Thailand Reinitiating Coverage

2 September 2016 Financial Services | Buy (from Neutral) Kiatnakin Target Price: THB58.00 Price: THB51.30 Superior Growth And Dividends Market Cap: USD1,254m Bloomberg Ticker: KKP TB

Reinitiate coverage on KKP with a BUY rating and TP of THB58.00 (13% Share Data upside). We project continued strong earnings growth recovery and a Avg. Daily Turnover (THB/USD) 175m/5.01m healthier balance sheet on: 52-wk Price low/high (THB) 30.3 - 52.5 1. Improved quality of auto HP loans and higher LLC ratio, which will Free Float (%) 76 reduce future credit costs; Shares outstanding (m) 847 2. Loan growth rebound from higher corporate and SME loans; Estimated Return 13% 3. Sustainable high NIM from good control of funding costs.

Our GGM-based TP implies FY17F P/BV of 1.1x and P/E of 10.1x. Shareholders (%) Credit Suisse AG, Hong Kong 8.5 Growth and dividend stock. We reinitiate coverage on Kiatnakin Bank (KKP) with a BUY call to reflect: Chase Nominees 7.4 Thai NVDR 6.0 i. Projected strong earnings 16% CAGR for 2016F-2018F, more than double

the 7% average for Thai banks under our coverage (TH banks); Share Performance (%) ii. Higher ROEs of 11.7-11.9% for 2016F-2018F; YTD 1m 3m 6m 12m iii. Improved asset quality with lower non-performing loans (NPLs) and higher Absolute 41.4 (2.4) 25.8 13.9 56.5 loan loss coverage (LLC) ratio; Relative 21.5 (3.7) 16.5 (2.0) 43.5 iv. Superior 2016-2018 dividend yields (5.8-6.6%), highest among TH Banks. Source: Bloomberg

Interim dividend ex-date on 6 Sep. KKP announced an interim dividend of Kiatnakin Bank (KKP TB) THB2.00/share (ex-date 6 Sep 2016, payment 23 Sep 2016), giving yield of 4%. Price Close Relative to Stock Exchange of Index (RHS) 58 158 To outperform on strong growth and higher ROEs. KKP’s share price has 53 146 outperformed by 38% YTD from Dec 2015 vs +20% for TH Banks. We believe 48 135 43 123 continued outperformance is warranted given strong projected earnings growth, 38 111 33 100 28 88 higher ROEs, and leading dividend yields among TH banks. 14 12 Earnings to sustain higher ROEs. The bank is expected to outperform in 10 terms of earnings growth (+38% YoY in 2016F vs +3% for the sector) on: 8 6 i. Higher loan growth from corporate and SME loans; 4 2 ii. Lower credit costs on resilient asset quality; Vol m Jul-16 Oct-15 Mar-16 Dec-15 Aug-15 iii. Higher fee income from securities and financial advisory businesses. May-16

Strong earnings growth will lift ROEs to 11.7-11.9% for 2016F-2018F from 8-9% Source: Bloomberg in 2014-2015. Resilient asset quality. KKP is guiding for a fall in NPL ratio to 5.1-5.3% (2015: 5.8%) on continued declines in auto hire purchase (HP) NPLs. Its Table Of Contents balance sheet continues to improve on higher LLC ratio. Actual provisions were Financial Exhibits 2 higher at 169% (2015: 160%) on ’s (BoT) requirement in 2Q16. Valuations And Recommendation 3 Earnings Outlook 5 This will reduce future credit costs and sustain long term growth – credit costs Company Profile 7 to fall to 135-90bps for 2016F-2018F (peak of 177bps in 2015). Business Overview 9 Industry Overview 18 Risks that could dampen KKP’s fundamentals include:

SWOT Analysis 21 i. No significant recovery in consumption spending due to high levels of household debt; ii. Continued declines in local car sales, which will dampen auto HP loans; iii. Persistent pressures on asset quality, which will elevate credit costs.

Forecasts and Valuations Dec-14 Dec-15 Dec-16F Dec-17F Dec-18F Reported net profit (THBm) 2,734 3,317 4,571 4,875 5,242 Net profit growth (%) (38.1) 21.3 37.8 6.6 7.5 Recurring net profit (THBm) 2,734 3,317 4,571 4,875 5,242 Recurring EPS (THB) 3.25 3.93 5.40 5.76 6.19 BVPS (THB) 43.5 44.8 47.8 50.5 53.3 DPS (THB) 1.85 3.00 2.97 3.17 3.41 Recurring P/E (x) 15.8 13.1 9.5 8.9 8.3 P/B (x) 1.18 1.14 1.07 1.01 0.96 Dividend Yield (%) 3.6 5.8 5.8 6.2 6.6 Analyst Return on average equity (%) 7.6 8.9 11.7 11.7 11.9 Tanadech Rungsrithananon Return on average assets (%) 1.1 1.4 1.9 2.0 2.1 +66 2862 9745 Our vs consensus EPS (adjusted) (%) (1.0) 2.6 0.0 [email protected]

Source: Company data, RHB

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Financial Exhibits

Financial model updated on: 2016-08-24.

Asia Financial summary (THB) Dec-14 Dec-15 Dec-16F Dec-17F Dec-18F Thailand Recurring EPS 3.25 3.93 5.40 5.76 6.19 Financial Services EPS 3.25 3.93 5.40 5.76 6.19 Kiatnakin Bank DPS 1.85 3.00 2.97 3.17 3.41 Bloomberg KKP TB BVPS 43.5 44.8 47.8 50.5 53.3

Buy Valuation metrics Dec-14 Dec-15 Dec-16F Dec-17F Dec-18F Valuation basis Recurring P/E (x) 15.8 13.1 9.5 8.9 8.3 i. GGM-based valuation based on i) Long term P/B (x) 1.18 1.14 1.07 1.01 0.96 growth of 2.5%, ii) Cost of equity of 10.5%, and Dividend Yield (%) 3.6 5.8 5.8 6.2 6.6 iii) Sustainable ROE of 11.7%.

