COMPANY UPDATE Thailand
Bangkok Airways (BA.BK/BA TB)*
Neutral‧Maintained ความหวงตั ่อการฟื้นตวในปั ี 2562-63 แผ่วลง
Price as of 18 Sep 2019 9.10 Event 12M target price (Bt/shr) 12.20 อพเดตขั อม้ ูลบริษทั ปรับลดประมาณการ และราคาเป้ าหมาย Unchanged/Revised up(down)(%) (34.4) lmpact Upside/downside (%) 34.1 แนวโน้มผลประกอบการ 2H62 ยงคงไมั ่เปลยนแปลงี่ HoH Key messages เราไดพบกบผ้ ั บรู้ ิหารบริษทเมั ื่อวานน้ี โดยไดสอบถามถ้ ึงแนวโนมของสายการบ้ ินและธุรกจของิ BA ใน เราไดพบกบผ้ ั บรู้ ิหารบริษทเมั ื่อวานน้ี และไดค้ ุยถึงแนวโนม้ 2H62 และปีหนา้ ซ่ึงทาใหํ เราคาดวา้ ่ แนวโนมโดยรวมของธ้ ุรกจสายการบิ ินจะยงคงออนแอั ่ ตอเน่ ื่อง โดย ของสายการบิน และธุรกจของิ BA ใน 2H62 และปีหนา้ เรา มีปัจจยหนั ุนจาก เป็นหวงประเด่ นการแขงข็ ่ นระหวางสายการบั ่ ินตาง่ ๆ ใน ิ ่ ่ ่ อีกสองสามปีขางหน้ า้ เนื่องจากผลกระทบที่เกดจากสงครามิ i) การชะลอตวของเศรษฐกจทั ี่สงผลตอท้งกลั ุมผโดยสารในประเทศู้ (จานวนผํ โดยสารชาวไทยู้ -11% การคา้ ดงนั ้นั เราจึงปรับลดประมาณการปีน้ีเป็นขาดทนุ YoY ใน 1H62) และระหวางประเทศ่ (จานวนผํ โดยสารชาวจู้ ีน -30% YoY ใน 1H62) สุทธิ 401 ลานบาท้ และปีหนาเป้ ็นขาดทุนสุทธิ 212 ลาน้ ii) เงินบาทแขงคาข็ ่ ้ึนเมื่อเทียบกบคาเงั ่ ินสกลอุ ื่น ๆ บาท จากเดิมที่คาดวาจะม่ ีกาไรสํ ุทธิ 663 ลานบาท้ และ668 iii) การแขงข่ นทั ี่เขมข้ นระหวางสายการบ้ ่ ินตาง่ ๆ ลานบาทตามล้ าดํ บั หลงจากปรั ับประมาณการใหมแล่ ว้ เรา iv) สนามบินมี slot เวลาวางจ่ ากดทํ ั ี่จะจดสรรใหั สายการบ้ ินขยายตลาดใหม่ ๆ ขยบไปใชั ราคาเป้ ้ าหมายกลางปี 2563 ที่ 12.20 บาท (อิงจาก P/BV ที่ 0.8x) จากเดิม 18.60 บาท เรายงคงคั าแนะนํ าถํ ือ โดยรวมแลว้ เราคิดวา่ BA จะยงคงมั ีผลขาดทุนสุทธิใน 2H62 ไมตางจาก่ ่ 1H62 ที่ขาดทุนสุทธิ 190 ลาน้ บาท (จากที่มีกาไรสํ ุทธิ 628 ลานบาทใน้ 1H61) ถึงแมวาตามปกต้ ่ ิแลว้ 3Q จะเป็นไตรมาสที่ผล Trading data ประกอบการของ BA มกจะดั ีข้ึน QoQ เนื่องจากผลการดาเนํ ินงานของบริษทจะไดั แรงหน้ ุนจากฤดู Mkt cap (Btbn/US$mn) 19.1/626 ทองเท่ ี่ยวของเกาะสมุย (ตวทั ารายไดํ หล้ กใหั กบเคร้ ั ือซ่ึงมี margin สูงกวา่ ) แตเรามองวาผลประกอบการ่ ่ Outstanding shares (mn) 2,100 3Q62 นาจะออนแอกวาในอด่ ่ ่ ีต นอกจากน้ี เรายงไมคั ่ ิดวาผลประกอบการของบร่ ิษทจะเรงตั ่ วขั ้ึนตามการ Foreign ownership (mn) 79.5 ทองเท่ ี่ยวโดยรวมที่แขงแกรงข็ ่ ้ึนใน 4Q62 เพราะไตรมาสสุดทายเป้ ็นชวงท่ ี่การทองเท่ ี่ยวสมุยมกจะั 3M avg. daily trading (mn) 1 ออนแอ่ 52-week trading range (Bt) 8.9-13.5 ปรับลดประมาณการปี FY62-63F Performance (%) 3M 6M 12M เราเป็นหวงประเ่ ดนการแขงข็ ่ นระหวางสายการบั ่ ินตาง่ ๆ ในอีกสองสามปีขางหน้ า้ เนื่องจากผลกระทบ Absolute (20.9) (24.2) (29.5) ท่ีเกดจากสงครามการคิ าท้ ี่ร้อนแรงมากข้ึน ดงนั ้นั เราจึงปรับลดประมาณการปีน้ีเป็นขาดทุนสุทธิ 401 Relative (17.9) (24.6) (25.4) ลานบาท้ และปีหนาเป้ ็นขาดทุนสุทธิ 212 ลานบาท้ (จากเดิมที่คาดวาจะม่ ีกาไรสํ ุทธิ 663 ลานบาท้ และ Quarterly EPS 668 ลานบาท้ ตามลาดํ บั ) เราไดปร้ ับลดประมาณการรายไดป้ ี FY62-63F ลง 5.4% และ 6.8% เนื่องจาก Bt Q1 Q2 Q3 Q4 เราคาดวาจะม่ ีการแขงต่ ดราคาตั วในอ๋ั ีกสองสามปีขางหน้ า้ ซ่ึงเราคาดวาจะท่ าใหํ อ้ ตรากาไรขั ํ ้นตั นของ้ 2017 0.26 (0.25) (0.07) 0.44 2018 0.34 (0.04) 0.02 (0.20) บริษทในปั ี FY62-63F ลดลงเหลือ 8.5-9.0% จากเดิม 17% 2019 0.24 (0.33) เข้าร่วมประมลโครงการพู ฒนาสนามบั นนานาชาติ ิอู่ตะเภา กอนหน่ าน้ ้ี BBS JV (BA, BTS* และ STEC*) ไดย้ นซองประมื่ ูลโครงการสนามบินนานาชาติอู่ตะเภา Share price chart โดยจะเป็นโครงการในรูปแบบ PPP Net Cost ที่มีอายสุ ญญาั 50 ปี (ออกแบบและกอสร่ ้าง 3 ปี 14 15
13 ดาเนํ ินการและซอมบ่ ารํ ุงอีก 47 ปี) และมีตนท้ ุนโครงการกวา่ 1 แสนลานบาท้ เรามองวาโครงการน่ ้ีจะ 5 12 ชวยกระจายฐานรายได่ ของบร้ ิษทั และเพ่ิมสดสวนรายไดั ่ จากกจการท้ ิ ี่เกยวขี่ องกบสนามบ้ ั ิน (จาก (5) 11 ปัจจุบนทั ี่ประมาณ 5% ของรายไดรวม้ ) (15) 10
9 (25) Valuation & Action 8 (35) หลงจากปรั ับประมาณการใหมแล่ ว้ เราขยบไปใชั ราคาเป้ ้ าหมายกลางปี 2563 ที่ 12.20 บาท (อิงจาก Sep-18 Nov-18 Feb-19 Apr-19 Jul-19 Sep-19 Share Price Price performance relative to SET P/BV ที่ 0.8x) จากเดิม 18.60 บาท เรายงคงคั าแนะนํ าถํ ือ Source: SET Risks เศรษฐกจถดถอยิ , เกดปิ ัญหาเสถียรภาพการเมืองไทยรอบใหม่ หรือเกดเหติ ุกอการร่ ้ายคร้ังใหญ่
Key financials and valuations Dec-16A Dec-17A Dec-18A Dec-19F Dec-20F Revenue (Bt mn) 24,692 24,932 25,156 24,384 24,432 Parin Kitchatornpitak Gross profit (Bt mn) 5,609 2,839 2,816 2,073 2,199 66.2658.8888 Ext. 8858 EBIT (Bt mn) 4,349 1,364 1,681 1,463 1,710 [email protected] Net profit (Bt mn) 1,768 788 249 (401) (212) EPS (Bt) 0.84 0.38 0.12 (0.19) (0.10) DPS (Bt) 0.42 0.19 0.08 0.00 0.00 EPS growth (%) (1.6) (55.4) (68.4) N.A. N.A. P/E (x) 10.8 24.3 76.7 N.A. N.A. P/B (x) 0.6 0.7 0.6 0.6 0.6 EV/EBITDA (x) 5.8 12.2 10.6 16.0 14.5 Net Debt to Equity (%) 7.5 6.3 7.3 7.3 7.3 Dividend Yield (%) 4.6 2.1 0.9 0.0 0.0 Return on Avg. Equity (%) 5.5 2.8 0.8 (1.3) (0.7) Source: Company data, KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 1 September 19, 2019 http://research.kgi.com; Bloomberg: KGIT
