tmn141010 (1)

8/11/2019 TMN141010 (1)

1/10Please note that due to the interest of timeliness, this product was not edited.

ThanachartsMo

rningNote

THAILANDsTOP LOCAL KNOWLEDGE Friday, October 10, 2014

Current Market Net trade SET Index vs MSCI Asia x JP

Market data Close %

SET Index 1,560.6 1.1%

Turnover (Bt m) 44,703 10.0%

Mkt Cap (Bt bn) 14,197 1.1%

Stock Gainers 580 stocks

Stock Losers 244 stocks

Net trade (Bt bn) Prev. -1M YTD

Foreign +1.5 +11.5 -5.1

Retail -2.2 -2.2 -30.8

Institutes +2.7 -3.1 +30.5

Proprietary -1.9 -6.2 +5.4

450

500

550

600

650

1,0001,100

1,2001,3001,4001,5001,6001,700

Jan-13 Jul-13 Jan-14 Jul-14

(index)(index) SET index (LHS)

MSCI Asia x JP ( RHS)

TOP STORY

Siam Senses | Healthy correction

Siam Senses sees the SETs correction as healthy. While fundamentalsappear unchanged, we believe the break after the sharp, straight run-up since

early in the year provides another buying opportunity. We reaffirm our 2015

SET target of 1,750 and add more beta to our portfolio via CK at the expense

of CPALL.

Infrastructure (OW) Mass transit projects make progress P.3

Four mass transit lines are in line for cabinet approval.The bidding should be in late 2014 or early 2015.BTS could benefit via direct negotiations for the O&M contracts.Maintain Overweight with STEC and BTS our top picks.

PTTEP (BUY) 3Q14F net profit to fall 25% q-q P.4

We forecast PTTEP to post a 25% q-q drop in net profit in 3Q14 dragged by a tapering off of ASP and huge dry-well write-offs.We expect profits to stay weak as a result of falling gas prices.Consequently, we see downside to our 2014-16 earnings forecasts.

RATCH (BUY) Inks MOU with Myanmar to develop power plant P.5

RATCH signs an MOU to develop the 2.6GW coal-fired Myeik power plant.RATCH with three partners estimates the investment at US$5.3bn.According to the news, COD is expected in 2020.Myeik would add value; Hongsa would boost short-term earnings.

Market Valuation

Market data 2014F 2015F 2016F

PE (x) 16.2 14.0 12.3

Norm EPS growth (%) 7.0 14.6 13.0

EV/EBITDA (x) 10.3 9.1 8.3

P/BV (x) 2.3 2.1 1.9

Yield (%) 3.0 3.4 4.0

ROE (%) 15.3 16.3 16.9

Net D/E (x) 0.7 0.6 0.6Major Indices

Close %

Dow Jones 16,659 -335.0 -2.0%

NASDAQ 4,378 -90.3 -2.0%

FTSE 6,432 -50.4 -0.8%

SHCOMP (China) 2,389 6.6 0.3%

Hang Seng 23,535 271.2 1.2%

FTSSI (Singapore) 3,259 32.5 1.0%

KOSPI 1,965 0.0 0.0%

JCI (Indonesia) 4,994 35.4 0.7%

MSCI Asia 124 0.3 0.2%

MSCI Asia x JP 565 5.6 1.0%Currency /Bond data

Close %

Dollar index 85.5 0.2 0.3%

Bt/US$ 32.4 -0.1 -0.4%

100JPY/US$ 107.8 -0.2 -0.2%

10Y bond yield (TH) 3.4 0.0 -0.9%

10Y treasury yield (US) 2.3 0.0 -0.3%

Commodities

Close %

NYMEX (US$/bbl) 85.8 -1.5 -1.8%

BRENT (ICE) (US$/bbl) 90.1 -1.3 -1.5%

DUBAI (US$/bbl) 90.0 0.1 0.1%Baltic Dry Index 974.0 -17.0 -1.7%

GRM (US$/bbl) 7.4 -0.5 -6.5%

Gold (US$/oz) 1,225.3 19.3 1.6%

Coal (BJI)* 65.4 0.3 0.4%

HDPE-Naphtha 761.5 15.5 2.1%

Ethylene-Naphtha 651.5 -2.0 -0.3%

PX-Naphtha 384.5 -42.5 -10.0%

BZ-Naphtha 374.0 8.0 2.2%

Steel-HRC 527.5 -10.0 -1.9%

Rubber SICOM TSR20 1,444 13.0 0.9%

Rubber TOCOM 1,689 19.2 1.1%Raw Sugar** 16.7 -0.2 -1.3%

White Sugar** 19.3 -0.2 -1.0%

(US$/tonne)* (US$ cent/lb)**

Source: Thanachart , Bloomberg, Datastream, BanpuNote: * Weekly data

8/11/2019 TMN141010 (1)

