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Thailand
T
d Com
mpany Guide
G
CP
C A
ALL
Refer
R
to impo
ortant disclossures at the end of this rep
port
Ve
ersion 4 | Bloom
mberg: CPALL TB
T | Reuters: CP
PALL.BK
DB
BS Group R
Research . Equity
E
31 Aug
A 2016
BUY
B
Persistent sttrength
La
ast Traded Pricee: Bt61.25 (SEET : 1,546.13)
Prrice Target 12-mth: Bt75.00 (22% upside) (Prev Bt60.00))
Po
otential Catalyst: Healthy SSSG, aggressive
a
store expansion
An
nalyst
Na
amida ARTISPON
NG +66 2657 78
833 [email protected]
m
What’s
W
New
w

2H16 SSSG to remain strrong given itss successful
stamp camp
paign

More aggre
essive branch expansion to
o reach 12,00
00
stores in the next three years

Maintain po
ositive view on
o CPALL

As we roll o
over our valu
uation window
w to FY17F,
our TP risess to Bt75.0
Prrice Relative
Fo
orecasts and Va
aluation
FY
Y Dec (Bt m)
2014
4A
2015A
2016F
201
17F
Re
evenue
357,766 391,817 436,663
4
492,0
038
EB
BITDA
26,8
802 32,554 35,880 41,0
077
Prre-tax Profit
12,589 16,884 19,963 25,0
017
10,200 13,682 16,219 20,0
Ne
et Profit
094
9,8
Ne
et Pft (Pre Ex.)
823 13,687 16,219 20,0
094
Ne
et Pft Gth (Pre-eex) (%)
(10
0.7)
39.3
18.5
23
3.9
1.52
EP
PS (Bt)
1.13
1.80
2..24
1.52
1.09
1.80
2..24
EP
PS Pre Ex. (Bt)
19
24
EP
PS Gth Pre Ex (%
%)
(1
11)
39
1.80
2..24
1.52
Diluted EPS (Bt)
1.13
1.26
1..57
1.07
Ne
0.82
et DPS (Bt)
4.82
5..49
4.16
3.43
BV
V Per Share (Bt)
PE
E (X)
33.9
27
54
4.2
40.2
7.4
PE
E Pre Ex. (X)
56
6.0
40.2
33.9
27
7.4
P//Cash Flow (X)
20
0.9
17.5
17.9
16
6.1
EV
V/EBITDA (X)
26
6.9
22.2
20.0
17
7.4
Ne
et Div Yield (%)
1
1.3
1.7
2.1
2
2.6
P//Book Value (X)
17
7.9
14.7
12.7
11
1.2
Ne
et Debt/Equity (X
X)
4
4.7
4.0
3.4
3
3.0
RO
OAE (%)
34
4.3
40.2
40.2
43
3.4
Ea
arnings Rev (%):
Co
onsensus EPS (Bt):
Other Broker Recss:
B: 24
0
1.80
S: 1
0
2..16
H
H: 3
So
ource of all data on this page: Company,
Co
DBS Vickers,
Vi
Bloomberrg
Fin
nance L.P
ASSIAN INSIGHTS
ed: CK
K / sa:CS, PY
urable long-term outlook. Wee remain positive on CPALL
Favou
given its strong grow
wth outlook, uunderpinned by improvemen
nts
in corre operations and
a margins, a nd deleveragin
ng. CPALL’s
opera
ations are expected to be resiilient, as food products are itts
majorr revenue sourcce while consuumers tend to spend on smallticket items when co
onsumption sloows down. CP
PALL offers a
nt ROE of 40.2% in FY16F.
decen
Driven
n by aggressive
e expansion pl an. Despite the slow domesttic
econo
omic recovery, CPALL continuues to aggressively expand th
he
numb
ber of outlets. It plans to roll out at least 70
00 stores p.a. and
a
has a target to reach 12,000 storees in the next three
t
years. Th
he
s
are likelyy to be on a staandalone basiss, with more
new stores
than half
h in provincial regions to ccapture the gro
owing demand
d.
