Daily Market Outlook 10 Aug 2017 Risk aversion eases a bit The SET is poised to trade in a tight range today in line with most regional bourses as investors have remained focused on the US-North Korea conflict although concerns seem to have eased a bit, as reflected by globally abating flight-to-safety activities. Strong prices of commodities, including crude oil, should lift commodity-related counters. On the local front, the government went ahead with its infrastructure investment pushes. Its high-speed train project worth Bt280bn to link the three main airports is ready for bidding later this year. Public debt dropped to only 41.5% of GDP in June means the government has huge room for more debt to finance its infrastructure plans and stimulus measures. Pick of the day: MTLS (Bt34.00; BUY; AWS’17 TP Bt41.00) Muangthai Leasing Pcl. is our pick of the day for its high growth and strong recurring income, backed by abundant credit demand in an untapped market. MTLS reported a 2Q17 net profit of Bt571mn, up 6.5% QoQ and 90.2% YoY, driven by solid loan growth corresponding with its aggressive branch expansion. As of 2Q17, it had 2,046 branches, moving closer to its FY17 target of 2,200 branches. We have a positive view toward this expansion strategy as it would enhance the company’s access to more individuals who still cannot reach to the traditional banking system. Looking ahead, MTLS is very likely to continue enjoying new quarterly high earnings through the rest of the year. We forecast FY17 loan growth at a robust 70%. Our forecast calls for earnings to grow 64.0% in 2017 and 45.3% in 2018. Although MTLS is in a consolidation period in the short to medium term given its daily and weekly sell signals, the monthly buy signal indicates it has been on a major uptrend. It should take a while before MTLS turns back to an uptrend in all time frames. MTLS still has an important target at Bt36.50. Though the counter previously tested this target during intraday, it could not close above that level, causing a sell-off. If it is able to break that target, it would help the share prepare for the next rally. (Resistance: 34.50, 35.25, 36.50; Support: 33.50, 32.75, 31.50)

Major Indices SET SET50 SET P/E (x) SET P/BV (x) SET Div. Yield (%) Dow Jones S&P 500 NASDAQ UK Germany France Japan South Korea Hong Kong China Taiwan Singapore Malaysia Indonesia

Close 1,571.51 999.47 16.4 1.9 3.1 22,048.70 2,474.02 6,352.33 7,498.06 12,154.00 5,145.70 19,738.71 2,368.39 27,757.09 3,275.57 10,470.38 3,318.08 1,777.94 5,824.01

Chg -5.9 -2.9

%Chg -0.4 -0.3

-36.6 -0.9 -18.1 -44.7 -138.1 -73.2 -257.3 -26.3 -97.8 -6.3 -98.6 -2.6 -3.7 +13.4

-0.2 -0.0 -0.3 -0.6 -1.1 -1.4 -1.3 -1.1 -0.4 -0.2 -0.9 -0.1 -0.2 +0.2

Philippines Trading Summary (Btmn) Institution Proprietary Foreign Individuals Total Trading Value Most Active Value (Btmn) AOT INGRS CPF KCE SCC Commodity Futures US Crude ($/barrel) Brent Crude($/barrel) Gold($/ounce) FX Rates USD/THB EUR/USD USD/JPY USD/CNY

7,985.83

-0.7

-0.0

Buy 4,105 3,726 10,872 16,196

Sell 4,457 3,589 10,010 16,841

Net -353 136 861 -645

Value 3,540 2,088 1,822 1,141 899 Close 49.56 52.70 1,279.30

34,898 Close 53.00 1.41 26.00 83.00 488.00 Chg +0.4 +0.6 +16.7

%Chg -1.9 6.0 4.0 2.5 -0.4 %Chg +0.8 +1.1 +1.3

Close 33.25 1.18 110.06 6.67

Chg -0.0 +0.0 -0.2 -0.0

%Chg -0.1 +0.1 -0.2 -0.5

Source: Bisnews, Bloomberg

Technical picks (support & resistance) KTC (S: 99.75, R: 110.00); VGI (S: 5.45, R: 5.05); GLOW (S: 83.00, R: 84.50); SET (S: 1,559, R: 1,581)

Local issue 



Train linking three airports ready for bidding As the latest feasibility study on building a high-speed train to link the three airports of Don Mueang, Suvarnabhumi, and U-tapao has been completed, the Bt280bn project is due to start bidding later this year or early 2018. The projects will be operated under PPP, in which private firms will invest Bt200bn while government will contribute Bt80bn. (Bangkok Post) Public debt dropped in June by Bt162bn to Bt6.19tn, equaling 41.5% of GDP, compared to 42.9% in May, due to a drop in borrowing. (Bangkok Post)

