ALERT

Thailand

Thanachart Capital (TCAP.BK/TCAP TB)*

Price as of 18 Jul 2018

47.50

ผลประกอบการ 2Q61: รายได้ ค่าธรรมเนียมโตแข็งแกร่ ง & คุม ต้ นทุนดาเนินงานได้ ดีขนึ้

12M target price (Bt/shr)

57.50

Event

Neutral Maintained

Unchanged/Revised up (down) (%)

Upside/downside (%)

Unchanged 21.0

Key messages

กำไรสุ ทธิของ TCAP ใน 2Q61 อยูท่ ี่ 2.0 พันล้ำนบำท เพิ่มขึ้น 8% QoQ และ 22% YoY ซึ่ งดีกว่ำประมำณกำรของเรำ และ consensus ประมำณ 19% ถึงแม้วำ่ กำไรสุ ทธิใน 1H61 จะคิด เป็ น 55% ของประมำณกำรกำไรสุ ทธิ ท้ งั ปี ของเรำ แต่อตั รำภำษี จ่ำยจริ งที่จะเพิ่มขึ้นเป็ น 20% ใน 2H61 ทำให้เรำยังคงประมำณ กำรกำไรปี นี้เอำไว้เท่ำเดิม ถึงแม้เรำจะยังคงคำแนะนำถือ แต่ รำคำหุ ้นที่ปรับลดลงมำแรงทำให้หุ้น TCAP ไม่แพง และทำให้ เหลือ upside อีกมำกถึงรำคำเป้ำหมำยของเรำซึ่ งเป็ นโอกำสให้ เข้ำเก็งกำไรได้

