COMPANY UPDATE Thailand
Bangkok Expressway and Metro
(BEM.BK/BEM TB)*
Outperform ‧‧‧Maintained On the path of recovery
Price as of 10 Jun 2020 10.00 Event Analyst meeting. 12M target price (Bt/shr) 11.10 Unchanged / Revised up (down) (%) 10.0 Impact Upside/downside (%) 10.0 Earnings to bottom out in 2Q20 due to full COVID#19 impact Key messages We expect earnings to bottom out in 2Q20 as traffic volume and ridership hit bottom in The overall tone of yesterday’s analyst meeting April 2020 (Figure 1 and 2). Traffic volume has already recovered to 1.1mn trips/day was slightly positive. We expect earnings to compared to its normal level pre&COVID&19 of 1.3&1.4mn trips/day. MRT ridership was bottom out in 2Q20 as traffic volume and also hit by COVID&19 with a low of 78K trips/day in April 2020 (Figure 2). Current ridership were hit by COVID719. Traffic volume ridership as of June 5, 2020, was 212K trips/day which is approximately 50% below the and ridership have gradually recovered since normal ridership of 400&450K trips/day. bottoming out in April 2020 (Figure 1 and 2). MRT Orange Line West project would be the key focus MRT Orange Line West would be the key focus project in 2020 in 2020. BEM’s expertise as an MRT operator and Management confirmed it would participate in bidding for MRT Orange Line West (PPP net strong construction track record would provide it a cost) with Ch. Karnchang (CK.TB/CK TB)* as the main contractor. TOR is expected to launch competitive edge in the bidding for the project. in June & July 2020. With a low net IBD/E of 1.48x as of 1Q20, BEM could gear up to 2.5x Other projects such as MRT Purple Line South and (per debenture covenant). Regardless of the winner, we expect ridership to increase further double7deck expressway would be in the medium to long term. We maintain a rating of Outperform after commercial operations of MRT Orange Line East (2024) begin as it is connected at the and roll our target price over to 1H21 at Bt11.10, Thailand Cultural Center station. BEM is the only underground MRT operator in Thailand based on SOTP. BEM’s 3Q20 earnings are likely to and CK has strong expertise in underground MRT construction, which would provide a improve QoQ due to further recovery in traffic competitive edge in bidding for the package. volume and ridership. Medium to long term potential growth remains attractive Trading data There would be an opportunity for BEM to be the operator of the Airport Rail Link project Mkt cap (Btbn/US$bn) 152.8/4.9 (to have more clarity by end 2020). TOR on MRT Purple Line South is expected to launch in Outstanding shares (mn) 15,285 4Q20 or early 2021. BEM is the current MRT Purple Line operator and it has a good chance Foreign ownership (mn) 1,454 of becoming the operator of MRT Purple Line South. We expect double&deck construction to 3M avg. daily trading (mn) 68 happen after the EIA study and approval which would take approximately two years. If this 527week trading range (Bt) 6.05712.00 project happens, toll concession would be extended for another 15 years. Performance (%) 3M 6M 12M Valuation and action Absolute 31.6 712.3 716.7 We maintain a rating of Outperform and roll our target price over to 1H21 at Bt11.1 0 Relative 3.4 72.7 71.9 based on SOTP. BEM’s 3Q20 earnings are likely to improve QoQ due to further recovery in Quarterly EPS traffic volume and ridership. The launch of TOR on MRT Orange Line West would be the Bt 1Q 2Q 3Q 4Q key short&term catalyst. 2017 0.05 0.05 0.05 0.05 2018 0.05 0.06 0.20 0.03 Risks 2019 0.05 0.05 0.06 0.03 Lower than expected traffic volume and ridership, delay on TOR of MRT Orange Line West. 2020 0.03 N.A. N.A. N.A. Share price chart Key financials and valuations 13 20 Dec17A Dec18A Dec19A Dec20F Dec21F 12 10 Revenue (Bt mn) 15,153 15,614 16,107 14,337 16,017 11 0 Gross profit (Bt mn) 5,947 5,841 5,797 5,903 7,815 10 (10) EBIT (Bt mn) 4,803 4,477 4,460 4,405 6,181 9 (20) Net profit (Bt mn) 3,123 5,317 5,435 2,581 4,050 8 (30) EPS (Bt) 0.20 0.35 0.36 0.17 0.26 7 (40) Normailized net profit (Bt mn) 3,114 2,888 2,956 2,581 4,050 6 (50) Normailized EPS (Bt) 0.20 0.19 0.19 0.17 0.26 Jun19 Aug19 Oct19 Jan20 Mar20 Jun20 DPS (Bt) 0.12 0.13 0.15 0.12 0.15 Share Price Price performance relative to SET EPS growth (%) 19.9 70.2 2.2 (52.5) 56.9 Source: SET Normalized EPS Growth (%) 19.5 (7.3) 2.4 (12.7) 56.9