2/10

This report is prepared by Thanachart Securities. Please contact our salesperson for authorisation. Please see the important notice on the back page

Thanachart

Securities

Than

achartSecurit

ies

THAILAND STRATEGY NOTE 10 OCTOBER 2014

Siam Senses

PIMPAKA NICHGAROON, CFA

Head of Research662 617 4900

[email protected]

Healthy correction

Siam Sensessees the SETs correction as healthy. While fundamentals

appear unchanged, we believe the break after the sharp, straight run-up

since early in the year provides another buying opportunity. We reaffirm

our 2015 SET target of 1,750 and add more beta to our portfolio via CK

at the expense of CPALL.

Market correction get it over with

The SET has finally corrected and we see this is as healthy for 3

reasons: 1) The fundamental stories of the Thai market havent

changed, in our view. 2) We believe the correction was overdue after

the sharp, straight run-up since the start of the year, thereby eliminating

concerns that a correction lies ahead. 3) We think many foreigninvestors have left the market given the political turmoil and market

valuations they dont see as being at bargain levels. To us, this is

another buying opportunity. To gauge the extent of the market

correction, our technical analysis team sees downside to around 1,500.

We stick to our 1,750 SET target in 2015

With no change to Thailands fundamental stories, we stick to our 2015

SET target of 1,750. We argue this is not excessive. Assuming we are

in 2015 and the SET at that stage trades at similar current-year (15.6x)

and one-year forward (13.7x) PEs as today, the SET would be at 1,750.

We expect the SET next year to be able to trade on similar PE multiples

to this years as we see rising earnings growth. We forecast marketearnings growth to recover from 7% in 2014 to 14% in 2015-16. We

maintain our sector preferences for banking, infrastructure, tourism,

renewable energy and healthcare.

Another sign of a new political era

The coup-makers showed their intent right from the start to curb

populist policies not only in the current governments term but also in

the future. We have therefore been expecting new laws and regulations

to be enforced before a new election. If there are effective curbs upon

populist policies, we see the pro-Thaksin Shinawatra Pheu Thai Partys

populist charm being checked at the same level as other parties. We

have seen the first glimpses of populist curbs: 1) the Fiscal Policy Office(FPO) is drafting a new state monetary and fiscal law that should also

have clauses to limit populist and off-budget spending, and 2) the Bank

of Thailand is being given authority to supervise state banks, which

were used in the past as government off-budget financiers.

We add even more beta

With the market correction we decide to add more beta to our portfolio.

We add Ch. Karnchang (CK TB) at the expense of CP All (CPALL TB).

Infrastructure is our favorite sector and we want more exposure in our

portfolio. We expect CK, like another of our top picks Sino-Thai

Engineering (STEC TB) to win more government contracts in the new

infrastructure cycle, which we forecast to be a sustained multi-year one.

We reaffirm our BUY rating on CPALL, but it is a low-beta play and we

expect consumption to recover slower than government spending.

Top Picks

EPS growth PE Yield

14F 15F 14F 15F 15F

(%) (%) (x) (x) (%)

AOT 21.6 20.4 26.4 21.9 1.8

BBL 3.5 14.3 10.1 8.8 3.8

BGH 19.6 17.1 38.3 32.7 1.5

BTS 13.4 1.7 53.8 52.9 6.7

CENTEL (3.7) 41.2 40.8 28.9 1.4

CK * 42.6 8.8 35.4 32.5 1.5

EA 562.6 92.9 52.4 27.2 1.1

KBANK 10.6 22.8 12.0 9.8 2.0

KBS (16.1) 19.6 12.1 10.1 4.9

STEC 11.5 7.6 24.9 23.2 1.7

Stock taken out

CPALL 30.5 32.6 27.6 20.8 2.4

Source: Thanachart estimatesNote: * New additionFor BTS, financial year ends in March.

