Company Update, 20 January 2015 Anton Oilfield (3337 HK) Sell (Maintained) Energy & Petrochemicals - Oil & Gas Services Market Cap: USD457m Target Price: Price: HKD0.95 HKD1.60 Macro Risks Disappointment Continues Growth Value Anton Oilfield Services Group (3337 HK) Relative to Hang Seng Index (RHS) 132 5.90 112 4.90 92 3.90 72 2.90 52 1.90 32 0.90 180 160 140 120 100 80 60 40 20 12 Nov-14 Sep-14 Jul-14 May-14 Mar-14 Avg Turnover (HKD/USD) 56.9m/7.30m Cons. Upside (%) 9.4 Upside (%) -40.6 52-wk Price low/high (HKD) 1.41 - 6.02 Free float (%) 50 Share outstanding (m) 2,212 Shareholders (%) Pro Development Holdings Corp Schlumberger NV 30.6 19.1 YTD 1m 3m 6m 12m (4.2) (9.1) (27.3) (65.8) (73.2) (78.5) (7.4) Likely to incur net loss in 2014. Anton Oilfield Services Group (Anton) expects its FY14 revenue to decline by over 20%, and its FY14 profit to fall by over 140%, which translates into a net loss. The company attributes the net loss to sluggish domestic and international markets amid low oil prices, which led to cancellation of projects and downward pricing pressure. This is much worse than our revenue forecast of +6% and net profit forecast of CNY62m for FY14. Orders backlog cut amid cancellation of orders. As major clients cancelled and downsized projects, Anton reduced its orders backlog in 3Q14 by CNY200m to CNY1,956m. Orders backlog at the end of 2014 stood at CNY1,707m, down 13% QoQ. New orders won in 4Q14 amounted to only CNY458m, down 30% QoQ, mainly due to cancellation and postponement of clients’ projects. Strategy update offers no assurance on earnings. Anton depicted a gloomy picture for 2015 as sales and margins may not improve amid difficult market conditions. Anton will continue its reduction in workforce in 2015 after a 10% cut in 2014 to control cost. Bumpy road ahead. Anton has lowered its guidance twice in less than three months. We think Anton’s business may continue to be under pressure in 2015 amid low oil prices. We cut our earnings forecasts for FY14 and FY15 to negative, and FY16 by 97%. Maintain SELL with a lower TP of HKD0.95. Given the high volatility in Anton’s earnings, we change our TP to P/BV from P/E-based. Our lower TP of HKD0.95 (vs HKD1.30) is based on 0.8x FY15F P/BV, 1SD below its forward P/BV mean. We maintain our SELL call in light of Anton’s net loss for 2014 and the tough FY15 operating outlook amid low oil prices. Forecasts and Valuations Share Performance (%) Relative Source: Bloomberg Absolute 0 0 .1 0 0 Anton released a series of announcements during the weekend, . 0 including a profit warning, 2015 strategy update and 4Q14 operational 0 update. Maintain SELL with a lower TP of HKD0.95 (0.8x FY15F P/BV, 0 40.6% downside). The profit warning came in worse than we had expected amid cancellation of orders by clients. We cut our earnings forecasts for FY14 and FY15 to negative, and FY16 by 97%. Jan-14 Vol m Price Close 6.90 (14.4) (33.1) (69.6) Dec-12 Dec-13 Dec-14F Dec-15F Dec-16F 2,005 2,534 1,923 2,353 2,824 Reported net profit (CNYm) 303 383 (162) (3) 20 Recurring net profit (CNYm) 295 369 (171) (23) 287.7 25.1 (146.2) (86.6) Recurring EPS (CNY) 0.14 0.17 (0.08) (0.01) 0.00 DPS (CNY) 0.05 0.06 0.00 0.00 0.00 9 7 1.39 1.21 1.38 1.35 1.33 Total turnover (CNYm) Recurring net profit growth (%) Shariah compliant 2 . 