SELL

(Unchanged)

TP: Bt 155.00
Downside : -15.1%

(From: Bt150.00 )

21 FEBRUARY 2014

Change in Numbers

Big C Supercenter Pcl (BIGC TB)

Tough year ahead
While we view BIGCs cost-optimization initiatives to gradually improve margin positively, the hefty scaling back of its store expansion plan leads us to forecast uninspiring growth at an 8% three-year EPS CAGR. We regard the stock as expensive at a 2.5x three-year PEG ratio. Maintain SELL with higher Bt155.0 TP.
PHANNARAI TIYAPITTAYARUT
662 617 4900 phannarai.von@thanachartsec.co.th

Earnings revisions
BIGCs 4Q13 came in better than wed expected on a sudden jump in gross margin to 18.3% from 15.2% in 4Q12 and 13.2% in 3Q13 on the back of stepped-up rebate and cost reduction initiatives. We lift our 2014-16 earnings forecasts by 6-8% to reflect the cost-cutting schemes as: 1) we boost our gross margin assumption by 90-103bp p.a., 2) we assume a lower SG&A/sales ratio over the long term. Nonetheless, we lower our new stores assumption for this year to come into line with BIGCs latest plan and also bring down new store numbers in 2015-16F. Our 12month DCF-based TP is raised by 3% to Bt155.0/share.

COMPANY VALUATION
Y/E Dec (Bt m) Sales Net profit Consensus NP Diff frm cons (%) Norm profit Prev. Norm profit Chg frm prev (%) Norm EPS (Bt) Norm EPS grw (%) Norm PE (x) EV/EBITDA (x) P/BV (x) Div yield (%) ROE (%) Net D/E (%) 2013A 2014F 2015F 2016F

118,177 126,634 134,511 145,208 6,976 7,217 7,329 (1.5) 7,217 6,700 7.7 8.7 3.5 20.9 11.7 3.6 1.4 18.2 33.3 7,973 8,325 (4.2) 7,973 7,387 7.9 9.7 10.5 18.9 10.4 3.2 1.6 17.7 18.5 8,905 9,969 (10.7) 8,905 8,395 6.1 10.8 11.7 16.9 9.1 2.8 1.8 17.5 1.8

Thanachart Securities

6,976

8.5 13.6 21.6 12.9 4.1 1.4 20.3 51.8

Cost optimization on the way

In 2013, BIGC adopted more than 60 cost optimization and productivity enhancement strategies to improve gross margin and reduce expenses, i.e. replacing fluorescent lamps with LED lights, using voice picking at distribution centers (DC), improving fresh food quality controls and reducing shrinkage. At the same time, it has been working harder on carrying out co-promotions with suppliers. This year, it plans to further improve supply chain management by opening two new DCs, one for Mini Big C stores in 2Q14 and another for fresh foods late this year. We expect it to incur higher extra expenses in the early stage of implementation before a gradual improvement in profitability thereafter.

PRICE PERFORMANCE
(Bt/shr) 270 250 230 210 190 170 150 Feb-13 BIGC Rel to SET In dex (%)

Store expansion targets cut

In the current consumption slowdown environment given low GDP growth, problems with rice pledging and the political turmoil, BIGC has put the brakes on its plan to ramp up store expansion into 2016 by cutting back this years expansion targets to four hypermarkets, eight Big C Markets, 40 Mini Big Cs and 20 Pure drugstores, from six, 12, 153 and 41 stores in 2013. It looks for total sales growth of 6-7% with 2% same-store sales (SSS) and EBITDA margin to fall from 11.3% in 2013 to 11.1% this year. This reflects BIGCs prediction for a very tough year ahead.

