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KGI-investors_2012 KGI SECURITIES (THAILAND) PCL (for investors) Annual Report 2012TRANSCRIPT
Your Vision Our Mission
Unity
Professionalism
Commitment
Accomplishment
2012
AnnualReport
12 LettertoShareholders OTCDerivativesBusiness
16 FinancialHighlights EquityExchangeTradedFund
18 () KGISecurities(Thailand)History DerivativeWarrantsBusiness
20 OurAccolades RiskManagement
22 Overview Research
26 44 BusinessOverview Subsidiary
BrokerageBusiness OneAssetManagementLimited
46 FuturesBusiness ManagementDiscussion&Analysis
60 ProprietaryTradingBusiness FinancialReport
InvestmentBankingBusiness IndependentAuditor'sReport
FixedIncomeBusiness Statementsoffinancialposition
PrivateRepoBusiness StatementsofcomprehensiveIncome
66 SellingAgentofUnitTrustBusiness BoardofDirectorsandManagementTeam
68 SecuritiesBorrowingandLendingBusiness KGIHeadquartersandBranchLocations
TableOfContents
12
2555
2555
4430.22
2555 0.23
2555
2555
2554
2555
81
():
()
2555
LettertoShareholders
2555
.
2556
2556
2556
2-3
1,500
2556
0.23
11 2556
102556
2555
1.531
2555
40
LettertoShareholders
13
Mr.FoongHockMengChairman
LettertoShareholders
14
LettertoShareholders
DearShareholders,
Despitechallengingconditions,2012wasanothersuccessful
yearforKGI.Ournetprofitfor2012wasBaht443million
andEPSwasBaht0.22.KGIsboardofdirectorshas
approvedadividendofBaht0.23persharefor2012and
thedividendwillbeproposedtotheAGMofshareholders
fortheirapprovalinApril.
Globaleconomyandmarkets
Theglobal developedeconomies facedsignificant
obstaclesbutmanagedtoavoidarecession.Inparticular,
theEuropeaneconomywasnegativelyaffectedby
governmentspendingcutswhichledtomassprotests
anduncertaintyoverthefutureoftheEurocurrency.In
Asia,Chinaseconomicgrowthslowedsignificantly
followingmanyyearsof rapidexpansion. In theUS,
economicrecoverycontinuedbutataslowpaceand
leavingunemploymentatanunacceptablyhighlevel.
Thailand
Although2012wasayearofrelativelyslowanduncertain
growthinmanyotherpartsoftheWorld, inThailand,
2012wasasignificantlybetteryearthantheprevious
one.Whilst2011endedwithseverefloodinginthecentral
partsofThailand,in2012mostsectorsreturnedtonormal
andoverall,Thailandachievedastronglevelofeconomic
growth.Thisgrowthwashelpedby reconstruction
spendingandbygovernmentstimulusmeasuresandtax
incentivessuchas the firstcar tax refundswhich
helpedcarsalesriseby81%toanalltimehigh.
KGISecurities(Thailand):BusinessUnits
StockBrokingremainsacorebusinessforKGISecurities
(Thailand)butonewhichisstill intenselycompetitive.
However,despiteallof thechallenges,wemanaged
tosecureanotherprofitableyear in2012.OurEquity
Derivativesbusinessunitisaninnovativemarketleader
inThailandandcontinuedtolaunchnewproductsand
offernewinvestmentopportunitiesforallourclientslast
year.TheProprietaryTradingbusinessunitmaintained
itsprofitableperformancewithdiversified, lower-risk
strategiesexecutedbyitshighlyexperiencedteamunder
constantriskmonitoring.IntheFixedIncomebusiness
unit,anunexpected interest ratecutbytheBankof
ThailandinOctoberhelpedtogeneratetradinggains
forourwellpositionedportfolio.OurAssetManagement
business,ONEAM,alsohadapositiveyearwithassets
undermanagementbenefitingfromboththeriseinthe
Thaiequitiesmarketandvalueaddedstockandsecurity
selection.
Outlookfor2013
Overall,theoutlookforThailandandforAsiain2013
ispositive,andweareoptimisticthatthisyearwillbe
anothergoodyearforThailandandforyourCompany.
Sofarthestartto2013hasbeenencouraging,withthe
equitymarketperformingwell in the first fewweeks
of thisyear.TheSET indexhascontinued to rise
steadily,passingthe1,500markat thebeginningof
February,andmarkettradingvolumehasalsoincreased
significantly.Asexperiencedequity investorswillwell
understand,stockmarketsareinherentlyvolatileandwe
realize that theunexpectedcanhappenand indeed
eventuallymust happen, butweare prepared for
volatilityandareconstructiveabouttheoutlookfor2013.
Dividend
KGIhasastrongrecordofdividendpaymentsandwe
intend tocontinue this tradition. Inorder to reward
shareholdersfortheircontinuedsupportofthecompany,
theboardofdirectorshas resolved topropose the
paymentofadividendofBaht0.23pershare.The
dividendwillbeproposedtoshareholdersattheAnnual
GeneralMeetingon11thApril2013andifapprovedis
expectedtobepaidtoshareholderson10thMay2013.
