RESULTS

27 กุมภาพั นธ์ 2566

Regional Container Lines

RCL TB / RCL.BK

Sector: Logistics UNDERWEIGHT

กาไรที่สวยงามในปี 2565 จะพลิกกลับขาดทุน คาแนะนาพื้ นฐาน: ขาย
ในปี 2566 เป้าหมายพื้ นฐาน: 27.00 บาท
ราคา (23/2/66): 31.75 บาท
กาไรลดลง YoY และ QoQ Key statistics
Market cap Bt26.3bn USD0.8bn
RCL ประกาศก าไรสุ ท ธิ ไตรมาส 4/65 ที่ 2,616 ล้ า นบาท ลดลง 68% YoY 12-mth price range Bt26.3/Bt52.3
และ 59% QoQ ซึ่ ง สู ง กว่ า ที่ เราคาด 121% หากไม่ ร วมรายการพิ เศษ ก าไร 12-mth avg daily volume Bt208m USD6.0m
# of shares (m) 829
หลักจะอยู่ที่ 2,388 ล้านบาท ลดลง 67% YoY และ 63% QoQ ซึ่งสูงกว่าที่เรา Est. free float (%) 47.5
คาด 102% ทั้ ง ก าไรหลั ก และก าไรสุ ท ธิ ม ากกว่ า ที่ เราคาดเนื่ องจากรายได้ ที่ Foreign limit (%) 30.0

มากกว่าคาด Share price perf. (%) 1M 3M 12M

Relative to SET 2.9 7.7 (30.8)
บริ ษั ท ประกาศจ่ า ยเงิ น ปั น ผลส าหรั บ ไตรมาส 4/65 ที่ 3 บาท/หุ้ น (จะขึ้ น Absolute - 8.5 (33.5)

เครื่อ งหมาย XD ในวันที่ 16 มี.ค. และจะจ่ายเงิน ปัน ผลในวันที่ 19 พ.ค.) คิ ด

Financial summary
เป็นผลตอบแทน 9.4%
FY Ended 31 Dec 2022 2023E 2024E 2025E
Revenues (Btm) 52,074 20,942 20,324 21,554
ประเด็นสาคัญจากผลประกอบการ Net profit (Btm) 24,625 (1,870) 91 839
EPS (Bt) 29.71 (2.26) 0.11 1.01
รายได้ลดลง 29% YoY และ 31% QoQ เนื่องจากค่าระวางเรือตู้คอนเทนเนอร์ EPS grow th (%) +37% n.m. n.m. +818.3%

ที่ลดลงซึ่งกลบผลของการขยายกองเรือ อัตรากาไรขั้นต้นอยู่ที่ 29.6% ลดลง

Core profit (Btm) 23,550 (1,870) 91 839
Core EPS (Bt) 28.42 (2.26) 0.11 1.01
จาก 57.5% ในไตรมาส 4/64 และ 48.8% ในไตรมาส 3/65 เนื่องจากรายได้ที่ Core EPS grow th (%) +38% n.m. n.m. +818.3%
PER (x) 1.1 n.m. 285.6 31.1
ลดลง (จากค่ าระวางเรือที่ ปรับตั วลดลง) และต้ นทุ นเชื้อเพลิ งที่ สูงขึ้น อั ต รา PBV (x) 0.6 0.6 0.6 0.6

กาไรสุทธิอยู่ที่ 26.9% ปรับตัวลงจาก 59.4% ในไตรมาส 4/64 และ 45.3% ใน

Dividend (Bt) 8.0 0.0 0.0 0.0
Dividend yield (%) 25.4 0.0 0.0 0.0
ไตรมาส 3/65 สอดคล้องไปกับการปรับตัวของอัตรากาไรขั้นต้น ROE (%) 69.2 (4.2) 0.2 1.9

แนวโน้ม CG / CAC Anti-Corruption Certification

ค่าระวางเรือตู้คอนเทนเนอร์กลับสู่ระดับปกติแล้ว และเราไม่เห็นปัจจัยกระตุ้นที่ /
-

ชั ด เจนใดๆ ที่ จ ะหนุ น ค่ า ระวางเรือ ตู้ ค อนเทนเนอร์ในระยะสั้ น ในขณะที่ ร าคา

