Opportunity Dayas 270508 (Final) - Maybank Kim Eng Dayas 270508 (Fi… · Opportunity Day 27 th May...

Kim Eng Securities (Thailand) Public Company Limited

Opportunity Day

27th May , 2008

The Stock Exchange of Thailand

KKim Eng Securities im Eng Securities ((ThailandThailand ) ) Public Public Company LimitedCompany Limited

Opportunity DayOpportunity Day

2727th th May , May , 20082008

The Stock Exchange of ThailandThe Stock Exchange of Thailand

2

KESTKEST’’s Historys History1990 Nithipat Capital Co., Ltd established in October 1990

1996 Becomes Nithipat Capital and Securities Co., Ltd (NICS)

1998 Kim Eng Holdings Ltd. gains total control of NICS

2001 Kim Eng merges with Yuanta; acquires 77.73% of Yuanta (Thailand) Co., Ltd

2002 Kim Eng secures number 1 position in terms of brokerage market share

2003 - Launched online trading service, KETRADE- Kim Eng listed on the SET – 3rd December 2003

2004 KEST is in MSCI Index and SET 50 Index

2005 Money and Banking Magazine’s “Broker of the year” for 2005 (after maintaining number 1 brokerage market share for three consecutive years from 2002 to 2004)

Receives Derivatives Agent and Stock Borrowing, Broking and Lending licenses from the Ministry of Finance on 17August and 26 December respectively

2006 Launched derivatives business on Thailand Futures Exchange (TFEX), with SET50 Index Futures“Most Popular House 2006” at TFEX Best Awards 2006

2007 Kim Eng maintained its premier position from 2002-2007

3

0%

20%

40%

60%

80%

100%

Jan05

Apr05

Jul05

Oct05

Jan06

Apr06

Jul06

Oct06

Jan07

Apr07

Jul07

Oct07

Jan08

0

2

4

6

8

10

12

Local Investors Foreign Investors

Local Institutes MKT. SHARE

KESTKEST’’ss Highlights Highlights Market share for Jan Market share for Jan -- Mar Mar 20082008 (%)(%)

Portion of each Customer Type of market and Portion of each Customer Type of market and KESTKEST’’ss market sharemarket share

Local Investors

Local Institutes

� Baht 3,988.07 million shareholder’s equity with NCR of 152.34% as of 31 Mar 2007.

� 873 total staffs, which include

- 523 marketing officers; largest among brokers

- 31 research analysts, covering economic,

fundamental and technical analysis.

- 18 investment banking staff covering debt & equity

capital markets and offering financial advisory services.

- 2 derivative staff managing derivative products.

� Money and Banking Magazine “Broker of the Year” for 2005 & 2006.

� Won Derivative Agent and Stock Borrowing, Broking

and Lending licenses from the Ministry of Finance on 17August and 26 December 2005 respectively

21Ranking

11.24%8.13%Market share

FuturesEquityJan-Mar 2008

2.32.362.412.572.592.82.842.932.963.23.523.673.823.853.893.94

5.025.185.375.71

8.13

DBSV

ACLS

TRINITY

JPM

CLSA

AYS

BLS

KGI

SCBS

CS

KIMENG

KESTKEST’’ss market share market share (%)(%)Portion of each Customer TypePortion of each Customer Type

4

Bangkok14 Branch

Korat 1Branch

Mahachai1 Branch

Had Yai2 Branch

Phuket1 Branch

Chiang Mai2 Branch

Chantburi1 Branch

Surin1 Branch

Ubonratchathani1 Branch

Lampang1 Branch

Surat Thani1 Branch

Cholburi1 Branch

Rayong1 Branch

Samut Songkhram1 Branch

Aranyaprathet1 Branch

Korat 2Branch

Background of KEST Background of KEST

T ha ilandT ha iland M alaysiaM alaysia S ingaporeS ingapore IndonesiaIndonesia P h ilipp inesP h ilipp ines H ong K ongH ong K ong

L ondonL ondonN ew Y orkN ew Y ork

KEST commits itself to provide brokerage services in Thailand. KEST has invested in 40 branches; 23 branches in Bangkok, 17 branches in the provinces. KEST enjoys an unique position having “Local Leadership” with a global reach.

Had

Yala1 Branch

As of October 2005

Phahurat

Ladprao

Ngarmvongvarn

SeaconYada Emporium

Thapra

Asoke

Srinakarin

Future ParkRungsit

BangkhaeYaowarat

Pinklao

Thaniya

Head Office

Satornnakorn

Town in Town

Fashion Iceland

5

Fitch RatingsFitch RatingsThailandCredit Analysis

Ratings

Kim Eng Securities (Thailand) Plc

NationalLong-term A(tha)Short-term F1(tha)Outlook Stable

Sovereign RiskForeign Long-Term BBB+Local Long-Term AOutlook Stable

Financial DataKim Eng Securities (Thailand) Plc

31 Dec 31 Dec 2006 2005

Total Assets (USDm) 153.0 154.3Total Assets (THBbn) 5,514.5 6,329.10Equity (THBbn) 4,013.4 4,047.6Net Income (THBbn) 532.8 715.0ROA (%) 9.0 11.0ROE (%) 13.2 17.6Equity/Assets (%) 72.8 64.0