Key drivers Income statement (THBm) Dec-14 Dec-15 Dec-16F Dec-17F Dec-18F Interest income 15,929 14,776 14,219 14,703 15,672 i. i) Infrastructure investments that would boost higher loan demand, and ii) Stimulus measures Interest expense (7,016) (5,328) (4,569) (4,789) (5,400) minimise NPL risks and shore up loan demand. Net interest income 8,913 9,449 9,650 9,915 10,271 Non interest income 3,719 5,228 5,804 5,882 6,049 Key risks Total operating income 12,633 14,676 15,454 15,797 16,320 i. i) A slower-than-expected economic recovery Overheads (6,270) (7,441) (7,300) (7,663) (8,036) that may dampen the demand for loans, ii) A Pre-provision operating profit 6,362 7,235 8,153 8,133 8,284 sharper-than-expected NIM compression due to Loan impairment allowances (3,199) (3,208) (2,417) (2,016) (1,706) competition for loans, and iii) A deterioration in loan quality that could pressure higher-than- Pre-tax profit 3,163 4,027 5,736 6,118 6,578 expected provision levels. Taxation (384) (602) (1,119) (1,193) (1,283) Minority interests (45) (108) (46) (49) (53) Company Profile Reported net profit 2,734 3,317 4,571 4,875 5,242 Kiatnakin Bank (KKP) is a commercial bank that Recurring net profit 2,734 3,317 4,571 4,875 5,242

provides a full range of financial services. It is a major player in the auto financing segment, with such loans comprising 65% of its total loans (mostly upcountry). It Profitability ratios Dec-14 Dec-15 Dec-16F Dec-17F Dec-18F also has residential project and corporate loans Return on average assets (%) 1.1 1.4 1.9 2.0 2.1 services. KKP merged with Phatra Financial Group in Return on average equity (%) 7.6 8.9 11.7 11.7 11.9 Sept 2012 under a share-swap deal. Post merger, Return on IEAs (%) 7.1 6.9 6.8 6.8 7.0 Phatra’s management and staff (RPIC) holds a 10.4% Cost of funds (%) 3.7 3.0 2.6 2.6 2.8 stake in KKP, becoming its second-largest shareholder after the Watanavakin family’s 23.6% Net interest spread (%) 3.4 3.9 4.2 4.2 4.2 stake (30.8% previously). Net interest margin (%) 4.0 4.4 4.6 4.6 4.6 Non-interest income / total income (%) 29.4 35.6 37.6 37.2 37.1

Cost to income ratio (%) 49.6 50.7 47.2 48.5 49.2 Credit cost (bps) 171 177 135 110 90

Balance sheet (THBm) Dec-14 Dec-15 Dec-16F Dec-17F Dec-18F Total gross loans 184,118 177,681 180,403 186,075 193,103 Other interest earning assets 36,296 30,092 31,226 32,475 33,774 Total gross IEAs 220,414 207,772 211,629 218,551 226,877 Total provisions (8,321) (9,546) (9,965) (9,981) (9,688) Net loans to customers 175,797 168,135 170,438 176,094 183,415 Total net IEAs 212,093 198,227 201,664 208,569 217,189 Total non-IEAs 29,060 37,918 36,842 39,477 40,779 Total assets 241,153 236,144 238,506 248,046 257,968 Customer deposits 132,297 104,327 105,499 108,816 112,925 Other interest-bearing liabilities 52,882 70,683 68,632 78,934 79,248 Total IBLs 185,179 175,010 174,131 187,750 192,173 Total non-IBLs 19,062 22,978 23,697 17,277 20,359 Total liabilities 204,242 197,988 197,828 205,026 212,532 Share capital 8,428 8,468 8,468 8,468 8,468 Other reserves 10,371 10,262 10,716 10,851 10,896 Shareholders' equity 36,682 37,929 40,439 42,769 45,173 Minority interests 229 227 239 251 263

Asset quality and capital Dec-14 Dec-15 Dec-16F Dec-17F Dec-18F Reported NPLs / gross cust loans (%) 5.6 5.9 5.3 4.9 4.6 Total provisions / reported NPLs (%) 80.4 91.7 104.1 109.7 109.8 CET-1 ratio (%) 14.8 14.6 15.4 15.9 16.5 Tier-1 ratio (%) 14.8 14.6 15.4 15.9 16.5 Total capital ratio (%) 15.2 16.5 17.4 17.8 18.3

Source: Company data, RHB

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Valuations And Recommendation BUY with GGM-based TP of THB58.00 We reinitiate coverage on KKP with a BUY rating, on: i. Strong earnings growth. KKP’s earnings are expected to register a CAGR of 16% for 2016F-2018F, more than double the average 7% for TH Banks during the same period; ii. Improved balance sheet with lower NPLs and higher LLC ratio, which will reduce future credit costs and prepare KKP for the upturn in infrastructure investment cycle. We expect continued declines in NPL ratio to 5.3% (2015: 5.8%) and rise in LLC ratio to 104.1% (2015: 91.7%) by December; iii. Higher ROEs. Higher ROEs of 11.7-11.9% projected for 2016F-2018F (2015: 8.9%) given stronger expected earnings growth; iv. Attractive dividend yield. KKP is expected to pay a dividend of THB2.97-3.41 per share for 2016F-2018F, representing attractive dividend yields of 5.8-6.6%, the highest among TH Banks. Our GGM-based TP of THB58.00 is based on the following key assumptions: i. Long-term growth of 2.5%; ii. Cost of equity of 10.5%; iii. Sustainable ROE of 11.7%, At our TP of THB58.00, the implied FY17F P/BV and P/E ratios are 1.1x (vs historical mean of 0.9x) and 10.1x respectively. We think KKP deserves to trade at a premium to its historical mean given: i. Higher projected ROEs of 11.7-11.9% for 2016F-2018 compared to its historical ROE of just 10.3% between 2011-2015; ii. Improving asset quality with projected declines in NPLs, and an expected CAGR of 16% in earnings between 2016F-2018F. This will enable it to reduce credit costs and sustain long term earnings growth.