เชื้อเพลิงที่ สูงจะกดดันอัตรากาไรขั้นต้ นของเรือขนส่งตู้คอนเทนเนอร์ ดั งนั้ น
เราคาดว่ า RCL จะรายงานขาดทุ น ในไตรมาส 1/66 พลิ ก กลั บ จากก าไรทั้ ง
YoY และ QoQ

สิ่งที่เปลี่ยนแปลง
เรายั ง คงประมาณการขาดทุ น หลั ก ในปี 2566 ของเราที่ 1,870 ล้ า นบาท
ดังเดิมไม่เปลี่ยนแปลง (พลิกกลับจากรายงานกาไร YoY) และราคาเป้าหมาย
ของเราคงเดิมไม่เปลี่ยนแปลงที่ 27 บาท

คาแนะนา
ผลขาดทุนจะถูกรายงานในไตรมาส 1/66 เป็นต้ น ไป และแม้จะมีเงินสดในมือ
จานวนมหาศาล (รายงานเงินสดและรายการเทียบเท่า ณ สิ้นปี 2565 ที่ 1.95
หมื่ นล้ า นบาท เท่ า กั บ เงิ น สดต่ อ หุ้ น ที่ 23.51 บาท) เงิ น สดดั ง กล่ า วจะค่ อ ยๆ
ลดลง เนื่องจากบริษัทต้องปฏิบัติตามข้อผูกพั นในการชาระค่างวดสาหรับเรือ
ใหม่ที่สั่งซื้อ (รวมมูลค่าทั้งหมดราว 1.36 หมื่นล้านบาท ที่ต้องชาระระหว่างปี กิจพั ฒน วงษ์เมตตา
2566-2568) ด้วยเหตุนี้ เราจึงคงคาแนะนา ขาย นักวิเคราะห์การลงทุนปัจจัยพื้ นฐานด้านหลักทรัพย์
Kijapat.won@bualuang.co.th
+66 2 618 1951

Please see final page for additional important disclosures. Bualuang Securities Public Company
See disclaimer at the end of report Limited (“BLS”) is a foreign broker-dealer unregistered in the USA. BLS research is prepared by
research analysts who are not registered in the USA. BLS research is distributed in the USA
pursuant to Rule 15a-6 of the Securities Exchange Act of 1934.
 | RESEARCH