AnalystVincent Milton, Bangkok+66 2 655 [email protected]

David Marshall, Hong Kong+852 2263 [email protected]

Rating Rationale

� Fitch Ratings (Thailand) has upgraded Kim Eng Securities (Thailand) Plc.’s National Long-term rating to “A(tha)” from “BBB+(tha)” and its National Short-term rating to “F1(tha)” from “F2(tha). The Outlook is Stable. This follows a reassessment of the company’s moderate risk profile (thanks to its solid capital and liquidity positions) and its strong local retail franchise, which draws benefits from the expertise and support of its strong and sizeable foreign parent and its longstanding presence in the region. While leverage could increase in the future, its balance sheet should remain strong.

� The Outlook is Stable given strong capital and liquidity positions. Downside risks could stem from worse-than-expected capital market conditions or a substantial diversification into higher risk businesses.

� Securities broking made up 85.5% of total revenue in 2006.A decline in trading volumes and Kim Eng’s market share led to a fall in brokerage revenues to THB1.7 billion in 2006 and only THB257 in Q107. Brokerage income is dependent on the performance of the Thai Stock market, particularly trading volumes. Some liberalisation commissions is likely to add pressure on the firm’s profitability in the future. Kim Eng intends to increase revenues from investment banking andprivate fund management, margin loans and derivative warrants, although their contribution is still expected to be relatively small.

� Securities Business receivables and cash makes up the mainstay of Kim Eng’s assets. Its impaired receivables fell slightly to THB305.1m at end-March 2007, from THB310.2M at end 2006 while impaired receivable ratio rose to 18.1% of total receivables from 17.6%. Nearly all of Kimeng ‘s impaired receivables from margin lending were incurred during the country’s 1997 financial crisis and are fully provisioned. New impaired receivables have been negligible. Credit Risk should generally be moderate, although risks from customers’ cash trading and Kim Eng’s underwriting business may rise particularly during a falling market. While market risks appear moderate, Kim Eng’s proprietary trading has raised its risk profile, although trading volumes so far appear very small.

� Kim Eng has primarily funded its operations from capital. Most of its liabilities are in the form of securities trading accounts payable. As at end-March 2007, its debt/equity (D/E) ratio was very low at 35.8%, although this could rise significantly in the future. The D/E ratio excluding securities trading accounts payable was even lower at 15.3%.

� Kim Eng’s equity declined to THB3.8 bn at end-March 2007, from THB4 bn at end-2006, due to dividend payments (89% payout ratio in 2006). Its equity/assets ratio of 73.7% at end-March 2007 is strong, partly because it may need a significant capital allocation for its derivative warrant business in the future and to fund other business expansion.

6

Board of DirectorsBoard of DirectorsHonorary Chairperson ; Mrs. Gloria Lee Kim Yew

The Board of Directors ;

1 Mr. Yuth Vorachattarn Chairman to the BOD & Audit Committee Member

2. Dr. Paiboon Sareewiwatthana Director & Chairman to the Audit Committee

3. Dr. Preecha Jarungidanan Director & Audit Committee Member

4. Mr. Ronald Anthony Ooi Thean Yat Director

5. Mr. Montree Sornpaisarn Director

6. Mr. Judd Clark Kinne Director

7. Mr. Hwang Wei Cherng Director

8. Ms. Chao Tse Yang Director

9. Mr. Pusit Kaewmongkolsri Director

Honorary Chairperson ; Mrs. Gloria Lee Kim Yew

The Board of Directors ;

1 Mr. Yuth Vorachattarn Chairman to the BOD & Audit Committee Member

2. Dr. Paiboon Sareewiwatthana Director & Chairman to the Audit Committee

3. Dr. Preecha Jarungidanan Director & Audit Committee Member

4. Mr. Ronald Anthony Ooi Thean Yat Director

5. Mr. Montree Sornpaisarn Director

6. Mr. Judd Clark Kinne Director

7. Mr. Hwang Wei Cherng Director

8. Ms. Chao Tse Yang Director

9. Mr. Pusit Kaewmongkolsri Director

KEST’s Management Committee comprises 5 members, as below

1. Mr. Montree Sornpaisarn Management Committee Chairman

2. Mr. Pusit Kaewmongkolsri Management Committee Member

3. Mr. Supachai Ekkul Management Committee Member

4. Ms. Boonporn Boriboonsongsilp Management Committee Member

5. Mr. Ong Cheow Kheng Management Committee Member

KEST’s Management Committee comprises 5 members, as below

1. Mr. Montree Sornpaisarn Management Committee Chairman

2. Mr. Pusit Kaewmongkolsri Management Committee Member

3. Mr. Supachai Ekkul Management Committee Member

4. Ms. Boonporn Boriboonsongsilp Management Committee Member

5. Mr. Ong Cheow Kheng Management Committee Member

7

Organization StructureOrganization Structure

Marketing Trainee

Internal Audit & Compliance

Management Committee (MANCOM)