As at end-2Q16, CP
PALL has a totaal of 9,252 outtlets nationwid
de,
4
in Bang
gkok and surbuurban areas an
nd the remaining
with 44.5%
in pro
ovincial regionss. We expect C
CPALL’s same-sstore-salesgrowtth (SSSG) to be
e resilient, as cc.71% of its prroduct mix is
generrated from stap
ple food produucts.
nding margins. Despite press ures for its cassh-and-carry
Expan
busine
ess, consolidatted CPALL’s grross margin is projected
p
to sttill
expan
nd by 0.2ppt to
o 22% in FY166F, thanks to economies
e
of
scale from a larger network
n
and inncreasing conttribution from
eals and health
h
higher-margin products such as reeady-to-eat me
and beauty
b
items. Additionally,
A
CPPALL will bene
efit from the
declin
ne in utilities exxpenses and a smaller cost burden from
acquiring MAKRO in
n FY13. As CPA
ALL has complleted its loan
refina
ancing by issuin
ng debentures to replace hig
gh-cost bank
loans,, there will be less expenses ffrom advisory fees, refinancing
fees, and
a hedging fe
ees on USD brridging loans.
ation:
Valua
Our TP
T of Bt75 is ba
ased on DCF vaaluation (WAC
CC 10.4%,
termin
nal growth rate 2%).
Key Risks
R
to Our View:
V
Key risks are (i) delays in store exppansion, (ii) we
eaker-thanexpeccted consumer confidence, a nd iii) intense competition.
At A Glance
G
Issued Capital (m shrs))
8,9
983
C (Btm/US$m)
550,215 / 15,9
916
Mkt. Cap
Major Shareholders (%
%)
C.P. Merchandising
M
(%)
30.5
Charo
oen Pokphand Group
G
(%)
10.2
Thai NDVR (%)
4.8
Free Float (%)
58.3
3m Avvg. Daily Val (US$
$m)
38.4
ICB Ind
dustry : Consum
mer Services / Foood & Drug Retailers
VICKER
RS SECURITTIES
Company Guide
CP ALL
WHAT’S NEW
Reiterate positive view on CPALL
CVS’ SSSG to remain strong in 2H16. Thailand’s economic
recovery has been slow, but we expect the recovery to gain
traction as farm income has improved given the alleviated
drought impact and a rise in agricultural prices such as
rubber, palms, fruits, sugar, etc. On top of the improving
domestic consumption spending, CPALL’s marketing activities
(its stamp campaign runs from 26 July to 25 Nov) will provide
another big boost to the SSSG of its convenient store
business (CVS). So far, this year’s stamp campaign has done
better than last year’s. Management has maintained its CVS’
SSSG of 3-5% in 2016 (vs our assumption of 3%).
Favourable long-term outlook. Despite strong competition in
the cash-and-carry business, we expect the positive
momentum to continue for CPALL in view of its dominance in
the CVS market, continuous branch expansion, strong growth
outlook from margin expansion and lower interest expense,
and decent ROE.
Maintain BUY. As we roll over our valuation window to
FY17F, our TP rises to Bt75. We reiterate our BUY call on
CPALL.
CPALL: CVS quarterly SSSG
6.0%
5.0%
4.0%
2.6%
More aggressive branch expansion milestone. CPALL plans to
open c.700 CVS stores in 2016 and has target to reach
10,000 stores by 2018. In 1H16, CPALL opened 420 outlets
and its network stood at 9,252 stores as at end-2Q16.
Recently, its management has set a new milestone of 12,000
stores in the next three years. We see this as a positive
development as it reflects easing concerns over the market
saturation point issue. Management has seen no signs of
slowing down in store expansion and believes that
opportunities still exist even in Bangkok from the upcoming
new mass transit lines. Additionally, as it uses the small-sized
CVS store format, we believe its aggressive outlet expansion
is achievable.
2.0%
1.1%
0.5%
1.6%
1.2%
0.3%
0.0%
1Q14
-2.0%
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
-1.1%
-3.6%
-4.0%
-4.5%
-6.0%
Source: Company, DBS Vickers
Expect wider margins. We expect strong growth in ready-toeat food, health and beauty products, and drinks at its cafe
corner which yield relatively higher margins, to continue given
the tilt in consumer lifestyles towards convenience.
Meanwhile, SG&A to sales may climb on the back of CVS’s
marketing activities but this would be offset by an increase in
other income from higher partner participation in promotion
campaigns.
ASIAN INSIGHTS
Page 2
VICKERS SECURITIES
Com
mpany Guid
de
CP ALLL
CR
RITICAL DATA
A POINTS TO WATCH
Ea
arnings Drive
ers:
Ag
ggressive outleet expansion.
