Morning Matters - RHB OSK Securities (Thailand)
Transcription
Morning Matters - RHB OSK Securities (Thailand)
17-Feb-2015 - Morning Matters E F E A F E WHAT’S INSIDE SET Intra-Day Graph ON THE PLATTER Source: Bloomberg Key Market Indices (16 February 2015) SET SET50 SET100 Dow Jones S&P500 Nasdaq FTSE FSSTI Hang Seng Nikkei KLCI SHANGHAI SE JCI SET PE (x) P/BV (x) Yield (%) Value Chg % Chg % YTD 1608.04 1064.75 2367.42 18019.35 2096.99 4893.84 6857.05 3427.16 24726.53 17926.89 1808.89 3222.36 5325.50 -7.85 -6.27 -13.53 -0.5% -0.6% -0.6% UNCHG UNCHG UNCHG UNCHG UNCHG UNCHG -16.47 0.94 43.99 -114.83 7.94 18.54 -48.67 -0.2% 0.0% 0.2% -0.6% 0.4% 0.6% -0.9% 7.4% 6.4% 7.0% 1.1% 1.9% 3.3% 4.4% 1.8% 4.8% 2.7% 2.7% -0.4% 1.9% 5-yr avg 2012 2013 2014F 15.7 2.1 3.3 18.5 2.3 2.8 15.6 2.1 2.9 13.6 2.0 3.3 Key Statistics Economic Highlights : Growth Picks Up in 4Q But Momentum Remains Weak, GDP Forecast Lowered To 3.4% For 2015 Thailand‟s real GDP growth picked up to 2.3% y-o-y in 4Q 2014, from +0.6% in the 3Q and compared with +0.4% registered in 2Q. At the same time, the 4Q GDP figure also came in above our forecast of +1.7% and the consensus‟ median estimate of +2.0%. For the full-year of 2014, the Thai economy registered the slowest growth in three years of 0.7%, slowing from +2.9% in 2013. As government spending was slow to pick-up while momentum of the private consumption and investment remained weak in 4Q, we are lowering our forecast for economic growth to 3.4% in 2015, from 4.0% expected previously. Sino-Thai Engineering & Construction (STEC TB;FVTHB31.50-Buy) : FY14 Earnings Flat And In Line As we expected, STEC booked FY14 earnings of THB1.52bn (+1.5% YoY) as it continued to recognise revenues from MRT and gas power plant projects. As such, we maintain BUY, with a TP of THB31.50 (21% upside). We expect the Pink and Orange MRT Lines and one double-track project (Jira junction-Khonkaen) totaling c.THB177bn, which will be up for bids in 1H15, to be major catalysts supporting its share price. MEDIAS HIGHLIGHTS NBTC urged to change fee system NESDB argues for cut in policy rate to lower business costs Digital TV hikes ad spending by 16% SET Value by investor Type: Daily Buy (THBm) Sell (THBm) Net (THBm) 3,836.73 3,453.88 382.85 Institution 3,525.97 3,912.96 -386.99 Proprietary 7,459.86 8,970.63 -1,510.78 Foreign 30,144.89 28,629.97 1,514.92 Retail SET Value by investor Type MTD (THBm) YTD (THBm) Institution 306.79 10,091.45 Proprietary 333.12 8,593.60 Foreign 6,189.16 1,889.28 Retail -6,829.08 -20,574.34 SET50 Index Future Long Short Net MTD YTD Institution 13,279 12,952 327 6,316 -23,699 Foreign 8,325 6,765 1,560 -6,656 5,463 Local 26,486 28,373 Foreign Fund Flows (USDm) Last MTD -46.4 189.6 -1,887 YTD 61.9 340 18,236 YOY 7,070.7 See important disclosures at the end of this report Powered by Enhanced Datasystems‟ EFATM Platform T A F xE T A tF x T M A t xa T R tc xi G rt s ro V k o |a s w l| t u h e | | On The Platter On The Platter Siam Commercial Bank (SCB TB;FVTHB198.00-Neutral) : Measured Optimism On 2015 Outlook Economic : Growth Pickstake Up over in 4Q Momentum Remains Weak, SCB‟s new Highlights captains who will officially theBut reins from Apr 2015 are already GDP Forecast Lowered To 3.4% For 2015 hard at work, mapping out the bank‟s core thrusts for 2015. Maintain NEUTRAL and Thailand‟s up to 2.3% y-o-yof in the 4Q 2014, fromwould, +0.6% in in our the THB198.00real TP GDP (1% growth upside).picked Successful execution strategies 3Q and compared with +0.4% registered in 2Q. At the same time, the 4Q GDP figure view, sustain profitability growth. Management also unveiled its targets for 2015 that also came in above our stronger forecast of +1.7% growth and theagainst consensus‟ medianofestimate of broadly point to slightly earnings a backdrop moderate +2.0%. For the full-year of 2014, the Thai economy registered the slowest growth in economic