THAILAND EQUITY RESEARCH 

 

Page | 1 | PHILLIP SECURITIES (THAILAND)  

Sappe 4QFY16 profit up sharply on strong core business & ex-gain

THAILAND | SET | FOOD | COMPANY RESULTS BLOOMBERG SAPPE TB l REUTERS SAPPE.BK 4QFY16 net profit up an astounding 164.2% y-y SAPPE delivered a set of superb results in 4QFY16 driven by a spectacular showing from its core business and a Bt32.9mn gain from the divestment of its Indonesian subsidiary. For the quarter, net profit rose an astonishing 164.2% y-y to Bt97mn. Stripping out the above ex-gain, core profit grew 74.5% y-y to Bt64mn in line with our expectations. Even though sales rose a meager 1.7% y-y as solid growth in export sales helped offset a contraction in domestic sales in Thailand hit by cut-throat competition and the impact from the mourning period for the late monarch, gross profit margins however expanded substantially to 43.3% in this period from 37.4% in the same year-ago period, largely benefiting from production cost savings program, and SG&A expenses to sales ratio also fell dramatically following a delay in marketing plan from late FY16 to early FY17. In this period, SAPPE also realized a small loss of Bt3.1mn from its JV ‘All Coco Group’ as a result of huge expenses during the initial stage of operations. For the whole of FY16, net profit jumped 36.5% y-y to Bt410.2mn. Core profit cleaned of ex-items rose 25.5% y-y to Bt377.3mn on the back of growing sales and better margins. Full-year sales came in at Bt2,712.5mn, up 7.9% y-y as a buoyant growth of 18.2% in export sales largely driven by (i) reviving sales in China after the intensity of channel coverage by a new distributor and (ii) improved sales in Indonesia amid better economic conditions made up for a 6.9% y-y dip in domestic sales in Thailand, hurt by fierce competition and slowing economic growth. Gross profit margins widened to 43.8% from 40.7% a year earlier thanks to the success of its production cost savings program and the benefit of a weaker baht. Divestment in Indonesian subsidiary We are optimistic on the divestment of its entire stake in Indonesian subsidiary PT. Sappe Indonesia. In our view, the divestment is unlikely to deal a heavy blow to its overall business as SAPPE will remain the sole exporter of products to Indonesia and it will give PT. Sappe Indonesia, which imports and distributes products in Indonesia a more flexible management structure and enhance its go-to-market efficiency for business expansion. SAPPE also has a buy-back option within three years of the divestment. Earnings upgrade for FY17 on brighter-than-expected export sales outlook We have a more bullish view on its earnings outlook for FY17 after the divestment in PT. Sappe Indonedia takes the expense burden in Indonesia off SAPPE. In addition, the better-than-expected export sales outlook also gives us an excuse to raise our FY17 profit growth outlook for SAPPE to 7.9% y-y to Bt407.3mn from Bt397.7mn. In our new forecast, we expected FY17 revenue will grow 6.1% y-y to Bt2,877.5mn. Even though domestic sales in Thailand are expected to hold flat in FY17, we believe sales would get a huge growth boost from (i) continued sales growth momentum in China, driven by Sappe China’s improved management efficiency and intensity of channel coverage by a new distributor, (ii) a more aggressive expansion plan into traditional trade market in Indonesia, (iii) a plan to make further inroads into coconut water market through its JV ‘All Coco Group,’ and (iv) the launch of new products. However, gross profit margins are likely to get a little squeezed to 43.3% as the negative effect of a stronger baht would outweigh the positive impact from tighter cost controls. SG&A expenses to sales ratio tends to drift lower to 26.6% from 28.4% a year ago as SAPPE will no longer bear the expenses from PT. Sappe Indonesia after the divestment. However, SAPPE is expected to see further losses from its JV ‘All Coco Group’ as it remains in the initial years of operations and its growth plan still makes little progress. Rating cut to ‘TRADING BUY’ with downwardly revised FY17 target price of Bt29.70/ share Despite earnings upgrade, we nudge our FY17 target price for SAPPE lower to Bt29.70/ share as we cut our P/E target from 25x to 22x on par with the beverage sector’s average. We also cut our rating on SAPPE shares to ‘TRADING BUY’ due to limited upside from current trading levels. The new rating reflects our bullish view on its earnings outlook for FY17, buoyed by continued strong growth prospects for export sales on the back of further market expansion and improving business efficiency. For a new sugar tax on soft drinks proposed by the Excise Department, we believe the impact appears minimal on SAPPE as the majority of its products sold locally in Thailand are sugar-free.