Figure 1: KKP’s 12-month forward consensus P/E Figure 2: KKP’s 12-month forward consensus P/BV

Source: Bloomberg Source: Bloomberg

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Figure 3: TH Banks’ comparative price performance (YTD Figure 4: TH Banks’ share price movements from end-Dec 2015)

Source: Companies data, RHB Source: Companies data, RHB

Figure 5: Comparison of TH Banks’ dividend yields Figure 6: TH Banks’ P/BV vs ROE

Source: Companies data, RHB Source: Companies data, RHB

Figure 7: Peer comparison

Company Mkt Cap Rating TP EPS growth P/E P/BV ROAE Dividend Yield (USD m) THB 15 16F 17F 15 16F 17F 15 16F 17F 15 16F 17F 15 16F 17F BBL 9,248 Neutral 172.00 (5.9%) (0.1%) 8.1% 8.5 9.6 8.9 0.8 0.9 0.8 10.0% 9.1% 9.3% 4.3% 3.7% 3.9% KBANK 13,315 Neutral 163.00 (14.5%) 2.5% 11.6% 9.1 11.7 10.5 1.3 1.5 1.3 14.5% 13.3% 13.3% 2.7% 2.1% 2.3% KKP 1,222 Buy 58.00 21.0% 37.8% 6.6% 9.2 9.5 8.9 0.8 1.1 1.0 8.9% 11.7% 11.7% 8.3% 5.8% 6.2% KTB 7,444 Sell 15.10 (14.2%) 1.8% 2.0% 8.2 9.1 8.9 0.9 1.0 0.9 11.9% 11.2% 10.5% 4.6% 4.2% 4.3% SCB 15,320 Buy 186.00 (11.5%) 3.7% 12.2% 8.6 11.1 9.9 1.3 1.6 1.4 15.9% 15.0% 15.2% 4.6% 3.4% 3.6% TCAP 1,288 Buy 47.00 8.6% 8.5% 8.0% 7.9 7.8 7.3 0.8 0.8 0.7 10.5% 10.6% 10.6% 4.9% 4.8% 5.2% TISCO 1,195 Buy 59.00 0.0% 16.8% 11.7% 8.0 8.5 7.6 1.2 1.4 1.2 15.8% 16.8% 17.1% 5.6% 5.3% 5.9% TMB 2,792 Sell 2.10 (2.3%) (1.3%) 8.4% 11.4 10.8 9.9 1.4 1.2 1.1 12.8% 11.4% 11.3% 2.5% 2.6% 2.8% Total/Avg Neutral 8.8 10.4 9.5 1.1 1.2 1.1 12.8% 12.1% 12.1% 4.0% 3.5% 3.8%

Note: Share prices as at 29 Aug 2016 Source: Company data, RHB

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Earnings Outlook Earnings growth to continue to be strong for 2016 We expect strong earnings growth of 38% YoY to THB4.6bn for 2016F (2015: +21% YoY), higher than the 3% rise projected for TH Banks (eight listed banks under our coverage). Our projections are supported by the following key assumptions: i. Lower provisions. We project credit costs to decrease to 135bps (2015: 177bps) due to improved asset quality and higher LLC ratio; ii. Loan growth recovery of 1.5% YoY (2015: -3.5%) largely underpinned by corporate and SME loans; iii. Higher net interest margins (NIMs) of 4.3% (2015: 4.2%) due to lower funding costs; iv. Gains on sale of foreclosed assets vs a loss of THB381m in 2015, thanks to stable used car prices. For 2017, we expect the bank’s net profit to continue to grow by 7% YoY based on the following assumptions: i. Lower provisions. We project further declines in credit costs to 110bps on improved asset quality; ii. Higher loan growth of 3.1% YoY from both business and retail loans; iii. Continued growth in fee income.

Figure 8: KKP’s net profit growth outlook Figure 9: Rising ROEs on strong earnings growth

Source: Company data, RHB Source: Company data, RHB

Figure 10: Lower provisions help support sustainable Figure 11: Less pressure from sale of foreclosed assets due earnings growth to stable used car prices

Hefty losses from the sale of repossessed cars

Source: Company data, RHB Source: Company data, RHB

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

KKP’s earnings growth likely most sensitive to changes in CIR Given the slowing economy, there are some uncertainties that may cause our earnings growth projections for 2016 to be weaker than expected. We have performed a sensitivity analysis on key assumptions including loan growth, NIM, cost-to-income ratio (CIR), and credit costs. KKP’s earnings growth will likely be most sensitive to changes in CIR as every 10bps increase (decrease) in CIR would cause earnings to decline (increase) by 5.6%, based on our projections for 2016. Yet, every 1% decrease (increase) in loans will have the least impact, causing earnings to decline (increase) by just 1.1%, based on our 2016 projections. A summary of our sensitivity analysis is as follows, with every: i. 1% decrease in loan growth will cause KKP’s net profit in 2016F to decrease by 1.1%, ceteris paribus (Figure 12); ii. 10bps decrease in NIM will cause KKP’s net profit in 2016F to decrease by 3.7%, ceteris paribus (Figure 13); iii. 10bps increase in credit cost will cause KKP’s net profit in 2016F to decrease by 3.1%, ceteris paribus (Figure 14); iv. 1% increase in CIR will cause KKP’s net profit in 2016F to decrease by 5.6%, ceteris paribus (Figure 15).

Figure 12: KKP’s loan growth sensitivity analysis Sensitivity analysis -2% -1% 2016F +1% +2% Loan growth (4.1%) (3.1%) (2.1%) (1.1%) (0.1%) Net interest income (THBm) 9,519 9,584 9,650 9,715 9,781 Operating income (THBm) 15,323 15,388 15,454 15,519 15,585 PIOP (THBm) 8,022 8,088 8,153 8,219 8,284 Net profit (THBm) 4,467 4,519 4,571 4,624 4,676 Change (2.3%) (1.1%) 0.0% 1.1% 2.3% EPS (THB) 5.28 5.34 5.40 5.46 5.52 BVS (THB) 46.21 46.24 46.28 46.31 46.34 DPS (THB) 2.90 2.94 2.97 3.00 3.04 ROAE 11.4% 11.5% 11.7% 11.8% 11.9%

Source: RHB

Figure 13: KKP’s NIM sensitivity analysis Sensitivity analysis -20bps -10bps 2016F +10bps +20bps NIM 4.08% 4.18% 4.28% 4.38% 4.48% Net interest income (THBm) 9,230 9,440 9,650 9,859 10,069 Operating income (THBm) 15,034 15,244 15,454 15,663 15,873 PIOP (THBm) 7,734 7,944 8,153 8,363 8,573 Net profit (THBm) 4,237 4,404 4,571 4,739 4,906 Change (7.3%) (3.7%) 0.0% 3.7% 7.3% EPS (THB) 5.00 5.20 5.40 5.60 5.79 BVS (THB) 47.36 47.56 47.76 47.95 48.15 DPS (THB) 2.75 2.86 2.97 3.08 3.19 ROAE 10.8% 11.2% 11.7% 12.1% 12.6%