Jun-13

Oct-13

15 10 5 0 (5) (10) (15) Feb-14

COMPANY INFORMATION
Price as of 20-Feb-14 (Bt) Market cap (US$ m) Listed shares (m shares) Free float (%) Avg daily turnover (US$ m) 12M price H/L (Bt) Sector Major shareholder 182.50 4,621.9 825.0 41.4 1.8 252.0/163.0 Retail Casino Group 60.0%

Maintain SELL
Our earnings upgrades dont lead us to change our SELL call on the counter. We regard the hypermarket segment as very competitive with BIGC competing in a volume growth game. We forecast the companys slower expansion clip to lead to unexciting EPS growth of 8% p.a. in 2013-16F. Despite what we view as an inexpensive 2014F PE of 20.9x versus the average for its peers of 25.7x, its three-year PEG of 2.5x looks dear to us. We project only 3.5% EPS growth this year based on our assumptions of flat SSS and gross margin maintaining the level from last year.

Sources: Bloomberg, Company data, Thanachart estimates

This report is prepared by Thanachart Securities. Please contact our salesperson for authorisation. Please see the important notice on the back page

COMPANY NOTE

BIGC

PHANNARAI TIYAPITTAYARUT

Ex 1: Key Assumption Changes

2014F # New stores New - Hypermarket - Big C Market - Mini Big C - Pure # New stores - Old - Hypermarket - Big C Market - Mini Big C - Pure # Stores (YE) New - Hypermarket - Big C Market - Mini Big C - Pure # Stores (YE) - Old - Hypermarket - Big C Market - Mini Big C - Pure SSS (%) - New - Old Gross margin (%) - New - Old Change (bp) SG&A/Sales (%) - New - Old Change (bp) EBITDA margin (%) - New - Old Change (bp) Norm profit (Bt m) - New - Old Change (%) 7,217 6,700 7.7 7,973 7,387 7.9 8,905 8,395 6.1 9,882 9,484 4.2 10,720 10,200 5.1 11,343 10,814 4.9 11,931 11,405 4.6 12,488 11,925 4.7 13,069 12,451 5.0 13,684 13,003 5.2 14,330 13,596 5.4 11.1 11.1 (2) 11.3 11.1 29 11.4 11.3 11 11.6 11.6 (4) 12.1 11.9 13 12.5 12.3 20 12.9 12.6 29 13.4 13.0 38 13.8 13.3 48 14.2 13.7 58 14.7 14.1 59 17.8 17.7 3 17.8 17.8 (3) 17.7 17.9 (17) 17.6 17.9 (30) 17.6 18.0 (43) 17.6 18.1 (56) 17.5 18.2 (69) 17.5 18.4 (82) 17.5 18.5 (95) 17.5 18.6 (108) 17.5 18.8 (121) 14.97 14.06 90 14.99 13.96 103 14.99 13.96 103 15.01 13.99 102 15.02 14.00 101 15.02 14.02 100 15.03 14.04 100 15.04 14.05 99 15.05 14.07 98 15.06 14.08 97 15.06 14.10 96 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 125 45 428 173 131 65 578 214 137 90 728 255 140 93 768 296 143 96 808 337 145 99 848 378 145 102 888 419 145 104 928 460 145 106 968 501 145 109 1,009 542 145 113 1,051 583 123 38 318 152 128 50 418 193 133 65 568 234 136 68 608 275 139 71 648 316 141 74 688 357 141 77 728 398 141 79 768 439 141 81 808 480 141 84 849 521 141 88 891 562 6 15 150 41 6 20 150 41 6 25 150 41 3 3 40 41 3 3 40 41 2 3 40 41 0 3 40 41 0 2 40 41 0 2 40 41 0 3 41 41 0 4 42 41 4 8 40 20 5 12 100 41 5 15 150 41 3 3 40 41 3 3 40 41 2 3 40 41 0 3 40 41 0 2 40 41 0 2 40 41 0 3 41 41 0 4 42 41 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F

Sources: Company data, Thanachart estimates

THANACHART RESEARCH

COMPANY NOTE

BIGC

PHANNARAI TIYAPITTAYARUT

Ex 2: 12-month DCF-based TP Calculation

Terminal (Bt m) EBITDA Free cash flow PV of free cash flow 2014F 14,008 7,883 2015F 15,255 7,604 7,584 2016F 16,620 9,794 7,184 2017F 17,909 14,332 9,481 2018F 19,248 12,218 7,289 2019F 20,457 13,822 7,437 2020F 21,564 15,839 7,683 2021F 22,591 16,773 7,338 2022F 23,649 17,666 6,970 2023F 24,760 18,475 6,574 2024F 25,928 19,357 6,210 2025F 27,156 20,296 5,872 233,046 67,424 Value

