MaybankKimEng ThaiMarketCompass-ThaiGreenCorpDay Mar 29 2021

March 29, 2021
Thai Market Compass

Thai Green Corp Day
Broader ESG adherence gains momentum in Thailand Analysts

The SET incorporated Thai Sustainability Investment (THSI) in 2015 that Maria Lapiz
includes listed corporates embracing and pursuing sustainability in their (66) 2257 0250
growth agenda. The SETHI Index is built upon THSI. The SET uses three maria.l@maybank-ke.co.th
indexers and their respective methodologies for scoring: S&P Dow Jones
CORPORATE DAY
(Robeco Sam Methodology), MSCI (MSCI ESG Research) and FTSE Russell. Kaushal Ladha, CFA
The SETHI Index has 63 corporates, 21 of them are included in the Dow (66) 2658 5000 ext 1392
Jones Sustainability Index (DJSI), 42 are in the MSCI and 29 companies
Kaushal.l@maybank-ke.co.th
have been ranked in S&P’s The Sustainability Yearbook 2021 putting
Thailand in the 7th spot globally behind the US, Japan, South Korea, the
UK, France and Taiwan. Our first Thai Green Day showcased eight
companies that have high stature in both the DJSI and MSCI: ADVANC, EA, SET performance
(x)
GPSC, HMPRO, PTTGC, SCC, DTAC and TU. SCC, PTTGC and TU made it to 25 23.6x
S&P’s Gold Class category (news here). 23 +2SD: 22.5x
21
+1SD: 19.2x
Overall operating outlook is improving 19
17 Mean: 15.8x
SCC and PTTGC are riding the crest of petrochem spreads thanks to 15
climate disruption in the US (polar vortex min Feb-21) and recovery in 13
-1SD: 12.5x
global manufacturing activity. Meanwhile, TU is coming off the situation

Thailand
11 -2SD: 9.2x
of high demand due to pantry-loading caused by Covid-19 lockdowns and 9

7
mobility restrictions. HMPRO and ADVANC are still navigating the 5
pandemic-induced slowdown though DTAC is beginning to see marginal
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-11
Jan-20
Jan-21
uptick for its services. We expect these three to see sequential
improvement in operating outlook, especially when Thailand re-opens its SET - Fwd PE
borders. EA remains focused on RE and is making significant strides in EV. Share price performance
Thailand has just disclosed its ambitious plan to be an EV manufacturing 70
2020 YTD MTD
%
hub in southeast Asia. 60
60
50
ESG should be highlighted in corporate presentations 40
40
Sustainalytics ranks TU and SCC as having high ESG risks but with 30 23
momentum falling. However, these two companies made it to the Gold

20 13
10 8 8 9
10 5 7 4 7 5
3 1 3 4
Class category of the S&P Sustainability Yearbook 2021 based on the
3 0
0
assessment of 7,000 companies across 40 countries. In the meantime, -10 (1) (3) (4) (2)
(8)
hybrid refiner & petrochemical producer PTTGC is ranked low risk along -20
(17)
(14) (14)
with home improvement retailer HMPRO, while mobile phone operators -30
ADVANC EA GPSC HMPRO PTTGC SCC DTAC TU SET index
ADVANC and DTAC are rated medium risk. This lack of coherent outcomes
from various methodologies argue that there is value for bringing up ESG Source: Maybank Kim Eng
in management’s conversations with investors.
Growing Sustainability Finance lowers funding costs

Many companies embracing ESG are beginning to see benefits by way of
cost savings and margins. However, the area if finance is the most
promising as a way to advance ESG agenda and bring in financial benefits
as well. EA has tapped Green Loans facility domestically. However, TU is
setting a good precedent with its first Sustainability Linked Loans (SLL)
issued overseas at competitive rates with a rebate option. SLL is the new
element in Sustainability Finance accessible to companies with strong
ESG agenda.
THIS REPORT HAS BEEN PREPARED BY MAYBANK KIM ENG SECURITIES (THAILAND) PCL
SEE PAGE 37 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
Corporate Day
Table of Contents
Highlights ................................................................................................................................... 3
Takeaways from the meeting ............................................................................................................ 5
Companies
Advanced Info Service Plc (ADVANC TB) ................................................................................................ 5

Energy Absolute Plc (EA TB) .............................................................................................................. 9
Global Power Synergy Plc (GPSC TB) .................................................................................................... 12
Home Product Center Plc (HMPRO TB) ................................................................................................. 16
PTT Global Chemical Plc (PTTGC TB) ................................................................................................... 20
Siam Cement Plc (SCC TB) ................................................................................................................ 24
Total Access Communication Plc (DTAC TB) ........................................................................................... 28
Thai Union Group Plc (TU TB) ............................................................................................................ 32
Definition of terms
SET – Stock Exchange of Thailand
ESG – Environment, Social and Governance
RE – renewable energy
EV – electric vehicle
KPI – Key Performance Indicator
AIS – is the brand name of ADVANC’ services derived from Advanced Info
Service
IoT – Internet of things
EEC – Eastern Economic Corridor
GHG – greenhouse gas
SBU – strategic business unit
MwHr – megawatt hour
CO2 – carbon dioxide
SPP – Small Power Producer
Ft – fuel transfer
IU – industrial user
March 29, 2021 2

Corporate Day
Highlights
The SET actively promotes companies participating in international efforts to
encourage sustainability and ESG. Its commitment plays a critical role in the
adoption of ESG principles among companies in Thailand.
Fig 1: SET’s actively pushes the ESG agenda in DJSI… … and MSCI; TH has the highest number of
constituents in the MSCI Standard Index
Source: SET Source: SET
ESG tracker Sustainalytics indicates that the majority of the companies fall into
the medium-risk profile. Surprisingly, our small sample of eight corporates that
attended the Thai Green Corp Day also exhibits the same risk distribution as that
of Sustainalytics.
Fig 2: Sustainalytics universe distribution –risk profile Fig 3: Thai Green Corp participants – distribution
Source: Sustainalytics Source: Sustainalytics, MKE-ISR
March 29, 2021 3

Corporate Day
Fig 4: Thai Green Corp Participants - ESG ranking based on Sustainalytics

Companies Bloomberg Business Score Rating Momentum
Advanced Info Service ADVANC TB Mobile phone services 23.1 Medium -2.4
Energy Absolute EA TB Renewable energy 45.8 Severe 0.3
Global Power Synergy GPSC TB Conventional & renewable energy 29.3 Medium NA
PTT Global Chemicals PTTGC TB Hybrid refinery & petrochemicals 19 Low -1.1
Home Product Center HMPRO TB Home improvement retailing 15.7 Low -0.6
Siam Cement SCC TB Industrial conglomerate - ConsMat, Cement, Packaging 36.5 High -0.1
Thai Union Group TU TB Seafood-based processor 38.2 High -0.7
Total Access Communication DTAC TB Mobile phone services 26.5 Medium NA
Sustainalytics Methodology
Scores Rating
0-10 Negligible risk
10-20 Low risk
20-30 Medium risk
30-40 High risk
Negative momentum Risk is coming down
Source: Sustainalytics
TU is the first Thai corporate that has tapped SLL, the newest category in
Sustainable Financing. SLL differs from other Sustainable Finance schemes
because it is linked to a set of KPIs and has built in additional incentives that
matter to the corporates’ value creation. We expect more to follow and this
avenue will help advance ESG agenda especially when it becomes embed into
financial planning.
Fig 5: Sustainable Finance - increased considerably in 2020 driven by Sustainability Bonds, Green Bonds, Social Bonds and
Sustainability Linked Loans
Source: TU presentation, Bloomberg
March 29, 2021 4

Corporate Day
Takeaways from the meeting
Advanced Info Service Plc (ADVANC TB)
Presenters:
Ms Nattiya Poapongsakorn- Head of IR & Compliance
Mr.Wacharapong Leethochawalit, Investor Relations Manager
Ms.Yada Keeratipongpakdee - IR Specialist
Rating: BUY
Current price: THB173.5
Target price: THB234.0
Key Takeaways:
Operating guidance for 2021 maintained at low single digit growth in service
revenues and EBITDA, a recovery from the 5.1% drop in service revenues (-6.5% in
mobile) and 2.1% decline in EBITDA due to network investment. The 2021 capex
plan ranges from THB25-30b, lower than the THB35b spent in 2020. Investment
will focus on enhancing 4G experience and building out 5G that paced according
to emergence of case use. At the end of 2020, ADVANC had 41.4m mobile phone
subscribers, 239k are in 5G. The 5G subscribers generate close to THB600/mth
ARPU, 10-15% higher than post-paid ARPU but this was too small to lift the
overall ARPU that by 4Q20 posted 9.4% YoY decline in postpaid and 11% YoY fall
in prepaid. Blended ARPU including the 239k 5G subscribers was THB234/mth,
down 6.8% YoY.
5G is the focus in 2021. By the end of Feb-21, the 5G subs base reached 400k
and ADVANC is confident that it can reach the 1.0m subscriber target by the end
of the year. As of Dec-20 it already had 5,400 cell sites and has achieved 95%
coverage in the EEC area, a critical KPI tied to the spectrum payment conditions
for the 2600Mz. All things equal and assuming that 5G ARPU is about
THB600/mth, this has the potential to raise blended ARPU by 4%. The user case
for 5G remains narrow and mostly in product/services that are already well-
served by 4G and 4.5G. However, AIS will continue to nurture high-ARPU
customers that are looking for faster services and enhanced AR/VR experience
and pick regions that are of high potential. For example, after the EEC, AIS is not
densifying 5G in Khon Kaen province, one of the important provinces in the
northeast.
Competition overall remains intense as subscribers continue to optimize use of

services due to weak income. Competition in 5G could also intensify as the pool
of target customers remains narrow and other operators aim to tap the same
target number of subscribers in the next 12 months. There is risk that the 10-15%
ARPU uplift could be watered down by competitive pricing.
March 29, 2021 5

Corporate Day
Digital innovation has been identified as the most material variable to both
ADVANC stakeholders and operations. Cyber wellness and online safety, the
aspect identified as most visible and important social factor is ranked 5th in the
materiality index – more of a reputational risk. Digital innovation, however, is
tied to its ability to be an effective enabler of economic change and add value. It
has well-laid out processes to incubate new ideas and applications under the AIS
Open Innovation framework. As of 2020 it had 80 partners that between them
have launched 39 new products. ADVANC hopes to add on THB500m of revenues
from the digital innovation efforts by 2023, up from THB76m in 2020.
Cyber security and data privacy is the second most material factor to ADVANC.
With the enactment of the Private Data Protection Act, it will step up to become
a leading provider of cyber security services and cyber security operation center
for enterprise customers. Data protection is a fairly new concept in Thailand and
corporates have to invest not only for the hardware but also for the processes,
and AIS intends to become the service provider of choice when it comes to cyber
security.
Recommendation: We have a BUY on ADVANC with a DCF-based target of

THB234 at 7% WACC and 1% growth. Despite resilient cashflow generation and
decent dividend yield, the stock has been a chronic underperformer due to
concerns about high 5G capex and low monetization opportunities.
Fig 6: AIS Materiality matrix Fig 7: 2020 highlights
Source: Company Source: Company
March 29, 2021 6

Corporate Day
Fig 8: Identified risks and opportunities under the ESG framework
Source: Company
Fig 9: ADVANC’s financial summary Fig 10 : Share price performance

FYE Dec (THB m) FY19A FY20A FY21E FY22E FY23E 240 170
Revenue 180,894 172,890 171,275 176,413 183,095 230 160
EBITDA 78,987 90,034 77,258 78,980 80,607 220 150
Core net profit 31,190 27,434 28,624 30,601 31,428 210 140
Core EPS (THB) 10.49 9.23 9.63 10.29 10.57 200 130
Core EPS growth (%) 5.1 (12.0) 4.3 6.9 2.7 190 120
Net DPS (THB) 7.34 6.92 6.71 7.17 7.37 180 110
Core P/E (x) 20.3 19.1 18.0 16.9 16.4 170 100
P/BV (x) 9.1 6.9 6.2 5.5 4.9 160 90
Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
Net dividend yield (%) 3.4 3.9 3.9 4.1 4.2
ROAE (%) 49.2 37.9 36.0 34.4 31.6 ADVANC - (LHS, THB) ADVANC / Stock Exchange of Thai Index - (RHS, %)
ROAA (%) 10.8 8.6 8.4 9.3 9.6

EV/EBITDA (x) 9.0 6.7 7.6 7.3 6.9
-1M -3M -12M
Net gearing (%) (incl perps) 107.2 105.2 85.9 67.1 39.7 Absolute (%) 5 (3) (14)
Consensus net profit - - 27,409 29,307 na Relative to index (%) (0) (9) (40)
MKE vs. Consensus (%) - - 4.4 4.4 na
Source: FactSet
Source: Company, Maybank Kim Eng Source: SET, Maybank Kim Eng
March 29, 2021 7

Corporate Day
Advanced Info Service (ADVANC TB) maria.l@maybank-ke.co.th
Business Model & Industry Issues