recovery. three years of 0.7%, slowing from +2.9% in 2013. As government spending was slow to pick-up momentum of the private consumption and investment remained Veena Naidu while +66 2862 9752 ([email protected]) weakLeong in 4Q,+603 we 9207 are lowering our forecast for economic growth to 3.4% in 2015, from Fiona 7638 ([email protected]) 4.0% expected previously. Economist: Vincent Loo Yeong Hong | +603 9280 2172 Sino-Thai Engineering & Construction (STEC TB;FVTHB31.50-Buy) : FY14 Earnings Flat And In Line As we expected, STEC booked FY14 earnings of THB1.52bn (+1.5% YoY) as it continued to recognise revenues from MRT and gas power plant projects. As such, we maintain BUY, with a TP of THB31.50 (21% upside). We expect the Pink and Orange MRT Lines and one double-track project (Jira junction-Khonkaen) totaling c.THB177bn, which will be up for bids in 1H15, to be major catalysts supporting its share price. Analyst : Veena Naidu License No. 24418, +66 2862 9752 ([email protected]) Chun Phokaisawan Medias Highlights NBTC urged to change fee system Digital TV operators have called on the National Broadcasting and Telecommunications Commission (NBTC) to change the collection of digital TV licence fees to a flat rate throughout the 15-year period. The Radio and Television Broadcasting Professional Federation (RTBPF) yesterday submitted a letter to the NBTC on behalf of digital TV operators. They also want to delay the 2% payment to the universal service obligation fund. Meanwhile, the regulator wants to update the second licence fee payment of 24 digital TV operators, which is due in May, before making a decision. RTBPF president Chamnan Siritan said digital TV operators wanted the flat-rate licence fee because they were affected by the delay in the digital TV subsidy coupon distribution scheme and the lack of a national campaign to build awareness among the public. The RTBPF also wants the NBTC to consider extending the licence term to 20 years from 15 in order to compensate for loss of opportunities caused by the delayed subsidy voucher distribution. (Bangkok Post) Recommendation: This is positive for digital TV operators. We rate Workpoint and RS as BUY with BEC as SELL. See important disclosures at the end of this report 2 NESDB argues for cut in policy rate to lower business costs THE NATIONAL Economic and Social Development Board (NESDB) believes that the policy interest rate could be lowered to help cut business costs and support the current initial stage of economic recovery. It also urged the Bank of Thailand to come up with measures to mitigate the strength of the baht, which is deemed to be stronger than other currencies in the region. The NESDB said the gross domestic product expanded by 2.3 per cent year on year in the fourth quarter of 2014, after an increase of 0.6 per cent in the third quarter. It expects that economic expansion in the first quarter of 2015 will be better than in the final quarter of last year. Overall, GDP on a quarter-toquarter basis increased by 1.7 per cent in the final three months of the year, after seasonal adjustment, resulting in the actual GDP growth in 2014 of 0.7 per cent. The NESDB has maintained that the economy will expand by 3.5-4.5 per cent this year despite cutting its export-growth prediction for 2015 from 4 per cent to 3.5 per cent. (The Nations) Recommendation: RHB Economic team expects the BOT to keep interest rates unchanged at the current level of 2.00% in 2015, as emerging financial markets face headwinds following the end of US quantitative easing and an imminent interest rate hike by the US Federal Reserve in 2015. However, there is a possibility of the BOT cutting rates by 25 basis points in 1H 2015, should the economic recovery for 2015 come in weaker than anticipated. Digital TV hikes ad spending by 16% ADVERTISING expenditure in January was up 16 per cent year on year to Bt9.52 billion, mainly