0.70m.2828dy.com

SEEAPPENDIXIFORIMPORTANTDISCLOSURESANDANALYSTCERTIFICATIONSSectorUpdateThailand25September2013RatingBankingSectorOverweight(unchanged)GoodAugustDataandaPositiveOutlookSectorIndex:538.
25SETIndex:1,436.
68WoraphonWiroonsri,CFAWoraphon.
W@maybank-ke.
co.
th(02)658-6300RatingTargetPriceUpsideBAYHOLD41.
07.
9%BBLBuy256.
024.
3%KBANKBuy228.
021.
6%KKPBuy70.
062.
8%KTBBuy30.
045.
6%SCBBuy213.
031.
9%TCAPBuy50.
049.
3%TISCOBuy57.
048.
1%TMBBuy2.
701.
5%HistoricalChart-20-10010203040Sep-12Nov-12Jan-13Mar-13May-13Jul-13Sep-13SETBANKSETPerformance52-weekHigh/LowIndex621.
51/466.
451-mth3-mth6-mth1-yrsYTDAbsolute(%)11.
49.
4-9.
13.
7-0.
3Relative(%)3.
83.
9-2.
3-7.
3-3.
4Attractivevaluation.
Augustloansgrewwell,while4Qisnormallythepeakseasonforloans.
Themegainfrastructureinvestmentwillremainakeydriverfordemandforloansnextyear.
Bankingstockpricesslumpedandnowoffersagoodchancetoaccumulatethestockforlong-terminvestment.
KTB,BBLandKKPareourtopstockpicks.
StrongloangrowthinAugust.
InAugust,loansgrewbyBt95.
7bor1.
1%MoM(6.
8%YTD),ledbyBAY(+3.
4%),BBL(+1.
7%),KBANK(+1.
4%),andTISCO(+1.
1%).
TCAPwastheonlybankpostingaslightloancontraction.
Wehaveseengrowthacrossalloursegments,especiallycorporate,whileautoHPfellbacktothenormalgrowthrate.
Weexpectmorerobustgrowthin4Qduetoseasonaldemand.
Thus,wearelikelytoachieveourprojectedloangrowthof11.
7%thisyear.
Withpublicandprivateinvestmentscontinuetoremainakeydriver,weexpectgrowthmomentumforloanstocontinueintonextyear.
StronggrowthmomentumonBt2tloanbill.
Thedomesticeconomicslowdownthisyearwillbeabaseadjustmentafterseeingstronggrowthlastyear.
WealsoexpecteconomyreturningtonormalnextyearwithMBKETestimatesGDPgrowthat4.
5%in2014F.
Domesticconsumptionwillreturntonormalafterconsumersadjusttothenewenvironmentandaftertheyrebuildtheirconfidence,whileexportswillincreasefollowingglobaleconomicresilience.
ThekeydriverfortheThailand'seconomyoverthenextfewyearswillbetheinvestmentonboththepublicandprivatesectors.
WebelievetheBt2tloanbillwillbethetriggerpointforareturnofthecapexcycle.
Weforecastsectornetprofitgrowthof26%for2013Fand17%for2014F,thankstoloanandNon-NIIgrowth.
WithhigherriskofNPLs,webelieveassetqualitytoremainhealthy,whileextraprovisioningthisyearwillstrengthenbankbalancesheets.
Theexpecteddecliningcreditcostsnextyearcouldbeanotherkeydriverforearningsgrowth.
OverweightwithKTB,BBL&KKPastoppicks.
Thebankingsharepriceslumpoverthepastfewmonthshasnowreasonablypricedaftereconomicslowdown.
TheBt2tloanbillwillbeakeychangetobeginourbrighteconomy.
Thecurrentstockvaluationslookattractiveforlong-terminvestment.
WeratethesectorOVERWEIGHTwithKTBandBBLastopstockpicksonthecapexcyclethemeandwecontinuetolikeKKPinthesmall/midbanksector.
CurrentTargetUpsidePricePrice+/-StockRating(Bt/sh)(Bt/sh)(%)1213F14F1213F14F1213F14F1213F14F1213F14FBAYT-Buy38.
0041.
007.
915.
814.
610.
92.
01.
91.
757.
98.
134.
413.
613.
416.
42.
13.
33.
9BBLBuy206.
00256.
0024.
311.
99.
98.
71.
41.
31.
220.
820.
913.
812.
813.
914.
53.
23.
94.
4KBANKBuy187.
50228.
0021.
612.
711.
09.
52.
42.
11.
845.
516.
215.
420.
820.
420.
01.
62.
12.
7KKPBuy43.
0070.
0062.
88.
97.
86.
51.
11.
00.
935.
613.
819.
511.
913.
514.
95.
66.
37.
6KTBBuy20.
6030.
0045.
610.
39.
57.
41.
61.
41.
331.
38.
928.
015.
216.
018.
43.
94.
95.
8SCBBuy161.
50213.
0031.
913.
610.
99.
52.
62.
21.
910.
925.
115.
020.
121.
821.
62.
83.
13.
4TCAPBuy33.
5050.
0049.
37.
84.
45.
91.
00.
80.
89.
679.
4-26.
613.
420.
713.
34.
24.
85.
4TISCOBuy38.
5057.
0048.
17.
66.
55.
91.
51.
41.
213.
415.
610.
521.
522.
021.
36.
26.
56.
8TMBBuy2.
662.
701.
572.
118.
413.
72.
22.
01.
8-60.
0291.
634.
42.
911.
213.
81.
21.
72.
