOR RECOMMENDATIONS
BUY: Expecting positive total returns of 15% or more OVERWEIGHT: The industry, as defined by the analyst's over the next 12 months coverage universe, is expected to outperform the relevant OUTPERFORM: Expecting total returns between ‐10% primary market index by at least 10% over the next 12 months. to +15%; returns expected to exceed market returns NEUTRAL: The industry, as defined by the analyst's coverage over a six‐month period due to specific catalysts universe, is expected to perform in line with the relevant UNDERPERFORM: Expecting total returns between primary market index over the next 12 months. ‐10% to +15%; returns expected to be below market returns over a six‐month period due to specific UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant catalysts SELL: Expecting negative total returns of 10% or more primary market index by 10% over the next 12 months. over the next 12 months
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 3
KT ZMICO Securities Company Limited Head Office
WWW.KTZMICO.COM
8th, 15th‐17th,19th, 21st Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok, Thailand 10500 Telephone: (66‐2) 695‐5000 Fax: (66‐2) 695‐5173 KT ZMICO Connect 662 695 5555
Central World Branch
Amarin Branch
22nd Floor, Amarin Building, 496‐502 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 018‐6200 Fax: (66‐2) 018‐6298, (66‐2) 018‐6299
8th Floor, Ton Son Tower, 900 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 626‐6000 Fax: (66‐2) 626‐6111
Phaholyothin Branch
Sindhorn Branch
Viphavadee Branch
2nd Floor, Sindhorn Tower 1, 130‐132 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 627‐3550 Fax: (66‐2) 627‐3582, 627‐3600
G Floor, Lao Peng Nguan 1 Bldg., 333 Soi Cheypuand, Viphavadee‐Rangsit Road, Ladyao, Jatujak, Bangkok 10900 Telephone: (66‐2) 013‐8600 Fax: (66‐2) 618‐8569
BangKhae Branch
Chiang Mai Branch
Pak Chong Branch
999/9 The Offices at Central World, 16th Fl., Rama 1 Rd, Pathumwan, Bangkok 10330 Telephone: (66‐2) 264‐5888 Fax: (66‐2) 264 5899
1291/1, Shinnawatra Tower II, 3rd Floor, Phaholyothin Road, Phayathai, Bangkok 10400 Telephone: (66‐2) 686‐1500 Fax: (66‐2) 686‐1666
Ploenchit Branch
518 The Mall Group Building Bangkhae Branch, 6th Floor, Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Telephone: (66‐2) 454‐9979 Fax: (66‐2) 454‐9970
422/49 Changklan Road, Changklan Subdistrict, Amphoe Meuang, Chiang Mai 50100 Telephone: (053) 270‐072 Fax: (053) 272‐618
173 175, Mittapap Road, Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Telephone: (044) 279‐511 Fax: (044) 279‐574
Korat Branch
Khon Kaen Branch
Chonburi Branch
624/9 Changphuek Road, T.Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171
5th Floor, Charoen Thani Princess Hotel, 260 Srichan Road, T. Naimuang, A. Muang, Khon Kaen 40000 Telephone: (043) 389‐171‐193 Fax: (043) 389‐209
4th Floor, Forum Plaza Bldg., 870/52 Sukhumvit Road, T. Bangplasoy, A. Muang, Cholburi 20000 Telephone: (038) 287‐635 Fax: (038) 287‐637
Pattaya Branch
Chachoengsao Branch
Hat Yai Branch
Easy Point 2, 392/65 Moo.9, T.Nong Prue, A. Bang Lamung, Chonburi 20260 Telephone: (038) 420‐965 Fax: (038) 420‐968
108/34‐36 Mahajakkrapad Road, T.Namuang, A.Muang, Chachoengsao 24000 Telephone: (038) 813‐088 Fax: (038) 813‐099
200/301, 200/303 JULDIS HATYAI PLAZA Floor 3 , Niphat‐Uthit 3 Rd, Hatyai Songkhla 90110 Telephone: (074) 355530‐3 Fax: (074) 355534
Phuket Branch
22/61‐63, Luang Por Wat Chalong Road, Talat Yai, Mueang Phuket, Phuket 83000 Telephone: (076) 222‐811, (076) 222‐683 Fax: (076) 222‐861
Phitsanulok Branch
227/171 Borom Trilokkanat Road, Muang, Phitsanulok 65000 Telephone: 055‐219‐255 to 8 Fax: 055‐219‐259
Nakhon Pathom
Cyber Branch Ayutthaya
Cyber Branch @ North Nana
Cyber Branch Chiangrai
KrungThai Bank, Rojana Branch 253 Moo 5, Rojana Road, Phai Ling, Phra Nakhon Si Ayutthaya, Phra Nakhonsi Ayutthaya, 13000 Telephone: 035‐242‐477 Fax: 035‐242‐476
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd., Klong Toey Nua Subdistrict , Wattana District , Bangkok 10110 Telephone: 083‐490‐2871
River Hotel (Building 3rd),1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
KrungThai Bank, Hayaek Phokhun Mengrai Branch 116/19 Moo 19, Highway 110 Road, Rop Wiang, Mueang Chiang Rai, Chiang Rai, 57000 Telephone: 053‐715‐067 Fax: 053‐715‐068
