Beruflich Dokumente
Kultur Dokumente
Thailand Consumers
Refer to important disclosures at the end of this report
in which Thai companies have exposure to improving Bt US$m Bt 3 mth 12 mth Rating
• We are still cautious on agri-food segment Central Plaza Hotel 45.75 1,863 57.00 (7.6) 16.6 BUY
CP ALL 76.50 20,726 95.00 (11.6) 20.0 BUY
• Our top picks are CPALL, HMPRO, AOT, and CENTEL Home Products
Center 14.00 5,553 17.50 (1.4) 46.6 BUY
Domestic consumption is improving but supported by
Airports of
only certain groups. Domestic consumer spending should Thailand 67.00 28,868 75.00 (2.2) 41.8 BUY
continue to grow in 2018, but this should be fuelled by only Source: DBSVTH, Bloomberg Finance L.P.
middle- to high-income earners. Low-income households still Closing price as of 4 Jul 2018
face sluggish spending due to the high household debt level
and slow recovery in farm income and employment. This Central Plaza Hotel : CENTEL owns and operates hotels and restaurant
chains.
implies an uneven improvement in domestic consumption.
CP ALL : The Company's main business is the operation of
Retail sector: Return to sales growth with margin convenience store retail outlets under the trademark of "7-Eleven" in
expansion. On top of a pick-up in sales growth this year from Thailand.
improving SSSG and store expansion, the story of increasing Home Products Center : Operates a retail chain under “Home Pro”. It
operating margins should be similar to last year, driven by gross sells a complete line of products for renovation, decoration, and repair
of homes and buildings.
margin expansion and lower SG&A to sales. This should drive the
earnings growth of the retailers under our coverage to remain at Airports of Thailand : The national airport operator managing 6
international airports throughout Thailand, including Suvarnabhumi
a double-digit pace in FY18F. Airport in Bangkok.
Tourism sector: Strong Thailand tourism while overseas
tourism is recovering. Given the solid growth in tourism Thailand: Consumer confidence index
demand, hotel room rate hikes are expected, thus providing
higher operating leverage to the hotel operators. Meanwhile, 81
tourism activities in overseas markets like the Maldives and 80
Portugal in which companies under our coverage have exposure 79
78
to are improving.
77
Agri-food sector: Waiting for more meaningful margin 76
recovery. We expect core earnings of agri-food companies to 75
improve sequentially in the following quarters. Nevertheless, we 74
73
are waiting for a more meaningful margin recovery as more time
72
should be needed for the supply rationalisation to have an 71
impact on domestic meat prices and the price uptrend of key raw 70
materials will pose additional key risks to their profitability.
May-16
May-17
May-18
Nov-16
Nov-17
Aug-16
Aug-17
Feb-16
Feb-17
Feb-18
Our top picks are CPALL, HMPRO, AOT, and CENTEL. We like
CPALL and HMPRO for their solid earnings prospects and they
both have been the market leaders in their own sectors Source: UTCC, DBSVTH
respectively. In the tourism space, AOT remains our favourite pick
due to its positive long-term growth profile, while CENTEL is a
beneficiary of both strong tourism activities in Thailand and
rebound in tourism activities in the Maldives. However, we still
have cautious view on agri-food companies like CPF and TU, as
we are waiting for a more meaningful margin recovery.
1Q18 was a good start to the year for GDP growth. months in a row, thus leading to sluggish consumption of
Thailand’s economy grew 4.8% y-o-y in 1Q18 which is a non-durable goods. This implies an uneven improvement in
five-year high (vs 4% in 4Q17), beating all economists’ domestic consumption. Therefore, businesses that are
estimates due to a rebound in farm production output, mainly dependent on low-income local consumers can be
strong exports, and a pick-up in private consumption. All impacted by the limited purchasing power. According to
sectors performed well in 1Q18 as exports rose 9.9% y-o-y Thailand’s labour force, 31.2% of the workers are in
while private consumption gained 3.6%, private investment agriculture industry, followed by wholesale and retail trade
grew 3.1%, and government investment increased 4%. The industry (16.8%), manufacturing industry (16.7%),
tourism sector also did well with the number of international accommodation and food services (7.2%), and construction
tourist arrivals and receipts from foreign tourists jumping by (6.2%). Nevertheless, the government has launched a
15.4% and 19%, respectively. Note that although the multitude of measures this year to support low-income
agricultural production index rose by 8.5%, the agricultural earners.
