Results Review, 27 January 2016
Jasmine International (JAS TB)
Sell (from Buy)
Communications - Telecommunications Market Cap: USD639m
Target Price: Price:
THB2.86 THB3.22 Macro
่ ยหรือจะฉุด? จะชว
Risks Growth Value
Jasmine International (JAS TB) Price Close
Relative to Stock Exchange of Thailand Index (RHS)
10
122
9
113
8
105
7
96
6
87
5
78
4
70
3
61
2 3
52
2
0 0 . 2 0 0 กำไรจำกกำรดำเนินงำนในรอบปี 2558 ลดลง 27% y-o-y เป็ น 2.64 พันล ้ำนบำทจำก . 0 ต ้นทุนเช่ำเครือข่ำยทีเ่ พิม ่ ขึน ้ ในขณะทีจ ่ ำนวนผู ้ใช ้บริกำรเติบโตชะลอตัวลง (3.3% q- 0 o-q) ในไตรมำส 4/58 จำกกำรเปลีย ่ นแปลงเงือ ่ นไขกำรบันทึกหนีส ้ ญ ู ปรับคำแนะนำลง 0 ้ ” ทีร่ ำคำเป้ ำหมำยคำนวณจำกวิธ ี DCF เท่ำกับ 2.86 บำท (11% เป็ น “ขำย” จำก “ซือ downside) หลังจำกปรับประมำณกำรกำไร โดยต ้นทุนใบอนุญำตทีส ่ ูง (7.6 หมืน ่ ล ้ำน บำท) ทำให ้ขำดทุนในขณะทีค ่ วำมสำเร็จของธุรกิจจะขึน ้ อยู่กับจำนวนผู ้ใช ้บริกำรใน 3 ปี แรกก่อนจะมีกำรจ่ำย 6.0 หมืน ่ ล ้ำนบำทในปี 2019 เป็ นหลัก
เป็นไปตามคาด JAS บันทึกกำไรจำกกำรดำเนินงำนสำหรับไตรมำส 4/58 และทัง้ ปี 2558 ที่ 456 ล ้ำนบำท (-52% y-o-y) และ 2.64 พันล ้ำนบำท (-27% y-o-y) ตำมลำดับ เป็ นไปตำมคำด โดยจำนวนผู ้ใช ้บริกำรปรับเพิม ่ ขึน ้ เป็ น 2.0 ล ้ำนรำยตำมคำด อีก ทัง้ ผู ้บริห ำรได ้มีมติอ นุ มัต ก ิ ำรจ่ ำ ยปั น ผลจ ำนวนหุ ้นละ 0.30 บำท คิด เป็ นปั น ผล สำหรับทัง้ ปี ท ี่ 1.90 บำทหรือเทียบเท่ำอัตรำกำรจ่ำยปั นผลที่ 85%
ประเด็นทีส ่ าค ัญ รำยได ้บริก ำรในไตรมำส 4/58 เพิม ่ ขึน ้ 15% y-o-y (3.3% q-o-q) เป็ น 3.7 พันล ้ำนบำทจำกธุรกิจ FBB เป็ นหลัก โดยกำรเปลีย ่ นเงื่อ นไขกำรบันทึก หนี้สูย (จำก 6 เดือนเป็ น 3 เดือน) ส่งผลกระทบต่อกำรเติบโตของจำนวนผู ้ใช ้บริกำร ส่วน ผู ้ใช ้บริกำร ADSL เพิม ่ ขึน ้ เพียง 3% q-o-q เป็ น 1.94 ล ้ำนรำย ส่วนผู ้ใช ้บริกำรไฟ เบอร์ออฟติคเพิม ่ ขึน ้ 10% q-o-q เป็ น 80100 รำย EBITDA ยังคงลดลงต่อเนื่อง จำกต ้นทุนเช่ำเครือข่ำยทีเ่ พิม ่ ขึน ้ ฉุ ดอัตรำกำไรสุทธิไตรมำส 4/58 ให ้ลดลงเป็ น 12% จำกเดิม 30% ในไตรมำส 4/57
2
Dec-15
Oct-15
Aug-15
Jun-15
Mar-15
1 Jan-15
Vol bn
1
Source: Bloomberg
Avg Turnover (THB/USD) Cons. Upside (%) Upside (%) 52-wk Price low/high (THB) Free float (%) Share outstanding (m) Shareholders (%)
2,080m/57.4m 9.9 -11.3 2.84 - 9.10 74 7,134
Mr. PETE BODHARAMIK Thai NVDR ABN AMRO SINGAPORE LTD
25.8 5.3 4.8
Share Performance (%) YTD
1m
3m
6m
12m
Absolute
(0.6)
(2.4)
(41.5)
(36.2)
(59.5)
Relative
1.0
(1.2)
(30.5)
(24.4)
(39.3)
2 . 3 0 . 2
แนวโน้มอนาคตย ังไม่แน่นอน เรำยังคงไม่มั่นใจเป้ ำผู ้ใช ้บริกำรมือถือจำนวน 5 ล ้ำนรำยของ JAS ภำยในปลำยปี 2018 จำกกำรแข่งขันในอุตสำหกรรมทีส ่ งู ควำมท ้ำทำยด ้ำนกำรวำงเครือข่ำย และ ต ้นทุนกำรเงินที่สูง โดยเรำประเมิน จ ำนวนผู ้ใช ้บริก ำรในปี 2018/2020 ไว ้เพีย ง 1.2 ล ้ำนรำย/2.7 ล ้ำนรำย หรือคิดเป็ นเพียง 2% /4% ของสัดส่วนทำงกำรตลำด ทัง้ หมด โดยบริษัทจำเป็ นต ้องจ่ำยค่ำใบอนุญำตงวดสุดท ้ำยจำนวน 6.0 หมืน ่ ล ้ำน บำทในปี 2019 โดยเรำประเมินธุรกิจมือถือจะเริม ่ ทำกำไรได ้ในปี 2022 ้ ” ปร ับคาแนะนาลงเป็น “ขาย” จากเดิม “ซือ ้ ” ทีร่ ำคำเป้ ำหมำยคำนวณจำกวิธ ี DCF ปรับคำแนะนำลงเป็ น “ขำย” จำกเดิม “ซือ ปรับเป็ น 2.86 บำท (เดิม 7.46 บำท , WACC 13%, TG 1%) จำกทิศทำงใน อนำคตทีย ่ ังไม่สู ้ดีนัก โดยเรำได ้ปรับลดประมำณกำรก ำไรส ำหรับปี 2016/2017 ลงรำว 226%/213% จำกต ้นทุนใบอนุ ญำต ค่ำใช ้จ่ำยในกำรวำงเครือ ข่ำยและ กำรตลำดทีส ่ ูง และกำรเพิม ่ จำนวนผู ้ใช ้บริกำรไม่ใช่เรือ ่ งง่ำยนั กจำกกำรแข่งขันที่ สูงในอุตสำหกรรมจำก Big3 ทัง้ นี้ แม ้รำคำหุ ้นจะลดลงมำกถึง 36% ในรอบ 6 เดือ นทีผ ่ ่ำนมำ แต่มูลค่ำประเมินยังคงแพงด ้วย EV/EBITDA ปี 2559 ถึง 40x (เทียบกับผู ้ประกอบกำรในภูมภ ิ ำคที่ 9x) Forecasts and Valuations