กำไรสุทธิ ของ TCAP ใน 2Q61 อยูท่ ี่ 2.0 พันล้ำนบำท เพิ่มขึ้น 8% QoQ และ 22% YoY ซึ่งดีกว่ำ ประมำณกำรของเรำ และของตลำดรวมประมำณ 19% เนื่ องจำกกำไรจำกกำรขำยทรัพย์สินที่ยดึ มำ, รำยได้ค่ำธรรมเนี ยมและค่ำนำยหน้ำประกันโตเกินคำด และคุมค่ำใช้จ่ำยดำเนิ นงำนได้ดี ในขณะที่กำไร สุทธิใน 1H61 อยูท่ ี่ 3.9 พันล้ำนบำท เพิ่มขึ้น 21% จำก Non-NII ที่โตถึง 18%,ค่ำใช้จ่ำยดำเนิ นงำนที่ ลดลง 1.3% และสำรองที่ลดลง lmpact Non-NII เติบโตอย่างแข็งแกร่ งทุกรายการ Non-NII ใน 2Q61 เพิ่มขึ้น 14% YoY 2Q61 และ +18% YoY 6M61 จำกค่ำธรรมเนี ยมธุรกรรมกำร ธนำคำรหลักที่เพิ่มขึ้น +16%, ค่ำ commission จำกธุรกิจประกันเพิ่มขึ้น +25%, และกำไรจำกกำรขำย สิ นทรัพย์ที่ยดึ มำ ซึ่ งเกินพอที่จะชดเชยรำยได้จำกค่ำนำยหน้ำธุรกิ จหลักทรัพย์ที่ลดลง NIM ทรงตัว Yield สิ นเชื่ อ และต้นทุนทำงกำรเงินค่อนข้ำงนิ่ ง QoQ ส่งผลให้ NIM ทรงตัว QoQ อยูท่ ี่ 2.96% แต่ เพิ่มขึ้น 5bps YoY ในขณะที่สินเชื่ อขยับเพิ่มขึ้นเล็กน้อย +2% QoQ, + 2% YTD, และ +4% YoY ส่ งผล ให้ NII ขยับเพิ่มขึ้น +2% QoQ และ 5% YoY ใน 2Q61 และ 1H61 คุมค่าใช้ จ่ายดาเนินงานได้ดขี นึ้ ค่ำใช้จ่ำยในกำรดำเนิ นงำนลดลง 5% QoQ และ 4% YoY ใน 2Q61 และ ลดลง 1.3% ใน 6M61 ซึ่งเมื่อดู ไส้ในแล้วก็พบว่ำค่ำใช้จ่ำยลดลงทุกรำยกำร โดยเฉพำะอย่ำงยิง่ ต้นทุนคงที่ในส่ วนของค่ำใช้จ่ำยพนักงำน (คิดเป็ น 55% ของค่ำใช้จ่ำยในกำรดำเนิ นงำนทั้งหมด) ซึ่งลดลง 3% QoQ และ 12% YoY ใน 2Q61 และ ลดลง 8% YoY ใน 6M61 และค่ำใช้จ่ำยเกี่ยวกับระบบธนำคำร&สำขำ (คิดเป็ น 11% ของค่ำใช้จ่ำย ดำเนินงำน) -7%YoY 2Q61 และ-4% 6M61 ซึ่งกำรลดลงของค่ำใช้จ่ำยดำเนิ นงำนส่งผลให้สดั ส่ วน ต้นทุน/รำยได้ลดลงเหลือ 49% ใน 2Q61 (ลดลงจำก 53% ใน 1Q61 และ 56% ใน 2Q60) NPL และสัดส่ วน NPL coverage ทรงตัว NPL ทรงตัวหลังจำกที่ขยับเพิ่มขึ้นต่อเนื่ องมำสองไตรมำสตั้งแต่ 4Q60 ในขณะที่ ค่ำใช้จ่ำยในกำรกัน สำรองยังทรงตัว ซึ่งคิดเป็ น credit cost ที่ 80bps และสัดส่ วน NPL coverage ที่ประมำณ 127% Valuation & Action ถึงแม้วำ่ กำไรสุทธิ ใน 1H61 จะคิดเป็ น 55% ของประมำณกำรกำไรสุ ทธิ ท้ งั ปี ของเรำ แต่อตั รำภำษีจ่ำย จริ งที่จะเพิ่มขึ้นเป็ น 20% ใน 2H61 ทำให้เรำยังคงประมำณกำรกำไรปี นี้ เอำไว้เท่ำเดิม ถึงแม้เรำจะยังคง คำแนะนำถือ แต่รำคำหุ ้นที่ปรับลดลงมำแรงทำให้หุ้น TCAP ไม่แพง และทำให้เหลือ upside อีกมำกถึง รำคำเป้ำหมำยของเรำซึ่งเป็ นโอกำสให้เข้ำเก็งกำไรได้

Chalie Kueyen 66.2658.8888 Ext.8851 [email protected]

July 19, 2018

Risks กำรแข่งขันปล่อยสิ นเชื่ อ H/P และอัตรำดอกเบี้ยที่สูงขึ้นกดดัน NIM,

*The Company may be issuer of Derivative Warrants on these securities. http://research.kgi.com; Bloomberg: KGIT

Please see back page for disclaimer

1

Thailand

Thanachart Capital

Figure 1: TCAP's 2Q18 earnings review 2Q18

2Q17

Bt mn

% chg

1Q18

YoY

% chg

1H18

1H17

QoQ

% chg Earnings comments YoY

NII

7,624

7,234

5.4

7,456

2.2

15,080

14,321

Non-NII

4,598

4,019

14.4

4,422

4.0

9,021

7,661

392

350

12.2

467

(16.1)

860

540

59.1 24.9

- Gain on investment

5.3 17.7 Core banking fee +16% YoY in 2Q18

764

580

31.8

668

14.4

1,433

1,147

12,222

11,253

8.6

11,879

2.9

24,101

21,982

Operating expense

6,012

6,275

(4.2)

6,347

(5.3)

12,359

12,517

PPOP

6,210

4,978

24.7

5,532

12.3

11,742

9,465

24.1

Provisioning exp

1,448

1,369

5.8

1,431

1.1

2,879

2,221

29.6

621

196

216.1

188

230.7

808

513

57.4

MI

2,091

1,738

20.3

2,014

3.8

4,105

3,453

18.9

Net profit

2,051

1,675

22.4

1,899

8.0

3,950

3,277

20.5

EPS (Bt/sh)