 Mobile service is an enabler of many economic activities including e-commerce, mobile banking, mobile money, cloud
services, IoT solutions and more. Digital innovations have high priority in its materiality matrix. However, mobile service is
also an enabler of activities that can cause social problems and social ills such as gambling, pornography and cyberbullying.
Data privacy and cyber security is second highest priority in its materiality matrix.
 The entry of 5G services promises new revenue streams if scalable user cases are found, it can also scale up potential
social risk especially on vices. Social responsibility will take on more meaning beyond CSR projects such as donations,
freebies, etc. As the industry leader, ADVANC must take a lead in setting the best practice cyber wellness and online safety.
 Mobile phone services providers are neither direct major polluters nor highly extractive on natural resources. The
important environmental issues to address are the indirect consequence of mounting e-waste as well as the health hazard
posed by the EMS especially amidst increasing density of telco towers & base stations. However, as these are all involving
equipment manufacturers and vendors, these matters are ranked low in its materiality matrix.
Material E issues Key G metrics and issues

 ADVANC aims to improve its energy efficiency and reduce  ADVANC’s board and management has 18 members,
greenhouse gas emissions across all its network assets and four are women. The 11-member board has only one
business activities. Enhanced energy efficiency woman. There are four independent directors and four
programmes resulted in cutting GHG emissions by 10,553 non-executive directors. Total board compensation was
tCO2e/yr. Installed solar panels has reached 3000 base THB61.53m, or 0.19% of reported profits.
stations producing 4312MwHr of power. In 2020 four data  The total staff compensation was THB7b for 2019, or
centres will complete solar panel installation that can 22% of the reported net profit.
produce 6.32MwHr of power or equivalent to 6340tCO2e.  ADAVNC’s auditor for the past five years has been
 In 2019 paper consumption was reduced by 3.2m sheets. In Deloitte Touche Tohmatsu Jaiyos Audit.
addition 4.2m subscribers have moved to e-bills replacing  For data security ADVANC has received certifications
bills by post. The 2020 target is to reach 6.8m subscribers. from: 1) ISO27001 Information Security Mgt Systems
 ADVANC has rolled out e-waste collection and recycling since 2015; 2) CSA STAR (Cloud Security Alliance) Self-
programmes and aims to collect/recycle up to 3.0m pieces Assessment since 2016; and 3) PCI DSS (Payment Card
of e-waste by 2022. In 2019, it collected 2,319 pcs Industry Data Security Standard) since 2017.
weighing 507.69 kgs; for e-waste it handled 803 tonnes,  In 2019, the Digital Quotient Promotion programme was
14% of which were recycled. Currently, it is working with rolled out. This measure the digital proficiency of 8-12
82 organizations to increase e-waste drop off locations to years old using metrics recommended by WEF, OECD
2,000. and IEEE and applied in 110 countries. In 2019 the first
year of the rollout the program was implemented in 24
schools with 3,100 students participating.
Material S issues  The AIS Secure Net (network protector programme)
assists customers at risk of cyber threats. In 2019, the
 Digital innovation will be pursued with 1,000 partners to 1st year of launch, it had 47,600 users and family link
sell new products and services to the market. As of 2019 of more than 5.6m users.
there were 89 partners that have launched 37 new  Like other operators, ADVANC has several disputes
products and R&D spending reached THB159m. pending from the concessionary era covering 1990-
 Pursuit of digital innovations requires qualified staff. 2018. Losing any of the cases could have a negative
ADVANC aims to achieve 80% retention of talent pool by impact on the enterprise.
2022, 80% of talents for critical roles are to undergo “new
ability” training.
 The male-female split of ADVANC’s workforce was 40%/60%
in 2019. At the top management, 65% are male but in
middle management and operations level females account
for 64%.
March 29, 2021 8

Corporate Day
Energy Absolute Plc (EA TB)

Presenters:
Mr. Vasu Klomkliang, SVP, Strategy Development & Investment Planning
Mr. Sarut Reoraksa IR Manager
Ms. Omsin Siri, Vice President
Ms. Chalida Sathitvudh IR Supervisor
Rating: BUY
Key Takeaways:
Transition from simple power producer to an energy service provider.

Historically, EA operated in biofuel production and renewable power. However, it
has strategically positioned itself in various aspects of the supply chain of the
upcoming electrification. Since 2016, EA expanded into energy storage and
subsequently into EV charging stations, and EV (cars, buses and ferries). As of
2020, power and biodiesel accounted for 62% and 36% of its revenue, however
the EV ecosystem (other businesses) will quickly become a key earnings driver in
the next 5-10 years following COD and scaling up of projects.
Focus on hybrid wind and solar projects. EA’s renewable capacity has surged
from 8MW to 644MW in the past few years, focused on wind and solar projects in
Thailand. Management guided that conventional renewable projects no longer
meet their internal hurdle rate of double digits, therefore they see opportunity
in hybrid wind and solar projects, a combination of storage and other generation
sources to mitigate the intermittent nature of renewables. EA has not set any
renewable targets, however they are open to explore interesting opportunities
on a project-by-project basis.
Energy storage system long-term target of 50GwHr. EA acquired 70% in

Taiwan’s Amita (battery manufacturer) in 2017. Amita Taiwan lacked necessary
capital and ways to properly market and distribute. In collaboration with Growatt
(power control system) and ITRI (non-profit R&D), Amita will co-develop the
technology of battery (solid state). EA’s 1GWh (phase 1) battery storage will COD
in 1Q21. Production in phase 1 will serve power plants to stabilize production and
distribution. Phase 2 target is 4GW as management believes adoption of new
technology will be rapid and demand will surge.
Bottleneck for energy storage system is rare earth metals. China accounts for
the vast majority of rare-earth production worldwide. The next 2 big producers
are the US and Australia. Management has guided that there should be no
concerns on sourcing the necessary metals to support current capacity targets.
However, once EA scales up its production, it will enter long-term contracts to
secure supply. From a sustainability perspective, although rare earth metals are
essential to a wide array of green technologies, common risks revolving around
production of these earth metals is illegal mining, labour violation and worker
security issues, etc.
2021 capex focused on EV ecosystem and power. Management has guided

THB6.1b in capex for 2021, of which power will account for 46% (improve
performance of solar and invest in new projects), EV business 25% (bus and
ferry), battery business 20% (1Q21 production), and charging stations 7% (2000
outlets installed). Capex in the power segment remains high as it is the key
earnings driver for the business. However, in the future bias will be on
developing the EV ecosystem. In terms of product development, EA has produced
5,000 EV cars per year (local) since 2018. It will produce 3,000 E-buses per year
launching in 1Q21, and 27 E-ferries per year with full service by 2Q21.
March 29, 2021 9
Corporate Day
Recommendation: We have a BUY on EA with a TP of THB47.5, pegged to 25.5x

FY21 PE, its 3-year average. The share price has rallied strongly since the
beginning of the year and it is now about 25% above our fair value. We will revisit
our assumptions following the Ministry of Industry’s announcement of EV vehicles
production targets and as well as the performance of its 1GW battery
manufacturing plant that COD in 2Q21.
Fig 11: EA has transitioned from a power producer to energy Fig 12: Next phase of growth for EA will be in building its
services energy system ecosystem
Fig 13: The EV vehicle production and use target of Thailand
'000units EV production and use targets

10,000 9,330
8,625 8750
9,000
8,000
7,000 6,400
6,000
5,000
4,000 3,133 3200
3,000 2,935
2,050
2,000
620 458 622 430
1,000 400 31 156 402 31 160
0
2025 2030 2035 2025 2030 2035
Production Use
Cars/pickup trucks Motorbikes Buses/trucks
Source: Ministry of Industry
Fig 14: EA’s financial summary Fig 15 : Share price performance

FYE Dec (THB m) FY19A FY20A FY21E FY22E FY23E 70.0 170
Revenue 14,887 17,080 15,933 18,586 18,792 65.0 160
EBITDA 9,774 9,380 10,452 10,584 10,236 60.0 150
Core net profit 5,922 5,127 6,389 6,620 6,354 55.0 140
Net profit 5,922 5,195 6,389 6,620 6,354 50.0 130
Core EPS (THB) 1.59 1.37 1.71 1.77 1.70 45.0 120
Core EPS growth (%) 44.9 (13.4) 24.6 3.6 (4.0) 40.0 110
Net DPS (THB) 0.30 0.30 0.34 0.35 0.34 35.0 100
Core P/E (x) 27.6 35.8 35.5 34.2 35.7 30.0 90
P/BV (x) 7.0 6.6 6.8 5.9 5.2 25.0 80
Net dividend yield (%) 0.7 0.6 0.6 0.6 0.6 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
ROAE (%) 28.5 20.3 21.0 18.5 15.5 Energy Absolute - (LHS, THB)
Energy Absolute / Stock Exchange of Thai Index - (RHS, %)
ROAA (%) 9.2 6.9 8.3 8.6 8.1
EV/EBITDA (x) 20.1 24.1 25.2 24.5 24.9 -1M -3M -12M
Net gearing (%) (incl perps) 128.3 135.4 100.5 76.4 58.1 Absolute (%) (3) 35 81
Consensus net profit - - 6,258 7,211 9,475
Relative to index (%) (8) 27 26
MKE vs. Consensus (%) - - 2.1 (8.2) (32.9)
Source: FactSet
Source: Company; Maybank
March 29, 2021 10

Corporate Day
Energy Absolute (EA TB) jaroonpan.w@maybank-ke.co.th

 EA’s businesses are “green” by nature and support the push towards a more sustainable future. Operations range from biodiesel
production (800,000 litres/day), 664MW of renewable capacity, 1GW energy storage system, manufacturing of EV vehicles, buses and
ferries as well as EV charging stations.
 EA’s strategy moving forward will be geared towards building the energy ecosystem. We are constructive of this direction as not only will
it allow EA to be an integral player in the energy transition but also this is a high-growth and profitable business. Electrification has a long
runway of growth. Thailand aims to produce 1m EV by 2025.
 EA is the leading local Thai player in developing energy storage system in terms of capacity and time to market but regional competition
remains high. EA is developing battery in collaboration with Growatt (power control system) and ITRI (non- profit R&D).
 EA’s push into the energy system space has allowed it to become more project selective as returns on renewables (its original business)
have started to shrink will remain pressured given increasing competition in the region.

 In 2019, direct and indirect GHG emissions for the group was  EA has 11 board members, of which five are independent. There
55,083t CO2e and GHG emissions intensity was 3.68t CO2e, are no women on the board.
increasing from 30,709t CO2e and 2.46t CO2e in 2018.
 The independent directors lead the Audit, Risk Management,
Majority of the emissions are from the biofuel production.
 664MW of renewable capacity with electricity generation of Nomination, Corporate Governance, and Remuneration
1,389,020 MWh in 2019. Amount of GHG reduced from committees.
electricity generation of EA solar and EA wind is 581,633t  The largest shareholder is Mr. Somphote Ahunai with 23% in
CO2e. shareholding.
 EA has been approved for listing in Thailand’s voluntary
 Board of director compensation for FY20 was THB24m or 0.48% of
emission reduction programme.
 In 2019, EA kicked off the long-term plan to restore the FY20 NPAT.
ecosystem in biodiversity areas by starting in Lampang  PwC is the auditor of EA.
province that experienced the burning of forests and trees  Survey conducted by corporate governance report of Thai Listed
around power plants each year. The project is named “Wet companies for 2019 gave the score of 91/100 to EA (excellent
Fire Break”.
rating). This score has continued to increase YoY since 2017.
 In 2019, the Company received the 3Rs awards and 3Rs+
awards from the Ministry of Industry (Silver medal) by  EA has implemented the necessary good corporate governance
participating in the project to develop the potential of using under the following areas 1) responsibility of boards 2) rights of
waste from biodiesel production. shareholders 3) equitable treatment of shareholders 4) role of
 EA reusing of water for 2017-2019 remains below goal of 70%. stakeholders and 5) disclosure and transparency. The company has
In 2019 it was 60%.
set internal metrics, targets and processes to rectify
 EA issued its first green bond in 2019 of THB10b. Proceeds
were allocated to the Hanuman 260MW wind project. issues/concerns.
 EA has also received a THB1.5b green loan from ADB to  EA has won several relevant awards: 2019 most innovative
finance renewable energy projects and EV charging network. renewable energy company – Thailand from Business Tabloid, 2019
This loan is Climate Bond certified. Asia Corporate Excellence & Sustainability award by ACES, 2019
Wind Power project of the year - Thailand by Asian Awards,
Material S issues
 511 employees, of which 24% are female
 Average training hours has increased YoY, from
8.62hrs/y/person in 2017 to 11.66hrs/y/person in 2019. The
target is 12hrs/y/person.
 In 2019, 8 employees were under the Executive program for
future leaders.
 In 2019, there were zero work accidents and zero
occupational illness.
 In 2015, an operating unit has been created named “EASE” or
EA Social Enterprise to contribute to the society on
sustainable self-reliance. There are three themes:
consumers, farmers and earth. In 2019, the project sent
higher volume of organic products to the market consisting of
vegetables and rice of more than 10.5 tons, +23% YoY. Under
the program, the average farmer income increased to
THB373/day, +9% YoY and 18% higher than minimum daily
wage.
 No community complaints in 2019.
March 29, 2021 11

Corporate Day
Global Power Synergy Plc (GPSC TB)
Presenters:
Mr. Thitipong Jurapornsiridee, CFO
Mrs. Sirobon Boontaworn- SVP, Corporate Finance
Rating: BUY
Key Takeaways:
Fuel mix in the future – GPSC’s fuel mix stands at 67% gas, 16% coal, 11%
renewable and 5% petroleum pitch. Management shared going forward it will no
longer be investing in coal-based projects. In terms of future growth, it will be
largely focused on gas projects (replacement projects) and renewables (solar +
wind). replacement for SPP whose power purchase agreement has matured– Glow
Energy Phase 2 (192MW) will COD in 4Q22. GPSC targets renewable capacity at
30% by 2025 from the current 11-12%.
Renewable strategy – Global Renewable Power (GRP), a 50/50 joint venture

between GPSC and PTT, will be the vehicle for GPSC to achieve 1GWe renewable
target by 2025 (or 30%). PTT has announced an ambitious target of 8GW of
renewable energy by 2030. GRP will focus on projects outside of Thailand, while
any projects within Thailand will be under GPSC. The joint venture will allow
GPSC to leverage on PTT’s network, get deal access and support in funding.
Management has highlighted Myanmar, India, Taiwan, Vietnam and China as
interesting markets. The IRR for renewable projects is 8-10%, but management
incorporates various factors such as ease of doing business, government support
and country risk etc as part of their evaluation.
Axxiva M&A – GPSC acquired 11% of China-based Anhui Axxiva New Energy
Technology for THB500m. Proceeds will be used to fund phase 1 of Axxiva’s semi-
solid battery (24M) manufacturing plant with a production capacity of 1GW. COD
is expected in 2Q22. Axxiva has a secure off-taker, China’s EV car manufacturer,
Chery. The venture is beneficial for both as Axxiva can leverage on GPSC’s
experience in its 30MwHr battery pilot project (COD in 2Q21), while GPSC can
gain exposure to China’s EV market and raw material procurement. Management
highlighted that it’s not looking at energy storage system as a standalone
business but as a part of the overall energy ecosystem that it wants to capture.
IU outlook – Management has guided IU FY21 volumes will improve by 4% YoY.

