re-initiating coverage, 23 november 2015

See important disclosures at the end of this report Powered by EFATM Platform 1

Re-initiating Coverage, 23 November 2015

Better World Green (BWG TB) Buy (Maintained) Industrial - Waste & Environment Services Target Price: THB2.80 Market Cap: USD140m Price: THB1.52

Waste Not, Want Not Macro

Risks

Growth

Value

86

101

116

131

146

161

176

191

206

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

Better World Green PCL (BWG TB)Price Close Relative to Stock Exchange of Thailand Index (RHS)

1

1

1

1

Nov

-14

Jan-

15

Mar

-15

May

-15

Jul-1

5

Sep

-15

Vol b

n

Source: Bloomberg

Avg Turnover (THB/USD) 38.5m/1.08m Cons. Upside (%) 43.4 Upside (%) 84.2 52-wk Price low/high (THB) 1.21 - 2.43 Free float (%) 92 Share outstanding (m) 3,317 Shareholders (%) Suwat Luengviriya 5.7 Sippakorn Kaosa-ard 3.6 Charassri Pongpirodom 2.9 Share Performance (%) YTD 1m 3m 6m 12m Absolute 11.8 1.3 (8.4) (20.0) 21.6 Relative 19.1 3.4 (6.6) (11.8) 33.5 Shariah compliant Chun Phokaisawan +66 2862 2029 [email protected]

Forecasts and Valuations Dec-13 Dec-14 Dec-15F Dec-16F Dec-17FTotal turnover (THBm) 1,333 1,504 1,690 1,988 2,695Reported net profit (THBm) 163 203 294 355 564Recurring net profit (THBm) 163 203 294 355 564Recurring net profit growth (%) 110.5 24.3 45.0 20.5 59.0Recurring EPS (THB) 0.06 0.06 0.08 0.09 0.14DPS (THB) 0.01 0.03 0.02 0.02 0.03Recurring P/E (x) 26.6 24.0 18.6 17.1 10.8P/B (x) 2.97 2.89 2.17 1.79 1.58P/CF (x) 11.1 11.3 9.8 9.2 5.9Dividend Yield (%) 0.9 1.9 1.1 1.2 1.9EV/EBITDA (x) 10.3 9.2 7.3 5.9 3.5Return on average equity (%) 11.9 12.9 14.0 12.0 15.6Net debt to equity (%) 17.1 9.6 net cash net cash net cashOur vs consensus EPS (adjusted) (%) 0.0 0.0 0.0

Source: Company data, RHB

We re-initiate coverage on Better World Green (BWG), a provider of hazardous and non-hazardous industrial waste management services, with a BUY and a THB2.80/share TP derived from an SOP valuation, which results in an 84% estimated upside return. We like the company as it is one of the few players which will benefit from the new governmental industrial waste management policy. We expect its earnings to surge by 38% CAGR over the next two years from its RDF project and the 16MW waste power plants. ♦ Waste not, want not. The company gets paid to properly dispose of the

industrial waste (IW); it turns the IW into refused derived fuel (RDF) which it sells as an alternative fuel source to power plants (gross profit margin ~50%). The company will further add value by building its own IW-fueled power plants and selling the electricity generated to the grid.

♦ Earnings estimated to grow at a 38% CAGR over the next two years from new projects. BWG plans to more than double its RDF production capacity from 200tonnes/day to 500tonnes/day in 1Q16. Its two waste power plants with a total installed capacity of 16MW, are expected to begin on a commercial operation date (COD) in 3Q16 and 1Q17 respectively. We estimate earnings to grow by approximately 21%/59% YoY in FY16/FY17 respectively, as the company starts recognizing revenue contribution from the RDF project and its two power plants.

♦ A huge potential for waste processors as only 25% of industrial waste is properly disposed. Thailand produces 50.3mtpa of non-hazardous and 3.3mtpa hazardous waste while only 12.2mtpa and 1.0mtpa of non-hazardous and hazardous waste are currently properly disposed by the waste management companies. The Ministry of Industry has recently set a target to reduce the amount of illegal dumping of non-hazardous and hazardous waste by 8.0mtpa and 0.4mtpa respectively – providing a huge potential for waste processors.

♦ Potential further upside as an MoU was recently signed with the Industrial Estate Authority of Thailand to study and develop renewable energy industrial estate from unused material. As this venture is currently in the negotiating stage, we have not yet included it into our TP.

♦ Key risks: an economic slowdown and a weaker consumer confidence may cause BWG’s customers to lower their production. Potential legal risk if hazardous or non-hazardous wastes are not properly disposed.

http://www.efa.biz/

Better World Green (BWG TB) 23 November 2015

See important disclosures at the end of this report 2

Table Of Contents

Investment Merits 3

Valuation And Recommendation 4

Core Business 6

Industry Overview 8

Financial Analysis 10

Key Risks 12



Investment Merits We value Better World Green (BWG) at THB2.80 per share, based on an SOP valuation. We expect earnings to surge by 20.5% YoY and 59.0% YoY in 2016F and 2017F respectively, with growth coming from its RDF capacity expansion project and its two waste power plants. We have not included any potential further upside from its industrial estate business, which could add approximately THB0.05 to our TP.

We value its waste management business at THB2.42/share based on DCF with a WACC of 9.7% and a terminal growth rate of 3%. We value its two power plants at THB0.38/share based on DCF with a WACC of 8.2% and assume i) 20 years plant life ii) bases tariff of THB6.08/unit and Feed in Tariff premium of THB0.7/unit for the first 8 years upon COD iii) 0% tax for 8years and iv) average EBITDA margin of 75%.

Plenty of room to grow its waste management business. Ministry of industry has estimated that the manufacturing industry in Thailand produces 50.3m tonnes/annum (tpa) and 3.3 tpa of non-hazardous and hazardous waste respectively, based on the total installed power. However, only 12.2mtpa and 1.0mtpa of non-hazardous and hazardous waste were disposed properly by the waste management companies. Meanwhile, BWG, who is the leading industrial waste management companies, only managed around 0.4mtpa of industrial waste. We believe there is a real opportunity for the company to grow in the future given that the Ministry of Industry set a target to reduce the amount of illegal dumping of non-hazardous and hazardous waste by 8.0mtpa and 0.4mtpa respectively, while there are only limited number of waste management companies with landfilled sites.

RDF production capacity expansion. In 2013, the company started a renewable energy project which produces refused derived fuel (RDF), an alternative fuel, by shredding and dehydrating industrial waste. RDF produced from this project can be used as a substitute source of fuel in coal power plants and could be sold at THB1,000-1,500/tonne. BWG plans to expand its RDF production capacity to 500tonnes/day in 1Q16 from the current production capacity of 200tonnes/day. We estimate that revenue from the RDF sale will increase from THB10m in 2015 to THB100m in 2016F and will account for around 5.3% of the company’s total revenue in 2016. Note that this project will also reduce the amount of waste going into the landfill and free up more landfill space since around 80% of new incoming waste will be used to produce the RDF.

New industrial waste power plants to boost earnings in 2017. BWG has secured 20 years PPA contracts from the Electricity Generating Authority of Thailand (EGAT) for its two industrial waste power plants under the Feed in Tariffs scheme. The two power plants would have installed capacity of 9MW and 7MW respectively. The 9MW power plant is scheduled to commercially operation date (COD) in 3Q16, while the 7MW plant is scheduled to COD in 1Q17. We expect the company’s earnings to grow by 59.0% YoY in 2017F mainly due to electricity sale revenue contribution from the two power plants. Specifically, contribution from the two plants should account for 30% of the company’s total revenue in 2017. Additionally, the company plans to invest in three more industrial waste power plant projects totalling 30MW over the next 3-5 years. We estimate the potential upside of THB0.76 for the additional 30 MW. However, we have not included this amount into our TP as the company has not yet secured the PPA contracts from EGAT.

