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Thailand Results Review

4Q15: missed target

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23 February 2016 Communications | Media

Major Cineplex Buy (Maintained)

Target Price: THB32.70

Price: THB24.30

ซปเปอรฮโรบกโลกแลว Market Cap: USD607m

Bloomberg Ticker: MAJOR TB เรายงคงแนะน า “ซอ” ทราคาเปาหมายปรบใหมเปน 32.70 บาทจากอานสงสของการ

เขาฉายของหนงท าเงนทเพมขน ธรกจทใหมารจนสงเตบโตไดด และแนวโนมมารจนฟนตวในรอบ 2 ปขางหนา สวนแผนการขยายกจการเขาสกลมประเทศ CLMV และกลยทธการเพมสดสวนรายไดทใหมารจนสงหนนการเตบโตในระยะยาว

Share Data

Avg Daily Turnover (THB/USD) 62.1m/1.73m

52-wk Price low/high (THB) 24.3 - 36.0

Free Float (%) 49

Shares outstanding (m) 893

Estimated Return 35%

Shareholders (%)

Vicha Poonwaralak 34.1

Thai NVDR 10.1

State Street Bank and Trust 6.3

Share Performance (%)

YTD 1m 3m 6m 12m

Absolute (31.1) (19.0) (22.9) (23.5) (18.3)

Relative (33.6) (23.3) (18.2) (19.2) (0.8)

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

ปจจยการเตบโต 3 อยางในปน

(i)รายไดจากการขายตวภาพยนตทดขนจากการเขาฉายของหนงซปเปอรฮโรมากมาย (Dealpool, Captain America 3, Batman VS Superman, X Men) และการเพมโรงภาพยนตรแหงใหม (ii) การเตบโตของรายไดโฆษณาและอาหารและเครองดมทใหมารจนสงแขงแกรง และ (iii) มารจนฟนตว โดยเราประเมนก าไรจากการขายหนวยลงทน PVR Cinema (PVRL IN, NR) ทเหลอออกไป 4% ทราคา 150 ลานบาทตอปในรอบป 2016-18 และประเมนก าไรสทธเตบโตราว 8% ตอไปในรอบป 2016-2017

การเปลยนไลฟสไตวเขาโรงภาพยนตรมากขนหนนการเตบโต จากการเปลยนไลฟสไตวเขาโรงภาพยนตรมากขนรวมทงสอดจตอลทเตบโตรวดเรว จะท าใหธรกจภาพยนตรยงคงแขงแกรงจากการฉายภาพยนตรใหมๆ และโรงภาพยนตรอาท 3D, 4D, Imax มากขน อกทงการเขาถงสอดจตอลในตางจงหวดทยงจ ากดจากปจจยดานความลาชาในการวางระบบ 4G และอตราการถอครองสมารทโฟนทต าท าใหผคนเขาถงสอภาพยนตรออนไลนไดนอยในระยะกลาง สวนการเตบโตระยะยาวจะมาจากการขยายกจการเขาสกลมประเทศ CLMV และการเพมสดสวนรายไดทใหมารจนสงอาท โรงภาพยนตรแบบไฮเทค (3D, 4D, Imax) และการผลตคอนเทนต

4Q15 earnings: missed target

(THBm) 4Q15 3Q15 QoQ 4Q14 YoY Comments

Revenue 1,976 2,189 -9.8% 2,124 -7.0% Below expected box office income

Gross profit 671 739 -9.2% 730 -8.1%

GPM (%) 34.0% 33.8%

34.4 %

EBITDA 476 543 -12.3% 480 -0.8%

EBITDA (%) 24.1% 24.8%

22.6%

Core earnings 138 209 -34.0% 179 -22.9% No extra gains

Source: Company data, RHB

ยงคงแนะน า “ซอ” ทราคาเปาหมายใหมเทากบ 32.70 บาท

ราคาเปาหมายค านวณจากวธ SOP ในรอบป 2016 เทากบ 32.70 บาท (เดม 38.00 บาท) สะทอน (i) ธรกจหลกจ านวน 31.00 บาทค านวณจากวธ DCF (TG 2%, WACC 9%)

