Company Guide Workpoint Entertainment PCL

Version 5 | Bloomberg: WORK TB | Reuters: WORK.BK Refer to important disclosures at the end of this report

DBS Group Research . Equity 26 Apr 2017

BUY (Upgrade from HOLD) The show must go on Last Traded Price ( 25 Apr 2017): Bt53.50 (SET : 1,562.27) Upgrade from HOLD to BUY with a higher TP of Bt62. WORK Price Target 12-mth: Bt62.00 (16% upside) (Prev Bt52.00) has been continuously climbing the rating ladder and is now Potential Catalyst: New hit programmes and improving margin ranked third in Thailand’s digital TV space. Its rating increased to Where we differ: Below consensus due to more conservative costs 1.55% in March 2017, from 1.33% in 2016 and 0.85% in Analyst 2015. WORK is well recognised by Thai viewers for its creativity Nantika WIANGPHOEM +66 26577836 [email protected] and content quality. Many of its programmes, especially variety shows, game shows and quiz shows, are very popular. The key What’s New concept of WORK’s programmes revolves around knowledge,  3Q17E core earnings expected to rise to Bt83m wit, fun and entertainment. With its strong position, we believe (+190% y-o-y); fully recover from 4Q16 loss that WORK will continue to gain higher ratings and maintain its third position. Regarding the newest information received from  New hit programmes have enhanced overall the company, we have reflected the better-than-expected ratings and ad rates; revised earnings forecast to outlook in terms of the average ad rates in our forecast. As a reflect higher-than-expected ad rates result, we upgrade our HOLD call to BUY with a new TP of Bt62.  Upgrade to BUY with a new DCF-based TP of Bt62 More diversified audience base. WORK’s programmes are

designed to serve all types of audiences regardless of age, gender and geography. As a result, it appears to have more potential to expand its audience base vs other channels that Price Relative focus on only one specific group. Hence, it is likely to fall on the Bt Relative Index radar of ad agencies that are interested in purchasing ad time to 63.3 205 185 reach out to a generic audience group. 53.3 165 145 43.3 Tripling earnings in the next two years. We expect WORK’s 125 33.3 105 earnings to continuously record new highs in the coming years. 85 23.3 65 The robust growth will be driven by i) higher average ad rates, 13.3 45 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 from c.Bt50,000 in 2016 to Bt62,000 in 2017 and Bt75,000 in Workpoint Entertainment PCL (LHS) Relative SET (RHS) 2018, thanks to the increase in WORK’s rating, and ii) better Forecasts and Valuation economies of scale, as c.90% of its costs are fixed (with low FY Dec (Bt m) 2015A 2016A 2017F 2018F variable costs) – which will boost its margin from 43.2% in 2016 Revenue 2,388 2,634 4,248 5,104 to 46.2% in 2017 and 46.3% in 2018. As a result, we believe EBITDA 849 917 1,356 1,559 WORK will deliver solid earnings growth of 172% in FY17 and Pre-tax Profit 210 255 704 919 29% in FY18. Net Profit 164 199 546 713 Net Pft (Pre Ex.) 164 199 546 713 Net Pft Gth (Pre-ex) (%) nm 21.4 175.0 30.6 Valuation: EPS (Bt) 0.39 0.48 1.29 1.67 Our target price of Bt62 is based on DCF valuation with a EPS Pre Ex. (Bt) 0.39 0.48 1.29 1.67 EPS Gth Pre Ex (%) (1,046) 21 172 29 WACC of 8.8%. Diluted EPS (Bt) 0.39 0.48 1.29 1.67 Net DPS (Bt) 0.34 0.27 0.91 1.17 Key Risks to Our View: BV Per Share (Bt) 6.67 7.14 7.91 8.78 Intense competition, changes in audience preferences, market- PE (X) 135.7 112.4 41.4 32.1 PE Pre Ex. (X) 135.7 112.4 41.4 32.1 share expansion of other types of media and reliance on key P/Cash Flow (X) 55.9 38.4 24.5 18.9 personnel. EV/EBITDA (X) 25.6 23.9 16.5 14.4 Net Div Yield (%) 0.6 0.5 1.7 2.2 At A Glance P/Book Value (X) 8.0 7.5 6.8 6.1 Issued Capital (m shrs) 420 Net Debt/Equity (X) CASH CASH CASH CASH Mkt. Cap (Btm/US$m) 22,453 / 654 ROAE (%) 7.4 6.9 17.3 20.1 Major Shareholders (%)

