COMPANY UPDATE

Thailand

Robinson Department Store (ROBINS.BK/ROBINS TB)* Outperform‧Maintained  Price as of 10 Apr 2018 12M target price (Bt/shr) Unchanged/Revised up(down)(%)

Positive SSSG and rental income to drive 1Q18 earnings 62.50

Event

85.00

Earnings preview

Unchanged

Upside/downside (%)

36.0

Key messages

Trading data 69/1955 1,111 242 2.5 53.8-77 3M 6M 12M -15.0 -8.1 0.8 -13.4 -10.5 -9.4

Quarterly EPS Q1 0.55 0.62 0.64

Q2 0.40 0.55 0.54

Q3 0.36 0.46 0.55

Q4 0.63 0.91 0.74

positive 1.0-2.0% thanks to the low base effect from weak consumption. The retailer still has 10% of stock clearance, near the clearance portion in 4Q17. Therefore, we forecast GPM of about 25.2%, flat YoY and QoQ. Rental income continues uptrend We expect rental income of Bt902mn (+12.9% YoY, +3.0% QoQ). Robust income growth YoY would be caused by an increase in rental space of 8.9% to 403k sq.m. from 370k sq.m. in 1Q17. The potential growth of this income is further supported by the expanded space at new malls and rate adjustments, which would provide sustainability behind ROBINS’s performance in the long term. Based on all this, we estimate that rental income will account

80

30

75

20

70

60

Voranart Meethavorn 66.2658.8888 Ext.8856 [email protected]

Better outlook ensues Although upcountry consumption remains sluggish in the near term, its outlook in 2H18 should improve, driven by i) the government’s Bt100bn budget for rural areas that will be disbursed in 2Q18, ii) the lower base of farm prices as the rubber price started tumbling in May 2017 and iii) fresh signs of a rice-price rebound in March 2018. We thus expect rural purchasing power to lift. Moreover, solid rental income from the high occupancy rate of

Nov-17

Jan-18

Price performance relative to SET

Apr-18

Valuation & Action We maintain an Outperform rating, with a 2018 target price of Bt85.00 based on the DCF methodology. At this price, the stock offers sizable upside to our target price andit is trading on PER18 20.4x and on PEG 1.0x, below the sector average at 30.6x and 2.2x.

(20)

50 Share Price

lower promotional expense would lead to the slip in expense QoQ.

10

(10)

55

Source: SET

YoY would result from costs related to store expansion in the past 12months. Meanwhile,

0

65

Sep-17

SG&A to inch up YoY but drop QoQ We estimate SG&A of Bt1.9bn, up 4.0% YoY but down 10.6% QoQ. The higher expenses

98% would reinforce its performance.

Share price chart

Jun-17

ROBINS’s sales would reach Bt6.4bn (+1.7% YoY, -12.6% QoQ). SSSG would turn to

for about 40-50% of its operating profit.

Mkt cap (Btbn/US$mn) Outstanding shares (mn) Foreign ownership (mn) 3M avg. daily trading (mn) 52-week trading range (Bt) Performance (%) Absolute Relative

Apr-17

Expect earnings growth YoY but drop QoQ We expect ROBINS to report a 1Q18 net profit of Bt785mn (+10.6% YoY, -4.3% QoQ).

We expect ROBINS to report a 1Q18 net profit of Bt785mn (+10.6% YoY, -4.3% QoQ) on the back of SSSG, 1.0-2.0%; GPM, 25.2%: and rental income growth 12.9% YoY. Looking forward, we expect greater spending upcountry to support ROBINS’ performance. Although near-term upcountry consumption remains sluggish, its outlook in 2H18 should improve due to i) the government’s Bt100bn budget for rural areas, ii) the lower base of farm prices as the rubber price started tumbling in May 2017 and iii) fresh signs of rice price rebound.

Bt 2015 2016 2017

lmpact

Risks Slower than expected economic recovery. Key financials and valuations Revenue (Btmn) Net Profit (Btmn) Normalized Profit (Btmn) Net Profit Growth (%) Normalized Profit Growth (%) EPS (Bt) DPS (Bt) EPS Growth (%) P/E (X) P/B (X) EV/EBITDA (X) Net Debt to Equity (%) Dividend Yield (%) Return on Average Equity (%)

Dec - 16A 26,078 2,815 2,499 30.7 16.1 2.53 1.25 30.7 25.1 4.4 12.4 6.3 2.0 17.4

Dec - 17A 25,989 2,742 2,717 (2.6) 8.7 2.47 1.25 (2.6) 29.6 4.6 12.4 (0.2) 1.7 15.6