Venturing into industrial estate business. BWG plans to build 3-4 industrial estates specifically for factories that generate a high volume of industrial waste. The company plans to invest in the land and infrastructure for the industrial estate then sell out the land to the interested clients; in this context the company has recently signed a memorandum of understanding (MoU) with the Industrial Estate Authority of Thailand to study and develop renewable energy industrial estate from unused material. The investment cost for one industrial estate is estimated at THB1.0bn (for 1,000 rai of land and infrastructure). We are assuming i) project IRR of 17%, ii) a discount rate of 9.9% and iii) the company holds 50% stake in the project. However, since the project is currently in the negotiating stage, we have not included into our TP this potential upside amount of approximately THB0.05/share per one industrial estate.

♦ SOP valuation results in THB2.80/share

♦ Earnings expected to surge by 20.5% YoY and 59.0% YoY for 2016/17

♦ Only 25% of industry waste is properly disposed, providing huge potential for waste processors

♦ RDF enhances value of the waste collected and revenue derived is expected to increase to THB100m in 2016 from THB10m in 2015.

♦ Earnings expected to jump by 59.0% YoY in 2017F, with contributions from other industrial waste power plants; these plants will account for c.30% of total revenue by then. Another 30MW from an IW power plant may be added over the next 3-5years horizon

♦ Industrial estate business could provide an upside of THB0.05/industrial estate to our current TP



Valuation And Recommendation Through an SOP, we value BWG at THB2.80/share and recommend BUY. We expect core earnings to grow at a CAGR of 38% over the next two years from THB294m in 2015 to THB564m in 2017 which includes the RDF capacity expansion project and its two new waste power plants. We value its waste management business (Figure 2) at THB2.42/share and its two power plant projects (Figure 3) at THB0.38/share. Over the next 3-5 years, BWG plans to invest in three more industrial waste power plant projects totalling 30MW and we estimate the potential upside of THB0.76/share. We believe there is a high probability that the company will receive the PPA contracts for these additional 30 MW from EGAT since the Ministry of Energy set a total installed capacity target of 50MW for industrial waste power plants before 2036. However, we have not included this potential upside in our TP as the company has not yet secured the PPA contracts from EGAT.

Its two warrants “BWG-W2” and “BWG-W3” will expire in December 2015 and June 2016 respectively. There are currently 286.2 units of BWG-W2 and 395.6 units of BWG-W3 outstanding with an exercise price of THB1.50/unit (conversion ratio of 1 warrant to 1 ordinary share). We assume the warrants will be fully exercised and our TP is based on a fully diluted number of 4,000m shares, thus the TP should not be subjected to any further dilutive impact from the exercise of these two warrants. Figure 1: BWG’s SOP valuation

THB/share Valuation Method Waste management business 2.42 DCF, WACC 9.7% Two waste power plants 0.38 DCF, WACC 8.2% TP 2.80 Potential upside 30 MW waste power plant 0.76 TP (including potential upside) 3.56

Source: RHB

We value BWG’s waste management business at THB2.42/share based on a DCF with a WACC of 9.8% and a terminal growth rate of 3%.

Figure 2: Valuation detail of the waste management business

Source: RHB

We value BWG’s two power plant projects at THB0.38/share based on a DCF with a WACC of 8.2%. We assume i) 20 years plant life ii) bases tariff of THB6.08/unit and Feed in Tariff premium of THB0.7/unit for the first 8 years upon COD (iii) BOI privilege of 0% tax for the first 8years and 20% tax rate thereafter and (iv) average EBITDA margin of 75%. We also assume no terminal value since the PPA contract expire after 20 years thus we conservatively assume all assets are fully depreciated by then and there is no salvage value.

Figure 3: Valuation detail for the two waste power plants

Source: RHB



Figure 4: Sensitivity analysis of the company’s waste management business

Source: RHB

We used a peer comparison as a corroborative method to our SOP. Although the company is currently trading at approximately similar P/E, P/B, and EV/EBITDA multiples to those of its peers (Figure 5), we believe that BTG is more attractive as it offers a higher growth potential.

Figure 5: Peer comparison Company Ticker PE (x) PB (x) EV/EBITDA (x) ROE (%) ROA (%) Waste Management Inc WM US 19.4 4.1 9.1 12.8 5.6 Progressive Waste Solutions Ltd BIN US 19.0 2.0 7.8 10.9 4.9 Takeei Corp 2151 JP 14.2 0.9 5.4 6.4 n.a. Transpacific Industries Group Ltd TPI AU 18.1 0.5 4.8 3.0 2.5 China Everbright International Ltd 257 HK 18.9 2.7 12.6 13.3 7.0 Better World Green BWG TB 17.1 1.7 6.5 10.7 7.9 Average (ex BWG) 17.9 2.0 7.9 9.3 5.0

Source: RHB, Bloomberg

0.0 1.0 2.0 3.0 4.0 7.8 2.52 2.69 2.92 3.25 3.75 8.3 2.39 2.53 2.72 2.98 3.36 8.8 2.27 2.39 2.55 2.76 3.06 9.3 2.16 2.27 2.40 2.57 2.81 9.8 2.07 2.16 2.27 2.42 2.61

10.3 1.99 2.06 2.16 2.28 2.44 10.8 1.91 1.98 2.06 2.16 2.29 11.3 1.84 1.90 1.97 2.06 2.17 11.8 1.78 1.83 1.89 1.97 2.06

Terminal growth (%)

WACC (%)



The Core Businesses Better World Green Public Company Limited (BWG) was established in 1997 with registered capital of only THB1m. The company operates under a “one-stop service” concept and provides complete industrial waste management services, including i) non-hazardous waste treatment, ii) hazardous waste treatment, iii) waste water treatment, iv) waste recycling & quality improvement of waste to be used as raw material and sustainable fuel energy and iv) other supporting business.

Figure 6: Business structure

Figure 7: Revenue breakdown by business unit

15.7 13.8 18.0 18.3 12.2

16.6 13.019.6 16.4

17.4

21.319.1

17.1 19.2 23.0

34.734.6

42.8 42.7 42.8

10.0 17.5

0.3 0.9

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2010 2011 2012 2013 2014

Sanitary Landfill Secure Landfill Waste water

Quality Improvement Subsidiaries Construction

(%)

Source: Company data Source: Company data, RHB

Non-hazardous waste treatment: the company offers non-hazardous waste management service for mid-large size manufacturers. The company adopts a German landfill system which meets international standards with a control system to prevent pollution to the soil, water, air in the surrounding area. The site is located in Saraburi province with a total service capacity of 1,000 tonnes/day.

Hazardous waste treatment: BWG also offers management service for hazardous waste. After the toxic level in the industrial waste was reduced to government regulated levels, the company would bury the proceeds in the company’s own secured landfill which is located in the Saraburi province and has a total service capacity of 500 tonnes/day.

Quality improvement & waste recycling: the company improves the quality of non-hazardous and hazardous waste which can be recycled into an alternative fuel with a high heating value. The company can handle up to 1,000 tonnes/day of industrial waste. In addition, the company has a system for filtering and processing industrial waste into RDF which can be used as alternative fuel, which is suitable for steam boilers. The company currently has an RDF production capacity of 200 tonnes/day.