thanks to higher spending on digital TV, transit media and the Internet, according to the latest report by Nielsen (Thailand). The findings show that advertising spending in the analog, cable and satellite TV platforms had significantly shifted to terrestrial-based digital television. Cable and satellite TV operators suffered a huge combined drop in advertising revenue of 62.26 per cent - from Bt795 million to Bt300 million - in January year on year, while for the analog TV incumbents the decline was 9.85 per cent (from Bt4.71 billion to Bt4.24 billion). The 24 digital TV players registered a combined Bt2.51 billion in advertising revenue for the new category. The results supported previous comments made by Wannee Ruttanaphon, chairwoman of IPG Mediabrands and the Media Agency Association of Thailand, who said the broadcasting industry would be changed by the birth of digital TV. Leading entertainment firms and TV production houses obtained licences from the broadcasting regulator to operate digital TV channels, resulting in quality programmes being offered to attract viewers and advertisers. (The Nations) Recommendation: The high percentage growth in January at 16.5% was come from the new method of calculating the total advertising expenditure. This year, Nielsen (Thailand) includes the advertising in Cable/Satellite TV (56 channels) and Digital TV (21 Channels) which making total advertising expenditure improved. We expect digital TV will be the key driver of total advertising expenditure during 2015. See important disclosures at the end of this report 3 Outperform AMATA IVL PTT PTTEP SIRI STEC WHA Current Target Upside/ Rec. Price Price Downside PE (x) Yield (%) Buy Buy Buy Buy Buy Buy Trading Buy (Bt) 18.40 25.25 362.00 116.50 2.00 25.50 34.75 (Bt) 21.00 29.90 384.97 142.61 2.60 31.50 38.00 (%) 14.1 18.4 6.3 22.4 30.0 23.5 9.4 2014F 8.1 4.8 15.6 149.3 23.1 3.6 22.3 2014F 0.6 0.3 13.0 7.0 0.2 0.6 0.1 Top 10 Ranking Top 10 Most Active Value Symbol AOM Value ('000 Baht) SCC 1,894,768 SUPER 1,601,317 TPIPL 1,420,998 ITD 1,359,557 JASIF 1,241,108 SENA 1,097,411 TRC 1,050,534 ADVANC 1,002,661 PTT 979,089 IFEC 892,543 Top 10 Most Active Volume Symbol AOM Value (Shares) NPARK 802,469,400 TPIPL 479,582,300 IEC 355,268,800 SENA 263,116,000 SIRI 241,618,700 BMCL 191,868,900 GEL 179,140,000 TGPRO 145,127,800 ITD 144,045,400 MILL 141,342,200 Last 510 21.90 2.94 9.45 9.70 4.12 11.20 243.00 362.00 18.20 Last 0.05 2.94 0.05 4.12 2 2.04 1.11 0.49 9.45 1.89 Change(%) +12.00 (+2.41%) +1.30 (+6.31%) -0.02 (-0.68%) +0.10 (+1.07%) -0.30 (-3.00%) +0.26 (+6.74%) -0.40 (-3.45%) -5.00 (-2.02%) -7.00 (-1.90%) +0.80 (+4.60%) Top 10 Gainers Symbol AOM Value (Shares) PPP 84,490,000 CPH 5,722,800 GJS 25,523,600 GL 20,666,400 SAWANG 3,200 SPACK 19,491,700 MCOT 7,841,300 SGP 20,635,000 GSTEL 50,047,900 METCO 44,500 Last 8.6 15.40 0.06 7.70 16.70 3.40 18.80 12.70 0.14 230.00 Change(%) +1.80 (+26.47%) +2.60 (+20.31%) +0.01 (+20.00%) +0.90 (+13.24%) +1.60 (+10.60%) +0.32 (+10.39%) +1.70 (+9.94%) +1.10 (+9.48%) +0.01 (+7.69%) +16.00 (+7.48%) Change(%) - (-) -0.02 (-0.68%) - (-) +0.26 (+6.74%) - (-) +0.02 (+0.99%) - (-) +0.02 (+4.26%) +0.10 (+1.07%) -0.03 (-1.56%) Top 10 Losers Symbol AOM Value (Shares) WIIK 8,943,100 INSURE 600 TCOAT 2,600 TLUXE 8,954,200 DTCI 1,100 TPP 167,200 TSTE 19,100 TU-PF 12,300 SAMTEL 2,910,700 ASIAN 2,237,000 Last 3.96 34.50 22.10 11.70 38.00 40.00 19.50 2.12 25.75 3.84 Change(%) -0.64 (-13.91%) -5.50 (-13.75%) -3.15 (-12.48%) -1.20 (-9.30%) -3.25 (-7.88%) -3.25 (-7.51%) -1.50 (-7.14%) -0.16 (-7.02%) -1.75 (-6.36%) -0.26 (-6.34%) Source: Stock Exchange of Thailand (SET) See important disclosures at the end of this report 4 Recent Stories To access the report, please click on the following link: Sino-Thai Engineering & Construction : FY14 Earnings Flat And In Line Airports of Thailand : Earnings Could Have Been Better Total Access Communications : Light At