See important disclosures at the end of this report Powered by Enhanced Datasystems’ EFATM Platform

17-May-2013

Morning Matters

WHAT’S INSIDE

On The Platter

Rojana Ind Park (ROJNA TB; FV THB15.30 – Buy) Results Review: Returning To Normal In 2H13 Last year ROJNA, which was hit hard by floods in end-2011, posted earnings of THB1.2bn, which mostly comprised insurance claims. As all its businesses have returned to full operations, its performance is likely to normalize in 2H13. Apart from a turnaround in its core businesses, we can expect more gains arising from insurance claims, as well as a substantial compensation from the Thai Government.

Thoresen Thai Agencies (TTA TB; FV THB23.00 – Buy) R esults Review: Awaiting a Brighter 2H

Thoresen Thai Agencies (TTA)’s 1HFY13 results came in weak, as we had expected. Its shipping business continued to struggle and its energy group had a seasonally weak quarter while the performance in its infrastructure group was mixed. Nonetheless, we expect improvements in 2HFY13. Hence, we keep our forecasts unchanged. Maintain BUY, with THB23.00 FV. MEDIA HIGHLIGHTS

♦ Mono to bid on 3 digital TV channels ♦ Tata Steel backs dumping safeguards ♦ BAY opens Laos venture ♦ Minor upbeat about China ♦ Ratch targeting Australian plants ♦ High competition for variety, kids channels, says NBTC official

ECONOMIC HIGHLIGHTS

♦ Thailand: Thirachai hails BoT plan, slams rate-cut advocates ♦ Vietnam: To force banks to sell bad debt to state asset company ♦ China: Cuts investment red tape ♦ EU: Bank stress tests delayed to 2014 on asset-quality review ♦ EU: Euro-area exports increase for third month on Germany ♦ US: Jobless claims jump in sign of growth slowdown ♦ US: Housing starts in fell in April to five-month low ♦ US: Consumer prices dropped more than forecast in April

SET Intra -Day Graph

Source: Bloomberg

Key Market Indices (16 May 2013)

Value Chg % Chg % YTD SET 1617.89 -12.20 -0.7% 16.2%

SET50 1072.89 -8.24 -0.8% 13.5%

SET100 2394.79 -18.94 -0.8% 15.2%

Dow Jones 15233.22 -42.47 -0.3% 16.2%

S&P500 1650.47 -8.31 -0.5% 15.7%

Nasdaq 3465.24 -6.37 -0.2% 14.8%

FTSE 6687.80 -5.75 -0.1% 13.4%

FSSTI 3452.28 10.75 0.3% 9.0%

Hang Seng 23082.68 38.44 0.2% 1.9%

Nikkei 14937.08 -158.95 -1.1% 43.7%

KLCI 1766.72 -16.31 -0.9% 4.6%

SHANGHAI SE 2251.81 27.01 1.2% -0.8%

JCI 5078.68 -11.20 -0.2% 17.7%

SET 5-yr avg 2012 2013F

PE (x) 14.5 18.3 14.9

P/BV(x) 1.9 2.6 2.5

Yield(%) 4.0 2.7 3.1

Key Statistics

SET Value by investor Type: Daily Buy (THBm) Sell (THBm) Net (THBm) Institution 3,633.48 4,066.02 -432.54 Proprietary 5,838.54 6,943.64 -1,105.10 Foreign 12,867.52 12,499.74 367.77 Retail 34,423.20 33,253.33 1,169.86 SET Value by investor Type MTD (THBm) YTD (THBm) Institution 120.71 38,369.56 Proprietary 1,895.61 421.68 Foreign 7,724.42 -8,220.48 Retail -9,740.74 -30,570.75 SET50 Index Future Long Short Net MTD YTD Institution 5,977 5,529 448 -3,234 2,906 Foreign 1,706 2,366 -660 -1 -7,157

Local 9,605 9,393 212 3,235 4,251

See import ant disclosures at the end of this report 2

Media Highlights

Mono to bid on 3 digital TV channels Mono Technology Plc, the mobile content and internet company, plans to bid for three digital TV channels as it believes this will drive its revenue growth above 30% the next few years. The company set a budget of THB500-700m to bid for three digital TV channels, comprising the news, children's content and standard-definition variety genres. Content is the key strength for Mono as the company has provided various content on many platforms for years including to the three major mobile operators. Moreover, it is engaged in publishing, movies, music and internet businesses. It operates the country's No.2 web portal, Mthai.com, which also runs two TV channels : Zaa and A'Lure. (Bangkok Post)

Tata Steel backs dumping safegu ards Tata Steel (Thailand) Plc (TSTH), Thailand's largest maker of long steel, is upbeat about bouncing back to profitability in its fiscal 2014 started April 1. This confidence stems largely from government pledges to enforce anti-dumping duties on cheap imports as well as higher domestic consumption. Peeyush Gupta, the president and chief executive, said through fiscal 2013 ended March 31, Tata was singularly focused on turning itself around, and its fiscal fourth quarter showed its first profit before taxes in eight quarters. For fiscal 2013's fourth quarter, profit before taxes was THB62m, reflecting signalling a successful turnaround despite growing pressure from imports and volatile prices, said Mr Gupta. (Bangkok Post)

BAY opens Laos venture Krungsri Consumer, an unsecured-loan lender under Bank of Ayudhya (BAY), plans to commence its auto and personal loan joint venture in Laos in July. BAY's two financial arms _ Krungsri Consumer and Ayudhya Capital Auto Lease (Krungsri Auto) ; each own 35% of Krungsri Financial Service (Laos), with the balance held by a Laotian auto lender. The joint-venture agreement is scheduled to be signed today and business operation will kick off from July 1, said Thakorn Piyapan, Krungsri Consumer's managing director. The bank earlier studied business expansion into three neighbouring countries _ Laos, Cambodia and Myanmar. It chose Laos due to clearer regulations as well as closer relations with Thailand and a similar culture. (Bangkok Post)

Minor upbeat about China Minor International Plc (MINT) expects to see its first profit in eight years from its restaurant operation in China. Chaiyapat Paitoon, the vice-president for strategic planning, said Sizzler and the Riverside & Courtyard have performed well. Since acquiring 49% of Riverside at the end of last year, Minor's restaurant business in China has turned around, with a net loss of only 21 million yuan (102 million baht) in 2012. Mr Chaiyapat said the company sees good growth potential in China thanks to its huge population and growing economy. The popularity of Riverside and Sizzler will pave the way for the company to promote other brands including The Pizza Company, The Coffee Club and Thai Express in China. Minor expects its international revenue will amount to 35% of its restaurant revenue over the next five years, up from 23% last year. It posted a first-quarter net profit of THB1.4bn, up by 10% from THB1.24bn in the same period last year. Revenue also increased by 10% to 9.63 billion baht from THB8.76bn. (Bangkok Post)

Ratch targeting Australian plants Ratchaburi Electricity Generating Holding Plc (RATCH), Thailand's largest private power producer, will bid to acquire two state coal-fired power plants in Australia as part of the local government's privatisation programme. Kriengrit Jiajanpong, a senior executive vice-president, said the plants in New South Wales state have a combined capacity of 4,000 megawatts. Through its 80%-owned subsidiary Ratch-Australia Corporation (RAC), the SET-listed company has been searching for strategic partners for the deal. Bidding results are expected in the second half of this year. RAC owns four gas-powered plants and three wind farms with a combined capacity of 815 MW. (Bangkok Post)

High competition for variety, kids channels, says N BTC official Variety standard definition and children's channels face high competition among the bidders for 24 commercial digital terrestrial TV channels, Thawatchai Jittrapanun, an official of the National Broadcasting and Telecommunications Commission, said yesterday. The NBTC had earlier announced that of the 24 channels up for bidding, seven would be HD channels, seven SD variety channels, seven news channels and three children's channels. Bidding starts at Bt1.51 billion for each of the seven HD variety channels, Bt380 million for each of the seven SD variety channels, Bt220 million for each of seven SD news channels and Bt140 million for each children's channel. (The Nation)