Chief Executive Officer(CEO)

General Risk Management

Research

Derivatives Investment Banking

Corporate Com. & Training

Business Development

Board of Directors

Audit CommitteeRisk Management

Committee

E-Commerce

Retail 3

Retail Sales & Dealing

Retail 1

Retail 2

Foreign Institutional

Local Institutional

Institutional Sales

Human Resources

Treasury/Cashiers

Settlement/Custodian

Accounting

General Services

Corporate Legal

Chief Operating Officer(COO)

Underwriting Committee

Investment Committee

(IC)

Investment Dept.

OperationClient Service

Information and TechnologyChief Fin. Officer

Client Credit &

Risk Control

8

Portion of each Customer TypePortion of each Customer Type

15.3%28.8%55.9%Dec-07

17.8%28.6%53.6%Nov–07

15.8%29.2%55.0%Oct-07

16.8%29.5%53.7%Jan-08

15.1%30.2%54.7%Feb–08

14.8%30.0%55.2%Sep-07

Market Customer Type

15.4%35.8%48.8%Mar-08

14.4%29.5%56.0%Aug-07

12.9%29.2%57.9%Jul-07

13.2%33.6%53.2%Jun-07

14.4%36.8%48.8%May-07

14.7%39.2%46.1%Apr-07

12.0%41.8%46.2%Mar-07

12.3%35.1%52.5%Feb-07

11.7%41.6%46.7%Jan-07

14.0%35.9%50.1%Dec-06

10.6%33.4%56.0%Nov-06

13.2%33.8%53.0%Oct-06

12.6%37.9%49.4%Sep-06

12.1%30.2%57.7%Aug-06

12.6%28.3%59.0%Jul-06

14.1%40.3%45.6%Jun-06

13.6%35.9%50.6%May-06

10.2%36.1%53.7%Apr-06

InstitutionForeignRetailDate

2.00%4.35%12.92%Dec-07

1.91%4.16%13.58%Nov-07

1.84%4.30%12.58%Oct-07

2.42%3.64%12.86%Jan-08

2.95%3.95%12.89%Feb–08

1.71%2.59%11.98%Sep-07

Market Share of KEST by Customer Type

1.97%2.06%12.50%Mar-08

2.29%4.83%12.55%Aug-07

1.78%3.87%12.00%Jul-07

1.82%2.93%12.23%Jun-07

3.12%2.39%11.36%May-07

2.93%4.84%11.23%Apr-07

2.14%2.18%10.96%Mar-07

3.03%4.26%11.75%Feb-07

2.34%3.22%11.38%Jan-07

2.97%4.93%11.16%Dec-06

2.67%4.23%11.61%Nov-06

2.52%4.55%11.50%Oct-06

1.85%4.72%11.63%Sep-06

1.82%3.73%12.00%Aug-06

2.08%5.01%11.91%Jul-06

2.54%4.44%11.69%Jun-06

2.27%4.74%12.21%May-06

2.94%5.55%12.36%Apr-06

InstitutionForeignRetailDate

9

Portion of each Customer TypePortion of each Customer Type

Market share of each KEST's customer type to market sector

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Jan-05

Mar-05

May-05

Jul-05

Sep-05

Nov-05

Jan-06

Mar-06

May-06

Jul-06

Sep-06

Nov-06

Jan/07

Mar/07

May/07

Jul/07

Sep/07

Nov-07

Jan-08

Mar-08

IS LI Retail

KEST portion of each customer type

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%100.00%

Jan 05

Apr 05

Jul 05

Oct 05

Jan 06

Apr 06

Jul 06

Oct 06

Jan 07

Apr 07

Jul 07

Oct-07

Jan-08

Retial Foreign Local

10

Market Turnover is Growing As Market Size is Growin g

Growing Market Size & Turnover

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Q1'03 Q2'03 Q3'03 Q4'03 Q1'04 Q2'04 Q3'04 Q4'04 Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'070%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Trading Market Cap Trading/Mkt.Cap

Market trading / Market Capitalizationis consistently in range of 15%-30%, depend on market sentiments.

Market Capitalizationkeep growing and tend to sustain as SET Index jump since Jul 07.

Therefore, Market Turnover tends to grow continuously.

• Energy stocks still has been a major group for inve sting. This sector has the biggest market capitalization and also turnover.

• Average turnover in Jan – Mar 08 is Baht 18,800 mn per day that increased by 60% from the same period in 2007.

116

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan03

May03

Sep03

Jan04

May04

Sep04

Jan05

May05

Sep05

Jan06

May06

Sep06

Jan07

May07

Sep07

Portion of order through Internet Portion of order through Marketing

Portion of trading through Internet and MarketingPortion of trading through Internet and Marketing

Normal clientsNormal clients

Internet OrderInternet Order

� Online trading business from Jan –Mar 08 increased by 126.2%from Jan – Mar 07 with first top ranking .

