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Breadtalk Group: Why This Bread Won't Talk
Breadtalk Group: Why This Bread Won't Talk
Breadtalk Group
(BREAD SP)
Singapore
Consumer Staples
BUY
(New)
Key Data
1.17/0.74
35.4
282
SGD263.6M
Market capitalization
Major shareholders:
-QUEK MENG TONG
34%
19%
11%
4,100
1.00
3,900
0.90
3,700
0.80
3,500
0.70
3,300
0.60
3,100
0.50
2,900
0.40
Oct-11
Apr-12
Oct-12
Apr-13
Oct-13
2,700
2.2
2.2
27.2
3.9
6.9
34.3
Maybank vs Market
Positive
Market Recs
Neutral Negative
na
na
Maybank Consensus
na
% +/-
1.40
na
na
2013 PATMI(SGDm)
12
na
na
2014 PATMI(SGDm)
16
na
na
FY12A
447.3
49.6
12.0
4.3
3.6
1.3
22.0
3.2
1.4
13.6
3.9
4.7
39.0
FY13A
532.7
60.6
12.5
4.4
3.8
1.4
21.2
2.9
1.5
13.0
3.2
5.5
76.3
FY14E
629.8
70.4
15.6
5.5
25.3
1.7
16.9
2.6
1.8
14.5
3.5
4.7
53.9
FY15E
731.4
79.6
19.1
6.8
22.5
2.0
13.8
2.3
2.2
15.7
4.2
3.9
26.7
FY16E
860.6
91.0
25.1
8.9
31.1
2.6
10.5
2.0
2.8
18.0
5.3
3.0
net cash
James Koh
(65) 6432 1431
jameskoh@maybank-ke.com.sg
Juliana Cai
(65) 6432 1417
julianacai@maybank-ke.com.sg
Breadtalk Group
Investment summary
Bread and creativity
BreadTalk Group is a Singapore-based food and beverage (F&B) company
founded by current chairman George Quek in 2000. From first popularising
the artisan bread retail concept, the company has seen its footprint in the
region growing rapidly. Mr Queks initial target of opening 10 BreadTalk
outlets in three years is a far cry from the 800 retail stores in 15 countries
the company now has under its umbrella. Throughout this time, we believe
it has stayed true to its commitment to brand building and creativity.
MINTs
structure
Breadtalk Gr shareholding
oup Limited
67.0
84.1
77.0
(70.0)
Total (SGD m)
402.8
1.40
244.7
1.3
1.2
1.1
1.0
Up stake
to 10.0%
Minor Intl
took initial
5.9%
1,200
Up stake
to 11.0%
1,006
686
800
0.9
0.8
Up
stake to
6.3%
0.7
0.6
Jan-13
Mar-13
400
Up stake
to 8.9%
May-13
Jul-13
Sep-13
Nov-13
Jan-14
278
2008
342
2009
448
2010
824
534
2011
80
70
60
50
40
30
20
10
0
70.4
60.6
27.0
2008
33.0
2009
38.2
41.4
2010
2011
49.6
2012
2013E 2014E
Breadtalk Group
Source: Company
Source: Company
Figure 3: RamenPlay
Source: Company
Source: Company
Singapore
51%
Mainland
China
32%
Hong
Kong
9%
Source: Company, Maybank KE
Breadtalk Group
Figure 6: BreadTalks regional footprint from Asia to the Middle East
Source: Company
Source: Company
Source: Company
Source: Company
Source: Company
Breadtalk Group
Brand footprint to get bigger
Since 2000, BreadTalk has expanded at breakneck pace. Chairman Queks
initial target of opening 10 Breadtalk outlets in three years is a far cry
from the more than 800 retail stores in 15 countries the company now has
under its umbrella. With established brands facilitating franchising, we
believe its brand footprint will just get bigger and bigger.