2 0 . 2 Recurring P/E (x) na na 5 na 513 Charles Zhang +852 2103 5842 P/B (x) [email protected] P/CF (x) 7.8 7.3 7.1 26.2 15.2 Dividend Yield (%) 3.6 4.3 0.0 0.0 0.0 EV/EBITDA (x) 5.9 5.1 20.2 10.5 9.6 16.6 18.0 (7.5) (0.1) 1.0 24.2 50.5 69.9 87.9 (261.7) (111.3) (98.1) Return on average equity (%) Net debt to equity (%) Our vs consensus EPS (adjusted) (%) net cash Source: Company data, RHB See important disclosures at the end of this report Powered by EFA TM Platform 1 Anton Oilfield (3337 HK) 20 January 2015 Figure 1: New orders and orders backlog (CNYm) 4Q13 New orders 1Q14 2Q14 3Q14 4Q14 312.5 1,198.6 693.4 624.1 457.6 - - - - 46.4% QoQ - 283.6% -42.1% -10.0% -26.7% % of total 100.0% 100.0% 100.0% 100.0% 100.0% 213.3 YoY - Domestic - 628.2 424.6 272.6 YoY - - - - - QoQ - - -32.4% -35.8% -21.8% % of total - 52.4% 61.2% 43.7% 46.6% - 570.4 268.9 351.5 244.3 YoY - - - - - QoQ - - -52.9% 30.7% -30.5% 47.6% 38.8% 56.3% 53.4% 1,707.4 - Overseas % of total Order backlog 1,003.4 1,932.2 1,814.9 1,955.5 YoY - - - - 70.2% QoQ - 92.6% -6.1% 7.7% -12.7% % of total 100.0% 100.0% 100.0% 100.0% 100.0% 722.8 1,207.4 1,064.2 1,060.0 588.6 - - - - -18.6% QoQ - 67.0% -11.9% -0.4% -44.5% % of total 72.0% 62.5% 58.6% 54.2% 34.5% 280.6 724.8 750.8 895.5 1,118.8 - Domestic YoY - Overseas YoY - - - - 298.7% QoQ - 158.3% 3.6% 19.3% 24.9% % of total 28.0% 37.5% 41.4% 45.8% 65.5% Source: Company data, RHB Figure 2: Changes in forecasts (CNYm) 31 Dec FYE FY 14 New FY 14 Old Drilling Well completion Down- hole operation Tubular services Tota l re ve nue COGS G ross profit GPM 460 466 790 208 1, 9 2 3 (1,327) 596 31.0% 637 630 1,114 302 2,683 (1,717) 966 36.0% Sales tax & surcharges Selling expenses Administrative expenses R&D O pe ra ting e xpe nse s Opex as % of revenue Other gain, net O pe ra ting profit Operating margin (38) (231) (279) (48) (5 9 6 ) 31.0% 20 20 1.0% (35) (268) (349) (54) (7 0 5 ) 26.3% 20 280 10.4% Interest income Finance cost Share of associates' profits EBT EBT margin 19 (210) (17 0 ) - 8.9% 19 (200) 10 0 3.7% 0 0.0% (28) 28.0% MI Ne t profit - re porte d NPM (reported) 9 (16 2 ) - 8.4% (4) 68 7.9% Ne t profit - re c urring NPM (recurring) (17 1) - 8.9% 62 2.3% Income tax Effective tax rate EP S - re c urring Source: RHB (0 . 0 8 ) 0.03 See important disclosures at the end of this report FY 15 New FY 15 Old FY 16 New FY 16 Old (27.8) (26.1) (29.1) (31.3) (2 8 . 3 ) (22.7) (3 8 . 3 ) 529 536 1,050 239 2,353 (1,647) 706 30.0% 764 756 1,537 363 3,420 (2,223) 1, 19 7 35.0% (30.8) (29.2) (31.7) (34.1) (3 1. 2 ) (25.9) (4 1. 0 ) 634 643 1,260 287 2,824 (1,977) 847 30.0% 917 907 1,845 435 4 , 10 4 (2,708) 1, 3 9 5 34.0% (30.8) (29.2) (31.7) (34.1) (3 1. 2 ) (27.0) (3 9 . 3 ) 10.4 (14.0) (20.1) (10.4) (15.5) (31) (188) (259) (59) (5 3 6 ) 22.8% 20 19 0 8.1% (44) (274) (393) (68) (7 8 0 ) 22.8% 20 437 12.8% (31.2) (31.2) (34.2) (14.0) (31.2) (37) (226) (311) (71) (6 4 4 ) 22.8% 20 223 7.9% (53) (328) (472) (82) (9 3 6 ) 22.8% 20 480 11.7% (31.2) (31.2) (34.2) (14.0) (31.2) 11 (204) (3 ) - 0.1% 11 (194) 255 7.5% 5.2 9 (204) 29 1.0% 9 (194) 295 7.2% 5.2 0 0.0% (71) 28.0% N/A (8) 28.0% (83) 28.0% (90.1) 0 (3 ) - 0.1% (9) 17 4 5.1% N/A N/A (1) 20 0.7% (11) 202 4.9% (90.1) (90.1) N/A (2 3 ) - 1.0% 16 0 4.7% N/A 5 0.2% 18 7 4.6% (97.1) N/A (0 . 