Risk-free rate (%) Market risk premium (%) Beta WACC (%) Terminal growth (%) Enterprise value add investments Net debt (2013F) Minority interest Equity value

4.5 8.0 1.0 10.9 2.0

147,045 19,188 19 127,838

# of shares (m) Equity value/share (Bt)

825 155.00

Sources: Company data, Thanachart estimates

THANACHART RESEARCH

COMPANY NOTE

BIGC

PHANNARAI TIYAPITTAYARUT

Valuation Comparison
Ex 3: Valuation Comparison With Regional Peers
EPS growth Name BBG code Country 14F (%) 15F (%) PE 14F (x) 15F (x) P/BV 14F (x) 15F (x) EV/EBITDA 14F (x) 15F (x) Div yield 14F (%) 15F (%)

Marks & Spencer Group J Sainsbury Tesco

MKS LN SBRY LN TSCO LN

U.K. U.K. U.K.

(3.1) 8.4 0.7

12.1 4.6 0.3

14.5 9.9 10.1

13.0 9.5 10.1

2.7 1.0 1.4

2.5 1.0 1.3

8.3 6.3 7.4

7.7 6.0 7.3

3.8 5.5 4.8

4.1 5.6 4.9

Fujian New Hua Du Beijing Hualian Wumart Stores Lianhua Supermarket

002264 CH 600361 CH 8277 HK 980 HK

China China China China

(421.7) 23.3 na 22.5

38.9 50.0 na 18.0

45.9 49.0 na 17.5

33.0 32.7 na 14.8

3.9 1.0 na 1.4

3.7 na na 1.3

17.7 0.4 na na

14.1 0.4 na na

0.8 2.0 na 2.0

1.0 3.6 na 2.2

Carrefour SA Casino Guichard

CA FP CO FP

France France

16.4 6.0

15.4 12.2

16.4 14.9

14.2 13.3

2.0 1.1

1.9 1.1

6.6 7.5

6.1 7.0

2.7 4.0

3.0 4.4

Aeon UNY

8267 JP 8270 JP

Japan Japan

0.1 (71.5)

6.8 (1.9)

14.6 14.3

13.7 14.6

1.0 0.5

0.9 0.5

6.3 7.0

5.9 7.1

2.1 3.9

2.2 3.9

Lotte Shopping Shinsegae

023530 KS 004170 KS

S. Korea S. Korea

14.1 11.4

18.5 10.7

9.8 12.7

8.2 11.4

0.7 0.9

0.6 0.8

5.7 11.3

5.2 10.4

0.5 0.5

0.5 0.5

Wal-Mart Stores

WMT US

USA

(3.7)

0.0

15.2

15.2

2.8

2.8

7.9

7.9

2.8

2.8

Big C Supercenter* CP All* Siam Global House * Home Product* Siam Makro* Robinson Dept Store *

BIGC TB CPALL TB GLOBAL TB HMPRO TB MAKRO TB ROBINS TB

Thailand Thailand Thailand Thailand Thailand Thailand

3.5 29.8 21.6 15.2 25.1 14.3

10.5 28.0 25.8 16.5 20.0 15.4

20.9 23.9 36.4 23.3 27.3 22.6

18.9 18.7 29.0 20.0 22.8 19.6

3.6 10.0 3.5 5.8 11.9 4.0

3.2 7.9 3.2 5.3 10.9 3.6

11.7 15.7 20.5 13.7 18.5 11.3

10.4 12.8 17.0 12.1 15.3 9.6

1.4 2.4 0.8 3.0 3.3 2.0

1.6 2.9 1.0 3.5 4.0 2.6

Average
Sources: Company data, Thanachart estimates Based on 20 February 2014 closing prices