Based on 9 October 2014 closing prices

Foreigners Still Havent Come Back

(100)(50)

050

100150200250

Jan-09

Jul-09

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(Bt bn)

Source: SET

Not Too High PEs At 1,750 Target

16.0 15.613.8 13.7

57

911131517

19

1,550 SET current 1,750 SET target2015

(x) Current year PE 1-yr forward PE

Source: Thanachart estimates

8/11/2019 TMN141010 (1)

3/10

THAILANDs TOP LOCAL KNOWLEDGE Friday, October 10, 2014

THANACHARTSECURITIES 3

Infrastructure Sector Overweight News Update

Saksid Phadthananarak | Email: [email protected]

Mass transit projects make progress

Four mass transit lines are in line for cabinet approval.

The bidding should be in late 2014 or early 2015.

BTS could benefit via direct negotiations for the O&M contracts.

Maintain Overweight with STEC and BTS our top picks.

Deputy permanent secretary for transport Soithip Trisuddhi disclosed details at a meeting to monitor the

progress of mass transit projects as follows:

1) The plans for the Yellow Line (Bt55.9bn), Pink Line (Bt58.2bn) and Orange Line (Bt101bn) projects

should be submitted to receive cabinet approval by end 2014.

2) The Transport Ministry also plans to ask for approval from the cabinet to launch the bidding for the

construction of the Airport Rail Link extension (Bt31.1bn) project by end 2014.

3) For the Green Line extension project, the Transport Ministrys policy is to let the State Railway of

Thailand (SRT) invest in civil construction work. For the O&M contract, the ministry will let the SRT

negotiate with BTS to run the project as this method offers more benefits for passengers due to: 1)

lower investment costs from sharing the existing depot, 2) lower operating costs due to the same

operator, 3) and more comfort for passengers as they dont need to change trains.

Progress with the mass transit projects is good news for stocks in the infrastructure sector. There are

two direct players: contractors and project operators.

Contractors should be the primary beneficiary from the governments upcoming massive

construction work as there are only a few qualified contractors able to bid for the governmentslarge-scale projects. We reiterate our BUY calls on STEC with a TP of Bt30.0/share and CK with a

TP of Bt31.0/share.

Project operators should get later but safer benefits with recurring income. We like BTS. TheTransport Ministrys policy to directly negotiate with BTS should also be good news for the

company. We already assume BTS wins the O&M contracts for the South and North Green Line

extensions. We reiterate our BUY call on BTS with a TP of Bt11.5.

8/11/2019 TMN141010 (1)

4/10



PTT Exploration &Production Pcl (PTTEP TB)- BUY Earnings Preview

Supanna Suwankird | Email: [email protected]

3Q14F net profit to fall 25% q-q

We forecast PTTEP to post a 25% q-q drop in net profit in 3Q14

dragged by a tapering off of ASP and huge dry-well write-offs.

We expect profits to stay weak as a result of falling gas prices.

Consequently, we see downside to our 2014-16 earnings forecasts.

We project PTTEP to post net earnings of Bt13,620m in 3Q14 (versusBt18.2bn in 2Q14 and Bt17.8bn in 3Q13). If we strip out our forex loss

estimate, we project its normalized earnings to check in at Bt13,200m,

implying a decline of 15% q-q and 31% y-y.

The weak performance should mainly be due to a: 1) a 3-4% fall in ASPcaused by a sharp drop in oil prices, and 2) huge expenses of a combined

US$100m from dry well write-offs (around US$40m from Kenya and US$70m

from Australia-based Maple East)..

Overall volume should be up by 2% mainly due to the debut operation of theMyanmar-based Zawtika gas field but we dont see this helping the bottom

line. Note that there were annual maintenance shutdowns of around seven

days at Bongkot South, Contract-4 and VN 16-1, and 21 days at Montara.

PTTEP may have made a gain from oil price hedging of US$25m. But thebenefit looks set to be offset by forex losses of around US$25m-30m, mainly

from A$500m in principal debt. Despite it no longer operating the Kai Kos

Dehseh (KKD) oil sands project after the assets were swapped with Statoil,

PTTEP is still managing the A$ debt.

Looking forward to 4Q14, there should be 2% q-q volume growth as Zawtikashould have run for a full quarter while there will likely be some shutdowns at

some other fields. However, we expect ASP to drop further from 3Q14 due to

gas prices being adjusted down at most key fields while we dont expect oil

prices to stay in the doldrums until year end. There should also be some dry

well write-off expenses in 4Q14. We believe our earnings forecasts for 2014-

16 look on the high side.

