DBS Group Hat trick iew
Transcription
DBS Group Hat trick iew
COMPANY RESEARCH | Results Review October 31, 2014 DBS Group (DBS SP) Share Price: SGD18.33 MCap (USD): 35.3B Singapore Target Price: SGD23.40 (+28%) ADTV (USD): 49M Banks Hat trick BUY Key Data 3Q14 beat again, with fees & trading gains. Third consecutive outperformance. NIM improved. Fee income lifted by IB. Strong credit quality. Ample SGD liquidity. Issued shares (m) Reiterate BUY & SGD23.40 TP, at 13x FY15E EPS. Our preferred pick. Best positioned to benefit from rising rates. Major shareholders: Beat expectations 3m avg turnover (USDm) 48.7 Free float (%) 69.5 2,450 The positives -Temasek 29.1% 19.0 150 18.5 145 18.0 140 17.5 135 17.0 130 16.5 125 16.0 120 15.5 115 15.0 110 14.5 105 14.0 100 13.5 Oct-12 Feb-13 Jun-13 DBS Group - (LHS, SGD) First, NIM inched up 1bp QoQ and 8bps YoY to 1.68%, the highest in nine quarters. This was helped by stable funding costs (-1bp QoQ, +2bps YoY) and wider average asset yields (unchanged QoQ, +10bps YoY). Second, loans grew 1.7% QoQ or 8.3% YoY, at the lower end of guidance. This was led by SGD consumer and corporate loans. Third, SGD deposits grew 1.0% QoQ or 0.9% YoY to SGD137.3b, with a 77.6% LDR (UOB: 95.9%, OCBC: 80.2%). Asset quality was also resilient, with expected pockets of weakness in South and Southeast Asia, mainly India and Indonesia. DBS stands to gain the most with its solid deposit franchise when interest rates rise, in our opinion. Forecasts are unchanged pending sector review. Reiterate BUY and SGD23.40 TP, based on 13x FY15E EPS, consistent with its historical mean since Jan 2005. FY13A 9,098.0 5,180.0 3,485.0 1.4 3.9 0.6 13.0 1.3 3.2 13.63 10.7 0.9 FY14E 9,770.9 5,516.9 3,671.3 1.5 5.3 0.6 12.4 1.2 3.2 14.67 10.6 0.9 FY15E 10,927.9 6,273.4 4,453.9 1.8 21.3 0.6 10.2 1.2 3.3 15.88 11.9 1.0 FY16E 12,799.8 7,675.9 5,615.0 2.3 26.1 0.6 8.1 1.0 3.5 17.54 13.7 1.1 SEE PAGE 10 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS Oct-13 Feb-14 Jun-14 95 DBS Group / Straits Times Index - (RHS, %) 1 Mth 3 Mth 12 Mth Absolute(%) (0.5) 1.4 8.8 1.1 5.5 9.1 Relative to index (%) Maybank vs Market Positive Market Recs Neutral Negative 3 0 Maybank Consensus 19 % +/- Target Price (SGD) Maintain BUY; Top sector pick FY12A 8,514.0 4,900.0 3,343.0 1.4 11.5 0.6 13.6 1.4 3.1 12.98 11.0 1.0 SGD44.9B Market capitalization Share Price Performance 3Q14 core PATMI was up 8.4% QoQ and 16.9% YoY to SGD1.01b, to beat consensus and our estimate of SGD950m. Variances included stronger-than-expected fees and trading gains (+54% QoQ, +44% YoY). As with peers, fees performed better than expected (+10.3% QoQ, +20.1% YoY), especially from IB. UOB’s was up 15.8% QoQ and 16.8% YoY, OCBC’s up 15% and 16%. 