THAILAND EQUITY RESEARCH 

 

Page | 1 | PHILLIP SECURITIES (THAILAND)  

VGI Global Media 3QFY17 net profit down 46.5% y-y

THAILAND | SET | MEDIA | COMPANY RESULTS BLOOMBERG VGI TB l REUTERS VGI.BK Soaring costs and SG&A expenses drag 3QFY17 net profit down 46.5% y-y VGI reported a 46.5% y-y drop in 3QFY17 net profit to Bt124mn dragged down by soaring costs and SG&A expenses despite revenue growth. For the quarter, sales/service revenue leapt 29.4% y-y to Bt672mn, chiefly boosted by additional revenue of Bt181mn from MACO following the consolidation of MACO in Jun 2016. Excluding MACO, sales/service revenue however dropped 5.4% y-y as revenues from BTS-related media and office building and other media businesses sagged 3.4% and 18.9% y-y, largely blaming the suspension of ads in digital media during the mourning period for the late monarch though the number of office buildings under media management contracts rose to 160. Costs and SG&A expenses skyrocketed 54.6% and 170.5% y-y respectively following the consolidation of MACO and on account of acquisition and business development expenses. VGI also recorded a loss from its affiliates in this period, reversing a profit of Bt11mn in the same year-ago period. 4QFY17 profit seen lower than 4QFY16 despite benefits of delayed ad budgets Notwithstanding that 4Q is traditionally the slack season for media business, we believe the consolidation of MACO and the benefits of delayed ad budgets from the mourning period should offset the seasonal impact in 4QFY17. On this basis, we expect VGI’s 4QFY17 revenue will be better than what it achieved in 4QFY16 but high levels of costs and SG&A expenses however remain a cause of concern for us and could possibly push 4QFY17 profit lower from 4QFY16. Rosier outlook for FY18 on better industry prospects and contribution from recent investments We see brighter outlook for VGI in FY18 on the back of improving industry prospects and contribution from its recent investments. Thailand’s total ad spending is expected to return to positive growth of between 3%-5% to Bt111bn-Bt113bn in 2017 after a contraction of 11.7% y-y in 2016. In our view, the pickup in ad spending would spur a recovery for both VGI and MACO while office building and other media business should perform better amid an increasing number of office buildings under media management contracts. VGI should also reap the benefits from full-year profit contribution and synergies from its recent acquisitions, including (1) MACO in Jun 2016, (2) Multi Sign Co in which MACO acquired 70% stake in Oct 2016, (3) Demo Power, in which VGI bought 40% in Nov 2016, (4) Aero Media Group in which VGI upped its stake to 30% in Aug 2016, (5) Malaysia-based Titanium Compass, 19% owned by VGI, scheduled to begin full ad operations on the MRT SBK Line, one of the three planned lines in the Klang Valley Mass Rapid Transit Project in Jul 2017, and (6) BSS-BSSH which provide digital and online media with the acquisition of 90% stake in both firms slated to be completed on Mar 31, 2017. ‘SELL’ rating with Bt5/share target price We will place our FY17 profit outlook for VGI under review for a possible downgrade after 9MFY17 profit came in at only Bt635mn, making it difficult to meet our full-year forecast of Bt979mn and we will roll forward our valuation to FY18 after we get a better glimpse of what 4QFY17 and FY18 will look like from management at the upcoming post-results analyst briefing on Feb 10, 2017. Following results announcement, VGI also declared an interim dividend of Bt0.035/share for 1HFY17 operations. The stock will trade ex-dividend (XD) on Feb 10, and the dividend is scheduled to be paid on Feb 27, 2017. For the meantime, we maintain our ‘SELL’ recommendation on VGI shares as current share prices have already exceeded our Bt5/share target price.

Ref. No.: CO2017_0077

Closing Price(Bt) 5.20

Target Price(Bt) 5.00 (‐1.73%)

COMPANY DATA

O/S Shares (mn) : 6,864         

Market Cap. (Btmn) :

Market Cap. (USDmn) :

52‐WK Hi/Lo (Bt) : 6.95/3.8

3M Average Daily T/O (mn) : 8.87

Par Value (Bt) : 0.10

MAJOR SHAREHOLDERS (%)

1. BTS Group 70.4

2. BBL 3.5

3. Thai NVDR Co. Ltd. 2.7

PRICE PERFORMANCE (%)