Earnings Rev (%): 15 25 Phanya Nirunkul (%) 25.91 Consensus EPS (Bt): 1.28 1.87 Prapas Cholsaranon (%) 25.91 Other Broker Recs: B: 11 S: 0 H: 4 Nortrust Nominees Ltd. (%) 10.74 Source of all data on this page: Company, DBSVTH, Bloomberg Finance Free Float (%) 33.75 L.P 3m Avg. Daily Val (US$m) 1.5 ICB Industry : Consumer Services / Media

ASIAN INSIGHTS VICKERS SECURITIES ed: TH / sa:CS, PY Company Guide

Workpoint Entertainment PCL

WHAT’S NEW Strong 1Q17E earnings is expected

1Q17E net profit is expected to have fully recovered from Firm outlook continues: WORK’s rating had reached 1.55% in mourning period: We expect to post a core profit of Bt83m in March 2017 behind the second ranked TV station’s rating of 1Q17E (+190% y-o-y), turning from a loss of Bt72 in 4Q16 due 1.84%. WORK’s new high rating was supported by the to the suspension of TV programmes during the mourning continuous launch of several new popular programmes (such period. The strong y-o-y improvement in 1Q17E results was as “The Mask Singer” [1Q17 rating 7.91%], “I can see you mainly from i) the sharp rise in ad rate from Bt45,000-46,000 voice Thailand” [1Q17 rating 6.51%], “Mic Thong Kham Dek” per minute in 1Q16 to Bt58,000-60,000 per minute in 1Q17E, [1Q17 rating of 5.49%], etc. The higher rating allowed WORK ii) the improving gross margin from 41.7% to 46.0% in 1Q17E, to sell advertisements outside the normal package, which thanks to better economies of scale, and iii) the lower SGA-to- helped boost its average ad rates. sales of 31.0% vs 33.1% last year. WORK plans to launch the following seasons of the current hit

programmes as well as the new big format programmes Revised earnings forecast by 15% for FY17 and 25% for FY18. (including “We kids Thailand”, “My Little TV”, “Let me in Previously, due to the uncertainty of the abnormal situation as Thailand 3”, “The Mask Singer 2” and “Bao Young Blood well as the intense competition between TV stations, we Season 2”) in 2017. We believe the effort to develop new hit conservatively assumed FY17 ad rate of Bt60,000 with 10% programmes will enable WORK to enjoy sustainable average increase in each of the next five years which was below rating and ad rate growth in the future. management's guidance of Bt62,000 for FY17. However, from the latest information received from the company, the ad Upgrade from HOLD to BUY, with a higher TP of Bt62. Our new rate in 1Q17 had already reached Bt58,000-60,000 per minute TP of Bt62 is based on DCF valuation with a WACC of 8.8%. which is convincing that the whole year's average ad rate of Given the potential upside and the strong growth outlook, we Bt62,000 per minute is achievable. Hence, we have revised up upgrade our call from HOLD to BUY. our forecast by using the higher average ad rate of Bt62,000 per minute in 2017 and Bt75,000 per minute in 2018.