และ (ii) ก าไรจากพอรตลงทนจ านวน 1.70 บาท โดยในอนาคตขางหนา เราประเมนการเตบโตของก าไรไดด ROE แขงแกรงและอตราผลตอบแทนปนผลทนาสนใจ สวนความเสยงหลกจะมาจาก (i) การฟนตวของภาวะการบรโภคในประเทศทชากวาคาด (ii) เทรนดการดภาพยนตรออนไลนมากขน และ (iii) ภาวะเศรษฐกจตางจงหวดทชะลอตวสรางแรงกดดนตอคาใชจายดานความบนเทง

Forecasts and Valuations Dec-13 Dec-14 Dec-15 Dec-16F Dec-17F

Total turnover (THBm) 7,713 8,623 8,580 9,248 10,063

Reported net profit (THBm) 1,052 1,086 1,171 1,263 1,361

Recurring net profit (THBm) 830 978 934 1,113 1,211

Recurring net profit growth (%) 21.7 17.8 (4.5) 19.1 8.8

Recurring EPS (THB) 0.94 1.10 1.05 1.25 1.36

DPS (THB) 1.00 1.05 1.15 1.20 1.22

Recurring P/E (x) 26.0 22.1 23.2 19.5 17.9

P/B (x) 3.53 3.42 3.30 3.19 3.07

P/CF (x) 9.7 9.8 11.0 10.2 9.1

Dividend Yield (%) 4.1 4.3 4.7 4.9 5.0

EV/EBITDA (x) 7.13 5.96 6.36 6.19 5.50

Return on average equity (%) 17.6 17.5 18.1 18.9 19.6

Net debt to equity (%) 70.5 62.4 65.6 73.6 64.2

Our vs consensus EPS (adjusted) (%) (10.9) (13.0)

90

108

126

23

28

33

Major Cineplex (MAJOR TB)Price Close Relative to Stock Exchange of Thailand Index (RHS)

2

4

6

8

10

12

Feb

-15

Apr-

15

Jun-1

5

Aug-1

5

Oct-

15

De

c-1

5

Vol m

15

20

25

30

35

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Core rolling P/E (x)

http://www.efa.biz/

Major Cineplex Thailand Results Review



Financial Exhibits





Profit & Loss (THBm) Dec-13 Dec-14 Dec-15 Dec-16F Dec-17F

Total turnover 7,713 8,623 8,580 9,248 10,063

Cost of sales (5,011) (5,475) (5,553) (5,928) (6,409)

Gross profit 2,702 3,148 3,028 3,320 3,655

Other operating costs (1,781) (2,064) (2,013) (2,127) (2,340)

Operating profit 921 1,084 1,015 1,193 1,315

EBITDA 1,986 2,330 2,241 2,363 2,559

Depreciation of fixed assets (1,065) (1,245) (1,226) (1,170) (1,244)


Net income from investments 189 199 237 240 240

Other recurring income 118 123 148 158 169

Interest expense (149) (173) (155) (156) (158)

Other non-recurring income 221 108 237 150 150

Pre-tax profit 1,301 1,342 1,482 1,585 1,716

Taxation (276) (271) (300) (309) (339)

Minority interests 27 15 (11) (13) (15)

Reported net profit 1,052 1,086 1,171 1,263 1,361

Recurring net profit 830 978 934 1,113 1,211

Key Ratios Dec-13 Dec-14 Dec-15 Dec-16F Dec-17F

Revenue growth (%) 10.8 11.8 (0.5) 7.8 8.8

Operating profit growth (%) 57.9 17.8 (6.4) 17.5 10.2

Recurring net profit growth (%) 21.7 17.8 (4.5) 19.1 8.8

Recurrent EPS growth (%) 21.3 17.7 (4.7) 18.9 8.8

Gross margin (%) 35.0 36.5 35.3 35.9 36.3

Operating EBITDA margin (%) 25.7 27.0 26.1 25.6 25.4

Operating margin (%) 11.9 12.6 11.8 12.9 13.1

Recurring net profit margin (%) 10.8 11.3 10.9 12.0 12.0

Return on average assets (%) 8.4 7.9 8.3 8.6 9.1

Return on average equity (%) 17.6 17.5 18.1 18.9 19.6

Net debt to equity (%) 70.5 62.4 65.6 73.6 64.2

Interest cover (x) 6.18 6.27 6.55 7.65 8.30

Capex/Free cash flow (%) 84.0 32.9 63.8 65.3 25.3

BVPS (THB) 6.88 7.11 7.37 7.61 7.93

DPS (THB) 1.00 1.05 1.15 1.20 1.22

Dividend payout ratio (%) 82.7 84.0 83.8 83.8 83.8

Free cash flow per share (THB) 0.40 1.66 0.80 0.83 1.98

Cash flow (THBm) Dec-13 Dec-14 Dec-15 Dec-16F Dec-17F


Depreciation & amortisation 1,065 1,245 1,226 1,170 1,244

Change in working capital (580) 155 22 (72) 5

Other operating cash flow 1,241 163 165 295 304

Operating cash flow 2,647 2,647 2,428 2,586 2,868

Interest paid (149) (173) (155) (156) (158)