1.70

1.39

22.4

1.57

8.0

3.27

2.72

20.5

Book value (Bt/sh)

47.8

44.4

179.95

167.47

Key figures & ratios Loan (Bt bn)

725

696

4.1

714

1.6

725

696

99

102

(2.7)

102

(2.6)

99

102

19.5

16.4

18.7

20.0

(2.2)

20

16

2.7

2.4

2.8

2.7

2.4

129.0

141.6

127.4

129

142

80

79

80

80

64

Asset yield (%)

4.33

4.46

4.35

4.34

4.43

Cost of fund (%)

1.87

1.89

1.89

1.88

1.86

NIM (%)

2.96

2.91

2.94

2.95

2.88

Cost-to-income ratio (%)

49.2

55.8

53.4

51.3

57.0

1.6

1.4

1.5

1.6

1.4

13.3 13.0

11.7

12.4 4.6

12.9

11.5

7.46

6.21

- Bancassurance fee Total revenue

Income tax

LDR(incl. borrowing) Gross NPLs (Bt bn) % to loans NPL coverage (%) Credit cost (bps)

ROAA (%) ROAE(%) Effective tax rate

5.44

47.9

9.6 (1.3) Opex -12% YoY in 2Q18, -8% in 6M18

Source: Company data, KGI Research

July 19, 2018

*The Company may be issuer of Derivative Warrants on these securities. http://research.kgi.com; Bloomberg: KGIT

Please see back page for disclaimer

2

Thailand

Thanachart Capital

Figure 2: Quarterly earnings performance Bt mn Income Statement (Bt mn) NII Fee income, net Non-NII Total operating income Total operating expenses PPOP Loan Loss Provision Net profit EPS(Bt) Profitability (%) Yield on earnings assets Cost of funds Net interest margin Cost-to-income ratio Effective tax rate LDR LDR(including borrowings) ROAA ROAE Asset quality Non-performing loans (Bt mn) % to loans NPL coverage Credit cost (bps) Growth (%) Fee income growth Non-NII growth Operating income growth PPOP growth Net profit growth

Mar-15A Jun-15A Sep-15A Dec-15A Mar-16A Jun-16A Sep-16A Dec-16A Mar-17A Jun-17A Sep-17A Dec-17A Mar-18A Jun-18A 6,872 1,366 3,948 10,819 5,804 5,015 1,647 1,332 1.04