Quarterly / Interim Income Statement (Btm) FY Dec (Btm) 1Q16 4Q16 1Q17F Chg y-o-y Chg q-o-q Sales 547 509 683 25% 34% Cost of Goods Sold (319) (339) (369) 16% 9% Gross Profit 228 170 314 38% 85% SGA Expenses (181) (244) (212) 17% -13% Operating profit 47 (73) 103 117% -240% Other Income/expense 22 1 16 -28% 1894% Share profit / loss (2) 3 14 -841% 336% EBIT 68 (69) 133 97% -292% Interest expense (32) (22) (22) -30% 0% Pretax profit 36 (92) 111 210% -221% Income Tax (6) 15 (21) 231% -235% Minority interest (1) 4 (6) 848% -255% Norm. Profit 29 (72) 83 190% -216% Extra items 0 0 0 n.a. n.a. Net Profit 29 (72) 83 190% -216% EPS (Bt) 0.07 -0.17 0.20 190% -216% Nomalised Profit 29 -72 83 190% -216%

Gross Margin 41.7% 33.4% 46.0% SGA/ Sales 33.1% 47.9% 31.0% Operating Margin 8.6% -14.4% 15.0% Net Margin 5.3% -14.2% 12.2% Normalised Net Margin 5.3% -14.2% 12.2% Source of all data: Company, DBSVTH

ASIAN INSIGHTS VICKERS SECURITIES Page 2 Company Guide Workpoint Entertainment PCL

Top 3 highest-rating channels CRITICAL DATA POINTS TO WATCH % 4.5 4.0 Earnings Drivers: 3.5 2.969 Higher average ad rates from rising ratings and increase in hit 3.0 2.605 programmes. Normally, WORK sells ad time to agencies under 2.5 2.84 packages where rates will be fixed as per agreements. However, 2.0 1.15 1.19 1.16 1.12 1.5 0.98 1.08 0.78 0.85 0.8 in 4Q15, WORK had some hit programmes whose ad time was 1.0 0.74 sold separately from the standard packages and based on the 0.5

Cost Per Rating Point (CPRP). The ad rates for these 0.0

Jul-15 Jul-16

Jan-15 Jan-16 Jan-17

Jun-15 Jun-16

Oct-15 Feb-16 Oct-16 Feb-17

programmes (the prime time) ranged from Bt150,000-200,000 Feb-15

Apr-15 Sep-15 Apr-16 Sep-16

Dec-15 Dec-16

Nov-15 Nov-16

Mar-15 Mar-16 Mar-17

Aug-15 Aug-16

May-15 May-16 per minute. In 2017, there were some additional programmes WORK that were sold separately – “The Mask Singer” “Mic Thongkam Kids” and “” – due to their solid ratings. 2016 sales breakdown We also expect more programmes such as “SuperMuM” and Publication Movies Events 0% marketing “Teng-Nong Witthaya” to be sold separately in the future. Animation 0% Concerts 4% 5% Given WORK’s rating uptrend, we forecast its average ad rate 0% per minute to increase from c.Bt50,000 in 2016 to Bt62,000 in 2017 and Bt75,000 in 2018.

New programmes coming on stream continuously. To gain Television higher ratings and audience share, it plans to launch new programs 91% programmes. The new programmes lined up for 2017 are i) “We kids Thailand (singing show), ii) “My Little TV” (variety show), iii) “Let me in Thailand 3” (reality show), iv) “The Mask Singer 2” (singing show), and v) “Bao Young Blood Season 2” (singing show). Each programme is expected to gain high Gross margins (%) ratings (above 4%). Hence, its continuous efforts in launching 50.0 new programmes to gain higher ratings will allow the company 46.2 46.3 43.2 to charge higher ad rates on a sustainable basis. As a result, the 45.0 42.5 company’s revenue will continue growing. 40.0 38.2