(15.1)

15.9

21.0

17.5

3.1

2.9

10.2

9.0

2.5

2.9

THANACHART RESEARCH

APPENDIX

BIGC

PHANNARAI TIYAPITTAYARUT

COMPANY DESCRIPTION
Big C Supercenter Pcl (BIGC) operates a modern retail business via hypermarkets and supercenters. It also has a town center business providing rental space both inside and outside BIGCs buildings to entrepreneurs. BIGC sells consumer goods and foodstuffs at reasonable prices. Products at BIGC stores are in five main categories: dry foods (58.0%), hard line (16.4%), soft line (8.1%), home line (9.6%) and fresh foods (7.8%).

COMPANY RATING
Financial management

Rating Scale Very Strong

Risk manage ment

Manage ment

5 4 3 2 1 0

5 4 3 2 1 0

Strong Good Fair

Liquidit y

*Corp. governa nce

Weak None

Source: Thanachart

Source: Thanachart; *CG Awards

THANACHARTS SWOT ANALYSIS S Strength Stronger bargaining power via the Carrefour acquisition. Its market share is catching up with the market leader Tesco Lotus. More balanced geographical coverage with 50% of stores in the capital and 50% upcountry. BIGC has most of its stores in Bangkok and major tourist provinces. High business stability with its dual retail-property model. T Threat Economic and political risks. Natural disasters. Competitive nature of the hypermarket segment. W Weakness Tough work during accelerating expansion phase. Product variety needs to be improved to capture the higherend customer segments.

O Opportunity Urbanization allows store penetration in the provinces. Expansion in various formats: hypermarkets, market stores (supermarkets), Mini-Big C stores and Pure health, beauty and pharmacy stores.

CONSENSUS COMPARISON
Consensus Target price (Bt) Net profit 14F (Bt m) Net profit 15F (Bt m) Consensus REC 199.00 7,329 8,325 BUY: 7 Thanachart 155.00 7,217 7,973 HOLD: 8 Diff -22% -2% -4% SELL: 11

RISKS TO OUR INVESTMENT CASE

There would be upside risk to our earnings forecasts if it were to open more new stores than we currently expect. Any uncertainties that may interrupt BIGCs ongoing business, i.e. fire and natural disasters.

HOW ARE WE DIFFERENT FROM THE STREET?

Our net profits in 2014-15F are 2-4% below the Street. Our TP is 22% lower than the consensus as we take a more cautious view on BIGCs ability to grow gross margin and open new stores.

Sources: Bloomberg consensus, Thanachart estimates

Source: Thanachart

THANACHART RESEARCH

FINANCIAL SUMMARY

BIGC

PHANNARAI TIYAPITTAYARUT

INCOME STATEMENT
FY e nding De c (Bt m ) Sales Cost of sales 2012A 112,136 96,019 16,117 14.4% 18,577 9,136 8.1% 3,411 12,547 11.2% 11,596 0 (1,295) 7,841 1,749 6,093 5.4% 0 (19) 0 6,074 6,074 7.4 7.4 2013A 118,177 100,490 17,687 15.0% 20,936 9,545 8.1% 3,618 13,163 11.1% 12,794 0 (1,053) 8,492 1,502 6,989 5.9% 0 (14) 0 6,976 6,976 8.5 8.5 2014F 126,634 107,683 18,951 15.0% 22,511 9,976 7.9% 4,032 14,008 11.1% 13,536 0 (928) 9,048 1,810 7,238 5.7% 0 (21) 0 7,217 7,217 8.7 8.7 2015F 134,511 114,348 20,162 15.0% 23,881 10,810 8.0% 4,445 15,255 11.3% 14,528 0 (815) 9,994 1,999 7,996 5.9% 0 (23) 0 7,973 7,973 9.7 9.7 2016F 145,208 123,442 21,766 15.0% 25,687 11,754 8.1% 4,866 16,620 11.4% 15,675 0 (591) 11,163 2,233 8,930 6.1% 0 (25) 0 8,905 8,905 10.8 10.8