Key Valuations

Y/E Dec (Bt m) 2013A 2014F 2015F 2016F

Revenue 224,973 267,305 280,973 270,812

Net profit 56,155 66,406 71,472 71,618

Norm net profit 59,238 67,136 71,472 71,618

Norm EPS (Bt) 14.9 16.9 18.0 18.0

Norm EPS gr (%) (16.9) 13.3 6.5 0.2

Norm PE (x) 10.2 9.0 8.4 8.4

EV/EBITDA (x) 4.6 3.9 3.7 3.9

P/BV (x) 1.6 1.4 1.3 1.2

Div. yield (%) 3.9 4.4 4.7 4.7

ROE (%) 16.6 16.6 16.0 14.6

Net D/E (%) 14.2 14.5 12.6 15.9


Stock Data

Closing price (Bt) 152.00

Target price (Bt) 200.00

Market cap (US$ m) 21,329

Avg daily turnover (US$ m) 25.3

12M H/L price (Bt) 174.00/148.00

Price Performance

(20)

(10)

0

10

20

130

140

150

160

170

180

Oct-13 Jan-14 Apr-14 Jul -14 Oc t-14

(%)(Bt) PTT Exploration & Production

Rel to SET Index

Source: Bloomberg

8/11/2019 TMN141010 (1)

5/10



Ratchaburi Electricity Generating Holding Pcl (RATCH TB) - BUY News Update

Supanna Suwankird | Email: [email protected]

Inks MOU with Myanmar to develop power plant

RATCH signs an MOU to develop the 2.6GW Myeik power plant.

RATCH with three partners estimates the investment at US$5.3bn.

According to the news, COD is expected in 2020.

Myeik would add value; Hongsa would boost short-term earnings.

According to the Thai press, RATCH has signed an MOU with theDepartment of Hydropower Planning of Myanmar to develop a combined

2.6GW coal-fired power project in Myeik. The plant would use clean coal

technology with an investment cost of US$5.3bn (or US$2m/MW). The

project is targeted for operation in 2020. RATCH has joined hands with three

other partners: Blue Energy and Environment, Vantage Co. Ltd (Myanmar),and Kyaw Phyo Company Limited (Myanmar). The project has gone through

public hearings with residents reportedly receptive.

This is good news in our view.

Assuming RATCH takes a 25% stake in the project, the investment wouldadd 10% to total capacity in hand (or 12% of total current operational

capacity)

Note that the project is to reportedly sell 600MW of capacity to Myanmar withthe remaining 2GW to Thailand. This is under the Power Imports from

Neighboring Countries scheme which is another type of IPP scheme.

We see the scheme as more positive than the IPP one in the sense that: 1)the project can go to tariff negotiation with EGAT when it is ready while for an

IPP this happens when the Thai government announces tendered capacity,

and 2) the project may obtain higher return due to no competition (only

convincing that the proposed tariff is lower than EGATs investment by itself)

as opposed to the fierce competition in the IPP bid case.

We have yet to incorporate the project into our valuation for RATCH thoughwe roughly estimate it would add Bt8.7/RATCH share assuming it

commences operation in 2020.

RATCH remains our top pick in the conventional big cap sub-sector giventhat the company offers a short-term catalyst from strong earnings in 2015-

16F as its 40%-owned Hongsa Power has started up; and more capacity

expansion potential in Myanmar, apart from the Myeik project.

Key valuation

Y/E Dec (Bt m) 2013 2014F 2015F 2016F

Revenue 50,612 49,302 48,422 47,835

Net profit 6,187 7,055 6,969 8,108

Norm net profit 5,393 5,990 6,969 8,108

Norm EPS (Bt) 3.7 4.1 4.8 5.6

Norm EPS gr (%) 2.6 11.1 16.3 16.3

Norm PE (x) 16.5 14.8 12.7 11.0

EV/EBITDA (x) 11.2 13.7 16.0 17.2

P/BV (x) 1.6 1.4 1.3 1.2

Div. yield (%) 3.7 4.4 4.3 5.0

ROE (%) 10.0 10.0 10.5 11.6

Net D/E (%) 27.1 23.9 31.1 26.5


Stock Data

Closing price (Bt) 61.25

Target price (Bt) 67.00

Market cap (US$ m) 2,739

Avg daily turnover (US$ m) 1.4

12M H/L price (Bt) 60.25/46.25

Price Performance

(4)(2)0246810

12

40

45

50

55

60

65

Oct-13 Jan-14 Apr-14 Jul-14 Oct-14

(%)(Bt) Ratchaburi Electricity

Rel to SET Index

Source: Bloomberg

8/11/2019 TMN141010 (1)