See import ant disclosures at the end of this report 3

Economic Highlights

Thailand: Thirachai hails BoT plan, slams rate-cut advocates Former finance minister Thirachai Phuvanatnaranubala has warned that a policy rate cut cannot tame the influx of capital inflows but would instead create a bubble in the economy. Mr Thirachai, himself a former deputy governor of the central bank, yesterday threw his support behind the Bank of Thailand's potential measures of levying fees on capital inflow profits in the bond market and imposing compulsory hedging to limit foreign investor gains from exchange rate movements. The two measures could be efficient instruments to slow inflows and the baht's appreciation but should be adopted in phases, he said. (Bangkok Post)

Vietnam: To force banks to sell bad debt to state as set company Vietnam will force banks to sell bad debt to a soon-to-be established asset management company, according to State Bank of Vietnam Chief Inspector Nguyen Huu Nghia, as the government steps up efforts to revive the economy. Lenders assessed by the central bank to have bad-debt ratios of 3% and above will be required to comply, Nghia said yesterday, citing a final proposal that is awaiting the prime minister’s review and approval. The government plans to set up the company this month, according to Cao Sy Kiem, member of the National Financial and Monetary Policy Advisory Council. (Bloomberg) China: Cuts investment red tape Some Chinese investment projects, including for airports, paper pulp and gas fields, will no longer need pre-approval from the nation's economic planning agency, the government said. In all, 117 “approval items” can go ahead without authorization or be approved by local governments, according to a list published by the State Council on 15 May. The red-tape reduction is part of Premier Li Keqiang’s efforts to pare the government’s role in the world’s second-biggest economy after a new Communist Party leadership took over in March. (Bloomberg)

EU: Bank stress tests delayed to 2014 on asset-quali ty review The European Union’s top banking regulator delayed stress tests until 2014, allowing time for a European Central Bank-led probe into the quality of assets held by some lenders in the debt-laden bloc. The European Banking Authority said the ECB asset check will “help dispel concerns over the deterioration of asset quality due to macroeconomic conditions in Europe,” the London- based agency said yesterday. The EBA, set up in 2011 to harmonize rules across EU, will still publish details of bank holdings in the 2H13. (Bloomberg)

EU: Euro-area exports increase for third month on Ger many

Euro-area exports increased for a third month in March as the currency bloc’s four largest economies all shipped more goods, adding to signs the region is beginning to emerge from a record-long recession. Exports rose a seasonally adjusted 2.8% from February, when they increased 0.2%, the European Union’s statistics office said. Imports decreased 1% after a 2.2% drop a month earlier. The trade surplus widened to EUR18.7bn from EUR12.7bn. The ECB forecasts the euro economy will shrink 0.5% this year, while the European Commission sees a 0.4% contraction. (Bloomberg) US: Jobless claims jump in sign of growth slowdown

More Americans than projected filed claims for jobless benefits last week and manufacturing in the Philadelphia region unexpectedly shrank in May, signs the slowdown in growth is rippling through the U.S. economy. The number of applications for unemployment insurance payments jumped by 32,000 to 360,000 in the week ended May 11, the most since the end of March, Labor Department figures showed yesterday. Concern the automatic federal budget cuts that took effect in March will hurt sales may be prompting employers to trim staff and factories to pull back. (Bloomberg) US: Housing starts in fell in April to five-month lo w Starts of new US homes fell more than forecast in April to a five-month low, indicating a pause in the industry’s progress as builders slowed work on apartments. Building permits surged to an almost five-year high. Housing starts slumped 16.5%, the most since February 2011, to an 853,000 annualized rate after a revised 1.02 million pace in March, the Commerce Department reported yesterday. Building applications that are higher than the level of starts signal residential construction will rebound as near record-low mortgage rates and improving job opportunities draw buyers. (Bloomberg) US: Consumer prices dropped more than forecast in Ap ril The cost of living in the US fell in April for a second month, the first back-to-back declines in inflation since late 2008, as fuel prices retreated. The consumer-price index decreased 0.4%, the biggest decrease since December 2008, after falling 0.2% in March, according to Labor Department figures released yesterday. The so-called core price measure, which excludes more volatile food and energy costs, increased 0.1%, less than projected. Cheaper fuel costs are helping consumers overcome the burden of higher taxes and anemic wage gains by freeing up extra cash to spend elsewhere. (Bloomberg)

See import ant disclosures at the end of this report 4

Outperform

Current Target Upside/

Recc. Price Price Downside PE (x) Yield (%) Remarks

(Bt) (Bt) (%) 2013f 2013f

THAI Buy 32.00 42.60 33.1 15.1 2.4

Underperform

Current Target Upside/

Recc. Price Price Downside PE (x) Yield (%) Remarks

(Bt) (Bt) (%) 2013f 2013f

PTTGC Sell 74.50 60.19 -19.2 10.0 3.5

TOP Sell 64.50 55.31 -14.2 10.5 3.8

SPALI Sell 21.60 15.50 -28.2 11.4 3.5

See import ant disclosures at the end of this report 5

Diary of Events 7-May 8-May 9-May 10-May 11-May

US Data Arial 7pt. MY Data MY Results Second Chance Properties SIA Engineering OSIM International

US Data MY Data MY Results

US Data MBA Mortage Applications (May 4) MY Data Automobile COE Open Bid Cat A (May 9) Automobile COE Open Bid Cat B (May 9) Automobile COE Open Bid Cat C (May 9) MY Results Singapore Airlines Ltd ASL Marine Holdings Ellipsiz Ltd Sembcorp Marine United Overseas Bank

US Data Initial Jobless Claims (May 5) Continuing Claims (Apr 28) MY Data MY Results Wilmar International City Developments Hiap Hoe Singapore Telecommunications Vicom Ltd

US Data MY Data MY Results Sembcorp Industries Mewah International

14-May 15-May 16-May 17-May 18-May US Data MY Data MY Results SATS Ltd ComfortDelgro Corp

US Data MY Data Retail Sales Ex Auto (YoY) (Mar) Retail Sales (YoY) (Mar) Retail Sales (MoM) sa (Mar) MY Results Fragrance Group Global Premium Hotels First Resources Ltd Armstrong Industrial Olam International

US Data MBA Mortage Applications (May 11) MY Data MY Results

US Data Initial Jobless Claims (May 12) Continuing Claims (May 5) MY Data MY Results

US Data MY Data MY Results Tiger Airways

21-May 22-May 23-May 24-May 25-May US Data MY Data MY Results

US Data Existing Home Sales (Apr) Existing Home Sales MoM (Apr) MY Data MY Results Avago Technologies Ltd

US Data MBA Mortage Applications (May 18) New Home Sales (Apr) New Home Sales MoM (Apr) MY Data Automobile COR Open Bid Cat A (May 23) Automobile COR Open Bid Cat B (May 23) Automobile COR Open Bid Cat C (May 23) MY Results

US Data Initial Jobless Claims (May 12) Continuing Claims (May 5) MY Data Initial Jobless Claims (May 19) Continuing Claims (May12) MY Results Global Logistics Properties Ltd

US Data MY Data MY Results

16 15 14 13 10 16 15 14 13 10

1 INTUCH 1,647.6 574.9 855.2 617.3 829.3 TRUE -186.8 13.4 -187.1 -68.5 -56.3 INTUCH 4,766.1 CK -654.9 INTUCH 30,023.8 SCC -5,837.3

2 ADVANC 255.6 -43.7 -741.2 66.3 14.4 SCC -174.4 -13.1 -3.1 37.2 -84.4 KBANK 1,972.7 TRUE -650.9 DTAC 9,936.6 LH -2,862.2

3 PTT 222.6 194.5 271.0 57.4 179.4 CPALL -121.0 56.8 101.2 -10.8 128.3 PTT 1,900.4 HMPRO -195.5 ADVANC 8,882.6 BANPU -2,813.5

4 BAY 191.7 390.5 266.8 265.3 208.8 CPN -90.7 1,989.1 20.5 -74.9 44.4 CPN 1,897.5 SCC -154.7 PTTEP 8,224.1 SIRI -1,611.8

5 PTTGC 173.6 128.8 245.9 313.8 109.2 BBL -89.6 -166.9 -37.6 35.1 190.0 PTTEP 1,838.0 ADVANC -111.0 PTTGC 7,330.5 TRUE -872.1