Dec-13
Dec-14
Dec-15
Dec-16F
Total turnover (THBm)
11,123
12,268
13,983
17,595
20,860
Reported net profit (THBm)
3,038
3,271
15,710
(658)
(2,731)
Vikran Lumyai +66 2862 9230
Recurring net profit (THBm)
3,231
3,618
2,635
(3,902)
(3,754)
[email protected]
Recurring net profit growth (%)
34.1
12.0
(27.2)
(248.0)
(3.8)
Recurring EPS (THB)
0.45
0.51
0.37
(0.52)
(0.46)
DPS (THB)
0.09
0.25
1.72
0.17
0.00
Recurring P/E (x)
7.11
6.35
8.72
P/B (x)
2.06
1.82
1.47
1.55
1.69
P/CF (x)
2.96
Shariah compliant
Jeffrey Tan +603 9207 7633
[email protected]
na
4.85
8.72
0.63
1.11
Dividend Yield (%)
2.9
7.8
53.3
5.2
0.0
EV/EBITDA (x)
4.0
3.8
1.2
39.9
26.0
Return on average equity (%)
See important disclosures at the end of this report
na
Dec-17F
Net debt to equity (%) Our vs consensus EPS (adjusted) (%) Source: Company data, RHB
30.1 9.9
27.5 21.3
111.3 net cash
(4.1)
(16.8)
290.4
1312.2
8585.4
433.3
Powered by EFATM Platform
Jasmine International (JAS TB) 27 January 2016 Figure 1: Jasmine’s results review FYE Dec (THBm)
4Q14
3Q15
4Q15
QoQ (%)
YoY (%)
FY14
FY15
YoY (%)
Revenue
3,231.4
3,628.1
3,784.7
4.3
17.1
12,353.4
14,293.8
15.7
Service revenue
3,206.6
3,573.0
3,691.4
3.3
15.1
12,268.5
13,982.7
14.0
Broadband
2,864.6
3,242.0
3,380.0
4.3
18.0
10,955.0
12,677.0
15.7
Telecom
280.6
285.0
273.0
(4.2)
(2.7)
1,087.0
1,124.0
3.4
System Integration
16.7
8.0
0.0
(100.0)
(100.0)
80.0
32.0
(60.0)
Others
45.1
38.0
38.4
1.2
(14.8)
147.0
149.7
1.8
Management fee income Other income
0.0
43.8
47.2
7.8
nm
0.0
154.1
nm
24.9
11.4
46.0
305.1
85.1
84.9
157.0
84.9
COGS
(1,226)
(2,192.3)
(2,570)
17.2
109.5
(4,713)
(8,407)
78.4
EBITDA
1,688.6
1,048.2
815.7
(22.2)
(51.7)
6,647.4
4,349.1
(34.6)
QoQ/YoY fell from rising cost
52.3
28.9
21.6
53.8
30.4
Depreciation
(517.8)
(508.9)
(569.9)
12.0
10.1
(2,059)
(2,031.9)
(1.3)
YoY up from network expansion
EBIT
1,170.8
539.3
245.7
(54.4)
(79.0)
4,588.4
2,317.2
(49.5)
EBIT Margin (%)
36.2
14.9
6.5
37.1
16.2
Interest expense
(63.1)
(48.5)
(40.4)
(16.7)
(35.9)
(296.9)
(197.4)
(33.5)
EBITDA Margin (%)
Comments
Maintenance income from JASIF
4Q15: JASIF network rental cost THB1bn vs. THB985m in 3Q15
Interest income
13.9
75.1
52.7
(29.8)
278.6
57.7
274.0
375.2
Associates
(0.1)
225.0
230.9
2.7
nm
0.1
796.9
nm
JASIF’s profit sharing
EI/Others
(73.3)
256.4
844.3
229.3
nm
(347.1)
18,732.0
nm
4Q15: Gain from sale of assets to the fund of THB837m (3Q15: 377.5m) and FX gain THB7m (3Q15: -121m)
1,048.3
1,047.2
1,333.2
27.3
27.2
4,002.2
21,922.6
447.8
32.4
28.9
35.2
32.4
153.4
Tax
(181.7)
(156.9)
(280.8)
(759.7)
(6,022.8)
Effective tax rate (%)
(17.3)
(15.0)
(21.1)
(19.0)
(27.5)
Minority Interest
19.0
(7.8)
(3.0)
(115.7)
28.3
(189.3)
Net Profit
885.5
882.5
1,049.5
18.9
18.5
3,270.9
15,710.4
380.3
Core Profit
958.8
739.2
456.2
(38.3)
(52.4)
3,618.0
2,635.4
(27.2)
Net Margin (%)
29.7
20.4
12.1
29.3
18.4
Pretax profit Pretax Margin (%)
78.9
(61.6)
54.5
692.8
4Q15: Tax from assets sales to fund THB251m (3Q15:THB113m)
(768.2)
Earnings plunged due to higher network rental costs.