price index fell 12.3% which led to a contraction in nominal
farm income by 4.8% in the quarter. Thailand: Quarterly nominal farm income
20%
2018 GDP growth target has been revised up. Many
15%
economic houses have revised up Thailand’s 2018 GDP
10%
growth target for strong exports. The Finance Ministry
5%
forecasts the economy will grow by 4.2% in 2018 – the
fastest pace in five years – while the National Economic and 0%
Social Development Board (NESDB) estimates GDP growth in -5%
the range of 4.2-4.7% this year. The economic growth of -10%
more than 4% should be mainly supported by better -15%
external demand (global economic expansion) and -20%
improvement in public and private investments while the
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
4Q15
Page 2
Industry Focus
Has domestic consumption really picked up?
Government measures in 2018 to support purchasing power Consumer confidence index keeps climbing. Consumer
of low-income earners. These include three major schemes for confidence has continued to climb since the middle of last
this year – minimum wage hike, Welfare card project phase I, year, thanks to expectations of economic recovery and the
and Welfare card project phase II. upcoming elections. Nevertheless, confidence dipped in May
this year as consumers were concerned about rising oil prices,
- Minimum wage hike: The minimum wage has been slower-than-expected economic recovery, low commodity
increased by Bt5-22, which varies by provinces, to an prices, and the potential postponement of the national
average of Bt316 per day, which was effective from election.
1 April 2018. This policy was estimated to benefit
c.12% of the labour force (average hike of 3%). Thailand: Consumer confidence index
However, rising unemployment may not lift overall 81
purchasing power despite the minimum wage hike. 80
79
78
- Welfare card project phase I: For those who earn
77
Bt30,000 to Bt100,000 p.a. (6.1m people), Bt200 76
per month of allowance will be given through 75
welfare cards. Meanwhile, another group who earns 74
73
less than Bt30,000 p.a. (5.3m people) will receive 72
Bt300 per month. 71
70
May-16
May-17
May-18
Nov-16
Nov-17
Feb-16
Aug-16
Feb-17
Aug-17
Feb-18
- Welfare card project phase II: This is an additional
scheme to the first phase of the project. The low-
income earners will get an additional Bt100-200 per Source: UTCC, DBSVTH
month of allowance if they participate in job
training.
Page 3
Industry Focus
Has domestic consumption really picked up?
Retailing sales forecast to grow at CAGR of 2.2% over Thailand: Forecasted sales growth in retailing by
2017-2022. According to Euromonitor, retailing sales value store-based vs non-store (%)
is forecast to increase at a five-year CAGR of 2.2% (2017- 6%
1%
Although internet retailing will continue to grow, store-
based retailing operations should still be sustained as most 0%
2018 2019 2020 2021 2022
consumers still prefer to feel and see the products before
Store-based retailing Non-store retailing Retailing
purchasing. In the meantime, many online players are also
starting to roll out their own physical retail stores. Digital Source: Euromonitor, DBSVTH
disruption may affect traditional retail business formats but
brick-and-mortar setups will still have a place in Thailand.
Improving SSSG led by big cities. Overall, we don’t expect
Store renovations, new products, and new store formats will
SSSG to rebound significantly but should be at least
be the key success factors for store-based retailers.
improving for most of the retailers this year. However, this
Eventually, the ability to adapt to changing consumer tastes
should be driven mostly by Bangkok, big provinces, and
will help sustain foot traffic.
tourist cities which have higher purchasing power, as the
domestic consumption rebound is still not broad-based.
The retailers under our coverage have developed their online
Many retailers’ SSSG in the upcountry are still in negative
operations but their online sales currently contribute to less
territory but of a lesser magnitude. For retailers under our
than 1% of total sales and such contribution will be
coverage, CPALL, HMPRO, and BEAUTY were able to deliver
expected to remain in single digits in the next three to five
positive SSSG in 1Q18. However, we see slower SSSG
years. We do not see online competition as a de-rating
recovery for casual-dining restaurants (MINT and CENTEL)
catalyst for Thai retailers.
and modern trade retailers (BJC) as competition remains very
aggressive. SSSG performance in 2H18 looks somewhat
Thailand: Forecasted sales value in retailing by store-
based vs non-store (Bt bn) challenging, in the absence of a low base effect.