P/E (x) 37.7 27.9 30.7 59.2 37.7 WisuwatYaikwawong, CFA P/B (x) 3.8 4.2 4.3 4.0 3.8 66.2658.888 Ext.8855 EV/EBITDA (x) 25.0 25.5 25.4 33.5 28.2 [email protected] Net Debt to Equity (x) 1.8 1.7 1.7 1.9 1.7 Dividend Yield (%) 1.2 1.3 1.5 1.2 1.5 Return on Avg. Equity (%) 10.2 15.9 14.6 6.7 10.3
Source: Company data, KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 1 June 11, 2020 http://research.kgi.com; Bloomberg: KGIT
Thailand Bangkok Expressway and Metro
Earnings to bottom out in 2Q20 due to full COVID#19 impact We expect BEM’s earnings to bottom out in 2Q20 as traffic volume and ridership was hit by COVID&19. Traffic volume bottomed out in April 2020 (Figure 1) due to restrictions on travel, curfew, and work from home policies. However, traffic volume has recovered rapidly as i) easing of lockdown with phase 1 in May 2020 and phase 3 in June 2020, and ii) awareness of COVID&19 which increases private transport (car) to reduce potential infection. Current traffic as of June 5, 2020, was 1.1mn trips/day, recovering from a low of 0.6mn trips/day in April. We expect traffic to ramp up in July 2020 as schools reopen.
MRT ridership was also hit by COVID&19 and bottomed out at 78K trips/day in April 2020 (Figure 2). Ridership as of June 5 was 212K trips/day, which is approximately 50% below normal ridership of 400K&450K trips/day. Management mentioned the breakeven point was 400K trips/day. However, phase 4 of lockdown easing may include the cancellation of the curfew, which would be positive to MRT’s operations, as it would extend operating hours from 6AM & 10.30PM to until midnight.
Despite the weak ridership and traffic volume in April 2020, BEM’s 2Q20 earnings would drop QoQ but would remain profitable.
Figure 1: Expressway # COVID#19 impact and recovery (Weekdays)
Source: Company data, KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 2 June 11, 2020 http://research.kgi.com; Bloomberg: KGIT
Thailand Bangkok Expressway and Metro
Figure 2: Blue Line ridership # COVID#19 impact and recovery (Weekdays)
Source: Company data, KGI Research
Figure 3: Social distancing before entering automatic gate Figure 4: Social distancing after entering automatic gate
Source: KGI Research Source: KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 3 June 11, 2020 http://research.kgi.com; Bloomberg: KGIT
Thailand Bangkok Expressway and Metro
Figure 5: Historical toll traffic volume Figure 6: Historical MRT Blue Line ridership Average traffic, '000 car/day Ridership, trips/day 1,300 450 1,200 400 1,100 350 1,000 300 900 250 800 200 700 150 600 500 100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 50 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Source: Company data, KGI Research Source: Company data, KGI Research
Figure 7: Daily toll revenue Figure 8: Average farebox revenue Toll revenue, Bt mn/day Fare, Bt/trips 30 28.0 28 27.5 26 27.0 24 26.5 22 26.0 20 25.5 25.0 18 16 24.5 24.0 14 23.5 12 23.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Source: Company data, KGI Research Source: Company data, KGI Research
Figure 9: MRT Orange Line West
Source: Company data, KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 4 June 11, 2020 http://research.kgi.com; Bloomberg: KGIT
Thailand Bangkok Expressway and Metro
Figure 10: Company profile Figure 11: Revenue outlook
Bangkok Expressway and Metro (BEM) engages in the construction and Revenue, Btbn management of expressways in Thailand. The company operates through 16.1 16.6 15.2 15.6 14.3 Expressway Business, Rail Business, a nd Commercial Development Business segments. It is involved in the O&M of metro services. The company also 4.5 4.7 5.0 5.8 4.6 operates and manages Si Rat Expressway, Si Rat 7 Outer Ring Road Expressway, and Udon Ratthaya Expressway, as well as MRT Purple Line
(PPP Gross cost) and MRT Blue Line and Blue Line extension projects (PPP 10.0 10.2 10.3 8.9 10.0 Net Cost) . In addition, it undertakes commercial developments related to the expressways; and engages in the rental of retail space, and advertising 2017 2018 2019F 2020F 2021F services, as well as offers telecommunication services inside and outside of Expressway Rail BMN train stations.