This is inclusive of both IU recovery (as Covid19 impact eases) and securing new
clients. GPSC has a competitive advantage in the IU segment and can be
considered to have captive clients (companies under PTT group). Petrochemicals
account for a large percentage of its IU segment. 2Q21 will see reduced power
demand due to plant turnaround season. GPSC will secure contracts from
PTTGC’s new plants - Olefin retrofit, PO/Polyol that have a COD in FY21.
March 29, 2021 12

Corporate Day
Gas and coal outlook – Management guided that FY21 gas prices on average will
be 8-9% lower YoY, while coal prices will be slightly higher. Gas prices bottomed
in 4Q20 at THB215/mmbtu and are expected to continue to remain low in 1H21,
albeit slightly higher. Margins on its IU segment (SPP based) will improve YoY as
drop in Ft prices (-0.1243 THB/KwHr) have lagged that of gas prices. There is risk
gas prices rise faster than expected in 2H21 as crude surges; 4Q20 onwards has
beat expectations (gas lags crude 6-12months). Higher coal prices will not have
an impact as it falls under a cost-pass through mechanism under the IPP scheme.
Management has guided it will continue to evaluate the merits of securing a LNG
shipping licence given volatility in prices.
Recommendation: Maintain BUY and DCF-based TP of THB100 (7.7% WACC, 2%

long-term growth). We remain constructive as we see several tailwinds for GPSC
in FY21: 1) industrial recovery; 2) margin expansion as gas price drop in FY21
leads Ft tariff; 3) upside risk of renewable capacity addition. The latest stake in
Axxiva is overall positive and signals GPSC’s commitment to grow this space.
Given the push towards integrating ESG as part of the investment process, the
latest development should further enhance GPSC’s image.
Fig 16: GPSC targets to raise renewables to 30% of its fuel mix Fig 17: GPSC is looking at battery manufacturing within a
by 2025 broader context of energy solutions
Source: Company
Source: Company
March 29, 2021 13

Corporate Day
Fig 18: Sustainability
Source: Company
Fig 19: GPSC’s financial summary Fig 20 : Share price performance

Revenue 66,562 69,578 77,332 76,631 76,452 90 280
EBITDA 17,312 21,287 21,226 22,883 23,342 80 240
Core net profit 3,743 7,507 8,270 9,710 9,723 70 200

Core EPS (THB) 2.08 2.66 2.93 3.44 3.45
60 160
Core EPS growth (%) (7.7) 28.2 10.2 17.4 0.1
50 120
Net DPS (THB) 1.30 1.33 1.61 2.07 2.07
Core P/E (x) 41.3 27.7 25.9 22.1 22.0 40
80
P/BV (x) 1.5 2.0 2.0 1.9 1.9 Global Power - (LHS, THB)
Global Power / Stock Exchange of Thai Index - (RHS, %)
ROAA (%) 2.4 3.0 3.2 3.7 3.7 -1M -3M -12M
EV/EBITDA (x) 14.2 13.7 13.7 12.5 12.0 Absolute (%) 1 12 38
Net gearing (%) (incl perps) 74.7 67.0 57.1 51.4 44.6
Relative to index (%) (4) 6 (5)
MKE vs. Consensus (%) - - (3.4) 6.3 (2.2) Source: FactSet
Source: Company, Maybank Kim Eng
March 29, 2021 14

Corporate Day
Global Power Synergy (GPSC TB) Kaushal.l@maybank-ke.co.th

 GPSC is the utility flagship of PTT and we should see it continue to push its ESG goals. Gas is 63% of its fuel type, while
renewables make up 11-12%. Nevertheless, GPSC has tremendous scope to add renewable capacity as it can co-invest with
PTT in its bid to reach 8GW renewable capacity by 2030. Furthermore, its initiatives in developing S-curve technologies
(energy storage, battery manufacturing and energy management system) can give it an edge over peers.
 GPSC’s air/water pollution and quality metrics are all within internal targets.
 GPSC has set ambitious targets of raising renewables to 20% or 1GW of its 2025 capacity. Key risk is surge in renewable M&A
risks overinflating price of assets and lowering returns. The push on S-curve initiatives (battery manufacturing, etc) is also
challenging as GPSC must gain a competitive advantage for it to make commercial sense.
 GPSC is on track to see its ESG credentials strengthened as its next 5-year strategy is highly geared towards supporting
PTT’s vision of a “greener” and “electric” future.

 GPSC targets to reduce both direct and indirect GHG  There are 15 board members, of which 7 are
emissions intensity to no more than 0.49 t Co2/MWh by independent and 2 are female.
2025. For 2019, GHG emission intensity was at 0.3.  Independent directors lead the audit, risk, governance
 Target - increase in renewable energy power production committees.
ratio to 20% by 2025. Long-term target is 30%.  PTT owns 22.8% of GPSC, and will buy a further 8.9%
 Total energy intensity reduced YoY, at 4.68GJ/MWh in 2019 from TOP raising it to 31.7%.
(10 in 2017).  Total board of director remuneration was THB15m, or
 Water consumption reduced by 9.73% YoY. 0.4% of 2019 net profit.
 GPSC is involved in various initiatives to push the S curve:  PwC is GPSC’s auditor.
energy storage, energy management system and battery  In 2019 the company improved its procurement process
manufacturing (10-30 MWh energy storage battery pilot by implementing Green Procurement and online
plant.) The first semi-solid battery has been launched with procurement for purchase approval. This has resulted
regular production to start in 2Q21. in more data accuracy and accountability. Suppliers
 In 2019, implemented 38 projects on energy consumption were selected and registered via the annual supplier
reduction, equipment productivity improvement, recycling audit on Environment, Society, and Governance.
and reuse of energy and wastewater. This resulted in an  8 tier-1 suppliers are audited under ESG external
increase to the contribution margin of THB95.43m. organisations. 40 suppliers receive ESG training. 100%
 In 2019, hazardous and non-hazardous waste from the of tier-1 suppliers signed code of conduct.
company’s operations were reduced by 86.72% and  We see some conflict of interest in GPSC pursuing a
increased by 28.79%, respectively. Zero waste to landfill. LNG import licence to supply gas to its SPP (could
potentially reduce cost) as it would directly compete
with PTT (gas supplier), which is its key shareholder.
Material S issues  Overall, the market’s view on its 2019 acquisition of
GLOW is positive as GPSC more than doubled its
 Total employees: 345 of which 32% female. Female capacity. Synergy benefits estimated at THB1.6b/year
executives are 32.12%. from 2024 onwards. Sharp rise in net D/E ratio to 3.8x
 Employee turnover is 5% and has continued to decline over has been narrowed to 0.76x in 3Q20 and should
the past 3 years. continue to ease.
 Total training hours per person in 2019: 38/person.  There were 2 corruption cases in 2019 and necessary
 Lost time injury rate, total recordable injury rate and action was taken.
fatality rate in 2019 were 0, 0.13 (per 200,000 man hours)  4 training sessions on business ethics.
and 0.  “Excellent” level for Corporate Governance Report of
 Number of CSR projects in 2019 – 6, ratio of community Thai-listed companies - 96% in 2019.
investment and commercial initiatives to charitable
donations: 75%. 87% of community satisfaction
 Target to set up a power plant in Myanmar in 2020 - 2025,
which will boost employment and economic growth,
directly and indirectly
 No human rights violation.
March 29, 2021 15

Corporate Day
Home Product Center Plc (HMPRO TB)
Presenters:
Ms. Wannee Juntamongkol, Executive Vice President
Mr. Rakpong Aroonwatdhana, Senior Vice President
Rating: BUY
Key Takeaways:
Operations have shown signs of improvement QTD with the 14 Mega Home
chain leading. However, for the 95 HomePro store chain including 9 of the
HomePro S, most product categories are still showing sales decline but in low
single digit. Affordability is the main drag, especially in stores that are located in
the tourism destinations. HMPRO’s management expects sequential improvement
as the year unfolds and with favourable base effect is confident it can achieve
same store sales growth on par or slightly lower than GDP. In 2020, HomePro’s
same store sales contracted 8.5% YoY and the worst dip was in 2Q of -17% YoY.
The Mega Home chain was performing better, ending the year with slightly
positive sales growth.
Gross margin enhancement of 20-30bps is top priority for 2021. In 2020, the
flow of the higher margin private label goods (mainly imported) was disrupted by
Covid-19 lockdowns and subsequent shortage of containers slowing shipment
further. As for now shortage of containers still remains but to a lesser degree and
HMPRO is planning to source more of the products internally. Improvement in
merchandise flow and increase in private label merchandise volume is expected
to enhance margin.
Overseas expansion continues and one more store will be opened in Malaysia
bringing the total number of stores to seven. Thanks to government stimulus, the
HomePro stores in Malaysia are outperforming their Thai counterparts and the
chain is getting close to P&L breakeven. It is possible that Malaysia stores will hit
breakeven this year. HMPRO will enter Vietnam this year when travel is allowed.
For now, the plan is to launch an online store focusing on Thai products that are
popular among the Vietnamese consumers, mainly in the softline segment. This
tentative entry will allow HMPRO to understand the market better before getting
into operations of physical stores.
Muted expansion continues this year reflecting HMPRO’s conservativism. Two

new stores will be opened this year: 1) one in Malaysia; and 2) one standard
Home Pro store in Thailand. However, the 2021 capex budget outlay is still high
at THB4-5b to include IT upgrade, boosting logistics to support online business in
Thailand (targeted at least 5% of sales) and Vietnam as well as land banking for
future expansion. Cashflow from operations will fund 71% of the capex outlay.
March 29, 2021 16

Corporate Day
ESG agenda is not onerous for HMPRO especially in aspects relating to

environment such as phasing out single-use plastics in both vendor and the
consumer side. Vendors are encouraged to come up with product packaging so
customer can carry the items without needing plastic bags. The 5.0m or so
members and 0.5m in the co-branded credit card with Visa are offered recyclable
bags in exchange for points/rewards thereby reducing single-use plastic bags. In
the area of energy, solar roofs are being installed in large stores either equity
owned or through 3rd party operators. HMPRO is starting to see saving from these
ESG advancing measures.
Eco Product is the lynch pin for its ESG agenda. The aim is to become a retailer
of environmental friendly home improvement products. HMPRO has established
criteria to qualify as Eco Products including factors such as water use, electricity
consumption, biodegradable and natural materials etc. Eco Products are slightly
more expensive but also allows for higher mark ups as the quality is high.
Recommendation: We have a BUY on HMPRO with DCF-based TP of THB15.7,

7.5% WACC and 3% growth. The stock has been an underperformer relative to the
SET and home improvement peers due to weaker same stores sales growth
profile. Its stores are have a strong urban bias and exposure to tourism cities. In
addition, it also slowed its store expansion due to uncertainty. However, we
expect that home improvement projects will start picking up again in 2021 as
households and businesses prepare for the gradual normalization of economic
activities. A mid-single digit same store sales growth remains a distinct
possibility.
Fig 21: HMPRO materiality matrix Fig 22: Progress at the end of 2020
Source: Company
Source: Company
March 29, 2021 17

Corporate Day
Fig 23: Eco Product the ESG lynchpin
Source: HMPRO
Fig 24: HMPRO’s financial summary Fig 25 : Share price performance