Waste water treatment: such service is composed of chemical and biological treatment systems with a total capacity of up to 450 cubic meters of waste water per day. Treated waste water is recycled and used within the company without draining it to an outside area (Figure 9).

Other supporting business: the four subsidiaries providing supporting services for BWG (which account for around 40% of total revenue) are Better Waste Care (broker and marketing), Better World Transport (waste transportation service), Earth Tech Environment (recycler of industrial waste) and Akkhie Prakarn (industrial incinerator plant). Of the total income derived from these four subsidiaries, the one from Akkie Prakarn accounts for 80% and is a 51%-owned by BWG (49% by retail investors).

Industrial waste power plants. BWG secured 20 years PPA contracts from EGAT for its two industrial waste power plants under the Feed in Tariffs scheme. The two power plants will have an installed capacity of 9MW and 7MW respectively. The 9MW power plant is scheduled to COD in 3Q16, while the 7MW power plant is scheduled to COD in 1Q17. These power plants will be built relying on the newest technology and will use RDF as fuel. The investment cost for the two power plants is expected to be around THB2.4bn. Both plants are located in the Saraburi province and the company will have a 60% stake in the two projects while the remainder 40% stake is held by the company’s partner who has an extensive experience in power business.



Figure 8: BWG’s landfill site

Figure 9: Waste water treatment site

Source: Company data Source: Company data

BWG’s target customers are mid- to large-size manufacturers (eg. Rayong Purifier PCL, Pepsi-Cola Thailand Trading Co Ltd, or Yakult Thailand Ltd) which are mainly located in the central and eastern regions of Thailand (Figure 10).

Around 70% of the company’s customers are manufacturers of electronic appliance and automobile parts located in the industrial estates such as Rojana Industrial Estate, Hi-tech Industrial Estate, and Bang-pa-in Industrial Estate. In the future, the company plans to further expand its customer base by providing its services to communities in the suburban areas. Specifically, the company plans to either build waste management centers for the communities or provide consultation services only with the local government providing the financing for projects.

Figure 10: Customers By Region




Industry Overview The amount of industrial waste produced is highly correlated to the level of industrial production (IP). As the economy grows, the amount of industrial waste produced is expected to grow accordingly. According to the Ministry of Industry, of the total of 75,000 factories in Thailand approximately 97.5 percent are waste generators (WG) and only 2.4 percent are waste processors who specialize in waste treatment/disposal/recycle (WP). The Ministry of Industry estimated that manufactures in Thailand produce around 50.3m tonnes and 3.3m tonnes of non-hazardous and hazardous waste per year respectively. However, only 12.2m tonnes and 1.0m tonnes of non-hazardous and hazardous waste respectively were properly disposed by WP in 2014. In other words, only 5,300 factories or around 7% of the total factories in Thailand disposed their waste appropriately. As such, many manufacturers do not dispose their waste appropriately and creating the current illegal dumping issue in Thailand.

Figure 11: Breakdown of the total factories in Thailand

Waste Generator98%

Waste Processor2%

Source: Ministry of Industry In 2005, the Ministry of Industry issued an announcement on the industrial act “Por Sor 2548” based on industrial act “Por Sor 2535”, which required all manufacturers to be responsible for the wasted they created and mandated them to dispose the waste correctly. However, illegal disposal of industrial waste is still occurring nowadays since disposing waste correctly will incur additional costs on manufactures which in turn could damage their competitiveness. As a result, some manufacturers decide to dispose of waste illegally. Currently, the Government has become more aware of such an issue and is trying to prevent it by monitoring manufacturers’ waste transportation systems to ensure that industrial waste is properly disposed. The Ministry of Industry has set a target to enforce more factories to dispose their waste correctly from 2015-2019, which in turn, should reduce the amount of illegal dumping of non-hazardous and hazardous waste by 8.0m tonnes and 0.4m tonnes per year respectively.

Figure 12: Estimated total industrial waste produced in Thailand

38.1

2.3

12.2

10

10

20

30

40

50

60

Non-Hazardous Hazardous

Illegaly disposed Disposed by WP

(tons)

Source: Ministry of industry

Waste management in Thailand is under the legislation of the Thai Government; the Government set out laws and regulations regarding the waste management process in the country. Since an industrial waste management company needs to obtain approvals from the Pollution Control Department (PCD), the Environmental Impact

♦ Only 7% of total factories in Thailand dispose of their IW properly.

♦ Although regulations mandate proper disposal of waste, illegal disposal remains rampant



Assessments (EIA), and Health Impact Assessments (HIA), the industry has high barriers to entry and a limited number of players.

Specifically, besides BWG, there are only two major competitors in the landfill waste management business, which are the Professional Waste Technology (PRO) and The General Environmental Conservation (GENCO) (GENCO TB, NR). BWG is the biggest player with a market share of around 50%. According to Thailand’s Ministry of Industry, Thai manufacturers produced around 50m tonnes of waste in 2015, while the three major players in the waste management industry processed a combined total of around 0.8m tonnes of waste in the same year. Furthermore, the three players’ processing plants are located in different regions of the country. Therefore, the competition in the industry is still low.

Figure 13: Energy from alternative power plants set to almost triple by 2036 Energy Type 2014 (MW) Target in 2036 (MW)Municipal solid w aste (MSW) 66 500Industrial waste 0 50Biomass 2,452 5,570Biogas 312 600Biogas (Energy crop) 0 680Small hydropow er 142 376Wind 224 3,002Solar 1,299 6,000Large hydropow er 2,906 2,906Total 7,400 19,684

Source: Alternative Energy Development Plan 2015 Given the overflowing amount of industrial waste and the illegal dumping issue, the government set up a subsidy scheme for waste power plant to address this issue. According to the Alternative Energy Development plan 2015, total installed capacity from industrial waste power plants could grow to 50MW by 2036. Out of the total 50MW capacity, BWG has already secured the 20 years PPAs for two industrial waste power plants, of 9MW and 7MW, which we expect to COD in 3Q16 and 1Q17 respectively. According to the Ministry of Energy, EGAT will buy the electricity from very small power producers (VSPP) who use RDF (industrial waste) as fuel, at an average rate of 6.93/Kwh

Figure 14: Leveled cost of renewable energy

Refuse Derived Fuel (RDF)-Mixed from Municipal Solid Waste (MSW)- Less than or equal 1 MW 7.35- More than 1-3 MW 6.73- More than 3 MW 5.93Refuse Derived Fuel (RDF)-Landfilled 5.6Refuse Derived Fuel (RDF)-Industrial 6.93Biomass Less than or equal 1 MW 5.99- More than 1-3 MW 5.41- More than 3 MW 4.68Biogas (Waste) 4.1Biogas (Energy crops) 6.03Hydro Less than or equal 200 KW 4.9Wind 6.06 6.06Solar on ground 5.66Roof top- 0-10 KW 6.85- More than 10-250KW 6.4- More than 250-1,000 KW 6.01

Levelized cost (THB/Unit)Type

Source: Ministry of energy

Note that the players in industrial waste power plant business are not the same players as in the municipal solid waste (MSW) power plant industry. The PCD approval is required for industrial waste which is regulated by the Government, while the MSW is not regulated. As such, we expect the competition in the industrial waste power plant business to be very limited relative to MSW’s since the players in the MSW industry focus only on the municipal waste.

♦ BWG is the largest player, with a 50% market share. PRO and GENCO are the other players, but they operate in different regions. Competition is therefore low and plenty of room to grow for the existing players.

♦ Energy from industrial waste power plants to grow to 50MW by 2036; BWG has already secured 30% of this capacity.