Source: Company data, RHB
Figure 2: Jasmine’s key operating statistics Key operating statistics
4Q14
3Q15
4Q15
QoQ (%)
YoY (%)
Total subscribers ('000)
1,672.0
1,951
2,016
3.3
20.6
- ADSL
1,625.5
1,878.3
1,936
3.0
19.1
- FTTx
46.6
72.8
80
9.9
71.7
Total net add ('000)
62.1
100.11
64.77
ARPU (THB/month)
641
645
651
0.9
1.6
Comments Subs grow at slower pace due to a change in provision criteria and also long holiday season
Achieved FY15 full-year target is 2m subs QoQ/YoY grow from more FTTx subs, which have higher ARPU
Source: Company data, RHB
See important disclosures at the end of this report
2
Jasmine International (JAS TB) 27 January 2016 Figure 3: Jasmine’s DCF-based valuation table FYE Dec (THB m) EBIT*(1-Tax) Depreciation & Amortization Change in working capital
2016F
2017F
2018F
2019F
7,810.17
-697.51
-1,341.6
-1,064.5
2020F -956.9
7,872.9
8,504.1
8,828.7
8,991.2
8,985.6
6,054.8
1,093.4
1,613.9
1,421.7
1,880.1
21,737.92
8,899.98
9,101.01
9,348.35
9,908.77
Capex
-7,268.2
-8,827.0
-8,813.5
-9,234.3
-9,228.9
FCFF
14,646.3
399.1
807.2
728.3
1,429.9
NPV
14,646.3
364.7
674.0
555.7
997.1
CFO
Source: Company data, RHB
Figure 4: DCF assumptions and calculation of value Parameter WACC LTG Terminal Value PV of FCFF (2016-2020) (a) PV of terminal value (b) NPV to Firm (a)+(b) (-) Net Debt (-) Minority interest NPV of Equity No. of outstanding shares (m) Per share (THB)
13% 1% THB m 183 16,376 88.8 16,465 -5,030 1,129 20,367 7,133 2.86
Source: RHB
See important disclosures at the end of this report
3
Jasmine International (JAS TB) 27 January 2016
Financial Exhibits Profit & Loss (THBm)
Dec-13
Dec-14
Dec-15
Dec-16F
Total turnover
11,123
12,268
13,983
17,595
20,860
Cost of sales
(4,475)
(4,713)
(8,407)
(19,773)
(22,196)
Gross profit Gen & admin expenses Selling expenses
Dec-17F
6,648
7,555
5,576
(2,178)
(1,336)
(1,858)
(3,052)
(3,570)
(4,198)
(4,695) (6,031)
(705)
Operating profit
4,085
4,504
2,006
(6,376)
Operating EBITDA
5,985
6,562
4,038
1,497
2,473
(1,900)
(2,059)
(2,032)
(7,873)
(8,504)
4,085
4,504
2,006
(6,376)
(6,031)
0
0
797
1,316
1,337
Other recurring income
42
85
311
311
311
Interest income
95
58
274
-
Interest expense
(312)
(297)
(197)
Depreciation of fixed assets Operating EBIT Net income from investments
Exchange gains Other non-recurring income Pre-tax profit Taxation Minority interests
(7)
(33)
(186)
(314)
3,718
4,002
(605)
(760)
(74)
28
(127)
(221) (127)
(408) (127)
18,859
3,371
1,150
21,923
(1,726)
(3,767)
(6,023)
1,257
1,225
(189)
(189)
(189)
(658)
(2,731)
Profit after tax & minorities
3,038
3,271
15,710
Reported net profit
3,038
3,271
15,710
(658)
(2,731)
Recurring net profit
3,231
3,618
2,635
(3,902)
(3,754)
Source: Company data, RHB
Cash flow (THBm)
Dec-13
Dec-14
Dec-15
Dec-16F
Dec-17F
Operating profit
4,085
4,504
2,006
(6,376)
(6,031)
Depreciation & amortisation
1,900
2,059
2,032
7,873
8,504
256
(1,634)
4,584
5,878
767
(681)
(1,295)
33,598
13,326
4,842
5,560
3,633
42,220
20,702
8,082
95
58
274
(312)
(297)
(197)
Change in working capital Other operating cash flow Operating cash flow Interest received Interest paid Tax paid Cash flow from operations Capex Other investing cash flow Cash flow from investing activities Dividends paid Proceeds from issue of shares Increase in debt Other financing cash flow Cash flow from financing activities
(605)
(221)
(408)
(6,023)
1,257
4,738
2,634
36,273
21,738
8,900
(2,942)
(1,581)
(3,808)
(7,268)
(8,827)
305
(760)
-
157
1,225
(28,704)
(12,559)
(6,360)
(2,637)
(1,424)
(32,513)
(19,827)
(15,187)
(671)
(1,793)
(12,252)
(1,318)
(53)
-
-
(2)
350
350 14,441
(174)
58
(1,109)
24,910
315
(971)
15,980
2,308
2,308
(2,706)
2,618
26,250
17,099
(583)
Cash at beginning of period
1,479
2,997
1,501
7,880
36,040
Total cash generated
1,519
(1,496)
6,379
28,161
10,812
Implied cash at end of period
2,997
1,501
7,880
36,040
46,853
Source: Company data, RHB
See important disclosures at the end of this report
4
Jasmine International (JAS TB) 27 January 2016
Financial Exhibits Balance Sheet (THBm) Total cash and equivalents Inventories Accounts receivable Other current assets Total current assets Total investments
Dec-13
Dec-14
Dec-15
Dec-16F
Dec-17F
3,857
2,395
9,075
37,236
48,048
40
27
21
115
129
3,765
3,232
6,972
4,635
5,495
598
3,555
959
959
959
8,260
9,209
17,027
42,945
54,631
761
917
9,791
9,791
9,791
12,288
12,502
18,958
19,217
24,618
Intangible assets
143
145
1,653
72,357
67,279
Total other assets
282
209
3,366
3,366
3,366
Total non-current assets
13,474
13,772
33,769
104,732
105,055
Total assets
Tangible fixed assets
21,733
22,982
50,796
147,677
159,686
Short-term debt
2,744
3,921
3,260
3,866
13,307
Accounts payable
2,637
2,950
3,753
12,377
13,894
Other current liabilities
1,287
1,688
11,266
14,277
10,402
Total current liabilities
6,667
8,559
18,279
30,520
37,603
Total long-term debt
2,352
1,232
785
84,743
89,743
245
263
14,722
14,722
14,722
Total non-current liabilities
2,597
1,496
15,506
99,465
104,465
Total liabilities
9,264
10,055
33,785
129,985
142,067
Share capital
3,569
3,569
3,567
3,916
4,266
Retained earnings reserve
7,075
7,434
10,862
8,886
6,154
490
1,617
1,195
3,503
5,811
11,133
12,620
15,624
16,305
16,232
1,078
1,041
1,129
1,129
1,129
258
258
258
Other liabilities
Other reserves Shareholders' equity Minority interests Other equity
258
(733)
Total equity
12,469
12,927
17,010
17,692
17,619
Total liabilities & equity
21,733
22,982
50,796
147,677
159,686
Dec-13
Dec-14
Dec-15
Dec-16F
Dec-17F
7.3
10.3
14.0
25.8
18.6
Operating profit growth (%)
23.4
10.2
(55.5)
(417.8)
(5.4)
Net profit growth (%)
59.0
7.7
380.3
(104.2)
314.8
EPS growth (%)
60.2
7.7
380.3
(104.0)
279.3
BVPS growth (%)
22.7
13.4
23.8
(5.0)
(8.6)
Operating margin (%)
36.7
36.7
14.3
(36.2)
(28.9)
Net profit margin (%)
27.3
26.7
112.4
(3.7)
(13.1)
Return on average assets (%)
14.6
14.6
42.6
(0.7)
(1.8)
Return on average equity (%)
30.1
27.5
111.3
(4.1)
(16.8)
Source: Company data, RHB
Key Ratios (THB) Revenue growth (%)
Net debt to equity (%)
9.9
21.3
(29.6)
290.4
312.2
DPS
0.09
0.25
1.72
0.17
0.00
Recurrent cash flow per share
0.66
0.37
5.08
2.90
1.09
Source: Company data, RHB
See important disclosures at the end of this report
5
Jasmine International (JAS TB) 27 January 2016