3Source:CompanyreportsandMBKETEPSgrowth(%)ROE(%)DivYield(%)P/BV(x)KeystockhighlightsPricedasof:P/E(x)23-Sep-13Hold25September2013Page2of9BANKINGSECTORHighlightFigure1:Thaibanks–ComparativeValuations23-Sep-13BAYBBLKBANKKKPKTBSCBTCAPTISCOTMBSectorCurrentPrice(Bt)38.
00206.
00187.
5043.
0020.
60161.
5033.
5038.
502.
66Marketcap(Btmn)230,817393,222448,73635,812288,020548,97042,80728,025115,843No.
ofshares-end2012(mn)6,0741,9092,39383313,9823,3991,27872843,550RecommendationT-BuyBuyBuyBuyBuyBuyBuyBuyBuyTargetPrice41.
0256.
0228.
070.
030.
0213.
050.
057.
02.
70%upsidetotarget8%24%22%63%46%32%49%48%2%Price/BV(X)20112.
251.
612.
901.
141.
772.
951.
171.
732.
052.
1620122.
041.
442.
431.
091.
602.
570.
981.
542.
161.
902013F1.
881.
312.
061.
011.
442.
210.
831.
361.
991.
692014F1.
701.
201.
770.
931.
281.
910.
751.
181.
801.
49Price/Underlyingprofits(X)20118.
298.
529.
455.
796.
3411.
213.
064.
5716.
148.
5920127.
608.
277.
825.
355.
219.
082.
834.
1611.
117.
372013F6.
636.
857.
114.
255.
787.
671.
273.
658.
896.
222014F5.
866.
096.
213.
984.
946.
681.
833.
387.
225.
65PER-fullydiluted(X)201124.
9114.
3818.
5212.
0313.
5415.
138.
568.
5828.
8815.
95201215.
7811.
9112.
738.
8710.
3113.
657.
817.
5672.
1312.
842013F14.
609.
8510.
957.
809.
4610.
914.
356.
5418.
4210.
442014F10.
868.
669.
506.
527.
399.
485.
935.
9213.
708.
92Dividendyield(%)20111.
842.
911.
335.
583.
012.
173.
586.
101.
132.
2720122.
113.
161.
605.
583.
882.
794.
186.
231.
242.
742013F3.
293.
882.
136.
284.
853.
104.
786.
491.
693.
392014F3.
954.
372.
677.
565.
833.
415.
376.
752.
263.
94ROE(%)20119.
211.
516.
710.
213.
321.
313.
521.
17.
514.
2201213.
612.
820.
811.
915.
220.
113.
421.
52.
915.
62013F13.
413.
920.
413.
516.
021.
820.
722.
011.
217.
12014F16.
414.
520.
014.
918.
421.
613.
321.
313.
817.
7Netprofits(Btmn)20119,26427,33824,2262,27317,02736,2735,0023,2674,009128,679201214,62533,02135,2603,39123,52740,2205,4823,7051,605160,8372013F15,81139,91040,9674,60330,44350,3109,8354,4966,287202,6632014F21,25545,41047,2595,50138,97657,8767,2165,2048,451237,148EPSgrowth-fullydiluted(%yoy)201151121-281450-11132520.
020125821463631111013-6024.
22013F8211614925791629223.
02014F341415202815-27103416.
9EPS-fullydiluted(Bt)20111.
5314.
3210.
123.
571.
5210.
673.
914.
490.
0920122.
4117.
3014.
734.
852.
0011.
834.
295.
090.
042013F2.
6020.
9117.
125.
522.
1814.
807.
705.
880.
142014F3.
5023.
7919.
756.
592.
7917.
035.
656.
500.
19Bookvalue(Bt)–201116.
87127.
7364.
6837.
6511.
6154.
6828.
7022.
271.
30Bookvalue(Bt)–201218.
66143.
3077.
2839.
5112.
9062.
8934.
1125.
001.
23Bookvalue(Bt)–2013F20.
23156.
9690.
9042.
4814.
2772.
9540.
4128.
411.
34Bookvalue(Bt)–2014F22.
36172.
25106.
1446.
1116.
0684.
7444.
4532.
591.
48DPS(Bt)–20110.
706.
002.
502.
400.
623.
501.
202.
350.
03DPS(Bt)–20120.
806.
503.
002.
400.
804.
501.
402.
400.
03DPS(Bt)–2013F1.
258.
004.
002.
701.
005.
001.
602.
500.
05DPS(Bt)–2014F1.
509.
005.
003.
251.
205.
501.
802.
600.
06AssumptionsbehindtargetpricesBAYBBLKBANKKKPKTBSCBTCAPTISCOTMBSustainableROE17.
5%15.
5%21.
0%16.
5%19.
0%22.
5%15.
0%18.
5%18.
5%LTgrowth5.
5%5.
0%5.
0%5.
0%5.
0%5.
5%5.
0%5.
0%5.
0%Costofequity11.
7%11.
8%11.
9%12.
3%12.
1%11.
9%12.
2%12.
2%12.
0%ImpliedP/BVmultiple1.
951.
562.
311.
581.
972.
661.
181.
871.
92Source:SET,CompanyreportsandMBKET.
*ImpliedtargetP/BVmultiplederivedfrom(ROE–g)/(CoE–g)25September2013Page3of9BANKINGSECTORFigure2:Thaibanks–Monthlyreport(August13)NetloansDepositsTotalm-o-mm-o-my-o-yYtdTotalm-o-mm-o-my-o-yYtdL/Dratio(Btbn)(Btbn)GrowthGrowthGrowth(Btbn)(Btbn)GrowthGrowthGrowth(%)BBL1,561.
125.
71.
7%9.
2%5.
1%1,808.
911.
30.
6%7.
2%1.
9%86.
3%KTB1,618.