Financial Analysis The company’s total revenue grew at an average rate of 19.7% per annum from THB1.06bn in 2012 to THB1.51bn in 2014 mainly due to higher average selling price. Average selling price grew from THB2,760/tonne in 2012 to THB3,912/tonne in 2014 while the total volume of industrial waste disposed by the company increased slightly from 384k tonnes in 2012 to 388k tonnes in 2014. Note that the revenue from the quality improvement unit grew the most from 2012-2014.

Note that the average selling price is based on the waste management service and transportation costs plus a certain profit margin; it is adjusted on a yearly basis.

Figure 15: Sales growth averaged 19.7% p.a from 2012-2014.

0

500

1,000

1,500

2,000

2,500

3,000

2012 2013 2014 2015F 2016F 2017F

191 248 186 204 245 282208

221 264 304350

40223

28 55 6270

78

182259 349 340

437 343453

577649

779

781 782

107

808

Sanitary Landfill Secure Landfill Waste water Quality Improvement Subsidiaries Construction Electricity sale

(THBm)

Source: Company data, RHB We expect total sale to increase by 12.3% YoY to THB1.69bn in 2015 as we forecast the total volume of industrial waste disposal to increase by around 6-7% YoY to 411.34 thousand tonnes while average selling price increase 5% YoY to THB4,108/tonnes. However, we expect the company’s total sale to grow 17.6% YoY to THB1.98bn in 2016 and 35.5% YoY to THB2.69bn in 2017 as i) the company will increase its RDF production capacity to 500tonnes/day in 1Q16 from the current production capacity of 200tonnes/day and ii) the company’s two waste power plants, with installed capacity of 9MW and 7MW, will start their COD in 3Q16 and 1Q17 respectively Figure 16: Total volume of industrial waste and average selling price

278,576

318,633

384,168 391,437 388,058411,341

506,355

428,846

2,560

3,298

2,760

3,451

3,912 4,108

3,718

4,395

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

0

100,000

200,000

300,000

400,000

500,000

600,000

2010 2011 2012 2013 2014 2015F 2016F 2017F

Industrial waste disposal volume Average selling price/ton

(tons) (THB)


Note that the we expect the total volume of industrial waste to decline in 2017 as the company plans to use around 500tonnes of RDF/day as fuel for its two waste power plants. Additionally, the average selling price should improve significantly in 2107

♦ We expect sales to grow by 59.4% over the next 2 years.

♦ Sales may jump by 17.6% YoY/ 35.5% YoY for 2016 & 2017 as the company increases RDF production capacity and two waste power plants commence operations



after a decline in 2016 since the average selling price of RDF is much lower than the average selling price of other services (THB1,000/tonne vs THB4,108)

Gross profit margin consistently increased from 28.5% in 2012 to 34.7% in 2014 mainly as a result of i) higher average selling price which was the result of company’s marketing strategy and stricter industrial waste management policy by the Government and ii) the RDF project which yielded higher profit margins. Note that the company also has high bargaining power over its customer as waste management policy is regulated by the Government and there are only few players in the industry.

We expect the company gross profit margin to improve significantly from 39.2% in 2015 to 47.8% in 2017 as the company starts recognizing revenue from its waste power plants, where the company will receive a Feed in Tariff premium of THB0.7/unit on top of the Feed in Tariff of THB6.08/unit for the first eight years of the projects.

Figure 17: Margins set to improve

28.532.8

34.7

39.241.1

47.8

27.4

31.935.4

40.242.4

51.6

7.3

12.2 13.517.4 17.8

20.9

0

10

20

30

40

50

60

2012 2013 2014 2015F 2016F 2017F

Gross profit margin EBITDA margin Net profit margin

(%)

Source: Company data, RHB Core earnings are expected to grow 20.5% YoY to THB355m in 2016 and 59.0% YoY to THB564m in 2017. The surge in core earnings in FY16 is due to higher sale from its RDF expansion while the growth in 2017 earnings is mainly due to the earnings contribution from its two waste power plants which will receive BOI benefits.

Figure 18: Interest bearing debt and D/E ratio

323536 664 664

1,6392,200

0.40.5 0.5

0.4

0.50.6

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

0

500

1,000

1,500

2,000

2,500

2012 2013 2014 2015F 2016F 2017F

Interest bearing debt D/E

(THBm) (x)

Source: Company data, RHB As at end of 2014, BWG’s debt to equity (D/E) ratio stood at 0.5x. We expect the D/E ratio to increase to 0.5x in 2016 due to debt financing of the two waste power plants projects. Note that the investment cost for the two waste power plant projects is estimated to be around THB1.4bn (company’s portion). The company plans to finance the projects through debt financing and internal cash flow. However, we believe this is still at a manageable level as it is below 1.0x while interest coverage ratio is estimated to be at 8.3x in 2017.

♦ Core earnings estimated to surge 27.8% YoY for 2016F and 56.7% YoY for 2017F



Risks

Weak economy. Approximately 70% of BWG’s customers are industrial manufacturers while the rest of 30% are manufacturers located outside the industrial estate. Hence, an economic slowdown and a weaker consumer confidence could cause BWG’s customers to lower their production and impact BWG’s performance.

Limited landfill space. Currently, the company has 250rai of landfill space with a total capacity of around 4.0m tonnes. Given that manufacturers in Thailand produce 50m tonnes per year of waste, there is a risk that the company will run out of its landfill space in the future. However, the company is planning to expand its RDF project, which will significantly reduce the amount of waste going into the landfill.

Legal risk. If hazardous and non-hazardous waste is not properly disposed of during operations, the environment of the area surrounding the sites could be affected, which in turn could lead to legal issues for the company.



Financial Exhibits

Profit & Loss (THBm) Dec-13 Dec-14 Dec-15F Dec-16F Dec-17FTotal turnover 1,333 1,504 1,690 1,988 2,695 Cost of sales (896) (982) (1,027) (1,170) (1,406) Gross profit 437 522 662 818 1,289 Gen & admin expenses (130) (141) Selling expenses (44) (53) Other operating costs (39) (46) (253) (284) (332) Operating profit 223 283 409 534 958 Operating EBITDA 432 534 665 827 1,373 Depreciation of fixed assets (208) (251) (256) (292) (415) Operating EBIT 223 283 409 534 958 Other recurring income 18 14 15 17 17 Interest expense (26) (36) (34) (40) (115) Pre-tax profit 216 261 391 512 860 Taxation (32) (35) (66) (92) (92) Minority interests (20) (24) (30) (65) (204) Profit after tax & minorities 163 203 294 355 564 Reported net profit 163 203 294 355 564 Recurring net profit 163 203 294 355 564 Source: Company data, RHB

Cash flow (THBm) Dec-13 Dec-14 Dec-15F Dec-16F Dec-17FOperating profit 223 283 409 534 958 Depreciation & amortisation 208 251 256 292 415 Change in working capital (18) (82) (30) (58) (157) Other operating cash flow 48 61 23 26 29 Operating cash flow 461 513 658 795 1,245 Interest paid (26) (36) (34) (40) (115) Tax paid (44) (49) (66) (92) (92) Cash flow from operations 392 429 558 663 1,038 Capex (547) (283) (300) (500) (600) Other investing cash flow (24) (10) 2 2 2 Cash flow from investing activities (571) (294) (298) (498) (598) Dividends paid 123 (93) (59) (71) (113) Proceeds from issue of shares 0 102 600 600 - Increase in debt 125 197 - 975 561 Other financing cash flow (79) (111) - - - Cash flow from financing activities 170 95 541 1,504 448 Cash at beginning of period 264 253 484 1,285 2,953 Total cash generated (10) 230 800 1,669 889 Implied cash at end of period 254 484 1,284 2,953 3,842 Source: Company data, RHB