35.0 Benefits from better economies of scale. c.90% of costs come 30.2 from fixed costs and are relatively revenue independent, 30.0 including amortisation expenses for its digital TV licence, 25.0 broadcast rental fees, production costs and amortisation expenses for purchased contents. Thus, we believe that by 20.0 growing its top line, WORK will enjoy the benefits of better 2013A 2014A 2015A 2016F 2017F 2018F economies of scale moving forward. We expect its gross margin Gross margin (%) to improve from 43.2% in 2016 to 46.2% in 2017 and 46.3% Revenue and net margins in 2018. Bt m 6,000 55.0 5,104 Expansion into social media. As more media companies foray 5,000 45.0 into the social networks due to their popularity (in view of the 4,248 increase in the number of users), WORK has also expanded its 4,000 35.0 2,634 on-air channels via social networks such as Youtube, Facebook 3,000 2,388 25.0 2,167 2,053 12.7 13.7 and Line TV, to take advantage of opportunities that might arise 2,000 10.9 15.0 in the social network arena. However, due to the limited target 6.7 7.4 groups for social networks, most agencies still prefer to use TV 1,000 -0.8 5.0 as the first choice to promote their products and services. 0 -5.0 Hence, the company believes that social media will grow in 2013A 2014A 2015A 2016A 2017F 2018F Thailand, though not rapidly in the next few years. Sales Net margin (%)

Source: Company, DBSVTH

ASIAN INSIGHTS VICKERS SECURITIES Page 3 Company Guide

Workpoint Entertainment PCL

Leverage & Asset Turnover (x) Balance Sheet: 1.0 Despite a net cash balance of Bt525m as of end-December 0.60 0.9 2016, WORK has Digital TV Licence Payable of Bt1,515.6m 0.50 0.8 which could be considered a major liability. The Digital TV 0.40 0.7 Licence Payable will be repaid by c.Bt200-370m per annum until 0.30 2020. The company expects to use internal cashflow from 0.20 0.6 operations and cash proceeds from its warrants issuance 0.5 (20,861,107 shares at an exercise price of Bt38.1) to support its 0.10 0.00 0.4 day-to-day operations, capex, and repayments of Digital TV 2014A 2015A 2016A 2017F 2018F License Payable and bank loans. WORK paid a dividend of Gross Debt to Equity (LHS) Asset Turnover (RHS) Bt0.27 per share in 2016. We expect Bt0.91 DPS in 2017 and Capital Expenditure Bt1.17 DPS in 2018, assuming a 70% dividend payout ratio. Btm 1,200.0 Share Price Drivers: 1,000.0

Launch of new hit programmes. WORK expects to continuously 800.0 launch new programmes to gain higher ratings. This allows the 600.0 company to charge higher ad rates which will help boost the 400.0 company’s top line and earnings. 200.0 Major events awarded. WORK plans to maintain its other 0.0 businesses (besides its television programme business) to deliver 2014A 2015A 2016A 2017F 2018F constant growth. If WORK manages to clinch the organising Capital Expenditure (-) contract for any unexpected major event, this could act as a ROE (%) catalyst for its share price. 20.0% Rising margins. WORK’s margins will continue improving due to better economies of scale, as most of its costs are fixed (with 15.0% low variable costs). As a result, WORK’s earnings will improve over time and this can help re-rate the share price. 10.0%

Key Risks: 5.0% Intense competition. C.91% of 2016's total revenue came from the TV media business which is considered highly 0.0% 2014A 2015A 2016A 2017F 2018F competitive. However, WORK has done well to gain higher ratings and expects to continue doing so. PB Band (x) Changes in audience preferences. The business faces the risk (x) of rapid changes in audience preference and fashion from time 14.2 to time. Hence, it might face lower ratings if it fails to keep up. 12.2

Expansion into other media. Recently, social media has been 10.2 gaining popularity and a higher share of the overall media +2sd: 8.98x 8.2 market. The increase in social media market share will +1sd: 7.36x 6.2 negatively affect the TV media business. Thus, WORK has Avg: 5.74x started to invest in social media via Youtube, Facebook and 4.2 -1sd: 4.12x

Line to cope with the changes. 2.2 -2sd: 2.5x Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Reliance on key personnel. The company’s TV business is driven by its key personnel, including MCs, and production and Source: Company, DBSVTH creative teams. Thus, the departure of such key personnel might negatively affect WORK’s ratings.