Source: Company
Main brands
Countries
Main countries
Main region of store growth in past 5 years
Owned bakery
BreadTalk
Icing Room
Toast Box
Thye Moh Chan
Bread Society
BreadTalk
Toast Box
China
Singapore
Thailand
Hong Kong
Malaysia
Franchise
BreadTalk
Restaurant
Din Tai Fung
Carl's Junior (China)
Station Kitchen
Ramen Play
Food court
Food Republic
Da Shi Dai
Da Zhi
BreadTalk
Da Shi Dai
Singapore
China
Thailand
China
Singapore
China
Singapore
China
Indonesia
China
Indonesia
China
Singapore
Hong Kong
Taiwan
Malaysia
Thailand
China
Indonesia
Philippines
China
Kuwait
Bahrain
India
Oman
Jordan
Vietnam
Singapore
Singapore
Singapore
Hong Kong
Breadtalk Group
447.3
300
200
25
365.9
400
212.2
7.8
246.5
11.1
302.9
11.3
11.6
SGD m
30
12.0
60
10
40
2012
20
0
49.7
36.9
13.7
2008
16.7
2009
CAPEX
21.6
2010
24.4
2011
46.8
31.0
2012
107.2
92.6
100
15
2009
2010
2011
Revenue - LHS
Net Profit - RHS
SGD m
120
80
5
2008
20
100
Breadtalk Group
Bottom line will show strength when expansion slows down
Perversely, we think the bottomline will actually show much better growth
when the companys expansion slows down, as D&A will plateau. All said,
we believe the current cost of expansion should not deter investors as the
underlying cash returns still appear to be healthy.
60
60
49.6
50
40
38.2
33.0
41.4
45.5
50
40
27.0
48.9
53.7
39.1
32.6
30
20
10
SGD m
30
7.8
11.1
11.3
11.6
12.0
20
10
0
2008
2009
2010
EBITDA
2011
2012
Net Profit
0
2008
2010
2011
2012
2009
Food Atrium
25%
Owned
Bakery
45%
Restaurants
23%
Franchise
7%
Source: Company, Maybank KE
Breadtalk Group
Figure 18: Bakery (self-owned stores) sales per store p.a
SGD '000
1,150
1,097
1,100
1,050
335
350
300
1,008
1,000
250
1,002
993
984
200
964
953
950
946
900
850
150
100
100
119
19
2008
2009
157
38
181
24
225
44
245
20
286
40
49
50
0
2008
2009
2010
2011
2012
2013F
2014F
2015F
2010
2011
2012
134
120
750
117
100
101
95
99
102
102
100
550
350
250
40
150
20
50
-50
2010
2011
2012
2013F
2014F
2015F
480
384
450
60
2009
600
650
80
2008
BreadTalk
141
182
41
2008
2009
238
56
2010
290
52
2011
120
120
96
94
2012
2013E
2014E
2015E
Breadtalk Group
SGD '000
6,000
5,000
62
50
55
4,596
4,870
3,880
4,000
41
45
3,275
3,665
3,439
3,137
3,001
35
25
21
2,000
15
1,000
3,000
2008
2009
2010
2011
2012
2013F
2014F
2015F
-5
13
2008
2009
2010
26
5
2011
30
12
11
2012
2013E
2014E
2015E
SGD '000
2,800
2,750
2,700
2,650
2,600
2,550
2,500
2,450
2,400
2,723 2,739
2,712
2,657
2,612
2,750
2,702
2,521
2008
2009
2010
2011
85
75
65
55
45
35
25
15
5
-5
81
70
59
47
29
33
4
32
37
5
2008
2009
2010
2011
10
2012
11
11
12
2013E
2014E
2015E
Breadtalk Group
Retail
10%
Hotel & Spa
36%
Restaurant
42%
Mixed use
12%
Source: Company
Source: Company
An acquisitive history
As part of its overseas expansion over the past decade, MINT made
numerous acquisitions that included hotels, resorts and F&B companies.
The Coffee Club in Australia (US$20.0m), Thai Express (US$31.3m) in
Singapore and the Riverside (US$36.5m) casual dining chain in China are all
part of its acquisitive history.
Typically buys
a 50-80%
stake.
Given its vast business empire, it is no surprise that MINT typically holds
50-80% stakes in individual businesses to ensure that management stays on
to drive the business. The exception is BreadTalk, in which it has only an
11% stake. Or is this a precursor to a bigger move on MINTs part?
10
Breadtalk Group
Figure 28: Minor International expansion milestones
Source: Company
Source: Company
The Pizza
Company
27%
1,200
1,043
1,112
1,147
2009
2010
800
The Coffee
Club
2%
Burger King
5%
1,600
Others
8%
Thai Express
18%
Dairy
Queen
10%
Swensen's
14%
Sizzler
16%
400
0
2008
2011
2012
Source: Company
11
Breadtalk Group
BreadTalks China presence is enticing
Mr Heinecke has been public about his belief in the potential of China. In a
television interview in 2012, he said: In China, there are cities the size of
Bangkok, where the people have not even experienced fast food.