1MTH 3MTH 12MTH

ABS ‐7% ‐5% 30%

REL TO SET INDEX ‐9% ‐9% 7%

PRICE VS SET INDEX

Source: Bloomberg, PSR

KEY FINANCIALS

FYE Mar FY15 FY16 FY17E FY18E

Sales(Btmn) 2,963 2,106 2,664 4,416

Net Profit(Btmn) 838 941 979 1,034

EPS (Bt) 0.12 0.14 0.14 1.15

P/E (X) 42.6 37.1 37.1 4.5

BVPS (Bt) 0.27 0.33 0.51 0.54

P/B (X) 19.5 15.9 10.2 9.6

DPS (Bt) 0.17 0.11 0.11 0.11

Dividend Yield (%) 3.2 2.1 2.1 2.1

ROE  (%) 44.81 46.71 34.15 28.76

Source: Company, PSR Est.

**Multiples  and yields are based on latest closing price

VALUATION METHOD

SOTP

Siam Tiyanont

Securities Investment Analyst #17970

Tel: 66 2 635 1700 # 483

03 February 2017

35,695                                                   

1,018                                                      

30 September 2016

Sell (Maintain)

0

2

4

6

8

10

Feb‐14 Feb‐15 Feb‐16 Feb‐17

VGI TB EQUITY SETI (rebased)

  

Page | 2 | PHILLIP SECURITIES (THAILAND)  

VGI Global Media COMPANY RESULTS

Income Statement

Btmn 3Q17 2Q17 3Q16 q‐q+/‐ y‐y+/‐ 9M17 9M16 y‐y+/‐

Sa les  and  s e rvi ce s 672 712 520 ‐5.5% 29.4% 1,935 1,606 20.5%

Cos ts  of s a l es   274 273 178 0.3% 54.6% 760 578 31.4%

Gross profit 398 438 342 ‐9.2% 16.3% 1,175 1,028 14.4%

Se l l i ng expens es 77 65 22 19.0% 248.5% 176 87 101.1%

Admini s tra ti ve  expenses 158 120 65 31.8% 143.9% 369 200 84.3%

Operating profit  163 254 255 ‐35.8% ‐36.2% 631 740 ‐14.8%

Othe r i ncome 11 10 12 10.0% ‐1.2% 28 31 ‐8.3%

Ga in/los s  from  a ffi l i a te s ‐1 2 11 ‐183.7% ‐112.8% 4 21 ‐80.9%

Othe r expens e 0 2 0 ‐84.8% n.m. 6 1 472.2%

EBIT 173 263 277 ‐34.4% ‐37.8% 657 791 ‐16.9%

Inte res t expens e 8 4 2 95.2% 233.9% 14 9 44.2%

EBT 165 259 275 ‐36.4% ‐40.0% 644 781 ‐17.6%

Ta xa ti on 47 52 53 ‐8.8% ‐12.1% 172 159 8.0%

EAT 118 208 222 ‐43.2% ‐46.8% 472 622 ‐24.2%

Minori ty ‐6 10 0 ‐161.3% n.m. 8 0 n.m.

Net profit before extra 124 197 222 ‐37.1% ‐43.9% 464 622 ‐25.4%

Extra ordina ry i tems 0 0 10 ‐100.0% ‐100.0% 171 109 57.4%

Net profit  124 198 232 ‐37.1% ‐46.5% 635 731 ‐13.1%

EPS  (Bt) 0.02 0.03 0.03 ‐37.1% ‐46.5% 0.09 0.11 ‐13.1%

Key Financial Ratio

% 3Q17 2Q17 3Q16 q‐q+/‐ y‐y+/‐ 9M17 9M16 y‐y+/‐

Cos t of s a le s /s a l e s   40.8% 38.4% 34.2% 6.2% 19.4% 39.27% 36.01% 9.1%

SG&A exp/s a l e s   35.0% 26.0% 16.7% 34.8% 109.1% 28.14% 17.90% 57.2%

Gros s  margin 59.2% 61.6% 65.8% ‐3.9% ‐10.1% 60.73% 63.99% ‐5.1%

Opera ti ng profi t margin 24.2% 35.6% 49.1% ‐32.0% ‐50.7% 32.59% 46.09% ‐29.3%

Net profi t margin 18.5% 27.7% 44.7% ‐33.4% ‐58.6% 32.82% 45.52% ‐27.9%

Balance Sheet 

Btmn 3Q17 2Q17 3Q16 q‐q+/‐ y‐y+/‐ 9M17 9M16 y‐y+/‐

As se ts 5,600 4,617 3,555 21.3% 57.5% 5,600 3,555 57.5%

Li abi l i ti e s 2,095 1,682 1,167 24.5% 79.5% 2,095 1,167 79.5%

Pa id ‐up  (mn  s hrs ) ‐ Pa r Bt0.1 6,864 6,864 6,864 0.0% 0.0% 6,864 6,864 0.0%

