THAILANDs TOP LOCAL KNOWLEDGE

Current Market
Market data SET Index Turnover (Bt m) Mkt Cap (Bt bn) Stock Gainers Stock Losers Close 1,430.9 44,212 12,363 225 473

Friday, July 05, 2013

SET Index vs MSCI Asia x JP
Prev. -0.0 +2.3 -2.4 +0.2 -1M -52.5 +30.0 +25.5 -3.0 YTD -79.4 +18.0 +68.1 -6.7
(index) 1,800 1,600 1,400 1,200 1,000 800 Jan-12 Jul-12 Jan-13 SET index (LHS) MSCI Asia x JP (RHS) (index) 600 550 500 450 400

Net trade

%
-0.9% -13.3% 0.0% stocks stocks

Net trade (Bt bn) Foreign Retail Institutes Proprietary

Thanacharts Morning Note

TOP STORY

Market Valuation Market data 2013F 2014F 2015F

14.4 18.8 9.5 2.3 3.4 17.0 0.6 12.3 17.0 8.3 2.1 4.0 18.0 0.6 10.7 14.3 7.5 1.9 4.7 18.6 0.5 PE (x) Norm EPS growth (%) EV/EBITDA (x) P/BV (x) Yield (%) ROE (%) Net D/E (x)

PTTEP (SELL) | Limited upside from Hess

We see no fundamental change in PTTEPs operations with a lackluster medium-term oil price outlook on a weak Chinese economy. The acquisition of Hesss assets, if successful, would only bring slight upside to our earnings forecast, in our view.

Construction (Neu)

Bt2tr infrastructure investment at risk

P.3

Major Indices Close

Dow Jones NASDAQ FTSE SHCOMP (China) Hang Seng FTSSI (Singapore) KOSPI JCI (Indonesia) MSCI Asia MSCI Asia x JP 14,989 3,444 6,230 1,994 3,129 1,839 4,582 116 495

The Bt2tr bill may be unconstitutional. Protests and lawsuits could delay the gov.s infra. projects. This causes a risk to our forecast on civil contractors earnings. TTCL is not involved in the infra. projects. A chance to buy
BAY (U.R.) Expecting decent 2Q13F profits P.4

0.0 0.0 -74.1 -12.3 -43.8 14.5 4.8 -0.9 -11.7

%
0.0% 0.0% -1.2% -0.6% -2.5% -1.4% 0.8% 0.1% -0.8% -2.3%

20,147 -511.3

We project profits growth of 18.0% y-y and 7.8% q-q. Drivers are higher fees, lower cost to income and tax cut. We expect BAY to put aside counter-cyclical provision of Bt1.0bn. With limited share price upside, we put our BUY call under review.

Currency /Bond data Close

Dollar index Bt/US$ 100JPY/US$ 10Y bond yield (TH) 10Y treasury yield (US) 83.2 31.1 99.7 3.8 2.5

-0.3 0.1 -0.1 0.0 0.0

%
-0.4% 0.5% -0.1% 1.1% 1.4%

Commodities Close
NYMEX (US$/bbl) BRENT (ICE) (US$/bbl) DUBAI (US$/bbl) Baltic Dry Index GRM (US$/bbl) Gold (US$/oz) Coal (BJI)* HDPE-Naphtha Ethylene-Naphtha PX-Naphtha BZ-Naphtha Steel-HRC Rubber SICOM TSR20 Rubber TOCOM 101.2 105.8 101.2 1,103.0 10.1 1,251.9

0.0 1.8 1.6 -30.0 0.6 8.5

%
0.0% 1.7% 1.6% -2.6% 6.5% 0.7%

77.4 -2.1 -2.7% (US$/tonne)* (US$ cent/lb)** 585.0 440.0 572.5 360.0 520.0 2,247 2,460 16.4 21.6 19.5 9.5 14.5 10.0 22.0 24.2 0.0 -0.1 3.4% 2.2% 2.6% 2.0% 1.0% 1.0% 0.0% -0.3%

-45.5 -11.2%

Raw Sugar** White Sugar**

Source: Thanachart , Bloomberg, Datastream, Banpu

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

SELL

(Unchanged)