Source: RHB

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Figure 14: KKP’s credit cost sensitivity analysis Sensitivity analysis -20 bps -10 bps 2016F +10 bps +20 bps Credit costs (bps) 115 bps 125 bps 135 bps 145 bps 155 bps Pre-impairment operating profit (THBm) 8,153 8,153 8,153 8,153 8,153 Provisioning expenses (THBm) (2,059) (2,238) (2,417) (2,596) (2,775) Net profit (THBm) 4,857 4,714 4,571 4,429 4,286 Change 6.2% 3.1% 0.0% (3.1%) (6.2%) EPS (THB) 5.74 5.57 5.40 5.23 5.06 BVS (THB) 48.09 47.93 47.76 47.59 47.42 DPS (THB) 3.15 3.06 2.97 2.88 2.78 ROAE 12.4% 12.0% 11.7% 11.3% 11.0%

Source: RHB

Figure 15: KKP’s CIR sensitivity analysis Sensitivity analysis -2% -1% 2016F +1% +2% Cost to income ratio (CIR) 45.2% 46.2% 47.2% 48.2% 49.2% Operating income (THBm) 16,137 15,788 15,454 15,133 14,826 PIOP (THBm) 8,836 8,487 8,153 7,833 7,526 Net profit (THBm) 5,116 4,838 4,571 4,316 4,071 Change 11.9% 5.8% 0.0% (5.6%) (10.9%) EPS (THB) 6.04 5.71 5.40 5.10 4.81 BVS (THB) 46.92 46.59 46.28 45.97 45.68 DPS (THB) 3.32 3.14 2.97 2.80 2.64 ROAE 12.9% 12.3% 11.7% 11.1% 10.5%

Source: RHB

Company Profile Integration of two expertise groups Kiatnakin Phatra Financial Group is a grouping of the commercial banking business operated by Kiatnakin Bank, with extensive experience of over 40 years, and a capital market business operated by Phatra Capital PCL (Phatra Capital) and Phatra Securities PCL, the leader in securities business in Thailand. Kiatnakin Bank merged with Phatra Capital in Sep 2012 to synergize their business expansion and pursue the achievement of operational excellence in each of the core businesses. The group has a combined total asset base of THB232bn and loan base of THB175bn as at June, and is the 11th largest commercial bank registered in Thailand. Kiatnakin Phatra Financial Group was listed in the Stock Exchange of Thailand (SET) as "KKP." KKP operates the full financial and stock market business and focuses on its expertise in providing services to cover all business sectors, catering to all types of customers including individuals, business clients, as well as institutional customers both domestically and overseas. The group’s vision is to attain business growth with the success of clients and society.

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Figure 16: Business structure of KKP

Source: Company data

Figure 17: KKP’s shareholder structure Figure 18: KKP’s branches nationwide

Source: Company data, RHB Source: BOT, RHB

Figure 19: KKP’s branch Figure 20: KKP after the merger in 2012

Source: Company Source: Company

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Figure 21: KKP’s marketing advertisements to boost auto Figure 22: KKP’s marketing advertisements to boost fee HP loans income

Source: Company Source: Company

Business Overview A leading auto HP player in Thailand KKP’s loan portfolio stood at THB175bn as at June, comprising retail loans (68%, of which 65% were auto HP loans), residential project loans (12%), SME loans (12%), and others (8%). KKP was recognised as one of the leading auto HP lender among Thai banks with a total auto HP loan book of THB114bn, accounting for roughly 10% of total auto HP loans (of THB1.17trn) among listed banks. Given lacklustre local new car sales and low agricultural prices, KKP cautiously extended loans to the auto and residential project segments. The management guided on total loans growth of 3-5% YoY for 2016. Despite sluggish auto HP loans in the new car market, the bank can achieve the target by lending to used cars and mortgage buyers, SMEs, as well as corporate clients. The bank sees potential demand in corporate loans to be supported by coming infrastructure investments and potential corporate acquisitions that will boost business loan growth and increase fee income from underwriting and advisory services.

Loan growth likely to recover in 2016, boosted by business loans We expect auto HP loans to continue to decline by 4% YoY for 2016 (1H16: -2% YTD compared with Dec 2015) pressured by lacklustre local car sales, low agricultural prices, and loan repayments. However, corporate and SME loan growth will likely improve by 12% YoY, supported by higher demand related to infrastructure investments and corporate acquisitions. Thus, we project total loans to rebound by 1.5% YoY for 2016 (2015: -3.5%). Loan demand will be buoyed by government policies such as maintaining low interest rates and speeding up infrastructure investments. For 2017, we project higher loan growth of 3.1% for 2017 due to higher demands related to on-going infrastructure investments and more stable local car sales.

Launch of new products to offset lacklustre auto loans Auto loans are likely to continue to decline for the third consecutive year in 2016, due to high household debt, lacklustre car sales, and a stringent credit policy. To mitigate the impact of weak auto loans, KKP launched new products and sourced new business partners to enhance and diversify its sources of revenue, in order to sustain long term loan growth.

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

The bank’s strategies to boost loan growth include: i. Signing a captive finance partnership agreement with Suzuki Motor (Thailand) Co Ltd to increase its strength and competitiveness in the auto HP partnership business; ii. Entering a business partnership with Silkspan Co Ltd to open a new channel to apply for CarQuickCash online; iii. Launching Lombard loans, which are well-known collateralized loan against liquid assets worldwide, to offer new credits to its high net worth client base. In the bancassurance business, KKP has entered into an exclusive bancassurance agreement with Generali Life Assurance (Thailand) Co Ltd (Generali) to enhance product offering to clients and increase fee-based income.

Figure 23: KKP’s revenue structure trends Figure 24: KKP’s cost structure trends

Source: Company data, RHB Source: Company data, RHB

Figure 25: KKP’s loan portfolio by customers Figure 26: KKP’s loan portfolio by sector as of 2Q16

(THBm)

Source: Company data Source: Company data, RHB

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Figure 27: Comparison of loan portfolio between KKP, TCAP Figure 28: Comparison of loan growth trends between KKP, and TISCO as of 2Q16 TCAP and TISCO

Source: Company data, RHB Source: Company data, RHB

Figure 29: Comparison of auto HP loans among seven major Figure 30: KKP’s auto HP loan portfolio by class lenders in Thai market

Combined auto HP and cash- for-car business of seven major lenders in the Thai market, with total gross loans of THB1.45trn as at Dec 2015.