6,931 1,213 4,034 10,965 5,656 5,309 3,532 1,393 1.09

6,942 1,494 3,633 10,575 5,695 4,880 1,708 1,353 1.06

6,985 1,392 3,570 10,556 5,874 4,682 1,713 1,359 1.06

6,955 1,291 3,663 10,618 5,849 4,768 1,767 1,351 1.06

7,079 1,281 3,568 10,647 5,956 4,691 1,408 1,466 1.22

7,284 1,533 3,595 10,879 5,922 4,957 1,676 1,502 1.25

7,150 1,783 4,320 11,470 6,213 5,257 1,358 1,694 1.40

7,087 1,440 3,642 10,729 6,242 4,487 852 1,602 1.33

7,234 1,334 4,019 11,253 6,275 4,978 1,369 1,675 1.39

7,510 1,449 4,211 11,721 6,046 5,675 1,696 1,788 1.48

7,340 1,667 4,737 12,077 5,480 6,596 2,319 1,935 1.60

7,456 1,706 4,422 11,879 6,347 5,532 1,431 1,899 1.57

7,624 1,572 4,598 12,222 6,012 6,210 1,448 2,051 1.70

5.0 2.7 2.7 53.6 20.4 1.0 81.8 1.1 10.49

5.0 2.5 2.7 51.6 N.A. 1.0 82.7 1.2 11.09

4.8 2.4 2.7 53.9 12.6 1.0 80.6 1.1 10.68

4.7 2.3 2.7 55.6 6.0 1.0 79.4 1.1 10.45

4.6 2.3 2.8 55.1 6.2 99 82 1.1 10.00

4.6 2.1 2.9 55.9 4.0 99 79 1.3 11.01

4.5 1.9 2.9 54.4 5.7 96 83 1.2 11.19

4.5 1.9 2.9 54.2 8.9 100 80 1.5 12.37

4.4 1.8 2.8 58.2 8.7 99 78 1.4 11.25

4.5 1.9 2.9 55.8 5.4 102 78 1.4 11.71

4.6 1.9 3.0 51.6 8.5 99 82 1.5 12.35

4.3 1.9 2.9 45.4 7.1 100 81 1.5 13.02

4.3 1.9 2.9 53.4 4.6 102 81 1.5 12.40

4.3 1.9 3.0 49.2 13.0 99 83 1.6 13.35

31,695 4.3 88 90

29,290 4.1 98 196

26,587 3.7 109 95

21,681 3.0 121 96

21,467 3.1 118 101

18,649 2.7 131 82

17,906 2.6 138 98

17,289 2.5 145 78

15,636 2.3 159 50

16,441 2.4 142 79

16,798 2.4 142 97

18,894 2.7 130 130

19,959 2.8 126 80

19,511 2.7 128 80

(12.5) 5.0 2.7 0.4 0.6

0.0 7.4 1.6 (0.3) 12.8

11.8 (2.7) (0.5) (0.4) 12.5

(23.1) (9.9) (1.5) (3.6) (0.0)

(5.5) (7.2) (1.9) (4.9) 1.4

5.6 (11.5) (2.9) (11.6) 5.3

2.6 (1.0) 2.9 1.6 11.0

28.1 21.0 8.7 12.3 24.6

11.5 (0.6) 1.0 (5.9) 18.6

4.1 12.6 5.7 6.1 14.2

(5.5) 17.1 7.7 14.5 19.0

(6.5) 9.7 5.3 25.5 14.3

18.4 21.4 10.7 23.3 18.5

17.9 14.4 8.6 24.7 22.4

n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

150.9 73.2 477.2 369.3 88.6 19.3 12.6 713.8

150.7 76.0 476.2 365.2 91.8 19.3 10.5 713.5

145.7

137.7

131.7

137.4

74.4

75.0

75.0

76.6

469.2

465.1

463.3

467.6

356.5

347.7

343.3

345.5

94.0

98.3

100.3

101.6

18.6

19.1

19.7

20.5

10.3

9.6

9.2

9.4

687.4

679.1

690.9

132.5 76.5 477.8 355.4 102.6 19.9 8.4 695.2

127.5 78.7 484.9 362.0 103.0 19.8 7.7 698.7

128.0 81.3 494.1 371.1 10.3 20.3 8.3 711.7

118.9 81.3 503.4 380.6 103.3 19.5 9.0

699.5

126.6 75.4 470.8 349.5 101.5 19.8 9.3 682.1

Loan breakdown Corp SME Retail - H/P - Mortgage - Others Others Total

712.6

Source: KGI Research

Figure 3: Peer comparison Target Price

Mkt Price Upside

Rating

Bt

Bt

BBL*

OP

220.0

KBANK*

OP

232.0

KKP*

N

KTB* SCB*

Mkt cap

Target PBV-18F 17 BV

Bt

EPS (Bt) 17

18F

19F

EPS growth (%)

PE (x)

17

(%)

Bt bn

(x)

194.0

13.4

370

1.02

210.4 17.3 19.3 21.4

199.5

16.3

477

1.44

147.2 14.3 16.5 18.9

72.0

70.5

2.1

59

1.45

48.8

6.8

7.3

7.9

N

19.0

18.1

5.0

253

0.88

21.05 1.606

1.8

2.3

N

145.0

124.0

16.9

421

1.26

107.1 12.71 12.1 13.0

(9.2)

TCAP*

N

57.50

47.5

21.1

61

1.11

48.54 5.803

6.0

6.5

16.4

2.7

TISCO*

OP

118.0

76.5

54.2

61

2.47

47.74 7.606

9.1 10.0

21.7

19.1

TMB*

U

2.30

2.40

(4.2)