� KEST has planned to be ranked as number one for Online trading business.

12

� Among the 27 TFEX member brokers, KEST ranked #2 by derivatives trading values from Jan-Mar 2008. KEST’sderivatives trading volumes come from servicing local institutions, foreign institutions and retail clients. KEST has no proprietary trading nor market making activities.

� Since TFEX commenced trading on April 2006, KEST has earned the customers’derivatives account for 1,372 accounts. Trading channels cover both sending orders through marketing officers and trading through the internet. KEST has the largest number of marketing officers –310 derivatives sales persons - spreading across 40 branches throughout the country.

� KGI,TIPOL,PST has proprietary trading and market making activities

14.34

11.24

11.03

10.78

5.66

4.77

4.72

4.23

4.02

3.55

3.09

2.68

2.67

2.28

1.99

1.76

1.69

1.41

1.32

1.05

0.55

0.27

0.07

0.30

4.50

0.02

TIPOL

KEST

PST

KGI

BLS

ZMICO

PHATR

UBS

JPM

SCBS

SSEC

ASP

CNS

CS

ACLS

TSC

TNS

KKS

SCIBS

AYD

DBSV

MPSEC

BTSEC

CLSAT

UOBFT

SYRUS

Derivatives Brokerage BusinessDerivatives Brokerage BusinessTFEX Market Share in Q1 : 2008

(%Share by Trading Value)

13

Derivatives Brokerage BusinessDerivatives Brokerage Business

� In the first quarter of 2008, KEST’s Brokerage fee from Derivatives Business was 34.2 million baht compared to 10.5 million baht in the first quarter of 2007 due to derivatives market growth. The average daily volume increased from 473 contracts in Q1 2007 to1,669 contracts in Q1 2008 ,this represented an increase by 247.14%over a year . In Q1 2008,the derivatives trading value represented 22.44% of the cash market. KEST has gained 11.24% market share of TFEX trading value in Q1 2008.

KEST's Derivative Volumes and Market Share (%)(Q1 2007)

9,8939,12310,329

8.4%

11.0%10.9%

0

10,000

20,000

30,000

40,000

50,000

Jan-07 Feb-07 Mar-07

Vol

ume

(Con

trac

ts)

0%

2%

4%

6%

8%

10%

12%

14%

Mar

ket S

hare

(%)

VolumeMkt Share

KEST's Derivative Volumes and Market Share (%) (Q1 2008)

44,919

31,38428,858

12.2%

9.8%

11.8%

0

10,000

20,000

30,000

40,000

50,000

Jan-08 Feb-08 Mar-08

Vol

ume

(Con

trac

ts)

0%

2%

4%

6%

8%

10%

12%

14%

Mar

ket S

hare

(%)

VolumeMkt Share

14

KESTKEST’’ss Track Record from Track Record from 20052005--20062006

Equity Capital MarketEquity Capital Market

Italian Thai Development

2005Co-Lead Manager

Issue Size: 4,600 MB

Italian Thai Development

2005Co-Lead Manager


Bangsaphan Barmill

2005Lead Underwriter

Issue Size: 860.7 MB

Bangsaphan Barmill



Salee Industry


Issue Size: 99.7 MB

Salee Industry


Issue Size: 99.7 MB

Shin Satellite

2005Co-Lead Manager


Shin Satellite

2005Co-Lead Manager


Phatra Securities



Phatra Securities



M.C.S. Steel


Issue Size: 336 MB

M.C.S. Steel


Issue Size: 336 MB

Indorama Polymers

2005Co-Lead UnderwriterIssue Size: 1,200 MB

Indorama Polymers

2005Co-Lead UnderwriterIssue Size: 1,200 MB

UOB KayHian


Issue Size: 465 MB

UOB KayHian


Issue Size: 465 MB

IB business also declined along with the marketIB business also declined along with the market. . However, we expect to rise to Number However, we expect to rise to Number 2 2 position position in Equity Offerings, thanks to large deals like ITD, SATTEL, andin Equity Offerings, thanks to large deals like ITD, SATTEL, and PHATRAPHATRA..

Thai Ha

2005Lead UnderwriterIssue Size: 66 MB

Thai Ha

2005Lead UnderwriterIssue Size: 66 MB

TRC Construction



TRC Construction



Interhides



Interhides



Bangkok Metro


Issue Size: 3,661.24 mil.

Bangkok Metro


Issue Size: 3,661.24 mil.

15

SIS Distribution (Thailand) Plc.



SIS Distribution (Thailand) Plc.



C.M. Organizer



C.M. Organizer



Dhanamitr Factoring


Issue Size: 57.2 MB

Dhanamitr Factoring


Issue Size: 57.2 MB

DCON Products


Issue Size: 370 MB

DCON Products


Issue Size: 370 MB

Hwa Fong Rubber (Thailand)


Issue Size: 412 MB

Hwa Fong Rubber (Thailand)


Issue Size: 412 MB

Eastern Commercial Leasing Plc.



