Company Update KBANK KSS by alicejenny

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									Company Update | KBANK
 January 10, 2012




Kasikornbank
Weak 4Q11 performance ahead                                                                                                  Stock Rating                                                                                        BUY
                                                                                                                             Previous Rating                                                                                             BUY
                                                                                                                             Fair Value                                                                             Bt142.00
The bank’s 4Q11 performance will likely be weak due to higher loan loss
                                                                                                                             Current Price                                                                                   Bt116.50
provisions set aside and higher operating expense. Recent widespread
                                                                                                                             Upside/(Downside)                                                                                21.90%
flooding may result in a minor rise in bad debt to just 0.5% of total loans.
                                                                                                                             Consensus (median)                                                                              Bt158.91
Although the share price may suffer due to expected weak 4Q11 earnings and
                                                                                                                             Sector                                                                                          Banking
higher bad debt, fundamentals remain sound and 2012 earnings should grow
                                                                                                                             Sector Rating                                                                              NEUTRAL
strongly by roughly 24% YoY. As such, we maintain our “Buy” rating. We have
revised down our fair value from Bt151 to Bt142 as we lower our prospective                                                  Financial Summary
P/BV from 2.0x to of 1.9x and 2012 lower our earnings forecast.                                                              YE Dec (Bt mn)                                       2009                2010           2011E            2012E
                                                                                                                             Net profit                                         14,732              20,047           26,535           33,055
Bank expects 2012 loan growth of 9-11% YoY.                                                                                  Net profit growth (%)                                (3.9)               36.1             32.4             24.6
                                                                                                                             EPS (Bt)                                               6.2                8.4             11.1             13.8
Based on information obtained from a company visit last Friday, the bank expects                                             EPS growth (%)                                       (3.9)               36.1             32.4             24.6
GDP to contract by 3.3% YoY in 4Q11 due to the widespread flooding. It also revised                                          BV (Bt)                                              50.1                56.4             63.9             74.7
down its 2011 GDP growth forecast from 1.7% to 1.5% YoY. The bank expects GDP                                                DPS (Bt)                                               2.5                2.5              3.1              3.9
                                                                                                                             P/E (x)                                              13.8                15.0             11.0              8.4
to grow by 3.5-4.8% YoY in 2012. The bank said loan growth would be 12% YoY in
                                                                                                                             P/BV (x)                                               1.7                2.2              1.9              1.6
2011, NIM 3.4-3.6%, and the cost to income ratio 46-48%. Loan loss provisions in                                             Yield (%)                                              2.9                2.0              2.5              3.3
4Q11 will also increase from a normal Bt1.6-1.8bn/quarter to Bt2.5bn due to a rise in                                        ROE (%)                                              12.6                15.7             18.4             19.9
bad debt from the flooding. The bank announced a loan growth target of 9-11% YoY
for 2012, NIM of 3.4-3.5%, net fee income growth above 18% YoY, loan loss
                                                                                                                             Key Data
                                                                                                                             Shares in Issue (mn)                                                                           2,393.26
provisions of Bt1.7-1.9bn/quarter, and an NPL ratio target below 2.7%.                                                       Market Cap. (Bt mn)                                                                         275,224.92
                                                                                                                             12-mth High/Low (Bt)                                                                       144.00/99.75
4Q11 performance to be weak.                                                                                                 Avg. Daily Turnover (Bt mn)                                                                    1,103.71
                                                                                                                             Foreign Limit/Actual (%)                                                                    48.98/48.98
We expect a weak 4Q11 net profit of Bt5.34bn, down 31% QoQ on the assumption of
                                                                                                                             Free Float (%)                                                                                    86.20
i) higher loan loss provisions of Bt2.5bn, an increase of 43%; ii) a decline in NIM to                                       NVDR (%)                                                                                          26.18
3.5% from 3.65% in Q3; iii) lower net fee income; and iv) higher operating expense                                           Beta                                                                                               1.17
due to a seasonal effect and flooding. On a YoY basis, although we expect net
interest income to rise 19%, net profit will likely rise by just 1% owing to higher loan
                                                                                                                             P/E Band
                                                                                                                              Price (Bt)                                                                                                   P/E(x)
loss provisions and operating expense.                                                                                       215
                                                                                                                             200
                                                                                                                             185                                                                                                               13