105

0.95

2.27

0.2

5.6

3.4

12.6

PBV (x)

Div. yield

18F

19F

17

18F

19F

17

18F 19F

17

11.8

10.8

11.2 10.0

9.1

0.9

0.9

0.8

(14.5) 15.1

14.2

13.9 12.1 10.6

1.4

1.2

1.1

10.4

18F

ROAE (%) 17

18F

19F

3.4 3.4

8.5

10.4 10.2

2.0 2.9

10.2

12.4 12.3 14.0 14.9

Bank

0.2

0.2

3.7 3.3

7.4

8.0

(25.0) 11.3 (4.9)

9.7

9.0

1.4

1.4

1.3

7.1 7.1

14.1

27.3

11.3 10.1

8.0

0.9

0.8

0.8

3.4 3.9

8.7

9.6

7.5

9.8 10.3

9.5

1.2

1.1

1.0

4.4 4.4

12.4

11.8 10.9

8.7

8.2

8.0

7.3

1.0

0.9

0.9

4.4 4.4

11.8 11.7 11.6

10.2

10.1

8.4

7.7

1.6

1.6

1.4

6.5 7.8

18.4

20.8 19.7

12.0 11.6 10.3

1.1

1.0

0.9

2.5 3.0

11.5

10.5 10.5

9.6

Source: KGI Research

July 19, 2018

*The Company may be issuer of Derivative Warrants on these securities. http://research.kgi.com; Bloomberg: KGIT

Please see back page for disclaimer

3

Thailand

Corporate Governance

Corporate Governance Report of Thai Listed Companies Companies with Excellent CG Scoring Stock

Company name

Stock

Company name

Stock

Company name

EGCO KBANK KKP

ELECTRICITY GENERATING

KTB RATCH SCB

KRUNG THAI BANK

TISCO

TISCO FINANCIAL GROUP

Stock

Company name

Stock

Company name

Stock

Company name

ADVANC AOT AP BBL BH BIGC CK CPALL CPN DRT

ADVANCED INFO SERVICE

ERW GFPT IFEC LPN MINT PS QH ROBINS RS SAMART

THE ERAWAN GROUP

SCC SPALI STEC SVI TASCO TCAP TMB TRUE

THE SIAM CEMENT

KASIKORNBANK KIATNAKIN BANK

RATCHABURI ELECTRICITY GENERATING HOLDING THE SIAM COMMERCIAL BANK

Companies with Very Good CG Scoring

AIRPORTS OF THAILAND ASIAN PROPERTY DEVELOPMENT BANGKOK BANK BUMRUNGRAD HOSPITAL BIG C SUPERCENTER CH. KARNCHANG CP ALL CENTRAL PATTANA DIAMOND ROOFING TILES

GFPT INTER FAR EAST ENGINEERING L.P.N. DEVELOPMENT MINOR INTERNATIONAL PRUKSA REAL ESTATE QUALITY HOUSES ROBINSON DEPARTMENT STORE

SUPALAI SINO-THAI ENGINEERING AND CONSTRUCTION SVI TIPCO ASPHALT THANACHART CAPITAL TMB BANK TRUE CORPORATION

RS SAMART CORPORATION

Companies with Good CG Scoring Stock

Company name

Stock

Company name

Stock

Company name

CENTEL DCC GL GLOW

CENTRAL PLAZA HOTEL

HMPRO ILINK KTC MAJOR

HOME PRODUCT CENTER

MAKRO MODERN TRT TVO

SIAM MAKRO

THAI VEGETABLE OIL

DYNASTY CERAMIC GROUP LEASE GLOW ENERGY

INTERLINK COMMUNICATION KRUNGTHAI CARD MAJOR CINEPLEX GROUP

MODERNFORM GROUP TIRATHAI

Companies classified Not in the three highest score groups Stock

Company name

Stock

Company name

Stock

Company name

AAV ANAN BA BCH BDMS BEM BJCHI CBG

ASIA AVIATION

CHG CKP DTAC GLOBAL GPSC GUNKUL LPH MTLS

CHULARAT HOSPITAL

NOK PACE SAWAD TMT TPCH WHA WORK

NOK AIRLINES

ANANDA DEVELOPMENT BANGKOK AIRWAYS BANGKOK CHAIN HOSPITAL BANGKOK DUSIT MEDICAL SERVICES BANGKOK EXPRESSWAY AND METRO BJC HEAVY INDUSTRIES CARABAO GROUP