Financial Exhibits

Balance Sheet (THBm) Dec-13 Dec-14 Dec-15F Dec-16F Dec-17FTotal cash and equivalents 253 484 1,285 2,953 3,842 Accounts receivable 373 442 490 577 782 Other current assets 20 28 28 28 28 Total current assets 647 954 1,802 3,558 4,651 Total investments 120 116 116 116 116 Tangible fixed assets 1,711 1,756 1,800 2,008 2,193 Total non-current assets 1,831 1,872 1,916 2,124 2,309 Total assets 2,478 2,826 3,719 5,682 6,960 Short-term debt 282 346 346 346 346 Accounts payable 202 180 188 214 257 Other current liabilities 42 49 49 49 49 Total current liabilities 526 575 583 610 653 Total long-term debt 254 317 317 1,292 1,853 Other liabilities 47 51 70 84 103 Total non-current liabilities 301 368 387 1,376 1,956 Total liabilities 827 943 971 1,985 2,609 Share capital 714 800 900 1,000 1,000 Retained earnings reserve 476 591 823 1,107 1,558 Other reserves 274 291 794 1,294 1,294 Shareholders' equity 1,464 1,682 2,517 3,401 3,852 Minority interests 187 201 231 296 500 Total equity 1,652 1,883 2,748 3,696 4,352 Total liabilities & equity 2,478 2,826 3,719 5,682 6,960 Source: Company data, RHB

Key Ratios (THB) Dec-13 Dec-14 Dec-15F Dec-16F Dec-17FRevenue growth (%) 26.1 12.9 12.3 17.7 35.5Operating profit growth (%) 72.9 26.7 44.5 30.7 79.3Net profit growth (%) 110.5 24.3 45.0 20.5 59.0EPS growth (%) 106.6 11.1 28.9 8.5 59.0BVPS growth (%) 14.9 2.6 33.1 21.6 13.3Operating margin (%) 16.8 18.8 24.2 26.9 35.5Net profit margin (%) 12.2 13.5 17.4 17.8 20.9Return on average assets (%) 7.5 7.7 9.0 7.5 8.9Return on average equity (%) 11.9 12.9 14.0 12.0 15.6Net debt to equity (%) 17.1 9.6 (22.6) (35.6) (37.7)DPS 0.01 0.03 0.02 0.02 0.03Recurrent cash flow per share 0.14 0.13 0.15 0.17 0.26 Source: Company data, RHB



SWOT Analysis

• The largest industrial waste management company in Thailand

• Earnings may jump significantly in 2017 from the upcoming 2 waste power plant projects

• Legal issues brought up by the community surrounding its site

• Diversifying into industrial estate business

• Limited landfill space • The Government’s inability to enforce regulations

-60%

-30%

0%

30%

60%

90%

120%

0

10

20

30

40

50

60

Jan-

13

Jan-

14

Jan-

15

Jan-

16

Jan-

17

P/E (x) vs EPS growth

P/E (x) (lhs) EPS growth (rhs)

0%

2%

5%

7%

9%

11%

14%

16%

18%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Jan-

13

Jan-

14

Jan-

15

Jan-

16

Jan-

17

P/BV (x) vs ROAE

P/B (x) (lhs) Return on average equity (rhs)

Source: Company data, RHB Source: Company data, RHB

Company Profile Better World Green provides non-hazardous and hazardous industrial waste management services.



Recommendation Chart

0.1

0.6

1.1

1.6

2.1

2.6

Nov-10 Feb-12 May-13 Sep-14

Price Close

na

3.10

3.50

Recommendations & Target Price

Buy Neutral Sell Trading Buy Take Profit Not Rated

Source: RHB, Bloomberg

Date Recommendation Target Price Price

2013-11-18 Buy 3.50 0.62

2013-06-19 Buy 3.10 0.54 Source : RHB, Bloomberg

17

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. Look to accumulate at lower levels Sell: Share price may fall by more than 10% over the next 12 months Not Rated: Stock is not within regular research coverage Investment Research Disclaimers RHB has issued this report for information purposes only. This report is intended for circulation amongst RHB and its affiliates’ clients generally or such persons as may be deemed eligible by RHB to receive this report and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. This report is not intended, and should not under any circumstances be construed as, an offer or a solicitation of an offer to buy or sell the securities referred to herein or any related financial instruments. This report may further consist of, whether in whole or in part, summaries, research, compilations, extracts or analysis that has been prepared by RHB’s strategic, joint venture and/or business partners. No representation or warranty (express or implied) is given as to the accuracy or completeness of such information and accordingly investors should make their own informed decisions before relying on the same. 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 the applicable laws or regulations. By accepting this report, the recipient hereof (i) represents and warrants that it is lawfully able to receive this document under the laws and regulations of the jurisdiction in which it is located or other applicable laws and (ii) acknowledges and agrees to be bound by the limitations contained herein. Any failure to comply with these limitations may constitute a violation of applicable laws. All the information contained herein is based upon publicly available information and has been obtained from sources that RHB believes to be reliable and correct at the time of issue of this report. However, such sources have not been independently verified by RHB and/or its affiliates and this report does not purport to contain all information that a prospective investor may require. The opinions expressed herein are RHB’s present opinions only and are subject to change without prior notice. RHB is not under any obligation to update or keep current the information and opinions expressed herein or to provide the recipient with access to any additional information. Consequently, RHB does not guarantee, represent or warrant, expressly or impliedly, as to the adequacy, accuracy, reliability, fairness or completeness of the information and opinion contained in this report. Neither RHB (including its officers, directors, associates, connected parties, and/or employees) nor does any of its agents accept any liability for any direct, indirect or consequential losses, loss of profits and/or damages that may arise from the use or reliance of this research report and/or further communications given in relation to this report. Any such responsibility or liability is hereby expressly disclaimed. Whilst every effort is made to ensure that statement of facts made in this report are accurate, all estimates, projections, forecasts, expressions of opinion and other subjective judgments contained in this report are based on assumptions considered to be reasonable and must not be construed as a representation that the matters referred to therein will occur. Different assumptions by RHB or any other source may yield substantially different results and recommendations contained on one type of research product may differ from recommendations contained in other types of research. The performance of currencies may affect the value of, or income from, the securities or any other financial instruments referenced in this report. Holders of depositary receipts backed by the securities discussed in this report assume currency risk. Past performance is not a guide to future performance. Income from investments may fluctuate. The price or value of the investments to which this report relates, either directly or indirectly, may fall or rise against the interest of investors. This report does not purport to be comprehensive or to contain all the information that a prospective investor may need in order to make an investment decision. The recipient of this report is making its own independent assessment and decisions regarding any securities or financial instruments referenced herein. Any investment discussed or recommended in this report may be unsuitable for an investor depending on the investor’s specific investment objectives and financial position. The material in this report is general information intended for recipients who understand the risks of investing in financial instruments. This report does not take into account whether an investment or course of action and any associated risks are suitable for the recipient. Any recommendations contained in this report must therefore not be relied upon as investment advice based on the recipient's personal circumstances. Investors should make their own independent evaluation of the information contained herein, consider their own investment objective, financial situation and particular needs and seek their own financial, business, legal, tax and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report. This report may contain forward-looking statements which are often but not always identified by the use of words such as “believe”, “estimate”, “intend” and “expect” and statements that an event or result “may”, “will” or “might” occur or be achieved and other similar expressions. Such forward-looking statements are based on assumptions made and information currently available to RHB and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement to be materially different from any future results, performance or achievement, expressed or implied by such forward-looking statements. Caution should be taken with respect to such statements and recipients of this report should not place undue reliance on any such forward-looking statements. RHB expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events.