Dec - 18F 27,806 3,400 3,400 24.0 25.2 3.06 1.53 24.0 20.4 3.6 10.6 4.8 2.4 17.4

Dec - 19F 29,472 3,921 3,921 15.3 15.3 3.53 1.77 15.3 17.7 3.2 9.6 0.1 2.8 18.0

Dec - 20F 31,507 4,378 4,378 11.6 11.6 3.94 1.97 11.6 15.9 2.9 8.7 (7.3) 3.2 18.1

Source: Company data, KGI Research

April 11, 2018

*The Company may be issuer of Derivative Warrants on these securities. http://research.kgi.com; Bloomberg: KGIT

Please see back page for disclaimer

1

Thailand

Robinson Department Store

Figure x: 1Q18 earnings proview Bt mn Revenue Gross Profit SG&A Rental income Operating Profit Operating EBITDA Equity Income/(Loss) Net Profit Normalized profit EPS (Bt) Normalized EPS (Bt) Percent Gross margin EBIT margin SG&A/sales

1Q18F 6,380 1,608 1,895 902 870 1,435 128 785 785 0.71 0.71 1Q18F 25.2 13.6 29.7

1Q17 6,271 1,584 1,822 799 775 1,252 147 710 710 0.64 0.64 1Q17 25.3 12.4 29.1

YoY (%) 1.7 1.5 4.0 12.9 12.3 14.6 (13.5) 10.6 10.6 10.6 10.6 YoY (ppts) (0.1) 1.3 0.6

4Q17 QoQ (%) 7,303 (12.6) 1,839 (12.6) 2,119 (10.6) 875 3.0 883 (1.5) 1,436 (0.1) 133 (4.3) 820 (4.3) 795 (1.3) 0.74 (4.3) 0.72 (1.3) 4Q17 QoQ (ppts) 25.2 0.0 12.1 1.5 29.0 0.7

Source: Company data, KGI Research

April 11, 2018

*The Company may be issuer of Derivative Warrants on these securities. http://research.kgi.com; Bloomberg: KGIT

Please see back page for disclaimer

2

Thailand

Robinson Department Store

Figure 2: Company profile

Figure 3: Earnings continueupward during 2018-20

Robinson Department Store (ROBINS) operates Thailand’s largest

Net profit, Btbn (LHS); net profit growth, percent (RHS)

number of department stores and has the greatest market coverage,

5.0

40.0

with a focus on the middle-to-high income market segment. As of

4.0

30.0

2016, its network consists of 11 department stores in Bangkok and 33

3.0

20.0

2.0

10.0

1.0

0.0

department stores in upcountry areas. ROBINS is 54% owned by CRC Group. The company also holds a 29% stake in CRC Sports and a 40% stake in Power Buy, which operate Super Sport and Power Buy specialty retail stores, respectively.

0.0

(10.0) 2016A

2017A

2018F

Net profit Source: Company data

2019F

2020F

Net profit growth

Source: Company data, KGI Research

Figure 4: Historical quarterly SSSG

Figure 5: Secured rental income to improve margin

SSSG, percent

Rental income, Btbn (LHS); operating margin, percent (RHS)

2.6

5.0 0.0

20.0

4.0

0.0

15.0

3.0

(0.1)

10.0

2.0 (2.2) (3.4) (4.4) 1Q16

2Q16

3Q16

4Q16

0.0

(4.7)

1Q17

5.0

1.0

2Q17

3Q17

0.0 2016A

4Q17

Source: Company data, KGI Research

2017A

2018F

Rental income

2019F

Operating margin

Source: Company data, KGI Research

Figure 6: New store expansion every year

Figure 7: Majority stores locatedupcountry

Number of store, stores

Number of store, stores

2015A

2016A

2017A

2018F

Exisiting stores

50

48

46

44

42

39

2

2

2

2

2

3

2019F

16

2020F

19

9

11

2011A

2012A

New stores

23

11

Source: Company data, KGI Research

Figure 8: Company’s PER

Figure 9: Company’s PBV

PER, times

PBV, times

60.0

28

11

2013A 2014A Bangkok

Source: Company data, KGI Research

31

33

35

11

11

11

2015A Upcountry

2016A

2017A

10.0

50.0

8.0

+2.0 sd = 39.1x

40.0

+1.0 sd = 33.0x Average = 26.8x

30.0

+2.0 sd = 6.3x +1.0 sd = 5.3x Average = 4.3x

6.0 4.0

20.0

-1.0 sd = 20.7x

10.0 0.0 2013

2020F

2014

Source: KGI Research

April 11, 2018

2015

2016

2017

2018F

-1.0 sd = 3.2x

2.0

-2.0 sd = 14.5x

2019F

0.0 2013

-2.0 sd = 2.2x 2014

2015

2016

2017

2018F

2019F

Source: KGI Research

*The Company may be issuer of Derivative Warrants on these securities. http://research.kgi.com; Bloomberg: KGIT