6 KBANK 91.2 133.3 289.0 -325.4 549.8 AMATA -54.9 -46.0 -47.7 -1.8 10.3 PTTGC 1,451.9 CFRESH -108.0 BAY 7,314.1 DEMCO -821.5

7 SCB 88.7 296.4 40.5 22.9 149.5 BANPU -52.4 121.3 6.8 -1.7 17.2 BAY 1,337.9 SIRI -83.7 PTT 7,233.1 CK -790.3

8 BIGC 80.3 32.3 20.9 80.2 -180.6 KK -50.1 -52.2 9.9 14.8 29.5 CPALL 1,101.7 UV -80.0 KBANK 5,911.4 UV -503.1

9 MINT 80.2 46.1 256.1 9.2 32.9 BJC -34.5 31.3 -5.7 -1.9 14.3 MAKRO 877.0 BECL -74.4 BBL 4,160.4 HMPRO -490.0

10 LPN 80.1 52.4 27.5 16.4 10.3 CFRESH -27.8 -43.8 -16.9 -3.9 0.0 SCB 791.7 SVI -73.5 TMB 3,983.8 ASP -350.5

11 THCOM 76.3 75.2 297.3 90.1 98.6 BGH -23.9 12.2 43.3 26.5 26.2 THCOM 681.1 ROBINS -71.3 TCAP 3,496.4 RML -325.7

12 SCP 56.6 0.0 -0.1 -0.3 -0.2 NOBLE -23.2 -13.9 -0.0 -0.3 -1.8 TMB 678.5 CENTEL -65.7 TOP 3,049.2 AAV -282.9

13 TMB 49.1 131.7 24.4 38.1 100.1 CK -22.3 25.5 -17.1 -2.1 8.2 MINT 638.4 MCOT -64.1 BIGC 2,796.0 STPI -268.8

14 TISCO 47.2 93.0 35.9 1.4 3.1 TOP -20.1 -0.2 3.9 -7.3 1.1 TCAP 526.2 HFT -40.6 CPF 2,769.5 MINT-W4 -238.0

15 JAS 42.5 27.6 -79.1 -100.8 -112.4 SCCC -16.7 9.3 16.9 5.2 6.0 AOT 511.7 IFEC -38.8 CPALL 2,758.6 TRC -196.7

16 TASCO 39.7 39.0 22.1 -0.8 -0.2 ZMICO -16.4 0.9 -0.3 4.1 1.9 THAI 476.7 MBKET -37.5 MAKRO 2,606.4 LRH -181.5

17 AOT 39.0 17.9 35.2 -1.4 77.1 CPF -12.2 -10.5 17.1 30.4 0.7 BEC 399.6 TRC -36.7 SCB 2,427.8 GUNKUL -172.7

18 BTS 33.6 13.9 6.8 47.3 23.2 WORK -11.9 0.0 0.0 0.7 0.9 BBL 333.7 NOBLE -35.8 SPALI 1,968.4 IRPC -154.8

19 HEMRAJ 22.8 -5.2 -18.9 -32.6 12.8 MCOT -9.5 -7.0 -13.8 -9.4 4.7 BGH 306.5 RML -34.8 CPN 1,882.9 CNT -140.2

20 TTW 22.6 19.2 -4.8 0.5 -6.4 KGI -9.4 4.1 6.4 1.1 0.6 TUF 283.4 UMI -34.1 TUF 1,868.7 WHA -117.0

% % of % of

Turn. paidup paidup

1 IEC 2.16 1 TISCO-P 66.16 65.86

2 TMB 28.93 2 BBL 31.20 29.99

3 TRUE 6.34 3 KBANK 29.32 28.50

4 BLAND 3.37 4 SPALI 21.98 17.94

5 N-PARK 1.08 5 GOLD-W1 21.50 14.87

6 INTUCH 22.97 6 LPN 21.01 21.73

7 MINT 20.70 7 TWFP 19.62 24.77

8 JAS 6.32 8 E-W1 19.55 22.27

9 ZMICO 40.94 9 THRE 18.01 15.50

10 BMCL 1.55 10 LH 17.91 21.18

11 HMPRO 7.13 11 SPCG-W1 16.54 13.31

12 CGS 3.50 12 TCAP 16.29 12.60

13 ERW 25.28 13 INTUCH 16.11 5.41

14 TGPRO 4.08 14 DTAC 15.75 13.33

15 KGI 15.43 15 BAY 15.50 13.89

16 BTS 7.16 16 CITY 15.07 9.51

17 BAY 24.46 17 AP 15.07 12.92

18 SIRI 3.48 18 THIP 14.64 12.64

19 CPALL 6.84 19 TISCO 14.16 13.69

20 CHG 1.72 20 LALIN 14.00 13.53

Source : SET.OR.TH

-3,758,700

-1,533,100

5,801,204

2,488,100

1,884,800 7,686,004

-7,721,800

8,794,7002,518,000

6,271,000 893,500

8,418,200

5,098,100

348,200 8,070,000

7,708,1005,220,000

3,565,000 8,663,100

7,918,400 4,211,100 12,129,500 3,707,300

5,034,934 4,994,796 10,029,730

6,074,143,747 -2,731,900

40,138

6,276,700

516,493,703 173,363,101 3,206,420,305

2,367,811,000 372,831,464 315,525,949

5,016,600

367,964,647

941,241,691 843,803,210

45,224,500 3,916,404

111,592,900 825,000,000

7,164,500 5,377,500

1,171,300 1,011,300

103,102,097

115,531,300 6,005,600

-2,830,1004,509,400 6,188,700

6,113,600

6,039,000 1,022,400

6,059,600 54,000

1,679,300

7,061,400

727,878,228

8,000,000

300,000,000

430,861,179

99,645,251

28,526,200

2,859,920,138

37,278,800 279,999,581 46,320,400

208,190,682 161,065,653 1,277,816,397

3,512,494,860

10,025,921,523

632,583,436 544,461,149

1,796,045,731 2,123,251,472

9,506,055

347,000,000

1,865,216 2,354,634

67,830,642 77,281,246

310,089,240 320,609,239

11,273,300

9,729,100 5,083,300

20,148,700 1,859,200

24,302,600 24,219,600

14,812,400 4,645,800

22,007,900 18,289,500 1,475,698,768

24,261,100 41,500

13,959,800 -8,586,800

9,228,200 6,190,900 15,419,100 3,037,300

2,686,500

1,716,553,249

-19,471,100

418,421,323

2,393,260,193

377,374,032

74,970,598 89,947,903

-1,854,500 307,949,569 19,782,900 21,637,400 41,420,300

572,486,791 18,066,300

701,713,896 682,155,834

595,492,810 56,593,700 131,253,700

13,460,100 32,931,200 46,391,300

NetBuy Sell Total

1,908,842,894

72,345,300 64,642,200 22,400 22,300 136,987,500 7,703,100

74,660,000

33,858

2-Jan-13

Net Buy Net Sell Net Buy Net Sell

2 Jan- 16 May 131-16May 13

17 May 2013

May 13 May 13

Total Volume Shares

(Last)

NVDR Shrs. Paid up CapitalNVDR Shrs.

16-May-13

Most Active Volume (shares) NVDR Shares to Total Paid-up Shares(%)

NET BUY NET SELL Month to Date Year to Date

Most Active Values (Btmn)

THAI NVDR : Top Ranking

See important disclosures at the end of this report Powered by Enhanced Datasystems’ EFATM

Platform

Results Review, 16 May 2013

Rojana Ind Park (ROJNA TB) Buy Property - Real Estate Target Price: THB15.3

Market Cap: USD593m Price: THB12.4

Returning To Normal In 2H13

Macro

3.00

Risks

3.00

Growth

2.00

Value

2.00

Last year ROJNA, which was hit hard by floods in end-2011, posted earnings of THB1.2bn, which mostly comprised insurance claims. As all its businesses have returned to full operations, its performance is likely to normalize in 2H13. Apart from a turnaround in its core businesses, we can expect more gains arising from insurance claims, as well as a substantial compensation from the Thai Government.