6/10



NEWS CLIPPING

Impeach Yingluck, NACC says : The National Anti-Corruption Commission (NACC) has decided to

petition the National Legislative Assembly (NLA) to impeach former prime minister Yingluck Shinawatra,

who is accused of negligence for failing to stop corruption and losses in her government's rice-pledging

scheme.

Bangkok Post

Ministry pins hopes on stimulus : The Finance Ministry forecasts economic growth will come in at

1.7% this year but is pinning its hopes on stimulus measures bumping up the figure to 2%.

Bangkok Post

Pridiyathorn says rubber help coming : Deputy Prime Minister MR Pridiyathorn Devakula says he has

prepared measures to tackle tumbling rubber prices but will have to consult the prime minister before

revealing them.

Bangkok Post

Inheritance tax a certainty: Ministry : Real estate tax, rise in vat, keeping 20% corporate income tax

among other moves considered. The Finance Ministry yesterday confirmed that this government would

launch a tax on inheritances but is still pondering a real-estate tax, raising the value-added tax next year

and keeping the corporate income tax at 20 per cent

The Nation

Foreigners urged to capitalise on Thai turnaround : Bank of Thailand Governor Prasarn

Trairatvorakul assured foreign investors of the financial authorities' readiness to cope with market

volatility, showing his confidence that the economy would show higher growth rate on the back of greater

political stability.

The Nation

Few SMEs have capacity for business abroad : Survey finds only 0.4% could venture across borders

as AEC approaches. Most Thai small and medium-sized enterprises have the competency to do

business in their local markets, but fewer than 1 per cent have ability to do business outside the country,

according to a survey by the University of the Thai Chamber of Commerce(UTCC).

The Nation

Shippers urge consistent rice stock sales : The government is being urged to continue selling its rice

stocks, but the amount to be put up for auction should be limited to mute any effect on the rice prices for

the coming harvest.

Bangkok Post

GPF hopes to raise ceiling for investment in foreign assets : The Government Pension Fund (GPF)

is prepared to take more risks to gain higher returns by gradually increasing its investment ceiling for

foreign assets, especially equities, from 25 per cent to 35 per cent.

The Nation

Channel 3 unsure of simulcast rules : Problems may arise from unclear regulations after the National

Broadcasting and Telecommunications Commission (NBTC) approves Channel 3's simulcast proposal.

Bangkok Post

Panel to weigh simulcast plan : Hopes high of resolving row over channel 3 ban from cable/satellite.

The national broadcasting committee will consider BEC-Multimedia's new TV programming today, which

will feature a plan to use its digital platform to simulcast the analog programmes of its affiliate Bangkok

Entertainment Co's Channel 3.

The Nation

Thai Solar Energy firm on IPO, listing amid shareholders' dispute : Thai Solar Energy Plc insists it

will go ahead with its initial public offering and listing on the Market for Alternative Investment by the end

of this month as planned, despite the legal dispute between its major shareholder Catherine Malinont

and former shareholders.

The Nation

Unilever Thailand budgets Bt8 bn for building expansion over 3 years : Unilever Thailand has

earmarked Bt8 billion over three years to expand its infrastructure, including a new headquarters,

warehouse and cold-storage facility.