RCL: Financial Tables – Year

PROFIT & LOSS (Btm ) 2021 2022 2023E 2024E 2025E
Revenue growth and asset turnover
Revenue 37,979 52,074 20,942 20,324 21,554
Cost of sales and services (19,176) (26,511) (20,789) (18,133) (18,505) Revenue growth (%) (LHS)
18,803 25,562 153 2,192 3,049 % x
Gross profit Asset turnover (x) (RHS)
SG&A (1,689) (2,035) (2,137) (2,244) (2,356) 150 1.5
EBIT 17,114 23,527 (1,984) (52) 693
100
Interest expense (197) (222) (139) (131) (123)
1.0
Other income/exp. 28 145 110 140 133 50
EBT 16,945 23,451 (2,013) (43) 704
0
Corporate tax (19) (32) 2 (0) (1) 0.5
After-tax net profit (loss) 16,926 23,419 (2,011) (43) 703 (50)
Minority interest (4) (2) 0 0 0
140 134 141 134 136 (100) 0.0
Equity earnings from affiliates
910 1,075 0 0 0 23E 24E 25E
Extra items
Net profit (loss) 17,973 24,625 (1,870) 91 839 A/C receivable & A/C payable days
Reported EPS 21.69 29.71 (2.26) 0.11 1.01
Fully diluted EPS 21.69 29.71 (2.26) 0.11 1.01 AR / Sales (days)
Core net profit 17,063 23,550 (1,870) 91 839 AP / Cost of Goods (days)
Core EPS 20.59 28.42 (2.26) 0.11 1.01 140
EBITDA 19,725 27,247 253 2,575 3,656 120
KEY RATIOS 100
Revenue grow th (%) 120.9 37.1 (59.8) (2.9) 6.0 80
Gross margin (%) 49.5 49.1 0.7 10.8 14.1 60
EBITDA margin (%) 51.9 52.3 1.2 12.7 17.0 40
Operating margin (%) 45.1 45.2 (9.5) (0.3) 3.2 20
Net margin (%) 47.3 47.3 (8.9) 0.4 3.9 0
Core profit margin (%) 44.9 45.2 (8.9) 0.4 3.9
23E 24E 25E
ROA (%) 63.4 50.4 (3.3) 0.2 1.6
ROCE (%) 78.8 58.0 (3.7) 0.2 1.7 Profit margins
Asset turnover (x) 1.3 1.1 0.4 0.4 0.4
Gross margin (%)
Current ratio (x) 0.9 1.7 3.4 2.4 2.0 % EBIT margin (%)
Gearing ratio (x) 0.2 0.2 0.1 0.1 0.1 60
Interest coverage (x) 86.7 106.2 n.m. n.m. 5.7 50
BALANCE SHEET (Btm ) 40
Cash & Equivalent 9,750 19,481 13,228 9,609 11,852 30
Accounts receivable 4,792 4,718 1,898 1,842 1,953 20
Inventory 554 669 669 669 669 10
PP&E-net 15,510 22,172 26,172 29,487 27,904 0
8,107 11,891 11,891 11,891 11,891 (10)
Other assets
38,713 58,932 53,858 53,498 54,269
(20)
Total assets
6,667 5,249 4,254 3,803 3,734 23E 24E 25E
Accounts payable
ST debts & current portion 2,313 1,834 2,313 2,313 2,313
Capital expenditure
Long-term debt 3,422 6,110 3,422 3,422 3,422
Other liabilities 398 444 444 444 444 Capex (Bt,bn)
%
Total liabilities 12,800 13,637 10,433 9,982 9,914 Capex / Net PPE (%)
12 50
Paid-up capital 829 829 829 829 829
Share premium 4,983 4,983 4,983 4,983 4,983 10 40
Retained earnings 19,382 38,217 36,347 36,438 37,278 8
Shareholders equity 25,906 45,293 43,422 43,514 44,353 30
Minority interests 7 2 2 2 2 6
Total Liab.&Shareholders' equity 38,713 58,932 53,858 53,498 54,269 20
4
CASH FLOW (Btm ) 2 10
Net income 17,973 24,625 (1,870) 91 839
Depreciation and amortization 2,611 3,720 2,237 2,627 2,963 0 0
Change in w orking capital 45 (1,450) 1,825 (395) (180) 23E 24E 25E
FX, non-cash adjustment & others (361) (858) 54 16 14 Debt serviceability
Cash flow s from operating activities 20,268 26,038 2,246 2,339 3,637
Capex (Invest)/Divest (5,857) (10,333) (6,237) (5,942) (1,379) (ST debt + Interest) / EBITDA
x
Others 27 143 85 114 108 (Debt + Interest) / EBITDA
Cash flow s from investing activities (5,831) (10,190) (6,152) (5,828) (1,271) 25
Debt financing (repayment) (4,373) (316) (2,347) (131) (123)
Equity financing 3 4 5 6 6 20
Dividend payment (2,901) (5,801) 0 0 0 15
Others. (3) (4) (5) (6) (6)
Cash flow s from financing activities (7,274) (6,117) (2,347) (131) (123) 10
Net change in cash 7,164 9,731 (6,254) (3,619) 2,243 5
Free cash flow (Btm ) 14,411 15,705 (3,991) (3,603) 2,257
0
FCF per share (Bt) 17.4 18.9 (4.8) (4.3) 2.7
23E 24E 25E
Key assum ptions 2021 2022 2023E 2024E 2025E
Dividend payout
Lifting (TEUs) 2,197,723 2,228,491 2,284,052 2,284,052 2,284,052
Shanghai Containerized Freight Index 3,754 3,443 1,203 1,125 1,125 %
Dividend (Bt) Payout ratio (%)
10.00 35
8.00
30
8.00 6.50 25
6.00 20
4.00 15
10
2.00
0.00 0.00 0.00 0.00 0.00 5
0.00 0
23E 24E 25E