The End Of The Tunnel Who Is Buying Into The Thai Market? Advanced Info Services : Chugging Along Higher Offtake Of Natural Gas To Malaysia Sriracha Construction : Attractive Valuation With Strong Fundamentals Thai Stanley Electric : Pessimistic View From Management Supalai PCL : High Exposure To a Slow Upcountry Market 4Q Current Account Recorded Largest Surplus In Five Years PTT : BCP Divestment Moves Forward January Prices Deflate For The First Time In Five Years Money Supply And Private Credit Trended Lower In 2014 Glow Energy : 2014 Earnings Jump, In Line With Expectation End Of A Cycle, Not The End Of Hydrocarbons TISCO Financial Group PCL : Modest Recovery in Underlying Operations VGI Global Media : Weak 3QFY15 Results During The High Season Manufacturing Output Inching Closer To Stabilisation Bangkok Dusit Medical : Expanding To 50 Hospitals By 2017 BOT Kept Rate Unchanged At 2.00% For Seventh Straight Meeting Exports Recovered Slightly In December, But Still Resulted In A Contraction For 2014 Quality Houses : Reaffirms Healthy 2015 Guidance TRUE Corp : Waiting For A Stronger Tone Pruksa Real Estate : Unexciting 2015 Target And Earnings Outlook 4Q14 – What a Quarter! Leaving The Worst Year Behind Telecommunications : Staying Connected – Jan 2015 Krung Thai Bank : 4Q14 Dampened By Higher Provisions And Opex LPN Dev : Best Earnings Growth Estimate Despite Lower Guidance Bangkok Bank : Asset Quality Stable While NIM Slipped In 4Q14 Kasikornbank : Opex Hike Overshadows NIM Improvement Land and Houses : Better Margins, Divestment Gains Key Catalysts For 2015 Siam Commercial Bank : 4Q14 Impacted By Higher Opex And Provisions Thailand Aviation - Be Selective In Picking Winners Ananda Development (ANAN TBFVTHB4.20-Buy) : Second-Highest Condo Presales In 2014 Attractive Opportunities Amidst Volatility Asia Aviation : Aggressive Expansion Ahead Airports of Thailand : Take Profit On Steep Valuation Nok Airlines : Not The Best But Yields The Highest Upside Returns Thai Airways : Turnaround In Play Going For „Seconds‟ Presales Dip In 2014 But Set To Grow c.10% YoY In 2015 PTT : LPG Price Adjustment Positive For PTT PTT Global Chemical : Minimal Impact From LPG Price Adjustment Bangkok Bank : Ending 2014 On a Stronger Note Kasikornbank : Guiding For Healthy 4Q14 Performance The Ten Tycoons Krung Thai Bank : Expect Slight Beat Of 4Q14 Earnings Estimate Thailand Research Team Veena Naidu Directo [email protected] +662 862- 752 Wanida Geisler Senior Vice President Head of Resea ch [email protected] +662 862-9748 Kannika Siamwalla, CFA Head of Regional Oil & Gas [email protected] +662 862-9744 Chun Phokaisawan Senior Associate Research [email protected] +662 862-9999 Vikran Lumyai Senior Associate Research [email protected] +622 862-9999 Thanapol Withayaruksun Associate Research [email protected] +622 862-9999 Naruedom Mujjalinkool Associate Research [email protected] +622 862-9999 See important disclosures at the end of this report 5 RHB Guide to Investment Ratings Buy: Share price may exceed 10% over the next 12 months Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain Neutral: Share price may fall within the range of +/- 10% over the next 12 months Take Profit: Target price has been attained. Look to accumulate at lower levels Sell: Share price may fall by more than 10% over the next 12 months Not Rated: Stock is not within regular research coverage Disclosure & Disclaimer All research is based on material compiled from data considered to be reliable at the time of writing, but RHB does not make any representation or warranty, express or implied, as to its accuracy, completeness or correctness. No part of this report is to be construed as an offer or solicitation of an offer to transact any securities or financial instruments whether referred to herein or otherwise. This report is general in nature and has been prepared for information purposes