Tax paid (276) (271) (300) (309) (339)

Cash flow from operations 2,222 2,204 1,973 2,120 2,370

Capex (1,866) (725) (1,259) (1,384) (600)

Other new investments (1,360) (133) (150) (180) (189)

Other investing cash flow (153) (159) (48) (183) (82)

Cash flow from investing activities (3,379) (1,018) (1,457) (1,747) (870)

Dividends paid (870) (912) (982) (1,050) (1,081)

Proceeds from issue of shares (1) 51 50 - -

Increase in debt 1,942 (231) 113 524 (400)

Other financing cash flow 101 (11) 37 42 44

Cash flow from financing activities 1,172 (1,105) (782) (485) (1,437)

Cash at beginning of period 481 496 577 312 201

Total cash generated 15 81 (265) (111) 63

Implied cash at end of period 496 577 312 201 264

Balance Sheet (THBm) Dec-13 Dec-14 Dec-15 Dec-16F Dec-17F

Total cash and equivalents 496 577 312 201 264

Inventories 175 154 183 201 211

Accounts receivable 1,159 1,307 1,181 1,204 1,228

Other current assets 307 343 355 372 391

Total current assets 2,137 2,382 2,030 1,979 2,094

Total investments 3,310 3,443 3,593 3,773 3,962

Tangible fixed assets 6,696 6,730 7,358 7,910 7,637

Total other assets 1,487 1,377 1,265 1,350 1,300

Total non-current assets 11,493 11,551 12,216 13,033 12,899

Total assets 13,629 13,932 14,246 15,011 14,993

Short-term debt 2,443 2,376 3,389 3,000 2,600

Accounts payable 1,736 1,899 1,908 1,956 2,004

Other current liabilities 172 267 183 192 202

Total current liabilities 4,352 4,542 5,480 5,148 4,806

Total long-term debt 2,352 2,188 1,287 2,200 2,200

Other liabilities 827 816 831 872 916

Total non-current liabilities 3,179 3,003 2,118 3,072 3,116

Total liabilities 7,530 7,546 7,598 8,220 7,922

Share capital 888 890 893 893 893

Retained earnings reserve 913 1,111 1,295 1,508 1,788

Other reserves 4,302 4,329 4,393 4,393 4,393

Shareholders' equity 6,103 6,331 6,581 6,793 7,073

Minority interests (4) 56 67 (2) (3)

Other equity (0) 0 0 0 0

Total equity 6,099 6,387 6,648 6,792 7,071

Total liabilities & equity 13,629 13,932 14,246 15,011 14,993

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

-10%

-5%

0%

5%

10%

15%

20%

25%

Dec-13 Dec-14 Dec-15 Dec-16F Dec-17F

Revenue growth vs Recurring net profit growth

Revenue growth Recurring net profit growth

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%

26.0%

28.0%

Dec-13 Dec-14 Dec-15 Dec-16F Dec-17F

EBITDA margin vs Net profit margin

Operating EBITDA margin Net profit margin




Figure 1: Major Cineplex’s investment portfolio

THBm 4Q15

Available for sale investment Book value 749

Investment in associates Book value 2,438

Major Cineplex investment: Holding % Market cap

Siam Future (NR) 24.55 2,617 Major Cineplex lifestyle leasehold property fund (NR) 33 1,459

PVRL 3.95 632

Total

4,708

Potential gains

1,522

Per share (THB)

1.70

Source: Company data

Figure 2: Major Cineplex’s DCF valuation

FYE Dec (THBm) 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F

EBIT (1-T) 1,042 1,145 1,235 1,328 1,436 1,529 1,626 1,771 1,889 2,018 +Depreciation & Amortisation 1,170 1,244 1,307 1,372 1,399 1,427 1,454 1,508 1,563 1,691