Please see back page for disclaimer

3

Thailand

Robinson Department Store

Quarterly Income Statement Income Statement (Bt mn) Revenue Cost of Goods Sold Gross Profit Operating Expenses Other incomes Operating Profit Depreciation of fixed assets Operating EBITDA Non-Operating Income Interest Income Other Non-op Income Non-Operating Expenses Interest Expenses Other Non-op Expenses Equity Income/(Loss) Pre-tax Profit Current Taxation Minorities Extraordinary items Net Profit Normalized Profit EPS (Bt) Normalized EPS (Bt) Margins Gross profit margin Operating EBIT margin Operating EBITDA margin Net profit margin Growth Revenue growth Operating EBIT growth Operating EBITDA growth Net profit growth Normalized profit growth

Mar-15A

Jun-15A

Sep-15A

Dec-15A

Mar-16A

Jun-16A

Sep-16A

Dec-16A

Mar-17A

Jun-17A

Sep-17A

Dec-17A

6,036 (4,545) 1,491 (1,629) 849 711 (454)

5,860 (4,420) 1,440 (1,720) 842 562 (476)

6,031 (4,588) 1,443 (1,844) 860 459 (511)

7,258 (5,469) 1,789 (2,037) 1,026 778 (548)

6,395 (4,787) 1,608 (1,764) 951 795 (492)

6,092 (4,560) 1,532 (1,834) 956 654 (499)

6,237 (4,720) 1,517 (1,902) 960 575 (527)

7,353 (5,506) 1,847 (2,057) 996 786 (545)

6,271 (4,687) 1,584 (1,822) 1,013 775 (477)

6,021 (4,532) 1,489 (1,919) 1,056 627 (503)

6,394 (4,848) 1,546 (1,968) 1,108 686 (540)

7,303 (5,464) 1,839 (2,119) 1,163 883 (553)

1,166 0 0 0 (18) (18) 0

1,037 0 0 0 (19) (19) 0

970 0 0 0 (20) (20) 0

1,326 0 0 0 (22) (22) 0

1,287 0 0 0 (17) (17) 0

1,153 0 0 0 (23) (23) 0

1,102 0 0 0 (23) (23) 0

1,331 316 0 316 (21) (21) 0

1,252 0 0 0 (20) (20) 0

1,129 0 0 0 (16) (16) 0

1,226 0 0 0 (19) (19) 0

1,436 25 0 25 (15) (15) 0

118 811 (143) (54) 0 614 614 0.55 0.55

93 635 (150) (45) 0 440 440 0.40 0.40

90 529 (90) (42) 0 397 397 0.36 0.36

151 906 (151) (54) 0 701 701 0.63 0.63

122 900 (158) (56) 0 686 686 0.62 0.62

147 777 (125) (44) 0 609 609 0.55 0.55

103 656 (111) (35) 0 510 510 0.46 0.46

138 1,219 (162) (47) 0 1,010 694 0.91 0.62

147 902 (147) (46) 0 710 710 0.64 0.64

129 739 (109) (30) 0 601 601 0.54 0.54

97 764 (121) (32) 0 611 611 0.55 0.55

133 1,026 (158) (48) 0 820 795 0.74 0.72

24.7 11.8 19.3 10.2

24.6 9.6 17.7 7.5

23.9 7.6 16.1 6.6

24.6 10.7 18.3 9.7

25.1 12.4 20.1 10.7

25.1 10.7 18.9 10.0

24.3 9.2 17.7 8.2

25.1 10.7 18.1 13.7

25.3 12.4 20.0 11.3

24.7 10.4 18.8 10.0

24.2 10.7 19.2 9.6

25.2 12.1 19.7 11.2

(9.6) (0.6) (7.6) 3.2 3.2

(2.9) (21.0) (11.0) (28.4) (28.4)

2.9 (18.2) (6.5) (9.7) (9.7)

20.4 69.5 36.7 76.4 76.4

(11.9) 2.1 (3.0) (2.1) (2.1)

(4.7) (17.7) (10.4) (11.3) (11.3)

2.4 (12.1) (4.4) (16.3) (16.3)

17.9 36.6 20.7 98.0 36.1

(14.7) (1.4) (5.9) (29.7) 2.3

(4.0) (19.1) (9.8) (15.4) (15.4)