16.
50.
4%8.
5%9.
0%1,735.
821.
91.
3%7.
4%4.
1%93.
2%KBANK1,359.
919.
41.
4%10.
8%6.
6%1,521.
315.
11.
0%11.
0%9.
1%89.
4%SCB1,615.
212.
80.
8%14.
3%8.
1%1,737.
7(0.
4)0.
0%16.
5%7.
6%93.
0%BAY744.
424.
33.
4%13.
6%4.
0%765.
28.
41.
1%17.
1%10.
4%97.
3%TMB439.
91.
90.
4%10.
9%2.
8%500.
917.
23.
6%3.
1%0.
9%87.
8%CIMBT151.
41.
30.
8%23.
0%13.
0%143.
2(3.
9)-2.
7%18.
7%5.
8%105.
7%TISCO278.
93.
11.
1%27.
1%14.
5%247.
1(0.
3)-0.
1%68.
2%12.
4%112.
9%KKP181.
21.
70.
9%18.
3%10.
4%152.
3(4.
8)-3.
1%7.
9%-0.
8%118.
9%TCAP756.
6(3.
4)-0.
4%12.
6%3.
4%713.
30.
40.
1%12.
3%2.
9%106.
1%LHBANK95.
22.
32.
5%38.
1%11.
6%102.
511.
312.
4%49.
5%21.
7%92.
9%Total8,801.
995.
71.
1%12.
1%6.
8%9,428.
176.
10.
8%12.
0%5.
6%93.
4%Source:Banks'monthlyThorPor1.
1reportstoBoT.
Figure3:Thaibanks–Monthlyoutstandingloangrowth45.
243.
5144.
370.
774.
991.
969.
386.
072.
1103.
0130.
186.
354.
195.
926.
634.
867.
6162.
423.
995.
70306090120150180Jan-12Feb-12Mar-12Apr-12May-12Jun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13Jul-13Aug-13BtbnSource:Companyreports25September2013Page4of9BANKINGSECTORFigure4:ThaiBanks–MoMloangrowthFigure5:ThaiBanks–Ytdloangrowth1.
72.
325.
76.
519.
412.
824.
31.
93.
1-3.
4-10.
0-5.
00.
05.
010.
015.
020.
025.
030.
0BBLKTBKBANKSCBBAYTMBTISCOKKPTCAPLHBANKBtbn(+1.
7%)(+0.
4%)(+1.
4%)(+1.
1%)(+3.
4%)(+0.
8%)(-0.
4%)(+0.
9%)(+0.
4%)(+2.
5%)5.
1%4.
0%3.
4%2.
8%14.
5%11.
6%10.
4%9.
0%8.
1%6.
8%6.
6%0.
0%2.
0%4.
0%6.
0%8.
0%10.
0%12.
0%14.
0%16.
0%TISCOLHBANKKKPKTBSCBTotalKBANKBBLBAYTCAPTMB%growthytdNote:*Numberinbracketspercentagechangemom.
Source:CompanyreportsSource:CompanyreportsFigure6:ThaiBanks–MoMdepositgrowthFigure7:ThaiBanks–YTDdepositgrowth-4.
80.
411.
311.
321.
915.
1-0.
48.
417.
2-0.
3-10.
0-5.
00.
05.
010.
015.
020.
025.
0BBLKTBKBANKSCBBAYTMBTISCOKKTCAPLHBANKBtbn(+0.
1%)(-3.
1%)(+1.
0%)(+1.
1%)(+1.
3%)(+0.
6%)(+12.
4%)(-0.
1%)(-0.
0%)(+3.
6%)2.
9%1.
9%0.
9%-0.
8%21.
7%12.
4%10.
4%9.
1%7.
6%5.
6%4.
1%-5.
0%0.
0%5.
0%10.
0%15.
0%20.
0%25.
0%LHBANKTISCOBAYKBANKSCBTotalKTBTCAPBBLTMBKKP%growthytdNote:*Numberinbracketspercentagechangemom.
Source:CompanyreportsSource:Companyreports.
Figure8:ThaiBanks–NetL/DratioFigure9:ThaiBanks–NetlendingpositioninMM70.
0%75.
0%80.
0%85.
0%90.
0%95.
0%100.
0%105.
0%110.
0%Jan-05Jul-05Jan-06Jul-06Jan-07Jul-07Jan-08Jul-08Jan-09Jul-09Jan-10Jul-10Jan-11Jul-11Jan-12Jul-12Jan-13Jul-13L/DL/Dinclborrowing93.
4%86.
5%2003004005006007008009001,000Jan-05Jul-05Jan-06Jul-06Jan-07Jul-07Jan-08Jul-08Jan-09Jul-09Jan-10Jul-10Jan-11Jul-11Jan-12Jul-12Jan-13Jul-13Btbn489Source:CompanyreportsSource:Companyreports25September2013Page5of9BANKINGSECTORFigure10:InfrastructureInvestment–ProjectscostsProjectBudget(Btmn)%PortionHighSpeedTrains(1,447Km)783,23039.
2%MRT(265kms)472,44823.
6%DoubleTracking(2,859km)403,21420.
2%4Laneregionalandconnectiveroads(2,594kms)183,5699.
2%Motorways(326kms)91,8204.
6%CoastalandInlandWaterTransport29,8201.
5%Freightterminals14,0930.
7%Customshouse12,5450.
6%Contingencies9,2610.
5%Total2,000,000100%Source:MinistryofTransportationFigure11:InfrastructureInvestment–FundingSourceBtmn%PortionGovernmentBenchmarkBonds~600,00030.
0%GovernmentSavingBonds~100,0005.
0%GovernmentAmortizedBonds~100,0005.