Revenue 67,424 61,765 67,102 70,002 73,926 18.0 135

17.0 130
EBITDA 10,969 9,839 11,289 12,164 12,863
16.0 125
Core net profit 6,227 5,171 6,116 6,730 7,096 15.0 120
Core EPS (THB) 0.47 0.39 0.47 0.51 0.54 14.0 115
Core EPS growth (%) 10.9 (17.0) 18.3 10.0 5.4 13.0 110
12.0 105
Net DPS (THB) 0.38 0.30 0.38 0.41 0.44
11.0 100
Core P/E (x) 33.8 34.8 31.4 28.5 27.1 10.0 95
P/BV (x) 10.0 8.4 7.8 7.3 6.9 9.0 90
Home Prod Ctr - (LHS, THB)
ROAE (%) 30.3 24.2 26.5 26.5 26.1 Home Prod Ctr / Stock Exchange of Thai Index - (RHS, %)
ROAA (%) 11.7 9.6 10.9 11.9 12.4

EV/EBITDA (x) 20.1 19.4 17.6 16.1 15.0 -1M -3M -12M
Net gearing (%) (incl perps) 49.4 48.0 25.8 13.1 1.3 Absolute (%) 10 7 35
Consensus net profit - - 6,059 6,783 7,433 Relative to index (%) 4 1 (6)
MKE vs. Consensus (%) - - 0.9 (0.8) (4.5)
Source: FactSet
March 29, 2021 18

Corporate Day
Home Product Center (HMPRO TB) maria.l@maybank-ke.co.th

 Home improvement retailers receive a leg up on ESG from manufacturers/suppliers already buying into the sustainability agenda and
continuously bringing innovations for greener, efficient and consumer friendly home gadgets and equipment. HMPRO’s function in this
supply chain is to encourage consumers to shift to these better choices and it executes this function well. By 2019, 35% of its sales mix was
eco-products and the goal is to hit 50% by 2025.
 HMPRO’s ESG initiatives generate a positive contribution to profits via cost reduction in many areas, higher efficiency and store service
levels, higher rebate income, as well as foster strong relationships with society via vocational training, hiring elderly and those
handicapped.
 All these should circle back to enhance the franchise value and encourage patronage constructive to its target of having 150 branches by
2025 from 107 (2019) though the rollout might be delayed due to mobility restrictions relating to Covid-19 and uncertainty over the short
to medium-term outlook due to the economic fallout from the Covid-19 measures.

 Reducing energy consumption is an area where more savings can  The 11-member board of directors (BOD) only has one
still be made even though electricity use has fallen by 31% in the woman; it has four independent members. But the 18-
past five years to 256kWhr/sqm in 2019. Solar roofing is one
approach. YE20, 43 of its 98 large stores have solar roofs
member top management team has 12 women. The
producing c.35m KwHr/yr. 2030 goal is to cover the 98 stores. BOD’s total 2019 compensation was THB44m, c.0.7% of
 40.3% of its sales mix (2020) is eco products; 2025 target is 50%. reported net profit. Top management compensation for
Eco products must qualify any number of the following attributes: 2018 and 2019 was c.THB278m, equivalent to 2.4% of
water saving, energy saving, greenhouse gas reduction, chemical the combined reported profit in those two years.
safety & deforestation reduction. The most interesting example
of eco product is the KECH plate that absorbs and drains oil from
 HMPRO has an Employee Joint Investment Programme
foods thus reducing the oil consumed. (EJIP) that begun in 2013. Series 1 covers the 1 July
 Starting July 2019 HMPRO banned the use of single-use plastics 2013 - 30 June 2018. Eligible employees start from
and reported a reduction of 12.4m bags reducing CO2 by 444 Division Manager or higher and this is on a voluntary
tonnes or ≈49,388 trees planted. The goal is to reduce this more basis. EJIP series 2 covers the period from 1 July 2018-
by collaborating with suppliers and distributors while serving over
4.5m members and walk-in customers and growing its existing c.
30 June 2030; 5% is deducted from the monthly salary
40k-80k SKUs. Customer satisfaction (CS) was 79.6% in 2020 and of the participating employee and HMPRO will match
the goal is to hit 85% in 2025. Achieving high CS translates into this 100%. There is a silent period of three years. Sale
higher sales and other income (3.4% of 2019 sales) via supplier of shares can begin after Year 3 at a specific ratio.
rebates.  EY has been its auditor for seven years and the current
 Its newly expanded ASRS warehouse not only lowers cost (monthly
energy use down by 28k units) and boosts inventory efficiency
contract is for another three years.
(2.5x vs conventional warehouse) by increasing precision,  Because of Covid-19, online sales made up as much as
reducing storage duration and damage but it also advances store 9% of sales in 2Q20 (5% YE20), and this is an ongoing
service levels by reducing delivery duration by one day. trend. Cyber security will increasingly become an issue
in 2021 and HMPRO is looking at ways to mitigate the
Material S issues risks. The plan is to roll out information security
 Private label or direct sourcing is a key merchandising strategy to management in accordance with international
grow sales by tapping certain niches and boosts margins. This also standards such as ISO/IEC 27001 (Information Security),
allows HMPRO to directly engage with 1240 (2019) manufacturers which is a standard guideline of the Information
and distributors, and influence their operational procedures to Security Management System.
advance the sustainability agenda. The bi-annual HomePro Expo
showcases new products and innovation from its suppliers.
 Along with automation and digitalisation, HMPRO also provides
upskilling and training for its staff ranging from 49-77 hours
trained/person/year and this has been one of the reasons for the
better profit, from THB0.38m/person in 2016 to
THB0.57m/person in 2019. The ROI for the training was 441%.
 HMPRO has signed a bilateral programme with OVEC for eight
years now. In 2019, 398 vocational certificates and 30 bachelor
scholarships were awarded worth THB12.4m. Some 146 graduates
from the programme were admitted as HomePro’s associates
(technical services staff). Eight years in the programme cost
HMPRO THB53m and the accumulated graduates that have
become HomePro associates totalled 1,347; 51.5% of which are
females.
 By 2021 Thailand is expected to become a full-fledged aging
society, (20% of population older than 60 years old) according to
the NESDC. Three years ago, HMPRO begun hiring elderly
employees and by 2019 it had 52. About the same time it also
begun hiring disabled persons (95 people). About 1.2% of its sales
(2019) are products catering to the needs of the elderly and
disabled.
March 29, 2021 19

Corporate Day
PTT Global Chemical Plc (PTTGC TB)
Presenters:
Miss Pattaralada Sa-Ngasang, EVP, Finance and Accounting
Mr.Jittasak Soonthornpan, VP, Corporate Finance & Investor Relations
Mrs. Savanit Boonyasuwan Srilerdfah, VP, Sustainability Strategy & Management
Mr. Natthakorn Kraikul, Manager, Sustainability Strategy
Rating: BUY
Key Takeaways:
Improved outlook – Management shared a benign outlook for its portfolio. GRM
recovery will continue as Covid19 impact eases. For HDPE, they see strong
demand for packaging and electrical appliances as economies recover and expect
stronger spreads YoY. For PX, they highlight massive new PTA supply coming
online in China, which will increase demand for PX and support margins. Phenol
margins will remain strong on robust sanitizer demand, however 2021 outlook
will be softer as new capacity comes online.
Production optimization and cost savings– FY20 theme of cost saving,

optimization and flexibility will continue into FY21. PTTGC saved THB4.5b in
OPEX and THB3.2b from its MAX project (integration) in FY20. In terms of
operations, PTTGC reduced jet fuel yield from 13% in FY19 to 4% in FY20 (mainly
1Q20) to maximize refining profitability amidst Covid19. 1Q21 COD of its Olefin
retrofit project (2nd naphtha cracker) will improve feedstock flexibility. Its
naphtha/gas mix can be maximized at 30/70%.
High Value Business through M&A. PTTGC is looking to further move

downstream into performance chemicals that are less commoditized, higher
margins and more stable. The focus is on chemicals that serve automotive,
aviation and paint coating. This is a strategic move as the energy transition and
secular growth for chemicals has led tremendous capacity building in the
commodity space. Last year, PTTGC acquired 41% stake in DynaChisso Thailand
(30kta PP compound). PTTGC remains in discussion with short-listed potential
partners for the USD10b Ohio cracker JV following the withdrawal of its partner,
Daelim. PTTGC’s rationale for this project is to build scale and secure
competitive feedstock.
Transitioning from single use plastic – Governments across the region are
placing bans on single-use plastic, most notably China early last year. PTTGC is in
process of transitioning away from single-use plastic production and targets 0
production in the next 3 years. As of now, single-use plastic accounts for 4-5% of
PTTGC’s production capacity, but PTTGC has been able to partially divert the
line to the construction sector. PTTGC’s partnership with US-based Naturework is
a step in exploring bioplastic, however the economics of these projects remain
weak, which may limit scale.
March 29, 2021 20

Corporate Day
Driving circular economy initiative in Thailand. As part of the PTT group,

PTTGC is at the forefront for pushing sustainable initiatives (plastic) country-
wide. PTTGC has been well recognized by the international community and has
been awarded various accolades in this space (#1 in DJSI’s chemical sector for 2
years consecutively). Some important metrics of note: 860 tonnes of waste
collection (2017-2020), >50 partners & stakeholder engagements (2019-2020) and
30kta and 15kta of rPET and HDPE planned in 4Q21.
Recommendation: Maintain BUY and TP of THB75 (1.2x FY21 P/B, historical

mean). Themes of reflation, cyclical growth and supportive crude prices will
serve as a tailwind for PTTGC. PTTGC has a gas feedstock advantage unlike its
naphtha-based peers, which will allow it to maintain solid Olefin EBITDA margins
(>20%), which are linked to crude prices. PTTGC’s boasts one of the best financial
positions among its peers at a net D/E of 0.35x.
Fig 26: Management has guided improved outlook for its Fig 27: PTTGC’s ESG journey
olefin segment (accounts for 50% of its EBITDA)
Source: Company
Source: Company
March 29, 2021 21

Corporate Day
Fig 28: Role in Global Sustainability
Source: Company
Fig 29: PTTGC’s financial summary Fig 30 : Share price performance

70.0 150
Revenue 409,688 329,291 418,635 461,643 497,086 65.0 140
EBITDA 26,239 19,529 35,572 43,202 46,671 60.0 130
55.0 120
Core net profit 11,682 200 12,446 16,559 21,550
50.0 110
Core EPS (THB) 2.59 0.04 2.76 3.67 4.78 45.0 100
Core EPS growth (%) (70.8) (98.3) 6,135.1 33.0 30.1 40.0 90
35.0 80
Net DPS (THB) 2.00 2.00 2.30 2.80 3.80 30.0 70
Core P/E (x) 22.0 nm 22.9 17.2 13.2 25.0 60
20.0 50
P/BV (x) 0.9 0.9 1.0 1.0 0.9 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20

PTTGC - (LHS, THB) PTTGC / Stock Exchange of Thai Index - (RHS, %)
ROAE (%) 4.0 0.1 4.4 5.7 7.1
ROAA (%) 2.5 0.0 2.5 3.2 4.1 -1M -3M -12M
EV/EBITDA (x) 13.2 17.4 10.1 7.5 6.6 Absolute (%) 1 6 128
Relative to index (%) (4) 0 57
MKE vs. Consensus (%) - - (33.8) (12.5) 7.1 Source: FactSet
March 29, 2021 22

Corporate Day
PTT Global Chemical (PTTGC TB) Kaushal.l@maybank-ke.co.th

 PTTGC has made considerable efforts to integrate ESG practices into its wider business operations. In our view, PTTGC has
been effective in communicating its ESG efforts to stakeholders and the local investing community.
 The biggest challenge for plastic producers is growing negative sentiment surrounding single-use plastic. Bans in China,
Indonesia and Thailand this year have weighed on the sector, but fears eased following Covid-19 outbreak as
implementation turned lax and demand for hygiene and packaging picked up. Fundamentally, demand for plastic will
remain robust as there is no real alternative. The sector however faces a perception issue and will need to raise awareness
on recycling amongst communities. Many of the “non-single-use” plastic items by definition such as bottle caps/closures,
etc end up in landfills and oceans. PTTGC’s single-use plastic capacity is only 1-2% of total capacity, which it aims to
eliminate by 2022.
 PTTGC’s ROE on its sustainable efforts is low at 4-5%.Bioplastic production and upcycle plastic waste recycling are
important initiatives but financially, they are just breaking even. The company is hopeful that better customer adoption
and lower cost will improve returns in the future.
PTTGC is well on track to meet its GHG emission targets. Its initiatives in driving and raising awareness of the circular
economy have been positive and are important to move Thailand forward. We see room for more impact here.