Source: Company data, RHB Source: Company data, RHB

Figure 31: KKP’s auto HP loans by location Figure 32: KKP’s loan growth trends by segments

Source: Company data, RHB Source: Company data, RHB

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Figure 33: KKP’s loan growth vs GDP growth Figure 34: KKP’s loan growth vs local car sales trends

Source: Company data, RHB Source: Company data, RHB

Figure 35: KKP’s deposit structure Figure 36: KKP’s loan and deposit trends

Source: Company data Source: Company data, RHB

Expect auto HP loans to rebound in 2017 KKP’s auto HP loans will likely continue to decline in 2016 due to lacklustre car sales, loan repayment, and a stringent credit policy. However, there are some positive signs to indicate a likely bottoming out soon. This is due to: i. Stable used car prices; ii. Lower loan repayments; iii. New demand from consumers switching to newer car models. Noted that the first-car buying scheme began in late 2011 and ended in 2013. We expect some of KKP’s auto HP customers to begin transferring car ownership in 2017 given the contract period of between 4-6 years. We conservatively expect KKP’s auto loans to pick up slightly by 2% in 2017F, compared with -4% in 2016F. Coupled with an expected continued rise in corporate and SME loans, we project total loans to be higher by 3.1% YoY in 2017F (2016F: +1.5%).

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Figure 37: Average local car sales per month Figure 38: Local car sales trends

The first-car buyer scheme began in late 2011 and ended in 2013

Source: Company data, RHB Source: Company data, RHB

Figure 39: Local car sales trends Figure 40: Local car sales and household debt trends

Source: Company data, RHB Source: BOT, Company data, RHB

Figure 41: System loan growth by segment trends Figure 42: System retail loan growth trends

Source: Company data, RHB Source: BOT, Company data, RHB

Brighter market sentiment to boost revenue from capital market Phatra Securites, a subsidiary of Phatra Capital, is one of the leading securities companies providing a variety of financial services including brokerage, dealing, underwriting, securities borrowing and lending, investment advisory and private fund management. In 2015, Phatra Securities’ market share of 4.7% was ranked fifth in the Thai securities business. It mainly focuses on servicing institutional clients both locally (54% of total securities fee income) and overseas. The firm has continued its collaboration with Merrill Lynch (Merrill Lynch) since 2003, with 92% of total securities fee income contributed by Merrill Lynch.

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Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Management guided that it will focus on expanding market share in the mass affluent segment, with investment portfolios of THB2-30m, due to the segment’s positive growth outlook. We expect fee income from the securities business (+3% YoY in 1H16) to rise by 5-10% YoY in 2016, due to higher trading turnover supported by brighter market sentiment. The combined trading turnover for the SET and MAI is expected to increase to THB50-53bn, in our view (average of THB50.5bn YTD) vs THB44.3bn in 2015.

Sale of KKTrade Securities Co Ltd (KKTrade) completed in July Phatra Capital, a subsidiary of KKP, announced the completion of the sale of its entire 50m shares in KKTrade to Yuanta Securities Asia Financial Services Ltd in July. The transaction will enable Phatra Capital to promote greater efficiency in resource allocation as well as improve its capability in expanding to business areas where it has gained significant expertise and competitive advantage. KKP is expected to record a one-time gain on investments of about THB100-200m in 3Q16, based on our estimates. Note that KKTrade, formally Kiatnakin Securities, was a subsidiary of KKP before the merger with Phatra Capital in 2012. KKTrade is a retail broker with a market share of 0.81% in the brokerage industry in 2015.

Figure 43: Phatra Securities’ share in the securities business Figure 44: Phatra Securities’ share in the securities business by segment

Source: SETSMART, RHB Source: SETSMART, RHB

Figure 45: Phatra Securities’ asset management business Figure 46: KKP’s commercial and capital market fees

Source: SETSMART, RHB Source: SETSMART, RHB

See important disclosures at the end of this report 14

Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Improved asset quality to reduce credit costs and sustain long term growth KKP’s gross NPLs continued to decrease from the peak in 2Q15, largely due to lower auto HP loans. Management guided that it will put more effort into managing asset quality in 2H16, with the aim of reducing the NPL ratio to 5.1-5.3% by December (2Q16: 6.1%). It was not concerned about higher residential NPLs in 2Q16 as they were fully collateralised. KKP’s actual provisions were 169% above BoT’s required provisions in 2Q16 (2015: 160%). Gross NPLs are projected to decline by 8% YoY to THB9.6bn in 2016. This would lower the NPL ratio to 5.3% and increase LLC ratio to 104%. We believe continued improvement in asset quality would enable the bank to lower provisions further and help sustain long term earnings growth.

Figure 47: KKP’s NPL and LLC trends on quarterly basis Figure 48: KKP’s NPL and LLC ratio outlook

Source: Company data, RHB Source: Company data, RHB

Figure 49: KKP’s NPLs and credit costs outlook Figure 50: Comparison of NPL trends between KKP and the sector

Source: Company data, RHB Source: Company data, RHB

See important disclosures at the end of this report 15

Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Figure 51: NPLs as percentage of total loans by segments Figure 52: KKP’s NPL trends by segments

Source: Company data, RHB Source: Company data, RHB

NIM to be sustainable from lower funding costs Although KKP struggles with lacklustre auto HP loan growth which in turn places pressure on interest income, the bank has successfully sustained high NIMs due to effective cost management and a low interest rate environment. We expect NIMs to rise to 4.3% for 2016F-2017F (2015: 4.2%), underpinned by the bank’s ability to increase current and saving deposits (CASA) on low deposit costs. KKP’s CASA ratio continued to rise to 52% in 2Q16, from below 20% in 2012-2013.

Lower CIR outlook KKP will likely see lower CIR ahead, down from a peak of 51.5% in 2012. We project a fall in CIR to 47-49% in 2016F-2018F, due to: i. Higher net interest income growth from good control of funding costs, which will in turn sustain higher NIM; ii. Continued increase in non-interest income, largely from fees related to bancassurance and lower loss from the sale of repossessed cars. Given higher projected non-interest income growth ahead, we expect KKP’s non-interest income ratio to increase to 37-38% in 2016F-2018F compared with an average of just 30% in 2011-2015.