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Thailand Research Department ----------------------------------------------------------------Mr. Warut Siwasariyanon (No.17923) Tel: 0-2680-5041 Mr. Krit Suwanpibul (No.17968) Tel: 0-2680-5090 Mrs. Vajiralux Sanglerdsillapachai (No. 17385) Tel: 0-2680-5077 Ms. Veeraya Rattanaworatip (No.86645) Tel: 0-2680-5042

1

Daily Market Outlook 

TAT to offer tax incentives up to Bt50,000. Mr. Yuthasak Supasorn, Governor of Tourism Authority of Thailand (TAT) prepares a project plan "Travel to Thailand" with period of operation from October to December 2017. The proposed tax reduction is amount of up to 50,000 baht higher than the former. TAT will take this issue to a meeting with the Minister of Finance on Thursday, 10 Aug. While Minister of Finance said that don’t see any detail of tax incentives measures but the point to consider is the country's budget. (Bangkokbiznews.com, Efinance.com)

Global 





North Korea will develop a plan by mid-August to launch four intermediate range missiles at the US territory of Guam before presenting it to leader Kim Jong Un who will make a decision on whether to proceed, the North's state media said on Thursday. (Reuters) US Treasury yields fell on Wednesday as heightening US-NK tensions spurred demand for safe-haven assets. US 10-year yields settled at 2.237%, after hitting 2.212% earlier, the lowest level in 6 weeks and down from 2.261% on Tuesday. (Reuters) The safe-haven Swiss franc and yen rallied hard against the euro and the US dollar on Wednesday. The dollar index was down 0.12% to 93.53, after rising as high as 93.888 earlier in the session. (Reuters)

USA 



Wall Street shares pared earlier big losses to end lower on Wednesday as geopolitical concerns eased in the wake of strongly worded exchanges between Washington and North Korea on Tuesday. Bargain seekers turned their focus to strength in the global economy and earnings. (Reuters) Russia probe intensifies: A raid on the Virginia home of President Trump's former 2016 election campaign manager, Paul Manafort, showed an investigation of possible ties between the campaign and Russia is intensifying. (Reuters)

Europe  

European shares fell back on Wednesday as Paris incident and geopolitical tensions sent all major benchmarks into negative territory. A car hit a group of soldiers in a Parisian suburb in what was said to be a deliberate act. (Reuters) Overall 2Q17 results season has been strong. 2Q17 earnings growth for the MSCI Euro zone companies reported is tracking at 15.7%, with 76% of results in so far. (Thomson Reuters IBES)

Asia 





Japan's core machinery orders fell 1.9% MoM in June, 3 months of declines in a row. The fall in core orders, a capital spending indicator in the coming 6-9 months, versus a market forecast for a 3.7% rise. The Cabinet Office’s survey forecast core orders would rise 7.0% in 3Q17. (Reuters) The US SEC on Wednesday put on hold a decision to sell the Chicago Stock Exchange (CHX) to China-based investors. The proposed sale of privately owned CHX to a consortium led by Chongqing Casin Enterprise Group has drawn criticism from US lawmakers. (Reuters) China's steel prices are expected to remain elevated throughout the year as Beijing's infrastructure spending boosts local construction demand, according to Nippon Steel & Sumitomo Metal Corp, Japan's biggest steelmaker. Chinese steel rebar futures surged to their highest since March 2013 this week. (Reuters)

Commodities 



Oil prices rose about 1% on Wednesday after US crude stockpiles fell more than expected. US crude inventories fell 6.5mn barrels last week, US EIA said, steeper than the expected decrease of 2.7mn barrels. Brent ended up 56 cents (+1.1%) at US$52.70. US crude gained 39 cents (+0.8%) to settle at US$49.56. (Reuters) Gold rose to the highest in nearly two months on Wednesday on North Korea tensions. Spot gold surged 1.3% at US$1,275.98 an ounce, after reaching its highest since June at US1,276.10. US gold futures for December delivery also settled up 1.3% at US$1,279.30. (Reuters)

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2

Daily Market Outlook Date 7-Aug-17 7-Aug-17 8-Aug-17 9-Aug-17 9-Aug-17 11-Aug-17 11-Aug-17

Regions US TH CN CN JP US US

Mon

Tue 1

Economic Indicators Labor Market Conditions Index (Jul) Consumer Confidence (Jul) Exports/Imports (YoY) (Jul) Consumer Price Index (MoM/YoY) (Jul) Machinery Orders (MoM/YoY) (Jun) Consumer Price Index (MoM/YoY) (Jul) Consumer Price Index Ex Food & Energy (MoM/YoY) (Jul)

Aug-17 Wed 2

XD BTS

7 XD ADVANC SCC

XD EPG PTL

8

9

XD PTTEP

14

15

21

10

16 XD INTUCH TBSP

Fri 4 XD KYE TIW WHABT WHART

XD CPNCG CPNRF CRYSTAL DIF LHHOTEL LHPF LHSC MBKET POPF PPF QHHR QHPF SIRIP TGROWTH

XD CSL MACO SNC

XD MAKRO OTO PDG PRIN QH TREIT

Thu 3

11 XD TNP

17 XD BAFS BSBM KCAR SCCC TPRIME

18 XD ANAN KCE PPP SPG TU

22

23

24

29

30

31

25

XD AUCT BROOK DCC JAS JUBILE PCSGH PM

28

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3

CG Report Corporate Governance Report of Thai Listed Companies (CGR) 2016.