0%GovernmentInflation-LinkedBonds~80,0004.
0%PromissoryNotes~40,0002.
0%GovernmentFloating-RateBonds~30,0001.
5%BankLoans~200,00010.
0%OthersInstruments(PPP,InfraFunds)~850,00042.
5%Total2,000,000100.
0%Source:MinistryofFinanceFigure12:Infrastructureinvestment–timelineofdisbursementSource:MinistryofTransportation203150,047292,963426,441471,019372,018171,84294,663050,000100,000150,000200,000250,000300,000350,000400,000450,000500,00020132014201520162017201820192020Btmn25September2013Page6of9BANKINGSECTORRESEARCHOFFICESREGIONALWONGChewHann,CARegionalHead,InstitutionalResearch(603)22978686wchewh@maybank-ib.
comAlexanderGARTHOFFInstitutionalProductManager(852)22680638agarthoff@maybank-ke.
com.
sgONGSengYeowRegionalHead,RetailResearch(65)64321453ongsengyeow@maybank-ke.
com.
sgECONOMICSSuhaimiILIASChiefEconomistSingapore|Malaysia(603)22978682suhaimi_ilias@maybank-ib.
comLuzLORENZOPhilippines(63)28498836luz_lorenzo@maybank-atrke.
comTimLEELAHAPHANThailand(662)6581420tim.
l@maybank-ke.
co.
thJUNIMANChiefEconomist,BIIIndonesia(62)2129228888ext29682Juniman@bankbii.
comJosuaPARDEDEEconomist/IndustryAnalyst,BIIIndonesia(62)2129228888ext29695JPardede@bankbii.
comMALAYSIAWONGChewHann,CAHeadofResearch(603)22978686wchewh@maybank-ib.
comStrategyConstruction&InfrastructureDesmondCH'NG,ACA(603)22978680desmond.
chng@maybank-ib.
comBanking-RegionalLIAWThongJung(603)22978688tjliaw@maybank-ib.
comOil&GasAutomotiveShippingONGCheeTing,CA(603)22978678ct.
ong@maybank-ib.
comPlantations-RegionalMohshinAZIZ(603)22978692mohshin.
aziz@maybank-ib.
comAviation–RegionalPetrochemYINShaoYang,CPA(603)22978916samuel.
y@maybank-ib.
comGaming–RegionalMediaTANCHIWEI,CFA(603)22978690chiwei.
t@maybank-ib.
comPowerTelcosWONGWeiSum,CFA(603)22978679weisum@maybank-ib.
comProperty&REITsLEEYenLing(603)22978691lee.
yl@maybank-ib.
comBuildingMaterialsManufacturingTechnologyLEEChengHooiHeadofRetailchenghooi.
lee@maybank-ib.
comTechnicalsHONGKONG/CHINAHowardWONGHeadofResearch(852)22680648howardwong@kimeng.
com.
hkOil&Gas-RegionalAlexanderLATZER(852)22680647alexanderlatzer@kimeng.
com.
hkMetals&Mining-RegionalJacquelineKO,CFA(852)22680633jacquelineko@kimeng.
com.
hkConsumerTerenceLOK(852)22680630terencelok@kimeng.
com.
hkConsumerJeremyTAN(852)22680635jeremytan@kimeng.
com.
hkGamingKarenKWAN(852)22680640karenkwan@kimeng.
com.
hkHK&ChinaPropertyPhilipTSE(852)22680643philiptse@kimeng.
com.
hkHK&ChinaPropertyWarrenLAU(852)22680644warrenlau@kimeng.
com.
hkTechnology–RegionalINDIAJigarSHAHHeadofResearch(91)2266232601jigar@maybank-ke.
co.
inOil&GasAutomobileCementAnubhavGUPTA(91)2266232605anubhav@maybank-ke.
co.
inMetal&MiningCapitalgoodsPropertyUrmilSHAH(91)2266232606urmil@maybank-ke.
co.
inTechnologyMediaSINGAPOREGregoryYAPHeadofResearch(65)64321450gyap@maybank-ke.
com.
sgTechnology&ManufacturingTelcosWilsonLIEW(65)64321454wilsonliew@maybank-ke.
com.
sgPropertyDevelopersJamesKOH(65)64321431jameskoh@maybank-ke.
com.
sgConsumer-RegionalYEAKCheeKeong,CFA(65)64321460yeakcheekeong@maybank-ke.
com.
sgOffshore&MarineAlisonFOK(65)64321447alisonfok@maybank-ke.
com.
sgSmall&MidCapsConstructionONGKianLin(65)64321470ongkianlin@maybank-ke.
com.
sgS-REITsWeiBin(65)64321455weibin@maybank-ke.
com.
sgCommodityLogisticsS-chipsDerrickHENG(65)64321446derrickheng@maybank-ke.
com.
sgTransport(Land,Shipping&Aviation)JohnCHEONG(65)64321461johncheong@maybank-ke.
com.
sgSmall&MidCapsHealthcareINDONESIALuckyARIESANDI,CFA(62)2125571127lucky.
ariesandi@maybank-ke.
co.
idBasemetalsMiningOil&GasWholesalePanduANUGRAH(62)2125571137pandu.
anugrah@maybank-ke.
co.
idAutomotiveHeavyequipmentPlantationTollroadRahmiMARINA(62)2125571128rahmi.
marina@maybank-ke.
co.
idBankingMultifinanceAdiN.