Source: Company
12
Breadtalk Group
Valuing BreadTalk
Replacement cost of retail outlets
BreadTalk has built up a sizeable network of retail outlets across the
region. Although it does not own all the outlets, there is still value in the
fit-out, furniture and kitchen equipment. We believe a potential acquirer
that wants to build up such a network of outlets will consider the
replacement cost of doing this from scratch. This is without taking into
account the time-to-market needed. Based on our conservative estimates,
we believe the total replacement value of BreadTalks self-owned outlets
is at least SGD245m (Figure 32).
Figure 32: BreadTalk replacement value of self-owned outlets
Number of outlets
114
0.25
131
0.06
7.9
30
3.00
90.0
Restaurants (Singapore)
11
0.70
7.4
20
4.00
80.0
29
0.80
23.0
1.00
8.0
343
244.7
Brand value
Brand value is an intangible asset, difficult to quantify but a very real
asset no less for consumer companies. It is generally defined as the
additional profit (both present and future discounted value) a company can
generate from the sale of products/services through the use of a brand
name.
SGD77m according to
Brand Finance.
Strategic benefit to
owning real estate.
13
Breadtalk Group
Figure 33: BreadTalk real estate investments
Date
9-Jan-14
Investment
Stake
Cost
(SGD m)
Area
(sqft)
Remark
1-Oct-12
TripleOne Somerset
Phase 2 of Beijing
Tongzhou District
Phase 1 of Beijing
Tongzhou District
20.1
Singapore
Beijing,
China
Beijing,
China
4,327,088
GFA
4-Nov-11
Chijimes
18.0
Singapore
49,794
NLA
Katong 112
14.0
Singapore
207,000
NLA
Total
84.1
15-Apr-13
18-Nov-09
17.5
Location
2.9%
14.5
4.0%
566,000
NLA
4,590,000
GFA
244.7
Singapore HQ (SGD m)
67.0
84.1
77.0
(70.0)
Total (SGD m)
402.8
Figure 32
Reported in AR
Figure 33
According to Brand Finance
1.40
14
Breadtalk Group
Figure 35: Peer comparison
Rating
Food Retail ASEAN
BreadTalk
ABR Holdings
Auric Pacific
Fast Indo
Jollibee Foods
President Bakery
Minor Intl
CentelTB
Average
Food Retail North Asia
Ajisen(China)
CAF De CORAL
Christine
Gourmet Master
Xiao Nan Guo
Average
NR
0.95
NR
0.73
NR
1.30
NR 2,200.00
Buy
167.00
NR
40.75
Buy
21.70
Buy
27.50
Sell
NR
NR
NR
NR
9.05
22.90
0.79
182.50
1.41
Average
FY13
(x)
PE
FY14
(x)
FY15
(x)
PB
ROE
Div Yield
FY13 FY13 FY15
FY14
(x)
(%)
(%)
(%)
NA
NA
NA
NA
191.00
NA
28.30
45.20
209
115
128
361
3,880
558
2,641
1,129
20.2
NA
NA
NA
35.4
NA
19.9
24.1
24.9
17.6
NA
NA
NA
30.8
NA
17.6
18.8
21.2
NA
NA
NA
NA
28.5
NA
16.3
16.0
20.2
NA
NA
NA
NA
18
NA
13
14
15.0
NA
NA
NA
NA
18.2
NA
14.5
15.2
16.0
NA
NA
NA
NA
7.9
NA
3.8
3.5
5.1
NA
NA
NA
NA
21
NA
18
15
17.6
NA
NA
NA
NA
22
NA
18
16
18.4
NA
NA
NA
NA
2.1
NA
1.5
1.1
1.6
5.78
NA
NA
NA
NA
1,271
1,702
103
852
268
34.9
21.8
NA
34.4
24.2
26.8
31.3
18.9
NA
22.5
17.3
19.6
27.0
16.4
NA
16.5
9.8
14.2
33
14
NA
17
8
12.7
15.1
12.1
NA
13.5
7.2
11.0
3.1
3.7
NA
4.2
1.8
3.2
9
17
NA
12
7
12.1
9
18
NA
17
10
15.0
0.9
3.4
NA
2.1
1.7
2.4
26.6
21.8
18.8
16.4
14.0
4.1
14.4
16.0
1.8
Source: Company
Source: Company
Source: Company
Source: Company
15
Breadtalk Group
Industry overview
Bread consumption in China set to rise
China, the worlds second-largest economy, will continue to be a key
market for BreadTalk. Management has set an explicit target to achieve
50% of its group revenue from China (currently 32%) by FY16, with the
bakery business likely making up the bulk of the increase.
We believe there is a strong link between urbanisation and per capita
consumption of bread. This is because bread is a convenient food that
meets the daily dietary demand amid the quickening pace of life. The
average per capita consumption of bread in China is currently 1.3kg a year,
which is low compared with other developed Chinese nations.