only. It is intended for circulation to the clients of RHB and its related companies. Any recommendation contained in this report does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This report is for the information of addressees only and is not to be taken in substitution for the exercise of judgment by addressees, who should obtain separate legal or financial advice to independently evaluate the particular investments and strategies. RHB, its affiliates and related companies, their respective directors, associates, connected parties and/or employees may own or have positions in securities of the company(ies) covered in this research report or any securities related thereto, and may from time to time add to, or dispose off, or may be materially interested in any such securities. Further, RHB, its affiliates and related companies do and seek to do business with the company(ies) covered in this research report and may from time to time act as market maker or have assumed an underwriting commitment in securities of such company(ies), may sell them or buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory or underwriting services for or relating to such company(ies), as well as solicit such investment, advisory or other services from any entity mentioned in this research report. RHB and its employees and/or agents do not accept any liability, be it directly, indirectly or consequential losses, loss of profits or damages that may arise from any reliance based on this report or further communication given in relation to this report, including where such losses, loss of profits or damages are alleged to have arisen due to the contents of such report or communication being perceived as defamatory in nature. The term “RHB” shall denote where applicable, the relevant entity distributing the report in the particular jurisdiction mentioned specifically herein below and shall refer to RHB Research Institute Sdn Bhd, its holding company, affiliates, subsidiaries and related companies. All Rights Reserved. This report is for the use of intended recipients only and may not be reproduced, distributed or published for any purpose without prior consent of RHB and RHB accepts no liability whatsoever for the actions of third parties in this respect. Malaysia This report is published and distributed in Malaysia by RHB Research Institute Sdn Bhd (233327-M), Level 11, Tower One, RHB Centre, Jalan Tun Razak, 50400 Kuala Lumpur, a wholly-owned subsidiary of RHB Investment Bank Berhad (RHBIB), which in turn is a wholly-owned subsidiary of RHB Capital Berhad. Singapore This report is published and distributed in Singapore by DMG & Partners Research Pte Ltd (Reg. No. 200808705N), a wholly-owned subsidiary of DMG & Partners Securities Pte Ltd, a joint venture between Deutsche Asia Pacific Holdings Pte Ltd (a subsidiary of Deutsche Bank Group) and OSK Investment Bank Berhad, Malaysia which have since merged into RHB Investment Bank Berhad (the merged entity is referred to as “RHBIB”, which in turn is a wholly-owned subsidiary of RHB Capital Berhad). DMG & Partners Securities Pte Ltd is a Member of the Singapore Exchange Securities Trading Limited. DMG & Partners Securities Pte Ltd may have received compensation from the company covered in this report for its corporate finance or its dealing activities; this report is therefore classified as a non-independent report. As of 17 February 2015, DMG & Partners Securities Pte Ltd and its subsidiaries, including DMG & Partners Research Pte Ltd do not have proprietary positions in the securities covered in this report, except for: a) As of 17 February 2015, none of the analysts who covered the securities in this report has an interest in such securities, except for: a) Special Distribution by RHB Where the research report is produced by an RHB entity (excluding DMG & Partners Research Pte Ltd) and distributed in Singapore, it is