6.2 9.5 8.6 1.7 1.7

14.2 28.7 17.1 34.3 30.2

Source: KGI Research

Peer comparison – Key valuation stats Rating

Target Current price (Bt) price (Bt)

Upside (%)

17 EPS (Bt)

18F EPS 19F EPS 18F EPS (Bt) (Bt) gr. (%)

19F EPS 18F PER 19F PER 18F PBV 19F PBV 18F Div 19F Div 18F ROAE 19F ROAE gr. (%) (x) (x) (X) (X) Yield (%) Yield (%) (%) (%)

CPALL*

OP

92.00

86.75

6.1

2.22

2.65

3.17

19.4

19.6

32.8

27.4

8.4

7.3

1.5

1.8

25.3

26.2

CPN*

OP

93.00

81.00

14.8

2.24

2.71

3.12

21.0

15.0

29.8

25.9

5.1

4.5

1.2

1.3

19.1

17.1

GLOBAL*

N

17.50

15.80

10.8

0.42

0.51

0.59

23.5

14.8

30.7

26.7

3.2

3.0

1.7

1.8

9.7

10.9

HMPRO*

N

14.50

14.50

0.0

0.37

0.43

0.50

16.3

15.5

33.6

29.1

9.8

9.3

2.5

2.9

27.7

30.6

MAKRO

N

42.00

47.00

(10.6)

1.29

1.30

1.46

1.1

12.1

36.1

32.2

11.8

10.8

2.1

2.3

33.4

33.0

ROBINS*

OP

85.00

62.50

36.0

2.47

3.06

3.53

24.0

15.3

20.4

17.7

3.6

3.2

2.4

2.8

16.5

17.7

30.6

26.5

7.0

6.3

1.9

2.2

22.0

22.6

Sector

Overweight

Source: KGI Research

April 11, 2018

*The Company may be issuer of Derivative Warrants on these securities. http://research.kgi.com; Bloomberg: KGIT

Please see back page for disclaimer

4

Thailand

Balance Sheet As of 31 Dec (Bt mn) Total Assets Current Assets Cash & ST Investments Inventories Accounts Receivable Others Non-current Assets LT Investments Net fixed Assets Others Total Liabilities Current Liabilities Accounts Payable ST Borrowings Others Long-term Liabilities Long-term Debts Others Shareholders' Equity Common Stock Capital Surplus Retained Earnings Preferred Stock

Profit & Loss 2016 27,001 5,724 2,255 1,971 1,060 439 38,988 2,737 14,975 21,277 10,804 7,367 4,246 0 3,121 3,437 3,267 169 16,197 1,111 0 10,690 0

2017 27,554 5,383 1,805 2,028 1,363 187 41,023 3,222 15,630 22,171 10,032 8,130 4,858 47 3,224 1,902 1,721 181 17,522 1,111 0 12,043 0

2018F 30,637 6,383 2,639 2,084 1,105 556 45,021 3,770 16,997 24,254 11,151 10,179 4,376 2,000 3,803 972 791 181 19,486 1,111 0 13,743 0

2019F 33,120 7,517 3,554 2,203 1,171 589 47,861 4,342 17,916 25,602 11,392 10,411 4,406 2,000 4,005 980 791 190 21,728 1,111 0 15,704 0

2020F 35,383 8,789 4,558 2,349 1,252 630 49,975 4,946 18,435 26,594 11,147 10,157 4,698 2,000 3,459 990 791 200 24,236 1,111 0 17,893 0

Source: KGI Research

Source: KGI Research

April 11, 2018

Year to 31 Dec (Bt mn) Revenue Cost of Goods Sold Gross Profit Operating Expenses Other Incomes Operating Profit Depreciation of fixed assets Operating EBITDA Non-Operating Income Interest Income Other Non-op Income Non-Operating Expenses Interest Expenses Other Non-op Expenses Equity Income/(Loss) Pre-tax Profit Current Taxation Minorities Extraordinary items Net Profit Normalized Profit EPS (Bt) Normalized EPS (Bt)

2016 26,078 (19,574) 6,504 (7,557) 3,863 2,810 (2,063) 5,700 316 0 316 (84) (84) 0 510 3,552 (556) (181) 0 2,815 2,499 2.53 2.25

2017 25,989 (19,530) 6,459 (7,828) 4,339 2,970 (2,074) 5,576 25 0 25 (71) (71) 0 507 3,431 (534) (155) 0 2,742 2,717 2.47 2.45