100
10
7.2
8
6
91
100
8.1
6.8
51
100
RMB bn
20
80
16
60
12
40
4
2
1.3
20
8
4
0
China
Hong Kong
Japan
Singapore
Urbanisation - RHS
0
2003
2005
2007
2009
Artisan Bread
2011
2013
2015
2017
Packaged Bread
16
Breadtalk Group
Singapore is a mature market
In contrast, Singapore is a mature market for the bakery industry even
though we believe there are still growth opportunities in the artisan bread
category. Overall bread consumption in the island country has reached its
saturation point at about 8.1kg per capita annually. Packaged bread
continues to dominate, with big manufacturers such as Sunshine and
Gardenia enjoying a large market share.
Artisan bread is expected to maintain its share of volume. However, this
market is highly fragmented, with small businesses holding sway. Going
forward, we believe there are opportunities for BreadTalk to grow its
market share at the expense of smaller players.
Figure 41: Singapore expect moderate growth in value of bread market
SGD m
300
250
200
183.7
170.3
176.8
157.5
164.0
80.8
86.1
91.2
96.2
101.5
107.0
2013
2014
2015
2016
2017
2018
149.8
150
100
50
0
Artisan Bread
Packaged Bread
17
Breadtalk Group
366
22.3
19.1
447
533
25
731
630
30
17.7
16.1
18.2
2013E
Revenue - LHS
2014E
2015E
1,197
1,200
15
800
10
600
1,006
824
686
534
152
2011
2012
228
192
181
138
400
200
0
2016E
1,426
1,400
1,000
0
2012
1,600
20
5
2011
SGD m
1000
900
800
700
600
500
400
300
200
100
0
2013E
2014E
2015E
2016E
2012
2013E
2014E
2015E
2016E
Owned bakeries
181
225
245
286
335
391
Franchise
290
384
480
600
720
864
Restaurants
26
30
41
50
62
78
Food atriums
37
47
59
70
81
93
18
Breadtalk Group
Expect margins to improve slightly
We expect overall margins to improve as the contributions from food
courts and restaurants increase. These businesses have enjoyed higher
margins in the past and are rebounding off the lows, due in part to asset
write-offs in FY13. Franchise bakeries are expanding fast and the
franchisee fees will be another contributor to higher margins.
While overall sales per store may post a decline, we would say this is the
result of expanding outside Singapore and not necessarily reflective of
lower margins. Moreover, costs are correspondingly lower outside
Singapore. These improvements should help mitigate the impact of
continued store expansion costs.
25.1
24
25.3
20
16
12
31.1
11.6
12.0
8
4
0
19.1
3.5
2.9
2011
2012
12.5
15.6
2014E
22.5
2015E
30
20
3.9
2013E
%
40
2016E
3.2
2.9
3.0
2.7
2.8
2.6
10
2.4
2.0
2.3
2.5
2.6
2.2
2011
2012
2013E
2014E
2015E
2016E
19
Breadtalk Group
Healthy cash generation to fund capex
BreadTalk has gone from net cash in 2011 to net debt the following year,
with net gearing estimated at 76% as at end-FY13. This situation is largely
the result of its ongoing aggressive store expansion as well as the
substantial investments it made in the past two years: It spent SGD67m on
its new headquarters in Singapore. But this is no cause for alarm as its new
long-term debt is secured against the building.
Operating cash flow remains healthy and should continue to grow from
strength to strength. This would allow the company to continue funding its
store expansion plans. Net of investments, we still expect free cash flow to
stay positive and help pay down debt and dividends. We forecast net
gearing to slowly decline to 27% by FY15E.
107.2
100
92.6
79.2
80
60
40
90.3
71.3
70.1
53.7
48.9
49.7
46.8
48.7
36.9
20
0
2011
2012
2013F
OCF
2014F
2015F
2016F
CAPEX
20
Breadtalk Group
SWOT analysis
21
Breadtalk Group
Key risks
Keen competition in F&B space
The F&B industry is intensely competitive and barriers to entry are low for
new entrants. Customer preferences can shift quickly and sometimes be
seasonal in nature. Failure to innovate and understand demand
preferences would result in brand loyalty diminishing quickly. In turn,
revenue and profit would decline.
22
Breadtalk Group
Key management
George Quek Meng Tong, Chairman
Mr Quek is the founder of BreadTalk Group and continues to drive the
groups strategic direction and development. He started his food and
beverage business in Taiwan in 1982 and returned to Singapore in 1992. In
2000, he started the bakery business and listed it on the Singapore
Exchange in 2003. Among other awards, he was named the Ernst & Young
Entrepreneur of the Year 2006.