SWOT Analysis Strong subscriber growth of 21% from 2010 to 2013
Intensified competition from existing providers
Dominates provincial areas with 1.95m subs Taking market share away from True (TRUE TB, NEUTRAL, TP: THB10.50) and TOT
Potential strong competitors, eg Advance Info Services (ADVANC TB, BUY, TP: THB265.00)
Low fixed broadband penetration rate of 30% in Thailand
Pending issues with TT&T and creditors
New comer in mobile space Moving into fibre to the X (FTTx), which is a key success indicator in fixed broadband Only ADSL and FTTx technologies are available while competitors offer ADSL, FTTx, VDSL and data over cable service interface specification (DOCSIS) No value-added services like True’s convergence packages Low subs in Bangkok and Metropolis (BMA) areas
P/E (x) vs EPS growth
P/BV (x) vs ROAE
10
-214%
1.0
13%
5
-357%
0.5
-13%
0
-500%
0.0
-40%
P/E (x) (lhs)
EPS growth (rhs)
Source: Company data, RHB
P/B (x) (lhs)
Jan-17
40%
-71%
Jan-16
1.5 15
Jan-15
67%
71%
Jan-14
2.0
20
Jan-13
93%
214%
Jan-17
2.5
25
Jan-16
120%
Jan-15
3.0
357%
Jan-14
500%
30
Jan-13
35
Return on average equity (rhs)
Source: Company data, RHB
Company Profile The businesses are grouped into 4 categories : 1. Broadband Business 2. Telecom Network & Service Provider Business 3. System Integration Business 4. Other Businesses
See important disclosures at the end of this report
6
Jasmine International (JAS TB) 27 January 2016
Recommendation Chart
na
Sell
Trading Buy
Aug-13
Price Close 11 Recommendations & Target Price 10 9 8 7 6 5 4 3 2 Buy Neutral 1 Jan-11 May-12
Take Profit
Not Rated
Nov-14
Source: RHB, Bloomberg Date
Recommendation Target Price
2015-10-30
Buy
7.5
Price 5.7
2015-07-29
Buy
7.3
5.0
2015-04-17
Buy
7.3
5.7
2015-03-02
Buy
10.0
8.9
2014-12-01
Buy
8.7
7.8
2014-10-21
Buy
8.7
6.6
2014-09-05
Buy
8.7
6.7
Source : RHB, Bloomberg
See important disclosures at the end of this report
7
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 Investment Research Disclaimers RHB has issued this report for information purposes only. This report is intended for circulation amongst RHB and its affiliates’ clients generally or such persons as may be deemed eligible by RHB to receive this report and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. This report is not intended, and should not under any circumstances be construed as, an offer or a solicitation of an offer to buy or sell the securities referred to herein or any related financial instruments. This report may further consist of, whether in whole or in part, summaries, research, compilations, extracts or analysis that has been prepared by RHB’s strategic, joint venture and/or business partners. No representation or warranty (express or implied) is given as to the accuracy or completeness of such information and accordingly investors should make their own informed decisions before relying on the same. This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to the applicable laws or regulations. By accepting this report, the recipient hereof (i) represents and warrants that it is lawfully able to receive this document under the laws and regulations of the jurisdiction in which it is located or other applicable laws and (ii) acknowledges and agrees to be bound by the limitations contained herein. Any failure to comply with these limitations may constitute a violation of applicable laws. All the information contained herein is based upon publicly available information and has been obtained from sources that RHB believes to be reliable and correct at the time of issue of this report. However, such sources have not been independently verified by RHB and/or its affiliates and this report does not purport to contain all information that a prospective investor may require. The opinions expressed herein are RHB’s present opinions only and are subject to change without prior notice. RHB is not under any obligation to update or keep current the information and opinions expressed herein or to provide the recipient with access to any additional information. Consequently, RHB does not guarantee, represent or warrant, expressly or impliedly, as to the adequacy, accuracy, reliability, fairness or completeness of the information and opinion contained in this report. Neither RHB (including its officers, directors, associates, connected parties, and/or employees) nor does any of its agents accept any liability for any direct, indirect or consequential losses, loss of profits and/or damages that may arise from the use or reliance of this research report and/or further communications given in relation to this report. Any such responsibility or liability is hereby expressly disclaimed. Whilst every effort is made to ensure that statement of facts made in this report are accurate, all estimates, projections, forecasts, expressions of opinion and other subjective judgments contained in this report are based on assumptions considered to be reasonable and must not be construed as a representation that the matters referred to therein will occur. Different assumptions by RHB or any other source may yield substantially different results and recommendations contained on one type of research product may differ from recommendations contained in other types of research. The performance of currencies may affect the value of, or income from, the securities or any other financial instruments referenced in this report. Holders of depositary receipts backed by the securities discussed in this report assume currency risk. Past performance is not a guide to future performance. Income from investments may fluctuate. The price or value of the investments to which this report relates, either directly or indirectly, may fall or rise against the interest of investors. This report does not purport to be comprehensive or to contain all the information that a prospective investor may need in order to make an investment decision. The recipient of this report is making its own independent assessment and decisions regarding any securities or financial instruments referenced herein. Any investment discussed or recommended in this report may be unsuitable