Property, services and water businesses profitable. Rojana Ind Park (ROJNA TB)’s combined revenue from these three business units surged to THB880m (+52% y-o-y), with most of this increase coming from realized condo sales. However, the company’s operating profit shrank 32% to THB144m as gross margins from its condos plunged to 7% from the historical 30%-40% levels.

Power business still making losses. After shutting down for a year due to disruptions owing to the late 2011 floods, its subsidiary Rojana Power resumed operation early this year. The unit incurred a THB35m loss in 1Q13 but this was better than the THB176m loss posted in 1Q12. This subsidiary is likely to return to the black in the second half of this year.

Bottomline boosted by extra gains. Despite a THB147m loss at the EBIT level, ROJNA managed to post earnings of THB350m due to: i) a THB140m gain from the sale of its hotel in China, and ii) THB941m in gross insurance claims. The proceeds from both items helped to lower its net D/E from 2.8x at end-2012 to 2.4x at end-March. We are looking to adjust our earnings forecasts to factor in these gains.

Poised to turn around in 2H13. While its core businesses are likely to remain weak in 1H13, we expect things to normalize in 2H13 with the first booking of land sales at its new estate in Prachinburi (40%-50% of its 6000 rai of landbank are already sold), higher utilization of the company’s power plant and better earnings contribution from 22%-owned TICON when THB6bn of the latter’s assets are monetized into REITs.

More gains seen. After the 2011 floods destroyed its Ayuthaya industrial estate, the Government agreed to pay ROJNA THB1bn in compensation. ROJNA is now discussing whether to realise those gains in its profit/loss statement, or simply book them as balance sheet items.

Source: Bloomberg

Avg Turnover (THB/USD) 62.4m/2.12m

Cons. Upside (%) 4.0

Upside (%) 23.4

52-wk Price low/high (THB) 8.00 - 14.2

Free float (%) 31

Shareholders (%)

Sumikin Bussan Corporation 21.0

Vinichbutr Family 30.7

Shariah compliant

Wanida Geisler 66 2862 9748

wanida.ge@th.oskgroup.com

Source: Company data, RHB Estimates

95

103

110

118

125

133

140

148

155

7

8

9

10

11

12

13

14

15

Rojana Ind Park (ROJNA TB)

Price Close Relative to Stock Exchange of Thailand Index (RHS)

5101520253035404550

Ma

y-1

2

Ju

l-1

2

Se

p-1

2

No

v-1

2

Jan-1

3

Ma

r-1

3

Vol m

Forecasts and Valuations Dec-10 Dec-11 Dec-12 Dec-13F Dec-14F

Total turnover (THBm) 8,180 6,327 6,171 12,196 14,735

Recurring net profit (THBm) 647 681 7 1,361 1,485

Net profit growth (%) (12.0) (183.2) na 14.0 9.1

Consensus EPS (THB) 0.99 0.97

EPS (THB) 0.71 (0.52) 0.94 0.96 0.98

DPS (THB) 0.50 0.20 0.30 0.51 0.52

Dividend Yield (%) 4.0 1.6 2.4 4.1 4.2

Return on average assets (%) 3.0 (2.3) 4.0 4.3 5.0

Return on average equity (%) 12.8 (11.6) 21.3 19.1 18.2

P/E (x) 17.4 na 13.1 12.9 12.7

P/B (x) 2.40 3.16 2.56 2.39 2.23

Net debt to equity (%) 147.8 150.8 195.5 102.5 76.0

Rojana Ind Park (ROJNA TB) 16 May 2013

See important disclosures at the end of this report 2

Figure 1: 1QFY13 results review

Year to 31 Dec 1QFY13 y-o-y q-o-q

(THBm) % % Remarks

Land sales 184 (25.8) 170.6 Booked land sales in Ayuthaya

Utilities income 819 576.9 76.9 IE just resumed operating and is still making losses

Residential income 595 206.7 (29.4)

Realized sales from its condo project in China

Service income 101 94.2 3.1

Total revenue 1,726 143.1 6.9

Gross margin 124 188.4 (5.3)

EBIT (147) (0.7) (16.5)

Net profit 350 548.1 243.1

Includes THB941m in insurance claims from its subsidiary, Rojana Power, and a THB140m gain from the sale of its hotel in China

Gross margin%

-Land 63.6 Still well-maintained at above 60%

-Utilities (4.4)

-Condominium 6.6 Declined sharply from the 30%-40% level

-Service 13.9 Overall gross margin% 7.2

SG&A/sales % 17.1

Net margin% 20.3

Source: Company Data, RHB Estimates

Rojana Ind Park (ROJNA TB) 16 May 2013

See important disclosures at the end of this report 3

Financial Exhibits

Source: Company data, RHB Estimates

Source: Company data, RHB Estimates

Profit & Loss (THBm) Dec-10 Dec-11 Dec-12 Dec-13F Dec-14F

Total turnover 8,180 6,327 6,171 12,196 14,735

Cost of sales (6,337) (4,909) (4,727) (8,608) (10,865)

Gross profit 1,843 1,418 1,444 3,588 3,870

Other operating costs (680) (887) (1,045) (1,342) (1,473)

Operating profit 1,163 531 399 2,246 2,397

Operating EBITDA 1,721 1,146 987 2,830 3,104

Depreciation of fixed assets (558) (615) (588) (584) (708)

Operating EBIT 1,163 531 399 2,246 2,397

Net income from investments 191 120 271 241 241

Other recurring income 24 13 84 50 70

Interest expense (420) (524) (625) (603) (531)

Exceptional income - net 21 (1,235) 1,214 - -

Pre-tax profit 979 (1,095) 1,343 1,934 2,176

Taxation (102) - (30) (130) (99)

Minority interests (211) 541 (119) (444) (593)

Profit after tax & minorities 666 (554) 1,194 1,361 1,485

Reported net profit 666 (554) 1,194 1,361 1,485

Recurring net profit 647 681 7 1,361 1,485

Cash flow (THBm) Dec-10 Dec-11 Dec-12 Dec-13F Dec-14F

Operating profit 1,163 531 399 2,246 2,397

Depreciation & amortisation 558 615 588 584 708

Change in working capital 468 3,439 (4,611) 2,652 (150)

Other operating cash flow (991) (468) (918) 50 70

Operating cash flow 1,198 4,117 (4,542) 5,532 3,024

Interest paid (420) (524) (625) (603) (531)

Tax paid (102) - (30) (130) (99)

Cash flow from operations 676 3,593 (5,197) 4,800 2,394

Capex (1,717) (2,249) (6,412) 2,493 (584)

Other new investments 119 13 (178) 96 96

Other investing cash flow 51 274 274 68 24

Cash flow from investing activities (1,547) (1,962) (6,316) 2,658 (463)

Dividends paid (570) (687) - (780) (782)

Proceeds from issue of shares 278 764 836 400 400

Increase in debt 569 (516) 9,546 (7,221) (1,500)

Cash flow from financing activities 277 (439) 10,382 (7,601) (1,882)