-Capex 1,420 1,020 1,020 920 920 920 920 920 920 830

-Chg. In NWC (15) (16) (16) (16) (17) (17) (17) (17) (18) (18)

FCF

807

1,385

1,538

1,796

1,932

2,053

2,177

2,376

2,549

2,897

LT growth 2.0% WACC 9.0% Terminal value 42,216

Present value of net FCFF 12,673

NPV of terminal 19,437 Enterprise value 32,111 -Interest baring debt (4,676)

-Non controlling interest (67)

+Cash 312 Equity value 27,679 DCF fair value 31.0


Figure 3: Peer comparison

Media Market

Cap Tickers

P/E P/BV EV/EBITDA Div yield (%) ROE (%)

Company USDm 16F 17F 16F 17F 16F 17F 16F 17F 16F 17F

Major Cineplex Group 634 MAJOR TB 20.5 19.0 3.3 3.2 6.7 5.9 4.7 4.7 18.6 19.2

PVR Ltd 496 PVRL IN 28.0 23.2 4.0 3.5 11.2 9.0 2.7 3.2 19.4 17.8

CJ CGV Co Ltd 562 079160 KS 32.2 24.3 4.6 3.8 13.6 11.3 3.5 3.8 15.2 17.1

Inox Leisure Ltd 282 INOL IN 18.1 13.4 2.2 1.9 7.7 6.2 n.a. n.a. 12.5 14.8

Average (Ex-Major Cineplex) 26.1 20.3 3.6 3.1 10.8 8.8 3.1 3.5 15.7 16.6

Source: Bloomberg, RHB




ปจจยการเตบโตในป 2016

(i)การเขาฉายของหนงท าเงนทแขงแกรง

เราประเมนรายไดจากการขายตวภาพยนตรเตบโต 10.8% y-o-y ในป 2016 จาก (i)การเขาฉายของหนงท าเงนในป 2016 ทคาดวาจะท ารายไดกวา 100 ลานบาท (อาท Captain America 3, Batman vs Superman, X men และ Star Wars 8) (ii) ผลกระทบจากการขายโรงภาพยนตรเขาสพนทใจกลางเมองแบบเตมป (EmQuartier, Westgate และ East Ville) ในป 2015) (iii) แผนการขยายโรงภาพยนตรตอเนองเปน 715 ลานแหงในป 2016 จากเดมเพยง 601 แหงในป 2015 และ ( iv) ความส าเรจของภาพยนตรไทยทใหมารจนสงเพมขน โดยปทผานมา มการประกาศแยกกจการของ GTH เปนสองบรษทไดแก GDH, T Moment ในชวงตนป 2016 ซงเราคาดวาจะผลตภาพยนตรไทยทประสบความส าเรจออกมามากขนในปน

นอกจากนน จ านวนผเขาชมภาพยนตรฟนตวดขนและ MAJOR สามารถบนทกราคาตวเฉลยในระดบทสงได โดยราคาเฉลยปจจบนใกลเคยงประเทศอนในอาเซยน อาท ลาว กมพชา ฟลปปนส อนโดนเซย และเวยตนามแตต ากวาสงคโปร

(ii)สดสวนธรกจอาหารและเครองดม (ทใหมารจ นสง) ตอรายไดต วภาพยนตรมากกวา 30%

ในไตรมาส 4/15 สดสวนการขายอาหารและเครองดมตอรายไดตวภาพยนตรเพมขนสระดบสงสดท 33% และคาดวาจะมากกวา 30% ตอเนองในปน โดยอตราก าไรขนตนจากธรกจดงกลาวยงแขงแกรงทเฉลยกวา 70%

(iii)ประเมนรายไดโฆษณาในโรงภาพยนตรเตบโตเปนตวเลขสองหลก

ทามกลางงบโฆษณา (Adex) รวม (ยกเวนสอโทรทศน) ในป 2015 (-2.5% y-o-y) ทไมสดนก แต MAJOR สามารถบนทกรายไดสอเตบโต 8.6% y-o-y จากการขยายสาขาใหม โดยเราเชอวาปนจะเปนปทดส าหรบธรกจสอในโรงภายนตรจาก (i) การขยายโรงภาพยนตรขนเปน 715 แหงจากเดม 601 แหงในป 2015 และ (ii) การตงเครองซอตวอตโนมต (e-ticketing machines) จ านวน 524 เครอง

