PDF《Appico Hitech - AH》

s forecast that full-year auto output will reach 2.20mn units. In y-y terms, 2HCY12 vehicle output is projected to rise by 76% due to the absence of the impact of severe floods in Thailand. Earnings should also get a further boost from new orders for Ford-Ford Focus, scheduled to start full commercial production in 2HCY12. On this basis, we raise our CY12 net profit outlook for AH by 92% to Bt730.20mn or 60% to Bt610.20mn excluding insurance claims for flood damages. Figure 2: Thailand'

s vehicle output Upgrade to '

BUY'

with Bt20.40/share target price Earnings grew substantially in 2QCY12. Following results announcement, AH declared a 1HCY12 dividend of Bt0.488/ share, translating into an un-annualized yield of 3.0%. The stock will trade ex-dividend (XD) on Aug 27, and the dividend is scheduled to be paid on Sep 12, 2012. In our view, higher vehicle output would continue to be a positive catalyst for earnings growth in 2HCY12. We upgrade AH shares to '

BUY'

with a target price of Bt20.40/share based on an adjusted P/E multiple of 9x. Appico Hitech - AH Thailand Equities Research

17 August

2012 3 of

8 Appico Hitech - AH Thailand Equities Research

17 August

2012 4 of

8 PHILLIP RESEARCH STOCK SELECTION SYSTEMS BUY >

15% upside from the current price HOLD Trade within ± 15% from the current price SELL >

15% downside from the current price We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors like (but not limited to) a stock'

s risk reward profile, market sentiment, recent rate of share price appreciation, presence or absence of stock price catalysts, and speculative undertones surrounding the stock, before making our final recommendation GENERAL DISCLAIMER This publication is prepared by Phillip Securities (Hong Kong) Ltd ( Phillip Securities ). By receiving or reading this publication, you agree to be bound by the terms and limitations set out below. This publication shall not be reproduced in whole or in part, distributed or published by you for any purpose. Phillip Securities shall not be liable for any direct or consequential loss arising from any use of material contained in this publication. The information contained in this publication has been obtained from public sources which Phillip Securities has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the Research ) contained in this publication are based on such information and are expressions of belief only. Phillip Securities has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in this publication is subject to change, and Phillip Securities shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will Phillip Securities be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this material are as of the date indicated and are subject to change at any time without prior notice. This material is intended for general circulation only and........