Slower loan growth in 4Q11 expected.                                                                                         170
                                                                                                                             155
                                                                                                                                                                                                                                               12
                                                                                                                                                                                                                                               11

Loan growth in Q4 will likely slow QoQ as customers reduce spending due to the                                               140                                                                                                               10
                                                                                                                                                                                                                                                 9
                                                                                                                             125
effect of the flooding. We expect loan growth of just 0.6% QoQ compared to +2.7% in                                          110
                                                                                                                              95
Q3, which would bring 2011 growth to 12% YoY. The bank set a 2012 loan growth                                                 80

target of 9-11% (based on GDP growth of 4.5%), consisting of i) corporate loan                                                65
                                                                                                                              50

growth of 8-10% YoY, driven by high capacity utilization industries such as utilities,                                        35
                                                                                                                              20
petroleum and petrochemical, auto parts, and loans related to infrastructure projects;                                        Dec-03       Dec-04       Dec-05   Dec-06         Dec-07         Dec-08      Dec-09   Dec-10   Dec-11 E Dec-12 E


ii) SME loan growth of 10-12% on demand for domestic consumption and
international trade, such as chemicals and construction materials; and iii) retail loan                                      AYS Stock Monitor
growth of 12-15% driven by mortgage loans, K-Express cash, and credit cards.                                                   KASIKORNBANK [KBANK]                                                     Stock Price Currency: Thai Baht
                                                                                                                               180                                                                                                         1400
                                                                                                                                                                                                   B                   B
                                                                                                                                                                                         B                                   B       B
                                                                                                                                                                            B
                                                                                                                                                                                                  15 2                13 6   15 1          1200
Maintain 2011 net profit forecast.                                                                                             150
                                                                                                                                                                    B
                                                                                                                                                                  13 4
                                                                                                                                                                            13 5
                                                                                                                                                                                        15 0                                        14 2

                                                                                                                                                                                                                                           1000
We are maintaining our 2011 net profit forecast of Bt26.5bn, up 32% YoY, based on                                                                   B     B
                                                                                                                                    B      B                                                                                               800
                                                                                                                                                           B
the following assumptions: i) loan growth of 12% YoY, net fee income growth of 13%                                             120                    B
                                                                                                                                                10 3 10 3
                                                                                                                                                          10 3
                                                                                                                                 10 3 10 3 10 3                                        13 0         13 1                                   600
YoY, and higher premiums written of 25% YoY. We also revise up our 2012 loan                                                                                          117
                                                                                                                                                                                12 0
                                                                                                                                                                                                                       117   12 4
                                                                                                                                                                                                                                    115
                                                                                                                                                                                                                                           400
                                                                                                                                90
growth target from 7% YoY to 9% on the expectation of higher demand relating to                                                                 98               94
                                                                                                                                                                                                                                           200
                                                                                                                                     84                 92 92
flood reconstruction and infrastructure projects. Despite our loan growth target                                                60
                                                                                                                                               80
                                                                                                                                                                                                                                           0
upgrade, we are lowering our 2012 net profit forecast by 2% to Bt33bn, or a rise of                                                  J F M A M J J A S O N D J F M A M J J A S O N D J
                                                                                                                                     2010                                                2011

24.6% YoY as i) we revise down our NIM assumption by 10 bps to 3.44% as the                                                             Fair Value                                            Clo sing P rice o n Repo rt Date      T = Trading
                                                                                                                                                                                                                                    B = B uy
                                                                                                                                        KB A NK P rice (LHS)                                  SET Index (RHS)
recent flooding will likely cause a higher-than-expected level of NPLs, and due to the                                             Num ber of Reports = 13                                       Rating: BUY
                                                                                                                                                                                                                                    S = Sell
                                                                                                                                                                                                                                    H = Ho ld

bank’s financial aid program, which entails allowing customers to delay loan
repayments and providing loans to flood-affected customers, which will pressure loan
                                                                                                                             Tanadech Rungsrithananon                                          Registration No. 17926
yields; and ii) increase cost 46.1% to 47.1%.
                                                                                                                             tanadech.rungsrithananon@krungsrisecurities.com



     Disclaimer: This publication constitutes information disclosed to the public and believed to be reliable but its accuracy and completeness are not guaranteed. All opinions,
     suggestions, or projections are for informational purposes only and shall not be construed as an inducement for the sale or purchase of securities. Amendments to this publication
     may be made without prior notice. Investors are urged to exercise caution in making a decision to invest in any securities.
  Company Update | KBANK
4Q11 Performance Forecast                                                                           KBANK’s business targets