Ass at end 2Q16, CPALL has a total of 9,252 outlets nation
nwide,
with 44.5% in B
Bangkok and surburban area
as, and the
re
emaining in pro
ovincial regionss. Despite the slow domesticc
ecconomy recoveery, CPALL will continue to aggressively exp
pand
itss network. It taargets to add at
a least 700 ou
utlets p.a. and has a
milestone to reaach 12,000 sto
ores in the nextt three years. O
Of the
to
otal additional 700 stores p.a., 90% of the new stores wo
ould
be
e on a standalo
one basis whilee another 10%
% will be at PTTT gas
sta
ations. Furtherrmore, more th
han half of new
w outlets woulld be
in provincial areas as there is ample
a
potentia
al demand with
h
much higher population per sttore compared
d to Bangkok.
Same-sttore-sales (%)
Spending
g per ticket (Bt)
SS
SSG in positivee territory.
w
Am
mid weak conssumption pressure, Thai consumers are now
more cautious aand are spendin
ng on smaller-ticket items an
nd
making more freequent shopping trips. This trend
t
is favouraable
fo
or convenience stores and mini-supermarke
ets formats. CPPALL
ha
as been deliverring positive SSSSG, outperforrming other rettailers
who have mostly registered neegative growth
h. As c.71% off its
prroduct mix is g
generated from
m food (ready-tto-eat meals,
prrocessed foodss, bakery, snacks, beverages, etc.) which is a
sta
aple, we expecct CPALL’s opeerations and SS
SSG to be resil ient.
We
W estimate CPPALL to deliver SSSG of 3% in
n FY16F, an
im
mprovement fro
om 0.9% in FY
Y15.
Custom
mers/store/day
So
olid gross marg
gin.
We
W expect econ
nomies of scalee from outlet expansion and larger
co
ontribution from higher-marg
gin products to
o support CPA
ALL’s
margins. With a larger networrk, CPALL will be
b leveraging iits
high bargaining power on sup
pply contracts. The group willl
co
ontinue to add high-margin product
p
lines like ready-to-eaat
meals and from the health and
d beauty categ
gory which yielld
higher margins tthan other pro
oducts.
Neew Stores
Lo
ower financing
g expenses.
Allthough CPALLL has launched
d aggressive promotion camp
paigns
am
mid weak conssumption, an in
ncrease in othe
er income sho uld
more than offseet rising SG&A to total sales. Meanwhile,
ele
ectricity chargees which accou
unt for 10% of
o its SG&A exp
penses
were lower due to the declinee in oil prices. Additionally,
A
th
he
exxpenses related
d to the acquissition of MAKR
RO such as finaancial
management fees and forex costs should alsso decline. CPA
ALL
co
ompleted its loan refinancing
g in 2Q15 by isssuing debentu
ures to
re
eplace high-cosst bank loans.
Total sto
ores at year end
d
Source: Companyy, DBS Vickers
A
ASIAN INSIG
GHTS
VICKERS
S SECURITIEES
Page 3
Company
C
Gu
uide
CP
C ALL
Ba
alance Sheet::
Exxpect gearing tto decline. Following the MA
AKRO acquisitio
on,
CP
PALL’s net geaaring surged to
o 4.9x in FY13. Nonetheless, its net
ge
earing dropped
d to 4.2x as at end 2Q16, thanks to the naature
off its business – being cash geenerative and providing
p
good
d
levvels of free cassh flow. CPALLL targets to low
wer its net deb
bt to
eq
quity ratio to 2
2.5x in FY17F.
Sh
hare Price Driivers:
Re
esilient SSSG. D
Despite weak domestic
d
economy, CPALL’s SSSG
momentum is exxpected to rem
main positive, thanks
t
to its le ading
po
osition in the cconvenient storre market and attractive prod
ducts
an
nd sales promo
otions. Consum
mers tend to sp
pend on small--ticket
ite
ems and makin
ng more frequeent shopping trips
t
which aree
favourable for convenience sto
ores and mini-supermarkets
fo
ormats. Going fforward, domeestic consumpttion should im
mprove
slo
owly, supporteed by the goveernment’s stimu
ulus packages and
pu
ublic infrastruccture spending.