With slower expansion this year, we forecast only an 8% EPS CAGR over 2013-16F

Gr os s pr ofit % gross margin Selling & administration expenses Ope r ating pr ofit % operating margin Depreciation & amortization EBITDA % EBITDA margin Non-operating income Non-operating expenses Interest expense Pr e -tax pr ofit Income tax Afte r -tax pr ofit % net margin Shares in af f iliates' Earnings Minority interests Extraordinary items NET PROFIT Nor m alize d pr ofit EPS (Bt) Normalized EPS (Bt)

BALANCE SHEET
FY e nding De c (Bt m ) ASSETS: Current assets: Cash & cash equivalent A ccount receivables Inventories Others Investments & loans Net f ixed assets Other assets 22,411 8,780 315 9,196 4,120 15,778 28,027 27,947 94,163 21,782 7,175 323 9,535 4,749 16,285 31,253 27,845 97,164 24,006 8,245 346 10,326 5,089 16,285 33,041 27,838 101,169 24,995 8,357 367 10,965 5,305 16,285 34,936 27,569 103,785 26,273 8,750 397 11,499 5,627 16,285 36,111 26,762 105,430 2012A 2013A 2014F 2015F 2016F

Balance sheet leveraged up to acquire Carrefour in January 2011

with debt repayment and slower expansion, debt should drop quickly and interest expenses fall

Total as s e ts LIABILITIES: Current liabilities: A ccount payables Bank overdraf t & ST loans Current LT debt Others current liabilities Total LT de bt Others LT liabilities Total liabilitie s Minority interest Pref erreds shares Paid-up capital Share premium Warrants Surplus Re taine d e ar nings Shareholders' equity Liabilitie s & e quity
Sources: Company data, Thanachart estimates

36,980 26,944 6,019 1,675 2,342 21,325 3,970 62,276 24 0 8,250 5,956 0 (66) 17,724 31,863 94,163

37,156 26,998 6,037 1,675 2,446 18,650 4,320 60,126 19 0 8,250 5,956 0 (66) 22,879 37,019 97,164

38,369 29,502 4,452 1,781 2,633 16,029 4,630 59,027 40 0 8,250 5,956 0 (66) 27,962 42,102 101,169

38,622 31,015 3,441 1,376 2,790 12,387 4,918 55,926 63 0 8,250 5,956 0 (66) 33,656 47,796 103,785

38,876 33,143 1,941 776 3,016 6,988 5,309 51,173 88 0 8,250 5,956 0 (66) 40,030 54,170 105,430

THANACHART RESEARCH

FINANCIAL SUMMARY

BIGC

PHANNARAI TIYAPITTAYARUT

CASH FLOW STATEMENT

FY e nding De c (Bt m ) Earnings bef ore tax 2012A 7,841 (2,030) 3,411 1,669 (538) 10,354 (5,091) 0 (195) 0 1,490 (3,796) (7,491) 3,946 (1,571) (84) (5,199) 5,262 2013A 8,492 (1,595) 3,618 (294) (612) 9,609 (6,844) 0 (507) 0 613 (6,738) (2,657) 0 (1,821) 1 (4,477) 2,765 2014F 9,048 (1,729) 4,032 1,691 (373) 12,669 (5,820) 0 0 0 455 (5,365) (4,100) 0 (2,134) 0 (6,234) 6,849 2015F 9,994 (2,008) 4,445 852 (172) 13,112 (6,341) 0 0 0 678 (5,663) (5,059) 0 (2,279) 0 (7,337) 6,771 2016F 11,163 (2,187) 4,866 1,565 (231) 15,177 (6,041) 0 0 0 1,287 (4,754) (7,498) 0 (2,532) 0 (10,030) 9,136

We forecast free cash flow to improve further

Tax paid Depreciation & amortization Chg In w orking capital Chg In other CA & CL / minorities Cas h flow fr om ope rations Capex ST loans & investments LT loans & investments A dj f or asset revaluation Chg In other assets & liabilities Cas h flow fr om inve s tm e nts Debt f inancing Capital increase Dividends paid Warrants & other surplus Cas h flow fr om financing Fr e e cas h flow

