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KGI-investors_2012 KGI SECURITIES (THAILAND) PCL (for investors) Annual Report 2012

TRANSCRIPT

  • 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