Figure 1: BA’s 2Q19 earnings performance Bt mn 2Q19 2Q18 YoY (%) 1Q19 QoQ (%) 1H19 1H18 YoY (%) Sale revenue 5,198 5,381 (3.4) 7,341 (29.2) 12,539 12,879 (2.6) Operating cost (5,472) (5,121) 6.9 (5,889) (7.1) (11,361) (10,762) 5.6 Gross profit (274) 260 N.A. 1,452 N.A. 1,178 2,117 (44.3) SG&A (1,091) (1,054) 3.5 (1,031) 5.9 (2,122) (1,978) 7.3 Pretax profit (740) (372) 99.1 614 N.A. 756 1,571 (51.9) Normalized profit (651) (366) N.A. 503 N.A. (190) 628 N.A. Net profit (694) (83) N.A. 504 N.A. (149) 455 N.A. EPS (Bt) (0.3) (0.0) N.A. 0.2 N.A. (0.1) 0.40 N.A. Percent 2Q19 2Q18 YoY (ppts) 1Q19 QoQ (ppts) 1H19 1H18 YoY (ppts) Gross margin (5.3) 4.8 (10.1) 19.8 (25.1) 9.4 16.4 (7.0) SG&A/Sales 21.0 19.6 1.4 14.0 7.0 16.9 15.4 1.6 Net profit margin (13.3) (1.5) (11.8) 6.9 (20.2) (1.5) 4.9 (6.4)
Operating statistics Passenger carried (mn) 1.3 1.3 1.7 3.0 3.0 Load factor (%) 65.2 63.4 74.6 70.1 70.1 Passenger yield (Bt/RPK) 4.0 4.1 4.7 4.4 4.5 Aircraft utilization (Hours/Aircraft/Day) 8.2 8.4 9.0 8.6 8.8
Source: Company data, KGI Research
Figure 2: Earnings revisions 2019FChange 2020F Change Revised Previous (%) Revised Previous (%) Financials Revenue (Bt mn) 24,384 25,780 (5.4) 24,432 26,205 (6.8) Net profit (Bt mn) (401) 663 (160.4) (212) 668 (131.7) EPS (Bt/share) (0.2) 0.3 (160.4) (0.1) 0.3 (131.7)
Key financial ratios Change Change Gross profit margin (%) 8.5 17.0 (8.5) 9.0 17.0 (8.0) SG&A to sales (%) 16.5 15.0 1.5 16.0 15.0 1.0 Net profit margin (%) (1.6) 2.6 (4.2) (1.6) 2.6 (4.2)
Source: Company data, KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 2 September 19, 2019 http://research.kgi.com; Bloomberg: KGIT
Figure 3: 1H18 point-of-sales
Source: Company data, KGI Research
Figure 4: Changes in booking behavior
Source: Company data, KGI Research
Figure 5: Advanced bookings for 2H19
Source: Company data, KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 3 September 19, 2019 http://research.kgi.com; Bloomberg: KGIT
Figure 6: Company profile Figure 7: Well-diversified business platform
Mr. Prasert Prasarttong-Osoth set up an airline business in 1968. It was established in 1984 as “Sahakol Air” to take over the airline business which had been operating under the company name “Krungthep Sahakol Co., Ltd.” and later changed to “Bangkok Airways”. The company officially commenced scheduled passenger flight services in 1986 under the name “Bangkok Airways”. In 1989, the company completed construction of its first airport, located in Samui, which was beginning to be developed as an international tourist destination. Further, the company obtained an International Air Transport Association (“IATA”) code, “PG.