23
Breadtalk Group
FYE 31 Dec (SGD m)
Key Metrics
P/E (reported) (x)
Core P/E (x)
Core FD P/E (x)
P/BV (x)
P/NTA (x)
Net dividend yield (%)
FCF yield (%)
EV/EBITDA (x)
EV/EBIT (x)
FY12A
FY13A
FY14E
FY15E
FY16E
21.9
21.9
22.0
3.2
3.2
1.4
nm
4.7
12.4
21.1
21.1
21.2
2.9
2.8
1.5
nm
5.5
16.2
16.8
16.8
16.9
2.6
2.5
1.8
8.2
4.7
13.0
13.7
13.7
13.8
2.3
2.2
2.2
12.3
3.9
10.1
13.7
13.7
13.8
nm
2.2
2.2
0.0
3.0
7.3
Income Statement
Revenue
Gross profit
EBITDA
Depreciation
Amortisation
EBIT
Net interest income /(exp)
Associates & JV
Exceptionals
Other pretax income
Pretax profit
Income tax
Minorities
Reported net profit
Core net profit
447.3
241.4
49.6
(30.4)
(0.6)
18.6
0.3
0.5
0.0
0.0
19.4
(5.8)
(1.6)
12.0
12.0
532.7
285.0
60.6
(39.5)
(0.6)
20.5
(0.9)
1.3
0.0
0.0
20.8
(6.7)
(1.7)
12.5
12.5
629.8
336.9
70.4
(44.4)
(0.7)
25.3
(1.4)
1.5
0.0
0.0
25.4
(8.0)
(1.8)
15.6
15.6
731.4
391.3
79.6
(48.4)
(0.7)
30.5
(1.4)
1.8
0.0
0.0
30.9
(9.7)
(2.0)
19.1
19.1
860.6
460.4
91.0
(52.4)
(0.8)
37.8
(0.3)
2.0
0.0
0.0
39.6
(12.5)
(2.0)
25.1
25.1
Balance Sheet
Cash & Short Term Investments
Property, Plant & Equip (net)
Intangible assets
Investment in Associates & JVs
Other assets
Total assets
ST interest bearing debt
LT interest bearing debt
Other liabilities
Total Liabilities
Shareholders Equity
Minority Interest
Total shareholders equity
64.2
157.4
8.5
4.0
122.2
356.4
45.8
50.6
169.0
265.4
82.6
8.5
91.0
68.0
225.1
8.4
10.3
121.8
433.6
27.6
110.0
194.7
332.3
91.2
10.2
101.4
72.5
230.4
8.7
11.8
132.9
456.3
27.6
100.0
214.6
342.2
102.1
12.0
114.1
69.2
228.8
9.0
13.6
144.3
464.8
10.0
90.0
235.3
335.3
115.6
14.0
129.5
67.2
225.0
9.2
15.6
159.3
476.3
10.0
55.0
262.0
327.0
133.4
16.0
149.3
Cash Flow
Pretax profit
Depreciation & amortisation
Adj net interest (income)/exp
Change in working capital
Cash taxes paid
Other operating cash flow
Cash flow from operations
Capex
Free cash flow
Dividends paid
Equity raised / (purchased)
Change in Debt
OTH investing/financing cash flow
Effect of exch rate changes
Net cash flow
19.4
31.0
0.0
7.4
(5.4)
1.3
53.7
(92.6)
(38.9)
(5.6)
(0.1)
57.7
(35.9)
0.0
(22.8)
20.8
40.2
0.0
16.2
(6.7)
(0.3)
70.1
(107.2)
(37.1)
(3.8)
0.0
41.2
3.5
0.0
3.8
25.4
45.1
0.0
8.9
(8.0)
(0.1)
71.3
(49.7)
21.6
(4.7)
0.0
(10.0)
(2.4)
0.0
4.5
30.9
49.2
0.0
9.3
(9.7)
(0.4)
79.2
(46.8)
32.4
(5.7)
0.0
(27.6)
(2.4)
0.0
(3.3)
39.6
53.2
0.0
11.7
(12.5)
(1.7)
90.3
(48.7)
41.6
(7.3)
0.0
(35.0)
(1.3)
0.0
(2.0)
24
Breadtalk Group
FYE 31 Dec (SGD m)
Key Ratios
Growth ratios (%)
Revenue growth
EBITDA growth
EBIT growth
Pretax growth
Reported net profit growth
Core net profit growth
FY12A
FY13A
FY14E
FY15E
FY16E
22.3
20.0
9.6
13.1
3.5
3.5
19.1
22.2
10.1
7.5
3.9
3.9
18.2
16.1
23.5
22.1
25.3
25.3
16.1
13.1
20.5
21.4
22.5
22.5
17.7
14.3
24.0
28.2
31.1
31.1
11.1
4.2
4.3
30.4
11.4
3.8
3.9
30.6
11.2
4.0
4.0
30.1
10.9
4.2
4.2
29.8
10.6
4.4
4.6
29.8
DuPont analysis
Net profit margin (%)
Revenue/Assets (x)
Assets/Equity (x)
ROAE (%)
ROAA (%)
2.7
1.3
4.3
13.6
3.9
2.3
1.2
4.8
13.0
3.2
2.5
1.4
4.5
14.5
3.5
2.6
1.6
4.0
15.7
4.2
2.9
1.8
3.6
18.0
5.3
na
36.4
na
na
3.3
0.6
nm
32.2
nm
nm
3.3
0.7
nm
32.3
nm
nm
3.3
0.7
nm
32.6
nm
nm
3.4
0.7
nm
32.4
nm
nm
3.4
0.6
1.3
39.0
na
1.9
20.7
32.2
1.3
76.3
22.4
2.3
20.1
69.6
1.3
53.9
18.4
1.8
7.9
55.1
1.4
26.7
21.4
1.3
6.4
30.8
1.5
net cash
nm
0.7
5.7
(2.2)
25
Breadtalk Group
Research Offices
REGIONAL
INDONESIA
WiliantoIEHead of Research
(62) 21 2557 1125
wilianto.ie@maybank-ke.co.id
Strategy
Alexander LATZER
(852) 2268 0647
alexanderlatzer@kimeng.com.hk
Metals & Mining - Regional
RahmiMARINA
(62) 21 2557 1128
rahmi.marina@maybank-ke.co.id
Banking & Finance
Alison FOK
(852) 2268 0630 alisonfok@kimeng.com.hk
Consumer
AurelliaSETIABUDI
(62) 21 2953 0785
aurellia.setiabudi@maybank-ke.co.id
Property
Alexander GARTHOFF
Institutional Product Manager
(852) 2268 0638
alexgarthoff@kimeng.com.hk
ECONOMICS