Leverage & A
Asset Turnover (x)
Capitall Expenditure
Ke
ey Risks:
Weak
W
consumerr confidence. CPALL’s
C
busine
ess may suffer if
co
onsumer confid
dence (as meassured by the Consumer
C
Co
onfidence Indeex) in Thailand weakens beca
ause of an
ecconomic slowd
down or domesstic political un
nrest. In any caase,
CP
PALL tends to adjust its prod
duct mix in resp
ponse to chang
ging
ecconomic condittions.
R
ROE (%)
Un
nfavourable w
weather conditions. Customerr traffic at CPA
ALL’s
sto
ores are mostlyy walk-ins. Unfavourable we
eather conditio
ons
co
ould deter such
h customers. CPALL
C
normallyy registers softeer
sa
ales during the rainy season.
Co
ompany Back
kground
CP
P ALL PCL wass established in
n 1988 and is a flagship com pany
off Charoen Pokp
phand Group’ss marketing an
nd distribution
bu
usiness. It is the leading operrator of conven
nience store ch
hains
(7-Eleven) in Thaailand with thee highest mark
ket share.
Ad
dditionally, it aalso operates other
o
related businesses such
h as
bill payment collection service, manufacturin
ng and sales off
fro
ozen foods and bakery, etc.
Forwarrd PE Band (x)
PB Band (x)
Source: Companyy, DBS Vickers
A
ASIAN INSIG
GHTS
Pa
age 4
VICKERS
S SECURITIEES
Company Guide
CP ALL
Key Assumptions
FY Dec
2013A
2014A
2015A
2016F
2017F
Same-store-sales (%)
Spending per ticket (Bt)
Customers/store/day
New Stores
Total stores at year end
5.70
62.0
1,294
607
7,429
(2.6)
63.0
1,252
698
8,127
0.90
63.0
1,261
705
8,832
3.00
64.3
1,267
700
9,532
5.00
65.6
1,274
700
10,232
Income Statement (Btm)
FY Dec
2013A
2014A
2015A
2016F
2017F
272,286
(210,657)
61,629
(46,549)
15,079
0.0
0.0
(1,736)
(498)
12,845
(2,255)
(88.0)
0.0
10,503
11,001
19,780
357,766
(281,443)
76,323
(55,830)
20,493
0.0
0.0
(8,281)
377
12,589
(2,270)
(119)
0.0
10,200
9,823
26,802
391,817
(306,519)
85,299
(60,030)
25,269
0.0
0.0
(8,381)
(4.2)
16,884
(3,066)
(135)
0.0
13,682
13,687
32,554
436,663
(340,760)
95,903
(67,961)
27,942
0.0
0.0
(7,979)
0.0
19,963
(3,593)
(151)
0.0
16,219
16,219
35,880
492,038
(383,087)
108,952
(76,582)
32,369
0.0
0.0
(7,352)
0.0
25,017
(4,753)
(170)
0.0
20,094
20,094
41,077
44.3
19.2
14.1
(0.1)
31.4
35.5
35.9
(10.7)
9.5
21.5
23.3
39.3
11.4
10.2
10.6
18.5
12.7
14.5
15.8
23.9
22.6
5.5
3.9
37.6
5.6
9.2
73.6
8.7
21.3
5.7
2.9
34.3
3.2
6.8
72.1
2.5
21.8
6.4
3.5
40.2
4.2
8.2
70.0
3.0
22.0
6.4
3.7
40.2
4.9
9.1
70.0
3.5
22.1
6.6
4.1
43.4
5.9
10.6
70.0
4.4
Revenue
Cost of Goods Sold
Gross Profit
Other Opng (Exp)/Inc
Operating Profit
Other Non Opg (Exp)/Inc
Associates & JV Inc
Net Interest (Exp)/Inc
Exceptional Gain/(Loss)
Pre-tax Profit
Tax
Minority Interest
Preference Dividend
Net Profit
Net Profit before Except.
EBITDA
Growth
Revenue Gth (%)
EBITDA Gth (%)
Opg Profit Gth (%)
Net Profit Gth (Pre-ex) (%)
Margins & Ratio
Gross Margins (%)
Opg Profit Margin (%)
Net Profit Margin (%)
ROAE (%)
ROA (%)
ROCE (%)
Div Payout Ratio (%)
Net Interest Cover (x)
Source: Company, DBS Vickers
ASIAN INSIGHTS
VICKERS SECURITIES
Page 5
Company Guide
CP ALL
Quarterly / Interim Income Statement (Btm)
FY Dec
2Q2015
3Q2015
4Q2015
1Q2016
2Q2016
Revenue
Cost of Goods Sold
Gross Profit
Other Oper. (Exp)/Inc
Operating Profit
Other Non Opg (Exp)/Inc
Associates & JV Inc
Net Interest (Exp)/Inc
Exceptional Gain/(Loss)
Pre-tax Profit
Tax
Minority Interest
Net Profit
Net profit bef Except.