Figure 53: KKP’s net interest margin (NIM) trends Figure 54: KKP’s CIR and ROAE trends

Source: Company data, RHB Source: Company data, RHB

See important disclosures at the end of this report 16

Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Figure 55: KKP’s deposit breakdown Figure 56: KKP’s non-interest income ratio trend

Source: Company data, RHB Source: Company data, RHB

Strong capital position to support growth and sustain high dividends For 2016, we are projecting a higher capital adequacy ratio (CAR) of 17.4% and Tier-1 capital of 15.4% for KKP – much higher than the Basel III minimum requirement of 9.125% and 6.625% respectively. We expect a dividend payout ratio of 55% for 2016F-2017F, translating to dividend payments of THB2.97 per share for 2016, and THB3.17 per share for 2017. This represents dividend yields of 5.8-6.6%, the highest among TH Banks.

Figure 57: KKP’s stronger capital position Figure 58: KKP’s dividend payments

Source: Company data, RHB Source: Company data, RHB

See important disclosures at the end of this report 17

Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Industry Overview Modest earnings growth recovery for 2016 We expect its aggregate pre-impairment operating profit (PIOP) to rise by just 1% in 2016 (2015: +8.1%), largely due to lower investment gains. Note that TH Banks, namely (SCB TB, BUY, TP: THB186.00), sold investment securities to mitigate the impact of higher provisions in 2015, causing aggregate gains on investments to surge 107% YoY. Despite lower investment gains, we project TH Banks’ net profit to rise 3% YoY to THB177bn in 2016 (2015: -10.0%), bolstered by resilient fee-based income growth, higher net interest income and lower provisions.

Loan demand to improve in 2H16 RHB’s economics research team has forecasted higher GDP growth of 3.2% in 2016 from 2.9% in 2015, backed by higher private consumption and investments, as well as continued government spending. Although TH Banks’ loan quality concerns linger and banks adopt selective lending to prevent higher bad debt, loan demand is likely to pick up in 2H16, in our view. This is supported by upcoming infrastructure investments and new stimulus packages. We forecast TH Banks’ loan growth to accelerate to 3.4% in 2016 (2015: 3.2%), mainly from corporate and SME loans.

NPLs to rise further in 2016, but at lower rate TH Banks will likely remain vigilant on asset quality this year due to the fragile economic recovery, while the SME and retail segments remain under pressure. We expect TH Banks’ gross NPLs to trend higher, but at a slower 16% in 2016 (2015: +21%). To reflect a lower rise in NPLs, credit costs could ease by 11bps to 114bps in 2016, while the LLC ratio should be at a comfortable 134%.

PromptPay to moderate non-interest income growth Come October, banks will offer PromptPay, a new service to transfer funds between individuals and businesses. A collaboration between BoT and Thai banks, PromptPay is one of five projects under the Government’s National e-Payment Project to create an electronic payment infrastructure that facilitates transactions between the Government and people. PromptPay offers a lower fee structure with no fee charged for transactions below THB5,000, and a maximum fee of THB10 per transaction – compared with current fees charged between THB10-50 per transaction. While it is premature to ascertain the financial impact, we believe large banks will be more affected by PromptPay relative to small- and mid-sized banks, due to their better developed online and digital banking products and services, and larger customer base.

Despite lending rate cuts, NIM to be stable on lower funding costs In April, large and mid-sized banks cut their lending rates (mortgage lending rate, minimum overdraft rate and minimum retail rate) by 25bps to reduce NPL risks and support the Government’s proactive policies. Although the rate cuts put pressure on loan yield, the sector’s NIM will likely be stable thanks to good funding cost control. We expect sector NIMs to be flattish at 3% for 2016.

See important disclosures at the end of this report 18

Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Figure 59: TH Banks’ loan growth and GDP growth trends Figure 60: TH Banks’ loans, deposits and LDR trends

Source: Companies data, RHB Source: Companies data, RHB

Figure 61: TH Banks’ NIM trends Figure 62: TH Banks’ earnings growth trends

Source: Companies data, RHB Source: Companies data, RHB

Figure 63: TH Banks’ NPL and LLC ratio trends Figure 64: TH Banks’ credit costs and NPL ratio trends

Source: Companies data, RHB Source: Companies data, RHB

See important disclosures at the end of this report 19

Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

Figure 65: TH Banks’ capital position Figure 66: TH Banks’ ROE vs P/BV

Source: Companies data, RHB Source: Companies data, RHB

Figure 67: TH Banks’ 12-month forward consensus P/BVs Figure 68: TH Banks’ 12-month forward consensus P/Es

Source: Companies data, RHB Source: Companies data, RHB

Figure 69: Majority of TH Banks trading below 10-year Figure 70: Majority of TH Banks trading below 10-year historical average P/BVs historical average P/Es

Source: Companies data, RHB Source: Companies data, RHB

See important disclosures at the end of this report 20

Kiatnakin Bank Thailand Reinitiating Coverage

2 September 2016 Financial Services | Banks

SWOT Analysis

• Expert in managing its automotive hire purchase (HP) • Weak domestic car loans segment sales and high competition in • Market leader in capital market-linked businesses, ie automotive HP investment banking and portfolio investment loans segment could dampen demand for loans

• Prior bad debts continue to hurt loan growth • Diversifying its portfolio into • Capital market- other segments linked businesses could drive loan are highly volatile growth from a in nature low base • Another rate cut could result in net interest margins (NIMs) widening • Substantial advisory business in the pipeline • Majority of its loans are automotive HP loans • Potentially affected by the slowdown in domestic consumption • The bank is exposed to funding cost disadvantages in its lending business

Recommendation Chart

Date Recommendation Target Price Price Price Close 2014-07-23 Neutral 47.0 42.3 73 Recommendations & Target Price 2014-04-28 Buy 56.9 45.0 na

68 43.0 51.0 79.0 68.0 45.5 56.9 47.0 2014-04-23 Neutral 45.5 45.3 63 2014-02-19 Neutral 45.5 39.5 58 2014-01-22 Neutral 45.5 36.5 53 2014-01-07 Neutral 45.5 36.0 48 2013-10-16 Buy 68.0 42.5 43 2013-07-23 Buy 79.0 50.8 38 2013-02-08 Buy 79.0 59.5 33 2012-11-01 Buy 51.0 46.0 28 23 Buy Neutral Sell Trading Buy Take Profit Not Rated Source: RHB, Bloomberg Sep-11 Dec-12 Mar-14 Jun-15