9M14 earnings form 78.6% of our full-year estimate. FYE Dec (SGD m) Operating income Pre-provision profit Core net profit Core FDEPS (SGD) Core FDEPS growth(%) Net DPS (SGD) Core FD P/E (x) P/BV (x) Net dividend yield (%) Book value (SGD) ROAE (%) ROAA (%) 18.52/15.66 52w high/low (SGD) (Unchanged) 23.40 20.65 13.3 '14 PATMI (SGDm) 3,951 4,020 (1.7) '15 PATMI (SGDm) 4,454 4,317 3.2 Source: FactSet; Maybank Above PATMI includes one-off items Ng Wee Siang (65) 6231 5838 [email protected] Ng Li Hiang (65) 6231 5840 [email protected] Co. Reg No: 198700034E MICA (P) : 099/03/2012 DBS Group Figure 1: Quarterly profit and loss summary FYE Dec (SGD m) Net interest income 3Q13 1,406.0 2Q14 1,557.0 3Q14 1,602.0 % QoQ 2.9 % YoY 13.9 Non-interest income 744.0 756.0 912.0 20.6 22.6 Operating income Less: Overhead expenses Pre-provision profit Less: Provisions 2,150.0 2,313.0 2,514.0 8.7 16.9 (949.0) (1,054.0) (1,109.0) 5.2 16.9 1,201.0 1,259.0 1,405.0 11.6 17.0 (151.0) (128.0) (177.0) 38.3 17.2 Comments Supported by: a) Further improvements in NIM to 1.68% (+1bp QoQ, +8bps YoY), highest in nine quarters. Stable funding costs (-1bp QoQ, +2bps YoY) and wider average asset yields (unchanged QoQ, +10bps YoY). b) Decent volume growth. Net trading income was SGD271m (2Q14: SGD176m, 1Q14: SGD362m, 3Q13: SGD188m), outpacing its SGD220m average since 1Q09. Like peers, fees also better than expected, up 10.3% QoQ and 20.1% YoY. UOB’s grew 15.8% and 16.8% and OCBC’s, 15% and 16%. Mainly from IBrelated deals. Mainly staff and IT costs from franchise investments. Higher specific allowances for loans of SGD148m (+68% QoQ, +59% YoY). QoQ leap from absence of write-backs for significant exposure, likely in Dubai. Asset quality remained strong with pockets of weakness in South and Southeast Asia, mainly India and Indonesia. NPLs increased to SGD2,425m (+4.7% QoQ, -17.5% YoY), primarily from India. Mainly manufacturing, and building & construction loans. Housing NPLs unchanged at SGD110m. Operating profit 1,050.0 1,131.0 1,228.0 8.6 17.0 Associates Pretax profit 17.0 1,067.0 12.0 1,143.0 6.0 1,234.0 (50.0) 8.0 (64.7) 15.7 (152.0) (14.2) 915.0 (180.0) (15.2) 963.0 (193.0) (15.6) 1,041.0 7.2 27.0 8.1 13.8 (53.0) 862.0 (33.0) 930.0 (33.0) 1,008.0 8.4 (37.7) 16.9 - 39.0 - n.a. n.a. 862.0 969.0 1,008.0 4.0 16.9 Less: Tax Effective tax rate (%) Profit after tax Minorities Core net profit Add: One-off gains Reported net profit New NPA creation increased to SGD349m in 3Q14 (2Q14: SGD158m, 1Q14: SGD412m, 4Q13: SGD275m, 3Q13: SGD291m). 2Q14 included SGD39m gain from divestment of operating entities of Hwang Capital (Malaysia). Source: Company, Maybank KE October 31, 2014 2 DBS Group Figure 2: YTD profit and loss summary SGD m (FYE Dec) Net interest income 9M13 4,115.0 9M14 4,647.0 (YoY %) 12.9 Comments Higher asset volume growth and 5bp improvement in NIM. 9M14 NIM rose to 1.67% on better asset yields (+6bps) and stable cost of funds (+1bp). Non-interest income Operating income 2,617.0 2,588.0 (1.1) 6,732.0 7,235.0 7.5 (2,888.0) 3,844.0 (3,204.0) 4,031.0 10.9 4.9 Less: Provisions (619.0) (456.0) (26.3) Operating profit 3,225.0 3,575.0 10.9 Associates Pretax profit 66.0 3,291.0 31.0 3,606.0 (53.0) 