for an investor depending on the investor’s specific investment objectives and financial position. The material in this report is general information intended for recipients who understand the risks of investing in financial instruments. This report does not take into account whether an investment or course of action and any associated risks are suitable for the recipient. Any recommendations contained in this report must therefore not be relied upon as investment advice based on the recipient's personal circumstances. Investors should make their own independent evaluation of the information contained herein, consider their own investment objective, financial situation and particular needs and seek their own financial, business, legal, tax and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report. This report may contain forward-looking statements which are often but not always identified by the use of words such as “believe”, “estimate”, “intend” and “expect” and statements that an event or result “may”, “will” or “might” occur or be achieved and other similar expressions. Such forward-looking statements are based on assumptions made and information currently available to RHB and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement to be materially different from any future results, performance or achievement, expressed or implied by such forward-looking statements. Caution should be taken with respect to such statements and recipients of this report should not place undue reliance on any such forward-looking statements. RHB expressly disclaims any obligation to update or revise any forwardlooking 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. 8
The use of any website to access this report electronically is done at the recipient’s own risk, and it is the recipient’s sole responsibility to take precautions to ensure that it is free from viruses or other items of a destructive nature. This report may also provide the addresses of, or contain hyperlinks to, websites. RHB takes no responsibility for the content contained therein. Such addresses or hyperlinks (including addresses or hyperlinks to RHB own website material) are provided solely for the recipient’s convenience. The information and the content of the linked site do not in any way form part of this report. Accessing such website or following such link through the report or RHB website shall be at the recipient’s own risk. This report may contain information obtained from third parties. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. Third party content providers give no express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use. Third party content providers shall not be liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or profits and opportunity costs) in connection with any use of their content. The research analysts responsible for the production of this report hereby certifies that the views expressed herein accurately and exclusively reflect his or her personal views and opinions about any and all of the issuers or securities analysed in this report and were prepared independently and autonomously. The research analysts that authored this report are precluded by RHB in all circumstances from trading in the securities or other financial instruments referenced in the report, or from having an interest in the company(ies) that they cover. RHB and/or its affiliates and/or their directors, officers, associates, connected parties and/or employees, may have, or have had, interests in the securities or qualified holdings, in subject company(ies) mentioned in this report or any securities related thereto and may from time to time add to or dispose of, or may be materially interested in, any such securities. Further, RHB and/or its affiliates may have, or have had, business relationships with the subject company(ies) mentioned in this report and may from time to time seek to provide investment banking or other services to the subject company(ies) referred to in this research report. As a result, investors should be aware that a conflict of interest may exist. The contents of this report is strictly confidential and may not be copied, reproduced, published, distributed, transmitted or passed, in whole or in part, to any other person without the prior express written consent of RHB and/or its affiliates. This report has been delivered to RHB and its affiliates’ clients for information purposes only and upon the express understanding that such parties will use it only for the purposes set forth above. By electing to view or accepting a copy of this report, the recipients have agreed that they will not print, copy, videotape, record, hyperlink, download, or otherwise attempt to reproduce or re-transmit (in any form including hard copy or electronic distribution format) the contents of this report. RHB and/or its affiliates accepts no liability whatsoever for the actions of third parties in this respect. The contents of this report are subject to copyright. Please refer to Restrictions on Distribution below for information regarding the distributors of this report. Recipients must not reproduce or disseminate any content or findings of this report without the express permission of RHB and the distributors. The securities mentioned in this publication may not be eligible for sale in some states or countries or certain categories of investors. The recipient of this report should have regard to the laws of the recipient’s place of domicile when contemplating transactions in the securities or other financial instruments referred to herein. The securities discussed in this report may not have been registered in such jurisdiction. Without prejudice to the foregoing, the recipient is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report. RESTRICTIONS ON DISTRIBUTION Malaysia This report is issued and distributed in Malaysia by RHB Research Institute Sdn Bhd. The views and opinions in this report are our own as of the date hereof and is subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. RHB Research Institute Sdn Bhd has no obligation to update its opinion or the information