18

The use of any website to access this report electronically is done at the recipient’s own risk, and it is the recipient’s sole responsibility to take precautions to ensure that it is free from viruses or other items of a destructive nature. This report may also provide the addresses of, or contain hyperlinks to, websites. RHB takes no responsibility for the content contained therein. Such addresses or hyperlinks (including addresses or hyperlinks to RHB own website material) are provided solely for the recipient’s convenience. The information and the content of the linked site do not in any way form part of this report. Accessing such website or following such link through the report or RHB website shall be at the recipient’s own risk. This report may contain information obtained from third parties. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. Third party content providers give no express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use. Third party content providers shall not be liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or profits and opportunity costs) in connection with any use of their content. The research analysts responsible for the production of this report hereby certifies that the views expressed herein accurately and exclusively reflect his or her personal views and opinions about any and all of the issuers or securities analysed in this report and were prepared independently and autonneomously. The research analysts that authored this report are precluded by RHB in all circumstances from trading in the securities or other financial instruments referenced in the report, or from having an interest in the company(ies) that they cover. RHB and/or its affiliates and/or their directors, officers, associates, connected parties and/or employees, may have, or have had, interests in the securities or qualified holdings, in subject company(ies) mentioned in this report or any securities related thereto and may from time to time add to or dispose of, or may be materially interested in, any such securities. Further, RHB and/or its affiliates may have, or have had, business relationships with the subject company(ies) mentioned in this report and may from time to time seek to provide investment banking or other services to the subject company(ies) referred to in this research report. As a result, investors should be aware that a conflict of interest may exist. The contents of this report is strictly confidential and may not be copied, reproduced, published, distributed, transmitted or passed, in whole or in part, to any other person without the prior express written consent of RHB and/or its affiliates. This report has been delivered to RHB and its affiliates’ clients for information purposes only and upon the express understanding that such parties will use it only for the purposes set forth above. By electing to view or accepting a copy of this report, the recipients have agreed that they will not print, copy, videotape, record, hyperlink, download, or otherwise attempt to reproduce or re-transmit (in any form including hard copy or electronic distribution format) the contents of this report. RHB and/or its affiliates accepts no liability whatsoever for the actions of third parties in this respect. The contents of this report are subject to copyright. Please refer to Restrictions on Distribution below for information regarding the distributors of this report. Recipients must not reproduce or disseminate any content or findings of this report without the express permission of RHB and the distributors. The securities mentioned in this publication may not be eligible for sale in some states or countries or certain categories of investors. The recipient of this report should have regard to the laws of the recipient’s place of domicile when contemplating transactions in the securities or other financial instruments referred to herein. The securities discussed in this report may not have been registered in such jurisdiction. Without prejudice to the foregoing, the recipient is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report. RESTRICTIONS ON DISTRIBUTION Malaysia This report is issued and distributed in Malaysia by RHB Research Institute Sdn Bhd. The views and opinions in this report are our own as of the date hereof and is subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. RHB Research Institute Sdn Bhd has no obligation to update its opinion or the information in this report. Thailand This report is issued and distributed in the Kingdom of Thailand by RHB Securities (Thailand) PCL, a licensed securities company that is authorised by the Ministry of Finance, regulated by the Securities and Exchange Commission of Thailand and is a member of the Stock Exchange of Thailand. The Thai Institute of Directors Association has disclosed the Corporate Governance Report of Thai Listed Companies made pursuant to the policy of the Securities and Exchange Commission of Thailand. RHB Securities (Thailand) PCL does not endorse, confirm nor certify the result of the Corporate Governance Report of Thai Listed Companies. Indonesia This report is issued and distributed in Indonesia by PT RHB Securities Indonesia. This research does not constitute an offering document and it should not be construed as an offer of securities in Indonesia. Any securities offered or sold, directly or indirectly, in Indonesia or to any Indonesian citizen or corporation (wherever located) or to any Indonesian resident in a manner which constitutes a public offering under Indonesian laws and regulations must comply with the prevailing Indonesian laws and regulations.

19

Singapore This report is issued and distributed in Singapore by RHB Research Institute Singapore Pte Ltd and it may only be distributed in Singapore to accredited investors, expert investors and institutional investors as defined in the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time. By virtue of distribution to these categories of investors, RHB Research Institute Singapore Pte Ltd and its representatives are not required to comply with Section 36 of the Financial Advisers Act (Chapter 110) (Section 36 relates to disclosure of RHB Research Institute Singapore Pte Ltd ’s interest and/or its representative's interest in securities). Recipients of this report in Singapore may contact RHB Research Institute Singapore Pte Ltd in respect of any matter arising from or in connection with the report. Hong Kong This report is issued and distributed in Hong Kong by RHB Securities Hong Kong Limited (興業僑豐證券有限公司) (CE No.: ADU220) (“RHBSHK”) which is licensed in Hong Kong by the Securities and Futures Commission for Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. Any investors wishing to purchase or otherwise deal in the securities covered in this report should contact RHB Securities Hong Kong Limited. United States This report was prepared by RHB and is being distributed solely and directly to “major” U.S. institutional investors as defined under, and pursuant to, the requirements of Rule 15a-6 under the U.S. Securities and Exchange Act of 1934, as amended (the “Exchange Act”). RHB is not registered as a broker-dealer in the United States and does not offer brokerage services to U.S. persons. Any order for the purchase or sale of the securities discussed herein that are listed on Bursa Malaysia Securities Berhad must be placed with and through Auerbach Grayson (“AG”). Any order for the purchase or sale of all other securities discussed herein must be placed with and through such other registered U.S. broker-dealer as appointed by RHB from time to time as required by the Exchange Act Rule 15a-6. This report is confidential and not intended for distribution to, or use by, persons other than the recipient and its employees, agents and advisors, as applicable. Additionally, where research is distributed via Electronic Service Provider, the analysts whose names appear in this report are not registered or qualified as research analysts in the United States and are not associated persons of Auerbach Grayson AG or such other registered U.S. broker-dealer as appointed by RHB from time to time and therefore may not be subject to any applicable restrictions under Financial Industry Regulatory Authority (“FINRA”) rules on communications with a subject company, public appearances and personal trading. Investing in any non-U.S. securities or related financial instruments discussed in this research report may present certain risks. The securities of non-U.S. issuers may not be registered with, or be subject to the regulations of, the U.S. Securities and Exchange Commission. Information on non-U.S. securities or related financial instruments may be limited. Foreign companies may not be subject to audit and reporting standards and regulatory requirements comparable to those in the United States. The financial instruments discussed in this report may not be suitable for all investors. Transactions in foreign markets may be subject to regulations that differ from or offer less protection than those in the United States. OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST Malaysia RHB does not have qualified shareholding (1% or more) in the subject company (ies) covered in this report except for: a) - RHB and/or its subsidiaries are not liquidity providers or market makers for the subject company (ies) covered in this report except for: a) - RHB and/or its subsidiaries have not participated as a syndicate member in share offerings and/or bond issues in securities covered in this report in the last 12 months except for: a) - RHB has not provided investment banking services to the company/companies covered in this report in the last 12 months except for: a) - Thailand RHB Securities (Thailand) PCL and/or its directors, officers, associates, connected parties and/or employees, may have, or have had, interests and/or commitments in the securities in subject company(ies) mentioned in this report or any securities related thereto. Further, RHB Securities (Thailand) PCL may have, or have had, business relationships with the subject company(ies) mentioned in this report. As a result, investors should exercise their own judgment carefully before making any investment decisions. Indonesia PT RHB Securities Indonesia is not affiliated with the subject company(ies) covered in this report both directly or indirectly as per the definitions of