WICAKSONO(62)2125571128adi.
wicaksono@maybank-ke.
co.
idGeneralistAnthonyYUNUS(62)2125571139anthony.
yunus@maybank-ke.
co.
idCementInfrastructurePropertyPHILIPPINESLuzLORENZOHeadofResearch(63)28498836luz_lorenzo@maybank-atrke.
comStrategyLauraDY-LIACCO(63)28498840laura_dyliacco@maybank-atrke.
comUtilitiesConglomeratesTelcosLovellSARREAL(63)28498841lovell_sarreal@maybank-atrke.
comConsumerMediaCementLuzLORENZO(63)28498836luz_lorenzo@maybank-atrke.
comConglomeratesPropertyPorts/LogisticsGamingKatherineTAN(63)28498843kat_tan@maybank-atrke.
comBanksConstructionRamonADVIENTO(63)28498845ramon_adviento@maybank-atrke.
comMiningTHAILANDSukitUDOMSIRIKULHeadofResearch(66)26586300ext5090Sukit.
u@maybank-ke.
co.
thMariaLAPIZHeadofInstitutionalResearchDir(66)22570250|(66)26586300ext1399Maria.
L@maybank-ke.
co.
thConsumer/BigCapsMayureeCHOWVIKRAN(66)26586300ext1440mayuree.
c@maybank-ke.
co.
thStrategyPadonVannarat(66)26586300ext1450Padon.
v@maybank-ke.
co.
thStrategySurachaiPRAMUALCHAROENKIT(66)26586300ext1470Surachai.
p@maybank-ke.
co.
thAutoConmatContractorSteelSuttatipPEERASUB(66)26586300ext1430suttatip.
p@maybank-ke.
co.
thMediaCommerceSutthichaiKUMWORACHAI(66)26586300ext1400sutthichai.
k@maybank-ke.
co.
thEnergyPetrochemTermpornTANTIVIVAT(66)26586300ext1520termporn.
t@maybank-ke.
co.
thPropertyWoraphonWIROONSRI(66)26586300ext1560woraphon.
w@maybank-ke.
co.
thBanking&FinanceJaroonpanWATTANAWONG(66)26586300ext1404jaroonpan.
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co.
thTransportationSmallcap.
ChatchaiJINDARAT(66)26586300ext1401chatchai.
j@maybank-ke.
co.
thElectronicsVIETNAMMichaelKOKALARI,CFAHeadofResearch(84)838386647michael.
kokalari@maybank-kimeng.
com.
vnStrategyNguyenThiNganTuyen(84)844555888x8081tuyen.
nguyen@maybank-kimeng.
com.
vnFoodandBeverageOilandGasHangVu(84)844555888x8087hang.
vu@maybank-kimeng.
com.
vnBankingTrinhThiNgocDiep(84)844555888x8242diep.
trinh@maybank-kimeng.
com.
vnTechnologyUtilitiesConstructionDangThiKimThoa(84)844555888x8083thoa.
dang@maybank-kimeng.
com.
vnConsumerNguyenTrungHoa(84)844555888x8088hoa.
nguyen@maybank-kimeng.
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vnSteelSugarResources25September2013Page7of9BANKINGSECTORAPPENDIXI:TERMSFORPROVISIONOFREPORT,DISCLAIMERSANDDISCLOSURESDISCLAIMERSThisresearchreportispreparedforgeneralcirculationandforinformationpurposesonlyandundernocircumstancesshoulditbeconsideredorintendedasanoffertosellorasolicitationofanoffertobuythesecuritiesreferredtoherein.
Investorsshouldnotethatvaluesofsuchsecurities,ifany,mayfluctuateandthateachsecurity'spriceorvaluemayriseorfall.
Opinionsorrecommendationscontainedhereinareinformoftechnicalratingsandfundamentalratings.
Technicalratingsmaydifferfromfundamentalratingsastechnicalvaluationsapplydifferentmethodologiesandarepurelybasedonpriceandvolume-relatedinformationextractedfromtherelevantjurisdiction'sstockexchangeintheequityanalysis.
Accordingly,investors'returnsmaybelessthantheoriginalsuminvested.
Pastperformanceisnotnecessarilyaguidetofutureperformance.
Thisreportisnotintendedtoprovidepersonalinvestmentadviceanddoesnottakeintoaccountthespecificinvestmentobjectives,thefinancialsituationandtheparticularneedsofpersonswhomayreceiveorreadthisreport.
Investorsshouldthereforeseekfinancial,legalandotheradviceregardingtheappropriatenessofinvestinginanysecuritiesortheinvestmentstrategiesdiscussedorrecommendedinthisreport.
TheinformationcontainedhereinhasbeenobtainedfromsourcesbelievedtobereliablebutsuchsourceshavenotbeenindependentlyverifiedbyMaybankInvestmentBankBerhad,itssubsidiaryandaffiliates(collectively,"MKE")andconsequentlynorepresentationismadeastotheaccuracyorcompletenessofthisreportbyMKEanditshouldnotberelieduponassuch.
Accordingly,MKEanditsofficers,directors,associates,connectedpartiesand/oremployees(collectively,"Representatives")shallnotbeliableforanydirect,indirectorconsequentiallossesordamagesthatmayarisefromtheuseorrelianceofthisreport.
Anyinformation,opinionsorrecommendationscontainedhereinaresubjecttochangeatanytime,withoutpriornotice.
Thisreportmaycontainforwardlookingstatementswhichareoftenbutnotalwaysidentifiedbytheuseofwordssuchas"anticipate","believe","estimate","intend","plan","expect","forecast","predict"and"project"andstatementsthataneventorresult"may","will","can","should","could"or"might"occurorbeachievedandothersimilarexpressions.
Suchforwardlookingstatementsarebasedonassumptionsmadeandinformationcurrentlyavailabletousandaresubjecttocertainrisksanduncertaintiesthatcouldcausetheactualresultstodiffermateriallyfromthoseexpressedinanyforwardlookingstatements.