 PTTGC’s target is to reduce GHG emission by 20% and 50%  PTTGC has 15 board members, of which nine are
for 2030 and 2050 (2012 base level). As of 2019, PTTGC independent. Chairman of audit, risk, governance, and
has cut emission by 14.5%. Scope 1 & 2 emission for 2019 remuneration are independent. There are two female
was 8.51m t CO2 equivalent, 5% lower than 2019 target. members on the board.
 PTTGC saved THB765m by using 1.96m gigajoule (GJ) less  PTT PLC is the largest shareholder (48%).
energy. Reduced freshwater consumption intensity by 8%  Top 10 executives’ compensation for 2019 was
from 2012 base year. Recycled 1m m3 of wastewater. Zero THB130m, 1.1% of net profit. Director remuneration in
industrial waste to landfill. 2019 was THB82m (includes 2018 bonus paid in 2019,
 Operates a 21kt bioplastic facility (biodegradable plastic 2019 bonus to be paid in 2020) or 0.7% of net profit.
from sugar cane, corn). Financially, just breaking even.  Current auditor is Deloitte (2019). It has a policy of
 Established ENVICCO (JV with Alpha), commencing changing auditors every three years.
investment and construction of circular rPET/rHDPE plant  In 2018, misconduct by suppliers and employees of
(45kt capacity) to be completed by 2021. Global Green Chemicals (, the biochemical arm of
 In 2019, 13 tonnes of waste was collected as part of PTTGC, resulted in an inventory loss of THB2.1b
upcycle waste material recycling, reducing GHG emission (inventory recorded on the books was inflated). This
by 44.69t CO2. was a lapse in internal audit. PTTGC has hired external
 THB986m in R&D investment, 8.4% of annual net profit. auditors to improve the process. The case is still in
court.
 In 2013, 50,000 litres of oil was leaked when delivered
Material S issues along a pipeline from a tanker vessel to PTTGC’s
refinery in Rayong. The court ordered PTTGC to payout
 THB309m in employee training investment with average 46 203 victims affected (approximately THB11.26m).
hours of training and development per person for 2019.  PTTGC has carried out a number of M&As (domestic
 Total recordable injury rate of employees and contractors and international) with targets falling within their
improved to 0.22 and 0.18/1m man-hours (improved past strategic framework. PTTGC’s acquisition of French
three years). The lost time injury frequency rate was 0.11 chemical player Vencorex (51% in 2012, 85% by 2014)
and 0.07/1m man-hours. has been heavily criticized due to poor profitability.
 Tier-1 critical suppliers have good ESG performance with Investors are wary of PTTGC’s consideration to enter
no violations of labour or human rights. into a USD10b JV to build a petrochemical plant in
 Supported local community of Rayong – procurement of Ohio, US given its poor record of international M&A.
THB177m/year from local suppliers. PTTGC aims to make a decision late this year or early
PTTGC was part of 19 research and development joint next year.
projects with customers. In 2019, it conducted 67 energy  In 2019, PTTGC was rated No.1 for DJSI’s chemical
conservation projects that focused on maximising energy sector. It has been ranked among the Top 10 in the
efficiency and cultivating employee awareness in energy chemicals sector for the seventh consecutive year.
reduction in the production process and office according
to ISO 50001 energy management standards.
March 29, 2021 23
Corporate Day
Siam Cement Plc (SCC TB)

Presenters:
Mr. Thammasak Sethaudom, VP-Finance and Investment & CFO, SCG
Mrs. Chantanida Sarigaphuti – Director, Corporate Planning and Finance
Mr. Narongpand Lisahapanya - IR Director
Mrs. Pinsuda Harinasuta Assistant- IR Director
Rating: BUY
Key Takeaways:
Outlook has improved significantly especially in the petrochem division whereby

product spreads are approaching cyclical high, partly thanks to the polar vortex
that hit Texas US causing outage in many production facilities. Even as the
outage capacity in the US is coming back online the stronger recovery in demand
has kept prices and spreads high. As of the middle of this month (March) the
HDPE gap was USD708/tonne, approaching the cycle peak level of 2015-2017. For
a change the spike in naphtha cost due to rising crude oil prices is passed on into
the product chain. There are new PE/PP capacities that would come into the
market late this year but if demand stays healthy globally and especially in the
US, the impact on spreads could be very minimal if at all. In the ConsMat division
demand in Thailand, the slowest among its ASEAN markets, has begun to
improve, driven by some recovery in new launches in residential property (high
single digit) and still resilient demand from government infrastructure (mid-
single digit growth). Among the ASEAN markets, construction activity in Vietnam
leads in terms of recovery. As for the Packaging division revenue and margins are
expected to post YoY improvement on higher utilization rate, especially in the
Indonesian facilities, higher efficiencies in Indonesia and Vietnam as well as new
capacities in the Philippines and Vietnam partly due to acquisition. As in the
petrochem case, the spread packaging paper has also remained high due to
strong demand. Based on channel checks, the spread in 1Q21 could end up at
USD310/ton, up 27% QoQ. It will be flattish YoY and growth will be more volume
driven.
Growth comes from capacity and efficiency gains. The debottlenecking of Mab
Ta Phut olefin cracker in Dec lifts volume capacity by 10% and raises plant
efficiency. In the case of ConsMat continued cost savings measures are
retrofitting will also drive efficiency gains while in the Packaging efficiency gains
will be brought about by the T-model of integration (horizontal and new
verticals). Capex outlay for this year is set at THB65-75b, higher than in 2020
(THB58.3b) as the greenfield petrochemical plant in Long San, Vietnam is nearing
completion (about 75% currently). This plant will raise SCC’s overall petrochem
capacity by 53% to 8m tonnes in 1H23 when the plant hits the optimal utilization
rate. SCC’s capex outlay will drop back to the normal range of THB40-50b once
the petrochemical plant in Vietnam is completed.
The SCC group’s business has very high carbon footprint. Aside from coming up
with high-value and environmental friendly products that are targeted to account
for 67% of revenues by 2030, the group has to come up with new processes to
create more carbon offsets. In petrochem this means increased recycling and it is
now testing chemical-based recycling that creates polymer that have qualities on
par with virgin plastics. The technology is patented and will be rolled out by late
this year or early next year. The most extractive business in the portfolio is the
ConsMat division, especially cement in which it is the largest in Thailand in terms
of capacity. Generating carbon offset via reforestation cannot get SCC to its net
zero goal by 2050. Currently, the cement refractories are being retrofitted to
March 29, 2021 24

Corporate Day
produce the more environmental friendly hydraulic cement and eliminate the use
of coal in the clinkering process by 2050. Recycling waste heat to produce power
reduces electricity use from grid. In the planning stage is carbon sequestration
directly from the cement operations. The Packaging division is an intensive user
of water and SCC actively treats and recycles water to use in cooling broilers and
machinery to help the group achieve 23% water withdrawal reduction by 2023.
Given technological advances in material science coupled with its very active
R&D programmes, SCC now has more options to pursue a more aggressive ESG
agenda.
Recommendation: We have a BUY on SCC with a TP of THB430, based on average

values of DCF and GGM at 7.2% WACC, 3.5% growth and 13.7% ROE. The stock has
been a chronic laggard due to its exposure to the lackluster construction material
sector in Thailand and ASEAN countries where construction activities have been
disrupted by Covid-19 lockdowns and/or mobility restrictions. However, the
demand outlook in Thailand is getting marginally better and the situation in
other ASEAN countries is expected to begin normalizing this year, lead by
Vietnam.
Fig 31: Materiality matrix of SCC
Source: SCC SD report
March 29, 2021 25

Corporate Day
Fig 32: ESG Progress 2020 and targets
Source: Company
Fig 33: SCC’s financial summary Fig 34 : Share price performance

Revenue 437,980 423,584 432,577 443,454 453,176

450 110
EBITDA 58,168 67,457 67,089 66,959 66,032
Core net profit 32,860 36,707 39,759 39,429 37,530 400 100
Core EPS (THB) 27.38 30.59 33.13 32.86 31.28
350 90
Core EPS growth (%) (26.6) 11.7 8.3 (0.8) (4.8)
Net DPS (THB) 14.00 15.60 16.90 16.76 15.95 300 80
Core P/E (x) 14.3 12.4 11.9 12.0 12.6
P/BV (x) 1.7 1.5 1.5 1.4 1.3 250
70
Net dividend yield (%) 3.6 4.1 4.3 4.2 4.0 Siam Cement - (LHS, THB)
ROAE (%) 11.8 12.6 12.7 11.9 10.7 Siam Cement / Stock Exchange of Thai Index - (RHS, %)
ROAA (%) 5.4 5.8 6.2 5.9 5.4 -1M -3M -12M
EV/EBITDA (x) 12.1 10.0 10.6 10.8 11.0
Net gearing (%) (incl perps) 55.9 48.0 48.7 48.8 46.9 Absolute (%) 8 4 22
Consensus net profit - - 37,477 38,424 41,028 Relative to index (%) 3 (2) (15)
MKE vs. Consensus (%) - - 6.1 2.6 (8.5) Source: FactSet
March 29, 2021 26

Corporate Day
Siam Cement (SCC TB) maria.l@maybank-ke.co.th

 SCC has to grapple with a multitude of issues relating to ESG as it operates in extractive industries such as cement, building
materials, packaging and petrochemicals with a broad based distribution network and a regional presence.
 SCC’s ESG began from its commitment to the +2°C global target in the Paris Accord by 2030 and this commitment cascades
into layers of key sustainability goals in the following areas: GHG, Water, Energy, Product Stewardship, Innovation &
Technology, Human Rights, Safety and Customer Experience.
 This is a step process; 2025 is the next milestone for most material variables such as GHGE down by 20%, ECR by 13%.
Under ECR, R&D embraces CEP, which has seen 75.68MW of solar power installed to date and a subsequent GHGE reduction
of c.48.3K tonnes of CO2/yr.
 As capacity expansion via green and/or brownfield acquisitions is on the cards, SCC has set its ICP at USD18/tonne CO2 as
the criteria for project approval. CEP/ICP will embed sustainability goals into the corporate’s DNA.

 CBM is a highly extractive industry and interfaces with local  SCC’s 12-member board of directors has six
counterparties. In mining limestone a mountain wall is independent directors, two female directors and three
maintained to keep in particles and not deface the sides. recommended by the major shareholder. Total
Reforestation follows post mining; one quarry already hit its compensation in 2019 was THB82m or 0.25% of
targeted biodiversity index (three more on the way). Long-term reported net profit. Its auditor (2018-2022) is KPMG
target is a natural forest zone of 60%. Phoomchai, which has been its auditor for many terms.
 Firing the refractory is coal intensive. To reduce coal usage  In 2020, SCC announced its diversity and inclusion
cement plants now have a WH generator to capture excess energy policy and intention to support gender equality and
and is augmented with RDF and biogas. This year, one industrial evaluate gender discrimination.
waste power plant that COD can process 65k tpa of waste.  Female employees are c.22% of its total and 27% of the
 End of 2019, cement used 24% of recycled inputs, building managerial level. During 2015-19, between THB1.2-
materials 14%, packaging 61%, petrochems only 1% though this 2.0b/year was spent on employee training
SBU runs on 12.3% recycled water, 13.6% solar power. programmes. Employee engagement had reached 68%
 In 2019, SCC assessed opportunities and risks relating to climate in 2019 (target 70% by 2022).
change and its impact with the Task Force on Climate-Related  For now, the 11-member top management are all
Financial Disclosures by FSB UNEP. This in turn will allow SCC to males.
incorporate the latter’s recommendations to foster sustainable  SCC has an active whistleblowing policy to control and
business practices. prevent corruption. So far, 29 cases have been
 SCC is in the DJSI and also reports to GRI. investigated involving compliance laws and violation of
internal rules on code of conduct; the SCC 4 core of
values, zero on corruption, human rights and anti-
Material S issues trust. The total damage was THB0.67m, and 17
employees were dismissed.
 SCC’s human rights practices are in accordance with UDHR,
UNGC, UNGP and ILO’s Declaration on Fundamental Principles &
Rights at Work and its own policy.
 In the previous mining licence renewal, SCC met pressures from
NGOs relating to environmental effects of mining. This was
resolved. To prevent recurrence, SCC engages local communities.
Since 2019, 19 communities are now able to manage their own
water resources, and 7,139 monkey cheeks dams were built to
augment water supply. The group achieved 82% community
satisfaction index.
 The SCG Foundation seeded with THB75b in 1963 is the main
corporate social responsibility vehicle; 5Y spending ranges
THB591-748m covering multiple activities.
 Leveraging on its relationship with Oxford University, it brought
together AstraZeneca, Oxford, Siam Bioscience to sign LOI to
produce AZD1222 Covid-19 vaccine to supply to Thailand and
the region. Localizing production is beneficial to Thailand.
March 29, 2021 27

Corporate Day
Total Access Communication Plc (DTAC TB)