EBITDA
97,292
(76,135)
21,158
(15,121)
6,037
0.0
0.0
(2,116)
(36.1)
3,884
(716)
(29.0)
3,140
3,176
7,828
96,364
(75,068)
21,296
(15,276)
6,020
0.0
0.0
(2,031)
25.5
4,015
(718)
(38.6)
3,258
3,232
7,906
102,608
(80,191)
22,417
(15,710)
6,707
0.0
0.0
(2,035)
25.7
4,697
(790)
(30.2)
3,877
3,851
8,410
104,969
(82,253)
22,716
(15,707)
7,009
0.0
0.0
(2,009)
58.6
5,059
(960)
(34.5)
4,065
4,006
8,949
109,998
(86,035)
23,962
(16,877)
7,086
0.0
0.0
(2,048)
7.69
5,046
(817)
(32.6)
4,196
4,188
9,025
1.8
(4.7)
(7.2)
(7.4)
(1.0)
1.0
(0.3)
1.8
6.5
6.4
11.4
19.1
2.3
6.4
4.5
4.0
4.8
0.9
1.1
4.5
21.7
6.2
3.2
22.1
6.2
3.4
21.8
6.5
3.8
21.6
6.7
3.9
21.8
6.4
3.8
2013A
2014A
2015A
2016F
2017F
Net Fixed Assets
Invts in Associates & JVs
Other LT Assets
Cash & ST Invts
Inventory
Debtors
Other Current Assets
Total Assets
71,273
0.0
178,773
25,682
19,916
848
7,516
304,008
80,201
0.0
181,525
33,436
22,167
910
8,170
326,410
89,447
0.0
182,663
22,921
25,072
854
8,126
329,083
98,168
0.0
182,678
19,253
28,383
1,365
8,939
338,785
106,053
0.0
182,697
11,114
31,982
1,538
9,832
343,216
ST Debt
Creditor
Other Current Liab
LT Debt
Other LT Liabilities
Shareholder’s Equity
Minority Interests
Total Cap. & Liab.
135,171
54,734
10,893
50,166
20,074
28,747
4,223
304,008
19,701
59,312
13,002
178,779
20,558
30,782
4,276
326,410
23,803
62,624
14,705
165,684
20,593
37,349
4,326
329,083
23,995
71,812
16,119
158,570
20,593
43,327
4,370
338,785
23,117
80,732
17,671
147,335
20,593
49,355
4,413
343,216
(37,347)
(159,654)
0.9
77.4
25.8
1.4
0.3
0.1
4.8
5.6
6.1
1.6
(41,066)
(165,044)
0.9
75.6
27.9
1.1
0.7
0.4
4.7
5.4
8.1
2.2
(43,276)
(166,566)
0.8
74.4
28.8
1.2
0.6
0.2
4.0
4.5
9.3
2.3
(49,245)
(163,312)
0.9
73.7
29.3
1.3
0.5
0.2
3.4
3.8
9.0
2.5
(55,051)
(159,338)
1.1
74.4
29.4
1.4
0.4
0.1
3.0
3.2
9.7
2.6
Growth
Revenue Gth (%)
EBITDA Gth (%)
Opg Profit Gth (%)
Net Profit Gth (Pre-ex) (%)
Margins
Gross Margins (%)
Opg Profit Margins (%)
Net Profit Margins (%)
Balance Sheet (Btm)
FY Dec
Non-Cash Wkg. Capital
Net Cash/(Debt)
Debtors Turn (avg days)
Creditors Turn (avg days)
Inventory Turn (avg days)
Asset Turnover (x)
Current Ratio (x)
Quick Ratio (x)
Net Debt/Equity (X)
Net Debt/Equity ex MI (X)
Capex to Debt (%)
Z-Score (X)
Source: Company, DBS Vickers
ASIAN INSIGHTS
Page 6
VICKERS SECURITIES
Com
mpany Guid
de
CP ALLL
Ca
ash Flow Statem
ment (Btm)
FY
Y Dec
Prre-Tax Profit
Dep. & Amort.
ax Paid
Ta
Assoc. & JV Inc/(lo
oss)
Chg in Wkg.Cap.