0 1) Chg % (92.8) 4.9 N/A N/A (337.1) N/A 0.07 Chg % (56.7) N/A N/A 0.00 0.09 Chg % (53.4) (90.1) (97.1) 2 Anton Oilfield (3337 HK) 20 January 2015 Figure 3: Forward P/BV band 8.00 7.00 +2SD = 6.5x 6.00 Share Price (HKD) 5.00 +1SD = 4.6x 4.00 3.00 Mean = 2.7x 2.00 1.00 -1SD = 0.8x 0.00 Jan-10 -1.00 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 -2SD = -1.1x -2.00 Source: Bloomberg, RHB Figure 4: Peer comparison Com pany Ticker Anton Oilfield 3337 HK Price Mkt cap (USDm ) 1.60 457 3-m th P/E P/E P/E avg t/o FY13 FY14 FY15 (USDm ) (x) (x) (x) 7.5 7.2 10.1 N/A EPS 3-Yr EPS PEG FY15 Cagr (%) (x) YoY% N/A N/A 9.8 (6.8) 10.5 6.8 5.9 10.7 10.7 21.5 14.7 27.8 (6.3) 6.9 HSI 23,738 HSCEI 11,476 8.0 7.6 CSI300 3,355 14.9 12.2 12.8 11.1 12.5 Adjusted sector avg* 10.8 EPS FY14 YoY% N/A Div yld Div yld P/BV P/BV Rev FY13 FY14 FY13 FY14 FY13 (%) (%) (x) (x) (USDm ) 407 GPM Net FY13 m argin (%) FY13 (%) 44.31 15.1 ROE FY13 (%) ROE FY14 (%) N/A N/A 4.4 0.0 1.3 1.7 11.4 (7.5) 5.5 2.0 3.8 3.7 1.3 1.2 13.3 11.4 7.7 1.0 3.8 4.2 1.2 1.1 15.1 13.9 N/A N/A 1.7 2.4 2.2 1.8 14.5 14.8 0.9 3.0 2.4 1.4 1.3 18.7 10.9 15.8 13.0 16.4 HK listed oil & gas services Spt Energy Group 1251 HK 1.34 265 2.0 5.5 5.4 4.6 1.0 17.6 12.8 0.4 4.8 4.4 0.9 0.8 386 N/A 12.5 16.9 Petro-King 2178 HK 1.07 170 0.3 5.5 12.6 10.1 (56.5) 24.7 (13.6) N/A 4.6 3.1 0.5 0.5 137 N/A 18.5 12.1 3.1 China Oilfield-H 2883 HK 13.34 11,870 41.1 7.2 6.5 7.1 10.1 (8.8) 1.0 6.8 4.0 4.5 1.2 1.1 4,399 N/A 24.5 20.4 18.5 6.0 8.2 7.3 (15.1) 11.2 0.1 3.6 4.5 4.0 0.9 0.8 N/A 18.5 16.5 12.7 Average US oil & gas services Schlumberger Ltd SLB US 81.33 104,655 904.4 19.4 18.3 17.3 5.7 6.0 20.8 0.9 2.0 2.1 2.7 2.5 48,580 23.0 11.2 14.0 14.3 Halliburton Co 39.13 33,161 1,023.8 16.5 9.9 13.4 66.1 (25.9) 10.7 0.9 1.6 1.6 2.1 2.0 29,402 15.2 7.2 24.0 22.4 Baker Hughes Inc BHI US 56.56 24,468 504.0 22.9 14.7 20.1 56.1 (26.9) 9.4 1.6 1.1 1.1 1.4 1.3 22,364 17.0 4.9 7.3 9.2 Weatherford Inte WFT US 10.34 8,001 157.7 N/A 10.2 14.7 N/A (30.5) (224.1) N/A N/A 0.0 1.0 1.0 15,263 19.4 (2.3) (4.6) 7.0 19.6 13.3 16.4 42.6 (19.3) (45.8) 1.1 1.6 1.2 1.8 1.7 18.7 5.3 10.2 13.2 HAL US Average A-share oil & gas services Yantai Jereh-A 002353 CH 33.98 5,244 72.9 30.9 22.3 15.9 38.5 40.4 38.6 0.6 0.5 0.7 4.2 3.8 590 43.26 26.84 22.76 22.74 China Oil Hbp-A 002554 CH 11.03 808 15.4 48.0 35.2 25.2 36.1 39.9 33.6 1.0 0.5 1.3 3.7 3.5 152 27.34 10.88 8.92 10.09 Gi Technologie-A 300309 CH 19.20 671 9.5 56.5 42.0 29.9 34.4 40.7 37.0 1.1 0.5 0.4 3.4 3.2 37 55.92 31.50 6.05 7.57 45.1 33.2 23.6 36.3 40.3 36.4 0.9 0.5 0.8 3.8 3.5 42.2 23.1 12.6 13.5 Average Oil equipm ents Hilong Holding 1623 HK 2.39 523 2.8 9.3 8.1 7.1 13.8 15.3 14.5 0.6 3.2 3.7 1.2 1.1 394 40.29 14.05 16.30 14.25 Honghua Group 196 HK 1.00 418 1.8 4.7 6.6 5.9 (28.2) 12.3 (2.8) N/A 6.0 4.4 0.5 0.5 1,294 23.68 6.68 10.73 8.03 7.0 7.4 6.5 (7.2) 13.8 5.8 0.6 4.6 4.0 0.9 0.8 32.0 10.4 13.5 11.1 Average * adjusted sector average includes only HK and US listed oil & gas servicing companies Source: Bloomberg, RHB See important disclosures at the end of this report 3 Anton Oilfield (3337 HK) 20 January 2015 Financial Exhibits Profit & Loss (CNYm) Dec-12 Dec-13 Dec-14F Dec-15F Total turnover 