Ref. No.: CO2017_0142

Closing Price(Bt) 28.00

Target Price(Bt) 29.70 (+8.26%)

COMPANY DATA

O/S Shares  (mn) : 302           

Market Cap. (Btmn) :

Market Cap. (USDmn) :

52‐WK Hi/Lo (Bt) : 38.5/14.2

3M Average Daily T/O (mn) : 1.56

Par Value (Bt) : 1.00

MAJOR SHAREHOLDERS (%)

1.Miss  Piyajit Ruckariyapong 18.0

2.Mr. Adisuk Ruckariyapong 17.2

3.Mr. Anuparb Ruckariyapong 15.4

PRICE PERFORMANCE (%)

1MTH 3MTH 1YR

ABS ‐3% ‐21% 4%

REL TO SET INDEX ‐1% ‐24% 16%

PRICE VS SET INDEX

Source: Bloomberg, PSR

KEY FINANCIALS

FYE Dec FY15 FY16 FY17E FY18E

Sales(Btmn) 2,514 2,712 2,877 3,020

Net Profit(Btmn) 301 410 407 434

EPS (Bt) 1.00 1.36 1.35 1.44

P/E (X) 28.0 20.6 20.7 19.5

BVPS (Bt) 5.86 6.63 7.37 8.20

P/B (X) 4.8 4.2 3.8 3.4

DPS (Bt) 0.42 0.60 0.61 0.65

Dividend Yield (%) 1.5 2.1 2.2 2.3

ROE  (%) 18.13 21.82 19.29 18.48

Debt/Equity (X) 0.29 0.23 0.24 0.21

Source: Company, PSR Est.

**Multiples and yields are based on latest closing price

VALUATION METHOD

PE'17(22x)

Naree Apisawaittakan

Securities  Investment Analyst # 17971

Tel: 66 2 635 1700 # 484

Pattraporn Boonmalert

Assistance Analyst

243                                                              

04 May 2016

Trading Buy (Downgraded from Buy)

01 March 2017

8,466                                                         

0

10

20

30

40

50

Feb‐14 Feb‐15 Feb‐16 Feb‐17

SAPPE TB  EQUITY SETI (rebased)

  

Page | 2 | PHILLIP SECURITIES (THAILAND)  

Sappe COMPANY RESULTS

Income Statement

Btmn 4Q16 3Q16 4Q15 q‐q+/‐ y‐y+/‐ 2016 2015 y‐y+/‐

Sa l e s  and  s e rvi ces 643 652 632 ‐1% 2% 2,712 2,514 8%

Cos ts  of s a le s   365 376 396 ‐3% ‐8% 1,524 1,491 2%

Gross profit 278 277 237 1% 18% 1,189 1,023 16%

Se l l i ng expenses 130 113 152 15% ‐15% 506 462 9%

Admini s tra ti ve  expenses 73 60 67 22% 9% 263 230 15%

Operating profit  75 104 17 ‐28% 331% 419 331 27%

Other i ncome 43 12 10 260% 326% 80 42 87%

Ga in/los s  from  a ffi l i a te s ‐3 0 0 n.m. n.m. ‐3 0 n.m.

Other expense 0 0 ‐4 n.m. 100% 0 22 ‐100%

EBIT 115 116 32 ‐1% 260% 495 351 41%

Inte re s t expense 0 0 0 2% ‐4% 0 0 3%

EBT 115 116 32 ‐1% 260% 495 350 41%

Taxa ti on 19 27 4 ‐30% 341% 97 72 34%

EAT 96 89 28 8% 248% 398 278 43%

Minori ty ‐1 ‐5 ‐9 88% 94% ‐12 ‐23 46%

Net profit before extra 97 94 37 4% 164% 410 301 36%

Extraordina ry i tems 0 0 0 n.m. n.m. 0 0 n.m.