Readersarecautionednottoplaceunduerelevanceontheseforward-lookingstatements.
MKEexpresslydisclaimsanyobligationtoupdateorreviseanysuchforwardlookingstatementstoreflectnewinformation,eventsorcircumstancesafterthedateofthispublicationortoreflecttheoccurrenceofunanticipatedevents.
MKEanditsofficers,directorsandemployees,includingpersonsinvolvedinthepreparationorissuanceofthisreport,may,totheextentpermittedbylaw,fromtimetotimeparticipateorinvestinfinancingtransactionswiththeissuer(s)ofthesecuritiesmentionedinthisreport,performservicesfororsolicitbusinessfromsuchissuers,and/orhaveapositionorholding,orothermaterialinterest,oreffecttransactions,insuchsecuritiesoroptionsthereon,orotherinvestmentsrelatedthereto.
Inaddition,itmaymakemarketsinthesecuritiesmentionedinthematerialpresentedinthisreport.
MKEmay,totheextentpermittedbylaw,actuponorusetheinformationpresentedherein,ortheresearchoranalysisonwhichtheyarebased,beforethematerialispublished.
Oneormoredirectors,officersand/oremployeesofMKEmaybeadirectoroftheissuersofthesecuritiesmentionedinthisreport.
ThisreportispreparedfortheuseofMKE'sclientsandmaynotbereproduced,alteredinanyway,transmittedto,copiedordistributedtoanyotherpartyinwholeorinpartinanyformormannerwithoutthepriorexpresswrittenconsentofMKEandMKEanditsRepresentativesacceptsnoliabilitywhatsoeverfortheactionsofthirdpartiesinthisrespect.
Thisreportisnotdirectedtoorintendedfordistributiontoorusebyanypersonorentitywhoisacitizenorresidentoforlocatedinanylocality,state,countryorotherjurisdictionwheresuchdistribution,publication,availabilityorusewouldbecontrarytolaworregulation.
Thisreportisfordistributiononlyundersuchcircumstancesasmaybepermittedbyapplicablelaw.
Thesecuritiesdescribedhereinmaynotbeeligibleforsaleinalljurisdictionsortocertaincategoriesofinvestors.
Withoutprejudicetotheforegoing,thereaderistonotethatadditionaldisclaimers,warningsorqualificationsmayapplybasedongeographicallocationofthepersonorentityreceivingthisreport.
MalaysiaOpinionsorrecommendationscontainedhereinareintheformoftechnicalratingsandfundamentalratings.
Technicalratingsmaydifferfromfundamentalratingsastechnicalvaluationsapplydifferentmethodologiesandarepurelybasedonpriceandvolume-relatedinformationextractedfromBursaMalaysiaSecuritiesBerhadintheequityanalysis.
SingaporeThisreporthasbeenproducedasofthedatehereofandtheinformationhereinmaybesubjecttochange.
MaybankKimEngResearchPte.
Ltd.
("MaybankKERPL")inSingaporehasnoobligationtoupdatesuchinformationforanyrecipient.
FordistributioninSingapore,recipientsofthisreportaretocontactMaybankKERPLinSingaporeinrespectofanymattersarisingfrom,orinconnectionwith,thisreport.
Iftherecipientofthisreportisnotanaccreditedinvestor,expertinvestororinstitutionalinvestor(asdefinedunderSection4AoftheSingaporeSecuritiesandFuturesAct),MaybankKERPLshallbelegallyliableforthecontentsofthisreport,withsuchliabilitybeinglimitedtotheextent(ifany)aspermittedbylaw.
ThailandThedisclosureofthesurveyresultoftheThaiInstituteofDirectorsAssociation("IOD")regardingcorporategovernanceismadepursuanttothepolicyoftheOfficeoftheSecuritiesandExchangeCommission.
ThesurveyoftheIODisbasedontheinformationofacompanylistedontheStockExchangeofThailandandthemarketforAlternativeInvestmentdisclosedtothepublicandabletobeaccessedbyageneralpublicinvestor.
Theresult,therefore,isfromtheperspectiveofathirdparty.
Itisnotanevaluationofoperationandisnotbasedoninsideinformation.
ThesurveyresultisasofthedateappearingintheCorporateGovernanceReportofThaiListedCompanies.
Asaresult,thesurveymaybechangedafterthatdate.
MaybankKimEngSecurities(Thailand)PublicCompanyLimited("MBKET")doesnotconfirmnorcertifytheaccuracyofsuchsurveyresult.
Exceptasspecificallypermitted,nopartofthispresentationmaybereproducedordistributedinanymannerwithoutthepriorwrittenpermissionofMBKET.
MBKETacceptsnoliabilitywhatsoeverfortheactionsofthirdpartiesinthisrespect.
USThisresearchreportpreparedbyMKEisdistributedintheUnitedStates("US")toMajorUSInstitutionalInvestors(asdefinedinRule15a-6undertheSecuritiesExchangeActof1934,asamended)onlybyMaybankKimEngSecuritiesUSAInc("MaybankKESUSA"),abroker-dealerregisteredintheUS(registeredunderSection15oftheSecuritiesExchangeActof1934,asamended).
AllresponsibilityforthedistributionofthisreportbyMaybankKESUSAintheUSshallbebornebyMaybankKESUSA.
AllresultingtransactionsbyaUSpersonorentityshouldbeeffectedthrougharegisteredbroker-dealerintheUS.
ThisreportisnotdirectedatyouifMKEisprohibitedorrestrictedbyanylegislationorregulationinanyjurisdictionfrommakingitavailabletoyou.