in this report. Thailand This report is issued and distributed in the Kingdom of Thailand by RHB Securities (Thailand) PCL, a licensed securities company that is authorised by the Ministry of Finance, regulated by the Securities and Exchange Commission of Thailand and is a member of the Stock Exchange of Thailand. The Thai Institute of Directors Association has disclosed the Corporate Governance Report of Thai Listed Companies made pursuant to the policy of the Securities and Exchange Commission of Thailand. RHB Securities (Thailand) PCL does not endorse, confirm nor certify the result of the Corporate Governance Report of Thai Listed Companies. Indonesia This report is issued and distributed in Indonesia by PT RHB Securities Indonesia. This research does not constitute an offering document and it should not be construed as an offer of securities in Indonesia. Any securities offered or sold, directly or indirectly, in Indonesia or to any Indonesian citizen or corporation (wherever located) or to any Indonesian resident in a manner which constitutes a public offering under Indonesian laws and regulations must comply with the prevailing Indonesian laws and regulations.
9
Singapore This report is issued and distributed in Singapore by RHB Research Institute Singapore Pte Ltd and it may only be distributed in Singapore to accredited investors, expert investors and institutional investors as defined in the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time. By virtue of distribution to these categories of investors, RHB Research Institute Singapore Pte Ltd and its representatives are not required to comply with Section 36 of the Financial Advisers Act (Chapter 110) (Section 36 relates to disclosure of RHB Research Institute Singapore Pte Ltd ’s interest and/or its representative's interest in securities). Recipients of this report in Singapore may contact RHB Research Institute Singapore Pte Ltd in respect of any matter arising from or in connection with the report. Hong Kong This report is issued and distributed in Hong Kong by RHB Securities Hong Kong Limited (興業僑豐證券有限公司) (CE No.: ADU220) (“RHBSHK”) which is licensed in Hong Kong by the Securities and Futures Commission for Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. Any investors wishing to purchase or otherwise deal in the securities covered in this report should contact RHB Securities Hong Kong Limited. United States This report was prepared by RHB and is being distributed solely and directly to “major” U.S. institutional investors as defined under, and pursuant to, the requirements of Rule 15a-6 under the U.S. Securities and Exchange Act of 1934, as amended (the “Exchange Act”). RHB is not registered as a brokerdealer in the United States and does not offer brokerage services to U.S. persons. Any order for the purchase or sale of the securities discussed herein that are listed on Bursa Malaysia Securities Berhad must be placed with and through Auerbach Grayson (“AG”). Any order for the purchase or sale of all other securities discussed herein must be placed with and through such other registered U.S. broker-dealer as appointed by RHB from time to time as required by the Exchange Act Rule 15a-6. This report is confidential and not intended for distribution to, or use by, persons other than the recipient and its employees, agents and advisors, as applicable. Additionally, where research is distributed via Electronic Service Provider, the analysts whose names appear in this report are not registered or qualified as research analysts in the United States and are not associated persons of Auerbach Grayson AG or such other registered U.S. broker-dealer as appointed by RHB from time to time and therefore may not be subject to any applicable restrictions under Financial Industry Regulatory Authority (“FINRA”) rules on communications with a subject company, public appearances and personal trading. Investing in any non-U.S. securities or related financial instruments discussed in this research report may present certain risks. The securities of non-U.S. issuers may not be registered with, or be subject to the regulations of, the U.S. Securities and Exchange Commission. Information on non-U.S. securities or related financial instruments may be limited. Foreign companies may not be subject to audit and reporting standards and regulatory requirements comparable to those in the United States. The financial instruments discussed in this report may not be suitable for all investors. Transactions in foreign markets may be subject to regulations that differ from or offer less protection than those in the United States. OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST Malaysia RHB does not have qualified shareholding (1% or more) in the subject company (ies) covered in this report except for: a) RHB and/or its subsidiaries are not liquidity providers or market makers for the subject company (ies) covered in this report except for: a) RHB and/or its subsidiaries have not participated as a syndicate member in share offerings and/or bond issues in securities covered in this report in the last 12 months except for: a) RHB has not provided investment banking services to the company/companies covered in this report in the last 12 months except for: a) Thailand RHB Securities (Thailand) PCL and/or its directors, officers, associates, connected parties and/or employees, may have, or have had, interests and/or commitments in the securities in subject company(ies) mentioned in this report or any securities related thereto. Further, RHB Securities (Thailand) PCL may have, or have had, business relationships with the subject company(ies) mentioned in this report. As a result, investors should exercise their own judgment carefully before making any investment decisions. Indonesia PT RHB Securities Indonesia is not affiliated with the subject company(ies) covered in this report both directly or indirectly as per the definitions of 10
affiliation above. Pursuant to the Capital Market Law (Law Number 8 Year 1995) and the supporting regulations thereof, what constitutes as affiliated parties are as follows: 1.