Eastern Commercial Leasing Plc.



Airport (Thailand) Plc.

2004Senior Co-Manager

Airport (Thailand) Plc.

2004Senior Co-Manager

KESTKEST’’s Track Record from s Track Record from 2003 2003 to to 20042004

Equity Capital MarketEquity Capital Market

Chonburi Concrete Product


Issue Size: 550 MB

Chonburi Concrete Product


Issue Size: 550 MB

Bangpakong Terminal

2003Lead Manager

Issue Size: 392 MB

Bangpakong Terminal

2003Lead Manager

Issue Size: 392 MB

Thai Mitsuwa

2003Lead Manager


Thai Mitsuwa

2003Lead Manager


Tycoons Worldwide Group(Thailand)



Tycoons Worldwide Group(Thailand)



TPI Polene

2004Underwriter


TPI Polene

2004Underwriter


Syrus Securities


Issue Size: 660 MB

Syrus Securities


Issue Size: 660 MB

Globlex Holding Management



Globlex Holding Management



Univenture

2003Lead Manager


Univenture

2003Lead Manager


Vanachai Group

2003Lead Manager

Issue Size: 640 MB

Vanachai Group

2003Lead Manager

Issue Size: 640 MB

Krungthai Bank

2003Co-lead Underwriter


Krungthai Bank



Polyplex (Thailand)



Polyplex (Thailand)



Thainox Stainless

2004Co-Lead Manager


Thainox Stainless

2004Co-Lead Manager


Tapaco


Issue Size: 56.5 MB

Tapaco


Issue Size: 56.5 MB

Siam City Bank



Siam City Bank



Our Commitment You Can Trust !!!

Our Commitment Our Commitment You Can Trust You Can Trust !!!!!!

16

KESTKEST’’s Track Record from s Track Record from 2003 2003 to to 20062006

Premier Resort Krabi2003

Lead ManagerSecured Amort.

DebentureIssue Size: 850 MB

Premier Resort Krabi2003



Cental Pattana2003

Lead ManagerProperty Fund


Cental Pattana2003



Preuksa Real Estate2003

Lead ManagerUnsecured Amort.


Preuksa Real Estate2003



Sahaviriya Steel 2003


DebentureIssue Size: 4,000 MB

Sahaviriya Steel 2003



Loxley2003



Loxley2003



Vanachai Group2003


Debenture Issue Size: 1,650 MB

Vanachai Group2003


Debenture Issue Size: 1,650 MB

Cental Pattana2003



Cental Pattana2003



Debt Capital MarketDebt Capital Market

Ratchthani Leasing 2003



Ratchthani Leasing 2003



Central Hotels & Resort 2003


Issue Size: 800 MB

Central Hotels & Resort 2003


Issue Size: 800 MB

BLCP Power

2003FA for

Connected transaction

BLCP Power

2003FA for

Connected transaction

Global Thai Finance

2003IFA on divesture of

GTF in GTS

Global Thai Finance

2003IFA on divesture of

GTF in GTS

CH.Karnchang2004

FA on issue Right Warrants and ESOP

Warrants

CH.Karnchang2004

FA on issue Right Warrants and ESOP

Warrants

Siam General Factoring 2004

IFA on Connected Transaction for

Acquiring Global Thai Finance’s shares

Siam General Factoring 2004


Acquiring Global Thai Finance’s shares

Financial AdvisoryFinancial Advisory

Thai Military Bank2004


Acquiring DTDB & IFCT

Thai Military Bank2004


Acquiring DTDB & IFCT

Siam Cement 2004

Tender Agentfor Acquisition of

TPC sharesNPC Shares

Siam Cement 2004

Tender Agentfor Acquisition of

TPC sharesNPC Shares

LPN Development2004

FA for share valuation on one of its subsidiary

LPN Development2004

FA for share valuation on one of its subsidiary

Matching Studio2004

IFA for Tender Offer waiver (whitewash)

Matching Studio2004

IFA for Tender Offer waiver (whitewash)

CS Loxinfo2005

FA for Valuation of Teleinfo Media

CS Loxinfo2005

FA for Valuation of Teleinfo Media

Bangchak Pertroleum2005

IFA for Connected Transaction and

Whitewash

Bangchak Pertroleum2005

IFA for Connected Transaction and

Whitewash

GMM Media2005

IFA on Connected Transaction for Share

Acquisition in MATI and POST

GMM Media2005

IFA on Connected Transaction for Share

Acquisition in MATI and POST

Manecomp Precision Technologies

2005Tender Offer Preparer

and Tender Offer Agent

Manecomp Precision Technologies

2005Tender Offer Preparer

and Tender Offer Agent

IAG Group 2006

Tender Offer Preparer & Tender Agent

for Acquisition of Safety Insurance Shares

IAG Group 2006

Tender Offer Preparer & Tender Agent

for Acquisition of Safety Insurance Shares

Industrial Estate Authority of Thailand

2005Co-FA for Study on

Potential Privatization

Industrial Estate Authority of Thailand

2005Co-FA for Study on

Potential Privatization

Millennium Steel

2006IFA on Tender Offer by Tata Steel and NatSteel

Millennium Steel

2006IFA on Tender Offer by Tata Steel and NatSteel

Bank of Ayudhya

2006IFA on Whitewash, PP at low price to GE and asset

acquisition from GE

Bank of Ayudhya

2006IFA on Whitewash, PP at low price to GE and asset

acquisition from GE

17

We have been selected by the Money and Banking We have been selected by the Money and Banking