Source: Company data Source: Company data, KGI Research
Figure 12: Gross profit Figure 13: Net profit Gross profit, Btbn (LHS); gross profit margin, percent (RHS) Net profit, Btbn (LHS); net profit margin, percent (RHS)
8.0 44.0 6,000 40.0 42.3 34.1 33.7 7.0 41.5 42.0 35.0 39.2 37.4 36.0 5,000 6.0 30.0 40.0 4,000 21.7 5.0 20.6 25.0 18.0 4.0 38.0 3,000 20.0 7.0 5,317 5,435 3.0 15.0 5.9 5.8 5.8 5.9 36.0 2,000 3,123 3,612 2.0 2,581 10.0 34.0 1,000 1.0 5.0 0.0 32.0 0 0.0 2017 2018 2019F 2020F 2021F 2017 2018 2019F 2020F 2021F Gross profit Gross margin Net profit Net margin
Source: Company data, KGI Research Source: Company data, KGI Research
Figure 14: Company ROAA and ROAE Figure 15: Company dividend per share (DPS) ROAA and ROAE, percent Dividend per share, Bt
16.2 0.15 0.15 15.2 0.13 16.5 16.0 0.12 0.12 10.3 9.2 11.4 6.8 10.4
7.2
2017 2018 2019F 2020F 2021F ROAA ROAE 2017 2018 2019F 2020F 2021F
Source: Company data, KGI Research Source: Company data, KGI Research
Figure 16: Company's PER Figure 17: Company's PBV PER, times PBV, times
80.0 5.0 +2.0 sd = 4.6x +1.0 sd = 4.2x 60.0 +2.0 sd = 55.2x 4.0 +1.0 sd = 45.0x 40.0 Average = 34.8x Average = 3.7x 1.0 sd = 24.5x 3.0 1.0 sd = 3.3x 20.0 2.0 sd = 14.3x 2.0 sd = 2.8x
0.0 2.0 2016 2017 2018 2019 2020F 2021F 2016 2017 2018 2019 2020F 2021F
Source: KGI Research Source: KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 5 June 11, 2020 http://research.kgi.com; Bloomberg: KGIT
Thailand Bangkok Expressway and Metro
Quarterly Income Statement (Bt mn) Mar-17A Jun-17A Sep-17A Dec-17A Mar-18A Jun-18A Sep-18A Dec-18A Mar-19A Jun-19A Sep-19A Dec-19A Mar-20A Income Statement (Bt mn) Revenue 3,731 3,705 3,900 3,817 3,886 3,799 3,947 3,983 3,970 3,862 4,073 4,202 3,797 Cost of Goods Sold (2,321) (2,277) (2,305) (2,303) (2,363) (2,321) (2,394) (2,697) (2,451) (2,480) (2,592) (2,788) (2,495) Gross Profit 1,410 1,428 1,595 1,514 1,523 1,479 1,553 1,286 1,518 1,383 1,481 1,414 1,302 Operating Expenses (265) (284) (251) (345) (296) (312) (275) (480) (314) (331) (303) (389) (305) Other incomes 21 12 16 3 12 5 11 (2) 9 25 16 7 6 Operating Profit 1,167 1,156 1,360 1,173 1,239 1,172 1,289 803 1,214 1,076 1,195 1,032 1,003 Depreciation of fixed assets 922 842 889 892 906 886 920 (1,067) 984 968 1,006 1,069 845 Operating EBITDA 2,089 1,998 2,248 2,065 2,145 2,057 2,209 (263) 2,198 2,044 2,201 2,101 1,848 Non-Operating Income 17 17 10 130 119 113 112 106 100 141 318 92 82 Interest Income 17 17 10 130 119 113 112 106 100 104 97 92 82 Other Non-op Income 0 0 0 0 0 0 0 0 0 37 221 (0) 0 Non-Operating Expenses (379) (380) (364) (486) (594) (430) (420) (414) (404) (421) (422) (477) (455) Interest Expenses (379) (380) (364) (486) (594) (430) (420) (414) (404) (421) (422) (477) (455) Other Non-op Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 Equity Income/(Loss) 72 94 139 101 96 110 133 94 106 67 0 0 1 Pre-tax Profit 877 887 1,144 918 861 965 1,114 590 1,016 863 1,090 647 631 Current Taxation (172) (159) (198) (166) (163) (229) (699) (98) (196) (1,257) (175) (127) (123) Minorities 2 5 6 6 3 2 3 10 9 3 3 2 3 Extraordinary