Cash at beginning of period 1,120 526 1,718 587 443

Total cash generated (594) 1,192 (1,131) (144) 48

Implied cash at end of period 526 1,718 587 443 492

Rojana Ind Park (ROJNA TB) 16 May 2013

See important disclosures at the end of this report 4

Financial Exhibits

Source: Company data, RHB Estimates

Source: Company data, RHB Estimates

Balance Sheet (THBm) Dec-10 Dec-11 Dec-12 Dec-13F Dec-14F

Total cash and equivalents 526 1,718 587 443 492

Inventories 5,927 5,888 6,919 6,619 6,819

Accounts receivable 650 176 337 337 337

Other current assets 1,298 1,690 3,019 2,000 2,000

Total current assets 8,401 9,472 10,862 9,399 9,648

Total investments 1,796 1,903 2,352 2,496 2,641

Tangible fixed assets 10,257 12,089 17,908 14,831 14,708

Total other assets 2,728 2,488 2,691 2,705 2,720

Total non-current assets 14,781 16,480 22,951 20,033 20,068

Total assets 23,182 25,952 33,813 29,432 29,716

Short-term debt 4,237 3,512 5,786 3,500 3,000

Accounts payable 479 777 522 850 900

Other current liabilities 3,810 6,830 4,995 6,000 6,000

Total current liabilities 8,526 11,119 11,303 10,350 9,900

Total long-term debt 7,159 8,153 12,935 8,000 7,000

Other liabilities 142 82 298 298 298

Total non-current liabilities 7,301 8,235 13,233 8,298 7,298

Total liabilities 15,827 19,354 24,536 18,648 17,198

Share capital 969 1,160 1,370 1,470 1,570

Retained earnings reserve 2,617 1,405 2,657 3,238 3,940

Other reserves 1,419 1,992 2,618 2,918 3,218

Shareholders' equity 5,005 4,557 6,645 7,626 8,728

Minority interests 2,350 2,041 2,632 3,158 3,790

Total equity 7,355 6,598 9,277 10,784 12,518

Total liabilities & equity 23,182 25,952 33,813 29,432 29,716

Key Ratios (THB) Dec-10 Dec-11 Dec-12 Dec-13F Dec-14F

Revenue growth (%) 18.9 (22.7) (2.5) 97.6 20.8

Operating profit growth (%) (8.9) (54.3) (24.9) 462.9 6.7

Net profit growth (%) (12.0) (183.2) 0.0 14.0 9.1

EPS growth (%) (18.4) (173.0) 0.0 1.5 1.9

Bv per share growth (%) (14.4) (23.9) 23.5 7.0 7.2

Operating margin (%) 14.2 8.4 6.5 18.4 16.3

Net profit margin (%) 8.1 (8.8) 19.3 11.2 10.1

Return on average assets (%) 3.0 (2.3) 4.0 4.3 5.0

Return on average equity (%) 12.8 (11.6) 21.3 19.1 18.2

Net debt to equity (%) 147.8 150.8 195.5 102.5 76.0

DPS 0.50 0.20 0.30 0.51 0.52

Recurrent cash flow per share 0.72 3.38 (4.11) 3.38 1.58

Rojana Ind Park (ROJNA TB) 16 May 2013

See important disclosures at the end of this report 5

SWOT Analysis

Thailand’s third-largest industrial estate operator by sales

Well-diversified businesses in IE, utilities and property development

Owns 22% of TICON, Thailand’s largest developer of ready-built factories and warehouses.

Post-2011 floods, its IE in Ayuthaya will take time to regain investor confidence.

Sensitive to external and internal risks.

Healthy FDI in Thailand.

The bulk of earnings comprises recurring income, which provide a buffer against any downturn.

New estate in Prachinburi needs time to develop

Sales are slow in Ayuthaya’s flood zone

High gearing

Source: Company data, RHB Estimates Source: Company data, RHB Estimates

Company Profile ROJNA’s main businesses are in industrial estates, utilities and property development. Its industrial estates business commands the highest margins and contributes the most to its gross profit, followed by utilities. ROJNA now has four industrial estates - one in Ayuthaya, two in Rayong and one in Prachinburi - with a total landbank of 8,500 rai. Its power plant, located in Ayuthaya’s Rojana Industrial Park, currently has a capacity of 265MW, which will increase to 430MW in 2H13. The group also has THB3.6bn worth of condo projects in Changzhou, China.

-400%

-200%

0%

200%

400%

600%

800%

1,000%

1,200%

0

20

40

60

80

100

120

140

160

Jan

-10

Jan

-11

Jan

-12

Jan

-13

Jan

-14

P/E (x) vs EPS growth

P/E (x) (lhs) EPS growth (rhs)

-15%

-9%

-4%

2%

8%

14%

19%

25%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Jan

-10

Jan

-11

Jan

-12

Jan

-13

Jan

-14

P/BV (x) vs ROAE

P/B (x) (lhs) Return on average equity (rhs)

Rojana Ind Park (ROJNA TB) 16 May 2013

See important disclosures at the end of this report 6

Recommendation Chart

Source: RHB Estimates, Bloomberg

2

4

6

8

10

12

14

16

18

May-08 Aug-09 Nov-10 Mar-12

Price Close

NR

15.3

Recommendations & Target Price

Buy Neutral Sell Trading Buy Take Profit Not Rated

Source : RHB Estimates, Bloomberg

Date Recommendation Target Price Price

2013-04-23 Buy 15.3 12.3

See important disclosures at the end of this report Powered by Enhanced Datasystems’ EFATM Platform

Results Review, 17 May 2013

Thoresen Thai Agencies (TTA TB) Buy Industrial - Transportation Target Price: THB23.0 Market Cap: USD592m Price: THB17.8

Awaiting a Brighter 2H

Macro Risks Growth Value

Thoresen Thai Agencies (TTA)’s 1HFY13 results came in weak, as we had expected. Its shipping business continued to struggle and its energy group had a seasonally weak quarter while the performance in its infrastructure group was mixed. Nonetheless, we expect improvements in 2HFY13. Hence, we keep our forecasts unchanged. Maintain BUY, with THB23.00 FV.

1H performance in line. We deemed TTA’s 1HFY13 core net loss of THB456.3m (+40.5% y-o-y) as being in line with our estimates as we had earlier warned investors that the company’s 2Q numbers may come in weak. Nevertheless, we believe 2H of the year should be brighter as most of its business segments are poised for stronger growth starting from 3QFY13.

Challenges remain for transport. Thoresen Shipping and Logistics Ltd chartered loss of THB36m at the EBIT level despite its time charter equivalent (TCE) rates and owner expenses having outperformed the industry benchmark. This was mainly due to the overall weak macro factor in which we saw Baltic Dry Index (BDI) chartered a decline of 8% y-o-y in 2Q, with a daily average at only 796 points. Nevertheless, TTA was still able to report cash profit (positive EBITDA of THB106m) and the Group has taken the right strategy in cutting down operating costs and is thus well positioned to make profits when the freight rates improve.

2Q a seasonal weaker quarter for Mermaid. As expected, numbers of subsidiary Mermaid Maritime Ltd (Mermaid) reported weak 2Q numbers, charting a loss of THB234m (-322% y-o-y, -446% q-o-q) at the EBIT level, due to: i) one of its tender rig, MTR-2 was going through its special periodic survey (SPS) requirements, ii) M.V. Endeavour and Mermaid Commander were dry docked, iii) Mermaid Asiana was being refitted for a Saudi Aramco diving contract, and iv) 2Q is seasonally a weaker quarter for Mermaid due to the monsoon season in South East Asia affecting its operations.

63

69

76

82

89

95

102

108

13.0

14.0

15.0

16.0

17.0

18.0

19.0

20.0

Thoresen Thai Agencies (TTA TB)

Price Close Relative to Stock Exchange of Thailand Index (RHS)

10203040506070

May

-12

Jul-1

2

Sep

-12

Nov

-12

Jan-

13

Mar

-13

Vol m

Source: Bloomberg

Avg Turnover (THB/USD) 186m/6.33mCons. Upside (%) 21.9Upside (%) 29.252-wk Price low/high (THB) 13.7 - 19.0Free float (%) 35 Shareholders (%) Mahagitsiri Chalermchai 15.3Raffles Resources 1 Ltd 5.1 Shariah compliant

Forecasts and Valuations Sep-11 Sep-12 Sep-13F Sep-14F Sep-15FTotal turnover (THBm) 17,565 16,339 18,628 20,752 23,435Reported net profit (THBm) 173 (4,619) 168 780 1,143Recurring net profit (THBm) (403) (348) 168 780 1,143Recurring net profit growth (%) (511.1) (13.4) na 363.0 46.6Core EPS (THB) (0.57) (0.49) 0.17 0.79 1.15DPS (THB) 0.50 1.00 0.04 0.20 0.29Dividend Yield (%) 2.8 5.6 0.2 1.1 1.6Core P/E (x) na na 105 23 15Return on average equity (%) 0.7 (20.2) 0.8 3.7 5.2P/B (x) 0.49 0.62 0.85 0.83 0.79P/CF (x) 86.9 6.4 12.6 8.6 6.8EV/EBITDA (x) 9.7 11.4 11.3 7.9 6.2Net debt to equity (%) 34.3 40.7 47.9 46.7 45.3Our vs consensus EPS (%) 33.8 25.3 (45.9)