4,500
Retailers: Bangkok vs upcountry revenue exposure
4,000
100%
3,500
90%
3,000
80% 40%
2,500 50% 50%
70% 56% 60% 64%
2,000
60% 76%
1,500
50%
1,000
40%
500
30% 60%
- 50% 50%
20% 44% 40%
2017 2018 2019 2020 2021 2022 36%
10% 24%
Store-based retailing Non-store retailing Retailing
0%
CPALL BEAUTY BJC HMPRO MAKRO MINT CENTEL
Source: Euromonitor, DBSVTH
Bangkok Upcountry
Page 4
Industry Focus
Has domestic consumption really picked up?
Retailers: Quarterly SSSG performance introduced the new format of 3K/4K upgraded hypermarket
40.0% model to cater for changes in spending behaviour and
lifestyle. This model will feature 60% retail space and 40%
30.0%
rental space vs normal hypermarkets' 50%/50%. While
20.0%
most of the retailers’ new store formats tend to be in smaller
10.0% sizes, CPALL plans to open stores with bigger sizes and car
park facilities to accommodate those who drive as well.
0.0%
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
-10.0% Retailers: Outlet expansion in Thailand
-20.0%
2018F Outlet expansion plan
CPALL At least 700 stores
-30.0% MAKRO 7 food service shops and 1 eco-plus store
HMPRO 1-2 HomePro stores and eight HomePro S stores
CPALL MAKRO HMPRO BIGC
BEAUTY 22 Beauty Buffet and 12 Beauty Cottage
BEAUTY CENTEL MINT
BJC 8 hypermarkets and 200 Mini BigC
Source: Company, DBSVTH MINT 100 outlets
CENTEL 65 outlets
Page 5
Industry Focus
Has domestic consumption really picked up?
to last year, driven by gross margin expansion and lower Retailers: Sector core earnings to grow 17% y-o-y in
SG&A to sales. Higher gross profit margin is expected to be FY18F
supported by changing the product mix towards high- 3- y ear av erage
Core earnings 2017 2018F y - o- y 1Q18/F Y 18F
margin products and companies’ efforts to increase the sales 1Q/f ull y ear
proportion of house brands. Meanwhile, cost control efforts CPALL 19,908 22,725 14% 24% 24%
and higher operating leverage will lower SG&A to sales. We HMPRO 4,886 5,672 16% 22% 23%
expect core earnings of retailers under our coverage to BJ C 5,211 6,725 29% 20% 23%
increase by 16.9% y-o-y to Bt36.5bn in FY18F. 1Q18 BEAUTY 1,229 1,382 12% 20% 18%
earnings surged 17.5% y-o-y. These made up 22.6% of our T ot al 31,234 36,503 17% 23% 22%
full-year forecast.
Source: Company, DBSVTH
Retailers: Margins performance
50.0%
45.0% Our top picks are CPALL and HMPRO. We like both of them
40.0%
for their solid earnings prospects, being the market leaders
35.0%
in the convenient store and home improvement sectors
30.0%
25.0%
respectively.
20.0%
15.0% Top BUY: CPALL. Still a strong play for domestic retailers.
10.0% CPALL’s cash-and-carry business might be pressured by the
5.0% opening of new stores overseas, which will still contribute
0.0% losses to the group. However, we expect its convenient store
business to still be miles ahead of its competitors and
1Q16
1Q17
2Q16
2Q17
3Q16
3Q17
4Q16
4Q17
1Q17
1Q18
Page 6
Industry Focus
Has domestic consumption really picked up?
International tourist arrivals keep hitting record numbers. Thailand. The Tourism Authority of Thailand expects the
Thailand remains a strong and attractive destination for number of international tourists to Thailand to reach 37m in
tourist, drawing guests from a diverse range of countries. In 2018 (+4.5% y-o-y). From May 2018 onwards, we believe
5M18, total international tourist arrivals to Thailand grew the growth momentum of international arrivals to Thailand
12.6% y-o-y to 16.5 m. Overall, key feeder market arrivals may look weaker than in 4M18, as the Chinese arrivals
have shown good growth patterns. Tourist numbers from growth turned positive in May 2017.