Figure 4: Major Cineplex’s movie blockbusters


Figure 5: Major Cineplex’s screen expansion plan for 2016





Figure 6: Major Cineplex’s revenue breakdown Figure 7: Major Cineplex’s revenue and net profit

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

-

2,000

4,000

6,000

8,000

10,000

12,000

2013 2014 2015 2016F 2017F

Sales of movierights

Advertisement

Rental fee

Bowling

Concessionsales

Admissions

THBm

-

200

400

600

800

1,000

1,200

1,400

1,600

-

2,000

4,000

6,000

8,000

10,000

12,000

2013 2014 2015 2016F 2017FTotal revenue Net profit

THBm THBm




รววผลประกอบการไตรมาส 4/15

ไตรมาส 4/15 เปนไตรมาสทนาผดหวง

รายไดและก าไรจากการด าเนนงานในไตรมาส 4/15 ลดลงทงในรอบ y-o-y, q-o-q จากสาเหตของรายไดจากการฉายภาพยนตร Star Wars7: The Force Awakens ทต ากวาคาด ซงแมจะท ารายได ทวโลกไดมากถง 7.2 หมนลานบาท (รองเพยง Avatar และ Titanic) แตหนงไมสามารถท ารายไดในไทยไดด โดยสามารถท ารายไดเพยง 115 ลานบาทเปนอนดบ 7 ของหนงท าเงนในรอบป 2015 เทานน โดยก าไรสทธของ MAJOR ลดลงจากการไมมรายการก าไรจากการขายหนวยลงทนในไตรมาสน

ก าไรจากการด าเนนงานท งปลดลง

รายไดในรอบป 2015 ทรงตวจากผลประกอบการไตรมาส 4/15 ทย าแยและไมมการบนทกก าไรพเศษ (จากการขายสทธภาพยนตรใหกบ MONO (TB, NR) ในป 2014) ท าใหอตราก าไรขนตนลดลงเปน

35% จากเดม 37% ในป 2014 เนองจาก (i) อตราก าไรขนตนของธรกจโรงภาพยนตรทลดลงเปน 16% (20% ในป 2014) จากจ านวนผเขาชมทปรบลดลงเชนกน (ii) clearance sale ของการขายกระปองเครองดมในไตรมาส 3/15 และ (iii) การปดเลนโบลงไป 5 แหง ท าใหก าไรจากการด าเนนงานในป 2015 ลดลง 4% y-o-y เปน 934 ลานบาท แตก าไรสทธเตบโต 8% y-o-y จากก าไรในการขายหนวยลงทนจ านวน 237 ลานบาท (+118% y-o-y)

Figure 8: 4Q15 and 2015 results review FYE Dec (THBm) 4Q14 3Q15 4Q15 QoQ

(%) YoY (%)

2014 2015 YoY (%)

2015 Comments

Admissions 1,129 1,082 1,063 (2) (6) 4,479 4,539 1 Disappointing box office income

Concession (F&B) 315 332 351 6 11 1,306 1,381 6 30% of admission income

Bowling 129 116 124 7 (4) 481 454 (6) Another five locations were closed down

Rental fee 136 129 127 (2) (6) 520 522 0

Advertisement 274 359 267 (26) (2) 1,127 1,224 9

Sales of movie rights 140 171 43 (75) (69) 710 460 (35) Down sharply without one-time gain from sale of movie rights of THB140m in 2014

Revenue 2,124 2,189 1,976 (10) (7) 8,623 8,580 (0) 93% of our forecast

Gross Profit 730 739 671 (9) (8) 3,148 3,028 (4) Mainly from poor cinema gross margin

Gross Profit Margin (%) 34.4 33.8 34.0 37 35

Operating EBITDA 480 543 476 (12) (1) 2,330 2,241 (4)

EBITDA Margin (%) 22.6 24.8 24.1 27 26

Depreciation (305) (328) (320) (2) 5 (1,245) (1,226) (2)

Operating EBIT 175 215 155 (28) (11) 1,084 1,015 (6)

EBIT Margin (%) 8 10 8 13 12

Interest expense (43) (37) (38) 3 (12) (173) (155) (10)

Associates 62 73 40 (45) (35) 199 237 19

Other income 28 45 97 118 251 123 148 20

Pretax profit 221 295 254 (14) 15 1,234 1,245 1

Pretax Margin (%) 10 13 13 14 15

Tax (51) (83) (46) (44) (10) (271) (300) 11

Effective tax rate (%) (23) (28) (18) (22) (24)