TP: Bt 140.00
Downside : -11.9%

(Unchanged)

5 JULY 2013

New Information

PTT Exp. & Production (PTTEP TB)

Limited upside from Hess
We see no fundamental change in PTTEPs operations with a lackluster medium-term oil price outlook on a weak Chinese economy. The acquisition of Hesss assets, if successful, would only bring slight upside to our earnings forecast, in our view.
SUPANNA SUWANKIRD
662 617 4900 supanna.suw@thanachartsec.co.th

Big picture remains unchanged

Our view on PTTEPs business remains unchanged. We see the company offering soft earnings growth while its in a low RoE cycle given a falling margin as a result of rising operating costs from overseas investments in their early operational stages. With attempts to find new reserves and grow production as domestic gas in the Gulf of Thailand starts running out, PTTEP plans to continue a long period of heavy investment capex for exploration and production overseas and onshore domestic projects. We dont see oil prices as a push factor for the share price in the medium term given the slowdown in Chinas economy dulling commodity prices. We maintain our SELL call with a 12-month DCF SoTP TP of Bt140. At 10.6x 2013F PE, PTTEP also doesnt look cheap compared with China National Offshore Oil Corps (883 HK) 9.3x and Cairn Indias (CAIRN IN) 4.8x, per the Bloomberg consensus.

COMPANY VALUATION
Y/E Dec (Bt m) Sales Net profit Consensus NP Diff frm cons (%) Norm profit Prev. Norm profit Chg frm prev (%) Norm EPS (Bt) Norm EPS grw (%) Norm PE (x) EV/EBITDA (x) P/BV (x) Div yield (%) ROE (%) Net D/E (%) 2012A 2013F 2014F 2015F

212,537 233,990 253,440 269,917 57,316 59,467 64,144 (7.3) 59,467 59,467 0.0 15.0 (15.1) 10.6 4.2 1.7 3.8 17.2 14.2 60,385 67,896 (11.1) 60,385 60,385 0.0 15.2 1.5 10.5 3.9 1.6 3.8 15.8 12.8 61,459 62,038 (0.9) 61,459 61,459 0.0 15.5 1.8 10.3 3.8 1.4 3.9 14.7 10.5

Thanachart Securities

60,090

17.6 31.2 9.0 3.9 1.9 3.7 22.8 13.8

We see Montara contributing a loss

Montara finally started up commercially on 20 June, which we see as good news, although we believe the market is too positive about its earnings contribution. With estimated depreciation expenses of US$80/bbl and operational costs of US$10-15/bbl, we expect Montara to contribute a bottom-line loss to PTTEP in 2013 based on the current Dubai oil price hovering around US$100/bbl. Note that Montara should produce 12,000bpd of oil in 2013, 25,000bpd in 2014 and 2015, falling to 7-8,000bpd in the next two years before running out in 2018.

PRICE PERFORMANCE
(Bt /shr) 200 180 160 140 120 100 Jul-12 Nov-12 M ar-13

P TTEP

Rel to SET Index

(% ) 10 0 (10) (20)

Upside from M&As but not too exciting

Given that PTTEP already has an ownership stake in the two Thai assets (see pg 2) and has expressed a desire to expand its asset base, we expect PTTEP to bid for US-based Hesss planned asset sales in Thailand and Indonesia. 1) Both assets are operational and thus could immediately lift PTTEPs earnings. 2) As PTTEP is familiar with the assets in Thailand (Pailin and Sinphuhorm), we expect it to propose bid prices that yield reasonable returns. Hess has set the bid deadline for mid-July, according to Reuters. We roughly estimate the assets would add just 7-8% to PTTEPs earnings based on our assumption of a 15% ROI on the US$1bn acquisition cost (based on the companys preparations for a US$600-700m credit line as part of its funding sources). We see these asset values already being reflected in the share price.