Presenters:
Mr. Nakul Sehgal- CFO
Mr. Marcus Adaktusson- Chief Corporate Affairs Officer
Mrs. On-Uma Vattanasuk Rerkpattanapip - SVP, Head of Communications and
Sustainability
Ms. Rachaya Kulnapongse - VP, Head of Sustainability
Ms. Jessica Chandrangam - VP, Investor Relations
Rating: BUY
Key Takeaways:
Guidance of low single digit drop in revenues and EBITDA now looking too
conservative. DTAC reports that operating conditions have begun to improve in
February indicating that growth in 2021 revenue and margin is possible. While
price competition is still intense it now occurs in some areas where consumers
are still optimizing household expenses. Improvement in economic activity (and
income) can help ease the intensity of competition.
Digital drive to keep customers. In 2020 growth in the DTAC app users rose 40%
and in the provincial areas growth was 70%. DTAC now has the highest data usage
among mobile service providers at 20GB per subscriber per month. As a result, it
also leads the industry in terms of postpaid ARPU. The strategy to achieve high
ARPU is to consistently deliver enhanced customer experience, fast speed and
offer services that are viable to its subscribers. Data analytics is important and
DTAC has been able to classify its users into four categories: 1) the new rurals; 2)
the remote deskers; 3) the non-stop streamers; and 4) critical users. Each group
focuses on different service criteria and it is up to DTAC to meet them and
hopefully encourage use and drive ARPU. DTAC will leverage its app to encourage
use of services and enhance its mind share among user thus helping drive
subscriber acquisition. Part of its sustainability agenda is to help small
entrepreneurs, targeting those in the 40% lowest income group, to enhance their
earnings power through the use of internet and online tools. The program aims to
help DTAC business users to improve income by at least 15%.
Closing the gap in 5G. Unlike competitors, DTAC did not acquire 5G spectrums
aggressively in the 2020 auction as spectrum costs were deemed expensive. To
continue delivering quality services it boosted its 2300MHz network with massive
MIMO transforming making its mid-band spectrum to quasi 5G. DTAC already
received the 700MHz and this will be used to expand coverage and boost 5G
capabilities augmenting its 26GHz spectrum (high band). By 2Q21, DTAC will
already have closed the 5G gap with its competitor.
Electricity consumption is the topmost sustainability agenda. DTAC’s network

of 99,086 base stations and growing accounts for 97% of its electricity
consumption leading to an equivalent 357,894 Kg/COe emission in 2020. Base
stations are high intensity electricity users in a small space. R&D on the use of
solar power to help reduce GHG emission by as much as 50% in 2030 from the
2019 baseline has been successful. This programme will be rolled out as quickly
as possible to the rest of the base stations.
March 29, 2021 28

Corporate Day
Data privacy and cyber safety is also high in the sustainability agenda. The
Personal Data Protection Act (PDPA) has just been enacted in Thailand and
specific (supporting) regulations are starting to follow. PDPA will impose extra
cost to users in terms of hardware and processes and DTAC aims to showcase its
strong network and stringent data protection control to convince users especially
enterprise to use their services. Protection from cyberbullying is a social agenda
that DTAC considers important. To this end, it conducts yearly training involving
over 100,000 teenagers to recognize and identify to become effective in helping
others from becoming victims.
Recommendation: We have a BUY on DTAC with DCF-based TP of THB47 at 10%

WACC and 2% growth. The stock has been a chromic underperformer as the
market remains concerned over its 5G strategy and high financial obligations
(both debt and spectrum payment) in 2020. However, in 2Q21 DTAC will being
rolling out its 5G services this year in both low and high-band spectrums with
close to 5,000 base stations while at the mid-band it will be using massive MIMO
to enhance services while waiting for the amended 2300MHz license to be
allowed to engage in 5G services. DTAC’s network is 5G cloud-ready. In addition,
financial obligations will be significantly lower having successfully refinanced its
loans into a longer-term tenor.
Fig 35: Business framework
March 29, 2021 29

Corporate Day
Fig 38: DTAC’s financial summary Fig 37: Goals in waste management
R&D on use of solar power in base stations and will be rolled

out sequentially.
Source: Company data Source: Company data
Fig 38: DTAC’s financial summary Fig 39: Share price performance
Revenue 81,167 78,818 77,453 82,355 88,693 60.0 130
EBITDA 28,013 27,763 27,893 30,608 32,958 55.0 120
Core net profit 5,422 5,107 5,508 6,162 6,801 50.0 110
Core EPS (THB) 2.29 2.16 2.33 2.60 2.87 45.0 100
40.0 90
Core EPS growth (%) nm (5.8) 7.8 11.9 10.4
35.0 80
Net DPS (THB) 2.87 2.99 1.57 1.65 1.73
30.0 70
Core P/E (x) 23.3 15.4 14.1 12.6 11.4
25.0 60
P/BV (x) 5.1 3.2 3.4 3.1 2.8 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
Net dividend yield (%) 5.4 9.0 4.8 5.0 5.3 Total Access C. - (LHS, THB)
Total Access C. / Stock Exchange of Thai Index - (RHS, %)
ROAE (%) 23.1 20.7 23.5 25.8 25.6
ROAA (%) 3.4 3.0 3.1 3.5 4.0 -1M -3M -12M
EV/EBITDA (x) 6.9 5.8 5.9 4.9 4.1 Absolute (%) 3 (3) (14)
Relative to index (%) (2) (8) (40)
MKE vs. Consensus (%) - - 51.4 57.7 54.0 Source: FactSet
March 29, 2021 30

Corporate Day
Total Access Communication (DTAC TB) maria.l@maybank-ke.co.th

 The switch from 2G/3G to 4G spectrum was a difficult stage because spectrum was expensive and DTAC had to walk away
from auctions. The low spectrum caused erosion in its subscriber base. The case for 5G will be different.
 In its pivot move, DTAC switched from internal network metrics to granular measure of network NPS (net promoter score),
which is a customer satisfaction score and this shifts the focus to customers’ needs aiming to become a trusted partner with
strong integrity, working to reduce inequalities, raise standards in operations and supply chain plus deliver safety, security
and data privacy.
 DTAC is evolving towards a holistic and structured corporate responsibility framework to promote sustainable economic and
social growth within a wider community. It has several social programmes that align with UN Sustainability Goals No 10:
Reduce Inequality, and No 16: Peaceful Inclusive Societies.

 E-waste is a major concern for telco companies in general.  DTAC’s 10-member BOD has three independent
One report stated that Thailand is now a global centre of directors, two non-executives and three females. On its
electronic waste with 400,000 tonnes in 2019, 200,000- 9-member Executive Management team, three are
300,000 of which cannot be traced back to its source. women.
 DTAC’s three primary sources of e-wastes are: network of  In 2019, the BOD’s remuneration was THB13.6m or 2.5%
base station towers, office buildings and customers. of the reported net profit. As for the management
ThinkSmart collaborates with a 3rd party to process e- team, total compensation was THB82.25m or 1.5% of
waste. In 2019, DTAC’s 30 halls nationwide collected the reported net profit.
213.5k pieces of e-waste that equals to 2.6m kCO2 based  Regulatory risk is ever present in the Thai telecom
on Thailand’s Greenhouse Gas Management Org. industry. There are four that remain an issue for DTAC.
 Fair treatment and safety in communities where DTAC’s First, the foreign business act says that foreigners
20,000 base station towers are located are inspected cannot own more than 49% in telecommunications
regularly to ensure safety in relation to electromagnetic business type 2 and type 3. Because DTAC is majority
fields (EMFs). Its own EMF team works with 894 vendors controlled by Telenor SA through a layer of Thai joint
and partners to provide awareness to the communities on ventures it risks having licences revoked. Emanating
EMF risks. from this is the risk of violating the Land Code that has
a condition that foreigners cannot own land. Several
reviews since its inception in 1990 have been conducted
and thus far DTAC is identified as not being a foreign
Material S issues entity. However, a different interpretation in the future
 DTAC launched e-learning services platform that in addition can fault DTAC.
to lessons such as AI and data visualization also focuses on  Like other operators, DTAC has several disputes pending
building understanding and finding ways to cope with the from the concessionary era covering 1990-2018. Losing
online threat. SafeInterneforKid.com (parent Telenor’s any of the cases could have a negative impact on the
platform) trained 440 teachers on digital resilience that in enterprise.
turn reached out to 24,000 students all over the country.  DTAC enforces strict “No Gift Policy”.
Key areas covered: 1) Online Privacy & Sexual Abuse; 2)  Data protection is of utmost importance and DTAC holds
Diversity Respect to Stop Cyber Bullying; and 3) Anatomy of personal data protection workshops for 1,000
Fake News. The learn.safeinternet.camp, now in its 5th employees (out of 4,000) who might have access to
year, aims to build digital resilience among children and personal data of customers. So far there has been no
youths so they can roam the Internet safely. report of customer data being hacked.
 After employees (4K in 2019 and 61% are females) voiced  2019 customer satisfaction survey hit 42% participation
concerns about not having equal opportunities in career rate, vs target of 30% and DTAC received a 94.3% score,
advancement, fair evaluation and reward, DTAC devised an improvement to the 93.6% in 2018. The Network
PromptGROW programme where employees can develop Check & Share allows users to rate their network
skills they deem crucial for their own advancement. The experience and identify trouble spots. As complaints are
2019 Employee Engagement Survey achieved 91% coming directly from mobile devices, they come with
favourable response. detailed information the call centre and network teams
 SmartFarmer project is to elevate the capacity of small can use to investigate. This puts DTAC in close contact
farmers and marketing skills to help bring down costs and with its subscribers and it can act quickly when
increase yields. Some 151,000 subscribers have problems emerge.
downloaded the app and in 2019 it was accessed 2.7m  EY Office Limited (formerly Ernst & Young) has been the
times. The NetArsa harnesses the social media to develop auditor for over 15 years now.
income streams for small shop owners, farmers and
artisans. 125,000 have been trained on various aspects of
e-marketplace and revenues are found to have increased
by 25%, on average, after applying the skills. There are
more programmes like these to advance DTAC’s
commitment to UN Sustainable Dev’t Goal 10.
March 29, 2021 31

Corporate Day
Thai Union Group Plc (TU TB)

Presenters:
Mr. Ludovic Garnier – Group CFO
Mr. Prad Kerdpairoj- Director of Sustainability Asia
Mr. Yongyut Setthawiwat – Managing Director, Group Treasurer
Rating: HOLD
Key Takeaways:
Operating performance expected to moderate from the 2020 high but growth
is still projected, underpinned by 3-5% for sales in THB terms (2THB31/USD) and
gross margin at 17%. Sales of ambient seafood will slow as demand boost from
pantry loading especially at the height of Covid-19 lockdown will fade away but
this will be offset by improvement in seafood sales to the Food Service sector as
restaurants, hotels and catering begin to normalize. The annual price negotiation
with European retailers is taking place (typically occurs during late 1Q-early 2Q)
and there is resistance to raise the tuna product price as household income
remains under pressure but TU will compensate for this by cross selling products,
continue to squeeze more efficiency in the operations and push more value-
added products. Tuna material prices are expected to see some inflation but on
average should stay in the range of USD1,400-1,450/tonne – a very manageable
level management guides..
SGA/sales to stay at 11-12% as TU resumes investment on the brand, supports

various initiatives under the sustainability agenda including product and material
R&D, 100% monitoring at sea to further promote traceability and help employees
reduce their monthly expenses. Pursuit of ESG objectives will become part of
operating expenses.
New product development (NPD) will focus on high value added and this can
be facilitated via continued efforts to add more value to the by-products which is
48% of tuna and push towards to zero waste from the current ratio of 5%. NPD
generates 20-25% margins and its contribution to GM upliftment will become
visible when sales account for 20% of the overall portfolio. Currently this is less
than 5%. TU has committed USD30m to its corporate venture fund that aimed at
nurturing food tech start-ups and drive innovation in the food industry. This is
not yet generating positive contributions but there are a number of promising
ventures, especially in the area of alternative protein and functional nutrition.
Bigger role in marine stewardship is at the heart of its sustainability agenda.

The Sea Change programme takes TU to a deeper commitment in stewardship
over marine resources. Multiple initiatives are being rolled out to achieve
responsible fishery by imposing product traceability. TU has committed itself to
100% monitoring at sea to ensure sustainable fishing methods are used, high
labour standards in the vessels and product certification. It has also signed up to
the Global Ghost Gear Initiative to raise awareness and reverse the effect of
abandoned, lost and discarded fishing gear that is contributing to pollution in the
ocean and posing hazards to marine creatures.
Sustainability is now embed in the financial planning and management. The

first Sustainability Linked Loans worth THB12b equivalent with funding cost of
about 2.3% will now become a basis for its financial transactions including short-
term financing. By linking funding to sustainability criteria, TU hopes to lower its
cost from around 3% currently and at the same time advancing its sustainability
goals.
March 29, 2021 32

Corporate Day
Recommendation: We have a HOLD on TU with TP of THB14.5, based on the

average values of DCF and GGM at 6.7% WACC, 2% growth and 10.3% ROE. Despite
strong financial performance in 2020, TU remains a chronic underperformer due
to the drag from Red Lobster and lingering doubts over sustainability of its strong
sales and margins that will become clear in 2021. In 2020 TU generated USD420m
EBITDA and the goal is to generate USD450-550m by 2025.
Fig 40: Milestones for 2025 Fig 41: Activities for 2021 and beyond
Climate change agenda
*Traceability is the backbone of seafood sustainability. Our products will be traceable from *Setting science-based target in line with ‘towards 1.5 c future’ approach set by Science-Based
capture to final product in order to inform our work programs, our customers and our
*Target Initiative (SBTi) covering all GHG emissions scope (Scopes 1-3)
consumers. Setting comprehensive climate change strategy including decarbonisation and climate risks
management
*By 2025, our branded tuna will be sourced from vessels and suppliers that demonstrate
*Continuing to improve energy efficiency in line with commitment to ‘double energy
Operational Best Practice to prevent IUU fishing and modern slavery. productivity by 2041 from 2016 baseline’ as part of our work with EP100, Climate Group global
initiative on smarter energy
*By 2025, our branded aquaculture products will be responsibly-sourced from farms that meet
Sustainable packaging
internationally recognized Global Seafood Sustainability Initiative (GSSI) benchmarked *Continue to explore our packaging development to meet our goals of ensuring “100% re-
standards or Aquaculture Improvement Projects (AIPS) meeting scientific ratings standards. usable, recyclable or compostable in our branded packaging by 2025” and ensuring “30%
recycled content in our branded packaging by 2025”.
*We will work to ensure safer, cleaner oceans by driving economically viable and sustainable *We will aim to align with the Ellen MacArthur Foundation (EMF), New Plastics Economy Global
solutions to the problem of ghost fishing gear and marine plastic pollution globally. Commitment
Fig 42: 2020 milestones Fig 43: Plans for ethical recruitment platform
Source: Company
Source: Company
March 29, 2021 33