20

affiliation above. Pursuant to the Capital Market Law (Law Number 8 Year 1995) and the supporting regulations thereof, what constitutes as affiliated parties are as follows: 1. Familial relationship due to marriage or blood up to the second degree, both horizontally or vertically;

2. Affiliation between parties to the employees, Directors or Commissioners of the parties concerned;

3. Affiliation between 2 companies whereby one or more member of the Board of Directors or the Commissioners are the same;

4. Affiliation between the Company and the parties, both directly or indirectly, controlling or being controlled by the Company;

5. Affiliation between 2 companies which are controlled, directly or indirectly, by the same party; or

6. Affiliation between the Company and the main Shareholders.

PT RHB Securities Indonesia is not an insider as defined in the Capital Market Law and the information contained in this report is not considered as insider information prohibited by law. Insider means: a. a commissioner, director or employee of an Issuer or Public Company;

b. a substantial shareholder of an Issuer or Public Company;

c. an individual, who because of his position or profession, or because of a business relationship with an Issuer or Public Company, has access to inside information; and

d. an individual who within the last six months was a Person defined in letters a, b or c, above.

Singapore RHB Research Institute Singapore Pte Ltd and/or its subsidiaries and/or associated companies do not make a market in any securities covered in this report, except for: (a) - The staff of RHB Research Institute Singapore Pte Ltd and its subsidiaries and/or its associated companies do not serve on any board or trustee positions of any issuer whose securities are covered in this report, except for: (a) - RHB Research Institute Singapore Pte Ltd and/or its subsidiaries and/or its associated companies do not have and have not within the last 12 months had any corporate finance advisory relationship with the issuer of the securities covered in this report or any other relationship (including a shareholding of 1% or more in the securities covered in this report) that may create a potential conflict of interest, except for: (a) - Hong Kong RHBSHK or any of its group companies may have financial interests in in relation to an issuer or a new listing applicant (as the case may be) the securities in respect of which are reviewed in the report, and such interests aggregate to an amount equal to or more than (a) 1% of the subject company’s market capitalization (in the case of an issuer as defined under paragraph 16 of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (the “Code of Conduct”); and/or (b) an amount equal to or more than 1% of the subject company’s issued share capital, or issued units, as applicable (in the case of a new listing applicant as defined in the Code of Conduct). Further, the analysts named in this report or their associates may have financial interests in relation to an issuer or a new listing applicant (as the case may be) in the securities which are reviewed in the report. RHBSHK or any of its group companies may make a market in the securities covered by this report. RHBSHK or any of its group companies may have analysts or their associates, individual(s) employed by or associated with RHBSHK or any of its group companies serving as an officer of the company or any of the companies covered by this report. RHBSHK or any of its group companies may have received compensation or a mandate for investment banking services to the company or any of the companies covered by this report within the past 12 months. Note: The reference to “group companies” above refers to a group company of RHBSHK that carries on a business in Hong Kong in (a) investment banking; (b) proprietary trading or market making; or (c) agency broking, in relation to securities listed or traded on The Stock Exchange of Hong Kong Limited.

21

Kuala Lumpur Hong Kong Singapore

RHB Research Institute Sdn Bhd Level 11, Tower One, RHB Centre

Jalan Tun Razak Kuala Lumpur

Malaysia Tel : +(60) 3 9280 2185 Fax : +(60) 3 9284 8693

RHB Securities Hong Kong Ltd.

12th Floor World-Wide House 19 Des Voeux Road Central, Hong Kong

Tel : +(852) 2525 1118 Fax : +(852) 2810 0908

RHB Research Institute Singapore

Pte Ltd (formerly known as DMG & Partners Research Pte Ltd)

10 Collyer Quay #09-08 Ocean Financial Centre

Singapore 049315 Tel : +(65) 6533 1818 Fax : +(65) 6532 6211

Jakarta Shanghai Bangkok

PT RHB Securities Indonesia Wisma Mulia, 20th Floor

Jl. Jenderal Gatot Subroto No. 42 Jakarta 12710, Indonesia Tel : +(6221) 2783 0888 Fax : +(6221) 2783 0777

RHB (China) Investment Advisory Co. Ltd.

Suite 4005, CITIC Square 1168 Nanjing West Road

Shanghai 20041 China

Tel : +(8621) 6288 9611 Fax : +(8621) 6288 9633

RHB Securities (Thailand) PCL

10th Floor, Sathorn Square Office Tower 98, North Sathorn Road, Silom

Bangrak, Bangkok 10500 Thailand

Tel: +(66) 2 862 9999 Fax : +(66) 2 862 9799

Thai Institute of Directors Association (IOD) – Corporate Governance Report Rating 2015

Excellent ADVANC CPN GRAMMY KBANK MCOT PS RATCH SCB THCOM WACOAL BAFS DRT HANA KCE MINT PSL ROBINS SCC TISCO BCP DTAC HMPRO KKP MONO PTT SAMART SE-ED TKT BIGC DTC INTUCH KTB NKI PTTEP SAMTEL SIM TMB BTS EASTW IRPC LHBANK PHOL PTTGC SAT SNC TOP CK EGCO IVL LPN PPS QTC SC SPALI VGI

Very Good AAV BBL COL HEMRAJ MC PG SCG SST THIP TPC TWS ACAP BDMS CPF HOTPOT MEGA PJW SEAFCO STA THRE TPCORP UAC AGE BECL CPI HYDRO MFEC PM SFP STEC THREL TRC UT AHC BKI CSL ICC NBC PPP SIAM SVI TICON TRU UV AKP BLA DCC ICHI NCH PR SINGER SWC TIP TRUE VNT AMATA BMCL DELTA INET NINE PRANDA SIS SYMC TIPCO TSC WAVE ANAN BOL DEMCO IRC NSI PREB SITHAI SYNTEC TK TSTE WINNER AOT BROOK ECF KSL NTV PT SMK TASCO TKS TSTH YUASA APCS BWG EE KTC OCC PTG SMPC TBSP TMI TTA ZMICO ARIP CENTEL ERW LANNA OGC Q-CON SMT TCAP TMILL TTCL ASIMAR CFRESH GBX LH OISHI QH SNP TF TMT TTW ASK CHO GC LOXLEY OTO RS SPI TGCI TNDT TU ASP CIMBT GFPT LRH PAP S&J SSF THAI TNITY TVD BANPU CM GLOBAL MACO PDI SABINA SSI THANA TNL TVO BAY CNT GUNKUL MBK PE SAMCO SSSC THANI TOG TWFP* * On Oct 1,2015 TWFP TWFP merged with TWS resulting in a new company, TWPC