only distributed to "Institutional Investors", "Expert Investors" or "Accredited Investors" as defined in the Securities and Futures Act, CAP. 289 of Singapore. If you are not an "Institutional Investor", "Expert Investor" or "Accredited Investor", this research report is not intended for you and you should disregard this research report in its entirety. In respect of any matters arising from, or in connection with this research report, you are to contact our Singapore Office, DMG & Partners Securities Pte Ltd. Hong Kong This report is published and distributed in Hong Kong by RHB OSK Securities Hong Kong Limited (“RHBSHK”) (formerly known as OSK Securities Hong Kong Limited), a subsidiary of OSK Investment Bank Berhad, Malaysia which have since merged into RHB Investment Bank Berhad (the merged entity is referred to as “RHBIB”), which in turn is a wholly-owned subsidiary of RHB Capital Berhad. RHBSHK, RHBIB and/or other affiliates may beneficially own a total of 1% or more of any class of common equity securities of the subject company. RHBSHK, RHBIB and/or other affiliates may, within the past 12 months, have received compensation and/or within the next 3 months seek to obtain compensation for investment banking services from the subject company. See important disclosures at the end of this report 6 Shanghai Phnom Penh Risk Disclosure Statements The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities. Past performance is not a guide to future performance. RHBSHK does not maintain a predetermined schedule for publication of research and will not necessarily update this report Indonesia This report is published and distributed in Indonesia by PT RHB OSK Securities Indonesia (formerly known as PT OSK Nusadana Securities Indonesia), a subsidiary of OSK Investment Bank Berhad, Malaysia, which have since merged into RHB Investment Bank Berhad, which in turn is a wholly-owned subsidiary of RHB Capital Berhad. Thailand This report is published and distributed in Thailand by RHB OSK Securities (Thailand) PCL (formerly known as OSK Securities (Thailand) PCL), a subsidiary of OSK Investment Bank Berhad, Malaysia, which have since merged into RHB Investment Bank Berhad, which in turn is a wholly-owned subsidiary of RHB Capital Berhad. Other Jurisdictions In any other jurisdictions, this report is intended to be distributed to qualified, accredited and professional investors, in compliance with the law and regulations of the jurisdictions. Kuala Lumpur Hong Kong Singapore Malaysia Research Office RHB Research Institute Sdn Bhd Level 11, Tower One, RHB Centre Jalan Tun Razak Kuala Lumpur Malaysia Tel : +(60) 3 9280 2185 Fax : +(60) 3 9284 8693 RHB OSK Securities Hong Kong Ltd. (formerly known as OSK Securities Hong Kong Ltd.) 12th Floor World-Wide House 19 Des Voeux Road Central, Hong Kong Tel : +(852) 2525 1118 Fax : +(852) 2810 0908 DMG & Partners Securities Pte. Ltd. 10 Collyer Quay #09-08 Ocean Financial Centre Singapore 049315 Tel : +(65) 6533 1818 Fax : +(65) 6532 6211 Jakarta Shanghai Phnom Penh PT RHB OSK Securities Indonesia (formerly known as PT OSK Nusadana Securities Indonesia) Plaza CIMB Niaga 14th Floor Jl. Jend. Sudirman Kav.25 Jakarta Selatan 12920, Indonesia Tel : +(6221) 2598 6888 Fax : +(6221) 2598 6777 RHB OSK (China) Investment Advisory Co. Ltd. (formerly known as OSK (China) Investment Advisory Co. Ltd.) Suite 4005, CITIC Square 1168 Nanjing West Road Shanghai 20041 China Tel : +(8621) 6288 9611 RHB OSK Indochina Securities Limited (formerly known as OSK Indochina Securities Limited) No. 1-3, Street 271 Sangkat Toeuk Thla, Khan Sen Sok Phnom Penh Cambodia Tel: +(855) 23 969 161 Fax: +(855) 23 969 171 Bangkok RHB OSK Securities (Thailand) PCL (formerly known as OSK Securities (Thailand) PCL) 10th Floor, Sathorn Square Office Tower 98, North Sathorn Road,Silom Bangrak, Bangkok 10500 Thailand Tel: +(66) 862 9999 Fax : +(66) 108 0999 7