Equi ti e s 3,506 2,934 2,388 19.5% 46.8% 3,506 2,388 46.8%

BVPS  (Bt) 0.60 0.57 0.49 4.2% 22.3% 0.60 0.49 22.3%

Debt/equi ty (x) 0.51 0.43 0.35 19.5% 46.8% 0.51 0.35 46.8%

  

Page | 3 | PHILLIP SECURITIES (THAILAND)  

VGI Global Media COMPANY RESULTS

  

Page | 4 | PHILLIP SECURITIES (THAILAND)  

VGI Global Media COMPANY RESULTS

Corporate Governance ‐ 2016

AMATA AOT BAFS BAY BCP BIGC BTS BWG CK CPF

CPN CSL DELTA DEMCO DRT DTAC DTC EASTW EGCO GFPT

GPSC GRAMMY HANA HMPRO INTUCH IRPC IVL KBANK KCE KKP

KTB KTC LHBANK LPN MBK MCOT MINT MONO NKI NYT

OTO PHOL PPS PS PSL PTT PTTEP PTTGC  QH QTC

RATCH SAMART SAMTEL SAT SC SCB SCC SCCC SE‐ED SIM

SITHAI SNC SPALI SSSC STEC SVI TCAP THCOM TISCO TKT

TMB TNDT TOP TSC TTCL TU UV VGI WACOAL WAVE

2S AAV ACAP ADVANC AGE AH AHC AKP ALUCON AMANAH

ANAN AP APCO APCS ARIP ASIA ASIMAR ASK ASP AUCT

AYUD BANPU BBL BDMS BEM BFIT BLA BOL BROOK CEN

CENTEL CFRESH CGH CHG CHO CHOW CI CIMBT CKP CM

CNS CNT COL CPI DCC EA ECF EE ERW FORTH

FPI GBX GC GCAP GL GLOBAL GLOW GUNKUL HOTPOT HYDRO

ICC ICHI IFEC INET IRC JSP K KSL KTIS L&E

LANNA LH LHK LIT LOXLEY LRH LST M MACO MALEE

MBKET MC MEGA MFC MOONG MSC MTI MTLS NCH NOBLE

NSI NTV OCC OGC OISHI ORI PACE PAP PB PCSGH

PDI PE PG PJW PLANB PM PPP PR PRANDA PREB

PRG PRINC PT PTG PYLON Q‐CON RICHY ROBINS RS RWI

S S & J SABINA SALEE SAMCO SCG SEAFCO SFP SIAM SINGER

SIS SMK SMPC SMT SNP SPI SPPT SPRC SR SSF

SST STA SUSCO SUTHA SWC SYMC SYNEX SYNTEC TAE TAKUNI

TASCO TBSP TCC TF TFI TGCI THAI THANA THANI THIP

THRE THREL TICON TIPCO TK TKS TMC TMI TMILL TMT

TNITY TNL TOG TPC TPCORP TRC TRU TRUE TSE TSR

TSTE TSTH TTA TTW TVD TVO TWPC UAC UP UPF

VIH VNT WINNER YUASA ZMICO

AEC AEONTS AF AIRA AIT AJ AKR AMARIN AMATAV AMC

APURE AQUA ARROW AS BA BEAUTY BEC BH BIG BJC

BJCHI BKD BR BROCK BRR BTNC CBG CGD CHARAN CITY

CMR COLOR COM7 CPL CSC CSP CSR CSS CTW DCON

DIMET DNA EARTH EASON ECL EFORL EPCO EPG ESSO FE

FER FOCUS FSMART FSS FVC GEL GIFT GLAND GOLD GSTEL

GYT HPT HTC HTECH IFS IHL ILINK INSURE IRCP IT

ITD J JMART JMT JUBILE JWD KASET KBS KCAR KGI

KKC KOOL KWC KYE LALIN LPH MAJOR MAKRO MATCH MATI

M‐CHAI MDX MFEC MJD MK MODERN MPG NC NCL NDR

NEP NOK NUSA PATO PCA PDG PF PICO PIMO PL

PLAT PLE PMTA PPM PRIN PSTC QLT RCI RCL RICH

RML RPC SANKO SAPPE SAWAD SCI SCN SCP SEAOIL SENA

SIRI SKR SLP SMG SMIT SORKON SPA SPC SPCG SPVI

SSC STANLY STPI SUC TACC TCCC TCMC TEAM TFD TFG

TIC TIW TKN TLUXE TMD TNP TOPP TPA TPAC TPCH

TPIPL TPOLY TRITN TRT TTI TVI TWP U UBIS UMI

UPOIC UT UWC VIBHA VPO VTE WICE WIIK WIN XO

Score Range

< 50%

50‐59%

60‐69%

70‐79%

80‐89%

90‐100%

The disclosure of the survey result of the Thai  Institute of Directors  Association (IOD) 

regarding corporate governance is  made pursuant to the Office of the Securities  and 