Source: Company data Source: Company data, KGI Research
Figure 8: Proportion of passenger revenue in 2018 Figure 9: Cost structure in 2018 Percent Percent
CLMV Fuel,19 21 Passenger Services,12 Selling Expense Salary & Wages,13 5 Aircraft Samui 51 COGS, 91 24 Admin. Expense 4 Maintenance, 13 Other - Domestic Aircraft Lease, 6
Other,28 4 Other - nternational
Source: Company data, KGI Research Source: Company data, KGI Research
Figure 10: ROE Figure 11: ROA Percent Percent
7.0 3.5 5.8 3.2 2.9 6.0 5.8 3.0 5.0 2.5
4.0 2.0
3.0 2.8 1.5 1.4 0.7 2.0 1.0 1.4 0.8 0.4 1.0 0.5
0.0 0.0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Source: Company data, KGI Research Source: Company data, KGI Research
Figure 12: Booking by destination in 1H19 Figure 13: Fuel hedging Percent US$/bbl (LHS); percent (RHS)
Other - Domestic Indochina 36 15
4 45 Other - International
Samui
Source: Company data, KGI Research Source: Company data, KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 4 September 19, 2019 http://research.kgi.com; Bloomberg: KGIT
Quarterly Income Statement Mar-16A Jun-16A Sep-16A Dec-16A Mar-17A Jun-17A Sep-17A Dec-17A Mar-18A Jun-18A Sep-18A Dec-18A Mar-19A Jun-19A Income Statement (Bt mn) Revenue 7,280 5,350 6,222 5,841 7,121 5,361 6,317 6,132 7,498 5,381 6,376 5,901 7,341 5,198 Cost of Goods Sold (4,785) (4,375) (4,707) (5,217) (5,577) (5,291) (5,633) (5,591) (5,641) (5,121) (5,613) (5,965) (5,889) (5,472) Gross Profit 2,495 975 1,515 624 1,545 69 684 541 1,857 260 763 (63) 1,452 (274) Operating Expenses (900) (926) (923) (1,087) (915) (921) (1,094) (1,122) (924) (1,054) (1,011) (1,185) (1,031) (1,091) Other incomes 666 818 619 474 545 714 767 551 550 883 858 748 644 1,055 Operating Profit 2,261 866 1,211 11 1,175 (138) 357 (29) 1,482 89 610 (500) 1,066 (310) Non-Operating Income ------Interest Income ------Other Non-op Income ------Non-Operating Expenses (444) (420) (449) (440) (450) (443) (474) (473) (471) (461) (475) (467) (452) (430) Interest Expense (444) (420) (449) (440) (450) (443) (474) (473) (471) (461) (475) (467) (452) (430) Other Non-op Expenses ------Net Investment Income/(Loss) ------Pre-tax Profit 1,817 446 762 (430) 725 (581) (117) (502) 1,011 (372) 134 (966) 614 (740) Current taxation (242) (604) (123) 29 (160) (39) 44 (317) (180) 6 (35) 116 (105) 84 Minorities (22) (16) (18) (13) (17) (13) (15) (14) (9) (1) (3) (1) (6) 4 Extraordinary items - 45 42 94 - 100 (70) 1,764 (111) 284 (60) 438 2 (43) Net Profit 1,553 (128) 662 (320) 548 (534) (157) 930 710 (83) 36 (415) 504 (694) EPS (Bt) 1.0 (0.1) 0.4 (0.2) 0.3 (0.3) (0.1) 0.6 0.4 (0.1) 0.0 (0.3) 0.3 (0.4) Margins (%) Gross profit margin 34.3 18.2 24.4 10.7 21.7 1.3 10.8 8.8 24.8 4.8 12.0 (1.1) 19.8 (5.3) Operating margin 31.1 16.2 19.5 0.2 16.5 (2.6) 5.6 (0.5) 19.8 1.7 9.6 (8.5) 14.5 (6.0) Net profit margin 21.3 (2.4) 10.6 (5.5) 7.7 (10.0) (2.5) 15.2 9.5 (1.5) 0.6 (7.0) 6.9 (13.3) Growth (%) Revenue growth 12.3 8.2 5.6 0.7 (2.2) 0.2 1.5 5.0 5.3 0.4 0.9 (3.8) (2.1) (3.4) Operating growth 42.5 143.2 46.9 (98.3) (48.0) (115.9) (70.5) (377.7) 26.2 (164.7) 70.9 1,598.5 (28.1) (447.6) Net profit growth 45.2 (239.5) 14.5 (662.9) (64.7) 318.1 (123.7) (391.0) 29.6 (84.5) (123.1) (144.6) (29.0) 736.8