Suhaimi ILIAS
Chief Economist
Singapore | Malaysia
(603) 2297 8682
suhaimi_ilias@maybank-ib.com
Luz LORENZO
Philippines
(63) 2 849 8836
luz_lorenzo@maybank-atrke.com
Tim LEELAHAPHAN
Thailand
(662) 658 1420 tim.l@maybank-ke.co.th
JUNIMAN
Chief Economist, BII
Indonesia
(62) 21 29228888 ext 29682
Juniman@bankbii.com
Josua PARDEDE
Economist / Industry Analyst, BII
Indonesia
(62) 21 29228888 ext 29695
JPardede@bankbii.com
MALAYSIA
WONG Chew Hann, CA Head of Research
(603) 2297 8686 wchewh@maybank-ib.com
Strategy Construction & Infrastructure
Desmond CHNG, ACA
(603) 2297 8680
desmond.chng@maybank-ib.com
Banking & Finance
LIAW Thong Jung
(603) 2297 8688 tjliaw@maybank-ib.com
Oil & Gas - Regional Shipping
ONG Chee Ting, CA
(603) 2297 8678 ct.ong@maybank-ib.com
Plantations - Regional
Mohshin AZIZ
(603) 2297 8692 mohshin.aziz@maybank-ib.com
Aviation - Regional Petrochem
YIN Shao Yang, CPA
(603) 2297 8916 samuel.y@maybank-ib.com
Gaming Regional Media
TAN Chi Wei, CFA
(603) 2297 8690 chiwei.t@maybank-ib.com
Power Telcos
WONG Wei Sum, CFA
(603) 2297 8679 weisum@maybank-ib.com
Property & REITs
LEE Yen Ling
(603) 2297 8691 lee.yl@maybank-ib.com
Building Materials Glove Producers
CHAI Li Shin
(603) 2297 8684 lishin.c@maybank-ib.com
Plantation Construction & Infrastructure
KANG Chun Ee
(603) 2297 8675 chunee@maybank-ib.com
Consumer
Ivan YAP
(603) 2297 8612 ivan.yap@maybank-ib.com
Automotive
LEE Cheng HooiRegional Chartist
(603) 2297 8694
chenghooi.lee@maybank-ib.com
Tee Sze ChiahHead of Retail Research
(603) 2297 6858 szechiah.t@maybank-ib.com
IsnaputraISKANDAR
(62) 21 2557 1129
isnaputra.iskandar@maybank-ke.co.id
Metals & Mining Cement
PanduANUGRAH
(62) 21 2557 1137
pandu.anugrah@maybank-ke.co.id
Infrastructure Construction Transport
JanniASMAN
(62) 21 2953 0784
janni.asman@maybank-ke.co.id
Cigarette Healthcare Retail
Lucky ARIESANDI,CFA
(62) 21 2557 1127
lucky.ariesandi@maybank-ke.co.id
Telcos Media
Steven ST CHAN
(852) 2268 0645 stevenchan@kimeng.com.hk
Banking & Financials
PHILIPPINES
Warren LAU
(852) 2268 0644
warrenlau@kimeng.com.hk
Technology Regional
William YANG
(852) 2268 0675
williamyang@kimeng.com.hk
Technology Regional
INDIA
Jigar SHAH Head of Research
(91) 22 6623 2601
jigar@maybank-ke.co.in
Oil & Gas Automobile Cement
Anubhav GUPTA
(91) 22 6623 2605
anubhav@maybank-ke.co.in
Metal & Mining Capital Goods Property
Urmil SHAH
(91) 22 6623 2606 urmil@maybank-ke.co.in
Technology Media
SINGAPORE
NG Wee SiangHead of Research
(65) 6432 1467 ngweesiang@maybank-ke.com.sg
Banking & Finance
Gregory YAP
(65) 6432 1450 gyap@maybank-ke.com.sg
SMID Caps Regional
Technology & Manufacturing Telcos
Wilson LIEW
(65) 6432 1454 wilsonliew@maybank-ke.com.sg
Property Developers
ONG Kian Lin
(65) 6432 1470 ongkianlin@maybank-ke.com.sg
S-REITs
James KOH
(65) 6432 1431 jameskoh@maybank-ke.com.sg
Consumer - Regional
YEAK Chee Keong, CFA
(65) 6432 1460
yeakcheekeong@maybank-ke.com.sg
Offshore & Marine
Derrick HENG
(65) 6432 1446 derrickheng@maybank-ke.com.sg
Transport (Land, Shipping & Aviation)
WEI Bin
(65) 6432 1455 weibin@maybank-ke.com.sg
Commodity Logistics S-chips
John CHEONG
(65) 6432 1461 johncheong@maybank-ke.com.sg
Small &Mid Caps Healthcare
Anthony YUNUS
(62) 21 2557 1136
anthony.yunus@maybank-ke.co.id
Consumer Poultry
THAILAND
Maria LAPIZ Head of Institutional Research
Dir (66) 2257 0250 | (66) 2658 6300 ext 1399
Maria.L@maybank-ke.co.th
Consumer / Materials
JesadaTECHAHUSDIN, CFA
(66) 2658 6300 ext 1394
Jesada.T@maybank-ke.co.th
Financial Services
KittisornPRUITIPAT, CFA, FRM
(66) 2658 6300 ext 1395
Kittisorn.P@maybank-ke.co.th
Real Estate
SittichaiDUANGRATTANACHAYA
(66) 2658 6300 ext 1393
Sittichai.D@maybank-ke.co.th
Services Sector
Surachai PRAMUALCHAROENKIT
(66) 2658 6300 ext 1470
Surachai.p@maybank-ke.co.th
Auto Conmat Contractor Steel
SuttatipPEERASUB
(66) 2658 6300 ext 1430