Quarterly earnings forcast (Bt mn)
Year to Dec (Bt mn)              4Q10       1Q11     2Q11     3Q11     4Q11E       %YoY     %QoQ                                                                    KBANK
Interest income                 16,772     18,222   20,267   22,119    22,938       37%        4%                                                           2011        2012 Targets
Interest expense                 4,298      5,277    6,323    7,439     8,093       88%        9%
Net interest income             12,474     12,945   13,944   14,680    14,845       19%        1%                                                       Targets        Base case      Worst case
Net fees and service income      5,085      4,913    5,333    5,498     4,627       (9%)    (16%)                                                                 (GDP = 4.3%)      (GDP =3.5%)
Non-interest income              7,472      8,301    9,122    8,879     7,311       (2%)    (18%)
                                                                                                       ROE                                                   N/A              N/A              N/A
Non-interest expense            10,491     10,280   10,097   10,265    11,751       12%       14%
                                                                                                       ROA                                                   N/A              N/A              N/A
Pre-provisioning profit          9,455     10,965   12,969   13,294    10,405       10%     (22%)
                                                                                                       NIM                                             3.4-3.6%          3.4-3.5%     Above 3.25%
Provision expense                1,682      1,681    1,785    1,719     2,463       46%       43%
Pre-tax profit                   7,773      9,284   11,183   11,575     7,943         2%    (31%)
                                                                                                       Loan growth                          -9% (original target)          9-11%             7-9%
Net profit                       5,282      6,114    7,318    7,761     5,342         1%    (31%)       - Corporate Business Division (CBS)                4-6%            8-10%               N/A
EPS (Bt)                          2.21       2.55     3.06     3.24      2.23         1%    (31%)       - SME Business Division (SME)                     8-10%           10-12%               N/A
Key Financial Ratios                                                                                    - Retail Business Division (RBS)                12-15%            12-15%               N/A
LTDR                            97.9%      91.6%     97.1%    95.5%     94.5%                          Non-Interest Income growth                   Above 20%         Above 18%        Above 15%
NIM                              3.6%       3.5%      3.6%     3.6%      3.5%                          Net fee Income Growth                        Above 20%         Above 18%        Above 15%
NPL (gross) / loans              2.9%       2.7%      2.5%     2.3%      2.5%                          Provision Average /Quarter                   Bt1.6-1.8bn       Bt1.7-1.9bn      Bt1.8-2.0bn
LLR / NPL                      111.0%     108.5%    120.0%   128.2%    127.4%                                                                                   Improve up to 1%
                                                                                                       Cost to Income Ratio                              46-48%                        48.5-50.5%
LLR / loans                      3.4%       3.5%      3.3%     3.2%      3.3%                                                                                          from 2011
Cost to income                  52.6%      48.4%     43.8%   43.6%     53.0%                           NPL ratio (Gross)                             Below 3.0%      Below 2.7%        Below 3.0%
                                                                                                                                                                                    Source: KBANK


4Q11 loan growth to decelerate to 0.6% QoQ                                                          Flooding to cause rise in bad debt up to 0.5% of total loans.
                                                                                                    Management expected that roughly 9% of its total loans worth
   1,400,000                                                                                 10%
                                                                                                    Bt107bn would be impacted by the flooding. The bank said that that
                                                                                7.8%                customers accounting for Bt66bn or 5.5% of the total already
   1,200,000                                                                                 8%     contacted the bank for assistance. The bank therefore expects a
   1,000,000                                                                                 6%     portion of this will turn bad. The bank therefore estimates the total
                                                                                                    level of bad debt will increase slightly in 4Q11 and rise further in
     800,000                                                                       2.7%      4%
                                                                                                    1Q12 up to 0.5% of total loans.
     600,000                                                                                 2%
                                                                                                    Method of booking deferred tax not yet finalized.
     400,000                                                                           0.6% 0%
                                                                                                    Management said it has not yet decided whether to record deferred
     200,000                                                                                 (2%)   tax expense of Bt1.942bn in its P&L statement or as retained
            0                                                                                (4%)   earnings. This will depend on guidance from the Federation of
                                                                                                    Accounting Professions. A final decision is expected between
                E
              08
              08
              08
              08
              09
              09
              09
              09
              10
              10
              10
              10
              11
              11