items 0 0 0 12 42 245 2,708 1 47 3,515 24 4 3 Net Profit 702 723 940 758 736 978 3,119 483 859 3,118 937 521 509 Core Profit 702 723 940 746 694 733 979 482 821 699 917 517 504 EPS (Bt) 0.05 0.05 0.06 0.05 0.05 0.06 0.20 0.03 0.06 0.20 0.06 0.03 0.03 Core EPS (Bt) 0.05 0.05 0.06 0.05 0.05 0.05 0.06 0.03 0.05 0.05 0.06 0.03 0.03 Margins Gross profit margin 37.8 38.5 40.9 39.7 39.2 38.9 39.4 32.3 38.3 35.8 36.4 33.7 34.3 Operating EBIT margin 31.3 31.2 34.9 30.7 31.9 30.8 32.7 20.2 30.6 27.9 29.3 24.6 26.4 Operating EBITDA margin 56.0 53.9 57.7 54.1 55.2 54.2 56.0 (6.6) 55.4 52.9 54.0 50.0 48.7 Net profit margin 18.8 19.5 24.1 19.9 18.9 25.7 79.0 12.1 21.6 80.7 23.0 12.4 13.4 Growth Revenue growth 23.3 26.9 13.7 2.4 4.1 2.5 1.2 4.3 2.2 1.7 3.2 5.5 (4.4) Operating EBIT growth 15.2 19.6 20.7 34.4 6.2 1.3 (5.2) (31.5) (2.1) (8.2) (7.3) 28.5 (17.4) Operating EBITDA growth 106.3 106.6 99.5 136.7 2.7 3.0 (1.8) (112.8) 2.5 (0.7) (0.4) (897.4) (15.9) Net profit growth (4.7) 49.5 12.4 (100.2) 4.8 35.3 231.9 (36.2) 16.7 218.8 (70.0) 7.9 (40.8)
Source: KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 6 June 11, 2020 http://research.kgi.com; Bloomberg: KGIT
Thailand Bangkok Expressway and Metro
Balance Sheet Profit & Loss
As of 31 Dec (Bt mn) 2017 2018 2019 2020F 2021F Year to 31 Dec (Bt mn) 2017 2018 2019 2020F 2021F Total Assets 98,919 103,831 111,697 118,669 114,472 Revenue 15,153 15,614 16,107 14,337 16,625 Current Assets 6,280 4,217 4,448 4,150 1,978 Cost of Goods Sold (9,206) (9,774) (10,310) (8,390) (9,585) Cash & ST Investments 4,077 1,959 1,861 1,574 (674) Gross Profit 5,947 5,841 5,797 5,948 7,040 Operating Expenses (1,144) (1,364) (1,336) (1,520) (1,662) Inventories 0 0 0 0 0 Other incomes 53 27 56 60 60 Accounts Receivable 426 514 482 472 547 Operating Profit 4,855 4,503 4,517 4,488 5,437 Others 1,777 1,744 2,104 2,104 2,104 Depreciation of fixed assets 3,545 3,867 4,026 2,545 2,911 Non!current Assets 92,639 99,614 107,249 114,520 112,494 Operating EBITDA 8,400 8,370 8,543 7,032 8,348 LT Investments 11,247 13,057 17,097 17,097 17,097 Non-Operating Income 175 451 651 676 748 Net fixed Assets 482 444 432 432 432 Interest Income 175 451 393 400 400 Others 80,911 86,113 89,721 96,991 94,966 Other Non-op Income 0 0 258 276 348 Total Liabilities 67,740 68,219 72,874 80,278 74,302 Non-Operating Expenses (1,610) (1,857) (1,723) (1,977) (1,725) Current Liabilities 11,583 14,607 11,429 11,826 12,900 Interest Expenses (1,610) (1,857) (1,723) (1,977) (1,725) Other Non-op Expenses 0 0 0 0 0 Accounts Payable 2,108 1,683 1,938 1,603 1,806 Equity Income/(Loss) 406 433 173 0 0 ST Borrowings 7,438 10,856 8,916 9,649 10,520 Pre-tax Profit 3,826 3,529 3,617 3,187 4,461 Others 2,037 2,067 574 574 574 Current Taxation (696) (1,189) (1,755) (586) (830) Long!term Liabilities 56,157 53,612 61,445 68,452 61,402 Minorities 19 19 17 19 19 Long0term Debts 53,972 51,544 57,416 64,536 57,486 Extraordinary items 12 2,996 3,590 0 0 Others 2,186 2,068 4,028 3,916 3,916 Net Profit 3,123 5,317 5,435 2,581 3,612 Shareholders' Equity 31,179 35,612 38,823 38,392 40,170 Normalized Net Profit 3,111 2,321 2,956 2,581 3,612 Common Stock 15,285 15,285 15,285 15,285 15,285 EPS (Bt) 0.20 0.35 0.36 0.17 0.24 Normalized EPS (Bt) 0.20 0.19 0.19 0.17 0.24 Capital Surplus 5,785 5,741 5,560 5,560 5,560 Retained Earnings 10,110 14,586 17,978 17,547 19,325 Source: KGI Research Preferred Stock 0 0 0 0 0
