This document summarizes the financial performance and outlook of KGI Securities Investment Advisory Co., Ltd. for 2012. Some key points: 1) Revenue is expected to increase by 10-15% to NT$697.8 million in 2012, driven by growth in institutional sales and trading and wealth management fees. 2) Pre-tax profit is forecast to rise by 15-20% to NT$12.1 million in 2012, with EPS growing by around 15% to NT$5.09. 3) The company expects to pay dividends of NT$2-3 per share in 2012, representing a dividend payout ratio of 40-60%.

1. (3231.TW/3231 TT, )
2012 1 5
1 12
2 886.2.2181.8726
3 angelah@kgisia.com.tw
663 0.3% 22%
1,951.3 17% 21%
O
2001 2004
(2353.TW, NT$36.2, 12 4Q11 320
DMS 310
16% 940 3-4%
IA
HP( ) 100-110
2382.TW,
17% 3%
NT$64.2, 2324.TW,
35% 67%
NT$31.3,
2012
N 15-20%
1 4 ( ) 39.00 TV ( )
52 ( / ): 29.6 - 52.7 40%
: / 81/2,685 20% 15%
( ): 2,085
( ): 2,085 20%
( ): 1,147
3M ( ): 14.49
(3,6,12M) (%) 14; -11.2; -26
(3,6,12M) (%) 15; 10; -6
2012 40% 2012
20%
10-15% Ultrabook
K 10% 300-400 2011
: 2009 2010 2011F 2012F
2012
546,666 615,185 634,722 697,836
10,749 13,759 10,212 12,082 400 2012
9,135 12,030 9,007 10,613 25% 2012
EPS ( ) 4.70 5.84 4.33 5.09 Facebook( ) 30% 2012
46 9 2012
2012 (2011 1.6% 2012
1.7-1.8%) ( 7.65 ) (6% )
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2. 12 31 ( ) 2008A 2009A 2010A 2011F 2012F 12 31 ( ) 2008A 2009A 2010A 2011F 2012F
139,461 180,296 217,654 218,543 230,335 445,118 546,666 615,185 634,722 697,836
113,565 152,020 181,172 175,303 183,138 420,248 516,716 580,661 602,559 661,417
15,387 22,201 42,217 31,090 25,043 24,870 29,949 34,524 32,162 36,419
31,892 27,669 33,633 34,901 38,310
16,253 19,200 20,765 21,950 24,337
63,719 99,379 102,069 105,311 115,783
8,617 10,749 13,759 10,212 12,082
2,568 2,771 3,253 4,001 4,002
(500) (294) (104) (163) (275)
25,896 28,275 36,481 43,240 47,196
4,388 5,861 7,805 8,125 8,481 278 84 478 623 505
17,421 17,900 23,497 30,915 34,415 777 378 581 786 780
4,088 4,514 5,179 4,200 4,300 239 341 333 360 396
101,678 126,281 160,784 157,965 164,355 603 700 1,357 850 900
90,418 118,482 158,110 134,799 142,987 (2) (36) (10) 0 0
77,961 101,725 98,516 102,232 112,217 8,958 11,460 15,335 11,259 13,103
2,880 2,026 42,049 22,566 20,768 1,958 2,325 3,305 2,252 2,490
9,578 14,731 17,545 10,001 10,002 7,000 9,135 12,030 9,007 10,613
11,260 7,800 2,674 23,166 21,368 EBITDA 12,069 15,963 19,015 15,812 17,932
9,858 5,765 143 22,566 20,768
3.91 4.70 5.84 4.33 5.09
1,402 2,034 2,531 600 600
37,783 54,014 56,870 60,578 65,979