Magazine as Magazine as ““ Broker of the Year for Broker of the Year for 20062006”” as we have as we have

maintained our Nomaintained our No . . 1 1 Broker position in market share Broker position in market share

for for 4 4 consecutive years from consecutive years from 2002 2002 through through 20052005. . In In

20052005, we attained our No, we attained our No . . 1 1 ranking with a ranking with a 1010..2020% %

market share, while holding a market share, while holding a 99..3131% % market share in market share in

the the 11stst quarter of quarter of 20062006..

This is coupled with our number This is coupled with our number 1 1 status for Thailand status for Thailand

Equity Offerings ranked by Bloomberg for the Equity Offerings ranked by Bloomberg for the 11st half st half

of of 20052005. . We wish to thank all our valued clients who We wish to thank all our valued clients who

place their trust in usplace their trust in us . . We believe that our success is We believe that our success is

built by the strong team work of our staff in Marke ting, built by the strong team work of our staff in Marke ting,

Investment Banking, Research DeptInvestment Banking, Research Dept .., back office , back office

functions and in ITfunctions and in IT . . As a result, we have created a As a result, we have created a

number of innovative services; Onnumber of innovative services; On --line Trading, line Trading,

KETradeKETrade ((OnOn--line Trading via Internetline Trading via Internet .).), , KELiveKELive

((Research and archivesResearch and archives ) ) and and KELiveKELive TV TV ((Live TV Live TV

reportsreports ).).

““ Broker of the Year Broker of the Year 20062006””selected by the Money and Banking Magazineselected by the Money and Banking Magazine

18

We are pleased to announce that Kim Eng Securities We are pleased to announce that Kim Eng Securities

((ThailandThailand ) ) Plc has been awarded Plc has been awarded Consensus Contributors Consensus Contributors

Awards Awards 20052005 from the Securities Analysts Association in from the Securities Analysts Association in

three categoriesthree categories ::

•• 11stst Consensus Report Contributor Consensus Report Contributor : : LargeLarge --Cap StocksCap Stocks

•• 11stst Consensus Report Contributor Consensus Report Contributor : : Mid to SmallMid to Small --Cap Cap

StocksStocks

•• 33rdrd Consensus Information Contributor Consensus Information Contributor : : Mid to SmallMid to Small --Cap Cap

StocksStocks

We believe that the awards recognize our strong com mitment We believe that the awards recognize our strong com mitment

to research quality and extensive coverageto research quality and extensive coverage . . We currently We currently

provide inprovide in --depth analysis on depth analysis on 130 130 stocks, which represent stocks, which represent

about about 8080% % of total market capitalizationof total market capitalization . . Our research Our research

reports are disseminated via our nationwide branch network, reports are disseminated via our nationwide branch network,

using such tools as the using such tools as the KeliveKelive website and our live TV website and our live TV

broadcasts as well as broadcasts as well as SettradeSettrade . . Although primarily aimed at Although primarily aimed at

retail investors, Kim retail investors, Kim EngEng ’’ss research has become widely read research has become widely read

by domestic institutions and is regularly quoted i n the by domestic institutions and is regularly quoted i n the

presspress ..

““ Consensus Contributors AwardConsensus Contributors Award ””

19

SET AWARDS SET AWARDS 20062006In the recent "SET AWARDS 2006” ceremony, Kim Eng Securities (Thailand) Plc. has been short-listed top 3 firms for 3 awards:, Best Brokerage Services – Retail, Best Research House – Retail, and Best Performance –Financials

This follows the company’s success at the “SET AWARDS 2004” event where KEST was short-listed top 3 firms for 4 awards: FA for Best Newly-Listed Company, Best Newly-Listed Company, Best Brokerage House Service – Retail and Best Research House – Retail.

Best Performance Best Performance -- FinancialsFinancials

Best Brokerage Services Best Brokerage Services –– Retail Retail Best Research House Best Research House -- RetailRetail

20

IBIB’’ss Mandated & Potential DealsMandated & Potential Deals

2 - 32. Property Fund (REIT)

10 - 153. Initial Public Offering (IPO)/Added on Public Offering

1 - 24. Equity/Private Placement

2 - 46. Financial Advisory (FA) - Others

2 - 35. Fixed Income

8 -101. M&A

DealsProduct Type

Deals by Products in pipelineDeals by Products in pipeline

21

Financial HighlightsFinancial HighlightsFinancial Highlights

22

Revenue StructureRevenue Structure

Jan. - Mar. Jan. - Mar. Jan. - Dec. Jan. - Dec.