2018F 27,806 (20,840) 6,966 (7,894) 4,963 4,034 (2,048) 6,615 0 0 0 (99) (99) 0 533 4,468 (827) (241) 0 3,400 3,400 3.06 3.06

2019F 29,472 (22,030) 7,442 (8,044) 5,303 4,701 (2,003) 7,264 0 0 0 (103) (103) 0 559 5,157 (954) (282) 0 3,921 3,921 3.53 3.53

2020F 31,507 (23,488) 8,019 (8,317) 5,581 5,283 (1,919) 7,789 0 0 0 (72) (72) 0 587 5,798 (1,102) (319) 0 4,378 4,378 3.94 3.94

2016 3,472 2,815 2,063 (1,772) 365 (1,694) (2,149) (570) 1,025 1,778 (1,641) 0 (314) (1,327) 137

2017 4,996 2,742 2,074 0 180 (2,305) (2,496) (486) 677 2,691 (3,089) (0) (1,499) (1,590) (399)

2018F 4,760 3,400 2,048 (929) 241 (4,062) (3,519) (547) 4 698 136 0 1,813 (1,677) 834

2019F 6,178 3,921 2,003 (28) 282 (3,302) (2,729) (573) 0 2,876 (1,961) 0 0 (1,961) 916

2020F 6,834 4,378 1,919 218 319 (2,850) (2,247) (603) 0 3,984 (2,980) 0 (791) (2,189) 1,004

Source: KGI Research

Key Ratios Year to 31 Dec Growth (% YoY) Sales OP EBITDA NP Normalized Profit EPS Normalized EPS Profitability (%) Gross Margin Operating Margin EBITDA Margin Net Profit Margin ROAA ROAE Stability Gross Debt/Equity (%) Net Debt/Equity (%) Interest Coverage (x) Interest & ST Debt Coverage (x) Cash Flow Interest Coverage (x) Cash Flow/Interest & ST Debt (x) Current Ratio (x) Quick Ratio (x) Net Debt (Bt mn) Per Share Data (Bt) EPS Normalized EPS CFPS BVPS SPS EBITDA/Share DPS Activity Asset Turnover (x) Days Receivables Days Inventory Days Payable Cash Cycle Forecast drivers Same store sale growth (%) New store Total store

Robinson Department Store

Cash Flow 2016

2017

2018F

2019F

2020F

3.5 12.0 15.1 30.7 16.1 30.7 16.1

(0.3) 5.7 (2.2) (2.6) 8.7 (2.6) 8.7

7.0 35.8 18.6 24.0 25.2 24.0 25.2

6.0 16.5 9.8 15.3 15.3 15.3 15.3

6.9 12.4 7.2 11.6 11.6 11.6 11.6

24.9 10.8 21.9 10.8 10.4 17.4

24.9 11.4 21.5 10.5 9.9 15.6

25.1 14.5 23.8 12.2 11.1 17.4

25.3 16.0 24.6 13.3 11.8 18.0

25.5 16.8 24.7 13.9 12.4 18.1

0.7 0.1 43.3 43.3 41.3 41.3 0.8 0.5 1,013

0.6 (0.0) 49.2 29.6 70.1 42.2 0.7 0.4 -36

0.6 0.0 46.0 2.2 47.9 2.3 0.6 0.4 943

0.5 0.0 50.9 2.5 59.8 2.9 0.7 0.5 27

0.5 (0.1) 81.9 2.8 95.4 3.3 0.9 0.6 -1,768

2.5 2.3 3.1 14.6 23.5 5.1 1.3

2.5 2.4 4.5 15.8 23.4 5.0 1.3

3.1 3.1 4.3 17.5 25.0 6.0 1.5

3.5 3.5 5.6 19.6 26.5 6.5 1.8

3.9 3.9 6.2 21.8 28.4 7.0 2.0

1.0 14.8 36.7 79.2 (27.6)

0.9 19.1 37.9 90.8 (33.7)

0.9 14.5 36.5 76.7 (25.7)

0.9 14.5 36.5 73.0 (22.0)

0.9 14.5 36.5 73.0 (22.0)

0.1 2.0 44.0

(3.0) 2.0 46.0

4.0 2.0 48.0

3.0 2.0 50.0

3.0 2.0 52.0

Year to 31 Dec (Bt mn) Operating Cash Flow Net Profit Depreciation & Amortization Change in Working Capital Others Investment Cash Flow Net CAPEX Change in LT Investment Change in Other Assets Free Cash Flow Financing Cash Flow Change in Share Capital Net Change in Debt Change in Other LT Liab. Net Cash Flow Source: KGI Research