suttatip.p@maybank-ke.co.th
Media Commerce
SutthichaiKUMWORACHAI
(66) 2658 6300 ext 1400
sutthichai.k@maybank-ke.co.th
Energy Petrochem
TermpornTANTIVIVAT
(66) 2658 6300 ext 1520
termporn.t@maybank-ke.co.th
Property
WoraphonWIROONSRI
(66) 2658 6300 ext 1560
woraphon.w@maybank-ke.co.th
Banking & Finance
JaroonpanWATTANAWONG
(66) 2658 6300 ext 1404
jaroonpan.w@maybank-ke.co.th
Transportation Small cap
Chatchai JINDARAT
(66) 2658 6300 ext 1401
chatchai.j@maybank-ke.co.th
Electronics
VIETNAM
LE Hong Lien, ACCA
Head of Institutional Research
(84) 844 55 58 88 x 8181
lien.le@maybank-kimeng.com.vn
Strategy Consumer Diversified Utilities
THAI QuangTrung, CFA, Deputy Manager,
Institutional Research
(84) 844 55 58 88 x 8180 trung.thai@maybankkimeng.com.vn
Real Estate Construction Materials
TRUONG Thanh Hang
(84) 844 55 58 88 x 8085 hang.truong@maybankkimeng.com.vn
Consumer
Le Nguyen NhatChuyen
(84) 844 55 58 88 x 8082 chuyen.le@maybankkimeng.com.vn
Oil & Gas
NGUYEN ThiNganTuyen, Head of Retail Research
(84) 8 44 555 888 x 8081
tuyen.nguyen@maybank-kimeng.com.vn
Food & Beverage Oil&Gas Banking
NGUYEN TrungHoa, Dy Head of Retail Research
(84) 8 44 555 888 x 8088
hoa.nguyen@maybank-kimeng.com.vn
Macro Steel Real estate
TRINH Thi Ngoc Diep
(84) 4 44 555 888 x 8208
diep.trinh@maybank-kimeng.com.vn
Technology Utilities Construction
TRUONG QuangBinh
(84) 4 44 555 888 x 8087
binh.truong@maybank-kimeng.com.vn
Rubber plantation Tyres and Tubes Oil&Gas
PHAM NhatBich
(84) 8 44 555 888 x 8083
bich.pham@maybank-kimeng.com.vn
Consumer Manufacturing Fishery
NGUYEN Thi Sony TraMi
(84) 8 44 555 888 x 8084
mi.nguyen@maybank-kimeng.com.vn
Port operation Pharmaceutical
Food & Beverage
26
Breadtalk Group
APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES
DISCLAIMERS
This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as
an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate
and that each securitys price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental
ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and
volume-related information extracted from the relevant jurisdictions stock exchange in the equity analysis. Accordingly, investors returns may be less than
the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment
advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read
this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment
strategies discussed or recommended in this report.
The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank
Investment Bank Berhad, its subsidiary and affiliates (collectively, MKE) and consequently no representation is made as to the accuracy or completeness of
this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees
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This report is prepared for the use of MKEs clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in
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Malaysia
Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental
ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia
Securities Berhad in the equity analysis.
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KERPL) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact
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Thailand
The disclosure of the survey result of the Thai Institute of Directors Association (IOD) regarding corporate governance is made pursuant to the policy of the
Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand
and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the
perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the
Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. Maybank Kim Eng Securities (Thailand) Public
Company Limited (MBKET) does not confirm nor certify the accuracy of such survey result.
Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of MBKET.