(30) (40) (50) (60) Jul-13

COMPANY INFORMATION
Price as of 4-Jul-13 (Bt) Market cap (US$ m) Listed shares (m shares) Free float (%) Avg daily turnover (US$ m) 12M price H/L (Bt) Sector Major shareholder 159.00 20,303.2 3,970.0 34.7 30.6 174.5/141.0 Energy PTT Pcl 65.3%

2Q13F earnings preview

We forecast PTTEP to post net profits of Bt13bn in 2Q13 (from Bt20bn in 1Q13) on a drop in oil prices (Dubai was down US$8/bbl from 1Q13 to US$100) and huge unrealized forex items estimated at Bt4.5bn-5.0bn. Excluding the extra items, we project its norm earnings at Bt16bn, dropping by 6% q-q. This would bring results in 1H13 to Bt33bn, or to 56% of our full-year earnings forecast.

Sources: Bloomberg, Company data, Thanachart estimates

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

THAILANDs TOP LOCAL KNOWLEDGE

Friday, July 05, 2013

Construction Sector Neutral

Saksid Phadthananarak | Email: saksid.pha@thanachartsec.co.th

News Update

Bt2tr infrastructure investment at risk The Bt2tr bill may be unconstitutional. Protests and lawsuits could delay the gov.s infra. projects. This causes a risk to our forecast on civil contractors earnings. TTCL is not involved in the infra. projects. A chance to buy

Contractors stocks fell sharply yesterday. There are many negative factors that cause the market concern about the delay or even cancellation of the governments infrastructure investment. 1. The Central Administrative Court ordered a halt to the Bt350b water scheme to complete environmental and health impact assessment studies on projects. The studies may have to be applied to the Bt2tr investment projects which could cause a delay or even cancellation. 2. The Law Reform Commission of Thailand (LRCT) chairman, Kanit na Nakorn, said that the Bt2tr borrowing bill was likely to violate Article 169 of the Constitution, which requires that state funds be disbursed in line with budgetary procedures and none of them was appropriate for Bt2tr loans. 3. The so-called Group of 40 senators threatened to submit a petition to the Constitutional Court against the government if the Bt2tr bill clears Parliament. 4. The concern of the fund outflow could cause the government to face difficulties to find funding sources.

However, Deputy Prime Minister Phongthep Thepkanjana said the bill does not violate Article 169 of the Constitution because the loans will not be considered as state funds. Currently, the Bt2tr bill has passed its first reading and is being vetted by a special House committee. The bill is expected to be sent back to the House for the second and third reading in August. In our opinion, it is difficult to guess whether or not the bill will pass the parliament to become law. Despite the bill becoming law, there is also a risk of the implementation as the projects could face protests or lawsuits. Even though we are not bullish about the construction sector and we put a neutral weighting rate from the beginning, there is a downside risk to our forecast on civil contractors earnings in longer term, STEC (STEC.TB, Bt32.00, Buy) and CK (CK.TB, Bt20.00, Sell) as we partly factored in some construction works from the Bt2tr investments in their future new work value in the next 7 years.

However, in short term, their current huge backlog could still be able to help their earnings to grow in the next two years. In fact, STEC just reported the SET that it has signed new contracts with the total project value of Bt1.8bn to design and build for for Pattaya Country Club and Burirum International Circuit. Including this project, STECs new work will increase to Bt21.4bn in 2013 versus our forecast of Bt35.7bn. Its current backlog value is estimated at around Bt70bn.

Given these unknown risks, we rather recommend buying TTCL (TTCL.TB, Bt77.00, Buy), which is our top pick in the sector, as it is an EPC contractor focusing on domestic and oversea private projects and they are not involved in the governments infrastructure investments. It also diversifies the EPC business into the power plant investments to help stabilizing its long-term revenues.

THANACHART SECURITIES

THAILANDs TOP LOCAL KNOWLEDGE

Friday, July 05, 2013

Bank of Ayudhya Pcl

(BAY TB)

- U.R.
Key valuation
Y/E Dec (Bt m) 2012A 30,213 14,625 14,625 2.4 28.7 15.4 2.0 2.2 13.6 1.4

Analyst Meeting

Sarachada Sornsong | Email: sarachada.sor@thanachartsec.co.th

Expecting decent 2Q13F profits We project profits growth of 18.0% y-y and 7.8% q-q. Drivers are higher fees, lower cost to income and tax cut. We expect BAY to put aside counter-cyclical provision of Bt1.0bn. With limited share price upside, we put our BUY call under review.