Rates of Return on Invested Capital Year 2016 2017 2018F 2019F 2020F Year 2016 2017 2018F 2019F 2020F Year 2016 2017 2018F 2019F 2020F

+ COGS Revenue 67.1% 67.2% 67.6% 68.0% 68.5% 1/ Working Capital + Revenue -0.1 0.0 0.0 0.0 0.0 x Operating Margin -18.9% -22.0% -21.2% -20.0% -18.7%

1-

Depreciation Revenue 7.9% 8.0% 7.4% 6.8% 6.1% Net PPE Revenue 0.6 0.6 0.6 0.6 0.6 Capital Turnover 1.0 0.9 0.9 0.9 0.9

+

+

x

Operating Exp. Revenue 43.8% 46.8% 46.2% 45.3% 44.1% Other Assets Revenue 0.5 0.5 0.5 0.5 0.5 Cash Tax Rate 15.6% 15.6% 18.5% 18.5% 29.5%

Operating Margin -18.9% -22.0% -21.2% -20.0% -18.7% = Capital Turnover 1.0 0.9 0.9 0.9 0.9 = After-tax Return on Inv. Capital -3.0% -3.2% -3.7% -3.3% -4.9% =

Source: KGI Research

*The Company may be issuer of Derivative Warrants on these securities. http://research.kgi.com; Bloomberg: KGIT

Please see back page for disclaimer

5

Thailand

Robinson Department Store

Robinson Department Store – Recommendation & target price history Date 20-Jul-17 15-Nov-17 9-Dec-17

90 85 80 75

Rating Outperform Outperform Outperform

Target 67.00 70.00 85.00

Price 56.00 76.25 72.75

70 65 60 55 50 Apr-17

May-17

Jun-17

Jul-17

Aug-17

Sep-17

Share price

Oct-17

Nov-17

Dec-17

Target price lowered

Jan-18

Feb-18

Mar-18

Apr-18

Target price raised

Source: KGI Research

KGI Locations

ChinaShanghai

Room 1507, Park Place, 1601 Nanjing West Road, Jingan District, Shanghai, PRC 200040

Shenzhen

Room 24D1, 24/F, A Unit, Zhen Ye Building, 2014 Bao’annan Road, Shenzhen, PRC 518008

TaiwanTaipei

700 Mingshui Road, Taipei, Taiwan Telephone886.2.2181.8888 ‧ Facsimile886.2.8501.1691

Hong Kong

41/F CentralPlaza, 18 Harbour Road, Wanchai, Hong Kong Telephone 852.2878.6888 Facsimile 852.2878.6800

ThailandBangkok

8th - 11th floors, AsiaCentreBuilding 173 South Sathorn Road, Bangkok10120, Thailand Telephone 66.2658.8888 Facsimile 66.2658.8014

Singapore

4 Shenton Way #13-01 SGX Centre 2 Singapore 068807 Telephone 65.6202.1188 Facsimile 65.6534.4826

KGI's Ratings

Rating

Definition

Outperform (OP)

The stock's excess return over the next twelve months is ranked in the top 40% of KGI's coverage universe in the related market (e.g. Taiwan)..

Neutral (N)

The stock's excess return over the next twelve months is ranked in the range between the top 40% and the bottom 40% of KGI's coverage universe in the related market (e.g. Taiwan)

Under perform (U)

The stock's excess return over the next twelve months is ranked in the bottom 40% of KGI's coverage universe in the related market (e.g. Taiwan).

Not Rated (NR)

The stock is not rated by KGI.

Restricted (R)

KGI policy and/or applicable law regulations preclude certain types of communications, including an investment recommendation, during the course of KGI's engagement in an investment banking transaction and in certain other circumstances.

Excess return = 12M target price/current priceNote

Disclaimer

April 11, 2018

When an analyst publishes a new report on a covered stock, we rank the stock's excess return with those of other stocks in KGI's coverage universe in the related market. We will assign a rating based on its ranking. If an analyst does not publish a new report on a covered stock, its rating will not be changed automatically.

KGI Securities (Thailand) Plc. ( “The Company” ) disclaims all warranties with regards to all information contained herein. In no event shall the Company be liable for any direct, indirect or any damages whatsoever resulting from loss of income or profits, arising by utilization and reliance on the information herein. All information hereunder does not constitute a solicitation to buy or sell any securities but constitutes our sole judgment as of this date and are subject to change without notice.