Source: RHB, Bloomberg

See important disclosures at the end of this report 21

Kiatnakin Bank Thailand Company Update

Financial Services | Banks

RHB Guide to Investment Ratings

Buy: Share price may exceed 10% over the next 12 months Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain Neutral: Share price may fall within the range of +/- 10% over the next 12 months Take Profit: Target price has been attained. Look to accumulate at lower levels Sell: Share price may fall by more than 10% over the next 12 months Not Rated: Stock is not within regular research coverage

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Kiatnakin Bank Thailand Company Update

Financial Services | Banks report should not place undue reliance on any such forward-looking statements. RHB expressly disclaims any obligation to update or revise any forward- looking statements, whether as a result of new information, future events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events.

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Kiatnakin Bank Thailand Company Update

Financial Services | Banks

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Kiatnakin Bank Thailand Company Update

Financial Services | Banks

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Kiatnakin Bank Thailand Company Update

Financial Services | Banks

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Jakarta Shanghai

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26

Thai Institute of Directors Association (IOD) – Corporate Governance Report Rating 2015

Excellent ADVANC CPN GRAMMY KBANK MCOT PS RATCH SCB THCOM WACOAL BAFS DRT HANA KCE MINT PSL ROBINS SCC TISCO BCP DTAC HMPRO KKP MONO PTT SAMART SE-ED TKT BIGC DTC INTUCH KTB NKI PTTEP SAMTEL SIM TMB BTS EASTW IRPC LHBANK PHOL PTTGC SAT SNC TOP CK EGCO IVL LPN PPS QTC SC SPALI VGI

Very Good AAV BBL COL HEMRAJ MC PG SCG SST THIP TPC TWS ACAP BDMS CPF HOTPOT MEGA PJW SEAFCO STA THRE TPCORP UAC AGE BECL CPI HYDRO MFEC PM SFP STEC THREL TRC UT AHC BKI CSL ICC NBC PPP SIAM SVI TICON TRU UV AKP BLA DCC ICHI NCH PR SINGER SWC TIP TRUE VNT AMATA BMCL DELTA INET NINE PRANDA SIS SYMC TIPCO TSC WAVE ANAN BOL DEMCO IRC NSI PREB SITHAI SYNTEC TK TSTE WINNER AOT BROOK ECF KSL NTV PT SMK TASCO TKS TSTH YUASA APCS BWG EE KTC OCC PTG SMPC TBSP TMI TTA ZMICO ARIP CENTEL ERW LANNA OGC Q-CON SMT TCAP TMILL TTCL ASIMAR CFRESH GBX LH OISHI QH SNP TF TMT TTW ASK CHO GC LOXLEY OTO RS SPI TGCI TNDT TU ASP CIMBT GFPT LRH PAP S&J SSF THAI TNITY TVD BANPU CM GLOBAL MACO PDI SABINA SSI THANA TNL TVO BAY CNT GUNKUL MBK PE SAMCO SSSC THANI TOG TWFP* * On Oct 1,2015 TWFP TWFP merged with TWS resulting in a new company, TWPC

Good 2S AS CBG DNA GCAP ITD LHK MK PATO PTL SEAOIL STPI AEC ASIA CGD EARTH GENCO JSP LIT MODERN PB PYLON SIRI SUC AEONTS AUCT CHG EASON GL JTS LIVE MOONG PCA QLT SKR SUSCO AF AYUD CHOW ECL GLAND JUBILE LST MPG PCSGH RCL SMG SUTHA AH BA CI EFORL GLOW KASET M MSC PDG RICHY SOLAR SYNTEC AIRA BEAUTY CITY ESSO GOLD KBS MAJOR MTI PF RML SORKON TAE AIT BEC CKP FE GYT KCAR MAKRO MTLS PICO RPC SPA TAKUNI AJ BFIT CNS FIRE HTC KGI MATCH NC PL S SPC TCC AKR BH CPALL FOCUS HTECH KKC MATI NOK PLANB SALEE SPCG TCCC AMANAH BIG CPL FORTH IEC KTIS MBKET NUSA PLAT SAPPE SPPT TCJ AMARIN BJC CSC FPI IFEC KWC M-CHAI NWR PPM SAWAD SPVI TEAM AP BJCHI CSP FSMART IFS KYE MFC NYT PRG SCCC SRICHA TFD APCO BKD CSS FSS IHL L&E MILL OCEAN PRIN SCN SSC TFI AQUA BTNC CTW FVC IRCP LALIN MJD PACE PSTC SCP STANLY TIC TIW TPIPL UPF VPO TLUXE TRT UPOIC WHA TMC TSE UREKA WIN TMD TSR UWC XO TOPP UMI VIBHA TPCH UP VIH

IOD (IOD Disclaimer) การเปิดเผลผลการสํารวจของสมาคมส่งเสริมสถาบันกรรมการบริษัทไทย (IOD) ในเรื่องการกํากับดูแลกิจการ (Corporate Governance) นี ้เป็ นการ ดําเนินการตามนโยบายของสํานักงานคณะกรรมการกํากับหลักทรัพย์และตลาดหลักทรัพย์ โดยการสํารวจของ IOD เป็นการสํารวจและประเมินจากข้อมูลของบรษัทจด ทะเบียนในตลาดหลักทรัพย์แห่งประเทศไทยและตลาดหลักทรัพย์เอ็มเอไอ ที่มีการเปิดเผยต่อสาธารณะและเป็นข้อมูลที่ผู้ลงทุนทั่วไปสามารถเข้าถึงได้ ดังนั้นผลสํารวจ ดังกล่าวจึงเป็นการนําเสนอในมุมมองของบุคคลภายนอกโดยไม่ได้เป็นการประเมินการปฏิบัติและมิได้มีการใช้ข้อมูลภายในในการประเมิน อนึ่ง ผลการสํารวจดังกล่าว เป็นผลการสํารวจ ณ วันที่ปรากฎในรายงานการกํากับดูและกิจการบริษัทจดทะเบียนไทยเท่านั้น ดังนั้นผลการสํารวจจึงอาจ เปลี่ยนแปลงได้ภายหลังวันดังกล่าว ทั้งนี้บริษัทหลักทรัพย์ อาร์เอชบี จํากัด (มหาชน) มิได้ยืนยันหรือรับรองถึงความถูกต้องของผลการสํารวจดังกล่าวแต่อย่างใด