2013F 35,525 18,584 18,584 3.1 27.1 12.1 1.8 2.9 15.5 1.6

2014F 41,453 22,582 22,582 3.7 21.5 10.0 1.6 3.5 16.7 1.7

2015F 45,961 25,592 25,592 4.2 13.3 8.8 1.4 4.0 16.8 1.8

Pre Prov. Profit Net profit Norm net profit Norm EPS (Bt) Norm EPS gr (%) Norm PE (x)

We joined BAYs 2Q13F earnings preview meeting yesterday. Key takeaways are as follows.-

P/BV (x) Div. yield (%) ROE (%) ROA (%)

We project 2Q13F profits of Bt4.36bn, up 18.0% y-y and 7.8% q-q. Combined with 1Q13 profits of Bt4.0bn, 1H13 profits will account 45% of our full-year forecast. Since we expect stronger earnings momentum in 2H13, we are maintaining our full-year projection but put our BUY call under review as there limited upside to our Bt38 TP.

Source: Thanachart estimates

Stock Data
Closing price (Bt) Target price (Bt) 37.00 38.00 7,129 21.4 37.8/28.0

Y-Y drivers are growing loans, higher fees and corporate tax cut. Meanwhile, q-q improvement is due mainly to improving efficiency. Driven by auto and SME loans, we project loan growth of 3% YTD in 2Q13. NIM is stable at 3.9% while fee income growth momentum slows from 1Q13. NPL rises due to default of one corporate account. But since BAY has sold NPL of around Bt3.0bn, we dont expect an increase in net NPL in this quarter. As for provisions, the bank is still process to asses a necessity of countercyclical provisions. We expect the bank to put aside special provision of Bt1bn and forecast credit costs of 1.87%, rising from 1.47% in 1Q13. Since this will be partly offset by lower expenses on a write-back of provision of restructured loans under Thai Asset Management Corporation (TAMC), we still look for decent profits growth both y-y and q-q.

Market Cap (US$ m) Avg daily turnover (US$ m) 12M H/L price (Bt)

Price Performance
(B t) 40 35 30 25 20 Jul-1 2 Oct-1 2 Jan-1 3 A pr-1 3 B ank o f A yudhya Rel to SET Index (%) 20 1 0 0 (1 0) (20) (30) Jul-1 3

Sources: Thanachart estimate, Bloomberg

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THAILANDs TOP LOCAL KNOWLEDGE