Familial relationship due to marriage or blood up to the second degree, both horizontally or vertically;
2.
Affiliation between parties to the employees, Directors or Commissioners of the parties concerned;
3.
Affiliation between 2 companies whereby one or more member of the Board of Directors or the Commissioners are the same;
4.
Affiliation between the Company and the parties, both directly or indirectly, controlling or being controlled by the Company;
5.
Affiliation between 2 companies which are controlled, directly or indirectly, by the same party; or
6.
Affiliation between the Company and the main Shareholders.
PT RHB Securities Indonesia is not an insider as defined in the Capital Market Law and the information contained in this report is not considered as insider information prohibited by law. Insider means: a. a commissioner, director or employee of an Issuer or Public Company; b.
a substantial shareholder of an Issuer or Public Company;
c.
an individual, who because of his position or profession, or because of a business relationship with an Issuer or Public Company, has access to inside information; and
d.
an individual who within the last six months was a Person defined in letters a, b or c, above.
Singapore RHB Research Institute Singapore Pte Ltd and/or its subsidiaries and/or associated companies do not make a market in any securities covered in this report, except for: (a) The staff of RHB Research Institute Singapore Pte Ltd and its subsidiaries and/or its associated companies do not serve on any board or trustee positions of any issuer whose securities are covered in this report, except for: (a) RHB Research Institute Singapore Pte Ltd and/or its subsidiaries and/or its associated companies do not have and have not within the last 12 months had any corporate finance advisory relationship with the issuer of the securities covered in this report or any other relationship (including a shareholding of 1% or more in the securities covered in this report) that may create a potential conflict of interest, except for: (a) Hong Kong RHBSHK or any of its group companies may have financial interests in in relation to an issuer or a new listing applicant (as the case may be) the securities in respect of which are reviewed in the report, and such interests aggregate to an amount equal to or more than (a) 1% of the subject company’s market capitalization (in the case of an issuer as defined under paragraph 16 of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (the “Code of Conduct”); and/or (b) an amount equal to or more than 1% of the subject company’s issued share capital, or issued units, as applicable (in the case of a new listing applicant as defined in the Code of Conduct). Further, the analysts named in this report or their associates may have financial interests in relation to an issuer or a new listing applicant (as the case may be) in the securities which are reviewed in the report. RHBSHK or any of its group companies may make a market in the securities covered by this report. RHBSHK or any of its group companies may have analysts or their associates, individual(s) employed by or associated with RHBSHK or any of its group companies serving as an officer of the company or any of the companies covered by this report. RHBSHK or any of its group companies may have received compensation or a mandate for investment banking services to the company or any of the companies covered by this report within the past 12 months. Note: The reference to “group companies” above refers to a group company of RHBSHK that carries on a business in Hong Kong in (a) investment banking; (b) proprietary trading or market making; or (c) agency broking, in relation to securities listed or traded on The Stock Exchange of Hong Kong Limited.