China, Russia, Korea, Japan, and India were up by 27.4%,
21.4%, 6.9%, 5.3% and 15.7% y-o-y in 5M18, respectively. Thailand: Yearly tourist arrivals in Thailand
European visitors (excluding Russians) grew 5.3% while US
visitor arrivals remained resilient, increasing by 6.9%. 38.0
37.0
25%
35.4
32.6
33.0 29.9 20%
Thailand: Monthly tourist arrivals to the country
28.0 26.4
25.2 15%
'000 People 23.0
22.3
19.2 10%
3,400 18.0 16.0
14.4 14.7 14.2
5%
3,000 13.0
2,600 0%
8.0
2,200
3.0 -5%
1,800
-2.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F -10%
1,400
1,000 Foreign visitors (m people)-LHS y-o-y growth- RHS
Aug
Mar
Apr
May
Nov
Sep
Feb
Oct
Dec
Jun
Jul
20% 23%
Germany , 2.8% 21%
France, 2.5% 19%
15% 12% 13%
Korea, 4.5% 12% 12% 12% 16%
J apan, 4.0% Hong Kong, 16%
2.0% 9%
10% 8% 7% 11% 6% 11%
Source: Ministry of Tourism and Sports, DBSVTH 5%
9% 9%
7% 6% 6%
5% 5%
0%
Foreign visitor numbers will continue to grow. Given
the increasing number of low cost carriers and fierce
% tourist arrivals y-o-y growth % tourism receipt y-o-y growth
competition between international airlines, the prices of the
air tickets have become more affordable. This is one of the Source: Ministry of Tourism and Sports, DBSVTH
reasons behind the growing numbers of foreigners to
Page 7
Industry Focus
Has domestic consumption really picked up?
Hotel room rate hikes to boost operating leverage. Thailand: Average room rate of hotels in Thailand
Given the solid growth in tourism demand, average
occupancy rates of all hotels in Thailand have risen from Bt/room
1,900
71.6% in 5M17 to 74.7% in 5M18, according to the Bank 1,800
of Thailand (BOT). Consequently, hotel operators in Thailand 1,700
were also able to increase their average room rates. In 1,600
5M18, the average room rate of hotels in Thailand stood at 1,500
Bt1,674/night, up by 10.4% y-o-y. For downtown Bangkok, 1,400
1,300
the average occupancy rate increased by 2.4ppts y-o-y to
1,200
85% in 1Q18, while the average room rate grew by 7% y-o-
1,100
y to Bt3,749 – the strongest y-o-y increase in the past five 1,000
years. In the same token for hotel operators under our
Jan
Aug
Mar
Apr
May
Nov
Sep
Feb
Oct
Dec
Jun
Jul
coverage, average occupancy rates have remained high and
2015 2016 2017 2018
hotel operators under our coverage were able to raise the
average room rate by a mid-single-digit rate in 1Q18. We Source: BOT, DBSVTH
expect a room rate hike of 4-5% y-o-y for FY18F.
65 1,400,000 21%
20%
1,200,000 18% 17%
55 1,000,000 15%
800,000
13%
8% 10%
45 600,000 7%
8%
Jan
Aug
Mar
Apr
May
Sep
Nov
Feb
Dec
Oct
Jun
Jul
400,000 4%
3% 5%
2015 2016 2017 2018 2%
200,000
- 0%
Source: BOT, DBSVTH 2010 2011 2012 2013 2014 2015 2016 2017 2018F 4M17 4M18
Page 8
Industry Focus
Has domestic consumption really picked up?
Maldives: Monthly foreign tourist arrivals to Maldives hotel operators in the past two to three years. The rise in
bed capacity in the Maldives has outpaced the growth in
160,000 40%
international tourist arrivals since 2015. This has resulted in a
20% 19% 18%
140,000 16% 16%
8% 8% 9%
15% 14% 20% lower average room rate for many hotel operators in the
120,000 0% -2% 0% 2% 4%
0% Maldives, given the aggressive competition. Nevertheless,
100,000
0% the rebound in foreign visitors and decelerated growth of
80,000 -20%
hotel supply have eased the oversupply situation. In 4M18,
international tourist arrivals to the Maldives grew 12.7% y-
60,000
-40% o-y vs a rise in hotel rooms of 10.3%.
40,000
-60%
20,000
- -80%
Maldives: Tourist accommodation capacity
(operational)
45,000 14% 10% 0.2
Internataional tourist arrivals- LHS % growth y-o-y- RHS 6% 8%
4% 5% 0.1
40,000
Source: Maldives’ Ministry of Tourism, DBSVTH 0
35,000
-0.1
30,000
-0.2
Maldives: 2017 tourist arrivals by region 25,000
-0.3
Africa Central/Eastern 20,000
Middle East
1% Americas Europe -0.4
Oceania 5% 4% 15,000
9% -0.5
2%
10,000 -0.6
South Asia Northern Europe
8% 10% 5,000 -0.7
South East Asia
6% Southern Europe - -0.8
10% 2012 2013 2014 2015 2016 2017 4M17 4M18
Page 9
Industry Focus
Has domestic consumption really picked up?