Source: KGI Research Cash Flow
Year to 31 Dec (Bt mn) 2017 2018 2019 2020F 2021F Key Ratios Operating Cash Flow 7,150 8,067 7,484 6,663 7,965 Year to 31 Dec (Bt mn) 2017 2018 2019 2020F 2021F Net Profit 3,123 5,317 5,177 3,825 4,926 Growth (% YoY) Depreciation & Amortization 3,545 3,867 4,026 2,545 2,911 Sales 15.6 3.0 3.2 (11.0) 16.0 Change in Working Capital 7,647 (495) 562 (326) 128 OP 16.4 (6.8) (0.4) (0.7) 21.4 Others (7,165) (621) (2,282) 620 0 EBITDA 10.4 (0.4) 2.1 (17.7) 18.7 Investment Cash Flow (2,798) (7,353) (7,563) (9,815) (885) NP 19.9 70.2 2.2 (52.5) 39.9 EPS 19.9 70.2 2.2 (52.5) 39.9 Net CAPEX (8,061) (13,851) (25,137) (9,815) (885) Normalized EPS 19.5 (7.3) 2.4 (12.7) 39.9 Change in LT Investment 0 0 0 0 0 Profitability (%) Change in Other Assets 5,262 6,498 17,574 0 0 Gross Margin 39.2 37.4 36.0 41.5 42.3 Free Cash Flow (911) (5,784) (17,653) (3,151) 7,080 Operating Margin 31.7 28.7 27.7 30.9 32.3 Financing Cash Flow (2,501) (2,815) (1) 4,108 (8,013) EBITDA Margin 55.4 53.6 53.0 49.0 50.2 Change in Share Capital 0 0 0 0 0 Net Profit Margin 20.6 34.1 33.7 18.0 21.7 ROAA 3.4 5.2 5.0 2.2 3.1 Net Change in Debt 14,507 990 3,933 7,853 (6,179) ROAE 10.2 15.9 14.6 6.7 9.2 Change in Other LT Liab. (17,008) (3,805) (3,934) (3,745) (1,834) Stability Net Cash Flow 1,850 (2,101) (80) 956 (933)
Gross Debt/Equity (%) 197.0 175.2 170.9 193.2 169.3 Net Debt/Equity (%) 183.9 169.7 166.1 189.1 171.0 Source: KGI Research Interest Coverage (x) 3.4 4.5 5.2 2.6 3.6 Interest & ST Debt Coverage (x) 0.6 0.7 0.8 0.4 0.5 Cash Flow Interest Coverage (x) 4.4 4.3 4.5 2.7 3.9 Rates of Return on Invested Capital Cash Flow/Interest & ST Debt (x) 0.8 0.6 0.7 0.5 0.5 COGS Depreciation Operating Exp. Operating Current Ratio (x) 0.5 0.3 0.4 0.4 0.2 Year 1" + + = Quick Ratio (x) 0.5 0.3 0.4 0.4 0.2 Revenue Revenue Revenue Margin 2017 60.8% 23.4% 7.6% 8.3% Net Debt (Bt mn) 57,333 60,441 64,471 72,612 68,680 2018 62.6% 24.8% 8.7% 3.9% Per Share Data (Bt) EPS 0.2 0.3 0.4 0.2 0.2 2019 64.0% 25.0% 8.3% 2.7% Normalized EPS 0.2 0.2 0.2 0.2 0.2 2020F 58.5% 17.7% 10.6% 13.1% CFPS 0.5 0.5 0.5 0.4 0.4 2021F 57.7% 17.5% 10.0% 14.8% Working Capital Net PPE Other Assets Capital BVPS 2.0 2.3 2.5 2.5 2.6 Year 1/ + + = SPS 1.0 1.0 1.1 0.9 1.1 Revenue Revenue Revenue Turnover EBITDA/Share 0.5 0.5 0.6 0.5 0.5 2017 0.35 0.16 0.75 1.77 DPS 0.1 0.1 0.2 0.1 0.1 2018 0.67 0.22 0.85 2.48 Activity 2019 0.43 0.32 1.07 1.05 Asset Turnover (x) 0.2 0.2 0.1 0.1 0.1 2020F 0.54 0.35 1.20 0.98 Days Receivables 10.3 12.0 10.9 12.0 12.0 2021F 0.66 0.31 1.04 1.46 Days Inventory 0.0 0.0 0.0 0.0 0.0 Operating Capital Cash After"tax Return Year x x = Days Payable 83.6 62.9 68.6 69.7 68.8 Margin Turnover Tax Rate on Inv. Capital 2017 8.3% 1.8 81.8 12.0 Cash Cycle (73.3) (50.9) (57.7) (57.7) (56.8) 2018 3.9% 2.5 81.7 7.9 Source: KGI Research 2019 2.7% 1.1 75.6 2.1 2020F 13.1% 1.0 75.6 9.7 2021F 14.8% 1.5 75.6 16.4