CK POWER TOTAL ACCESS COMMUNICATION SIAM GLOBAL HOUSE GLOBAL POWER SYNERGY GUNKUL ENGINEERING LADPRAO GENERAL HOSPITAL

PACE DEVELOPMENT CORPORATION SRISAWAD POWER 1979 THAI METAL TRADE TPC POWER HOLDING WHA CORPORATION WORKPOINT ENTERTAINMENT

MUANGTHAI LEASING

Source: www.thai-iod.com Disclaimer: The disclosure of the survey result of the Thai Institute of Directors Association ("IOD") regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an assessment of operation and is not based on inside information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date or when there is any change to the relevant information. Nevertheless, KGI Securities (Thailand) Public Company Limited (KGI) does not confirm, verify, or certify the accuracy and completeness of such survey result.

July 19, 2018

*The Company may be issuer of Derivative Warrants on these securities. http://research.kgi.com; Bloomberg: KGIT

Please see back page for disclaimer

4

Thailand

Anti-corruption Progress

Anti-corruption Progress Indicator Level 5: Extended Stock CPN

Company name CENTRAL PATTANA

Stock SCC

Company name

Stock IFEC KBANK KKP KTB MINT SCB

Company name

Stock DTAC GFPT GL GLOW GPSC HMPRO KTC LPN MAKRO MODERN NOK

Company name

Stock GUNKUL ILINK MTLS

Company name

Stock RS

Company name

Stock CPALL LPH

Company name

Stock

Company name

Stock SVI TCAP TISCO TMB

Company name

Stock PACE PS RATCH ROBINS SAMART SPALI STEC TASCO TMT TPCH WHA

Company name

Stock QH TRT TVO

Company name

THE SIAM CEMENT

Level 4: Certified Stock ADVANC BBL DCC DRT EGCO ERW

Company name ADVANCED INFO SERVICE BANGKOK BANK DYNASTY CERAMIC DIAMOND ROOFING TILES ELECTRICITY GENERATING THE ERAWAN GROUP

INTER FAR EAST ENGINEERING KASIKORNBANK KIATNAKIN BANK KRUNG THAI BANK

SVI THANACHART CAPITAL TISCO FINANCIAL GROUP TMB BANK

MINOR INTERNATIONAL THE SIAM COMMERCIAL BANK

Level 3: Established Stock AAV ANAN AP BA BDMS BIGC BJCHI CENTEL CHG CK CKP

Company name ASIA AVIATION ANANDA DEVELOPMENT ASIAN PROPERTY DEVELOPMENT BANGKOK AIRWAYS BANGKOK DUSIT MEDICAL SERVICES BIG C SUPERCENTER BJC HEAVY INDUSTRIES CENTRAL PLAZA HOTEL CHULARAT HOSPITAL CH. KARNCHANG CK POWER

TOTAL ACCESS COMMUNICATION GFPT GROUP LEASE GLOW ENERGY GLOBAL POWER SYNERGY HOME PRODUCT CENTER KRUNGTHAI CARD L.P.N. DEVELOPMENT SIAM MAKRO MODERNFORM GROUP NOK AIRLINES

PACE DEVELOPMENT CORPORATION PRUKSA REAL ESTATE RATCHABURI ELECTRICITY GENERATING HOLDING ROBINSON DEPARTMENT STORE SAMART CORPORATION SUPALAI SINO-THAI ENGINEERING AND CONSTRUCTION TIPCO ASPHALT THAI METAL TRADE TPC POWER HOLDING NOK AIRLINES