Corporate Governance Report disclaimer

Score

Range Number of Logo

Description

90 – 100

Excellent

80 – 89

Very Good

70 – 79

Good

60 – 69

Satisfactory

50 – 59

Pass

Below 50

No logo given

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N/A

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 evaluation 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, Asia wealth Securities Company Limited does not conform nor certify the accuracy of such survey result.

4

CG Report

Anti-Corruption Progress Indicator 2016

Companies that have declared their intention to join CAC

2S A ABC ABICO ACAP AEC AF AGE AH AI AIE AIRA ALUCON AMARIN AMATA ANAN AOT AP

APCO APCS APURE AQUA AS ASIA ASIAN ASIMAR ASK BCH BEAUTY BFIT BH BIGC BJCHI BKD BLAND BROCK

BROOK BRR BSBM BTNC CEN CGH CHARAN CHO CHOTI CHOW CI CM COL CPALL CPF CPL CSC CSR

CSS DELTA DNA EA ECF EE EFORL EPCO ESTAR EVER FC FER FNS FPI FSMART FVC GC GEL

GFPT GIFT GLOBAL GPSC GREEN GUNKUL HMPRO HOTPOT ICHI IEC IFS ILINK INET INOX INSURE IRC J JAS

JMART JMT JTS JUBILE JUTHA K KASET KBS KC KCAR KSL KTECH KYE L&E LALIN LPN LRH LTX

LVT M MAKRO MALEE MBAX MC MCOT MEGA MFEC MIDA MILL MJD MK ML MPG MTLS NBC NCH

AKP AMANAH ASP AYUD BAFS BANPU BAY BBL BCP

BKI BLA BTS BWG CENTEL CFRESH CIMBT CNS CPI

CPN CSL DCC DEMCO DIMET DRT DTAC DTC EASTW

ECL EGCO ERW FE FSS GBX GCAP GLOW HANA

HTC ICC IFEC INTUCH IRPC IVL KBANK KCE KGI

KKP KTB KTC LANNA LHBANK LHK MBK MBKET MFC

MINT MONO MOONG MSC MTI NKI NSI OCEAN PB

AAV ACC ADAM AEONTS AFC AHC AIT AJ AJD AKR ALLA ALT AMA AMATAV AMC APX AQ ARIP ARROW ASEFA ASN ATP30

AU AUCT BA BAT-3K BCPG BDMS BEC BEM BGT BIG BIZ BJC BLISS BM BOL BPP BR BRC BSM BTC BTW BUI

CBG CCET CCN CCP CGD CHEWA CHG CHUO CIG CITY CK CKP CMO CMR CNT COLOR COM7 COMAN CPH CPR CRANE CSP

CTW CWT DAII DCON DCORP DRACO DSGT DTCI EARTH EASON EIC EKH EMC EPG ESSO F&D FANCY FMT FN FOCUS FORTH GENCO

GJS GL GLAND GOLD GRAMMY GRAND GSTEL GTB GYT HARN HFT HPT HTECH HYDRO IHL IRCP IT ITD ITEL JCT JSP JWD

KAMART KCM KDH KIAT KKC KOOL KTIS KWC KWG LDC LEE LH LIT LOXLEY LPH LST MACO MAJOR MANRIN MATCH MATI MAX

M-CHAI MCS MDX METCO MODERN MPIC NC NEP NETBAY NEW NEWS NFC NOBLE NOK NPK NWR NYT OHTL OISHI ORI OTO PAE

NCL NDR NINE NMG NNCL NPP NTV NUSA OCC OGC PACE PAF PCA PCSGH PDG PDI PIMO PK

PLANB PLAT PRANDA PREB PRG PRINC PSTC PYLON QH RML ROBINS ROCK ROH ROJNA RP RWI SAMCO SANKO

SAUCE SC SCCC SCN SEAOIL SE-ED SENA SGP SITHAI SKR SMIT SMK SORKON SPACK SPALI SPCG SPPT SPRC

SR SRICHA STA STANLY SUPER SUSCO SYMC SYNEX SYNTEC TAE TAKUNI TASCO TBSP TEAM TFG TFI THAI TIC

TICON TIP TKT TLUXE TMC TMI TMILL TMT TPA TPP TRT TRU TRUE TSE TSI TSTE TTW TU

TVD TVO TVT TWPC U UBIS UKEM UNIQ UOBKH UREKA UWC VGI VIBHA VNG VNT WAVE WHA WICE

WIIK WIN XO ZMICO

PTG PTT PTTEP PTTGC Q-CON QLT RATCH S&J SABINA

SAT SCB SCC SCG SINGER SIS SMPC SNC SNP

SPC SPI SSF SSI SSSC SVI TCAP TCMC TF

TGCI THANI THCOM THRE THREL TIPCO TISCO TMB TMD

TNITY TNL TOG TOP TPC TPCORP TSC TSTH TTCL

TVI WACOAL

RCL RICH RICHY RJH RPC RS S S11 SAFARI SALEE SAM SAMART SAMTEL SAPPE SAWAD SAWANG SCI SCP SEAFCO SELIC SF SFP