*The Company may be issuer of Derivative Warrants on these securities. http://research.kgi.com; Bloomberg: KGIT

Please see back page for disclaimer

6

Thailand

Corporate Governance

Corporate Governance Report of Thai Listed Companies Companies with Excellent CG Scoring Stock

Company name

Stock

Company name

Stock

Company name

ADVANC ANAN AOT AP BANPU BCP BTS CK CPF CPN DELTA DTAC EASTW EGCO GFPT GPSC GUNKUL HANA

ADVANCED INFO SERVICE

HOME PRODUCT CENTER SHIN CORPORATION

QH RATCH ROBINS SAMART SAMTEL SCB SCC SCCC SPALI SPRC STEC SVI TCAP THCOM TISCO TMB TOP TRUE

QUALITY HOUSES

ANANDA DEVELOPMENT

TRUE CORPORATION

Stock

Company name

Stock

Company name

Stock

Company name

AAV AMATA BBL BCPG BDMS BEM CENTEL CHG CKP DCC

ASIA AVIATION

ERW GLOBAL GLOW LH MAJOR MAKRO MALEE MTLS NOK RS

THE ERAWAN GROUP

SAWAD SCI SCN SEAFCO SIRI SMT TASCO TKN TVO TWPC

SRISAWAD POWER 1979

HMPRO INTUCH AIRPORTS OF THAILAND IRPC ASIAN PROPERTY DEVELOPMENT IVL BANPU KBANK THE BANGCHAK PETROLEUM KCE BTS GROUP HOLDINGS KKP CH. KARNCHANG KTB CHAROEN POKPHAND FOODS KTC CENTRAL PATTANA LPN DELTA ELECTRONICS (THAILAND) MINT TOTAL ACCESS COMMUNICATION MONO EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMPLANB ELECTRICITY GENERATING PSH GFPT PTT GLOBAL POWER SYNERGY PTTEP GUNKUL ENGINEERING PTTGC HANA MICROELECTRONICS PYLON

IRPC INDORAMA VENTURES KASIKORNBANK KCE ELECTRONICS KIATNAKIN BANK KRUNG THAI BANK KRUNGTHAI CARD L.P.N. DEVELOPMENT MINOR INTERNATIONAL MONO TECHNOLOGY PLAN B MEDIA PRUKSA HOLDING PTT PTT EXPLORATION AND PRODUCTION PTT GLOBAL CHEMICAL PYLON

RATCHABURI ELECTRICITY GENERATING HOLDING ROBINSON DEPARTMENT STORE SAMART CORPORATION SAMART TELCOMS THE SIAM COMMERCIAL BANK THE SIAM CEMENT SIAM CITY CEMENT SUPALAI STAR PETROLEUM REFINING SINO-THAI ENGINEERING AND CONSTRUCTION SVI THANACHART CAPITAL THAICOM TISCO FINANCIAL GROUP TMB BANK THAI OIL

Companies with Very Good CG Scoring

AMATA CORPORATION BANGKOK BANK BCPG BANGKOK DUSIT MEDICAL SERVICES BANGKOK EXPRESSWAY AND METRO CENTRAL PLAZA HOTEL CHULARAT HOSPITAL CK POWER DYNASTY CERAMIC

SIAM GLOBAL HOUSE GLOW ENERGY LAND AND HOUSES MAJOR CINEPLEX GROUP SIAM MAKRO MALEE SAMPRAN MUANGTHAI LEASING NOK AIRLINES RS

SCI ELECTRIC SCAN INTER SEAFCO SANSIRI STARS MICROELECTRONICS (THAILAND) TIPCO ASPHALT TAOKAENOI FOOD & MARKETING THAI VEGETABLE OIL THAI WAH

Companies with Good CG Scoring Stock

Company name

Stock

Company name

Stock

Company name

AMA BA BCH BH

AMA MARINE

BPP CBG LPH SAPPE

BANPU POWER

SQ TPCH

SAHAKOL EQUIPMENT

BANGKOK AIRWAYS BANGKOK CHAIN HOSPITAL BUMRUNGRAD HOSPITAL

CARABAO GROUP

TPC POWER HOLDING

LADPRAO GENERAL HOSPITAL SAPPE

Companies classified Not in the three highest score groups Stock

Company name

Stock

Company name

Stock

Company name

BGRIM CPALL THAI

B.GRIMM POWER

TOA UNIQ WHA

TOA PAINT (THAILAND)

WHAUP WORK

WHA UTILITIES AND POWER

CP ALL THAI AIRWAYS INTERNATIONAL

UNIQUE ENGINEERING AND CONSTRUCTION

WORKPOINT ENTERTAINMENT

WHA CORPORATION

Source: www.thai-iod.com 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 for 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 assessment 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 or when there is any change to the relevant information. Nevertheless, KGI Securities (Thailand) Public Company Limited (KGI) does not confirm, verify, or certify the accuracy and completeness of such survey result.