CF
Other Operating C
Net Operating CFF
Capital Exp.(net)
Other Invts.(net)
nvts in Assoc. & JJV
In
Div from Assoc & JV
Other Investing CF
Net Investing CF
Div Paid
bt
Chg in Gross Deb
Capital Issues
CF
Other Financing C
Net Financing CF
ments
Currency Adjustm
Chg in Cash
Opg CFPS (Bt)
Frree CFPS (Bt)
2013A
2014A
20
015A
2016F
2017F
F
12,845
4,700
(2,255)
0.0
8,675
0.0
21,624
(11,272)
(180,136)
0.0
0.0
(1.0)
(191,410)
(8,084)
181,000
0.0
(1,739)
171,177
155
1,546
1.44
1.15
12,589
1
6,310
(2,270)
(
0.0
3,850
0.0
26,371
2
(16,019)
(182)
0.0
0.0
242
(15,958)
(8,085)
(
12,798
1
0.0
(7,543)
(
(2,830)
(
(10.6)
7,572
2.51
1.15
16 ,884
7 ,285
(3, 066)
0.0
5 ,065
0.0
31 ,419
(17, 549)
68.3)
(6
0.0
0.0
208
(17, 409)
(7, 186)
(9, 177)
0.0
(8, 416)
(24, 780)
83.9
(10, 686)
2.93
1.54
19,963
7,939
92)
(3,59
0.0
0
2,232
0.0
0
30,705
(16,45
50)
0.0
0
0.0
0
0.0
0
212
(16,23
38)
(11,35
53)
(6,92
21)
0.0
0
0.0
0
(18,27
75)
0.0
0
(3,80
08)
3.17
1.59
25,017
7
8,708
8
(4,752))
0.0
0
2,715
5
0.0
0
34,119
9
(16,450))
0.0
0
0.0
0
0.0
0
216
6
(16,234))
(14,066))
(12,113))
0.0
0
0.0
0
(26,179))
0.0
0
(8,294))
3.49
9
1.97
7
So
ource: Company,
y, DBS Vickers
Ta
arget Price & Ra
atings History
So
ource: DBS Vickeers
Analyst:
An
Namidaa ARTISPONG
Co
orporate Govern
nance CG Rating
g 2015
An
nti-corruption Prrogress Indicatorr
Co
orporate Govern
nance CG Rating
g
Score
90-100
Declared
Certiffied
Range Number of Logo
o
80-89
Description
Excellent
Very Good
70-79
Good
60-69
Satisfactory
50-59
<50
A
ASIAN INSIG
GHTS
No
o logo given
Pass
N/A
VICKERS
S SECURITIEES
Page 7
Company Guide
CP ALL
DBS Vickers 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
Completed Date: 31 Aug 2016 06:08:18
Dissemination Date: 31 Aug 2016 06:35:28
GENERAL DISCLOSURE/DISCLAIMER
This report is prepared by DBS Vickers Securities (Thailand) Co, Ltd. This report is solely intended for the clients of DBS Bank Ltd, DBS Vickers
Securities (Singapore) Pte 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.
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”)) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to
change without notice. This document 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 and 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)
(b)
such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and
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.
DBS Vickers Securities (USA) Inc ("DBSVUSA")"), a U.S.-registered broker-dealer, does not have its own investment banking or research
department, has not participated in any public 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 in market-making.
ASIAN INSIGHTS
Page 8
VICKERS SECURITIES
Company Guide
CP ALL
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
companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her
compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in the report. The DBS Group has
procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of
research reports. As of 31 Aug 2016, the analyst(s) and his/her spouse and/or relatives who are financially dependent on the analyst(s), do not hold
interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities). The research analyst(s)
responsible for this report operates as part of a separate and independent team to the investment banking function of the DBS Group and
procedures are in place to ensure that confidential information held by either the research or investment banking function is handled
appropriately.
COMPANY-SPECIFIC / REGULATORY DISCLOSURES
1.
DBS Vickers Securities (Thailand) Co, Ltd and its subsidiaries do not have a proprietary position in the securities recommended in this report
as of 30 Aug 2016.
Compensation for investment banking services:
2.
DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a
manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further
information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document
should contact DBSVUSA exclusively.
RESTRICTIONS ON DISTRIBUTION
General
This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or
located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be
contrary to law or regulation.
Australia
This report is being distributed in Australia by DBS Bank Ltd. (“DBS”) or DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”),
both of which are exempted from the requirement to hold an Australian Financial Services Licence under the Corporation Act
2001 (“CA”) in respect of financial services provided to the recipients. Both DBS and DBSVS are regulated by the Monetary
Authority of Singapore under the laws of Singapore, which differ from Australian laws. Distribution of this report is intended
only for “wholesale investors” within the meaning of the CA.
Hong Kong
This report is being distributed in Hong Kong by or on behalf of, and is attributable to DBS Vickers (Hong Kong) Limited
which is licensed and regulated by the Hong Kong Securities and Futures Commission and/or by DBS Bank (Hong Kong)
Limited which is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission. Where this
publication relates to a research report, unless otherwise stated in the research report(s), DBS Bank (Hong Kong) Limited is not
the issuer of the research report(s). This publication including any research report(s) is/are distributed on the express
understanding that, whilst the information contained within is believed to be reliable, the information has not been
independently verified by DBS Bank (Hong Kong) Limited. This report is intended for distribution in Hong Kong only to
professional investors (as defined in the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and any
rules promulgated thereunder.)
For any query regarding the materials herein, please contact Paul Yong (CE. No. ASE988) at [email protected].
Indonesia
This report is being distributed in Indonesia by PT DBS Vickers Securities Indonesia.
Malaysia
This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received from
ADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in connection with this
report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised that
ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected and
associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any of
them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek to
perform broking, investment banking/corporate advisory and other services for the subject companies. They may also have
received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other
services from the subject companies.
Wong Ming Tek, Executive Director, ADBSR
Singapore
This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No.
198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the
Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign
entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial
Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert
Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons
only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters arising from,
ASIAN INSIGHTS
VICKERS SECURITIES
Page 9
Company Guide
CP ALL
or in connection with the report.
Thailand
This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd. Research reports distributed are only
intended for institutional clients only and no other person may act upon it.
United Kingdom
This report is produced by DBS Vickers Securities (Thailand) Co, Ltd which is regulated by the Securities and Exchange
Commission, Thailand.
This report is disseminated in the United Kingdom by DBS Vickers Securities (UK) Ltd, ("DBSVUK"). DBSVUK is authorised and
regulated by the Financial Conduct Authority in the United Kingdom.
In respect of the United Kingdom, this report is solely intended for the clients of DBSVUK, 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 DBSVUK. This communication is directed at
persons having professional experience in matters relating to investments. Any investment activity following from this
communication will only be engaged in with such persons. Persons who do not have professional experience in matters
relating to investments should not rely on this communication.
Dubai
This research report is being distributed in The Dubai International Financial Centre (“DIFC”) by DBS Bank Ltd., (DIFC Branch)
rd
having its office at PO Box 506538, 3 Floor, Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC),
Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. This
research report is intended only for professional clients (as defined in the DFSA rulebook) and no other person may act upon
it.
United States
This report was prepared by DBS Vickers Securities (Thailand) Co, Ltd. DBSVUSA did not participate in its preparation. The
research analyst(s) named on this report are not registered as research analysts with FINRA and are not associated persons of
DBSVUSA. The research analyst(s) are not subject to FINRA Rule 2241 restrictions on analyst compensation, communications
with a subject company, public appearances and trading securities held by a research analyst. This report is being distributed
in the United States by DBSVUSA, which accepts responsibility for its contents. This report may only be distributed to Major
U.S. Institutional Investors (as defined in SEC Rule 15a-6) and to such other institutional investors and qualified persons as
DBSVUSA may authorize. Any U.S. person receiving this report who wishes to effect transactions in any securities referred to
herein should contact DBSVUSA directly and not its affiliate.
Other jurisdictions
In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified,
professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.
DBS Vickers Securities (Thailand) Co, Ltd
989 Siam Tower, 9th, 14th-15th Floor,
Rama 1 Road, Pathumwan, Bangkok Thailand 10330
Tel. 66 2 657 7831, Fax: 66 2 658 1269
Securities and Exchange Commission, Thailand.
ASIAN INSIGHTS
Page 10
VICKERS SECURITIES