Friday, July 05, 2013

NEWS CLIPPING


Bt2-trillion loan bill does not violate charter, says govt; vows to press on : The government yesterday vowed to go ahead with the enactment of the Bt2-trillion loan bill, rejecting a legal-reform panel's claim that the bill is unconstitutional. Coup has lessons here, says Abhisit : The Egyptian coup should serve as a good lesson that military intervention is unlikely unless a government abuses its power, according to opposition and Democrat Party leader Abhisit Vejjajiva. Lower consumer confidence to slow GDP growth, UTCC warns : The government has been urged to increase efficiency on managing fuel prices, accelerate budget disbursement to stimulate spending, and promote tourism to ensure economic growth amid rising concerns over falling consumer confidence. Sector-wide meeting set on rice price : Anti-graft group urges greater transparency. The Commerce Ministry has announced that it will meet next week with all those involved in the rice-pledging process farmers, millers, traders and exporters - to discuss a new pledging price for the upcoming harvest season, which begins in November. CEO's expect 'GDP growth below 4.5%' : CEOs expect Thailand's economic growth to stay below 4.5 per cent, given the slowdown in the global economic recovery, while expressing concern over Thailand's political situation and economic policies impacting business operations in the latter half of this year. TFEX trading up 79% in first half : The Thailand Future Exchange recorded growth in trading of 79 per cent to an average of 78,650 contracts worth Bt30.55 billion a day in the first half of this year. Government approves licences for nine new industrial plants : The Industry Ministry yesterday approved nine licences for industrial plants with a total value of more than Bt4.525 billion, including six power plants. Talks a must on post-concession care : CAT Telecom, True Move and Digital Phone have to discuss among themselves who will take care of the 17 million users of TrueMove and DPC after their concessions expire on September 15. MUFG takeover of BAY reflects shift to region : Big Asian banks eye Thai base for network expansion. Thailand is becoming a tough battleground as big Asian banks seek a foothold here, following their US and European peers to the Southeast Asia region, with Mitsubishi UFJ Financial Group's takeover of Bank of Ayudhya, the biggest such deal in the country, a flashy part of the trend, according to Kasikornbank. CK Power starts to operate Bang Pa-in plant commercially : CK Power Plc commenced commercial operations at phase 1 of its Bang Pa-in cogeneration power plant on June 28. CP All's Dhanin tops list of rich Thais : "Tourism, IPOs boost fortunes of Thailand's richest", Forbes Asia will trumpet in an article on July 15. Atop the list of the Kingdom's richest for the fourth year in a row is Dhanin Chearavanont. The head of agribusiness Charoen Pokphand led the group on an acquisition spree. His CP All, the world's third-biggest operator of 7-Eleven stores, won approval to acquire discount retailer Siam Makro. He also bought a 15-per-cent controlling stake in Ping An Insurance in the biggestever foreign acquisition of a Chinese company. PTT may put off Bt360-bn capex plan : External factors call for adjustments. PTT might postpone some projects as part of the review next month of its five-year capital-expenditure plan in response to signs of an economic slowdown in China, less liquidity in global markets, and the United States tapering off its economic stimulus measures in the near future. PTT halts supply to gas distributor : PTT has imposed preliminary punitive measures on Citi Service and Solutions, its cooking-gas retail distributor, after police alleged the company distributed cooking gas to the transport sector. Mc Group's SET debut a success, closes Bt1 above IPO price : Mc Group, the maker of Mc Jeans, made a successful debut on the Stock Exchange of Thailand yesterday, rising 6.67 per cent above its initial public offering price.

Bangkok Post

Bangkok Post

The Nation

The Nation

The Nation

The Nation

The Nation

The Nation

The Nation

The Nation

The Nation

The Nation

The Nation

The Nation

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Friday, July 05, 2013

Market data SET Index SET50 Index SET100 Index MAI Index Economic data Saving Rate (%) Fixed Deposit - 3M (%) Fixed Deposit - 1Y (%) Govt Bond Yield 1Y (%) Govt Bond Yield 10Y (%) Treasury Yield 10Y (%) Policy Rate (%) VIX Index TED Spread (%)

Close 1,430.9 969.0 2,133.8 395.9 Current 0.75 1.63 2.38 2.57 3.75 2.50 2.50 16.20 0.23

-12.7 -8.0 -20.1 1.5 -1M 0.75 1.63 2.38 2.56 3.60 2.17 2.50 15.14 0.23

% -0.9% -0.8% -0.9% 0.4% -3M 0.75 1.63 2.38 2.74 3.46 1.80 2.75 12.36 0.21

PRICE CHANGE - MOST ACTIVE Change 1 Day (%)

TMB BAY JAS MC INTUCH ADVANC SCB KTB KBANK CK (15) (10) (5) 0 5 10

Change 1 Week (%)

BAY JAS INTUCH ADVANC KTB PTT KBANK BBL SCB CK (20) (10) 0 10

Change 1Month (%)

ADVANC PTT JAS

Change Year-To-Date (%)

ADVANC TRUE INTUCH BLAND PTT KTB BBL KBANK SCB CPALL

Source: Bloomberg, Datastream, Thai BMA

SET Forward PE Band

(index) 2,500 2,000 1,500 1,000 500 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014F 30x 25x 18x 14x 10x 6x

INTUCH BBL KTB KBANK SCB CPALL TRUE (40) (30) (20) (10) 0 10 20

(40)

(20)

20

40

SECTOR CHANGE Change 1 Day (%)

HELTH ENERG ETRON MEDIA PETRO

Change 1 Week (%)