9.6 Less: Tax Effective tax rate (%) Profit after tax (481.0) (14.4) 2,810.0 (572.0) (15.0) 3,034.0 18.9 Minorities Core net profit (155.0) 2,655.0 (106.0) 2,928.0 (31.6) 10.3 44.0 280.0 536.4 2,699.0 3,208.0 18.9 Less: Overhead expenses Pre-provision profit Add: One-off gains Reported net profit Weaker net trading income (-13%) and investment income (-10%). Fee and commission income increased 8%, led by wealth management, cards, investment banking and loan-related activities. From staff and IT costs for franchise investments. Taken down by: 1) general allowances (-62%) on account of slower loan growth of 8.3% YoY in Sep 2014 (Sep 2013: +19.4%), and 2) specific allowances (-2%) on write-backs for significant exposure, likely in Dubai. 8.0 9M14 included the following: 1) SGD39m gain from divestment of operating entities of Hwang Capital (Malaysia). 2) SGD223m gain from sale of remaining stake in Bank of the Philippine Islands. 3) SGD25m donation to National Gallery Singapore. 4) SGD43m from sale of fixed assets. 9M13 net gain of SGD44m came from sale of a HK property. Source: Company, Maybank KE October 31, 2014 3 DBS Group Figure 3: Ratio analysis FYE Dec (%) Asset quality 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 1.5 1.4 1.4 1.4 1.3 1.2 1.2 1.2 1.2 1.1 0.9 1.0 SP/NPLs 45.0 44.4 44.5 44.9 46.3 43.8 44.7 40.7 39.2 40.9 40.4 41.6 GP/NPLs 72.7 74.7 74.1 77.5 79.6 82.0 80.7 80.3 83.2 93.1 106.4 103.7 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.9 1.0 126.0 127.8 129.2 133.9 141.8 141.9 140.9 136.4 135.1 148.0 161.7 159.9 Tier-1 12.9 12.7 12.8 13.4 14.0 12.9 12.9 13.3 13.7 13.1 13.5 13.4 RWCAR 15.8 16.4 15.4 16.5 17.1 15.5 15.5 15.9 16.3 15.3 15.7 15.6 Average lending yields 2.44 2.48 2.49 2.43 2.39 2.37 2.32 2.28 2.30 2.37 2.38 2.38 Average cost of funds 0.76 0.76 0.83 0.82 0.83 0.79 0.75 0.73 0.75 0.76 0.76 0.75 Interest spread 1.68 1.72 1.66 1.61 1.56 1.58 1.57 1.55 1.55 1.61 1.62 1.63 Net interest margin 1.73 1.77 1.72 1.67 1.62 1.64 1.62 1.60 1.61 1.66 1.67 1.68 ROAE - reported 10.2 12.7 10.8 11.2 15.5 11.7 10.8 10.6 11.7 14.4 11.0 11.3 ROAE – cash* 10.2 12.7 10.8 11.2 9.7 11.7 10.3 10.6 9.7 11.6 11.0 11.3 ROAA - reported 0.9 1.1 0.9 1.0 1.4 1.0 0.9 0.9 1.0 1.2 0.9 1.0 ROAA - cash* 0.9 1.1 0.9 1.0 0.8 1.0 0.9 0.9 0.8 1.0 0.9 1.0 Non-interest inc/op inc* 32.7 38.0 31.9 33.5 34.0 42.7 39.0 34.6 32.4 38.2 32.7 36.3 Fee income/op income* 17.8 18.8 19.5 21.1 19.0 21.9 21.1 21.5 20.4 21.2 21.7 22.1 Cost/income ratio^ 46.2 41.7 44.8 45.0 48.1 41.1 43.6 44.1 47.9 43.2 45.6 44.1 Cost/average assets^ 1.04 1.04 0.99 1.01 1.06 1.05 1.04 0.96 1.03 1.01 1.01 1.05 SP/average net loans 0.19 0.09 0.08 0.07 0.15 0.21 0.22 0.16 0.13 0.15 0.14 0.23 GP/RWA 0.90 0.90 0.91 0.95 0.97 0.91 0.96 1.00 1.01 0.99 0.99 0.99 Gross NPA GP/net loans Provision coverage Margins Profitability Liquidity 86.4 84.6 89.0 84.3 83.1 85.2 85.5 85.0 85.0 84.0 86.0 85.8 Net loan growth 4.9 0.9 4.4 (1.3) 4.0 6.2 5.0 3.0 2.9 1.8 1.6 1.7 Customer