Thailand

Anti-corruption Progress

Anti-corruption Progress Indicator Level 5: Extended Stock ADVANC ANAN BBL BCH BDMS BIGC CK DCC DELTA DRT EGCO GFPT

Company name ADVANCED INFO SERVICE ANANDA DEVELOPMENT BANGKOK BANK BANGKOK CHAIN HOSPITAL BANGKOK DUSIT MEDICAL SERVICES BIG C SUPERCENTER CH. KARNCHANG DYNASTY CERAMIC DELTA ELECTRONICS (THAILAND) DIAMOND ROOFING TILES ELECTRICITY GENERATING GFPT

Stock GLOBAL GPSC HMPRO IRPC KBANK KCE KKP KTB LPH PACE PTT PTTGC

Company name

Stock ERW GLOW GUNKUL ILINK KTC LH LPN MAKRO MALEE MINT MODERN NOK PTTEP PYLON

Company name

Stock MTLS SCI

Company name

Stock BPP BTS

Company name

SIAM GLOBAL HOUSE GLOBAL POWER SYNERGY HOME PRODUCT CENTER IRPC KASIKORNBANK KCE ELECTRONICS KIATNAKIN BANK KRUNG THAI BANK LADPRAO GENERAL HOSPITAL PACE DEVELOPMENT CORPORATION PTT

Stock Company name QUALITY HOUSES QH RATCH RATCHABURI ELECTRICITY GENERATING HOLDING ROBINS ROBINSON DEPARTMENT STORE THE SIAM CEMENT SCC SANSIRI SIRI SUPALAI SPALI SINO-THAI ENGINEERING AND CONSTRUCTION STEC THANACHART CAPITAL TCAP TISCO FINANCIAL GROUP TISCO THAI METAL TRADE TMT THAI OIL TOP

PTT GLOBAL CHEMICAL

Level 4: Certified Stock AAV AP BA BANPU BCP BH BJCHI CBG CENTEL CHG CKP CPF CPN DTAC

Company name ASIA AVIATION ASIAN PROPERTY DEVELOPMENT BANGKOK AIRWAYS BANPU THE BANGCHAK PETROLEUM BUMRUNGRAD HOSPITAL BJC HEAVY INDUSTRIES CARABAO GROUP CENTRAL PLAZA HOTEL CHULARAT HOSPITAL CK POWER CHAROEN POKPHAND FOODS CENTRAL PATTANA TOTAL ACCESS COMMUNICATION

THE ERAWAN GROUP GLOW ENERGY GUNKUL ENGINEERING INTERLINK COMMUNICATION KRUNGTHAI CARD LAND AND HOUSES L.P.N. DEVELOPMENT SIAM MAKRO MALEE SAMPRAN MINOR INTERNATIONAL MODERNFORM GROUP NOK AIRLINES

Stock SAPPE SAWAD SCB SCN SEAFCO SVI TASCO TKN TMB TRT TRUE TVO

Company name

Stock SPRC

Company name

Stock FN TPCH

Company name

SAPPE SRISAWAD POWER 1979 THE SIAM COMMERCIAL BANK SCAN INTER SEAFCO SVI TIPCO ASPHALT TAOKAENOI FOOD & MARKETING TMB BANK TIRATHAI TRUE CORPORATION THAI VEGETABLE OIL

PTT EXPLORATION AND PRODUCTION PYLON

Level 3: Established Stock BEM CPALL

Company name BANGKOK EXPRESSWAY AND METRO CP ALL

MUANGTHAI LEASING

STAR PETROLEUM REFINING

SCI ELECTRIC

No progress Stock AOT BCPG

Company name AIRPORTS OF THAILAND BCPG

BANPU POWER BTS GROUP HOLDINGS

FN FACTORY OUTLET TPC POWER HOLDING

Source: www.cgthailand.org Disclaimer: The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by the relevant institution as disclosed by the Office of the Securities and Exchange Commission, is made in order to comply with the policy and sustainable development plan for the listed companies. The relevant institution made this assessment based on the information received from the listed company, as stipulated in the form for the assessment of Anti-corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 56-2), or other relevant documents or reports of such listed company . The assessment result is therefore made from the perspective of a third party. It is not an assessment of operation and is not based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after that date or when there is any change to the relevant information. Nevertheless, KGI Securities (Thailand) Public Company Limited (KGI) does not confirm, verify, or certify the accuracy and completeness of the assessment result.