Corporate Day
Fig 44: Terms of TU’s Sustainability Linked Loans
Note: KPI opinion letter issued to Sustainalytics, Source: Company
Fig 45: TU’s financial summary Fig 46: Share price performance
Revenue 126,275 132,402 135,325 142,867 150,931 19.0 140

18.0 130
EBITDA 8,182 11,482 11,179 11,772 12,389
17.0 120
Core net profit 3,509 6,089 5,874 6,410 7,717
16.0 110
Core EPS (THB) 0.74 1.28 1.23 1.34 1.62
15.0 100
Core EPS growth (%) 24.6 73.5 (3.5) 9.1 20.4 14.0 90
Net DPS (THB) 0.72 0.73 0.79 0.95 1.13 13.0 80
Core P/E (x) 18.4 10.7 11.9 10.9 9.0 12.0 70
P/BV (x) 1.5 1.4 1.5 1.4 1.3 11.0

60
Net dividend yield (%) 5.3 5.3 5.4 6.5 7.7 Thai Union Group - (LHS, THB)
ROAE (%) 8.8 13.8 12.5 13.0 14.8 Thai Union Group / Stock Exchange of Thai Index - (RHS, %)
ROAA (%) 2.5 4.3 4.1 4.4 5.2 -1M -3M -12M
EV/EBITDA (x) 15.8 10.9 11.6 10.8 10.0
Net gearing (%) (incl perps) 133.4 114.1 107.0 95.3 83.7 Absolute (%) 4 8 (5)
Consensus net profit - - 6,104 6,396 6,402 Relative to index (%) (1) 2 (34)
MKE vs. Consensus (%) - - (3.8) 0.2 20.6 Source: FactSet
March 29, 2021 34

Corporate Day
Thai Union Group (TU TB) maria.l@maybank-ke.co.th

 Nearly 100% dependent on marine resources for its raw material and in a labour intensive seafood industry, TU faces a
multitude of pitfalls in ESG.
 However, TU’s level of commitment to sustainability especially in the area of marine resources is evident. It is a signatory
of many global initiatives working to ensure sustainable practices involving marine resources. That said, the risk of input
shortage remains.
 Its diversification efforts into value added products and alternative sources of protein by having a primary role in the global
tech start up incubator & accelerator Space F is unlikely to dilute its sea protein-based business in the medium term.
Many initiatives that TU participates in are focused on fishery. There remain a number of aspects that are ESG fault lines
that needs be incorporated such as mercury contamination, nano-plastics contamination, water contamination in
aquaculture (shrimp), as well as marine (salmon) culture.

 In production, TU has been making tangible strides in  TU has an all-male BOD with 12 members, four of
reducing GGIE, by 18% or 88k tonnes of CO2, nearing the which are independent and two are non-executives.
30% long term target. In water consumption and waste to Three of the independents are also in the Audit
landfill reduction, TU already breached the 20% target in Committee. In 2019, the BOD’s total compensation was
THB16.7m or 0.48% of core profit. Management
2019. Cost savings of USD24m.
compensation was THB150.8m in FY19, or 4.3% of core
 In broader environmental issues, TU is a work in progress.
profit.
Various interest groups accused TU a number of times on  Its operations worldwide are run by a 12-member
grounds of environmental abuses, and mislabelling tuna global leadership team, with only one woman, Dr
material. This has motivated the group to actively engage Darian McBain heading Corporate Affairs &
in several initiatives to advance the agenda of responsible Sustainability. There is also a 10-member management
fishery such as the UN Global Compact Network, the team with only one woman that runs Global
Marine Stewardship Council, Aquaculture Stewardship Commercial Innovation. In 2019 TU re-affirmed its
Council, International Seafood Foundation , Fishery commitment to gender parity, achieving a 50/50 ratio
Improvement Project (1st investment-USD90m) and Vessel across all levels of management, focusing on gender as
Code of Conduct, Global Ghost Gear Initiative. All the part of its broader inclusion approach.
 In 2015, the US Department of Justice begun an anti-
above are now encapsulated in the global initiative
trust investigation into the packaged seafood industry.
SeaChange that covers every aspect of the seafood
Subsidiary Tri-U is the defendant. With full cooperation
business. it has been granted leniency. The case is still ongoing.
 For these engagements, TU has gained membership of the  Tri-U is also the defendant in class action suits lodged
DJSI Emerging Markets, FSTE4Good Emerging Index and by retailers, grocery stores and consumers. In 2018, TU
garnered several awards. settled with some retailers for USD42.6m. Mid-2019 TU
settled with other retailers for USD59.7m. The case
continues but the remaining litigants are very few and
Material S issues the cost of potential settlement will likely be smaller.
 In 2018, subsidiary John West was charged by the UK
Crown Prosecution Service on eight counts of doing
 TU had also been accused by interest groups as complicit business directly connected to IUU fishing in Ghana. In
of human abuses in fishery. The landmark case was in 2015 Oct-19, John West was cleared of all the charges.
that resulted in termination of its relationship with 17  Canned tuna, or the seafood business is a mature
suppliers; ending contracts with employment brokers for industry and TU has grown via acquisitions. The largest
its seafood processing plants in 2017. As part of a long- was the purchase of MWB Brands in Europe in 2010
term solution, TU has embarked on automation to reduce costing EUR638m. Since then there had been 13 more
manpower by 50% from over 45,000 currently. acquisitions, the largest of which is the USD575m
 TU also entered into a partnership with USAID Oceans to investment in US-based Red Lobster Seafood (2016),
combat Illegal, Unreported and Unregulated (IUU) fishing 25% equity & rest is in debentures.
 Recent disruption in production facilities: May-20 -
to promote fair & ethical seafood supply chains & improve
factories in Ghana and Portugal were temporarily
sustainability of fisheries in the Asia Pacific region.
closed due to Covid-19 cases; May-20 a fire broke out
in its lobster processing plant in Canada; Jun-19 a fire
broke out in its tuna oil refinery in Germany.
March 29, 2021 35

Corporate Day
Research Offices
ECONOMICS REGIONAL EQUITIES SINGAPORE THAILAND
Suhaimi ILIAS Anand PATHMAKANTHAN Thilan WICKRAMASINGHE Head of Research Maria LAPIZ Head of Institutional Research
Chief Economist Head of Regional Equity Research (65) 6231 5840 thilanw@maybank.com Dir (66) 2257 0250 | (66) 2658 6300 ext 1399
Malaysia | Philippines | Global (603) 2297 8783 • Banking & Finance - Regional Maria.L@maybank-ke.co.th
(603) 2297 8682 anand.pathmakanthan@maybank-ib.com • Consumer • Strategy • Consumer • Materials • Services
suhaimi_ilias@maybank-ib.com
WONG Chew Hann, CA CHUA Su Tye Jesada TECHAHUSDIN, CFA
CHUA Hak Bin Head of ASEAN Equity Research (65) 6231 5842 chuasutye@maybank.com (66) 2658 6300 ext 1395
Regional Thematic Macroeconomist (603) 2297 8686 • REITs - Regional jesada.t@maybank-ke.co.th
(65) 6231 5830 wchewh@maybank-ib.com • Banking & Finance
chuahb@maybank.com LAI Gene Lih, CFA
ONG Seng Yeow (65) 6231 5832 laigenelih@maybank.com Kaushal LADHA, CFA
LEE Ju Ye Research, Technology & Innovation • Technology • Healthcare (66) 2658 6300 ext 1392
Singapore | Thailand | Indonesia (65) 6231 5839 Kaushal.l@maybank-ke.co.th
(65) 6231 5844 ongsengyeow@maybank.com Kareen CHAN • Oil & Gas – Regional
leejuye@maybank.com (65) 6231 5926 kareenchan@maybank.com • Petrochemicals - Regional
MALAYSIA • Transport • Telcos • Utilities
Linda LIU
Singapore | Vietnam | Anand PATHMAKANTHAN Head of Research Eric ONG Vanida GEISLER, CPA
Cambodia | Myanmar | Laos (603) 2297 8783 (65) 6231 5924 ericong@maybank.com (66) 2658 6300 ext 1394
(65) 6231 5847 anand.pathmakanthan@maybank-ib.com • Retail Research Vanida.G@maybank-ke.co.th
lindaliu@maybank.com • Strategy • Property • REITs
Matthew SHIM
Dr Zamros DZULKAFLI Desmond CH’NG, BFP, FCA (65) 6231 5929 Yuwanee PROMMAPORN
(603) 2082 6818 (603) 2297 8680 matthewshim@maybank.com (66) 2658 6300 ext 1393
zamros.d@maybank-ib.com desmond.chng@maybank-ib.com • Retail Research Yuwanee.P @maybank-ke.co.th
• Banking & Finance • Services • Healthcare
Ramesh LANKANATHAN INDIA
(603) 2297 8685 LIAW Thong Jung Ekachai TARAPORNTIP Head of Retail Research
ramesh@maybank-ib.com (603) 2297 8688 tjliaw@maybank-ib.com Jigar SHAH Head of Research (66) 2658 5000 ext 1530
• Oil & Gas Services- Regional (91) 22 4223 2632 jigars@maybank.com Ekachai.t@maybank-ke.co.th
William POH • Automotive • Strategy • Oil & Gas • Automobile • Cement
(603) 2297 8683 Surachai PRAMUALCHAROENKIT
william.poh@maybank-ib.com ONG Chee Ting, CA Neerav DALAL (66) 2658 5000 ext 1470
(603) 2297 8678 ct.ong@maybank-ib.com (91) 22 4223 2606 neerav@maybank.com Surachai.p@maybank-ke.co.th
FX • Plantations - Regional • Software Technology • Telcos • Auto • Conmat • Contractor • Steel
Saktiandi SUPAAT YIN Shao Yang, CPA Kshitiz PRASAD Suttatip PEERASUB
Head of FX Research (603) 2297 8916 samuel.y@maybank-ib.com (91) 22 4223 2607 (66) 2658 5000 ext 1430
(65) 6320 1379 • Gaming – Regional kshitiz@maybank.com suttatip.p@maybank-ke.co.th
saktiandi@maybank.com.sg • Media • Aviation • Banks • Food & Beverage • Commerce
Christopher WONG TAN Chi Wei, CFA Vikram RAMALINGAM Jaroonpan WATTANAWONG
(65) 6320 1347 (603) 2297 8690 chiwei.t@maybank-ib.com (91) 22 4223 2607 (66) 2658 5000 ext 1404
wongkl@maybank.com.sg • Power • Telcos vikram@maybank.com jaroonpan.w@maybank-ke.co.th
• Automobile • Media • Transportation • Small cap
TAN Yanxi WONG Wei Sum, CFA
(65) 6320 1378 (603) 2297 8679 weisum@maybank-ib.com INDONESIA Thanatphat SUKSRICHAVALIT
tanyx@maybank.com.sg • Property Isnaputra ISKANDAR Head of Research (66) 2658 5000 ext 1401
(62) 21 8066 8680 thanaphat.s@maybank-ke.co.th
Fiona LIM LEE Yen Ling isnaputra.iskandar@maybank-ke.co.id • Media • Electronics
(65) 6320 1374 (603) 2297 8691 lee.yl@maybank-ib.com • Strategy • Metals & Mining • Cement
fionalim@maybank.com.sg • Glove • Ports • Shipping • Healthcare • Autos • Consumer • Utility Wijit ARAYAPISIT
• Petrochemicals (66) 2658 5000 ext 1450
STRATEGY Rahmi MARINA wijit.a@maybank-ke.co.th
Kevin WONG (62) 21 8066 8689 • Strategist
Anand PATHMAKANTHAN (603) 2082 6824 kevin.wong@maybank-ib.com rahmi.marina@maybank-ke.co.id
ASEAN • REITs • Technology • Banking & Finance Theerasate PROMPONG
(603) 2297 8783 (66) 2658 5000 ext 1400
anand.pathmakanthan@maybank-ib.com Jade TAM theerasate.p@maybank-ke.co.th
Aurellia SETIABUDI
(603) 2297 8687 jade.tam@maybank-ib.com (62) 21 8066 8691 • Equity Portfolio Strategist
FIXED INCOME • Consumer Staples & Discretionary aurellia.setiabudi@maybank-ke.co.id
• Property Apiwat TAVESIRIVATE
Winson PHOON, ACA Fahmi FARID (66) 2658 5000 ext 1310
(65) 6340 1079 (603) 2297 8676 fahmi.farid@maybank-ib.com Willy GOUTAMA apiwat.t@maybank-ke.co.th
winsonphoon@maybank.com • Software • Chartist and TFEX
(62) 21 8066 8500
willy.goutama@maybank-ke.co.id
SE THO Mun Yi TEE Sze Chiah Head of Retail Research VIETNAM
• Consumer
(603) 2074 7606 (603) 2082 6858 szechiah.t@maybank-ib.com
munyi.st@maybank-ib.com Quan Trong Thanh
Nik Ihsan RAJA ABDULLAH, MSTA, CFTe PHILIPPINES
(84 28) 44 555 888 ext 8184
(603) 2297 8694 Jacqui De JESUS Head of Research thanh.quan@maybank-kimeng.com.vn
nikmohdihsan.ra@maybank-ib.com (63) 2 8849 8844 • Banks
• Chartist jacquiannekelly.dejesus@maybank-atrke.com
• Strategy • Conglomerates Hoang Huy, CFA
Amirah AZMI (84 28) 44 555 888 ext 8181
(603) 2082 8769 amirah.azmi@maybank-ib.com Romel LIBO-ON hoanghuy@maybank-kimeng.com.vn
• Retail Research (63) 2 8849 8844 • Strategy
romel_libo-on@maybank-atrke.com
• Property • Telcos Le Nguyen Nhat Chuyen
(84 28) 44 555 888 ext 8082
Fredrick De GUZMAN chuyen.le@maybank-kimeng.com.vn
(63) 2 8849 8847 • Oil & Gas
fredrickdaniel.deguzman@maybank.com
• Consumer Nguyen Thi Sony Tra Mi
(84 28) 44 555 888 ext 8084
Bernadine B BAUTISTA mi.nguyen@maybank-kimeng.com.vn
(63) 2 8849 8847 • Consumer
bernadine.bautista@maybank.com
• Utilities Tyler Manh Dung Nguyen
(84 28) 44 555 888 ext 8180
Rachelleen RODRIGUEZ, CFA dung.nguyen@maybank-kimeng.com.vn
(63) 2 8849 8843 • Utilities • Property
rachelleen.rodriguez@maybank.com
• Banking & Finance Nguyen Thi Ngan Tuyen
Head of Retail Research
(84 28) 44 555 888 ext 8081
tuyen.nguyen@maybank-kimeng.com.vn
• Food & Beverage • Oil & Gas • Banking
Nguyen Thanh Lam