deposit growth 2.6 3.0 (0.7) 4.2 5.5 3.6 4.6 3.6 2.8 3.1 (0.7) 1.9 Loan-deposit ratio *Excluding one-off items ^Excluding one-off items, goodwill charges and amortisation of intangible assets Source: Company, Maybank KE October 31, 2014 4 DBS Group Key trends in pictures Figure 4: Strong asset quality Figure 5: Provision coverage remained high Gross NPA (LHS) Gross NPA ratio (RHS) (SGD b) 4.4 4.0 (%) (SGD b) 3.6 4.5 3.2 3.6 (%) 180 4.0 160 3.5 140 3.0 120 1.6 2.5 100 1.2 2.0 80 2.8 3.2 Provision coverage (LHS) Provision coverage ratio (RHS) 2.4 2.8 2.0 2.4 2.0 1.6 1.2 0.8 3Q06 3Q08 3Q10 3Q12 3Q14 60 1.5 3Q06 3Q08 3Q10 3Q12 3Q14 Source: Company Source: Company Figure 6: NIM continued to inch up … Figure 7: … though loan growth continued to slow down Net interest income (LHS) Net interest margin (RHS) (SGD m) 1,700 (%) 2.3 1,600 2.2 1,500 2.1 1,400 1,300 2.0 1,200 1.9 1,100 1.8 1,000 1.7 900 1.6 800 700 1.5 3Q06 3Q08 3Q10 3Q12 3Q14 (SGD b) (YoY %) Net loans (LHS) Growth (RHS) 280 260 240 220 200 180 160 140 120 100 80 60 32 28 24 20 16 12 8 4 0 3Q06 3Q08 3Q10 3Q12 Source: Company Source: Company Figure 8: Most liquid SGD book among the three Singapore banks Figure 9: USD LDR highest among the three (SGD b) 160.0 SGD loans (LHS) SGD deposits (LHS) SGD LDR (RHS) 78 75 (%) 80.0 75.0 140.0 70.0 64 100.0 65.0 60 80.0 60.0 57 55 60.0 55.0 50.0 40.0 2008 Source: Company October 31, 2014 2009 2010 2011 2012 USD loans (LHS) USD deposits (LHS) USD LDR (RHS) (SGD b) 100.0 90.0 (%) 170 160 151 80.0 69 120.0 3Q14 2013 3Q14 150 70.0 60.0 50.0 40.0 30.0 140 128 127 130 120 113 98 104 101 110 100 20.0 90 2008 2009 2010 2011 2012 2013 3Q14 Source: Company 5 DBS Group Figure 10: PBT in Greater China Figure 11: Loans by region as at end-Sep 2014 (SGD m) 500 453 450 400 350 312 332 309 300 250 Rest of the world, SGD20.5b (8%) South & Southeast Asia, SGD23.6b (9%) 321 272 236 200 Greater China, SGD95.9b (36%) 215 154 Singapore, SGD125.1b (47%) 150 100 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Source: Company October 31, 2014 Source: Company 6 DBS Group FYE 31 Dec Key Metrics Core P/E (x) Core FD P/E (x) P/BV (x) P/NTA (x) Net dividend yield (%) INCOME STATEMENT (SGD m) Interest income Interest expense Net interest income Net insurance income Net fees and commission Other income Total non-interest income Operating income Staff costs Other operating expenses Operating expenses Pre-provision profit Loan impairment allowances Other allowances Associates & JV income Pretax profit Income tax Minorities Discontinued operations Reported net profit Core net profit BALANCE SHEET (SGD m) Cash & deposits with banks Sec. under resale agreements Derivatives financial assets Dealing securities Available-for-sale securities Investment securities Loans & advances Central bank deposits Investment in associates/JVs Insurance assets Fixed assets Intangible assets Other assets Total assets Deposits from customers Deposits from banks & FIs Derivatives financial