Net profit  97 94 37 4% 164% 410 301 36%

EPS  (Bt) 0.32 0.31 0.12 4% 163% 1.36 1.00 36%

Key Financial Ratio

% 4Q16 3Q16 4Q15 q‐q+/‐ y‐y+/‐ 2016 2015 y‐y+/‐

Cos t of s a l e s /s a l e s   56.74% 57.60% 62.56% ‐2% ‐9% 56.18% 59.31% ‐5%

SG&A exp/s a l e s   31.57% 26.47% 34.68% 19% ‐9% 28.38% 27.54% 3%

Gros s  margin 43.26% 42.40% 37.44% 2% 16% 43.82% 40.69% 8%

Opera ti ng  profi t margin 11.69% 15.93% 2.76% ‐27% 324% 15.44% 13.15% 17%

Net profi t margin 15.07% 14.35% 5.80% 5% 160% 15.12% 11.96% 26%

Balance Sheet 

Btmn 4Q16 3Q16 4Q15 q‐q+/‐ y‐y+/‐ 2016 2015 y‐y+/‐

As s e ts 2,452 2,408 2,275 2% 8% 2,452 2,275 8%

Lia bi l i ti e s 451 459 515 ‐2% ‐12% 451 515 ‐12%

Pa id ‐up  (mn  s hrs ) ‐ Pa r Bt1 302 302 301 0% 0% 302 301 0%

Equi ti e s 2,001 1,948 1,759 3% 14% 2,001 1,759 14%

BVPS  (Bt) 6.63 6.46 5.85 3% 13% 6.63 5.85 13%

Debt/equi ty (x) 0.2 0.2 0.3 ‐4% ‐23% 0.2 0.3 ‐23%

  

Page | 3 | PHILLIP SECURITIES (THAILAND)  

Sappe COMPANY RESULTS

Financials

Income Statement Cash Flow

FYE Dec, Btmn FY15 FY16 FY17E FY18E FYE Dec, Btmn FY15 FY16 FY17E FY18E

Revenue 2,514 2,712 2,877 3,020 CFO

EBITDA 459 657 648 684 PBT 205 301 300 322

Depreciation & Amortisation 108 158 129 141 Adjustments 249 327 344 366

EBIT 351 498 519 542 WC changes ‐80 135 ‐90 32

Net Finance  (Expense)/Inc 0 0 0 0 Cash generated from ops 375 763 554 719

Other i tems 0 0 0 0 Others ‐88 ‐91 ‐107 ‐112

Associates  & JVs 0 ‐3 ‐4 4 Cashflow from ops 287 671 447 607

Exceptiona l  i tems 0 0 0 0 CFI

Profit Before Tax 350 498 519 542 CAPEX, net ‐509 ‐132 ‐100 ‐100

Taxation 72 97 107 112 Others 64 ‐145 0 0

Profit After Tax 278 398 407 434 Cashflow from investments ‐445 ‐277 ‐100 ‐100

Non‐control l ing Interest ‐23 ‐12 0 0 CFF

Net Income, reported 301 410 407 434 Share  i s suance 8 10 0 0

Net Income, adj. 301 410 407 434 Loans, net of repayments ‐0 ‐0 0 0

Dividends ‐92 ‐127 ‐181 ‐185

Per share data Others 5 ‐0 ‐4 4

FYE Dec, Bt FY15 FY16 FY17E FY18E Cashflow from financing ‐79 ‐117 ‐185 ‐181

EPS, reported 1.00 1.36 1.35 1.44 Net change in cash ‐238 277 162 326

EPS, adj. 1.00 1.36 1.35 1.44 Effects  of exchange  rates 0 ‐0 0 0

DPS 0.42 0.60 0.61 0.65 CCE, end 85 359 520 846

BVPS 5.86 6.63 7.37 8.20

Valuation Ratios

Balance Sheet  FYE Dec FY15 FY16 FY17E FY18E

FYE Dec, Btmn FY15 FY16 FY17E FY18E P/E (X), adj.** 28.0 20.6 20.7 19.5

Cash 85 359 520 846 P/B (X), adj.** 4.8 4.2 3.8 3.4

Investments 153 227 227 227 Dividend Yield (%) 1.5 2.1 2.2 2.3

Accounts  Receivables 528 373 500 470

Inventories 197 157 192 189 Growth

Others 13 7 7 7 FYE Dec, % FY15 FY16 FY17E FY18E

Total current assets 976 1,123 1,447 1,740 Revenue ‐10.76 7.91 6.08 4.95

PPE 1,208 1,112 1,084 1,043 EBITDA ‐18.98 43.05 ‐1.37 5.55

Intangibles 54 58 58 58 EBIT ‐25.97 42.12 4.10 4.57

Associates  & JVs 0 141 141 141 Net Income, adj. ‐16.69 36.50 ‐0.72 6.59

Investments 0 0 0 0

Others 37 17 17 17 Margins 

Total non‐current assets 1,298 1,329 1,300 1,259 FYE Dec, % FY15 FY16 FY17E FY18E