Bt. Million % Bt. Million % Bt. Million % Bt. Million %

1. Brokerage fee from Securities Business 457.99 82.01% 246.81 44.19% 1,618.63 82.12% 1,645.15 83.49%

2. Brokerage fee from Derivatives Business 34.27 6.14% 10.52 1.88% 89.54 4.54% 15.60 0.79%

3. Fee and Services income 4.61 0.83% 4.15 0.74% 24.64 1.25% 62.06 3.15%

4. Gain(loss) on trading in securities 5.66 1.01% 8.38 1.50% 6.91 0.35% 2.92 0.15%

5. Gain(loss) on trading in derivatives (0.05) -0.01% (0.05) -0.01% (0.16) -0.01% -0.23 -0.01%

6. Interest & dividend income 29.46 5.27% 40.81 7.31% 138.57 7.03% 170.65 8.66%

7. Interest on margin loan 20.62 3.69% 10.77 1.93% 62.38 3.16% 47.32 2.40%

8. Other income 5.93 1.06% 5.25 0.94% 30.64 1.55% 26.95 1.37%

Total 558.49 100.00% 326.65 58.49% 1,971.15 100.00% 1,970.42 100.00%

Average Daily Turnover (Bt Million) 3,129 1,718 2,826 2,810

% Local Retail 79.93% 75.68% 78.70% 73.09%

%Local Institutional 5.15% 5.07% 4.33% 4.17%

% Foreign Institutional 14.92% 19.25% 16.97% 22.74%

Market Share 8.13% 7.16% 8.10% 8.57%

Income

2007 20062008 2007

23

Financial StatementFinancial Statement

Remark: At the extra ordinary shareholders� meeting No.2/2002 held on September 5,2002, theshareholders approved to change the par value of the ordinary shares from Baht 10.00 per share to Baht 5.00 per share. So the par value forcomparison every year is Baht 5.00

557,775

0.30

166,697

558,492

3,040,640

3,987,844

2,681,216

6,669,060

2008Jan – Mar.

545,000

1.31

1,042,662

3,210,025

4,382,433

4,068,357

2,559,813

6,628,170

2004Jan-Dec

545,000

1.31

714,978

2,355,550

2,445,432

4,047,585

2,281,537

6,329,122

2003Apr – Dec

545,986

0.98

532,799

1,970,406

1,786,235

4,013,494

1,501,052

5,514,546

2005Jan-Dec

552,654

1.00

551,359

1,971,159

3,425,257

4,172,686

2,623,608

6,796,294

2007Jan – Dec

549,195

0.12

65,517

326,658

1,711,288

3,763,231

1,345,971

5,109,202

2007Jan – Mar

The Weighted Average Number of Ordinary Share (Thousand Share)

Net Income (Loss) per share

Net Income (Loss)

Total Income

Total Securities and Derivatives Business Receivables and accrued interest receivables

Total Shareholders’ Equity

Total Liabilities

Total Asset

2006Jan – Dec

24

Financial RatiosFinancial Ratios2008 2007 2007 2006

Common size Jan.-Mar. Jan.-Mar. Jan.-Dec. Jan.- Dec

Total Income 100.00% 100.00% 100.00% 100.00%

Brokerage fees 88.14% 78.78% 86.66% 84.28%

Fees and services income 0.83% 1.27% 1.25% 3.15%

Gain(loss) on trading in securities 1.00% 2.55% 0.34% 0.14%

Interest and Dividend Income 8.97% 15.79% 10.19% 11.06%

Other income 1.06% 1.61% 1.55% 1.37%

Total Cost 100.00% 100.00% 100.00% 100.00%

Variable Cost 52.44% 34.59% 49.40% 47.03%

Fixed Cost 47.56% 65.41% 50.60% 52.97%

Total Assets 100.00% 100.00% 100.01% 100.00%

Cash 36.87% 53.79% 31.05% 46.37%

Investment 7.51% 7.25% 6.18% 7.66%

Account Receivable 48.05% 28.65% 55.41% 36.43%

Other Assets 7.57% 10.31% 7.36% 9.54%

Total Liabilities 100.00% 100.00% 100.00% 100.00%

Account Payable 70.11% 59.02% 82.96% 76.04%

Accrued Expense 12.94% 10.66% 14.48% 20.44%

Other Liabilities 16.95% 30.32% 2.56% 3.52%

Ratio Analysis

ROA * 2.48% 1.23% 8.96% 9.00%

ROA (Annualized) 9.90% 4.93% 8.96% 9.00%

ROE * 4.09% 1.68% 13.47% 13.22%

ROE (Annualized) 16.34% 6.74% 13.47% 13.22%

Gross Margin 82.55% 83.13% 82.09% 83.34%

Net Margin 29.85% 20.06% 27.97% 27.04%

Variable Cost to Revenue 31.72% 25.91% 31.09% 29.89%

Fixed Cost to Revenue 28.77% 49.00% 31.84% 33.67%

Overdue / Account Receivable 17.83% 17.83% 8.67% 17.36%

25

AssetsAssets

Balance SheetsBalance Sheets

Liabilities & EquitiesLiabilities & Equities(Million Baht)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Dec 05 Dec.06 Dec.07 Mar.07 Mar.08