Source: KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 7 June 11, 2020 http://research.kgi.com; Bloomberg: KGIT
Thailand Bangkok Expressway and Metro
Bangkok Expressway and Metro – Recommendation & target price history
13 Date Rating Target Price
12 30Mar20 Outperform 10.00 7.60 26Dec19 Neutral 11.10 10.90 11
10
9
8
7
6 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Share price Target price lowered Target price raised
Source: KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 8 June 11, 2020 http://research.kgi.com; Bloomberg: KGIT
Thailand Corporate Governance
Corporate Governance Report of Thai Listed Companies
Companies with Excellent CG Scoring Stock Company name Stock Company name Stock Company name
EGCO ELECTRICITY GENERATING KTB KRUNG THAI BANK TISCO TISCO FINANCIAL GROUP KBANK KASIKORNBANK RATCH RATCHABURI ELECTRICITY GENERATING HOLDING KKP KIATNAKIN BANK SCB THE SIAM COMMERCIAL BANK
Companies with Very Good CG Scoring Stock Company name Stock Company name Stock Company name
ADVANC ADVANCED INFO SERVICE ERW THE ERAWAN GROUP SCC THE SIAM CEMENT AOT AIRPORTS OF THAILAND GFPT GFPT SPALI SUPALAI AP ASIAN PROPERTY DEVELOPMENT IFEC INTER FAR EAST ENGINEERING STEC SINO-THAI ENGINEERING AND CONSTRUCTION BBL BANGKOK BANK LPN L.P.N. DEVELOPMENT SVI SVI BH BUMRUNGRAD HOSPITAL MINT MINOR INTERNATIONAL TASCO TIPCO ASPHALT BIGC BIG C SUPERCENTER PS PRUKSA REAL ESTATE TCAP THANACHART CAPITAL CK CH. KARNCHANG QH QUALITY HOUSES TMB TMB BANK CPALL CP ALL ROBINS ROBINSON DEPARTMENT STORE TRUE TRUE CORPORATION CPN CENTRAL PATTANA RS RS DRT DIAMOND ROOFING TILES SAMART SAMART CORPORATION
Companies with Good CG Scoring Stock Company name Stock Company name Stock Company name
CENTEL CENTRAL PLAZA HOTEL HMPRO HOME PRODUCT CENTER MAKRO SIAM MAKRO DCC DYNASTY CERAMIC ILINK INTERLINK COMMUNICATION MODERN MODERNFORM GROUP GL GROUP LEASE KTC KRUNGTHAI CARD TRT TIRATHAI GLOW GLOW ENERGY MAJOR MAJOR CINEPLEX GROUP TVO THAI VEGETABLE OIL Companies classified Not in the three highest score groups Stock Company name Stock Company name Stock Company name
AAV ASIA AVIATION CHG CHULARAT HOSPITAL NOK NOK AIRLINES ANAN ANANDA DEVELOPMENT CKP CK POWER PACE PACE DEVELOPMENT CORPORATION BA BANGKOK AIRWAYS DTAC TOTAL ACCESS COMMUNICATION SAWAD SRISAWAD POWER 1979 BCH BANGKOK CHAIN HOSPITAL GLOBAL SIAM GLOBAL HOUSE TMT THAI METAL TRADE BDMS BANGKOK DUSIT MEDICAL SERVICES GPSC GLOBAL POWER SYNERGY TPCH TPC POWER HOLDING BANGKOK EXPRESSWAY AND METRO GUNKUL ENGINEERING WHA CORPORATION BEM GUNKUL WHA BJCHI BJC HEAVY INDUSTRIES LPH LADPRAO GENERAL HOSPITAL WORK WORKPOINT ENTERTAINMENT CBG CARABAO GROUP MTLS MUANGTHAI LEASING
Source: www.thai-iod.com Disclaimer : The disclosure of the survey result of the Thai Institute of Directors Association ("IOD") regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an assessment of operation and is not based on inside information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date or when there is any change to the relevant information. Nevertheless, KGI Securities (Thailand) Public Company Limited (KGI) does not confirm, verify, or certify the accuracy and completeness of such survey result.