The Nation

8/11/2019 TMN141010 (1)

7/10



Market data Close %

SET Index 1,560.6 17.2 1.1%

SET50 Index 1,041.7 12.5 1.2%

SET100 Index 2,307.4 28.1 1.2%

MAI Index 672.7 7.7 1.2%

Economic data Current -1M -3M

Saving Rate (%) 0.50 0.50 0.50

Fixed Deposit - 3M (%) 1.13 1.13 1.13

Fixed Deposit - 1Y (%) 1.75 1.75 1.75

Govt Bond Yield 1Y (%) 2.11 2.11 2.13

Govt Bond Yield 10Y (%) 3.38 3.57 3.68

Treasury Yield 10Y (%) 2.31 2.61 2.53

Policy Rate (%) 2.00 2.00 2.00

VIX Index 18.76 13.31 11.00

TED Spread (%) 0.22 0.22 0.22

Source: Bloomberg, Datastream, Thai BMA

SET Forward PE Band

0

500

1,000

1,500

2,000

2,500

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014F

2016F

(index)

7x

10x

13x

17x

21x25x

SET PE Discount to MSCI Asia x JP

(8)

(6)

(4)

(2)

0

2

4

6

8

10

Jan-03 Sep-06 May-10 Jan-14

(x)

+2 STD = 5.9x

+1 STD = 3x

Average = 0.1x

-1 STD = -2.8x

-2 STD = -5.7x

Source: Bloomberg

PRICE CHANGE - MOST ACTIVE

Change 1 Day (%) Change 1 Week (%)

(2) 0 2 4 6

PTTEP

AOT

BBL

SIRI

PTT

KTB

KBANK

ADVANC

BTS

TRUE

(10) (5) 0 5 10

AOT

BBL

TTA

TRUE

KTB

KBANK

ADVANC

CPALL

PTT

BTS

Change 1Month (%) Change Year-To-Date (%)

(15) (10) (5) 0 5 10

TTA

BBL

JAS

TRUE

ITD

KBANK

KTB

INTUCH

PTT

ADVANC

(20) 0 20 40 60 80

JAS

INTUCH

BBL

ADVANC

SCB

PTT

AOT

KTB

KBANK

TRUE

SECTOR CHANGE


(1) 0 1 2 3

AUTO

ETRON

FOOD

PETRO

CONMAT

TRANS

BANK

ENERG

SET

COMM

MEDIA

HELTH

PROP

ICT

(2) (1) 0 1 2

TRANS

CONMAT

ETRON

BANK

PETRO

COMM

HELTH

SET

MEDIA

ENERG

PROP

FOOD

AUTO

ICT

Change 1 Month (%) Change Year-To-Date (%)

(10) (5) 0 5

PETRO

COMM

AUTO

BANK

CONMAT

TRANS

ETRON

SET

HELTH

ENERG

PROP

FOOD

ICT

MEDIA

(20) 0 20 40 60

PETRO

MEDIA

COMM

ENERG

CONMAT

FOOD

ICT

AUTO

SET

ETRON

TRANS

BANK

PROP

HELTH

Source: Bloomberg

8/11/2019 TMN141010 (1)

8/10



REGIONAL MARKET PERFORMANCE


(3) (2) (1) 0 1 2

S&P500

Nasdaq

Dow Jones

Nikkei

S.Korea

Taiwan

Philippines

China

Malaysia

Indonesia

MSCI Asia x J P

Singapore

Thailand

Hang Seng

India

(2) (1) 0 1 2 3

S.Korea

Nasdaq

Nikkei

S&P500

Philippines

Malaysia

Dow Jones

Thailand

Singapore

Indonesia

Taiwan

India

MSCI Asia x J P

China

Hang Seng

Change 1 Month (%) Change Year-To-Date (%)

(6 ) (4 ) (2 ) 0 2 4

MSCI Asia x JP

Hang Seng

Nasdaq

Taiwan

S.Korea

S&P500

Indonesia

Dow Jones

Singapore

Malaysia

Nikkei

India

Thailand

Philippines

China

(1 0) 0 10 20 30

Nikkei

S.Korea

Malaysia

Dow Jones

Hang Se ng

MSCI Asia x JP

Singapore

Taiwan

S&P500

Nasdaq

China

Indonesia

Thailand

Philippines

India

Source: Bloomberg

REGIONAL FUND FLOWS

Change 1 Day (-1D)

45

26

0 00

0

(20)(30)

(20)

(10)

0

10

2030

40

50

Thailand As ia-6 India Phil ip. Korea Taiwan Indonesia

(US$ m)

Change 1 Week (-1W)

88

(41)(187) (264)

(620)

(1,050)

(2,074)(2,500)

(2,000)

(1,500)

(1,000)

(500)

0

500

India Thailan d Phil ip. Indone sia Taiwan Kor ea Asia-6

(US$ m)

Change 1 Month (-1M)

992615

(33)

(944)

(1,496)

(2,413)