Good 2S AS CBG DNA GCAP ITD LHK MK PATO PTL SEAOIL STPI AEC ASIA CGD EARTH GENCO JSP LIT MODERN PB PYLON SIRI SUC AEONTS AUCT CHG EASON GL JTS LIVE MOONG PCA QLT SKR SUSCO AF AYUD CHOW ECL GLAND JUBILE LST MPG PCSGH RCL SMG SUTHA AH BA CI EFORL GLOW KASET M MSC PDG RICHY SOLAR SYNTEC AIRA BEAUTY CITY ESSO GOLD KBS MAJOR MTI PF RML SORKON TAE AIT BEC CKP FE GYT KCAR MAKRO MTLS PICO RPC SPA TAKUNI AJ BFIT CNS FIRE HTC KGI MATCH NC PL S SPC TCC AKR BH CPALL FOCUS HTECH KKC MATI NOK PLANB SALEE SPCG TCCC AMANAH BIG CPL FORTH IEC KTIS MBKET NUSA PLAT SAPPE SPPT TCJ AMARIN BJC CSC FPI IFEC KWC M-CHAI NWR PPM SAWAD SPVI TEAM AP BJCHI CSP FSMART IFS KYE MFC NYT PRG SCCC SRICHA TFD APCO BKD CSS FSS IHL L&E MILL OCEAN PRIN SCN SSC TFI AQUA BTNC CTW FVC IRCP LALIN MJD PACE PSTC SCP STANLY TIC TIW TPIPL UPF VPO TLUXE TRT UPOIC WHA TMC TSE UREKA WIN TMD TSR UWC XO TOPP UMI VIBHA TPCH UP VIH

IOD (IOD Disclaimer)

การเปิดเผลผลการสํารวจของสมาคมสง่เสริมสถาบนักรรมการบริษัทไทย (IOD) ในเร่ืองการกํากบัดแูลกิจการ (Corporate Governance) นีเ้ป็นการ

ดําเนินการตามนโยบายของสํานกังานคณะกรรมการกํากบัหลกัทรัพย์และตลาดหลกัทรัพย์ โดยการสํารวจของ IOD เป็นการสํารวจและประเมินจากข้อมลูของบรษัทจด

ทะเบียนในตลาดหลกัทรัพย์แหง่ประเทศไทยและตลาดหลกัทรัพย์เอ็มเอไอ ที่มีการเปิดเผยตอ่สาธารณะและเป็นข้อมลูที่ผู้ลงทนุทัว่ไปสามารถเข้าถงึได้ ดงันัน้ผลสํารวจ

ดงักลา่วจงึเป็นการนําเสนอในมมุมองของบคุคลภายนอกโดยไมไ่ด้เป็นการประเมินการปฏิบตัิและมิได้มีการใช้ข้อมลูภายในในการประเมิน

อนึ่ง ผลการสาํรวจดงักลา่ว เป็นผลการสํารวจ ณ วนัที่ปรากฎในรายงานการกํากบัดแูละกิจการบริษัทจดทะเบียนไทยเทา่นัน้ ดงันัน้ผลการสํารวจจงึอาจ

เปลี่ยนแปลงได้ภายหลงัวนัดงักลา่ว ทัง้นีบ้ริษัทหลกัทรัพย์ อาร์เอสบี จํากดั (มหาชน) มิได้ยืนยนัหรือรับรองถึงความถกูต้องของผลการสํารวจดงักลา่วแตอ่ยา่งใด

Sustainability Development by Industry ( 34 record(s) found)

Symbol Company Name CG

Score 1/

AGM Level 2/

Anti-corruption Progress Indicator 3/ Sector

AI ASIAN INSULATORS PUBLIC COMPANY LIMITED - 4 No progress SET - ENERG

AKR EKARAT ENGINEERING PUBLIC COMPANY LIMITED 3 4 No progress SET - ENERG

BAFS BANGKOK AVIATION FUEL SERVICES PCL. 5 5 4 SET - ENERG BANPU BANPU PUBLIC COMPANY LIMITED 4 5 4 SET - ENERG

BCP THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED 5 5 4 SET - ENERG

CKP CK POWER PUBLIC COMPANY LIMITED 3 4 2 SET - ENERG DEMCO DEMCO PUBLIC COMPANY LIMITED 3 4 2 SET - ENERG

EARTH ENERGY EARTH PUBLIC COMPANY LIMITED - 4 No progress SET - ENERG

EASTW EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PCL. 4 5 4 SET - ENERG

EGCO ELECTRICITY GENERATING PUBLIC COMPANY LIMITED 5 5 4 SET - ENERG

ESSO ESSO (THAILAND) PUBLIC COMPANY LIMITED 3 4 1 SET - ENERG

GLOW GLOW ENERGY PUBLIC COMPANY LIMITED 3 4 2 SET - ENERG

GPSC GLOBAL POWER SYNERGY PUBLIC COMPANY LIMITED - - - SET - ENERG

GUNKUL GUNKUL ENGINEERING PUBLIC COMPANY LIMITED 4 5 Partially progress SET - ENERG

IFEC INTER FAR EAST ENGINEERING PUBLIC COMPANY LIMITED - 4 2 SET - ENERG

IRPC IRPC PUBLIC COMPANY LIMITED 5 4 4 SET - ENERG

LANNA THE LANNA RESOURCES PUBLIC COMPANY LIMITED 4 5 4 SET - ENERG

MDX M.D.X. PUBLIC COMPANY LIMITED - 3 No progress SET - ENERG PTG PTG ENERGY PUBLIC COMPANY LIMITED 3 4 4 SET - ENERG PTT PTT PUBLIC COMPANY LIMITED 5 5 4 SET - ENERG

PTTEP PTT EXPLORATION AND PRODUCTION PUBLIC COMPANY LIMITED 5 5 4 SET - ENERG

RATCH RATCHABURI ELECTRICITY GENERATING HOLDING PUBLIC CO.,LTD. 4 5 2 SET - ENERG

RPC RPCG PUBLIC COMPANY LIMITED - 4 2 SET - ENERG

SCG SAHACOGEN (CHONBURI) PUBLIC COMPANY LIMITED 3 5 2 SET - ENERG

SCN SCAN INTER PUBLIC COMPANY LIMITED - 3 - SET - ENERG

SGP SIAMGAS AND PETROCHEMICALS PUBLIC COMPANY LIMITED - 3 2 SET - ENERG

SOLAR SOLARTRON PUBLIC COMPANY LIMITED 3 4 No progress SET - ENERG SPCG SPCG PUBLIC COMPANY LIMITED 3 4 2 SET - ENERG

SUPER SUPERBLOCK PUBLIC COMPANY LIMITED - - 2 SET - ENERG SUSCO SUSCO PUBLIC COMPANY LIMITED - 5 2 SET - ENERG

TAE THAI AGRO ENERGY PUBLIC COMPANY LIMITED - 5 2 SET - ENERG

TCC THAI CAPITAL CORPORATION PUBLIC COMPANY LIMITED - 4 No progress SET - ENERG

TOP THAI OIL PUBLIC COMPANY LIMITED 5 4 4 SET - ENERG TTW TTW PUBLIC COMPANY LIMITED 4 5 2 SET - ENERG

1 CG Score 2014 from Thai Institute of Directors Association (IOD) 2 AGM Level 2015 from Thai Investors Association 3 Anti-corruption Progress Indicator 2014 from Thaipat Institute (as of July 27, 2015) : Comprises level 1 to 5 as follows Level 1: Committed Level 2: Declared Level 3: Established Level 4: Certified Level 5:

Extended 4 Stock Exchange of Thailand : Financial Data / Company Business / Address / Major Shareholders / Management / Business News / Opportunity day Website users agree and acknowledge that the copyright for it is The SET and can be used for education or only private investment. In cases where the data commercially, Please contact Information Services Department Stock Exchange of Thailand e-mail : [email protected]

http://www.thai-iod.com/th/projects-2-detail.asp?id=254

http://www.thaiinvestors.com/index.php?mode=preview&lay=show&ac=article&Id=539377536&Ntype=2

http://www.thaipat.org/

http://www.set.or.th/set/commonslookup.do?language=th&country=EN

mailto:[email protected]

re-initiating coverage, 23 november 2015

Documents