MBKET accepts no liability whatsoever for the actions of third parties in this respect.
US
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This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You
should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you under relevant
legislation and regulations.
UK
This document is being distributed by Maybank Kim Eng Securities (London) Ltd (Maybank KESL) which is authorized and regulated, by the Financial Services
Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial
Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any
responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as
constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.
27
Breadtalk Group
DISCLOSURES
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Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued and
distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim Eng
Securities (PTKES) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand: MBKET (Reg.
No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission.
Philippines:Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange
Commission. Vietnam: Maybank Kim Eng Securities JSC (License Number: 71/UBCK-GP) is licensed under the State Securities Commission of Vietnam.Hong
Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (KESI) is a
participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay Stock Exchange (Reg. No. INF/INB 011452431) and is
regulated by Securities and Exchange Board of India. KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) US: Maybank
KESUSA is a member of/ and is authorized and regulated by the FINRA Broker ID 27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by
the Financial Services Authority.
Disclosure of Interest
Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further
act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment
banking services, advisory and other services for or relating to those companies.
Singapore: As of 27 January 2014, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report.
Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the
research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected
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Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph
16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
As of 27 January 2014, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.
MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in
issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or
investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the
companies covered in this report.
OTHERS
Analyst Certification of Independence
The views expressed in this research report accurately reflect the analysts personal views about any and all of the subject securities or issuers; and no part of
the research analysts compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.
Reminder
Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable
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No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.
Definition of Ratings
Maybank Kim Eng Research uses the following rating system
BUY
Return is expected to be above 10% in the next 12 months (excluding dividends)
HOLD
Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends)
SELL
Return is expected to be below -10% in the next 12 months (excluding dividends)
Applicability of Ratings
The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only
applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment
ratings as we do not actively follow developments in these companies.
28
Breadtalk Group
Malaysia
Maybank Investment Bank Berhad
(A Participating Organisation of
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www.maybank-ke.com | www.maybank-keresearch.com
29