Extra gains 29 133 0 n.a. n.a. 108 237 118 Mainly divestment gains

Minority Interest 9 (2) (1) (48) (111) 15 (11) (171)

Net Profit 207 343 138 (60) (33) 1,086 1,171 8 10% below our and Bloomberg’s consensus estimates

Core Profit 179 209 138 (34) (23) 978 934 (4)

Net Margin (%) 8 10 7 11 11





Figure 9: Major Cineplex top five movies by revenue contribution


Figure 10: Major Cineplex’s top 10 movies by revenue contribution 2014 THBm 2015 THBm

Transformers 4 360 Fast and Furious 7 467

I Fine Thank You Love You (TH) 331 Jurassic World 305

King Naresuan 5 (TH) 248 Avengers 2 287

Spiderman 2 174 King Naresuan 6 (TH) 137

Captain America 2 160 Mission Impossible 136

Maleficent 119 Minions 115

X-Men: Days of Future Past 109 Star Wars 7 115

Kidtueng Wittaya (TH) 107 Ant Man 111

Guardians of the Galaxy 101 007 : Spectre 110

The Hobbit 100 Terminator 108


Figure 11: Major Cineplex’s admissions and gross margins Figure 12: Major Cineplex’s guest count and average ticket prices

Source: Company data Source: Company data

-

5

10

15

20

25

30

0

200

400

600

800

1,000

1,200

1,400

1,600

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Admissions

Gross margin%

THBm




Figure 13: Major Cineplex’s concession income and gross margins

Figure 14: Major Cineplex’s concession-to-admission ratio


Figure 15: Major Cineplex’s rental income and gross margins

Figure 16: Major Cineplex’s ad income and gross margins


Figure 17: Bowling business and its gross margins Figure 18: Movie content business and its gross margins


61

62

63

64

65

66

67

68

69

70

71

72

0

50

100

150

200

250

300

350

400

450

500

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Concessions

Gross margin%

THBm

26%

27%

28%

29%

30%

31%

32%

33%

34%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Concessions to admissions

-

5

10

15

20

25

110

115

120

125

130

135

140

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Rental income

Gross margin%

THBm

83

83

84

84

85

85

86

86

87

87

88

0

50

100

150

200

250

300

350

400

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Advertising

Gross margin%

THBm

0

5

10

15

20

25

30

35

40

45

50

0

20

40

60

80

100

120

140

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Bowling

Gross margin%

THBm THBm

-70

-60

-50

-40

-30

-20

-10

0

10

20

30

0

50

100

150

200

250

300

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Movie Content

Gross margin%

THBm




SWOT Analysis

Leader in the cinema business with an 80% market share

Strong synergy with related businesses like bowling/karaoke, rental, cinema media and film distribution

Slow recovery in private spending and purchasing power

Highly dependent on movie line-ups

Room to expand in the provinces

More cinemas will likely lead to strong growth in the high-margin cinema media and concession income

Room to improve margins

Some cannibalisation among branches

Some businesses, like bowling and film production/distribution, are not doing well

Recommendation Chart

Source: RHB, Bloomberg

Source: RHB, Bloomberg

9

14

19

24

29

34

39

Feb-11 Jun-12 Sep-13 Dec-14

Price Close

na

22.0

16.0

18.5

18.8

15.3

27.0

34.4

37.6

38.0

Recommendations & Target Price

Buy Neutral Sell Trading Buy Take Profit Not Rated

Date Recommendation Target Price Price

2015-11-09 Buy 38.0 31.0

2015-09-18 Buy 38.0 32.0

2015-05-12 Neutral 37.6 33.8

2015-02-23 Buy 34.4 30.5

2014-11-10 Buy 27.0 24.9

2014-09-16 Buy 27.0 23.6

2014-05-12 Sell 15.3 17.5

2014-02-18 Sell 15.3 18.2

2013-09-27 Sell 18.8 19.3

2013-05-13 Sell 18.5 23.8



10

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

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14

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Thai Institute of Directors Association (IOD) – Corporate Governance Report Rating 2015