VALUATION
FY e nding De c Normalized PE (x) Normalized PE - at target price (x) PE (x) PE - at target price (x) EV /EBITDA (x) EV /EBITDA - at target price (x) P/BV (x) 2012A 24.5 20.8 24.5 20.8 13.5 11.7 4.7 4.0 14.4 1.3 1.2 3.5 2013A 21.6 18.3 21.6 18.3 12.9 11.2 4.1 3.5 15.7 1.3 1.4 1.8 2014F 20.9 17.7 20.9 17.7 11.7 10.1 3.6 3.0 11.9 1.2 1.4 4.5 2015F 18.9 16.0 18.9 16.0 10.4 9.0 3.2 2.7 11.5 1.1 1.6 4.5 2016F 16.9 14.4 16.9 14.4 9.1 7.8 2.8 2.4 9.9 1.0 1.8 6.1

We see PEG as expensive despite a cheaper 2014F PE than peers

P/BV - at target price (x) P/CFO (x) Price/sales (x) Dividend yield (%) FCF Y ield (%) (Bt) Normalized EPS EPS DPS BV /share CFO/share FCF/share
Sources: Company data, Thanachart estimates

7.4 7.4 2.2 38.6 12.7 6.4

8.5 8.5 2.6 44.9 11.6 3.4

8.7 8.7 2.6 51.0 15.4 8.3

9.7 9.7 2.9 57.9 15.9 8.2

10.8 10.8 3.2 65.7 18.4 11.1

THANACHART RESEARCH

FINANCIAL SUMMARY

BIGC

PHANNARAI TIYAPITTAYARUT

FINANCIAL RATIOS
FY e nding De c Grow th Rate Sales (%) 9.3 15.9 14.1 14.8 13.1 30.0 5.4 14.8 13.6 14.8 13.6 30.2 7.2 3.5 3.5 3.5 3.5 30.0 6.2 10.5 10.5 10.5 10.5 30.0 8.0 11.7 11.7 11.7 11.7 30.0 2012A 2013A 2014F 2015F 2016F

We assume a 30% minimum dividend payout improves its balance sheet faster

Net prof it (%) EPS (% ) Normalized prof it (%) Normalized EPS (% ) Dividend payout ratio (% ) Ope rating pe r form ance Gross margin (% ) Operating margin (%) EBITDA margin (% ) Net margin (%) D/E (incl. minor) (x) Net D/E (incl. minor) (x) Interest coverage - EBIT (x) Interest coverage - EBITDA (x) ROA - using norm prof it (% ) ROE - using norm prof it (%) DuPont ROE - using af ter tax prof it (% ) - asset turnover (x) - operating margin (% ) - leverage (x) - interest burden (% ) - tax burden (% ) WA CC (%) ROIC (%) NOPA T (Bt m)
Sources: Company data, Thanachart estimates

14.4 8.1 11.2 5.4 0.9 0.6 7.1 9.7 6.6 21.9

15.0 8.1 11.1 5.9 0.7 0.5 9.1 12.5 7.3 20.3

15.0 7.9 11.1 5.7 0.5 0.3 10.7 15.1 7.3 18.2

15.0 8.0 11.3 5.9 0.4 0.2 13.3 18.7 7.8 17.7

15.0 8.1 11.4 6.1 0.2 0.0 19.9 28.1 8.5 17.5

22.0 1.2 8.1 3.3 85.8 77.7 10.9 13.5 7,099

20.3 1.2 8.1 2.8 89.0 82.3 10.9 15.1 7,856

18.3 1.3 7.9 2.5 90.7 80.0 10.9 14.2 7,980

17.8 1.3 8.0 2.3 92.5 80.0 10.9 15.4 8,648

17.5 1.4 8.1 2.1 95.0 80.0 10.9 16.6 9,403

THANACHART RESEARCH

DISCLAIMER

BIGC

PHANNARAI TIYAPITTAYARUT

General Disclaimers And Disclosures: This report is prepared and issued by Thanachart Securities Public Company Limited (TNS) as a resource only for clients of TNS, Thanachart Capital Public Company Limited (TCAP) and its group companies. Copyright Thanachart Securities Public Company Limited. All rights reserved. The report may not be reproduced in whole or in part or delivered to other persons without our written consent.