Source: KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 5 September 19, 2019 http://research.kgi.com; Bloomberg: KGIT
Balance Sheet Profit & Loss
As of 31 Dec (Bt mn) 2016 2017 2018 2019F 2020F Year to 31 Dec (Bt mn) 2016 2017 2018 2019F 2020F Total Assets 60,289 57,942 62,067 63,009 64,999 Sales 24,692 24,932 25,156 24,384 24,432 Current Assets 14,192 14,381 11,430 9,781 8,219 Cost of Goods Sold (19,083) (22,092) (22,339) (22,312) (22,233) Cash & ST Investments 10,670 9,996 7,648 6,435 4,867 Gross Profit 5,609 2,839 2,816 2,073 2,199 Inventories 369 479 542 345 344 Operating Expenses (3,836) (4,052) (4,174) (4,023) (3,909) Accounts Receivable 1,966 1,854 1,713 1,977 1,981 Operating Profit 1,773 (1,212) (1,357) (1,951) (1,710) Others 1,188 2,052 1,527 1,024 1,026 Net Interest (1,754) (1,840) (1,874) (1,912) (1,950) Non-current Assets 46,097 43,561 50,637 53,228 56,780 Net other Non-op. Income/(Loss) 2,576 2,576 3,039 3,414 3,420 LT Investments 31,688 27,568 33,451 33,451 33,451 Net Extraordinaries 112 1,735 535 (15) (8) Net fixed Assets 13,457 15,127 16,081 18,497 22,047 Pretax Income 2,595 (476) (193) (449) (240) Others 952 866 1,105 1,280 1,282 Income Taxes (939) (472) (93) 63 36 Total Liabilities 28,300 29,556 31,289 31,307 32,523 Net Profit 1,768 788 249 (401) (212) Current Liabilities 7,328 8,315 8,340 8,231 8,227 EBITDA 5,417 2,631 3,062 2,164 2,568 Accounts Payable 2,687 2,816 2,883 3,100 3,089 EPS (Bt) 0.84 0.38 0.12 (0.19) (0.10) ST Borrowings 465 583 761 723 721 Others 4,175 4,917 4,696 4,409 4,417 Source: KGI Research Long-term Liabilities 20,973 21,241 22,949 23,076 24,297 Long-term Debts 15,060 16,016 16,834 17,850 19,089 Others 5,913 5,225 6,115 5,226 5,207 Cash Flow Shareholders' Equity 31,989 28,386 30,778 31,702 32,476 Common Stock 2,100 2,100 2,100 2,100 2,100 Year to 31 Dec (Bt mn) 2016 2017 2018 2019F 2020F Capital Surplus 9,319 9,108 9,108 9,108 9,108 Operating Cash Flow 3,495 762 1,902 747 721 Retained Earnings 454 238 -544 1,213 1,155 Net Profit 1,768 788 249 (401) (212) Others 20,115 16,939 20,114 19,280 20,113 Depreciation & Amortization 1,068 1,267 1,380 701 858 Change in Working Capital 915 1,175 3,601 364 (7) Source: KGI Research Others (257) (2,468) (3,328) 82 82 Investment Cash Flow (675) 2,690 817 (2,878) (3,544) Net CAPEX (1,896) (1,343) (2,182) (2,416) (3,550) Key Ratios Change in LT Investment (24) (36) (34) 0 0 Year to 31 Dec (Bt mn) 2016 2017 2018 2019F 2020F Change in Other Assets 1,245 4,070 3,033 (462) 6 Growth (% YoY) Free Cash Flow 2,819 3,452 2,719 (2,132) (2,823) Sales 6.8 1.0 0.9 (3.1) 0.2 Financing Cash Flow (4,396) (2,959) (1,916) 919 1,255 OP 28.6 (68.6) 23.3 (13.0) 16.9 Change in Share Capital 0 0 0 0 0 EBITDA 28.5 (51.4) 16.4 (29.3) 18.7 NP (1.6) (55.4) (68.4) (260.8) (47.2) Net Change in Debt (1,126) (47) 972 881 1,102 EPS (1.6) (55.4) (68.4) (260.8) (47.2) Change in Other LT Liab. (3,270) (2,912) (2,888) 38 153 Profitability (%) Net