••• RCL 2
 | RESEARCH

RCL: Financial Tables – Quarter

QUARTERLY PROFIT & LOSS (Btm ) 4Q21 1Q22 2Q22 3Q22 4Q22 Revenue trend
Revenue 13,662 14,715 13,428 14,190 9,741
Bt,bn Revenue (Bt,bn) (LHS)
Cost of sales and services (5,807) (6,095) (6,297) (7,261) (6,859) %
Revenue growth (% YoY)
Gross profit 7,855 8,621 7,131 6,929 2,882 16.0 200
SG&A (599) (472) (492) (543) (529) 14.0
12.0 150
EBIT 7,256 8,149 6,640 6,386 2,353
Interest expense (70) (51) (58) (60) (53) 10.0 100
8.0
Other income/exp. 10 12 15 42 76 50
6.0
EBT 7,196 8,110 6,597 6,369 2,376 4.0 0
Corporate tax (6) (3) (8) (9) (13) 2.0
After-tax net profit (loss) 7,190 8,106 6,589 6,360 2,363 0.0 (50)
Minority interest (6) 0 (4) (1) 2 2Q21 4Q21 2Q22 4Q22
Equity earnings from affiliates 47 40 34 37 23 Revenue trend (accumulated)
Extra items 880 76 739 32 228
Bt,bn Accum. Revenue (Bt,bn)
Net profit (loss) 8,111 8,223 7,358 6,428 2,616 %
% of FY Revenue
Reported EPS 10 10 9 8 3 60
Fully diluted EPS 9.79 9.92 8.88 7.76 3.16 100 100 120
50
Core net profit 7,231 8,146 6,620 6,396 2,388 81 100
40 64 80
Core EPS 8.73 9.83 7.99 7.72 2.88 54
EBITDA 9,202 9,112 8,344 7,470 3,653 30 60
40
20 28 40
KEY RATIOS 10 20
Gross margin (%) 57.5 58.6 53.1 48.8 29.6
0 0
EBITDA margin (%) 67.4 61.9 62.1 52.6 37.5 2Q21 4Q21 2Q22 4Q22
Operating margin (%) 53.1 55.4 49.4 45.0 24.2
Net margin (%) 59.4 55.9 54.8 45.3 26.9 Net profit trend (accumulated)
Core profit margin (%) 52.9 55.4 49.3 45.1 24.5
Bt,m Accum. Profit (Bt,m)
BV (Bt) 31.3 41.1 49.5 59.2 54.7 %
% of FY Profit
ROE (%) 144.1 109.7 78.4 57.1 22.2 30,000
100 100 120
ROA (%) 95.5 77.6 58.6 44.1 17.3 25,000 89
Current ratio (x) 1.7 2.5 2.6 3.1 3.4 100
20,000 63
Gearing ratio (x) 0.2 0.2 0.2 0.1 0.2 80
55
15,000 34 60
Interest coverage (x) 103.7 159.5 115.2 107.2 44.1 33
10,000 40
QUARTERLY BALANCE SHEET (Btm ) 5,000 20
Cash & Equivalent 9,750 13,847 16,626 20,166 19,481
0 0
Accounts receivable 4,792 5,104 4,965 5,041 4,718 2Q21 4Q21 2Q22 4Q22
Inventory 554 695 796 858 669
PP&E-net 15,510 15,205 16,807 20,467 22,172 Gross profit margin
Other assets 8,107 11,200 15,143 15,685 11,891
FY GPM (%)
Total assets 38,713 46,051 54,338 62,217 58,932 %
Gross margin (%)
Accounts payable 6,667 8,185 3,954 3,783 3,734 70
ST debts & current portion 2,313 2,313 2,313 2,313 2,313 60
Long-term debt 3,422 3,816 4,234 4,488 6,110 50
Other liabilities 398 (2,349) 2,789 2,555 1,479 40
Total liabilities 12,800 11,965 13,290 13,140 13,637 30
Paid-up capital 829 829 829 829 829 20
Share premium 4,983 4,983 4,983 4,983 4,983 10
Retained earnings 19,382 27,605 32,477 37,454 38,217 0
Shareholders equity 25,906 34,079 41,045 49,074 45,293 2Q21 4Q21 2Q22 4Q22
Minority interests 7 7 2 4 2
Total Liab.&Shareholders' equity 38,713 46,051 54,338 62,217 58,932 EBIT margin
% FY EBIT margin (%)
Key operating data 4Q21 1Q22 2Q22 3Q22 4Q22 EBIT margin (%)
Lifting (TEUs) 586,300 572,000 578,356 575,706 575,706 60
Shanghai Containerized Freight Index 4,692 4,867 4,210 3,279 1,417 50
40
30
20
10
0
2Q21 4Q21 2Q22 4Q22

Company profile
RCL is a Thailand-based container shipping line that listed on the SET in 1988. Its core business is the carriage of Shipper Owned Containers (SOC)
and its own Carrier Owned Containers (COC). It covers ports in Asia, the Indian subcontinent, and the Middle East.