Maldives: Average occupancy rate Portugal: International tourist arrivals to the country
80% 14
12% 13% 15%
11% 11%
74% 12
75% 72% 8% 10%
8%
10
69% 69% 5%
70% 3% 5%
8 3%
65% 63% 6
61% 0%
4
60%
-5%
2
55% -8%
0 -10%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
50%
2014 2015 2016 2017 4M17 4M18
International tourist arrivals (mpeople)- LHS % growth y-o-y- RHS
Page 10
Industry Focus
Has domestic consumption really picked up?
Our top picks are AOT and CENTEL. AOT remains our
favourite pick due to its positive long-term growth profile,
while CENTEL is a beneficiary of strong tourism in Thailand
and the rebound in tourism activities in the Maldives.
Top BUY: AOT. Strengthening its long-term growth profile.
AOT is currently facing capacity constraints at some of its
airports which may cap its short-term growth. However,
several factors such as airport capacity expansion, new duty
free/commercial concessions, airport city projects and
managing additional airports under the Department of
Airports will underpin its long-term growth.
Page 11
Industry Focus
Has domestic consumption really picked up?
Jan
Aug
Mar
Apr
May
Nov
Sep
Feb
Oct
Dec
Jun
Jul
US where processed seafood consumption is quite stagnant
2013 Swine 2014 Swine 2015 Swine
and the competitive landscape is very fierce.
2016 Swine 2017 Swine 2018 Swine
Aug
Jan
Mar
Apr
May
Sep
Nov
Feb
Oct
Dec
Jun
Jul
TU's sales CPF's sales TU's sales growth CPF's sales growth
2013 Broiler 2014 Broiler 2015 Broiler
Source: Company, DBSVTH 2016 Broiler 2017 Broiler 2018 Broiler
Domestic meat prices to remain tepid in 2H18. The uptick Source: Company, DBSVTH
of domestic swine price in 2Q18 was unreal as it was
driven by the government’s intervention efforts. We expect Swine price recovery in Vietnam looks sustainable. The
the price to weaken thereafter, due to the lack of further recent rebound in swine price in Vietnam is expected to be
government measures and the fact that the impact of sustained, as CPF has also seen a sharp drop in feed sales
supply rationalisation may take another 1-2 quarters to that implies that a large portion of supply in the country
filter though. Therefore, the recent recovery in domestic has been cut. Additionally, swine price in Vietnam has
swine price is not sustainable. We have a similar view on started to retreat since Dec 2016 while the production
broiler price in Thailand, i.e. it would take another 1-2 cycle of swine is 1-1.5 years, thus indicating the oversupply
quarters for the price to recover. It may take a while for situation should have already ended. Nevertheless, we
Brazil’s supply cut and meaningful exports to new markets should watch out for risk of excess Chinese swine supply
like China to take effect. Therefore, domestic broiler prices flowing into Vietnam as the current swine price in China is
are still pressured by excess supply from Brazil that made its Bt50/kg, much lower than Vietnam’s Bt67/kg.
way into Asian markets after Europe banned such imports.
Page 12
Industry Focus
Has domestic consumption really picked up?
CPF: Swine price in Vietnam Tuna raw material price likely to rise in 3Q18. The skipjack
tuna raw material price has retreated from USD2,033/ton
VND/kg
in 4Q17 to USD1,577/ton in 1Q18. Lower average
60,000 inventory costs since Dec last year should benefit seafood
50,000 operators, particularly TU (whose inventory days stand at
40,000
118 days), in 2Q18. Nevertheless, tuna raw material price
has risen to the average of USD1,667/ton in 2Q18, and is
30,000
expected to head north in 3Q18 due to the ban on the use
20,000 of fishing aggregate devices (FAD) in the quarter.