2,005 2,534 1,923 2,353 2,824 Cost of sales (1,103) (1,411) (1,327) (1,647) (1,977) Gross profit 901 1,123 Dec-16F 596 706 847 Gen & admin expenses (260) (300) (279) (259) (311) Selling expenses (154) (173) (231) (188) (226) Other operating costs (99) (97) (86) (89) (107) Operating profit 387 552 0 170 203 Operating EBITDA 481 675 198 422 505 Depreciation of fixed assets (73) (107) (186) (242) (291) Amortisation of intangible assets (21) (16) (11) (11) (11) Operating EBIT 387 552 0 170 203 Net income from investments - (10) - - Other recurring income - 11 20 20 20 Interest income 2 1 19 11 Interest expense (31) (71) (199) (204) Other non-recurring income (2) (3) (11) Pre-tax profit 367 490 Taxation (50) (87) Minority interests (15) (21) Profit after tax & minorities 303 383 (162) Reported net profit 303 383 Recurring net profit 295 369 Dec-12 387 - (170) - 20 9 (204) - (3) 29 9 (8) 0 (1) (3) 20 (162) (3) 20 (171) (23) 5 Dec-13 Dec-14F Dec-15F Dec-16F 552 0 170 203 93 122 198 252 301 (133) (191) 367 (142) (137) Source: Company data, RHB Cash flow (CNYm) Operating profit Depreciation & amortisation Change in working capital Other operating cash flow Operating cash flow Interest received Interest paid 64 6 9 20 20 412 490 573 300 387 2 1 19 11 (15) (42) (199) (204) 9 (204) Tax paid (49) (71) - - Cash flow from operations 350 379 394 107 185 (232) (717) (750) (600) (600) (41) (92) (0) (273) (809) (750) Capex Other investing cash flow Cash flow from investing activities Dividends paid Increase in debt Other financing cash flow (600) (8) (600) (47) - (120) 23 1,807 122 - - - - - 13 Cash flow from financing activities (11) Cash at beginning of period (112) 53 7 1,695 2 53 7 462 523 1,770 1,415 976 Total cash generated 65 1,265 Forex effects (4) Implied cash at end of period 523 (18) 1,770 (355) 1,415 (439) (408) - - 976 568 Source: Company data, RHB See important disclosures at the end of this report 4 Anton Oilfield (3337 HK) 20 January 2015 Financial Exhibits Balance Sheet (CNYm) Dec-12 Dec-13 Dec-14F Dec-15F Dec-16F Total cash and equivalents 539 1,803 1,448 1,009 601 Inventories 487 541 436 542 650 Accounts receivable 948 1,332 737 903 1,083 Other current assets Total current assets Total investments 240 191 211 258 309 2,214 3,867 2,832 2,711 2,643 4 17 17 17 17 Tangible fixed assets 984 1,624 2,185 2,543 2,852 Intangible assets 371 375 364 353 343 Total other assets 20 85 85 85 85 Total non-current assets 1,379 2,101 2,651 2,998 3,297 Total assets 3,593 5,968 5,483 5,709 5,940 Short-term debt 212 396 400 400 400 Accounts payable 730 704 582 722 866 Other current liabilities 267 508 317 353 411 1,209 1,608 1,299 1,475 1,678 299 1,983 2,100 2,100 2,100 4 2 1 1 1 303 1,984 2,101 2,101 2,101 1,512 3,593 3,400 3,575 3,778 201 203 201 201 201 1,673 1,960 1,852 1,856 1,874 Total current liabilities Total long-term debt Other liabilities Total non-current liabilities Total liabilities Share capital Retained earnings reserve Other reserves Shareholders' equity Minority interests Other equity 98 120 1,972 2,283 1,999 109 93 84 (0) 0 (0) (53) (7) 2 2,050 2,077 84 85 - (0) Total equity 2,081 2,375 2,083 2,133 2,162 Total liabilities & equity 3,593 5,968 5,483 5,709 5,940 Dec-12 Dec-13 Dec-14F Dec-15F Dec-16F 59.2 26.4 (24.1) 