••• RCL 3
 | RESEARCH

Figure 1 : 4Q22 results

FY Ended 31 Dec (Btm ) 4Q22 4Q21 YoY % 3Q22 QoQ % 2022 2021 YoY %

Incom e Statem ent

Revenue 9,741 13,662 (29) 14,190 (31) 52,074 37,979 37 • Revenue declined YoY and QoQ,
Cost of sales and services (6,859) (5,807) 18 (7,261) (6) (26,511) (19,176) 38 due to lower freight rates
EBITDA 3,653 9,202 (60) 7,470 (51) 28,580 20,804 37
SG&A (529) (599) (12) (543) (2) (2,035) (1,689) 21
• Costs rose YoY, due to higher fuel
EBIT 2,353 7,256 (68) 6,386 (63) 23,527 17,114 37
Interest expense (53) (70) (24) (60) (10) (222) (197) 12
prices
Other income/exp. 76 10 680 42 80 145 28 415
Equity earnings from affiliates 23 47 (51) 37 (37) 134 140 (4)
Extra items 228 880 (74) 32 608 1,075 910 18
EBT 2,376 7,196 (67) 6,369 (63) 23,451 16,945 38
Corporate tax (13) (6) 127 (9) 43 (32) (19) 73
Minority interest 2 (6) nm (1) nm (2) (4) (36)
Net profit (loss) 2,616 8,111 (68) 6,428 (59) 24,625 17,973 37
Reported EPS 3.16 9.79 (68) 7.76 (59) 29.71 21.69 37
Core net profit 2,388 7,231 (67) 6,396 (63) 23,550 17,063 38

Key ratios • GM and NM declined YoY and

Gross margin (%) 29.6 57.5 48.8 49.1 49.5 QoQ, due to lower freight rates in
EBITDA margin (%) 37.5 67.4 52.6 54.9 54.8 the face of higher fuel prices
EBIT margin (%) 24.2 53.1 45.0 45.2 45.1
SG&A / Revenue (%) 5.4 4.4 3.8 3.9 4.4
Tax rate (%) 0.5 0.1 0.1 0.1 0.1
Net margin (%) 26.9 59.4 45.3 47.3 47.3
Current ratio (x) 3.4 1.7 3.1 3.4 1.7 • Both net and core earnings beat
Gearing ratio (x) 0.2 0.2 0.1 0.2 0.2 our estimates
Interest coverage (x) 44.1 103.7 107.2 106.2 86.7

Balance Sheet
Cash & Equivalent 19,481 9,750 100 20,166 (3)
Total assets 58,932 38,713 52 62,217 (5)
ST debts & current portion 2,313 2,313 0 2,313 0
Long-term debt 6,110 3,422 79 4,488 36
Total liabilities 13,637 12,800 7 13,140 4
Retained earnings 38,217 19,382 97 37,454 2
Shareholders equity 45,293 25,906 75 49,074 (8)
Minority interests 2 7 (72) 4 (46)
BV (Bt) 54.7 31.3 75 59.2 (8)

Source: Bualuang Research estimates

••• RCL 4
 | RESEARCH

ESG Total Score = 2.8/3

Environmental Score 2.0

RCL complies with international laws, country-

specific laws, and international conventions, such
as the rules of the International Maritime
Organization. The company’s ships comply with
14.1 garbage disposal under Annex V of the
International Convention for Prevention of
Pollution from Ships or MARPOL 73/78. All RCL’s
vessels use compliant fuels (a sulphur content of
less than 0.50% m/m). Port State Control
Inspections continued throughout 2021; all its
ships were found to comply with international and
local regulations.

Social Score 3.0 Governance

Governance Score 2.0

RCL has set a policy for social management.
which includes respect for human rights and
fair treatment of labor, including participation in
community and social development. The firm is
committed to maintaining a working environ-
ment that is free of unlawful discrimination. And
through 2021, the Company organized social
activities such as contributed Bt2m to the
Chaipattana Foundation, provided medical
appliances for COVID-19 prevention to some
govt entities and hospitals, and provided three
fully funded master's degree scholarships for
students.
RCL recognizes its responsibilities toward all its
shareholders and stakeholders. It established a
Corporate Governance policy in 2005. In
addition, the Board of Directors places great
emphasis on the importance of complying with
corporate governance principles in order to
increase the confidence of shareholders,
investors, and all other stakeholders.