Exchange Commission. The survey of the IOD is  based on the information of a  company 

l isted on the Stock Exchange of Thailand and the Market for Alternative disclosure to the 

public and able to be accessed by a  general  public investor. The results, therefore, is  from 

the perspective of a third party. It is  not an evaluation of operation and is  not based on 

inside information.

The survey result is  as  of the date appearing in the Corporate Governance Report of Thai  

Listed Companies. As  a result, the survey result may be changed after that data. Phil l ip 

Securities  (Thai land) of securities  company does  not confirm nor certify the accuracy of 

such survey result.

No logo given

Number of Logo

Results Presentation

  

Page | 5 | PHILLIP SECURITIES (THAILAND)  

VGI Global Media COMPANY RESULTS

Declared

2S A ABC ABICO ACAP AEC AF AGE AH AI

AIE AIRA ALUCON AMARIN AMATA ANAN AOT AP APCO APCS

APURE AQUA AS ASIA ASIAN ASIMAR ASK BCH BEAUTY BFIT

BH BIGC BJCHI BKD BLAND BROCK BROOK BRR BSBM BTNC

CEN CGH CHARAN CHO CHOTI CHOW CI CM COL CPALL

CPF CPL CSC CSR CSS DELTA DNA EA ECF EE

EFORL EPCO ESTAR EVER FC FER FNS FPI FSMART FVC

GC GEL GFPT GIFT GLOBAL GPSC GREEN GUNKUL HMPRO HOTPOT

ICHI IEC IFS ILINK INET INOX INSURE IRC J JAS

JMART JMT JTS JUBILE JUTHA K KASET KBS KC KCAR

KSL KTECH KYE L&E LALIN LPN LRH LTX LVT M

MAKRO MALEE MBAX MC MCOT MEGA MFEC MIDA MILL MINT

MJD MK ML MPG MTLS NBC NCH NCL NDR NINE

NMG NNCL NPP NTV NUSA OCC OGC PACE PAF PCA

PCSGH PDG PDI PIMO PK PLANB PLAT PRANDA PREB PRG

PRINC PSTC PYLON QH RML ROBINS ROCK ROH ROJNA RP

RWI SAMCO SANKO SAUCE SC SCCC SCN SEAOIL SE‐ED SENA

SGP SITHAI SKR SMIT SMK SORKON SPALI SPCG SPPT SPRC

SR SRICHA STA STANLY SUPER SUSCO SYMC SYNEX SYNTEC TAE

TAKUNI TASCO TBSP TEAM TFG TFI THAI TIC TICON TIP

TKT TLUXE TMC TMI TMILL TMT TPA TPP TRT TRU

TRUE TSE TSI TSTE TTW TU TVD TVO TVT TWPC

U UBIS UKEM UNIQ UOBKH UREKA UWC VGI VIBHA VNG

VNT WAVE WHA WICE WIIK WIN XO ZMICO

Certified

ADVANC AKP AMANAH ASP AYUD BAFS BANPU BAY BBL BCP

BKI BLA BTS BWG CENTEL CFRESH CIMBT CNS CPI CPN

CSL DCC DEMCO DIMET DRT DTAC DTC EASTW ECL EGCO

ERW FE FSS GBX GCAP GLOW HANA HTC ICC IFEC

INTUCH IPRC IVL KBANK KCE KGI KKP KTB KTC LANNA

LHBANK LHK MBK MBKET MFC MINT MONO MOONG MSC MTI

NKI NSI OCEAN PB PE PG PHOL PM PPP PPS

PR PSL PT PTG PTT PTTEP PTTGC Q‐CON QLT RATCH

S & J SABINA SAT SCB SCC SCG SINGER SIS SMPC SNC

SNP SPC SPI SSF SSI SSSC SVI TCAP TCMC TF

TGCI THANI THCOM THRE THREL TIPCO TISCO TMB TMD TNITY

TNL TOG TOP TPC TPCORP TSC TSTH TTCL TVI WACOAL

Non‐participation

AAV ACC ADAM AEONTS AHC AFC AIT AJ AJD AKR

ALLA ALT AMATAV AMC APX AQ ARIP ARROW ASEFA ASN