This report is prepared by analysts who are employed by the research department of TNS. While the information is from sources believed to be reliable, neither the information nor the forecasts shall be taken as a representation or warranty for which TNS or TCAP or its group companies or any of their employees incur any responsibility. This report is provided to you for informational purposes only and it is not, and is not to be construed as, an offer or an invitation to make an offer to sell or buy any securities. Neither TNS, TCAP nor its group companies accept any liability whatsoever for any direct or consequential loss arising from any use of this report or its contents.

The information and opinions contained herein have been compiled or arrived at from sources believed reliable. However, TNS, TCAP and its group companies make no representation or warranty, express or implied, as to their accuracy or completeness. Expressions of opinion herein are subject to change without notice. The use of any information, forecasts and opinions contained in this report shall be at the sole discretion and risk of the user.

TNS, TCAP and its group companies perform and seek to perform business with companies covered in this report. TNS, TCAP, its group companies, their employees and directors may have positions and financial interest in securities mentioned in this report. TNS, TCAP or its group companies may from time to time perform investment banking or other services for, or solicit investment banking or other business from, any entity mentioned in this report. Therefore, investors should be aware of conflict of interest that may affect the objectivity of this report.

THANACHART RESEARCH

DISCLAIMER

BIGC

PHANNARAI TIYAPITTAYARUT

Recommendation Structure:

Recommendations are based on absolute upside or downside, which is the difference between the target price and the current market price. If the upside is 10% or more, the recommendation is BUY. If the downside is 10% or more, the recommendation is SELL. For stocks where the upside or downside is less than 10%, the recommendation is HOLD. Unless otherwise specified, these recommendations are set with a 12-month horizon. Thus, it is possible that future price volatility may cause a temporary mismatch between upside/downside for a stock based on the market price and the formal recommendation.

For sectors, we look at two areas, ie, the sector outlook and the sector weighting. For the sector outlook, an arrow pointing up, or the word Positive, is used when we see the industry trend improving. An arrow pointing down, or the word Negative, is used when we see the industry trend deteriorating. A double-tipped horizontal arrow, or the word Unchanged, is used when the industry trend does not look as if it will alter. The industry trend view is our top-down perspective on the industry rather than a bottom-up interpretation from the stocks we cover. An Overweight sector weighting is used when we have BUYs on majority of the stocks under our coverage by market cap. Underweight is used when we have SELLs on majority of the stocks we cover by market cap. Neutral is used when there are relatively equal weightings of BUYs and SELLs.

Thanachart Securities Pcl.

Research Team 28 Floor, Siam Tower Unit A1 989 Rama 1, Pathumwan Road, Bangkok 10330 Tel: 662 - 617 4900 Email: research@thanachartsec.co.th
Pimpaka Nichgaroon, CFA Head of Research Economics & Strategy pimpaka.nic@thanachartsec.co.th Sarachada Sornsong Banks, Telecom sarachada.sor@thanachartsec.co.th Phannarai Tiyapittayarut Property, Retail phannarai.von@thanachartsec.co.th Saksid Phadthananarak Construction, Transportation saksid.pha@thanachartsec.co.th Kalvalee Thongsomaung Food, Hotel, Media kalvalee.tho@thanachartsec.co.th Noppadol Pririyawut Senior Technical Analyst noppadol.pri@thanachartsec.co.th Adisak Phupiphathirungul, CFA Retail Market Strategy adisak.phu@thanachartsec.co.th Supanna Suwankird Energy, Utilities supanna.suw@thanachartsec.co.th Siriporn Arunothai Ad Hoc Research, Healthcare siriporn.aru@thanachartsec.co.th

THANACHART RESEARCH

10