••• RCL 5
 | RESEARCH

Bualuang Securities Public Company Limited DISCLAIMER

BUALUANG SECURITIES PUBLIC COMPANY LIMITED (BLS) is a subsidiary of BANGKOK BANK PUBLIC COMPANY LIMITED (BBL). This document
is produced based upon sources believed to be reliable but their accuracy, completeness or correctness is not guaranteed. The statements or
expressions of opinion herein were arrived at after due and careful consideration to use as information for investment. Expressions of opinion contained
herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitati on of an offer to buy or sell
any securities. The use of any information shall be at the sole discretion and risk of the user.

BUALUANG SECURITIES PUBLIC COMPANY LIMITED MAY BE IN RELATIONSHIP WITH THE SECURITIES IN THIS REPORT. “Opinions,
projections and other information contained in this report are based upon sources believed to be accurate including the draft prospectus, but no
responsibility is accepted for any loss occasioned by reliance placed upon the contents hereof. Bualuang Securities Public Company Limited may from
time to time perform investment, advisory or other services for companies mentioned in this report, as well as dealing (as principal or otherwise) in, or
otherwise being interested in, any securities mentioned herein, This report does not constitute a solicitation to buy or sell any securities”. Investors
should carefully read details in the prospectus before making investment decision.

BUALUANG SECURITIES PUBLIC COMPANY LIMITED MAY ACT AS MARKET MAKER AND ISSUER OF DWs, AND ISSUER OF STRUCTURED
NOTES ON THESE SECURITIES. The company may prepare the research reports on those underlying securities. Investors should carefully read the
details of the derivative warrants and structured notes in the prospectus before making investment decisions.

ADVANC AMATA AOT BDMS BH CBG CENTEL CPALL GLOBAL GPSC IRPC KBANK KCE KTC MINT
PTG PTT PTTEP PTTGC SCB SPRC TOP WHA ESSO STA BGRIM GULF MTC AWC CRC
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INTUCH RATCH VGI SCGP TQM COM7 DOHOME JMT CHG TMB BAM BCP AP KTB KKP
OR BEM GUNKUL EA SPALI RBF STGT MEGA JMART BEC SYNEX BLA KEX RCL SINGER
STARK TIDLOR FORTH TIPH AAV DELTA BCPG SABUY THG CKP

BUALUANG SECURITIES PUBLIC COMPANY LIMITED IS OR MAY BE AN UNDERWRITER/CO-UNDERWRITER/JOINT LEAD IN RESPECT OF

THE INITIAL PUBLIC OFFERING (IPO) OF SECURITIES.

Lead underwriter/
Financial Advisor Underwriter/
Co-underwriter
MEB

CG Rating

Score Range Score Range Description

90 – 100 Excellent
80 – 89 Very Good
70 – 79 Good
60 – 69 Satisfactory
50 – 59 Pass
Below 50 No logo given N/A

Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC)
under Thai Institute of Directors
• companies that have declared their intention to join CAC, and
• companies certified by CAC.

••• RCL 6
 | RESEARCH

CORPORATE GOVERNANCE REPORT DISCLAIMER

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does not warrant or guarantee the accuracy or completeness of its research reports. Morgan Stanley reserves copyright and other proprietary rights in
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Corporate Governance Report disclaimer

The disclosure of the survey result of the Thai Institute of Directors Association (IOD) regarding corporate governance is made pursuant to the policy of
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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 result may be
changed after that date. Bualuang Securities Public Company Limited neither confirms nor certifies the accuracy of such survey results.

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relevant institution as disclosed by the Office of the Securities and Exchange Commission, is made in order to comply with the policy and sustainable
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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),
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BUALUANG RESEARCH – RECOMMENDATION FRAMEWORK

STOCK RECOMMENDATIONS SECTOR RECOMMENDATIONS

BUY: Expected positive total returns of 15% or more over the next 12
months.
HOLD: Expected total returns of between -15% and +15% over the next 12
months.
SELL: Expected negative total returns of 15% or more over the next 12
months.
TRADING BUY: Expected positive total returns of 15% or more over the next
3 months.
OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is
expected to outperform the relevant primary market index over the next 12 months.
NEUTRAL: The industry, as defined by the analyst's coverage universe, is
expected to perform in line with the relevant primary market index over the next 12
months.
UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is
expected to underperform the relevant primary market index over the next 12
months.

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 | RESEARCH

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