(84 28) 44 555 888 ext 8086
thanhlam.nguyen@maybank-kimeng.com.vn
• Technical Analysis
March 29, 2021 36

Corporate Day
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 security’s 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 jurisdiction’s 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 (collectively, “Representatives”) shall not be liable for any direct, indirect or consequential
losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior
notice.
This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”, “intend”, “plan”, “expect”,
“forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be achieved and other similar expressions. Such
forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to
differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims
any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of
unanticipated events.
MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from time to time participate or
invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit business from such issuers, and/or have a position or holding, or
other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securities mentioned in
the material presented in this report. One or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report to the extent
permitted by law.
This report is prepared for the use of MKE’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or
manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the actions of third parties in this respect.
This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where
such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under such circumstances as may be permitted by applicable law.
The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additional
disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report.
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.
Singapore
This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank KERPL”) in Singapore has no
obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact Maybank KERPL in Singapore in respect of any matters arising
from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore
Securities and Futures Act), Maybank KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.
Thailand
Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of Maybank Kim Eng Securities (Thailand)
Public Company Limited. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) accepts no liability whatsoever for the actions of third parties in this respect.
Due to different characteristics, objectives and strategies of institutional and retail investors, the research products of MBKET Institutional and Retail Research departments may differ in
either recommendation or target price, or both. MBKET reserves the rights to disseminate MBKET Retail Research reports to institutional investors who have requested to receive it. If you
are an authorised recipient, you hereby tacitly acknowledge that the research reports from MBKET Retail Research are first produced in Thai and there is a time lag in the release of the
translated English version.
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. MBKET does
not confirm nor certify the accuracy of such survey result.
The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by Thaipat Institute, is made in order to comply with the
policy and sustainable development plan for the listed companies of the Office of the Securities and Exchange Commission. Thaipat Institute made this assessment based on the information
received from the listed company, as stipulated in the form for the assessment of Anti-corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 56-2),
or other relevant documents or reports of such listed company. The assessment result is therefore made from the perspective of Thaipat Institute that is a third party. It is not an assessment
of operation and is not based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after that
date or when there is any change to the relevant information. Nevertheless, MBKET does not confirm, verify, or certify the accuracy and completeness of the assessment result.
US
This third-party research report is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended)
only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All
responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne by Maybank KESUSA. 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. All U.S. persons receiving and/or accessing this report and wishing to effect transactions in any security mentioned
within must do so with: Maybank Kim Eng Securities USA Inc. 400 Park Avenue, 11th Floor, New York, New York 10022, 1-(212) 688-8886 and not with, the issuer of this report.
March 29, 2021 37

Corporate Day
UK
This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regulated, by the Financial Conduct 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.
DISCLOSURES
Legal Entities Disclosures

Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938- H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of
Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This report is distributed in Singapore by Maybank KERPL (Co. Reg No 198700034E) which is
regulated by the Monetary Authority of Singapore. Indonesia: PT Maybank Kim Eng Securities (“PTMKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is
regulated by the Financial Services Authority (Indonesia). 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 Limited (License Number: 117/GP-UBCK) 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 and the Bombay Stock Exchange and is regulated by Securities and Exchange Board of India (“SEBI”) (Reg. No. INZ000010538). KESI is also registered with SEBI as Category 1
Merchant Banker (Reg. No. INM 000011708) and as Research Analyst (Reg No: INH000000057) 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 Conduct 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 29 March 2021, 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 parties and/or employees may from time to time have
interests and/or underwriting commitments in the securities mentioned in this report.
Hong Kong: As of 29 March 2021, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.
India: As of 29 March 2021, and at the end of the month immediately preceding the date of publication of the research report, KESI, authoring analyst or their associate / relative does not
hold any financial interest or any actual or beneficial ownership in any shares or having any conflict of interest in the subject companies except as otherwise disclosed in the research
report.
In the past twelve months KESI and authoring analyst or their associate did not receive any compensation or other benefits from the subject companies or third party in connection with the
research report on any account what so ever except as otherwise disclosed in the 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 analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s
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 of understanding and
assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and
forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a
structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase.
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 (including dividends)
HOLD Return is expected to be between 0% to 10% in the next 12 months (including dividends)
SELL Return is expected to be below 0% in the next 12 months (including 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.
March 29, 2021 38

Corporate Day
 Malaysia  Singapore  London  New York

Maybank Investment Bank Berhad Maybank Kim Eng Securities Pte Ltd Maybank Kim Eng Securities Maybank Kim Eng Securities USA
(A Participating Organisation of Maybank Kim Eng Research Pte Ltd (London) Ltd Inc
Bursa Malaysia Securities Berhad) 50 North Canal Road PNB House 400 Park Avenue, 11th Floor
33rd Floor, Menara Maybank, Singapore 059304 77 Queen Victoria Street New York, New York 10022,
100 Jalan Tun Perak, London EC4V 4AY, UK U.S.A.
50050 Kuala Lumpur Tel: (65) 6336 9090
Tel: (603) 2059 1888; Tel: (44) 20 7332 0221 Tel: (212) 688 8886
Fax: (603) 2078 4194 Fax: (44) 20 7332 0302 Fax: (212) 688 3500
Stockbroking Business:  Hong Kong  Indonesia  India

Level 8, Tower C, Dataran Maybank,
Kim Eng Securities (HK) Ltd PT Maybank Kim Eng Securities Kim Eng Securities India Pvt Ltd
No.1, Jalan Maarof 28/F, Lee Garden Three, Sentral Senayan III, 22nd Floor 1101, 11th floor, A Wing, Kanakia
59000 Kuala Lumpur
1 Sunning Road, Causeway Bay, Jl. Asia Afrika No. 8 Wall Street, Chakala, Andheri -
Tel: (603) 2297 8888
Hong Kong Gelora Bung Karno, Senayan Kurla Road, Andheri East,
Fax: (603) 2282 5136
Jakarta 10270, Indonesia Mumbai City - 400 093, India
Tel: (852) 2268 0800
Fax: (852) 2877 0104 Tel: (62) 21 2557 1188 Tel: (91) 22 6623 2600
Fax: (62) 21 2557 1189 Fax: (91) 22 6623 2604
 Philippines  Thailand  Vietnam  Saudi Arabia

Maybank ATR Kim Eng Securities Inc. Maybank Kim Eng Securities Maybank Kim Eng Securities Limited In association with
17/F, Tower One & Exchange Plaza (Thailand) Public Company Limited 4A-15+16 Floor Vincom Center Dong Anfaal Capital
Ayala Triangle, Ayala Avenue 999/9 The Offices at Central World, Khoi, 72 Le Thanh Ton St. District 1 Ground Floor, KANOO Building
Makati City, Philippines 1200 20th - 21st Floor, Ho Chi Minh City, Vietnam No.1 - Al-Faisaliyah,Madina Road,
Rama 1 Road Pathumwan, P.O.Box 126575 Jeddah 21352
Tel: (63) 2 8849 8888 Bangkok 10330, Thailand Tel : (84) 844 555 888 Kingdom of Saudi Arabia
Fax: (63) 2 8848 5738 Fax : (84) 8 38 271 030
Tel: (66) 2 658 6817 (sales) Tel: (966) 920023423
Tel: (66) 2 658 6801 (research)
 South Asia Sales Trading  North Asia Sales Trading

Kevin Foy Andrew Lee
Regional Head Sales Trading andrewlee@kimeng.com.hk
kevinfoy@maybank-ke.com.sg Tel: (852) 2268 0283
Tel: (65) 6636-3620 US Toll Free: 1 877 837 7635
US Toll Free: 1-866-406-7447
Indonesia London
Iwan Atmadjaja Greg Smith
iatmadjaja2@bloomberg.net gsmith@maybank-ke.co.uk
(62) 21 8066 8555 Tel: (44) 207-332-0221
New York India

James Lynch Sanjay Makhija
jlynch@maybank-keusa.com sanjaymakhija@maybank-ke.co.in
Tel: (212) 688 8886 Tel: (91)-22-6623-2629
Philippines
Keith Roy
keith_roy@maybank-atrke.com
Tel: (63) 2 848-5288
www.maybank-ke.com | www.maybank-keresearch.com
March 29, 2021 39

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Thai Market Compass

Broader ESG adherence gains momentum in Thailand Analysts

global manufacturing activity. Meanwhile, TU is coming off the situation

of high demand due to pantry-loading caused by Covid-19 lockdowns and 9

momentum falling. However, these two companies made it to the Gold

Growing Sustainability Finance lowers funding costs

Takeaways from the meeting ............................................................................................................ 5

Advanced Info Service Plc (ADVANC TB) ................................................................................................ 5

March 29, 2021 2

Source: SET Source: SET

Source: Sustainalytics Source: Sustainalytics, MKE-ISR

March 29, 2021 3

Fig 4: Thai Green Corp Participants - ESG ranking based on Sustainalytics

Source: TU presentation, Bloomberg

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Takeaways from the meeting

Advanced Info Service Plc (ADVANC TB)

Competition overall remains intense as subscribers continue to optimize use of

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Recommendation: We have a BUY on ADVANC with a DCF-based target of

Fig 6: AIS Materiality matrix Fig 7: 2020 highlights

Source: Company Source: Company

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Fig 8: Identified risks and opportunities under the ESG framework

Fig 9: ADVANC’s financial summary Fig 10 : Share price performance

Revenue 180,894 172,890 171,275 176,413 183,095 230 160

EBITDA 78,987 90,034 77,258 78,980 80,607 220 150

ROAA (%) 10.8 8.6 8.4 9.3 9.6

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Advanced Info Service (ADVANC TB) maria.l@maybank-ke.co.th

Business Model & Industry Issues

Material E issues Key G metrics and issues

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Energy Absolute Plc (EA TB)

Transition from simple power producer to an energy service provider.

Energy storage system long-term target of 50GwHr. EA acquired 70% in

2021 capex focused on EV ecosystem and power. Management has guided

Recommendation: We have a BUY on EA with a TP of THB47.5, pegged to 25.5x

Source: Company Source: Company

Fig 13: The EV vehicle production and use target of Thailand

'000units EV production and use targets

Source: Ministry of Industry

Fig 14: EA’s financial summary Fig 15 : Share price performance

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Energy Absolute (EA TB) jaroonpan.w@maybank-ke.co.th

Business Model & Industry Issues

Material E issues Key G metrics and issues

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Global Power Synergy Plc (GPSC TB)

Renewable strategy – Global Renewable Power (GRP), a 50/50 joint venture

IU outlook – Management has guided IU FY21 volumes will improve by 4% YoY.

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Recommendation: Maintain BUY and DCF-based TP of THB100 (7.7% WACC, 2%

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Fig 18: Sustainability

Fig 19: GPSC’s financial summary Fig 20 : Share price performance

Revenue 66,562 69,578 77,332 76,631 76,452 90 280

EBITDA 17,312 21,287 21,226 22,883 23,342 80 240

Core net profit 3,743 7,507 8,270 9,710 9,723 70 200

Source: Company, Maybank Kim Eng

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Global Power Synergy (GPSC TB) Kaushal.l@maybank-ke.co.th