11
Kuala Lumpur
Hong Kong
Singapore
RHB Research Institute Sdn Bhd Level 11, Tower One, RHB Centre Jalan Tun Razak Kuala Lumpur Malaysia Tel : +(60) 3 9280 2185 Fax : +(60) 3 9284 8693
RHB Securities Hong Kong Ltd. th 12 Floor World-Wide House 19 Des Voeux Road Central, Hong Kong Tel : +(852) 2525 1118 Fax : +(852) 2810 0908
RHB Research Institute Singapore Pte Ltd (formerly known as DMG & Partners Research Pte Ltd) 10 Collyer Quay #09-08 Ocean Financial Centre Singapore 049315 Tel : +(65) 6533 1818 Fax : +(65) 6532 6211
Jakarta
Shanghai
Bangkok
PT RHB Securities Indonesia Wisma Mulia, 20th Floor Jl. Jenderal Gatot Subroto No. 42 Jakarta 12710, Indonesia Tel : +(6221) 2783 0888 Fax : +(6221) 2783 0777
RHB (China) Investment Advisory Co. Ltd. Suite 4005, CITIC Square 1168 Nanjing West Road Shanghai 20041 China Tel : +(8621) 6288 9611 Fax : +(8621) 6288 9633
RHB Securities (Thailand) PCL 10th Floor, Sathorn Square Office Tower 98, North Sathorn Road, Silom Bangrak, Bangkok 10500 Thailand Tel: +(66) 2 862 9999 Fax : +(66) 2 862 9799
12
Thai Institute of Directors Association (IOD) – Corporate Governance Report Rating 2015
Excellent ADVANC BAFS BCP BIGC BTS CK
CPN DRT DTAC DTC EASTW EGCO
GRAMMY HANA HMPRO INTUCH IRPC IVL
KBANK KCE KKP KTB LHBANK LPN
MCOT MINT MONO NKI PHOL PPS
PS PSL PTT PTTEP PTTGC QTC
RATCH ROBINS SAMART SAMTEL SAT SC
SCB SCC SE-ED SIM SNC SPALI
THCOM TISCO TKT TMB TOP VGI
WACOAL
Very Good AAV BBL COL HEMRAJ MC PG ACAP BDMS CPF HOTPOT MEGA PJW AGE BECL CPI HYDRO MFEC PM AHC BKI CSL ICC NBC PPP AKP BLA DCC ICHI NCH PR AMATA BMCL DELTA INET NINE PRANDA ANAN BOL DEMCO IRC NSI PREB AOT BROOK ECF KSL NTV PT APCS BWG EE KTC OCC PTG ARIP CENTEL ERW LANNA OGC Q-CON ASIMAR CFRESH GBX LH OISHI QH ASK CHO GC LOXLEY OTO RS ASP CIMBT GFPT LRH PAP S&J BANPU CM GLOBAL MACO PDI SABINA BAY CNT GUNKUL MBK PE SAMCO * On Oct 1,2015 TWFP TWFP merged with TWS resulting in a new company, TWPC
SCG SEAFCO SFP SIAM SINGER SIS SITHAI SMK SMPC SMT SNP SPI SSF SSI SSSC
SST STA STEC SVI SWC SYMC SYNTEC TASCO TBSP TCAP TF TGCI THAI THANA THANI
THIP THRE THREL TICON TIP TIPCO TK TKS TMI TMILL TMT TNDT TNITY TNL TOG
TPC TPCORP TRC TRU TRUE TSC TSTE TSTH TTA TTCL TTW TU TVD TVO TWFP*
TWS UAC UT UV VNT WAVE WINNER YUASA ZMICO
PATO PB PCA PCSGH PDG PF PICO PL PLANB PLAT PPM PRG PRIN PSTC TIW TLUXE TMC TMD TOPP TPCH
PTL PYLON QLT RCL RICHY RML RPC S SALEE SAPPE SAWAD SCCC SCN SCP TPIPL TRT TSE TSR UMI UP
SEAOIL SIRI SKR SMG SOLAR SORKON SPA SPC SPCG SPPT SPVI SRICHA SSC STANLY UPF UPOIC UREKA UWC VIBHA VIH
STPI SUC SUSCO SUTHA SYNTEC TAE TAKUNI TCC TCCC TCJ TEAM TFD TFI TIC VPO WHA WIN XO
Good 2S AEC AEONTS AF AH AIRA AIT AJ AKR AMANAH AMARIN AP APCO AQUA
AS ASIA AUCT AYUD BA BEAUTY BEC BFIT BH BIG BJC BJCHI BKD BTNC
CBG CGD CHG CHOW CI CITY CKP CNS CPALL CPL CSC CSP CSS CTW
DNA EARTH EASON ECL EFORL ESSO FE FIRE FOCUS FORTH FPI FSMART FSS FVC
GCAP GENCO GL GLAND GLOW GOLD GYT HTC HTECH IEC IFEC IFS IHL IRCP
ITD JSP JTS JUBILE KASET KBS KCAR KGI KKC KTIS KWC KYE L&E LALIN
LHK LIT LIVE LST M MAJOR MAKRO MATCH MATI MBKET M-CHAI MFC MILL MJD
MK MODERN MOONG MPG MSC MTI MTLS NC NOK NUSA NWR NYT OCEAN PACE
IOD (IOD Disclaimer)
การเปิ ดเผลผลการสํารวจของสมาคมส่งเสริ มสถาบันกรรมการบริษัทไทย (IOD) ในเรื่ องการกํากับดูแลกิจการ (Corporate Governance) นี ้เป็ นการ ดําเนินการตามนโยบายของสํานักงานคณะกรรมการกํากับหลักทรัพย์และตลาดหลักทรัพย์ โดยการสํารวจของ IOD เป็ นการสํารวจและประเมินจากข้ อมูลของบรษัทจด ทะเบียนในตลาดหลักทรัพย์แห่งประเทศไทยและตลาดหลักทรัพย์เอ็มเอไอ ที่มีการเปิ ดเผยต่อสาธารณะและเป็ นข้ อมูลที่ผ้ ลู งทุนทัว่ ไปสามารถเข้ าถึงได้ ดังนั ้นผลสํารวจ ดังกล่าวจึงเป็ นการนําเสนอในมุมมองของบุคคลภายนอกโดยไม่ได้ เป็ นการประเมินการปฏิบตั ิและมิได้ มีการใช้ ข้อมูลภายในในการประเมิน อนึ่ง ผลการสํารวจดังกล่าว เป็ นผลการสํารวจ ณ วันที่ปรากฎในรายงานการกํากับดูและกิจการบริษัทจดทะเบียนไทยเท่านัน้ ดังนันผลการสํ ้ ารวจจึงอาจ เปลี่ยนแปลงได้ ภายหลังวันดังกล่าว ทังนี ้ ้บริ ษัทหลักทรัพย์ อาร์ เอสบี จํากัด (มหาชน) มิได้ ยืนยันหรื อรับรองถึงความถูกต้ องของผลการสํารวจดังกล่าวแต่อย่างใด