Level 2: Declared Stock AOT BH GLOBAL TRUE

Company name AIRPORTS OF THAILAND BUMRUNGRAD HOSPITAL SIAM GLOBAL HOUSE

GUNKUL ENGINEERING INTERLINK COMMUNICATION MUANGTHAI LEASING

QUALITY HOUSES TIRATHAI THAI VEGETABLE OIL

Level 1: Committed Stock CBG MAJOR

Company name CARABAO GROUP

RS

Stock Company name SAWAD SRISAWAD POWER 1979

MAJOR CINEPLEX GROUP

No progress Stock BCH BEM

Company name BANGKOK CHAIN HOSPITAL BANGKOK EXPRESSWAY AND METRO

CP ALL

Stock WORK

Company name WORKPOINT ENTERTAINMENT

LADPRAO GENERAL HOSPITAL

Source: www.cgthailand.org Disclaimer: The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by the relevant institution as disclosed by the Office of the Securities and Exchange Commission, is made in order to comply with the policy and sustainable development plan for the listed companies. The relevant institution made this assessment based on the information received from the listed company, as stipulated in the form for the assessment of Anti-corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 56-2), or other relevant documents or reports of such listed company . The assessment result is therefore made from the perspective of a third party. It is not an assessment of operation and is not based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after that date or when there is any change to the relevant information. Nevertheless, KGI Securities (Thailand) Public Company Limited (KGI) does not confirm, verify, or certify the accuracy and completeness of the assessment result.

July 19, 2018

*The Company may be issuer of Derivative Warrants on these securities. http://research.kgi.com; Bloomberg: KGIT

Please see back page for disclaimer

5

Thailand

KGI Locations

China

Contact

Shanghai Room 1507, Park Place, 1601 Nanjing West Road, Jingan District, Shanghai, PRC 200040 Room 24D1, 24/F, A Unit, Zhen Ye Building, 2014 Bao’annan Road,

Shenzhen

Shenzhen, PRC 518008

Taiwan

Taipei

700 Mingshui Road, Taipei, Taiwan Telephone 886.2.2181.8888 ‧

Hong Kong

41/F Central Plaza, 18 Harbour Road, Wanchai, Hong Kong Telephone 852.2878.6888

Thailand

Facsimile 886.2.8501.1691

Bangkok

Facsimile 852.2878.6800

8th - 11th floors, Asia Centre Building 173 South Sathorn Road, Bangkok 10120, Thailand Telephone 66.2658.8888

Singapore

Facsimile 66.2658.8014

4 Shenton Way #13-01 SGX Centre 2 Singapore 068807 Telephone 65.6202.1188 Facsimile 65.6534.4826

KGI's Ratings

Rating

Definition

Outperform (OP)

The stock's excess return over the next twelve months is ranked in the top 40% of KGI's coverage universe in the related market (e.g. Taiwan)..

Neutral (N)

The stock's excess return over the next twelve months is ranked in the range between the top 40% and the bottom 40% of KGI's coverage universe in the related market (e.g. Taiwan)

Under perform (U)

The stock's excess return over the next twelve months is ranked in the bottom 40% of KGI's coverage universe in the related market (e.g. Taiwan).

Not Rated (NR)

The stock is not rated by KGI.

Restricted (R)

KGI policy and/or applicable law regulations preclude certain types of communications, including an investment recommendation, during the course of KGI's engagement in an investment banking transaction and in certain other circumstances.

Excess return = 12M target price/current priceNote

Disclaimer

July 19, 2018

When an analyst publishes a new report on a covered stock, we rank the stock's excess return with those of other stocks in KGI's coverage universe in the related market. We will assign a rating based on its ranking. If an analyst does not publish a new report on a covered stock, its rating will not be changed automatically.

KGI Securities (Thailand) Plc. ( “The Company” ) disclaims all warranties with regards to all information contained herein. In no event shall the Company be liable for any direct, indirect or any damages whatsoever resulting from loss of income or profits, arising by utilization and reliance on the information herein. All information hereunder does not constitute a solicitation to buy or sell any securities but constitutes our sole judgment as of this date and are subject to change without notice.

*The Company may be issuer of Derivative Warrants on these securities. http://research.kgi.com; Bloomberg: KGIT

Please see back page for disclaimer

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