SGF SHANG SIAM SIM SIMAT SIRI SLP SMART SMM SMT SOLAR SPA SPG SPORT SPVI SQ SSC SST STAR STEC STHAI STPI

SUC SUTHA SVH SVOA SWC T TACC TAPAC TC TCB TCC TCCC TCJ TCOAT TFD TGPRO TH THANA THE THIP THL TIW

TK TKN TKS TM TMW TNDT TNH TNP TNPC TNR TOPP TPAC TPBI TPCH TPIPL TPOLY TR TRC TRITN TRUBB TSF TSR

TTA TTI TTL TTTM TUCC TWP TWZ TYCN UAC UEC UMI UMS UP UPA UPF UPOIC UT UTP UV UVAN VARO VI

VIH VPO VTE WG WINNER WORK WORLD WP WR YCI YNP YUASA

Companies certified by CAC PE PG PHOL PM PPP PPS PR PSL PT

N/A PAP PATO PERM PF PICO PJW PL PLE PMTA POLAR POMPUI POST PPM PRAKIT PRECHA PRIN PRO PSH PTL QTC RAM RCI

Source : Thai Institute of Directors Companies participating in Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC) under Thai Institute of Directors (as of October 28, 2016) are categorised into: • Companies that have declared their intention to join CAC, and • Companies certified by CAC.

The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by Thaipat Institute, is made in order to comply with the policy and sustainable development plan for the listed companies of the Office of the Securities and Exchange Commission. Thaipat Institute made this assessment based on the information received from thelisted 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 Thaipat Institute that is 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, AWS does not confirm, verify, or certify the accuracy andcompleteness of the assessment result.

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5

Contact / Disclaimer Branch

Address

Phone

Fax

Head Office (Mercury Tower)

540 Mercury Tower 7th, 14th, 17th Floor, Ploenchit Road, Lumphini, Pathumwan, Bangkok 10330

0-2680-5000

0-2680-5111

Silom

191 Silom Complex Building 21st Floor, Room 2, 3-1, Silom Road, Silom, Bangrak, Bangkok 10500

0-2630-3500

0-2630-3530-1

Asok

159 Sermmitr Tower 17th Floor, Room 1703, Sukhumvit 21 Road, KlongToeyNua, Wattana, Bangkok 10110

0-2261-1314-21

0-2261-1328

Pinklao

7/3 Central Plaza Pinklao Office Tower B 16th Floor, Room 4160541606 Boromratchchachonnani Road, Arun-Amarin, Bangkoknoi, Bangkok 10700

0-2884-7333

0-2884-6091

Chaengwattana 1

99/99 Moo 2 Central Plaza Chaengwattana Office Tower, 22nd Floor, Room 2204, Chaengwattana Road, Bang Talad, Parkkred, Nonthaburi 11120

0-2119-2300

0-2835-3006

Chaengwattana 2

99/99 Moo 2 Central Plaza Chaengwattana Office Tower, 22nd Floor, Room 2203, Chaengwattana Road, Bang Talad, Parkkred, Nonthaburi 11120

0-2119-2388

0-2119-2399

Mega Bangna

39 Moo 6 Mega Bangna 1st Floor, Room No. 1632/7 Bangna-Trad Road, Bangkaew, Bangplee, Samutprakarn 10540

02-106-7345

02-105-2070

Srinakarin

59/5 HaHa Shopping Mall, 4th Floor, Room B407-2, Srinakarin Road, Nongbon, Pravet, Bangkok 10250

0-2014-2000

0-2014-2001

Rayong

356/18 Sukhumvit Road, Nuen-Phra, Muang, Rayong 21000

038-808-200

038-807-200

Chonburi

55/22 Moo 1, Samed, Muang, Chonburi 20000

038-053-858

038-784-090

Chachengsao

233-232/2 Moo 2 1st Floor, Sukprayoon Road, Na Muang, MuangChachoengsao 24000

038-981-587

038-981-591

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