YoushouldsatisfyyourselfbeforereadingitthatMaybankKESUSAispermittedtoprovideresearchmaterialconcerninginvestmentstoyouunderrelevantlegislationandregulations.
UKThisdocumentisbeingdistributedbyMaybankKimEngSecurities(London)Ltd("MaybankKESL")whichisauthorizedandregulated,bytheFinancialServicesAuthorityandisforInformationalPurposesonly.
ThisdocumentisnotintendedfordistributiontoanyonedefinedasaRetailClientundertheFinancialServicesandMarketsAct2000withintheUK.
Anyinclusionofathirdpartylinkisfortherecipientsconvenienceonly,andthatthefirmdoesnottakeanyresponsibilityforitscommentsoraccuracy,andthataccesstosuchlinksisattheindividualsownrisk.
Nothinginthisreportshouldbeconsideredasconstitutinglegal,accountingortaxadvice,andthatforaccurateguidancerecipientsshouldconsultwiththeirownindependenttaxadvisers.
25September2013Page8of9BANKINGSECTORDISCLOSURESLegalEntitiesDisclosuresMalaysia:ThisreportisissuedanddistributedinMalaysiabyMaybankInvestmentBankBerhad(15938-H)whichisaParticipatingOrganizationofBursaMalaysiaBerhadandaholderofCapitalMarketsandServicesLicenseissuedbytheSecuritiesCommissioninMalaysia.
Singapore:ThismaterialisissuedanddistributedinSingaporebyMaybankKERPL(Co.
RegNo197201256N)whichisregulatedbytheMonetaryAuthorityofSingapore.
Indonesia:PTKimEngSecurities("PTKES")(Reg.
No.
KEP-251/PM/1992)isamemberoftheIndonesiaStockExchangeandisregulatedbytheBAPEPAMLK.
Thailand:MBKET(Reg.
No.
0107545000314)isamemberoftheStockExchangeofThailandandisregulatedbytheMinistryofFinanceandtheSecuritiesandExchangeCommission.
Philippines:MaybankATRKES(Reg.
No.
01-2004-00019)isamemberofthePhilippinesStockExchangeandisregulatedbytheSecuritiesandExchangeCommission.
Vietnam:MaybankKimEngSecuritiesJSC(LicenseNumber:71/UBCK-GP)islicensedundertheStateSecuritiesCommissionofVietnam.
HongKong:KESHK(CentralEntityNoAAD284)isregulatedbytheSecuritiesandFuturesCommission.
India:KimEngSecuritiesIndiaPrivateLimited("KESI")isaparticipantoftheNationalStockExchangeofIndiaLimited(RegNo:INF/INB231452435)andtheBombayStockExchange(Reg.
No.
INF/INB011452431)andisregulatedbySecuritiesandExchangeBoardofIndia.
KESIisalsoregisteredwithSEBIasCategory1MerchantBanker(Reg.
No.
INM000011708)US:MaybankKESUSAisamemberof/andisauthorizedandregulatedbytheFINRA–BrokerID27861.
UK:MaybankKESL(RegNo2377538)isauthorizedandregulatedbytheFinancialServicesAuthority.
DisclosureofInterestMalaysia:MKEanditsRepresentativesmayfromtimetotimehavepositionsorbemateriallyinterestedinthesecuritiesreferredtohereinandmayfurtheractasmarketmakerormayhaveassumedanunderwritingcommitmentordealwithsuchsecuritiesandmayalsoperformorseektoperforminvestmentbankingservices,advisoryandotherservicesfororrelatingtothosecompanies.
Singapore:Asof25September2013,MaybankKERPLandthecoveringanalystdonothaveanyinterestinanycompaniesrecommendedinthisresearchreport.
Thailand:MBKETmayhaveabusinessrelationshipwithormaypossiblybeanissuerofderivativewarrantsonthesecurities/companiesmentionedintheresearchreport.
Therefore,Investorsshouldexercisetheirownjudgmentbeforemakinganyinvestmentdecisions.
MBKET,itsassociates,directors,connectedpartiesand/oremployeesmayfromtimetotimehaveinterestsand/orunderwritingcommitmentsinthesecuritiesmentionedinthisreport.
HongKong:KESHKmayhavefinancialinterestsinrelationtoanissueroranewlistingapplicantreferredtoasdefinedbytherequirementsunderParagraph16.
5(a)oftheHongKongCodeofConductforPersonsLicensedbyorRegisteredwiththeSecuritiesandFuturesCommission.
Asof25September2013,KESHKandtheauthoringanalystdonothaveanyinterestinanycompaniesrecommendedinthisresearchreport.
MKEmayhave,withinthelastthreeyears,servedasmanagerorco-managerofapublicofferingofsecuritiesfor,orcurrentlymaymakeaprimarymarketinissuesof,anyoralloftheentitiesmentionedinthisreportormaybeproviding,orhaveprovidedwithintheprevious12months,significantadviceorinvestmentservicesinrelationtotheinvestmentconcernedorarelatedinvestmentandmayreceivecompensationfortheservicesprovidedfromthecompaniescoveredinthisreport.
OTHERSAnalystCertificationofIndependenceTheviewsexpressedinthisresearchreportaccuratelyreflecttheanalyst'spersonalviewsaboutanyandallofthesubjectsecuritiesorissuers;andnopartoftheresearchanalyst'scompensationwas,isorwillbe,directlyorindirectly,relatedtothespecificrecommendationsorviewsexpressedinthereport.
ReminderStructuredsecuritiesarecomplexinstruments,typicallyinvolveahighdegreeofriskandareintendedforsaleonlytosophisticatedinvestorswhoarecapableofunderstandingandassumingtherisksinvolved.