instruments Subordinated debt Other securities in issue Other borrowings Insurance liabilities Other liabilities Total liabilities Share capital Reserves Shareholders' funds Preference shares Minority interest Total equity Total liabilities & equity October 31, 2014 FY12A FY13A FY14E FY15E FY16E 13.4 13.6 1.4 1.7 3.1 12.9 13.0 1.3 1.6 3.2 12.2 12.4 1.2 1.4 3.2 10.1 10.2 1.2 1.3 3.3 8.0 8.1 1.0 1.2 3.5 7,621.0 (2,336.0) 5,285.0 0.0 1,579.0 1,650.0 3,229.0 8,514.0 (1,888.0) (1,726.0) (3,614.0) 4,900.0 (417.0) 0.0 124.0 4,607.0 (588.0) (226.0) 0.0 3,793.0 3,343.0 7,986.0 (2,417.0) 5,569.0 0.0 1,885.0 1,644.0 3,529.0 9,098.0 (2,065.0) (1,853.0) (3,918.0) 5,180.0 (770.0) 0.0 79.0 4,489.0 (615.0) (218.0) 0.0 3,656.0 3,485.0 8,879.3 (2,707.3) 6,172.0 0.0 2,021.3 1,577.6 3,598.9 9,770.9 (2,321.8) (1,932.2) (4,254.0) 5,516.9 (701.2) 0.0 51.4 4,867.0 (730.1) (185.7) 0.0 3,951.3 3,671.3 10,804.0 (3,573.1) 7,230.9 0.0 2,231.1 1,465.9 3,697.0 10,927.9 (2,551.8) (2,102.7) (4,654.5) 6,273.4 (859.1) 0.0 53.9 5,468.3 (820.2) (194.2) 0.0 4,453.9 4,453.9 14,623.5 (6,019.2) 8,604.3 0.0 2,536.2 1,659.3 4,195.4 12,799.8 (2,804.5) (2,319.4) (5,123.9) 7,675.9 (968.9) 0.0 58.2 6,765.2 (947.1) (203.1) 0.0 5,615.0 5,615.0 29,406.0 0.0 17,280.0 10,927.8 25,498.2 25,448.0 210,519.0 17,772.0 1,236.0 0.0 1,442.0 4,802.0 38,108.0 353,033.0 253,464.0 15,351.0 17,532.0 5,505.0 5,820.0 9,777.0 0.0 9,586.0 317,035.0 2,442.0 29,295.0 31,737.0 0.0 4,261.0 35,998.0 353,033.0 39,817.0 0.0 17,426.0 8,249.1 19,247.9 33,546.0 248,654.0 18,726.0 1,166.0 0.0 1,449.0 4,802.0 48,742.0 402,008.0 292,365.0 13,572.0 18,132.0 5,544.0 23,115.0 2,156.0 0.0 10,241.0 365,125.0 2,449.7 30,980.3 33,430.0 0.0 3,453.0 36,883.0 402,008.0 43,798.7 0.0 17,774.5 8,897.8 20,761.5 36,874.9 268,546.3 22,409.8 1,217.4 0.0 1,463.5 4,802.0 53,066.7 435,814.4 320,139.7 14,929.2 19,582.6 5,544.0 23,115.0 2,223.7 0.0 10,849.8 396,383.9 2,450.0 33,510.6 35,960.6 0.0 3,470.0 39,430.6 435,814.4 52,558.4 0.0 18,130.0 9,913.8 23,132.1 39,508.9 292,715.5 24,919.7 1,271.3 0.0 1,478.1 4,802.0 62,281.9 478,153.3 355,995.3 16,123.5 21,149.2 5,544.0 23,115.0 2,294.7 0.0 11,499.3 435,721.0 2,450.0 36,494.5 38,944.5 0.0 3,487.8 42,432.3 478,153.3 63,070.1 0.0 18,492.6 11,103.4 25,908.0 42,337.9 321,987.0 27,910.0 1,329.5 0.0 1,492.9 4,802.0 73,324.7 528,688.1 398,714.8 17,413.4 22,841.1 5,544.0 23,115.0 2,369.3 0.0 12,192.6 482,190.1 2,450.0 40,541.5 42,991.5 0.0 3,506.5 46,498.0 528,688.1 7 DBS Group FYE 31 Dec Key Ratios Growth (%) Net interest income Non-interest income Operating expenses Pre-provision profit Core net profit Gross loans Customer deposits Total assets FY12A FY13A FY14E FY15E FY16E 9.5 15.1 9.4 13.2 12.5 8.3 12.5 3.6 5.4 9.3 8.4 5.7 4.2 17.9 15.3 13.9 10.8 2.0 8.6 6.5 5.3 8.0 9.5 8.4 17.2 2.7 9.4 13.7 21.3 9.0 11.2 9.7 19.0 13.5 10.1 22.4 26.1 10.0 12.0 10.6 Profitability (%) Non-int. income/Total income Average lending yields Average cost of funds Net interest margin Cost/income 37.9 