Company Background Workpoint Entertainment Pcl. (WORK) is engaged in the entertainment and media businesses. Its offers a wide range of products and services including digital TV channel, TV content production, movies, publishing, event organisation, show business, animation and computer graphics.

ASIAN INSIGHTS VICKERS SECURITIES Page 4 Company Guide Workpoint Entertainment PCL

Key Assumptions FY Dec 2014A 2015A 2016A 2017F 2018F

Sales (Bt m) 2,053 2,388 2,634 4,248 5,104 Sales growth (%) -5.3 16.3 10.3 61.3 20.2 Gross margin (%) 30.2 42.5 43.2 46.2 46.3 SGA/Sales (%) 32.2 31.6 31.2 29.8 29.6 Net profit margin (%) -0.8 6.7 7.4 12.7 13.7

Income Statement (Btm) FY Dec 2014A 2015A 2016A 2017F 2018F

Revenue 2,053 2,388 2,634 4,248 5,104 Cost of Goods Sold (1,434) (1,372) (1,496) (2,287) (2,742) Gross Profit 619 1,015 1,137 1,961 2,362 Other Opng (Exp)/Inc (661) (754) (822) (1,266) (1,511) Operating Profit (42.2) 261 315 695 852 Other Non Opg (Exp)/Inc 57.1 66.4 50.6 68.2 92.1 Associates & JV Inc 52.0 14.4 2.14 25.7 30.9 Net Interest (Exp)/Inc (101) (132) (113) (84.4) (55.5) Exceptional Gain/(Loss) 0.0 0.0 0.0 0.0 0.0 Pre-tax Profit (33.8) 210 255 704 919 Tax 19.1 (45.4) (52.1) (146) (190) Minority Interest (1.4) (0.8) (4.4) (12.1) (15.8) Preference Dividend 0.0 0.0 0.0 0.0 0.0 Net Profit (16.0) 164 199 546 713 Net Profit before Except. (16.0) 164 199 546 713 EBITDA 458 849 917 1,356 1,559 Growth Revenue Gth (%) (5.3) 16.3 10.3 61.3 20.2 EBITDA Gth (%) (14.6) 85.2 8.1 47.8 15.0 Opg Profit Gth (%) (113.1) (719.9) 20.5 120.6 22.6 Net Profit Gth (Pre-ex) (%) nm nm 21.4 175.0 30.6 Margins & Ratio Gross Margins (%) 30.2 42.5 43.2 46.2 46.3 Opg Profit Margin (%) (2.1) 11.0 12.0 16.4 16.7 Net Profit Margin (%) (0.8) 6.9 7.5 12.9 14.0 ROAE (%) (1.0) 7.4 6.9 17.3 20.1 ROA (%) (0.4) 3.1 3.6 10.1 13.2 ROCE (%) (1.3) 4.5 5.3 11.9 14.9 Div Payout Ratio (%) N/A 86.7 56.9 70.0 70.0 Net Interest Cover (x) (0.4) 2.0 2.8 8.2 15.3 Source: Company, DBSVTH

ASIAN INSIGHTS VICKERS SECURITIES Page 5 Company Guide

Workpoint Entertainment PCL

Quarterly / Interim Income Statement (Btm) FY Dec 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016

Revenue 641 547 802 776 509 Cost of Goods Sold (345) (319) (409) (430) (339) Gross Profit 296 228 392 347 170 Other Oper. (Exp)/Inc (251) (181) (197) (201) (244) Operating Profit 45.4 47.2 196 146 (73.4) Other Non Opg (Exp)/Inc 44.4 22.3 2.86 24.7 0.80 Associates & JV Inc 10.9 (1.9) (0.6) 1.36 3.30 Net Interest (Exp)/Inc (72.0) (31.8) (30.3) (28.2) (22.3) Exceptional Gain/(Loss) 0.0 0.0 0.0 0.0 0.0 Pre-tax Profit 28.7 35.7 168 143 (91.6) Tax (9.7) (6.3) (34.2) (27.1) 15.5 Minority Interest (2.1) (0.7) 0.47 (8.4) 4.15 Net Profit 16.9 28.7 134 108 (72.0) Net profit bef Except. 16.9 28.7 134 108 (72.0) EBITDA 232 199 343 316 (69.3)