          4Q 1
              1
            11




                                                                                                    January 10 and 12.
           1Q
           2Q
           3Q
           4Q
           1Q
           2Q
           3Q
           4Q
           1Q
           2Q
           3Q
           4Q
           1Q
           2Q
           3Q




                                     Gross loans (Bt mn)      QoQ Grow th (%)



Expect NPL ratio to rise to 2.5% in Q4
                                                                                                    ROE, ROA continue to rise
   4.0%                                                                                    140%
   3.5%                                                                                    120%
                                                                                                      25%                                                                              2.0%
   3.0%
                                                                                           100%                                                                                        1.8%
   2.5%                                                                                               20%                                                                              1.6%
                                                                                           80%
   2.0%                                                                                                                                                                                1.4%
                                                                                           60%        15%                                                                              1.2%
   1.5%
                                                                                           40%                                                                                         1.0%
   1.0%                                                                                               10%                                                                              0.8%
   0.5%                                                                                    20%                                                                                         0.6%
   0.0%                                                                                    0%           5%                                                                             0.4%
             1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11                                                                                                                                   0.2%
                                                                                                        0%                                                                             0.0%
                                     NPL ratio        Coverage ratio                                           2005        2006   2007     2008      2009     2010 2011E 2012E

                                                                                                                                     ROE (LHS)            ROA (RHS)




                              Krungsti Securities Public Company Limited         550 Bank of Ayudhya Building, Ploenchit Office, 5th floor, Ploenchit Road, Pathumwan, Bangkok 10330, Thailand
                                                                                                                                                          Tel +66 2659 7000 Fax +66 2646 1103
Company Update | KBANK

Income Statement (Bt mn)                                                                      Balance Sheet (Bt mn)
Year to Dec                                2009           2010    2011E          2012E        Year to Dec                                     2009            2010        2011E         2012E
Total interest income                     56,396         62,271   83,546         93,657       Investment                                   254,984      251,080         269,120       275,430
Total interest expense                    16,589         15,527   27,132         32,486       Total loans                                  943,378 1,076,981 1,206,219 1,314,779
Net interest income                       39,808         46,744   56,414         61,171       LLR                                           34,045           36,832      40,167        43,651
Non-interest income                       20,857         28,435   33,613         39,412       Total earnings assets                       1,294,203 1,462,741 1,753,998 1,836,128
Gross income                              60,665         75,179   90,027        100,583       Permises and equipment                        39,009           40,832      43,282        46,312
Non-interest expense                      30,435         38,038   42,394         47,351       Other assets                                  95,578      140,940         297,210       287,186
Pre-provisioning profit                   30,229         37,141   47,633         53,232       Total assets                                1,366,993 1,546,664 1,855,997 1,967,357
Provision expense                          9,403          6,701    7,649          7,563       Deposits                                     975,492 1,100,036 1,276,422 1,369,561
Pre-tax profit                            20,827         30,440   39,985         45,669       Other paying liabilities                     125,956      121,996         206,961       213,806
Tax                                        6,033          9,094   11,755         10,504       Other liabilities                            137,399      179,144         208,096       192,488
Extraordinary items                         (62)     (1,299)      (1,694)       (2,110)       Total liabilities                           1,238,847 1,401,177 1,691,479 1,775,855
Net profit                                14,732         20,047   26,535         33,055       Paid-up capital                               23,933           23,933      23,933        23,933
EPS - fully diluted (Bt)                    6.16           8.38    11.09          13.81       Share premium                                 18,103           18,103      18,103        18,103
Core earnings                             29,476         36,525   46,974         52,722       Retained earnings                             69,502           83,708     104,260       129,885
Core EPS (Bt)                              12.32          15.26    19.63          22.03       Shareholders' equity                         128,146      145,487         164,518       191,502