2.45 0.81 1.70 42.4 38.8 2.32 0.75 1.62 43.1 36.8 2.37 0.78 1.65 43.5 33.8 2.56 0.93 1.71 42.6 32.8 3.13 1.41 1.84 40.0 Liquidity (%) Loans/customer deposits 83.1 85.0 83.9 82.2 80.8 1.3 1.3 0.2 141.8 1.2 1.2 0.3 135.1 0.9 0.9 0.3 150.6 0.8 0.8 0.3 173.9 0.8 0.8 0.3 175.9 14.0 14.0 17.1 13.7 13.7 16.3 13.1 13.1 15.8 13.1 13.1 15.6 13.2 13.2 15.5 11.0 1.0 9.0 10.7 0.9 8.3 10.6 0.9 8.3 11.9 1.0 8.1 13.7 1.1 8.1 Asset quality (%) Net NPL Gross NPL (SP+GP)/average gross loans Loan loss coverage Capital adequacy (%) CET1 Tier 1 capital Risk-weighted capital Returns (%) ROAE ROAA Shareholders equity/assets Source: Company; Maybank October 31, 2014 8 DBS Group Research Offices REGIONAL HONG KONG / CHINA INDONESIA WONG Chew Hann, CA Regional Head of Institutional Research (603) 2297 8686 [email protected] Howard WONG Head of Research (852) 2268 0648 [email protected] • Oil & Gas - Regional Wilianto IE Head of Research (62) 21 2557 1125 [email protected] • Strategy ONG Seng Yeow Regional Head of Retail Research (65) 6432 1453 [email protected] Alexander LATZER (852) 2268 0647 [email protected] • Metals & Mining - Regional Rahmi MARINA (62) 21 2557 1128 [email protected] • Banking & Finance Jacqueline KO, CFA (852) 2268 0633 [email protected] • Consumer Staples & Durables Aurellia SETIABUDI (62) 21 2953 0785 [email protected] • Property Alexander GARTHOFF Institutional Product Manager (852) 2268 0638 [email protected] ECONOMICS Suhaimi ILIAS Chief Economist Singapore | Malaysia (603) 2297 8682 [email protected] Luz LORENZO Philippines (63) 2 849 8836 [email protected] Tim LEELAHAPHAN Thailand (662) 658 1420 [email protected] Ka Leong LO, CFA (852) 2268 0630 [email protected] * Consumer Discretionary & Auto Karen KWAN (852) 2268 0640 [email protected] • Property & REITs Osbert TANG, CFA (86) 21 5096 8370 [email protected] • Transport & Industrials Ricky WK NG, CFA (852) 2268 0689 [email protected] • Utilities & Renewable Energy Steven ST CHAN (852) 2268 0645 [email protected] • Banking & Financials - Regional JUNIMAN Chief Economist, BII Indonesia (62) 21 29228888 ext 29682 [email protected] Warren LAU (852) 2268 0644 [email protected] • Technology – Regional MALAYSIA WONG Chew Hann, CA Head of Research (603) 2297 8686 [email protected] • Strategy • Construction & Infrastructure Jigar SHAH Head of Research (91) 22 6632 2632 [email protected] • Oil & Gas • Automobile • Cement Desmond CH’NG, ACA (603) 2297 8680 [email protected] • Banking & Finance Anubhav GUPTA (91) 22 6623 2605 [email protected] • Metal & Mining • Capital Goods • Property LIAW Thong Jung (603) 2297 8688 [email protected] • Oil & Gas - Regional • Shipping Urmil SHAH (91) 22 6623 2606 [email protected] • Technology • Media ONG Chee Ting, CA (603) 2297 8678 [email protected] • Plantations - Regional Vishal MODI (91) 22 6623 2607 [email protected] • Banking & Financials Mohshin AZIZ (603) 2297 8692 [email protected] • Aviation - Regional • Petrochem YIN Shao Yang, CPA (603) 