15,166 18,643 19,809 20,849 20,849
12,259 19,155 14,799 14,799 14,799
10,358 16,216 22,262 24,930 30,332
0 0 0 0 0 12 31 ( ) 2008A 2009A 2010A 2011F 2012F
15,397 11,350 7,547 5,211 12,222
7,000 9,135 12,030 9,007 10,613
3,453 5,214 5,257 5,600 5,850
5,070 (2,724) (9,530) (9,087) (3,895)
12 31 ( ) 2008A 2009A 2010A 2011F 2012F (125) (275) (210) (310) (346)
(% ) (9,338) (7,318) (13,253) (12,049) (9,460)
55.2 22.8 12.5 3.2 9.9 (6,992) (4,608) (9,593) (11,718) (8,000)
7.5 24.7 28.0 (25.8) 18.3 (646) (1,198) (1,735) (10) (10)
EBITDA 12.2 32.3 19.1 (16.8) 13.4
(1,700) (1,512) (1,925) (321) (1,450)
(6.3) 30.5 31.7 (25.1) 17.8
Free Cash Flow 6,059 4,032 (5,706) (6,838) 2,762
(9.4) 20.2 24.3 (25.9) 17.6
(%) 1,262 2,783 25,722 (4,289) (8,809)
5.6 5.5 5.6 5.1 5.2 (2,033) 7,097 (9,175) (5,299) (5,212)
1.9 2.0 2.2 1.6 1.7 2,669 (4,947) 34,401 2,940 (3,597)
EBITDA 2.7 2.9 3.1 2.5 2.6 626 632 496 (1,931) 0
1.6 1.7 2.0 1.4 1.5 7,321 6,815 20,016 (11,128) (6,046)
5.7 5.7 6.0 4.1 4.7
19.8 19.9 21.7 15.3 16.8
(%) 33.7 14.4 74.2 74.5 63.0
(%) Net cash Net cash Net cash 23.2 25.0 ROIC (Return on Invested Capital)
(X) 12.5 31.3 27.4 15.3 17.8
12 31 1- + + =
(X) 2.7 4.9 0.4 0.5 0.6
Cash Flow Int. Coverage (X) 19.8 30.0 13.0 6.6 15.7 2008A 93.6% 0.8% 3.7% 1.9%
Cash Flow/Int. & ST Debt (X) 4.2 4.7 0.2 0.2 0.6 2009A 93.6% 1.0% 3.5% 2.0%
(X) 1.3 1.3 1.1 1.3 1.3 2010A 93.5% 0.9% 3.4% 2.2%
(X) 0.9 1.0 0.9 1.0 1.0 2011F 94.1% 0.9% 3.5% 1.6%
(NT$ ) (17) (8,529) (7,218) 7,009 15,268 2012F 93.9% 0.8% 3.5% 1.7%
(NT$ ) 12 31 1/ + + =
3.91 4.70 5.84 4.33 5.09
5.84 7.38 8.39 7.02 7.90 2008A 0.1 0.0 0.0 9.4
2009A 0.1 0.0 0.0 9.4
20.56 26.23 27.29 29.06 31.65
2010A 0.1 0.0 0.0 7.5
242.16 265.44 295.17 304.44 334.71
2011F 0.1 0.0 0.0 6.5
EBITDAshr 4.81 5.53 6.68 4.91 5.79
2012F 0.1 0.0 0.0 7.0
1.08 3.20 3.20 2.50 3.00
12 31 x x 1- = ROIC
2008A 1.9% 9.4 78.1% 14.2%
(X) 3.6 3.4 3.1 2.9 3.1 2009A 2.0% 9.4 79.8% 14.8%
52.2 66.4 60.6 60.6 60.6 2010A 2.2% 7.5 78.5% 13.1%
26.2 18.5 20.0 20.1 20.0 2011F 1.6% 6.5 80.0% 8.3%
63.9 67.9 58.5 58.8 58.7 2012F 1.7% 7.0 81.0% 9.8%
14.5 16.9 22.1 21.8 21.9
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3. 100 A 1907-1909 104 700
200051 886.2.2181.8888
886.2.8501.1691
2014 A 24D1
518008
852.2878.6888 8th - 11th floors, Asia Centre Building
852.2878.6800 173 South Sathorn Road, Bangkok 10120, Thailand
66.2658.8888
66.2658.8014
(OP) (Excessive Return)
( ) 40%
(N) ( )
40% 40%
(U) ( )
40%
(NR)
(R ) /
* =( / )–1
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