CorporateSocialResponsibilities
KGIbelievesingivingbacktosocietyandwerecognize
theimportanceofeducationandeducationalopportunities
forthedevelopmentofyoungpeopleandThaisociety
ingeneral.In2012KGIcontinueditssupportaproject
toprovideeducationopportunities todeservingThai
universitystudents.Theprogram, forwhichKGIhas
budgetedatBaht 1.5million per year, as of 31st
December2012,theCompanyprovided40scholarships
toneedyundergraduatestudents.
LettertoShareholders
15
Employees
KGIwouldliketotakethisopportunitytothankallKGIs
employeesfor theirhardworkanddedicationto the
Mr.WeiChangFangChiefOperatingOfficer
company throughout theyear, and to thankKGIs
shareholdersfortheircontinuingsupport.
Mr.FoongHockMeng
ChairmanoftheBoard
Mr.WeiChangFang
ChiefOperatingOfficer
LettertoShareholders
16
(:)
31
(inBahtmillionsexceptpersharedata)
AsoforfortheyearendedDecember31
2555/2012 2554/2011
OperatingResults ()
(Restated)
Totalincome 1,909 2,333
Totalexpenses 1,321 1,461
Profitbeforeincometax 588 872
* Netprofit* 443 593
PerShareData
() Pervaluepershare(Baht) 1.00 1.00
() Bookvaluepershare(Baht) 2.40 2.43
()* BasicEarningpershare(Baht)* 0.22 0.30
() Dividendpershare(Baht) 0.23 0.25
Financialposition
Totalassets 12,370 7,369
Totalliabilities 7,587 2,528
Issuedandfullypaid-upcapital 1,992 1,992
Equityattributabletoholdersoftheparent 4,781 4,838
KeyFinancialRatio
(%) Returnonequity(%) 9.21% 12.17%
(%) Returnonassets(%) 4.49% 6.40%
*
Note: *Profitattributabletoequityholdersoftheparent
FinancialHighlights
FinancialHighlights
17FinancialHighlights
2555-2554ComparisonoftheCompanysfinancialpositionfor2012-2011
2555-2554ComparisonoftheCompanysoperatingresultsfor2012-2011
2555 2554()
Year2012 Year2011(Restated)
1,909
1,321
443
2,333
1,461
593
Totalincome
Totalexpenses
ProfitattributabletoEquityholdersoftheparent
2555 2554()
Year2012 Year2011(Restated)
12,370
7,587
4,781
7,369
2,528
Totalassets
Totalliabilities
Equityattributabletoholdersoftheparent
4,838
(BahtMillions)
(BahtMillions)
18
()KGISecurities(Thailand)History
()KGISecurities(Thailand)History
2529 3
2530
2531
2532 S-ONE
2536
2537
2539
2540 ()
2541
2542
()
2544 ()()
KGI
2545
2546
2548
2549
(TFEX)
2552
2553
2555 12
(MOFOutrightPD)
19()KGISecurities(Thailand)History
1986 December TheCompanybeganitssecuritiesbusinessoperations.Inthebeginning,theCompanyhadthree
licenses;securitiesbroker,securitiesdealer,andinvestmentadvisory.
1987 May TheCompanybecameamemberoftheStockExchangeofThailand.
1988 February TheCompanychangeditsnametoSecuritiesOneCompanyLimited.
1989 December TheCompanybecamealistedcompanyintheStockExchangeofThailand,knownasS-ONE.
1993 May TheCompanyregisteredasapubliccompany.
1994 June TheCompanyobtainedSecuritiesRegistrarlicense.
1996 July TheCompanyobtainedanUnderwritinglicense.
1997 September TheCompanymadeatenderoffertoacquire100%ofFirstAsiaSecuritiesPublicCompanyLimited.
1998 April KGIGroupbecamethemajorshareholderoftheCompany.
1999 February TheCompanyobtainedaSecuritiesBorrowingandLendinglicense.
July TheCompanychangeditsnametoKGISecuritiesOnePublicCompanyLimited.
2001 May TheCompanychangeditsnametoKGISecurities(Thailand)PublicCompanyLimitedandchanged
securitiescodetoKGI.
September SECgrantedanapprovaltotheCompanytoactasaFinancialAdvisor.
2002 January SECauthorizedtheCompanytoactassellingagentformutualfunds.
2003 February SECgrantedanapprovaltotheCompanytooperateanOTCderivativesbusiness.
2005 October TheCompanyobtainedalicensetoconductFuturesBrokerageBusiness.
2006 September TheCompanywasoneofthefirstthreebrokerstobeappointedasamarketmakeroftheThailand
FuturesExchangePublicCompanyLimited(TFEX).
2009 January TheCompanymoveditsHeadOfficefromUnitedCenterBuildingonSilomRoadtoAsiaCentre
BuildingonSouthSathornRoad.
June TheCompanybecamethefirstsecuritiescompanyinThailandtolaunchDerivativeWarrants
2010 September TheCompanyhassignedanagreementwithMarketforAlternativeInvestment(MAI)toproduce
securitiesanalysis.
2012 August TheCompanyistheonlysecuritiescompanyamong12b