Growth Revenue Gth (%) 0.1 (14.7) 46.6 (3.1) (34.5) EBITDA Gth (%) (9.3) (14.3) 72.5 (7.7) nm Opg Profit Gth (%) (47.6) 4.0 314.2 (25.6) (150.4) Net Profit Gth (Pre-ex) (%) (71.2) 70.5 366.0 (19.3) (166.7) Margins Gross Margins (%) 46.2 41.7 48.9 44.6 33.4 Opg Profit Margins (%) 7.1 8.6 24.4 18.8 (14.4) Net Profit Margins (%) 2.6 5.3 16.7 13.9 (14.2)

Balance Sheet (Btm) FY Dec 2014A 2015A 2016A 2017F 2018F

Net Fixed Assets 761 997 1,009 995 992 Invts in Associates & JVs 74.7 75.0 36.1 36.2 36.2 Other LT Assets 2,881 2,755 2,597 2,633 2,462 Cash & ST Invts 857 1,277 1,241 875 841 Inventory 78.2 46.7 84.8 130 155 Debtors 376 437 454 733 880 Other Current Assets 0.0 0.0 0.0 0.0 0.0 Total Assets 5,028 5,588 5,422 5,401 5,366

ST Debt 288 341 237 237 237 Creditor 485 391 331 506 606 Other Current Liab 233 370 389 374 200 LT Debt 694 406 579 369 159 Other LT Liabilities 1,614 1,294 900 554 375 Shareholder’s Equity 1,658 2,769 2,980 3,343 3,755 Minority Interests 55.8 18.1 6.28 18.4 34.2 Total Cap. & Liab. 5,028 5,588 5,422 5,401 5,366

Non-Cash Wkg. Capital (264) (277) (181) (17.9) 230 Net Cash/(Debt) (126) 530 425 269 445 Debtors Turn (avg days) 97.4 62.1 61.8 51.0 57.7 Creditors Turn (avg days) 135.4 184.7 139.1 88.7 94.0 Inventory Turn (avg days) 27.9 26.3 25.3 22.7 24.1 Asset Turnover (x) 0.6 0.4 0.5 0.8 0.9 Current Ratio (x) 1.3 1.6 1.9 1.6 1.8 Quick Ratio (x) 1.2 1.6 1.8 1.4 1.7 Net Debt/Equity (X) 0.1 CASH CASH CASH CASH Net Debt/Equity ex MI (X) 0.1 CASH CASH CASH CASH Capex to Debt (%) 67.1 134.1 94.8 130.9 196.8 Z-Score (X) 4.3 5.6 6.8 8.0 10.0

Source: Company, DBSVTH

ASIAN INSIGHTS VICKERS SECURITIES Page 6 Company Guide Workpoint Entertainment PCL

Cash Flow Statement (Btm) FY Dec 2014A 2015A 2016A 2017F 2018F

Pre-Tax Profit (33.8) 210 255 704 919 Dep. & Amort. 391 506 549 567 584 Tax Paid 19.1 (45.4) (52.1) (146) (190) Assoc. & JV Inc/(loss) 0.0 0.0 0.0 0.0 0.0 Chg in Wkg.Cap. 320 (379) (144) (132) (68.8) Other Operating CF (81.5) 105 (26.7) (72.2) (33.4) Net Operating CF 615 397 582 921 1,211 Capital Exp.(net) (659) (1,001) (774) (793) (779) Other Invts.(net) (24.6) (193) 16.1 1.57 2.52 Invts in Assoc. & JV 0.0 0.0 0.0 0.0 0.0 Div from Assoc & JV 0.0 15.0 0.0 0.0 0.0 Other Investing CF 5.41 100 (2.6) 0.0 0.0 Net Investing CF (678) (1,079) (760) (792) (776) Div Paid 0.0 (92.5) (113) (382) (499) Chg in Gross Debt 1,120 585 (4.8) 0.0 0.0 Capital Issues 200 1,073 199 199 199 Other Financing CF (694) (864) (96.7) (175) (173) Net Financing CF 626 702 (15.8) (359) (473) Currency Adjustments 0.0 0.0 0.0 0.0 0.0 Chg in Cash 563 19.8 (194) (230) (38.7) Opg CFPS (Bt) 0.77 1.87 1.74 2.49 2.99 Free CFPS (Bt) (0.1) (1.5) (0.5) 0.30 1.01 Source: Company, DBSVTH