Source: Company data, RHB Estimates

ratree.luTypewritten TextThailand Research Team.+66(0) 2 862 999 Ext.2030

ratree.luTypewritten Text

ratree.luTypewritten Text

ratree.luTypewritten Text

ratree.luTypewritten Text

Thoresen Thai Agencies (TTA TB) 17 May 2013

See important disclosures at the end of this report 2

Infrastructure group mixed performance. Its coal distributing business, which is led by subsidiary Unique Mining Services (UMS), experienced another difficult quarter. As its Samut Sakorn plant was still closed in 2QFY13, the company continued to operate out of its Ayudhaya plant, incurring high operating expenses, mainly from transportation costs. In 2QFY13, UMS reported loss of THB10m (+72% y-o-y, -146% q-o-q) at the EBIT level. Meanwhile in Vietnam, wholly-owned subsidiary Baconco Ltd continued to report another good quarter in 2QFY13, recording EBIT of THB62m (+58% y-o-y, -29% q-o-q).

Brighter outlook for 2HFY13. Despite continued losses in 2QFY13 and an accumulated core loss of THB456.3m (+40.5% y-o-y) in 1HFY13, we deem the results largely in line with what we have expected. We believe that starting from 2HFY13, TTA would be able to report better performance:

(i) Shipping may still be struggling due to the weak macro outlook but the company’s strategy to manage costs and deploy approximately 50% of its vessels in high-yield Atlantic routes had proven to be a correct move as TTA’s TCE rate and owner expenses continue to beat the industry benchmark. Moving on into 3QFY13, two Supramax bulk carriers are expected to join its fleet of 16 vessels. Like other shipping company, Thoresen Shipping is still waiting for the recovery of the cycle.

(ii) We are of the view that Mermaid would be able to deliver stronger set of results starting next quarter mainly because:

a. MTR-2 has recently completed its compulsory special periodic survey (SPS) in Singapore and will commence a two-year drilling contract in Indonesia. MTR-1 will continue to operate as an accommodation barge support unit in Indonesia with its current contract expiring July 2013 and Mermaid is marketing the vessel for continued work as an accommodation barged support unit beyond this term.

b. Two jack-up rigs AOD1 and AOD2 have been delivered and schedule to commence operations in April and June 2013 respectively. AOD3 is expected to be delivered in July 2013. As such, we should expect positive contributions from AOD1 and AOD2 in 2HFY13 and full contributions from all three jack-up rigs in FY14.

c. For subsea business, Mermaid Asiana has commenced its Saudi Aramco’s diving contract and Mermaid is actively scouting for contracts in areas such as Middle East and Europe for higher vessel yields and longer contract durations.

(iii) The shutdown order on UMS’ Samut Sakorn plant was finally lifted by the authorities on 29 April 2013 and the approval of recommence operation is expected by end-May. UMS is still not allowed to operate through its own port at Samut Sakorn, and as such the savings for its transportation costs to transport coal to its Ayudhaya plant may not be too significant yet. However, the company’s performance is expected to improve starting 3QFY13 as it no longer only operates from a single facility in another province (Ayudhaya).

(iv) Baconco strives to grow its business through both product innovation and geographic expansion, introducing new formulas regularly and exploring new export markets. As for its warehousing business, following the completion of Baconco 5, the company is now operating a total warehouse space of 53,000 sq m, with capacity for almost 190,000 tonnes of cargo and an overall utilization rate was at 80%.

Thoresen Thai Agencies (TTA TB) 17 May 2013

See important disclosures at the end of this report 3

Maintain BUY, FV unchanged. Unlike other shipping companies, TTA has a diversified investment portfolio that would contribute positively to the Group while it waits for a recovery in the freight market. Its energy and infrastructure groups should be able to deliver stronger set of results moving forward. Hence, we believe TTA’s 2HFY13 results should be stronger. We decided to keep our forecasts status quo at this juncture and maintaining our BUY recommendation and FV of THB23.00, pegged to 1.06x FY14F P/BV.

Table 1 : Thoresen Shipping’s income statement* Table 2 : Mermaid’s income statement* THB million 2QFY12 1QFY13 2QFY13 y-o-y chg % q-o-q chg %Total revenues 753 1,211 1,118 49% -8%Total costs 553 1,102 947 71% -14%Gross profits 200 109 171 -14% 57%Gross margin (%) 27% 9% 15% -11% 6%SG&A 68 65 65 -4% 0%EBITDA 132 44 106 -20% 144%EBITDA margin (%) 18% 4% 9% -8% 6%EBIT (7) (94) (36) -389% 62%

THB million 2QFY12 1QFY13 2QFY13 y-o-y chg % q-o-q chg %Total revenues 996 1,618 1,394 40% -14%Total costs 716 1,186 1,235 72% 4%Gross profits 280 432 159 -43% -63%Gross margin (%) 28% 27% 11% -17% -17%SG&A 145 169 179 24% 6%EBITDA 135 264 (20) -115% -107%EBITDA margin (%) 14% 16% -1% -15% -15%EBIT (56) 68 (234) -322% -446%

Source: Company Source: Company

Table 3 : UMS’ income statement* Table 4 : Baconco’s income statement* THB million 2QFY12 1QFY13 2QFY13 y-o-y chg % q-o-q chg %Total revenues 1,044 503 409 -61% -19%Total costs 930 383 323 -65% -16%Gross profits 114 120 87 -24% -28%Gross margin (%) 11% 24% 21% 10% -3%SG&A 129 82 81 -37% -2%EBITDA (15) 38 6 141% -84%EBITDA margin (%) -1% 8% 1% 3% -6%EBIT (35) 22 (10) 72% -146%

THB million 2QFY12 1QFY13 2QFY13 y-o-y chg % q-o-q chg %Total revenues 667 770 655 -2% -15%Total costs 601 655 559 -7% -15%Gross profits 66 116 96 45% -17%Gross margin (%) 10% 15% 15% 5% 0%SG&A 23 26 31 34% 20%EBITDA 43 90 65 51% -28%EBITDA margin (%) 6% 12% 10% 3% -2%EBIT 39 87 62 58% -29%

Source: Company Source: Company

*As consolidated on TTA’s P&L

Thoresen Thai Agencies (TTA TB) 17 May 2013

See important disclosures at the end of this report 4

Results Table

FYE Sep (THBm) 2QFY13 1QFY13 Q-o-Q Chg YTD FY13 YTD FY12 Y-o-Y Chg Comments Revenue 3,656.9 4,183.3 -12.6% 7,840.1 6,922.0 13.3% Seasonally slower

quarter particularly for Shipping and Mermaid

EBITDA 163.0 422.4 -61.4% 585.5 237.7 146.3% Improved y-o-y Net interest expense

(112.7) (114.8) -1.9% (227.5) (280.9) 19.0%

EI 5.6 55.5 -90.0% 5.6 0.6 89.3% Gain on disposal of fixed assets and realised gains on cross currency and IRS agreements

Associates 8.6 26.0 -66.8% 34.6 71.4 -51.6% PBT (296.2) (64.6) -358.6% (360.7) (798.7) 54.8% Tax (16.7) (62.6) -73.3% (79.3) (50.5) 57.0% MI 55.7 (10.8) -613.8% 44.9 83.4 -46.2% Net profit (257.1) (138.0) 86.3% (395.2) (765.9) -48.4% Core net profit (262.7) (193.5) 35.8% (456.3) (766.5) -40.5% Within expectations EPS (0.3) (0.2) (0.5) (1.1) Core EPS (0.3) (0.3) (0.6) (1.1) DPS - - - - EBITDA margin 4.5% 10.1% 7.5% 3.4% NTA/share (THB) 29.7 24.4 29.7 23.5