Cash Flow (1,577) 494 803 (1,213) (1,567) Gross Margin 22.7 11.4 11.2 8.5 9.0 Operating Margin 17.6 5.5 6.7 6.0 7.0 Source: KGI Research EBITDA Margin 21.9 10.6 12.2 8.9 10.5 Net Profit Margin 7.2 3.2 1.0 (1.6) (0.9) ROAA 2.9 1.4 0.4 (0.6) (0.3) Rates of Return on Invested Capital ROAE 5.5 2.8 0.8 (1.3) (0.7) COGS Depreciation Operating Exp.Operating Stability Year 1- ++ = Revenue Revenue Revenue Margin Gross Debt/Equity (%) 48.558.557.258.661.0 2015 78.9% 3.6% 15.0% 2.5% Net Debt/Equity (%) 33.741.752.254.862.0 2016 77.3% 4.3% 15.5% 2.9% Interest Coverage (x) 2.1 2.5 0.7 0.9 0.8 2017 88.6% 5.1% 16.3% -9.9% Interest & ST Debt Coverage (x) 2.0 0.6 0.6 0.6 0.6 2018F 88.8% 5.5% 16.6% -10.9% 2019F 91.5% 2.9% 16.5% -10.9% Cash Flow Interest Coverage (x) 2.0 0.4 1.0 0.4 0.4 Working Capital Net PPE Other Assets Capital Year 1/ + + = Cash Flow/Interest & ST Debt (x) 1.6 0.3 0.7 0.3 0.3 Revenue Revenue Revenue Turnover Current Ratio (x) 1.9 1.7 1.4 1.2 1.0 2015 0.20 0.41 2.47 0.33 Quick Ratio (x) 1.9 1.7 1.3 1.1 1.0 2016 0.11 0.52 2.44 0.33 2017 0.12 0.58 2.32 0.33 Net Debt (Bt mn) 10,768 11,828 16,062 17,364 20,150 2018F 0.15 0.62 2.47 0.31 Per Share Data (Bt) 2019F 0.10 0.72 2.58 0.29 Operating Capital Cash After-tax Return EPS 0.8 0.4 0.1 (0.2) (0.1) Yearx x = CFPS 5.1 4.8 3.6 3.1 2.3 Margin Turnover Tax Rate on Inv. Capital 2015 2.5% 0.3 85.9% 0.7% BVPS 15.213.514.715.115.5 2016 2.9% 0.3 63.8% 0.6% SPS 11.811.912.011.611.6 2017 -9.9% 0.3 199.3% -6.5% EBITDA/Share 2.6 1.3 1.5 1.0 1.2 2018F -10.9% 0.3 148.3% -5.0% DPS 0.40.20.10.00.0 2019F -10.9% 0.3 86.0% -2.8% Activity Source: KGI Research Asset Turnover (x) 0.4 0.4 0.4 0.4 0.4 Days Receivables 29.127.124.929.629.6 Days Inventory 5.57.07.95.25.1 Days Payable (51.4) (46.5) (47.1) (50.7) (50.7) Cash Cycle 85.980.779.885.585.4
Source: KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 6 September 19, 2019 http://research.kgi.com; Bloomberg: KGIT
Bangkok Airways – Recommendation & target price history
14
13
12
11
10
9
8 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Share price Target price lowered Target price raised
Source: KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 7 September 19, 2019 http://research.kgi.com; Bloomberg: KGIT
Corporate Governance Report of Thai Listed Companies
Companies with Excellent CG Scoring Stock Company name Stock Company name Stock Company name
ADVANC ADVANCED INFO SERVICE HMPRO HOME PRODUCT CENTER QH QUALITY HOUSES ANAN ANANDA DEVELOPMENT INTUCH SHIN CORPORATION RATCH RATCHABURI ELECTRICITY GENERATING HOLDING AOT AIRPORTS OF THAILAND IRPC IRPC ROBINS ROBINSON DEPARTMENT STORE AP ASIAN PROPERTY DEVELOPMENT IVL INDORAMA VENTURES SAMART SAMART CORPORATION BANPU BANPU KBANK KASIKORNBANK SAMTEL SAMART TELCOMS BCP THE BANGCHAK PETROLEUM KCE KCE ELECTRONICS SCB THE SIAM COMMERCIAL BANK BTS BTS GROUP HOLDINGS KKP KIATNAKIN BANK SCC THE SIAM CEMENT CK CH. KARNCHANG KTB KRUNG THAI BANK SCCC SIAM CITY CEMENT CPF CHAROEN POKPHAND FOODS KTC KRUNGTHAI CARD SPALI SUPALAI CPN CENTRAL PATTANA LPN L.P.N. DEVELOPMENT SPRC STAR PETROLEUM REFINING