Ratio Analysis                                                                                Growth Rates
Year to Dec                                2009           2010    2011E          2012E        Year to Dec                                     2009            2010        2011E         2012E
Yield on earnings assets                   4.6%            4.6%     5.3%          5.3%        Interest income                               (6.2%)           10.4%        34.2%         12.1%
Cost of funds                              1.5%            1.3%     2.0%          2.1%        Interest expense                              (6.2%)           (6.4%)       74.7%         19.7%
Interest spread                            3.1%            3.3%     3.3%          3.2%        Net interest income                           (6.2%)           17.4%        20.7%              8.4%
NIM                                        3.2%            3.5%     3.6%          3.4%        Non-interest income                           (7.7%)           36.3%        18.2%         17.3%
LTDR                                      96.7%          97.9%    94.5%          96.0%        Gross income                                   53.4%           21.1%        16.8%         14.2%
Cost to income                            50.2%          50.6%    47.1%          47.1%        Non-interest expense                         (13.2%)           25.0%        11.5%         11.7%
ROA                                        1.1%            1.4%     1.6%          1.7%        PPP                                             0.9%           22.9%        28.2%         11.8%
ROE                                       12.6%          15.7%    18.4%          19.9%        Provision expense                              20.7%       (28.7%)          14.1%         (1.1%)
Equity to assets                           9.4%            9.4%     8.9%          9.7%        Pretax profit                                 (6.1%)           46.2%        31.4%         14.2%
Accured interest/loans                     0.1%           0.1%      0.1%          0.1%        Net profit                                    (3.9%)           36.1%        32.4%         24.6%
NPLs/loans                                 3.8%            2.9%     2.5%          2.5%        Core earnings                                   3.9%           23.9%        28.6%         12.2%
LLR /loans                                 3.6%            3.4%     3.3%          3.3%        Core EPS                                        3.9%           23.9%        28.6%         12.2%
LLR /NPLs                                 91.6%      111.0%       127.4%        125.9%        Loan growth                                     4.4%           14.2%        12.0%              9.0%
(LLR+Equity)/NPLs                        436.6%      549.6%       649.5%        678.3%        Asset growth                                    4.8%           13.1%        20.0%              6.0%
Foreclosed prop./ assets                   1.1%            0.9%     0.7%          0.7%        Deposit growth                                  0.8%           12.8%        16.0%              7.3%
Tier 1 capital                            10.3%           9.4%      9.7%         10.6%        Liabilities growth                              4.1%           13.1%        20.7%              5.0%
BIS ratio                                 15.2%          14.0%    13.7%          14.2%        Equity growth                                  12.7%           13.5%        13.1%         16.4%




 ROE vs P/BV                                                                                   P/BV Band
                                                                                                  Price (Bt)                                                                       P/BV(x)

                                                                                                  180
                                                                                                                                                                                      2.25
      25.0%                                                                      3.0
                                    2.7                                                           160
                                                                                                                                                                                      2.00
      20.0%                                                 2.2                  2.5
                                                                                                  140
                                                                  1.9                                                                                                                1.75
                                                                                 2.0
      15.0%       1.9                                                     1.5                     120
                           1.7                       1.7                                                                                                                              1.50
                                                                                 1.5              100                                                                                 1.25
      10.0%
                                                                                 1.0                80

       5.0%                                0.9
                                                                                 0.5                60


       0.0%                                                                      0.0                40

              2005      2006     2007     2008    2009     2010 2011E 2012E                         20
                                                                                                    Dec-04     Dec-05   Dec-06   Dec-07    Dec-08   Dec-09     Dec-10   Dec-11 E Dec-12 E
                                        ROE (%)      P/BV




                                                         Source: SET, KSS Research                                                                                Source: KSS Research




                        Krungsti Securities Public Company Limited      550 Bank of Ayudhya Building, Ploenchit Office, 5th floor, Ploenchit Road, Pathumwan, Bangkok 10330, Thailand
                                                                                                                                                 Tel +66 2659 7000 Fax +66 2646 1103
                                                                    Corporate Governance Report of Thai Listed Companies 2011
                                                                                                                  Thai Institute of Director (IOD)



ADVANC          AOT           BAFS          BANPU          BAY            BBL          BCP         BKI        BMCL          CPN
  CSL          EASTW          EGCO           ERW         GRAMMY         HEMRAJ          ICC       IRPC       KBANK           KK
  KTB           LPN           MCOT           NMG           PS             PSL          PTT      PTTAR***    PTTCH***       PTTEP
  QH           RATCH         ROBINS           RS           SAT            SC           SCB         SCC       SE-ED          SIS
 THRE            TIP          TIPCO         TISCO          TKT           TMB           TOP
                                                                     ***On October 18, 2011 PTTAR and PTTCH are merged to be PTTGC