10,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TU: Skipjack tuna raw material price
2013 Swine 2014 Swine 2015 Swine
key raw material, i.e. corn, is in an uptrend. Corn price rose 1,300
1,100
by 23.5% y-o-y in 1Q18 and continued to increase by 29.7% 900
CPF: Corn price in Thailand 2012 2013 2014 2015 2016 2017 2018
Apr
Nov
Jan
Aug
Sep
Dec
Oct
Feb
Jun
Jul
2016 Corn 2017 Corn 2018 Corn TU: Salmon raw material price
Source: Company, DBSVTH
NOK/kg
80
CPF: Soybean price in Thailand 70
60
Bt/kg 50
22 40
20 30
18 20
10
16
0
14
12
10
Jan
Aug
Mar
Apr
May
Nov
Sep
Feb
Oct
Dec
Jul
Jun
Page 13
Industry Focus
Has domestic consumption really picked up?
Gross margin is on a recovery trend, but the rebound is still Tourism: Sector core earnings to grow 24% y-o-y in
muted. We believe 1Q18 marked a trough for agri-food FY18F
companies under our coverage. We expect their core 3- y ear av erage
Core earnings 2017 2018F y - o- y 1Q18/F Y 18F
1Q/f ull y ear
earnings to improve sequentially in the following quarters.
CPF 5,694 9,160 61% -1% 27%
Nevertheless, we are waiting for a more meaningful margin
TU 6021 5374 -11% 13% 24%
recovery, as more time should be needed for supply
T ot al 11,715 14,534 24% 4% 25%
rationalisation to have an impact on domestic meat prices
and the price uptrend of key raw materials, particularly corn, Source: Company, DBSVTH
will pose additional key risks to their profitability.
Meanwhile, the volatility of tuna and salmon raw material
prices, and stiff competition are expected to weigh on TU’s We have HOLD calls on both CPF and TU. We prefer CPF
operations. to TU as the former’s signs of recovery are starting to
emerge. Nevertheless, we are waiting for a more
meaningful margin recovery for CPF before upgrading our
Sector earnings to grow 24% this year. We expect sector call on the stock.
core earnings to increase 24.1% y-o-y to Bt14.5bn in 2018.
This is after earnings plummeted 85.7% y-o-y in 1Q18. This
made up only 4% of our full-year forecast. However, we
expect the core earnings of agri-food companies to improve
in the sequential quarters.
Page 14
Industry Focus
Has domestic consumption really picked up?
DBSVTH recommendations are based an Absolute Total Return* Rating system, defined as follows:
STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)
BUY (>15% total return over the next 12 months for small caps, >10% for large caps)
HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)
FULLY VALUED (negative total return i.e. > -10% over the next 12 months)
SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)
Share price appreciation + dividends
Sources for all charts and tables are DBSVTH unless otherwise specified.
GENERAL DISCLOSURE/DISCLAIMER
This report is prepared by DBS Vickers Securities (Thailand) Co Ltd (''DBSVTH''). This report is solely intended for the clients of DBS Bank Ltd, its
respective connected and associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in
any form or by any means or (ii) redistributed without the prior written consent of DBS Vickers Securities (Thailand) Co Ltd (''DBSVTH'').
The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBS
Bank Ltd, its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively,
the “DBS Group”) have not conducted due diligence on any of the companies, verified any information or sources or taken into account any other
factors which we may consider to be relevant or appropriate in preparing the research. Accordingly, we do not make any representation or
warranty as to the accuracy, completeness or correctness of the research set out in this report. Opinions expressed are subject to change without
notice. This research is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific
investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees
only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial
advice. The DBS Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit)
arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not
to be construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or persons
associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group, may have
positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and
other banking services for these companies.
Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can
be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments.
The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed, it may
not contain all material information concerning the company (or companies) referred to in this report and the DBS Group is under no obligation to
update the information in this report.
This publication has not been reviewed or authorized by any regulatory authority in Singapore, Hong Kong or elsewhere. There is no planned
schedule or frequency for updating research publication relating to any issuer.
The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and
assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on
which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual
results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED
UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that:
(a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and
(b) there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk
assessments stated therein.
Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets.
Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies)
mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the
commodity referred to in this report.
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offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months and does not engage
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ANALYST CERTIFICATION
The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the
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compensation was, is, or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The research analyst (s)
primarily responsible for the content of this research report, in part or in whole, certifies that he or his associate 1 does not serve as an officer of the
issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the management company of the real
estate investment trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is responsible for the
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1
An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust of
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accustomed or obliged to act in accordance with the directions or instructions of the analyst.
2
Financial interest is defined as interests that are commonly known financial interest, such as investment in the securities in respect of an issuer or a
new listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This term
does not include commercial lending conducted at arm's length, or investments in any collective investment scheme other than an issuer or new
listing applicant notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant.
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