22.4 20.0 Operating profit growth (%) 124.3 42.6 (100.0) 232662.7 20.0 Net profit growth (%) 291.1 26.4 (142.2) (98.2) 0.0 EPS growth (%) 287.9 24.4 (141.3) (98.2) 0.0 Bv per share growth (%) 17.5 14.7 (12.4) 2.5 1.3 Operating margin (%) 19.3 21.8 0.0 7.2 7.2 Net profit margin (%) 15.1 15.1 (8.4) (0.1) 0.7 Return on average assets (%) 9.9 8.0 (2.8) (0.1) 0.3 Return on average equity (%) 16.6 18.0 (7.5) (0.1) 1.0 Net debt to equity (%) (1.4) 24.2 50.5 69.9 87.9 DPS 0.05 0.06 0.00 0.00 0.00 Recurrent cash flow per share 0.17 0.18 0.18 0.05 0.08 Source: Company data, RHB Key Ratios (CNY) Revenue growth (%) Source: Company data, RHB See important disclosures at the end of this report 5 Anton Oilfield (3337 HK) 20 January 2015 SWOT Analysis Anton is the largest private oil servicing company in China with the best technology and technical knowhow among its private firm peers The anticorruption investigation on China National Petroleum Corp has delayed exploration and production (E&P) activities in China PetroChina and Sinopec have lower E&P capex budgeted for 2014 Uncertain political situation in Iraq Stronger competition in China Anton has the most comprehensive product lines, covering all market segments China is opening up the oil servicing industry to private firms Iraq has strong demand for oil services Partnership with Schlumberger, the global leader in the oil servicing industry, may enhance knowledge transfer State-owned enterprise (SOE) competitors are subsidiaries of China National Petroleum Corp/Sinopec Anton has much less equipment than its SOE competitors P/E (x) vs EPS growth P/BV (x) vs ROAE 200% 1.4 14% 30 150% 1.2 12% 25 100% 1.0 10% 20 50% 0.8 8% 15 0% 0.6 6% 10 -50% 0.4 4% 5 -100% 0.2 2% 0 -150% 0.0 0% EPS growth (rhs) Source: Company data, RHB Jan-13 Jan-13 P/E (x) (lhs) P/B (x) (lhs) Jan-16 16% 35 Jan-15 1.6 Jan-14 250% Jan-12 18% 40 Jan-16 20% 1.8 Jan-15 2.0 300% Jan-14 350% 45 Jan-12 50 Return on average equity (rhs) Source: Company data, RHB Company Profile Anton Oilfield Services Group (Anton) is an independent oilfield services group that focuses on providing stimulation services to improve the product efficiency of oil and gas (O&G) fields. Established in 1999, Anton has built strong relationships with state-owned exploration and production (E&P) companies such as China National Petroleum Corp (CNPC) and Sinopec, and has received both domestic and overseas orders from their subsidiaries. Anton also cooperates with Schlumberger, the largest oilfield services company in the world, to tap into the integrated project management (IPM) services market. The company has a strong presence in Tarim and Erdos, and will develop the Sichuan Basin as its growth driver. See important disclosures at the end of this report 6 Anton Oilfield (3337 HK) 20 January 2015 Recommendation Chart Price Close 5.09 1.30 2.00 1.70 1.20 6.00 6.09 4.73 7.07 6.37 Recommendations & Target Price na 7.09 4.09 3.09 2.09 1.09 Buy 0.09 Jan-10 Neutral Sell Apr-11 Trading Buy Aug-12 Take Prof it Not Rated Nov-13 Source: RHB, Bloomberg Date Recommendation Target Price Price 2015-01-13 Sell 1.30 1.78 2014-10-28 Sell 1.20 1.78 2014-10-08 Sell 1.70 2.43 2014-08-29 Sell 2.00 3.33 2014-07-22 Neutral 4.73 4.42 2014-03-20 Neutral 4.73 5.12 2013-10-17 Buy 6.00 4.93 2013-08-13 Buy 6.00 5.52 2013-07-15 Buy 6.37 4.94 2013-05-29 Neutral 7.07 6.63 Source : RHB, Bloomberg See important disclosures at the end of this report 7 RHB Guide to Investment Ratings Buy: Share price may exceed 10% over the next 12 months Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain Neutral: Share price may fall within the range of +/- 10% over the next 12 months Take Profit: Target price has been attained. 