  ACAP            AF         AMANAH         AMATA           AP              ASIMAR       ASP           AYUD           BEC          BECL
  BFIT           BH            BIGC           BJC           BLA             BROOK        BTS           BWG          CENTEL         CGS
 CIMBT           CK             CM           BPALL         CPF               CSC        DELTA         DEMCO           DRT          DTAC
  DTC            ECL          FORTH           GBX           GC               GFPT       GLOW           HANA         HMPRO           HTC
  IFEC          INET         INTUCH            IVL          JAS              KCE        KEST            KGI           KSL          KWC
   L&E         LANNA             LH         LOXLEY         LRH                LST       MACO          MAJOR         MAKRO          MBK
  MFC          MFEC            MILL           MINT          MK                MTI        NBC           NCH            NINE          NKI
 NOBLE          OCC            OGC           OISHI          PB                PG       PHATRA           PM             PR         PRANDA
  PRG             PT          PYLON           S&J          S&P              SABINA     SAMCO           SCCC           SCG         SCSMG
SEAFCO           SFP         SICCO***       SINGER         SIRI             SITHAI       SMT            SNC          SPALI          SPI
  SPPT           SSF           SSSC           STA         STANLY             STEC      SUSCO            SVI          SYMC         SYNTEC
 TASCO          TCAP            TFD            TFI         THAI             THCOM        THIP           TIC            TK           TMT
 TNITY           TNL           TOG            TPC          TRC                TRT       TRUE            TSC          TSTE          TSTH
   TTA          TTW             TUF           TVO          TYM               UAC         UMI             UP          UPOIC           UV
   VNT        WACOAL          WAVE           ZMICO
                                                                                        ***SICCO was delisted from SET on October 7, 2011


     2S            A          AEONTS          AFC            AGE               AH         AHC             AI            AIT           AJ
    AKR         APRINT         APURE           AS            ASK             BAT-3K       BGT          BLAND            BNC          BOL
  BROCK          BSBM           BTNC         CCET          CFRESH           CHARAN         CI           CITY           CMO           CMR
    CNS           CNT            CPI          CPL          CRANE               CSP        CSR           CTW            DCC         DRACO
  EASON           EIC          ESSO            FE          FOCUS               FSS      GENCO           GFM              GL         GLAND
   GOLD         GUNKUL          GYT           HFT          HTECH               IFS       ILINK           IRC           IRCP           IT
    ITD           JTS          JUTHA         KASET           KDH               KH         KKC           KMC             KTC          KWH
    KYE          LALIN           LEE          LHK          MATCH              MATI       MBAX          M-CHAI          MCS           MDX
    MJD         MOONG           MPIC          MSC             NC               NEP       NNCL            NSI            NTV          NWR
   OFM            PAF            PAP         PATO            PDI              PHOL       PICO             PL          POST           PPM
   PREB         PRECHA          PRIN           PTL          Q-CON              QLT       RASA            RCI            RCL         ROJNA
    RPC          SAUCE        SCBLIF          SCP           SENA            SHANG        SIAM          SIMAT            SKR          SMIT
    SMK           SMM           SPC           SPG            SST              STAR        SUC          SVOA            SWC          SYNEX
   TBSP           TCB            TCC          TCP           TEAM                TF       TGCI          THANA          THANI         TICON
    TIW           TKS          TLUXE          TMD            TNH              TNPC       TOPP            TPA          TPAC         TPCORP
   TPIPL          TPP             TR          TTCL           TTI             TWFP         TWZ           TYCN           UBIS          UEC
  UOBKH           UPF             US           UT           UVAN             VARO       VIBHA           VNG             WG          WORK
  YUASA