HELTH MEDIA ENERG TRANS FOOD ICT PETRO ETRON SET BANK AUTO CONMAT COMM PROP

SET PE Discount to MSCI Asia x JP

(x) 4 2 0 (2) (4) (6) Jan-03

FOOD AUTO SET

+2 STD = 2.9x +1 STD = 1x Average = -0.9x -1 STD = -2.7x -2 STD = -4.6x

BANK ICT COMM TRANS CONMAT PROP (4) (3) (2) (1) 0 1 2

(10)

(5)

10

Change 1 Month (%)

ENERG ICT

Change Year-To-Date (%)

ICT TRANS HELTH PROP ETRON AUTO SET MEDIA CONMAT BANK COMM ENERG PETRO FOOD

May-06

Sep-09

Jan-13

ETRON PETRO TRANS

Source: Bloomberg

BANK SET CONMAT HELTH FOOD MEDIA AUTO COMM PROP (20) (15) (10) (5) 0 5

(20)

20

40

Source: Bloomberg

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THAILANDs TOP LOCAL KNOWLEDGE

Friday, July 05, 2013

REGIONAL MARKET PERFORMANCE Change 1 Day (%) Change 1 Week (%)

REGIONAL FUND FLOWS Change 1 Day (-1D)

(US$ m) 0 0 (0) (5) (50)

Hang Seng India MSCI Asia x JP S.Korea China Singapore Dow Jones Nasdaq Malaysia Indonesia Taiwan Philippines Nikkei Thailand S&P500 (2) (1) 0 1 2

Nikkei China India Philippines Nasdaq Malaysia Singapore S&P500 Hang Seng Dow Jones Thailand

(20) (68)

(100) (150) (200) (250) India Thailand Philip. Indonesia Korea Taiwan (234) Asia-6 (141)

Change 1 Week (-1W)

(US$ m) 400 185 200 76 0

Taiwan S.Korea Indonesia MSCI Asia x JP (4) (2) 0 2 4 6 8

(200) (400) (600) (800) Philip. Korea

(89)

(127) (284) (496)

Indonesia

India

Thailand

Taiwan

(734) Asia-6

Change 1 Month (%)

Change Year-To-Date (%)

Change 1 Month (-1M)

(US$ m) 0 (2,000) (4,000) (6,000) (8,000) (10,000) (12,000) (14,000) (16,000) (18,000) (62)

Nikkei Nasdaq Malaysia India S&P500 Dow Jones Philippines Singapore Taiwan Thailand S.Korea Hang Seng MSCI Asia x JP Indonesia China (15) (10) (5) 0 5 10

Nikkei Dow Jones Nasdaq S&P500 Philippines Indonesia Malaysia Thailand Taiwan

(1,094)

(2,364)

(2,713)

(3,897) (5,369)

(15,499) Philip. India Thailand Indonesia Korea Taiwan Asia-6

Change Year-To-Date (YTD)

(US$ m)

India Singapore S.Korea MSCI Asia x JP Hang Seng China (20) 0 20 40

15,000 10,000 5,000 0 (5,000) (10,000) (15,000)

13,448

1,855

1,535 (218) (1,134)

(2,613) (9,162)

India

Asia-6

Philip. Indonesia Taiwan Thailand

Korea

Source: Bloomberg Source: Bloomberg

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Friday, July 05, 2013

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.

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Friday, July 05, 2013

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 Research Economics & Strategy
pimpaka.nic@thanachartsec.co.th

Supanna Suwankird Energy, Utilities

supanna.suw@thanachartsec.co.th

Siriporn Arunothai Ad Hoc Research, Healthcare

siriporn.aru@thanachartsec.co.th

Sarachada Sornsong Banks, Telecom

sarachada.sor@thanachartsec.co.th

Saksid Phadthananarak Electronics, Construction, Transportation

saksid.pha@thanachartsec.co.th

Noppadol Pririyawut Senior Technical Analyst

noppadol.pri@thanachartsec.co.th

Phannarai Tiyapittayarut Property, Retail

phannarai.von@thanachartsec.co.th

Kalvalee Thongsomaung Food, Media, Hotel

kalvalee.tho@thanachartsec.co.th

Adisak Phupiphathirungul, CFA

Retail Market Strategy adisak.phu@thanachartsec.co.th

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