ATP30 AUCT BA BAT‐3K BCPG BDMS BEC BEM BGT BIG

BIZ BJC BLISS BM BOL BPP BR BRC BSM BTC

BTW BUI CBG CCET CCN CCP CGD CHEWA CHG CHUO

CIG CITY CK CKP CMO CMR CNT COLOR COM7 COMAN

CPH CPR CRANE CSP CTW CWT DAII DCON DCORP DRACO

DSGT DTCI EARTH EASON EIC EKH EMC EPG ESSO F&D

FANCY FMT FN FOCUS FORTH GENCO GJS GL GLAND GOLD

GRAMMY GRAND GSTEL GTB GYT HARN HFT HPT HTECH HYDRO

IHL IRCP IT ITD ITEL JCT JSP JWD KAMART KCM

KDH KIAT KKC KOOL KTIS KWC KWG LDC LEE LH

LIT LOXLEY LPH LST MACO MAJOR MANRIN MATCH MATI MAX

M‐CHAI MCS MDX MODERN MPIC NC NEP NETBAY NEW

NEWS NFC NOBLE NOK NPK NWR NYT OHTL OISHI ORI

OTO PAE PAP PATO PERM PF PICO PJW PL PLE

PMTA POLAR POMPUI POST PPM PRAKIT PRECHA PRIN PRO PSH

PTL QTC RAM RCI RCL RICH RICHY RJH RPC RS

S S11 SAFARI SALEE SAM SAMART SAMTEL SAPPE SAWAD SAWANG

SCI SCP SEAFCO SELIC SF SFP SGF SHANG SIAM SIM

SIMAT SIRI SLP SMART SMM SMT SOLAR SPA SPG SPORT

SPVI SQ SSC SST STAR STEC STHAI STPI SUC SUTHA

SVH SVOA SWC T TACC TAPAC TC TCB TCC TCCC

TCJ TCOAT TFD TGPRO TH THANA THE THIP THL TIW

TK TKN TKS TM TMW TNDT TNH TNP TNPC TNR

TOPP TPAC TPBI TPCH TPIPL TPOLY TPROP TR TRC TRITN

TRUBB TSF TSR TTA TTI TTL TTTM TUCC TWP TWZ

TYCN UAC UEC UMI UMS UP UPA UPF UPOIC UT

UTP UV UVAN VARO VI VIH VPO VTE WG WINNER

WORK WORLD WP WR YCI YNP YUASA

Companies participating in Thailand's Private Sector Collective Action Coalition Against 

Corruption programme (Thai CAC) under Thai Institute of Directors (as of October 28, 2016)

  

 

PHILLIP SECURITIESS (THAILAND) | 6 | P a g e   

VGI Global Media COMPANY RESULTS

The SEC has  a  policy to promote l isted companies  and intermediaries, i .e. securities  companies, asset management companies, derivative business  companies   

(“intermediaries”) to establish anti‐corruption measures  as  part of their business  operation. The SEC has  supported Thaipat Institute in developing the Anti‐corruption 

Progress  Indicator of l isted companies  and intermediaries. The Indicator comprises  five levels: Level  1: Committed, Level  2: Declared, Level  3: Established,

 Level  4: Certified,  and Level  5: Extended. 

The SEC continues  to develop business  sustainabil ity among l isted companies  and intermediaries  with a  focus  on anti‐corruption by supporting them to join Thailand’s  

Private Sector Collective Action Coalition Against Corruption (CAC) and to disclose their corporate governance progress  on http://www.cgthai land.org.  

Levels of Commitment

Companies participating in Thailand's Private Sector Collective Action Coalition Against Corruption 

programme (Thai CAC) under Thai Institute of Directors (as of October 28, 2016)

  

 