               Score Range                                    Number of Logos                                      Description
                  90-100                                                                                            Excellent
                   80-89                                                                                           Very Good
                   70-79                                                                                              Good
                   60-69                                                                                           Satisfactory
                   50-59                                                                                              Pass
                 Below 50                                               -                                                -
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 of 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 evaluation 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. Krungsri Securities Public Company Limited does not confirm nor certify the accuracy of such survey result.
                      Krungsri Securities Public Company Limited
        Headquarters
        550 Bank of Ayudhya Building, Ploenchit Office, 5th Floor
        Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330
        Tel: 0-2659-7000 Fax: 0-2646-1111
        Internet Trading: 0-2659-7777
        Branches
        Emporium                                                        Nakhon Pathom
        662 Emporium Tower, Fl. 10, Sukhumvit 24 Road                   67/1 Ratchadamnoen Road, Tambol Phra Pathom Jaedee,
        Klongton, Bangkok 10110                                         Amphur Muang, Nakhon Pathom 73000
        Tel: 0-2695-4500 Fax: 0-2695-4599                               Tel: 0-3427-5500-7 Fax: 0-3421-8989
        Central Bangna                                                  Suphanburi
        589/151 Central City Tower 1 Office, Fl. 27                     249/171-172 Moo 5 Tambol Ta Rahad,
        Bangna-Trad Road, Bangna, Bangkok 10260                         Amphur Muang, Suphanburi, 72000
        Tel: 0-2763-2000 Fax: 0-2399-1448                               Tel: 0-3550-1234 Fax: 0-3552-2449
        Rama II                                                         Nakhon Ratchasima
        111/917-919 Rama II Road, Smaedum,                              168 Chomphon Road, Tambol Nai Muang,
        Bangkhuntien, Bangkok 10150                                     Amphur Muang Nakhon Ratchasima,
        Tel: 0-2895-9575 Fax: 0-2895-9557                               Nakhon Ratchasima 30000
        Vibhavadi-rangsit                                               Tel: 0-4425-1211-4 Fax: 0-4425-1215
        Bank of Ayudhya Public Company Limited                          Khon Kaen
        123 Suntowers (B) Building, Vibhavadirangsit Road,              114 Sri Chan Road, Tambol Nai Muang,
        Jompol, Jatujak, Bangkok 10900                                  Amphur Muang, Khon Kaen 40000
        Tel: 0-2273-8388 Fax: 0-2273-8399                               Tel: 0-4322-6120 Fax: 0-4322-6180
        Chonburi                                                        Chiang Mai
        64/17 Sukhumvit Road, Tambol Bang Plasoi,                       70 Chang Phuak Road, Tambol Sri Phum
        Amphur Muang, Chonburi 20000                                    Amphur Muang, Chiang Mai 50200
        Tel: 0-3879-0430 Fax: 0-3879-0425                               Tel: 0-5321-9234 Fax: 0-5321-9247
        Hat Yai Branch                                                  Chiang Rai
        90-92-94 Nipat U Tit Nueng Road,Tambol Hat Yai,                 231-232 Thamalai Road, Tambol Wiang,
        Amphur Hat Yai, Songkhla 90110                                  Amphur Muang, Chiang Rai 57000
        Tel: 0-7422-1229 Fax: 0-7422-1411                               Tel: 0-5371-6489 Fax: 0-5371-6490
                                                                        Phitsanulok
                                                                        275/1 Phichaisongkram Road, Tambol Nai Muang,
                                                                        Amphur Muang, Phitsanulok 65000
                                                                        Tel: 0-5530-3360 Fax: 0-5530-2580
Analyst Team      Name                            Sector Coverage                                E-mail
Central line:     Kasamapon Hamnilrat             Hotel, Steel                                   kasamapon.hamnilrat@krungsrisecurities.com
66.2659.7000      Sittidath Prasertrungruang      Electronics, Transportation, Agribusiness      sittidath.prasertrungruang@krungsrisecurities.com
ext. 5017,5018    Chatree Srismaicharoen          Property, Contractor, Construction Materials   chatree.srismaicharoen@krungsrisecurities.com
Fax.              Charnvut Taecha-amorntanakij    Energy, Petrochemical                          charnvut.taechaamorntanakij@krungsrisecurities.com
66.2646.1103      Tanadech Rungsrithananon        Banking, Finance & Securities, Commerce        tanadech.rungsrithananon@krungsrisecurities.com
                  Thakol Banjongruck              Automotive, Healthcare, ICT                    thakol.banjongruck@krungsrisecurities.com
                  Adisak Phupiphathirungul        Strategy                                       adisak.phupiphathirungul@krungsrisecurities.com
                  Wanchai Bunprasert              Technical                                      wanchai.bunprasert@krungsrisecurities.com

        Recommendations
        Buy               - Stocks with strong fundamentals and an expected total return of more than 10% over the next year.
        Hold              - Stocks with strong fundamentals and an expected total return of 5-10% over the next year.
        Sell              - Stocks that are overvalued or that have weak fundamentals.
        Trading           - Stocks with weak fundamentals but that have a story for trading.

                                                                                   www.krungsrisecurities.com

								
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