TotalOthersSecurities Business Receivable - NetInvestment in Securities - NetCash and Deposit with Financial Institution

(Million Baht)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Dec 05 Dec.06 Dec.07 Mar.07 Mar.08

Liabilities

Shareholders' Equity

26

Profit & LossProfit & Loss2 ,724

2 ,958

3 ,210

2 ,356

1 ,970 1 ,971

327

558

240

338

923

1 ,043

715

533 551

66167

1 ,4151 ,444

1 ,635

820

1 ,254 1 ,233

894

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2003 (Apr

- Dec)

2003 (Jan-

Dec)

2004 (Jan-

Dec)

2005 (Jan-

Dec.)

2006 (Jan-

Dec)

2007 (Jan-

Dec)

2007 (Jan-

M ar)

2008 (Jan-

M ar)

Year

Bt. million

Total RevenuesTotal Expenses (excl. corporate tax )Net Profit (Loss )

Profit & Loss

27

Credit Outlook & NCRCredit Outlook & NCR

Detail of Doubtful Account Receivable

(304,918,094.46)

18,819,941.44

8,886,232.62

3,235,559.60

0.00

274,634,086.25

Mar. 07

(298,437,223.49)

18,190,087.25

6,091,880.64

2,171,421.24

0.00

272,097,073.71

Mar.08

0.000.000.00Account receivable(Old Margin Loan) – 1999 to dated

3,354,939.603,235,559.602,171,421.24Account receivable -overdue cash a/c

before 1999

(307,633,596.63) (309,672,948.94)(298,492,438.04)Allowance for doubtful accounts

18,826,495.1518,819,941.4418,190,087.25Accrued interest receivables - margin loans

7,112,090.0113,272,775.586,091,880.64Account receivable -overdue cash a/c

After 1999

278,340,071.87 274,829,086.25272,142,073.71Account receivable(Old Margin Loan) – NPL before 1999

Dec. 06 Dec.05Dec. 07

264.96

Mar.07Mar. 08

169.84

Dec.05

247.35

Dec. 06

NCR

Dec. 07

154.41152.34

28

Allowance for doubtful accounts and Bad DebtAllowance for doubtful accounts and Bad Debt

304,918,094

(5,352,808)

0.00

597,953

309,672,949

Mar. 07

298,437,223

(55,271)

0.00

56

Mar.08

5,226,3276,444,717173,481Add Doubtful accounts

307,633,597309,672,949298,492,438Ending balance of period

(31,847,588)(4,405,365)(6,750,872)Less Reversal of doubtful accounts

(9,028,051)0.00(4,603,120)Less Bad debt written-off

343,282,909307,633,597309,672,949Beginning balance of period

Dec.06 Dec.05Dec.07Allowance for doubtful accounts

(4,754,855)

0.00

0.00

(5,352,808)

0.00

597,953

Mar.07

(55,215)

0.00

0.00

(55,271)

0.00

56

(1,847,588)(4,405,365)(6,750,872)Received payment from Doubtful Debt

(30,000,000)0.000.00General provision

(26,563,570)2,039,352(7,103,945)Total

(9,028,051)0.00(4,603,120)Provision for such Bad Debt

9,085,7420.004,076,566Written off Bad Debt

5,226,3276,444,717173,481Provision for new Doubtful Debt

Dec.06 Dec.05 Dec.07Bad Debt and Doubtful Accounts

298,492,438

Mar.08

29

Existing

Clients

Existing

Clients

Business StrategyBusiness Strategy

BROKERAGE

Investment

Banking

Investment

Banking

ResearchResearch

New

Clients

New

Clients

� Respectable research

� Continuous IB

products

� Dedicating marketing

with service minds

� Stable & efficient IT

system & network

� Professional

operation & service

� Convenient location

country-wide

� Prudent risk

management

� Respectable research

� Continuous IB

products

� Dedicating marketing

with service minds

� Stable & efficient IT

system & network

� Professional

operation & service

� Convenient location

country-wide

� Prudent risk

management

30

KESTKEST’’s Visions Vision

� Be the leading broker in Thailand with high standard of research analysis, technology and

services;

� Be a creative and powerful investment bank providing wide-range financial services for

capital/financial market;

� As the slogan “Clients’ benefits are our Goal”.

31

HEAD OFFICE HEAD OFFICE : : The Offices at Central World, 20th-21st Fl.,999/9 Rama I Road, PathumwanBangkok 10330, ThailandTelephone : 0-2658-6300Fax : 0-2658-6301

Customer Service HotlineCustomer Service Hotline ::Telephone : 0-2658-5050Fax : 0-2658-6374Email: [email protected]

KIM ENG SECURITIES KIM ENG SECURITIES ((THAILANDTHAILAND ) ) PLCPLC..

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