DELTA DELTA ELECTRONICS (THAILAND) MINT MINOR INTERNATIONAL STEC SINO-THAI ENGINEERING AND CONSTRUCTION DTAC TOTAL ACCESS COMMUNICATION MONO MONO TECHNOLOGY SVI SVI EASTW EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMPLANB PLAN B MEDIA TCAP THANACHART CAPITAL EGCO ELECTRICITY GENERATING PSH PRUKSA HOLDING THCOM THAICOM GFPT GFPT PTT PTT TISCO TISCO FINANCIAL GROUP GPSC GLOBAL POWER SYNERGY PTTEP PTT EXPLORATION AND PRODUCTION TMB TMB BANK GUNKUL GUNKUL ENGINEERING PTTGC PTT GLOBAL CHEMICAL TOP THAI OIL HANA HANA MICROELECTRONICS PYLON PYLON TRUE TRUE CORPORATION Companies with Very Good CG Scoring Stock Company name Stock Company name Stock Company name
AAV ASIA AVIATION ERW THE ERAWAN GROUP SAWAD SRISAWAD POWER 1979 AMATA AMATA CORPORATION GLOBAL SIAM GLOBAL HOUSE SCI SCI ELECTRIC BBL BANGKOK BANK GLOW GLOW ENERGY SCN SCAN INTER BCPG BCPG LH LAND AND HOUSES SEAFCO SEAFCO BDMS BANGKOK DUSIT MEDICAL SERVICES MAJOR MAJOR CINEPLEX GROUP SIRI SANSIRI BEM BANGKOK EXPRESSWAY AND METRO MAKRO SIAM MAKRO SMT STARS MICROELECTRONICS (THAILAND) CENTEL CENTRAL PLAZA HOTEL MALEE MALEE SAMPRAN TASCO TIPCO ASPHALT CHG CHULARAT HOSPITAL MTLS MUANGTHAI LEASING TKN TAOKAENOI FOOD & MARKETING CKP CK POWER NOK NOK AIRLINES TVO THAI VEGETABLE OIL DCC DYNASTY CERAMIC RS RS TWPC THAI WAH Companies with Good CG Scoring Stock Company name Stock Company name Stock Company name
AMA AMA MARINE BPP BANPU POWER SQ SAHAKOL EQUIPMENT BA BANGKOK AIRWAYS CBG CARABAO GROUP TPCH TPC POWER HOLDING BCH BANGKOK CHAIN HOSPITAL LPH LADPRAO GENERAL HOSPITAL BH BUMRUNGRAD HOSPITAL SAPPE SAPPE Companies classified Not in the three highest score groups Stock Company name Stock Company name Stock Company name
BGRIM B.GRIMM POWER TOA TOA PAINT (THAILAND) WHAUP WHA UTILITIES AND POWER CPALL CP ALL UNIQ UNIQUE ENGINEERING AND CONSTRUCTION WORK WORKPOINT ENTERTAINMENT THAI THAI AIRWAYS INTERNATIONAL WHA WHA CORPORATION
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. 8 September 19, 2019 http://research.kgi.com; Bloomberg: KGIT
Anti-corruption 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 GLOBAL SIAM GLOBAL HOUSE MTLS MUANGTHAI LEASING TVO THAI VEGETABLE OIL 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. 9 September 19, 2019 http://research.kgi.com; Bloomberg: KGIT
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
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Telephone 852.2878.6888 Facsimile 852.2878.6800
Thailand Bangkok 8th - 11th floors, Asia Centre Building
173 South Sathorn Road, Bangkok 10120, Thailand
Telephone 66.2658.8888 Facsimile 66.2658.8014
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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 herein. In no event shall the Company be liable for any direct, indirect or any damages whatsoever resulting from loss of income or profits, arising by utilization and reliance on the information herein. All information hereunder does not constitute a solicitation 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. 10 September 19, 2019 http://research.kgi.com; Bloomberg: KGIT