ขอมูล Anti-Corruption Progress Indicator ของบริษัทจดทะเบียน

ระดับ 1 ACD AEONTS AFC AIRA AJ ALUCON AMC AQUA ARIP AUCT BAT-3K BIG BJC BLISS BMCL BOL BRR BSBM CBG CCET CCN CGD CMR CPH CSC CSP CTW DCON DRACO DSGT DTCI E EMC ESSO FOCUS FSMART GIFT GLAND GRAND GUNKUL HFT HTECH IHL ILINK ITD JSP KDH KTIS KTP LEE LST MAJOR MATCH MAX M-CHAI MDX MIDA ML MPIC NC NEP NNCL NWR OHTL PICO PK PL PPM PRAKIT PRECHA PRIN PSTC PYLON RAM RICH RS SANKO SAUCE SAWAD SAWANG SCN SEAFCO SF SHANG SIRI SMART SMM SOLAR SPACK SPG SPPT SPVI STA STAR SVH SVOA SWC TAPAC TC TCCC TCJ TCOAT TH TKS TNH TNPC TPA TPAC TPOLY TRC TRUBB TSE TTA TTI TTL TTTM TWP TWZ U UMS UPA UPOIC UTP UVAN VARO VI VIBHA VIH VTE WG

ระดับ 2 2S ABICO AF AKP AMARIN AMATA AOT APCO AYUD BEAUTY BFIT BH BKD BLAND BTNC CCP CI CSR CSS EFORL EPCO FE FNS FVC GEL GLOBAL HEMRAJ IEC IFS INET JUTHA KASET KCAR KKC KSL L&E LALIN LTX M MALEE MBK MBKET MEGA MK MPG MTLS NCH NCL NPP OCC OCEAN PB PCA PRINC QH ROCK RPC S & J SGP SIAM SIS SKR SMG SMIT SORKON SUSCO TAKUNI TEAM TF TIC TIP TIPCO TMC TMI TPP TRT TRU TRUE TSC TSI TTW TVD TVO UKEM UNIQ UWC VNG WIIK WIN XO

ระดับ 3A ABC ACAP ADVANC AEC AGE AH AIE AMANAH ANAN AP APCS APURE AS ASIA ASIAN ASIMAR BIGC BROOK BTS BWG CEN CENTEL CFRESH CHARAN CHO CHOTI CM CNT COL CPALL CPF CPI CPL DELTA DEMCO DIMET DNA DTAC EA ECF EE EVER FPI GBX GC GFPT GLOW HMPRO HOTPOT ICC ICHI IFEC INOX INSURE IRC JAS JTS JUBILE KC KTC KYE LHK LPN LRH MAKRO MC MCOT MFC MFEC MINT MJD MONO MOONG NBC NDR NINE NMG NSI NTV OGC PACE PCSGH PDI PG PHOL PLAT PPS PR PRANDA PREB PS QLT RATCH RML ROBINS ROJNA RWI SAMCO SCCC SCG SEAOIL SE-ED SENA SINGER SITHAI SMK SMPC SPALI SPC SPCG SPI SRICHA SSI STANLY SUPER SVI SYMC SYNEX SYNTEC TASCO TCMC TFI THAI THRE THREL TICON TKT TLUXE TMILL TMT TNL TPCORP TSTE TSTH TTCL TU TVI UOBKH UREKA VGI VNT WACOAL WHA ZMICO

ระดับ 3B AAV AHC AI AIT AKR ARROW ASK BA BDMS BEC BECL BJCHI BUI CGH CHG CHOW CIG CITY CK CKP COLOR CWT EARTH EASON EPG F&D FANCY FIRE FMT FORTH GENCO GL GOLD GPSC GRAMMY HYDRO IRPC IT JCT KCM KWC LH LIT LOXLEY MACO MANRIN MATI MODERN MSC NOBLE NOK NPK NUSA OISHI OTO PAF PAP PATO PF PJW PLANB PLE POLAR PRG PTL Q-CON QTC RCI S11 SALEE SAM SAMART SAMTEL SAPPE SC SCP SFP SIM SLP SMT SPA SPORT SSC SST STEC STPI SUC SUTHA T TAE TBSP TCC TFD TGCI TGPRO THANA THIP TIW TK TMW TNDT TOPP TPC TPCH TPIPL TSR TT TYCN UAC UBIS UEC UMI UP UPF UT UV VPO WAVE WINNER YUASA

ระดับ 4 ASP BAFS BANPU BAY BBL BKI BLA CIMBT CNS CSL DCC DRT DTC EASTW ECL EGCO ERW FSS GCAP HANA HTC INTUCH IRPC IVL KBANK KCE KGI KKP KTB LANNA LHBANK MTI NKI PSL PTG PTTEP SABINA SCB SNC SNP SSF SSSC TCAP THCOM TISCO TMB TMD TNITY TOG

ระดับ 5 BCP CPN GYT PE PM PPP PT PTT PTTGC SAT SCC THANI TOP

ไมเปดเผยหรือไมมีนโยบาย A ACC AJD AQ BCH BGT BROCK BSM BTC CHUO

CPR CRANE EIC FER JMART JMT KAMART KBS KIAT LDC

MBAX MCS METCO NEW NEWS NYT PAE PDG PERM PMTA POST RCL RICHY ROH S SIMAT TCB TR TSF TVT WORK

หมายเหตุ ระดับ 1: มีนโยบาย ระดับ 2: ประกาศเจตนารมณ ระดับ 3: มีมาตรการปองกัน ซึ่งทั้ง 2 กรณี ถือเปนผลการประเมินในระดับเดียวกัน 3A: บริษัทมีการประกาศเจตนารมณเขารวมโครงการ CAC หรือภาค 3B: บริษัทมีคํามั่นและนโยบายของบริษัท แตมิไดประกาศเจตนารมณเขารวมโครงการ CAC หรือภาค ระดับ 4: ไดรับการรับรอง ระดับ 5: ขยายผลสูผูที่เกี่ยวของ