Source: RHB estimates

Thoresen Thai Agencies (TTA TB) 17 May 2013

See important disclosures at the end of this report 5

Financial Exhibits

Profit & Loss (THBm) Sep-11 Sep-12 Sep-13F Sep-14F Sep-15FTotal turnover 17,565 16,339 18,628 20,752 23,435 Cost of sales (13,026) (12,099) (13,545) (14,157) (15,582) Gross profit 4,539 4,240 5,082 6,595 7,853 Gen & admin expenses (2,835) (2,356) (2,214) (2,329) (2,520) Selling expenses (1,845) (1,781) (2,094) (2,482) (2,743) Operating profit (140) 103 775 1,783 2,590 Operating EBITDA 2,429 2,099 2,772 3,882 4,862 Depreciation of fixed assets (2,387) (1,876) (1,877) (1,979) (2,152) Amortisation of intangible assets (182) (120) (120) (120) (120) Operating EBIT (140) 103 775 1,783 2,590 Net income from investments 110 129 120 120 120 Other recurring income 425 292 112 125 141 Interest income 144 73 73 73 73 Interest expense (670) (758) (750) (750) (750) Exceptional income - net 576 (4,270) - - - Pre-tax profit 445 (4,430) 330 1,351 2,174 Taxation (342) (167) (89) (365) (587) Minority interests 70 (22) (72) (206) (444) Profit after tax & minorities 173 (4,619) 168 780 1,143 Reported net profit 173 (4,619) 168 780 1,143 Recurring net profit (403) (348) 168 780 1,143 Source: Company data, RHB Estimates

Cash flow (THBm) Sep-11 Sep-12 Sep-13F Sep-14F Sep-15FOperating profit (140) 103 775 1,783 2,590 Depreciation & amortisation 2,569 1,996 1,997 2,099 2,272 Change in working capital (1,408) 1,003 (552) (500) (160) Other operating cash flow (621) (893) (1,413) (1,635) (2,203) Operating cash flow 400 2,210 807 1,747 2,499 Interest received - - (73) (73) (73) Interest paid 478 497 750 750 750 Tax paid (733) (733) (89) (365) (587) Cash flow from operations 145 1,974 1,395 2,059 2,589 Capex (4,122) (1,454) (3,480) (1,638) (2,000) Other new investments (2,377) (88) (120) (120) (120) Other investing cash flow 2,544 (70) - - - Cash flow from investing activities (3,955) (1,612) (3,600) (1,758) (2,120) Dividends paid (732) (357) (42) (195) (286) Proceeds from issue of shares 13 - 283 - - Increase in debt 1,028 919 1,663 1,446 119 Other financing cash flow (1,197) (1,232) (7) - - Cash flow from financing activities (888) (670) 1,897 1,251 (167) Cash at beginning of period 8,458 3,797 3,585 3,277 4,829 Total cash generated (4,699) (308) (308) 1,552 302 Forex effects 38 96 - - - Implied cash at end of period 3,797 3,585 3,277 4,829 5,130 Source: Company data, RHB Estimates

Thoresen Thai Agencies (TTA TB) 17 May 2013

See important disclosures at the end of this report 6

Financial Exhibits

Balance Sheet (THBm) Sep-11 Sep-12 Sep-13F Sep-14F Sep-15FTotal cash and equivalents 3,797 3,585 3,277 4,829 5,130 Inventories 2,271 1,602 2,091 2,082 2,078 Accounts receivable 2,719 2,663 2,547 3,144 3,525 Other current assets 2,848 2,658 2,747 2,835 2,947 Total current assets 11,636 10,508 10,662 12,889 13,681 Total investments 4,325 3,794 3,914 4,034 4,154 Tangible fixed assets 27,002 25,769 27,372 27,031 26,879 Intangible assets 4,425 1,997 1,997 1,997 1,997 Total other assets 644 493 493 493 493 Total non-current assets 36,397 32,053 33,775 33,555 33,523 Total assets 48,032 42,560 44,437 46,444 47,203 Short-term debt 3,681 4,593 4,639 4,685 4,732 Accounts payable 838 1,270 1,091 1,179 1,396 Other current liabilities 1,899 1,505 1,549 1,554 1,552 Total current liabilities 6,418 7,368 7,278 7,418 7,679 Total long-term debt 10,688 9,427 11,056 12,469 12,553 Other liabilities 110 154 154 154 154 Total non-current liabilities 10,798 9,581 11,211 12,623 12,708 Total liabilities 17,216 16,950 18,489 20,041 20,387 Share capital 708 708 991 991 991 Retained earnings reserve 21,487 16,514 16,641 17,225 18,083 Other reserves 3,268 3,074 3,074 3,151 3,151 Shareholders' equity 25,463 20,297 20,706 21,368 22,225 Minority interests 5,353 5,314 5,242 5,035 4,592 Total equity 30,816 25,611 25,948 26,403 26,816 Total liabilities & equity 48,032 42,560 44,437 46,444 47,203 Source: Company data, RHB Estimates

Key Ratios (THB) Sep-11 Sep-12 Sep-13F Sep-14F Sep-15FRevenue growth (%) (1.8) (7.0) 14.0 11.4 12.9Operating profit growth (%) (140.2) 0.0 649.7 130.1 45.2Net profit growth (%) (78.2) (2768.2) 0.0 363.0 46.6EPS growth (%) (78.2) (2768.2) 0.0 363.0 46.6Bv per share growth (%) (1.7) (20.3) (27.1) 3.2 4.0Operating margin (%) (0.8) 0.6 4.2 8.6 11.1Net profit margin (%) 1.0 (28.3) 0.9 3.8 4.9Return on average assets (%) 0.4 (10.2) 0.4 1.7 2.4Return on average equity (%) 0.7 (20.2) 0.8 3.7 5.2Net debt to equity (%) 34.3 40.7 47.9 46.7 45.3DPS 0.50 1.00 0.04 0.20 0.29Recurrent cash flow per share 0.20 2.79 1.41 2.08 2.61 Source: Company data, RHB Estimates

Thoresen Thai Agencies (TTA TB) 17 May 2013

See important disclosures at the end of this report 7

SWOT Analysis

A diversified portfolio to ensure recurring income even during the downcycle in the shipping industry

Has an experienced team to read the market and make the right investment decisions at the right time

The shipping industry may take longer than expected to recover

A drastic drop in the price of crude oil could hurt subsidiary Mermaid

The shipping industry is expected to recover and a new upcycle may emerge in the next two years

The O&G sector boom would benefit Asia Offshore Drilling, a 33.7%-owned subsidiary of Mermaid

Core business is in dry bulk shipping, which is currently in a downcycle

The coal distribution business of Unique Mining Services (UMS) still needs time to recover

-3,000%

-2,167%

-1,333%

-500%

333%

1,167%

2,000%

0

20

40

60

80

100

120

Jan-

11

Jan-

12

Jan-

13

Jan-

14

Jan-

15

P/E (x) vs EPS growth

P/E (x) (lhs) EPS growth (rhs)

-25%

-21%

-17%

-13%

-9%

-6%

-2%

2%

6%

10%

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

Jan-

11

Jan-

12

Jan-

13

Jan-

14

Jan-

15

P/BV (x) vs ROAE

P/B (x) (lhs) Return on average equity (rhs)

Source: Company data, RHB Estimates Source: Company data, RHB Estimates

Company Profile Thoresen Thai Agencies is an investment holding company with its primary business in transport, energy and infrastructure.

TTA has a widely-diversified portfolio that enables it to have earnings flowing in, even during downtimes, from its core shipping business.