Target Price & Ratings History

Bt 12-mth 57.07 Date of Closing S.No. T arget Rating 8 Report Price Price 52.07 1: 05 Jul 16 38.75 45.00 BUY 7 2: 11 Jul 16 39.00 45.00 BUY 47.07 3: 12 Jul 16 38.25 45.00 BUY 4: 04 Oct 16 35.00 45.00 BUY 42.07 5: 17 Oct 16 35.25 45.00 BUY 2 6 6: 11 Nov 16 38.00 45.00 BUY 37.07 4 5 7: 06 Feb 17 52.25 52.00 HOLD 13 8: 23 Feb 17 52.50 52.00 HOLD

32.07

27.07 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17

Note : Share price and Target price are adjusted for corporate actions.

Source: DBSVTH Analyst: Nantika WIANGPHOEM

ASIAN INSIGHTS VICKERS SECURITIES Page 7 Company Guide

Workpoint Entertainment PCL

DBSVTH recommendations are based an Absolute Total Return* Rating system, defined as follows: STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame) BUY (>15% total return over the next 12 months for small caps, >10% for large caps) HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps) FULLY VALUED (negative total return i.e. > -10% over the next 12 months) SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame) Share price appreciation + dividends

Completed Date: 26 Apr 2017 06:21:48 (THA) Dissemination Date: 26 Apr 2017 06:23:45 (THA)

Sources for all charts and tables are DBSVTH unless otherwise specified.

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ASIAN INSIGHTS VICKERS SECURITIES Page 8 Company Guide Workpoint Entertainment PCL

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Compensation for investment banking services: 3. DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively. Disclosure of previous investment recommendation produced: 4. DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates may have published other investment recommendations in respect of the same securities / instruments recommended in this research report during the preceding 12 months. Please contact the primary analyst listed in the first page of this report to view previous investment recommendations published by DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates in the preceding 12 months.

1 An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust of which the analyst, his spouse, minor child (natural or adopted) or minor step-child, is a beneficiary or discretionary object; or (iii) another person accustomed or obliged to act in accordance with the directions or instructions of the analyst. 2 Financial interest is defined as interests that are commonly known financial interest, such as investment in the securities in respect of an issuer or a new listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This term does not include commercial lending conducted at arm's length, or investments in any collective investment scheme other than an issuer or new listing applicant notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant.

ASIAN INSIGHTS VICKERS SECURITIES Page 9 Company Guide

Workpoint Entertainment PCL

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ASIAN INSIGHTS VICKERS SECURITIES Page 10 Company Guide Workpoint Entertainment PCL

United This report is produced by DBS Vickers Securities (Thailand) Co Ltd which is regulated by the Securities and Exchange Kingdom Commission, Thailand.

This report is disseminated in the by DBS Vickers Securities (UK) Ltd, ("DBSVUK"). DBSVUK is authorised and regulated by the Financial Conduct Authority in the United Kingdom.

In respect of the United Kingdom, this report is solely intended for the clients of DBSVUK, its respective connected and associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBSVUK. This communication is directed at persons having professional experience in matters relating to investments. Any investment activity following from this communication will only be engaged in with such persons. Persons who do not have professional experience in matters relating to investments should not rely on this communication.

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