Themarketvalueofanystructuredsecuritymaybeaffectedbychangesineconomic,financialandpoliticalfactors(including,butnotlimitedto,spotandforwardinterestandexchangerates),timetomaturity,marketconditionsandvolatilityandthecreditqualityofanyissuerorreferenceissuer.
Anyinvestorinterestedinpurchasingastructuredproductshouldconductitsownanalysisoftheproductandconsultwithitsownprofessionaladvisersastotherisksinvolvedinmakingsuchapurchase.
Nopartofthismaterialmaybecopied,photocopiedorduplicatedinanyformbyanymeansorredistributedwithoutthepriorconsentofMKE.
DefinitionofRatingsMaybankKimEngResearchusesthefollowingratingsystem:BUYReturnisexpectedtobeabove10%inthenext12months(excludingdividends)HOLDReturnisexpectedtobebetween-10%to+10%inthenext12months(excludingdividends)SELLReturnisexpectedtobebelow-10%inthenext12months(excludingdividends)ApplicabilityofRatingsTherespectiveanalystmaintainsacoverageuniverseofstocks,thelistofwhichmaybeadjustedaccordingtoneeds.
Investmentratingsareonlyapplicabletothestockswhichformpartofthecoverageuniverse.
Reportsoncompanieswhicharenotpartofthecoveragedonotcarryinvestmentratingsaswedonotactivelyfollowdevelopmentsinthesecompanies.
Somecommontermsabbreviatedinthisreport(wheretheyappear):Adex=AdvertisingExpenditureFCF=FreeCashflowPE=PriceEarningsBV=BookValueFV=FairValuePEG=PERatioToGrowthCAGR=CompoundedAnnualGrowthRateFY=FinancialYearPER=PERatioCapex=CapitalExpenditureFYE=FinancialYearEndQoQ=Quarter-On-QuarterCY=CalendarYearMoM=Month-On-MonthROA=ReturnOnAssetDCF=DiscountedCashflowNAV=NetAssetValueROE=ReturnOnEquityDPS=DividendPerShareNTA=NetTangibleAssetROSF=ReturnOnShareholders'FundsEBIT=EarningsBeforeInterestAndTaxP=PriceWACC=WeightedAverageCostOfCapitalEBITDA=EBIT,DepreciationAndAmortisationP.
A.
=PerAnnumYoY=Year-On-YearEPS=EarningsPerSharePAT=ProfitAfterTaxYTD=Year-To-DateEV=EnterpriseValuePBT=ProfitBeforeTax25September2013Page9of9BANKINGSECTORMalaysiaMaybankInvestmentBankBerhad(AParticipatingOrganisationofBursaMalaysiaSecuritiesBerhad)33rdFloor,MenaraMaybank,100JalanTunPerak,50050KualaLumpurTel:(603)20591888;Fax:(603)20784194SingaporeMaybankKimEngSecuritiesPteLtdMaybankKimEngResearchPteLtd9TemasekBoulevard#39-00SuntecTower2Singapore038989Tel:(65)63369090Fax:(65)63396003LondonMaybankKimEngSecurities(London)Ltd6/F,20St.
Dunstan'sHillLondonEC3R8HY,UKTel:(44)2076219298Dealers'Tel:(44)2076262828Fax:(44)2072836674NewYorkMaybankKimEngSecuritiesUSAInc777ThirdAvenue,21stFloorNewYork,NY10017,U.
S.
A.
Tel:(212)6888886Fax:(212)6883500StockbrokingBusiness:Level8,TowerC,DataranMaybank,No.
1,JalanMaarof59000KualaLumpurTel:(603)22978888Fax:(603)22825136HongKongKimEngSecurities(HK)LtdLevel30,ThreePacificPlace,1Queen'sRoadEast,HongKongTel:(852)22680800Fax:(852)28770104IndonesiaPTMaybankKimEngSecuritiesPlazaBapindoCitibankTower17thFloorJlJend.
SudirmanKav.
54-55Jakarta12190,IndonesiaTel:(62)2125571188Fax:(62)2125571189IndiaKimEngSecuritiesIndiaPvtLtd2ndFloor,TheInternational16,MaharishiKarveRoad,ChurchgateStation,MumbaiCity-400020,IndiaTel:(91).
22.
6623.
2600Fax:(91).
22.
6623.
2604PhilippinesMaybankATRKimEngSecuritiesInc.
17/F,TowerOne&ExchangePlazaAyalaTriangle,AyalaAvenueMakatiCity,Philippines1200Tel:(63)28498888Fax:(63)28485738ThailandMaybankKimEngSecurities(Thailand)PublicCompanyLimited999/9TheOfficesatCentralWorld,20th-21stFloor,Rama1RoadPathumwan,Bangkok10330,ThailandTel:(66)26586817(sales)Tel:(66)26586801(research)VietnamInassociationwithMaybankKimEngSecuritiesJSC1stFloor,255TranHungDaoSt.
District1HoChiMinhCity,VietnamTel:(84)844555888Fax:(84)838386639SaudiArabiaInassociationwithAnfaalCapitalVilla47,TujjarJeddahPrinceMohammedbinAbdulazizStreetP.
O.
Box126575Jeddah21352Tel:(966)26068686Fax:(966)26068787SouthAsiaSalesTradingKevinFOYkevinfoy@maybank-ke.
com.
sgTel:(65)6336-5157USTollFree:1-866-406-7447NorthAsiaSalesTradingEddieLAUeddielau@kimeng.
com.
hkTel:(852)22680800USTollFree:18665982267www.
maybank-ke.
com|www.
maybank-keresearch.
com