Excellent ADVANC CPN GRAMMY KBANK MCOT PS RATCH SCB THCOM WACOAL BAFS DRT HANA KCE MINT PSL ROBINS SCC TISCO BCP DTAC HMPRO KKP MONO PTT SAMART SE-ED TKT BIGC DTC INTUCH KTB NKI PTTEP SAMTEL SIM TMB BTS EASTW IRPC LHBANK PHOL PTTGC SAT SNC TOP CK EGCO IVL LPN PPS QTC SC SPALI VGI

Very Good AAV BBL COL HEMRAJ MC PG SCG SST THIP TPC TWS ACAP BDMS CPF HOTPOT MEGA PJW SEAFCO STA THRE TPCORP UAC AGE BECL CPI HYDRO MFEC PM SFP STEC THREL TRC UT AHC BKI CSL ICC NBC PPP SIAM SVI TICON TRU UV AKP BLA DCC ICHI NCH PR SINGER SWC TIP TRUE VNT AMATA BMCL DELTA INET NINE PRANDA SIS SYMC TIPCO TSC WAVE ANAN BOL DEMCO IRC NSI PREB SITHAI SYNTEC TK TSTE WINNER AOT BROOK ECF KSL NTV PT SMK TASCO TKS TSTH YUASA APCS BWG EE KTC OCC PTG SMPC TBSP TMI TTA ZMICO ARIP CENTEL ERW LANNA OGC Q-CON SMT TCAP TMILL TTCL ASIMAR CFRESH GBX LH OISHI QH SNP TF TMT TTW ASK CHO GC LOXLEY OTO RS SPI TGCI TNDT TU ASP CIMBT GFPT LRH PAP S&J SSF THAI TNITY TVD BANPU CM GLOBAL MACO PDI SABINA SSI THANA TNL TVO BAY CNT GUNKUL MBK PE SAMCO SSSC THANI TOG TWFP* * On Oct 1,2015 TWFP TWFP merged with TWS resulting in a new company, TWPC

Good 2S AS CBG DNA GCAP ITD LHK MK PATO PTL SEAOIL STPI AEC ASIA CGD EARTH GENCO JSP LIT MODERN PB PYLON SIRI SUC AEONTS AUCT CHG EASON GL JTS LIVE MOONG PCA QLT SKR SUSCO AF AYUD CHOW ECL GLAND JUBILE LST MPG PCSGH RCL SMG SUTHA AH BA CI EFORL GLOW KASET M MSC PDG RICHY SOLAR SYNTEC AIRA BEAUTY CITY ESSO GOLD KBS MAJOR MTI PF RML SORKON TAE AIT BEC CKP FE GYT KCAR MAKRO MTLS PICO RPC SPA TAKUNI AJ BFIT CNS FIRE HTC KGI MATCH NC PL S SPC TCC AKR BH CPALL FOCUS HTECH KKC MATI NOK PLANB SALEE SPCG TCCC AMANAH BIG CPL FORTH IEC KTIS MBKET NUSA PLAT SAPPE SPPT TCJ AMARIN BJC CSC FPI IFEC KWC M-CHAI NWR PPM SAWAD SPVI TEAM AP BJCHI CSP FSMART IFS KYE MFC NYT PRG SCCC SRICHA TFD APCO BKD CSS FSS IHL L&E MILL OCEAN PRIN SCN SSC TFI AQUA BTNC CTW FVC IRCP LALIN MJD PACE PSTC SCP STANLY TIC TIW TPIPL UPF VPO TLUXE TRT UPOIC WHA TMC TSE UREKA WIN TMD TSR UWC XO TOPP UMI VIBHA TPCH UP VIH

IOD (IOD Disclaimer)

การเปดเผลผลการสารวจของสมาคมสงเสรมสถาบนกรรมการบรษทไทย (IOD) ในเรองการกากบดแลกจการ (Corporate Governance) นเปนการ

ดาเนนการตามนโยบายของสานกงานคณะกรรมการกากบหลกทรพยและตลาดหลกทรพย โดยการสารวจของ IOD เปนการสารวจและประเมนจากขอมลของบรษทจด

ทะเบยนในตลาดหลกทรพยแหงประเทศไทยและตลาดหลกทรพยเอมเอไอ ทมการเปดเผยตอสาธารณะและเปนขอมลทผลงทนทวไปสามารถเขาถงได ดงนนผลสารวจ

ดงกลาวจงเปนการนาเสนอในมมมองของบคคลภายนอกโดยไมไดเปนการประเมนการปฏบตและมไดมการใชขอมลภายในในการประเมน

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