Total Assets 2,275 2,452 2,746 2,998 EBITDA margin 18.26 24.21 22.50 22.63

Short term loans 5 4 4 4 EBIT margin 13.95 18.37 18.03 17.96

Accounts  Payables 456 382 454 453 Net Profi t Margin 11.96 15.12 14.15 14.37

Others 37 46 46 46

Total current liabilities 497 432 504 503 Key Ratios

Long term loans 0 0 0 0 FYE Dec FY15 FY16 FY17E FY18E

Others 18 19 19 19 ROE (%) 18.13 21.82 19.29 18.48

Total liabilities 515 451 523 522 ROA (%) 13.80 17.36 15.67 15.11

Non‐control l ing interests 54 ‐4 ‐8 ‐4 Net Debt/(Cash) (Btmn) ‐80 ‐354 ‐516 ‐842

Shareholder Equities 1,759 2,001 2,223 2,476 Net Gearing (X) 0.41 0.21 0.18 0.06

**Based on latest closing price

Source: Company Data , PSR est

  

Page | 4 | PHILLIP SECURITIES (THAILAND)  

Sappe COMPANY RESULTS

Fact Sheet

GENERAL INFORMATION RISK FACTORS

Address : 1. Competitive  ri sk

2. Exchange  rate  ri sk

3. Risk from new product development

Tel :

Fax:

URL:

Market/Sector:

BUSINESS DESCRIPTION KEY DEVELOPMENT

REVENUE BREAKDOWN as of KEY FINANCIAL SUMMARY

Btmn 4Q16 3Q16 2Q16 1Q16 4Q15

Sa les 643          652          825          592          632         

Gross  profi t 278          277          383          251          237         

Net profi t  97            94            152          68            37           

Assets 2,452       2,408       2,400       2,335       2,275      

Liabi l i ties 451          459          546          508          515         

Equities 2,001       1,948       1,855       1,827       1,759      

EPS (Bt) 0.32         0.31         0.50         0.23         0.12        

BVPS (Bt) 6.63         6.46         6.06         5.85         5.73        

GPM (%) 43% 42% 46% 42% 37%

NPM (%) 15% 14% 18% 11% 6%

Source: Company, PSR  Source: Company, PSR 

CUSTOMER BREAKDOWN as of PEER COMPARISON * updated on

as of Mkt Cap. P/E P/BV Div Yield

(Btmn) (x) (x) (%)

Sappe  PCL

SAPPE TB 12/16 8,466       20.6 na 1.5

TIPCO Foods  PCL

TIPCO TB 12/16 6,901       8.5 na 3.4

Ichitan Group PCL

ICHI  TB 12/16 13,260     36.4 na 4.9

Malee  Group PCL

MALEE TB 12/16 14,350     27.1 na 1.4

Source: Bloomberg, PSR 

Source: Company, PSR 

9/3 Bang Chan Industria l  Estate, 

Soi  Seri  Thai  56, Seri  Thai  Road, 

Khanna  Yao Sub‐dis trict, Khanna  

Yao District Bangkok

Food & Beverage

SAPPE i s  a  manufacturer and dis tributor of beverage  products

including 1) Functiona l  beverages  2) Frui t juices  3)Functiona l

powder and 4) Other RTD products

Company 

name

‐Yr 2015 Moved production plant to Klong 13

‐Yr 2013 Regis tered in to Stock Exchange  of Thai land

‐Yr 2012 Changed to publ ic company l imited

‐Yr 2011 Increased paid‐up capi ta l  from 5 mil l ion baht to 225 

mil l ion baht

30 June 2016

31 December 2016 28 February 2017

*Data  based on tra i l ing 12 months  earnings , book va lue   and 

dividend per share

31 December 2016

‐Yr 2009 Establ i shed P.T.Sappe  Indones ia  and Sappe  Europe  s .r.o

66 2 319 4949

66 2 319 7337

www.sappe.com

Frui t Juice/ Juice  Drink

72%

Functional 

Powder

14%

Functional 

Beverage

12%

Others2%

Thailand

37%

Indonesia 

and 

Phi l lipines28%

Others

35%

  

Page | 5 | PHILLIP SECURITIES (THAILAND)  

Sappe 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 | 6 | PHILLIP SECURITIES (THAILAND)  

Sappe 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) | 7 | P a g e   

Sappe 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) | 8 | P a g e   

Sappe 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.

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