*The Company may be issuer of Derivative Warrants on these securities. 9 June 11, 2020 http://research.kgi.com; Bloomberg: KGIT
Thailand Anti corruption Progress
Anticorruption Progress Indicator
Level 5: Extended Stock Company name Stock Company name Stock Company name CPN CENTRAL PATTANA SCC THE SIAM CEMENT
Level 4: Certified Stock Company name Stock Company name Stock Company name ADVANC ADVANCED INFO SERVICE IFEC INTER FAR EAST ENGINEERING SVI SVI BBL BANGKOK BANK KBANK KASIKORNBANK TCAP THANACHART CAPITAL DCC DYNASTY CERAMIC KKP KIATNAKIN BANK TISCO TISCO FINANCIAL GROUP DRT DIAMOND ROOFING TILES KTB KRUNG THAI BANK TMB TMB BANK EGCO ELECTRICITY GENERATING MINT MINOR INTERNATIONAL ERW THE ERAWAN GROUP SCB THE SIAM COMMERCIAL BANK Level 3: Established Stock Company name Stock Company name Stock Company name AAV ASIA AVIATION DTAC TOTAL ACCESS COMMUNICATION PACE PACE DEVELOPMENT CORPORATION ANAN ANANDA DEVELOPMENT GFPT GFPT PS PRUKSA REAL ESTATE AP ASIAN PROPERTY DEVELOPMENT GL GROUP LEASE RATCH RATCHABURI ELECTRICITY GENERATING HOLDING BA BANGKOK AIRWAYS GLOW GLOW ENERGY ROBINS ROBINSON DEPARTMENT STORE BDMS BANGKOK DUSIT MEDICAL SERVICES GPSC GLOBAL POWER SYNERGY SAMART SAMART CORPORATION BIGC BIG C SUPERCENTER HMPRO HOME PRODUCT CENTER SPALI SUPALAI BJCHI BJC HEAVY INDUSTRIES KTC KRUNGTHAI CARD STEC SINO-THAI ENGINEERING AND CONSTRUCTION CENTEL CENTRAL PLAZA HOTEL LPN L.P.N. DEVELOPMENT TASCO TIPCO ASPHALT CHG CHULARAT HOSPITAL MAKRO SIAM MAKRO TMT THAI METAL TRADE CK CH. KARNCHANG MODERN MODERNFORM GROUP TPCH TPC POWER HOLDING CKP CK POWER NOK NOK AIRLINES WHA NOK AIRLINES Level 2: Declared Stock Company name Stock Company name Stock Company name AOT AIRPORTS OF THAILAND GUNKUL GUNKUL ENGINEERING QH QUALITY HOUSES BH BUMRUNGRAD HOSPITAL ILINK INTERLINK COMMUNICATION TRT TIRATHAI SIAM GLOBAL HOUSE MUANGTHAI LEASING THAI VEGETABLE OIL TRUEGLOBAL MTLS TVO Level 1: Committed Stock Company name Stock Company name Stock Company name CBG CARABAO GROUP RS RS SAWAD SRISAWAD POWER 1979 MAJOR MAJOR CINEPLEX GROUP No progress Stock Company name Stock Company name Stock Company name BCH BANGKOK CHAIN HOSPITAL CPALL CP ALL WORK WORKPOINT ENTERTAINMENT BEM BANGKOK EXPRESSWAY AND METRO LPH LADPRAO GENERAL HOSPITAL
Source: www.cgthailand.org Disclaimer: The disclosure of the Anti.Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by the relevant institution as disclosed by the Office of the Securities and Exchange Commission, is made in order to comply with the policy and sustainable development plan for the listed companies. The relevant institution made this assessment based on the information received from the listed company, as stipulated in the form for the assessment of Anti.corruption which refers to the Annual Registration Statement (Form 56.1), Annual Report (Form 56.2), or other relevant documents or reports of such listed company . The assessment result is therefore made from the perspective of a third party. It is not an assessment of operation and is not based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after that date or when there is any change to the relevant information. Nevertheless, KGI Securities (Thailand) Public Company Limited (KGI) does not confirm, verify, or certify the accuracy and completeness of the assessment result.