PHILLIP SECURITIESS (THAILAND) | 7 | P a g e   

VGI Global Media COMPANY RESULTS

Industry Group Name Sector Name Sector Index

Agro & Food Industry[AGRO]  Agribusiness AGRI

Food & Beverage FOOD

Consumer Products[CONSUMP] Fashion FASHION

Home & Office Products HOME

Personal  Products  & Pharmaceuticals PERSON

Financials  [FINCIAL] Banking BANK

Finance & Securities FIN

Insurance INSUR

Industrials  [INDUS] Automotive AUTO

Industrial  Materials  & Machinery IMM

Packaging PKG

Paper & Printing Materials PAPER

Petrochemicals  & Chemicals PETRO

Steel STEEL

Property & Construction[PROPCON] Construction Materials CONMAT

Construction Services CONS 

Property Development PROP

Property Fund & REITs PF&REIT 

Resources  [RESOURC] Energy & Util ities ENERG

Mining MINE

Services  [SERVICE] Commerce COMM

Media  & Publishing MEDIA

Health Care Services HELTH

Tourism & Leisure TOURISM

Professional  Services PROF

Transportation & Logistics TRANS

Technology [TECH] Electronic Components ETRON

Information & Communication Technology ICT

PSR Rating SystemCapital Gain Recommendation

> 15% BUY

> 5% ‐ 15% ACCUMULATE / TRADING BUY

> 0% ‐ 5% NEUTRAL

0 <= SELL

Remarks

We do not base our recommendations  entirely on the  above quantitative return bands.  We consider qualitative factors  l ike (but 

not l imited to) a  stock's  risk reward profi le, market sentiment, recent rate of share price appreciation, presence or absence of 

stock price catalysts, and speculative undertones  surrounding the stock, before making our final  recommendation 

Contact Information of Hong Kong Representatives

Research

Benny WANG

Dealing Director

(852) 2277 6720

bennywang@phillip.com.hk

ZHANG Jing

Research Analyst

Transportation and Automobiles

(86) 21 51699400-103

zhangjing@phillip.com.cn

Sales

FAN Guohe

Research Analyst

Pharmaceutical, Health Care, TMT

(86) 21 51699400-110

fanguohe@phillip.com.cn

Aric AU Matthew WONG

Manager, Corporate & Institutional Sales Manager, International Sales

(852) 2277 6783 (852) 2277 6678

corporatesales@phillip.com.hk foreignstock@phillip.com.hk

Yoshikazu SHIKITA

Manager, International Sales

(Japan Team)

(852) 2277 6624

yshikita@phillip.com.hk

PHILLIP RESEARCH STOCK SELECTION SYSTEMS

Total Return Recommendation Rating Remarks

> +20% Buy 1 >20% upside from the current price

+5% to +20% Accumulate 2 +5% to +20% upside from the current price

-5% to +5% Neutral 3 Trade within +/- 5% from the current price

-5% to -20% Reduce 4 -5% to -20% downside from the current price

< -20% Sell 5 -20% downside from the current price

We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors like (but not limited to) a stock’s risk reward profile, market sentiment, recent rate of share price appreciation, presence or absence of stock price catalysts, and speculative undertones surrounding the stock, before making our final recommendation

GENERAL DISCLAIMER

This publication is distributed in Hong Kong by Phillip Securities (Hong Kong) Limited (“PSHK”), which is licensed in Hong Kong by the Securities and Futures Commission for regulated activities, including Type 4 regulated activity (advising on securities). This publication was originally prepared by analysts from our overseas affiliates. The information contained herein is based on sources that PSHK and its affiliates believe to be accurate and any analysis, forecasts, projections, expectations and opinions contained in this publication are based on such information and are expressions of belief only. This material is prepared for general circulation to clients and is not intended to provide tailored investment advice and does not take into account the individual financial situation and objectives of any specific

person who may receive this report. Investors should seek financial advice regarding the appropriateness of any investments or securities discussed or recommended in this report. This report is not (and should not be construed as) a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on such business in that jurisdiction. This research report may not be redistributed, retransmitted or disclosed, in whole or in part or and any form or manner, without the express written consent of PSHK. Please direct any enquiries to foreignstock@phillip.com.hk.

Investment involves risks. For details of product risks, please view the Risk Disclosures Statement on http://www.phiIlip.com.hk.

PhillipCapital's Global Presence

SINGAPORE

Phillip Securities Pte Ltd

HONG KONG

Phillip Securities (HK) Ltd

INDONESIA

PT Phillip Securities Indonesia

THAILAND

Phillip Securities (Thailand) Public Company Limited

UNITED KINGDOM

King & Shaxson Capital Ltd

AUSTRALIA

Phillip Capital Australia

MALAYSIA

Phillip Capital Management Sdn Bhd

JAPAN

PhillipCapital Japan K.K.

CHINA

Phillip Financial Advisory (Shanghai) Co. Ltd

FRANCE

King & Shaxson Capital Ltd

UNITED STATES

Phillip Futures Inc.