2297 8916 [email protected] • Gaming – Regional • Media TAN Chi Wei, CFA (603) 2297 8690 [email protected] • Power • Telcos INDIA SINGAPORE NG Wee Siang Head of Research (65) 6231 5838 [email protected] • Banking & Finance Gregory YAP (65) 6231 5848 [email protected] • SMID Caps – Regional • Technology & Manufacturing • Telcos WONG Wei Sum, CFA (603) 2297 8679 [email protected] • Property & REITs YEAK Chee Keong, CFA (65) 6231 5842 [email protected] • Offshore & Marine LEE Yen Ling (603) 2297 8691 [email protected] • Building Materials • Glove Producers Derrick HENG (65) 6231 5843 [email protected] • Transport (Land, Shipping & Aviation) CHAI Li Shin, CFA (603) 2297 8684 [email protected] • Plantation • Construction & Infrastructure WEI Bin (65) 6231 5844 [email protected] • Commodity • Logistics • S-chips Ivan YAP (603) 2297 8612 [email protected] • Automotive John CHEONG (65) 6231 5845 [email protected] • Small & Mid Caps • Healthcare LEE Cheng Hooi Regional Chartist (603) 2297 8694 [email protected] TRUONG Thanh Hang (65) 6231 5847 [email protected] • Small & Mid Caps Tee Sze Chiah Head of Retail Research (603) 2297 6858 [email protected] October 31, 2014 Isnaputra ISKANDAR (62) 21 2557 1129 [email protected] • Metals & Mining • Cement Pandu ANUGRAH (62) 21 2557 1137 [email protected] • Infrastructure • Construction • Transport Janni ASMAN (62) 21 2953 0784 [email protected] • Cigarette • Healthcare • Retail PHILIPPINES Luz LORENZO Head of Research (63) 2 849 8836 [email protected] • Strategy • Utilities • Conglomerates • Telcos Lovell SARREAL (63) 2 849 8841 [email protected] • Consumer • Media • Cement Rommel RODRIGO (63) 2 849 8839 [email protected] • Conglomerates • Property • Gaming • Ports/ Logistics Katherine TAN (63) 2 849 8843 [email protected] • Banks • Construction Ramon ADVIENTO (63) 2 849 8845 [email protected] • Mining THAILAND Surachai PRAMUALCHAROENKIT (66) 2658 6300 ext 1470 [email protected] • Auto • Conmat • Contractor • Steel Suttatip PEERASUB (66) 2658 6300 ext 1430 [email protected] • Media • Commerce Sutthichai KUMWORACHAI (66) 2658 6300 ext 1400 [email protected] • Energy • Petrochem Termporn TANTIVIVAT (66) 2658 6300 ext 1520 [email protected] • Property Jaroonpan WATTANAWONG (66) 2658 6300 ext 1404 [email protected] • Transportation • Small cap Chatchai JINDARAT (66) 2658 6300 ext 1401 [email protected] • Electronics VIETNAM LE Hong Lien, ACCA Head of Institutional Research (84) 8 44 555 888 x 8181 [email protected] • Strategy • Consumer • Diversified • Utilities THAI Quang Trung, CFA, Deputy Manager, Institutional Research (84) 8 44 555 888 x 8180 [email protected] • Real Estate • Construction • Materials Le Nguyen Nhat Chuyen (84) 8 44 555 888 x 8082 [email protected] • Oil & Gas NGUYEN Thi Ngan Tuyen, Head of Retail Research (84) 8 44 555 888 x 8081 [email protected] • Food & Beverage • Oil&Gas • Banking TRINH Thi Ngoc Diep (84) 4 44 555 888 x 8208 [email protected] • Technology • Utilities • Construction Maria LAPIZ Head of Institutional Research Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 [email protected] • Consumer / Materials TRUONG Quang Binh (84) 4 44 555 888 x 8087 [email protected] • Rubber plantation • Tyres and Tubes • Oil&Gas Jesada TECHAHUSDIN, CFA (66) 2658 6300 ext 1394 [email protected] • Financial Services PHAM Nhat Bich (84) 8 44 555 888 x 8083 [email protected] • Consumer • Manufacturing • Fishery Kittisorn PRUITIPAT, CFA, FRM (66) 2658 6300 ext 1395 [email protected] • Real Estate NGUYEN Thi Sony Tra Mi (84) 8 44 555 888 x 8084 [email protected] • Port operation • Pharmaceutical • Food & Beverage Sittichai DUANGRATTANACHAYA (66) 2658 6300 ext 1393 [email protected] • Services Sector Sukit UDOMSIRIKUL Head of Retail Research (66) 2658 6300 ext 5090 [email protected] Mayuree CHOWVIKRAN (66) 2658 6300 ext 1440 [email protected] • Strategy Padon VANNARAT (66) 2658 6300 ext 1450 [email protected] • Strategy 9 DBS Group APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES DISCLAIMERS This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or 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The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) does not confirm nor certify the accuracy of such survey result. Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of MBKET. MBKET accepts no liability whatsoever for the actions of third parties in this respect. US This research report prepared by MKE is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). 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No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange Commission. Vietnam: Maybank Kim Eng Securities JSC (License Number: 71/UBCK-GP) is licensed under the State Securities Commission of Vietnam.Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay Stock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. 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Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report. Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph 16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission. As of 31 October 2014, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report. MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the companies covered in this report. OTHERS Analyst Certification of Independence The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report. 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Ong Seng Yeow | Executive Director, Maybank Kim Eng Research Definition of Ratings Maybank Kim Eng Research uses the following rating system BUY Return is expected to be above 10% in the next 12 months (excluding dividends) HOLD Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends) SELL Return is expected to be below -10% in the next 12 months (excluding dividends) Applicability of Ratings The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies. 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