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RHB price Research Sdn the Bhdrange of +/- 10% over the next Take Profit: Target price One, has been attained. Look to accumulate at lower Honglevels Kong Ltd.) Level 11, Tower RHB Centre 10 Collyer Quay th Sell: Share price may byRazak more than 10% over the next 12 months Jalanfall Tun 12 Floor #09-08 Ocean Financial Centre Lumpur World-Wide House Singapore 049315 Not Rated: Stock isKuala not within regular research coverage Malaysia Tel : +(60) 3 9280 2185 Fax : +(60) 3 9284 8693 DISCLAIMERS 19 Des Voeux Road Central, Hong Kong Tel : +(852) 2525 1118 Fax : +(852) 2810 0908 Tel : +(65) 6533 1818 Fax : +(65) 6532 6211 Phnom Penh This research is issuedJakarta by DMG & Partners Research Pte Ltd and it is forShanghai general distribution only. It does not have any regard to the spec ific investment objectives, financial situation and particular needs of any specific recipient of this research report. You should independently evaluate particular PT RHB OSK and Securities (formerlyfinancial known as RHB OSK (China) Advisory Ltd. into any RHBtransaction OSK Indochina Securities Limited (formerly investments consultIndonesia an independent adviser before makingInvestment any investments or Co. entering in relation to any securities or PT OSKmentioned Nusadana in this report. (formerly known as OSK (China) Investment known as OSK Indochina Securities Limited) investment instruments Securities Indonesia) Advisory Co. Ltd.) No. 1-3, Street 271 Plaza CIMB Niaga Suite 4005, CITIC Square Sangkat Toeuk Thla, Khan Sen Sok The information contained herein has been obtained from sources 1168 we believed to be reliable but we do not make any representation or warranty nor 14th Floor Nanjing West Road Phnom Penh accept any responsibility or liability as to its accuracy, completeness orShanghai correctness. are subject to change Jl. Jend. Sudirman Kav.25 20041Opinions and views expressed in this report Cambodia without notice. Jakarta Selatan 12920, Indonesia China Tel: +(855) 23 969 161 Tel : +(6221) 2598 6888 Tel : +(8621) 6288 9611 Fax: +(855) 23 969 171 Fax : +(6221) 2598or6777 Faxof: +(8621) 6288 9633or sell any securities. This report does not constitute form part of any offer or solicitation any offer to buy Bangkok DMG & Partners Research Pte Ltd is a wholly-owned subsidiary of DMG & Partners Securities Pte Ltd, a joint venture between OSK Investment Bank Berhad, Malaysia which have since merged into RHBRHB Investment Bank Berhad (thePCL merged entity is referred to as “RHBIB” which i n turn is a whollyOSK Securities (Thailand) (formerly known owned subsidiary of RHB Capital Berhad) and Deutsche Asiaas Pacific Holdings Pte Ltd (a PCL) subsidiary of Deutsche Bank Group). 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