*The Company may be issuer of Derivative Warrants on these securities. 10 June 11, 2020 http://research.kgi.com; Bloomberg: KGIT
Thailand Contact
KGI Locations China Shanghai Room 1507, Park Place, 1601 Nanjing West Road, Jingan District, Shanghai,
PRC 200040
Shenzhen Room 24D1, 24/F, A Unit, Zhen Ye Building, 2014 Bao’annan Road,
Shenzhen, PRC 518008
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Telephone 886.2.2181.8888 ‧ Facsimile 886.2.8501.1691
Hong Kong 41/F Central Plaza, 18 Harbour Road, Wanchai, Hong Kong
Telephone 852.2878.6888 Facsimile 852.2878.6800
Thailand Bangkok 8th 7 11th floors, Asia Centre Building
173 South Sathorn Road, Bangkok 10120, Thailand
Telephone 66.2658.8888 Facsimile 66.2658.8014
Singapore 4 Shenton Way #13701 SGX Centre 2
Singapore 068807
Telephone 65.6202.1188 Facsimile 65.6534.4826
KGI's Ratings Rating Definition
Outperform (OP) The stock's excess return over the next twelve months is ranked in the top 40% of KGI's coverage universe in the related market (e.g. Taiwan)..
Neutral (N) The stock's excess return over the next twelve months is ranked in the range between the top 40% and the bottom 40% of KGI's coverage universe in the related market (e.g. Taiwan)
Under perform (U) The stock's excess return over the next twelve months is ranked in the bottom 40% of KGI's coverage universe in the related market (e.g. Taiwan).
Not Rated (NR) The stock is not rated by KGI.
Restricted (R) KGI policy and/or applicable law regulations preclude certain types of communications, including an investment recommendation, during the course of KGI's engagement in an investment banking transaction and in certain other circumstances.
Excess return = 12M target price/current price
Note When an analyst publishes a new report on a covered stock, we rank the stock's excess return with those of other stocks in KGI's coverage universe in the related market. We will assign a rating based on its ranking. If an analyst does not publish a new report on a covered stock, its rating will not be changed automatically.
Disclaimer KGI Securities (Thailand) Plc. ( “The Company” ) disclaims all warranties with regards to all information contained herei n. In no event shall the Company be liable for any direct, indirect or any damages whatsoever resulting from loss of income or profits, aris ing by utilization and reliance on the information herein. All information hereunder does not constitute a solicitat ion to buy or sell any securities but constitutes our sole judgment as of this date and are subject to change without notice.
*The Company may be issuer of Derivative Warrants on these securities. 11 June 11, 2020 http://research.kgi.com; Bloomberg: KGIT