(3,279)(3,500)(3,000)(2,500)(2,000)(1,500)(1,000)

(500)0

5001,000

1,500

India Thailand Philip. Indonesia Korea Taiwan Asia-6

(US$ m)

Change Year-To-Date (YTD)

34,721

13,902

9,4386,410

3,9641,136

(129)(5,000)

0

5,000

10,000

15,000

20,000

25,000

30,00035,000

40,000

Asia-6 India Taiwan Korea Indonesia Phil ip. Thailan d

(US$ m)

Source: Bloomberg

8/11/2019 TMN141010 (1)

9/10



General Disclaimers And Disclosures:

This report is prepared and issued by Thanachart Securities Public Company Limited (TNS) as a resource only for clients of TNS,

Thanachart Capital Public Company Limited (TCAP) and its group companies. Copyright Thanachart Securities Public Company

Limited. All rights reserved. The report may not be reproduced in whole or in part or delivered to other persons without our written

consent.

This report is prepared by analysts who are employed by the research department of TNS. While the information is from sources

believed to be reliable, neither the information nor the forecasts shall be taken as a representation or warranty for which TNS or

TCAP or its group companies or any of their employees incur any responsibility. This report is provided to you for informational

purposes only and it is not, and is not to be construed as, an offer or an invitation to make an offer to sell or buy any securities.

Neither TNS, TCAP nor its group companies accept any liability whatsoever for any direct or consequential loss arising from any use

of this report or its contents.

The information and opinions contained herein have been compiled or arrived at from sources believed reliable. However, TNS,

TCAP and its group companies make no representation or warranty, express or implied, as to their accuracy or completeness.

Expressions of opinion herein are subject to change without notice. The use of any information, forecasts and opinions contained in

this report shall be at the sole discretion and risk of the user.

TNS, TCAP and its group companies perform and seek to perform business with companies covered in this report. TNS, TCAP, its

group companies, their employees and directors may have positions and financial interest in securities mentioned in this report. TNS,

TCAP or its group companies may from time to time perform investment banking or other services for, or solicit investment banking or

other business from, any entity mentioned in this report. Therefore, investors should be aware of conflict of interest that may affect the

objectivity of this report.

8/11/2019 TMN141010 (1)

10/10


THANACHART SECURITIES 10

Recommendation Structure:

Recommendations are based on absolute upside or downside, which is the difference between the target price and the current

market price. If the upside is 10% or more, the recommendation is BUY. If the downside is 10% or more, the recommendation is

SELL. For stocks where the upside or downside is less than 10%, the recommendation is HOLD. Unless otherwise specified, these

recommendations are set with a 12-month horizon. Thus, it is possible that future price volatility may cause a temporary mismatch

between upside/downside for a stock based on the market price and the formal recommendation.

For sectors, we look at two areas, ie, the sector outlook and the sector weighting. For the sector outlook, an arrow pointing up, or the

word Positive, is used when we see the industry trend improving. An arrow pointing down, or the word Negative, is used when we

see the industry trend deteriorating. A double-tipped horizontal arrow, or the word Unchanged, is used when the industry trend does

not look as if it will alter. The industry trend view is our top-down perspective on the industry rather than a bottom-up interpretation

from the stocks we cover. An Overweight sector weighting is used when we have BUYs on majority of the stocks under our

coverage by market cap. Underweight is used when we have SELLs on majority of the stocks we cover by market cap. Neutral is

used when there are relatively equal weightings of BUYs and SELLs.

Thanachart Securities Pcl.

Research Team

28 Floor, Siam Tower Unit A1

989 Rama 1, Pathumwan Road, Bangkok 10330

Tel: 662 - 617 4900

Pimpaka Nichgaroon, CFA

Head of ResearchEconomics & Strategy

[email protected]

Supanna Suwankird

Energy, Utilities

[email protected]

Siriporn Arunothai

Ad Hoc Research, Healthcare

[email protected]

Sarachada Sornsong

Banks, Telecom

[email protected]

Saksid Phadthananarak

Construction, Transportation

[email protected]

Noppadol Pririyawut

Senior Technical Analyst

[email protected]

Phannarai Tiyapittayarut

Property, Retail

[email protected]

Kalvalee Thongsomaung

Food, Media, Hotel

[email protected]

Adisak Phupiphathirungul, CFA

Retail Market Strategy

[email protected]

tmn141010 (1)

Documents