Thoresen Thai Agencies (TTA TB) 17 May 2013

See important disclosures at the end of this report 8

Recommendation Chart

7

12

17

22

27

32

37

42

47

May-08 Aug-09 Dec-10 Mar-12

Price Close

NR

12.9

11.4

13.6

23.0

Recommendations & Target Price

Buy Neutral Sell Trading Buy Take Profit Not Rated

Source: RHB Estimates, Bloomberg

Date Recommendation Target Price Price

2013-04-03 Buy 23.0 18.1

2012-12-03 Sell 13.6 14.6

2012-11-30 Sell 13.6 14.6

2012-08-23 Sell 11.4 14.7

2011-12-06 Sell 12.9 17.9 Source : RHB Estimates, Bloomberg

9

RHB Guide to Investment Ratings Buy: Share price may exceed 10% over the next 12 months Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain Neutral: Share price may fall within the range of +/- 10% over the next 12 months Take Profit: Target price has been attained. Look to accumulate at lower levels Sell: Share price may fall by more than 10% over the next 12 months Not Rated: Stock is not within regular research coverage Disclosure & Disclaimer All research is based on material compiled from data considered to be reliable at the time of writing, but RHB does not make any representation or warranty, express or implied, as to its accuracy, completeness or correctness. No part of this report is to be construed as an offer or solicitation of an offer to transact any securities or financial instruments whether referred to herein or otherwise. This report is general in nature and has been prepared for information purposes only. It is intended for circulation to the clients of RHB and its related companies. Any recommendation contained in this report does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This report is for the information of addressees only and is not to be taken in substitution for the exercise of judgment by addressees, who should obtain separate legal or financial advice to independently evaluate the particular investments and strategies. RHB, its affiliates and related companies, their respective directors, associates, connected parties and/or employees may own or have positions in securities of the company(ies) covered in this research report or any securities related thereto, and may from time to time add to, or dispose off, or may be materially interested in any such securities. Further, RHB, its affiliates and related companies do and seek to do business with the company(ies) covered in this research report and may from time to time act as market maker or have assumed an underwriting commitment in securities of such company(ies), may sell them or buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory or underwriting services for or relating to such company(ies), as well as solicit such investment, advisory or other services from any entity mentioned in this research report. RHB and its employees and/or agents do not accept any liability, be it directly, indirectly or consequential losses, loss of profits or damages that may arise from any reliance based on this report or further communication given in relation to this report, including where such losses, loss of profits or damages are alleged to have arisen due to the contents of such report or communication being perceived as defamatory in nature. The term “RHB” shall denote where applicable, the relevant entity distributing the report in the particular jurisdiction mentioned specifically herein below and shall refer to RHB Research Institute Sdn Bhd, its holding company, affiliates, subsidiaries and related companies. All Rights Reserved. This report is for the use of intended recipients only and may not be reproduced, distributed or published for any purpose without prior consent of RHB and RHB accepts no liability whatsoever for the actions of third parties in this respect. Malaysia This report is published and distributed in Malaysia by RHB Research Institute Sdn Bhd (233327-M), Level 11, Tower One, RHB Centre, Jalan Tun Razak, 50400 Kuala Lumpur, a wholly-owned subsidiary of RHB Investment Bank Berhad (RHBIB), which in turn is a wholly-owned subsidiary of RHB Capital Berhad. Singapore This report is published and distributed in Singapore by DMG & Partners Research Pte Ltd (Reg. No. 200808705N), a wholly-owned subsidiary of DMG & Partners Securities Pte Ltd, a joint venture between Deutsche Asia Pacific Holdings Pte Ltd (a subsidiary of Deutsche Bank Group) and OSK Investment Bank Berhad, Malaysia which have since merged into RHB Investment Bank Berhad (the merged entity is referred to as “RHBIB”, which in turn is a wholly-owned subsidiary of RHB Capital Berhad). DMG & Partners Securities Pte Ltd is a Member of the Singapore Exchange Securities Trading Limited. DMG & Partners Securities Pte Ltd may have received compensation from the company covered in this report for its corporate finance or its dealing activities; this report is therefore classified as a non-independent report. As of 16 May 2013, DMG & Partners Securities Pte Ltd and its subsidiaries, including DMG & Partners Research Pte Ltd do not have proprietary positions in the securities covered in this report, except for: a) - As of 16 May 2013, none of the analysts who covered the securities in this report has an interest in such securities, except for: a) - Special Distribution by RHB Where the research report is produced by an RHB entity (excluding DMG & Partners Research Pte Ltd) and distributed in Singapore, it is only distributed to "Institutional Investors", "Expert Investors" or "Accredited Investors" as defined in the Securities and Futures Act, CAP. 289 of Singapore. If you are not an "Institutional Investor", "Expert Investor" or "Accredited Investor", this research report is not intended for you and you should disregard this research report in its entirety. In respect of any matters arising from, or in connection with this research report, you are to contact our Singapore Office, DMG & Partners Securities Pte Ltd. Hong Kong This report is published and distributed in Hong Kong by RHB OSK Securities Hong Kong Limited (“RHBSHK”) (formerly known as OSK Securities Hong Kong Limited), a subsidiary of OSK Investment Bank Berhad, Malaysia which have since merged into RHB Investment Bank Berhad (the merged entity is referred to as “RHBIB”), which in turn is a wholly-owned subsidiary of RHB Capital Berhad. RHBSHK, RHBIB and/or other affiliates may beneficially own a total of 1% or more of any class of common equity securities of the subject company. RHBSHK, RHBIB and/or other affiliates may, within the past 12 months, have received compensation and/or within the next 3 months seek to obtain compensation for investment banking services from the subject company.

10

Risk Disclosure Statements The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities. Past performance is not a guide to future performance. RHBSHK does not maintain a predetermined schedule for publication of research and will not necessarily update this report Indonesia This report is published and distributed in Indonesia by PT RHB OSK Securities Indonesia (formerly known as PT OSK Nusadana Securities Indonesia), a subsidiary of OSK Investment Bank Berhad, Malaysia, which have since merged into RHB Investment Bank Berhad, which in turn is a wholly-owned subsidiary of RHB Capital Berhad. Thailand This report is published and distributed in Thailand by RHB OSK Securities (Thailand) PCL (formerly known as OSK Securities (Thailand) PCL), a subsidiary of OSK Investment Bank Berhad, Malaysia, which have since merged into RHB Investment Bank Berhad, which in turn is a wholly-owned subsidiary of RHB Capital Berhad. Other Jurisdictions In any other jurisdictions, this report is intended to be distributed to qualified, accredited and professional investors, in compliance with the law and regulations of the jurisdictions.

Kuala Lumpur Hong Kong Singapore

Malaysia Research Office

RHB Research Institute Sdn Bhd Level 11, Tower One, RHB Centre

Jalan Tun Razak Kuala Lumpur

Malaysia Tel : +(60) 3 9280 2185 Fax : +(60) 3 9284 8693

RHB OSK Securities Hong Kong Ltd.

(formerly known as OSK Securities Hong Kong Ltd.) 12th Floor

World-Wide House 19 Des Voeux Road Central, Hong Kong

Tel : +(852) 2525 1118 Fax : +(852) 2810 0908

DMG & Partners

Securities Pte. Ltd. 10 Collyer Quay

#09-08 Ocean Financial Centre Singapore 049315

Tel : +(65) 6533 1818 Fax : +(65) 6532 6211

Jakarta Shanghai Phnom Penh

PT RHB OSK Securities Indonesia

(formerly known as PT OSK Nusadana Securities Indonesia)

Plaza CIMB Niaga 14th Floor

Jl. Jend. Sudirman Kav.25 Jakarta Selatan 12920, Indonesia

Tel : +(6221) 2598 6888 Fax : +(6221) 2598 6777

RHB OSK (China) Investment Advisory Co. Ltd.

(formerly known as OSK (China) Investment Advisory Co. Ltd.)

Suite 4005, CITIC Square 1168 Nanjing West Road

Shanghai 20041 China

Tel : +(8621) 6288 9611 Fax : +(8621) 6288 9633

RHB OSK Indochina Securities Limited

(formerly known as OSK Indochina Securities Limited) No. 1-3, Street 271

Sangkat Toeuk Thla, Khan Sen Sok Phnom Penh

Cambodia Tel: +(855) 23 969 161 Fax: +(855) 23 969 171

Bangkok

RHB OSK Securities (Thailand) PCL

(formerly known as OSK Securities (Thailand) PCL) 10th Floor, Sathorn Square Office Tower

98, North Sathorn Road,Silom Bangrak, Bangkok 10500

Thailand Tel: +(66) 862 9999 Fax : +(66) 108 0999

TH_Rojana_1Q13_ 20130516_e.pdfFinancial ExhibitsFinancial ExhibitsSWOT AnalysisRecommendation Chart