February 21, 2018

Allcargo Logistics Ltd (AGLL IN)

BUY
MTO going strong; Overall weak Share Price
12m Price Target
INR 178
INR 201 (+13%)
Previous Price Target INR 220

Cut earnings/TP; Operating leverage potential intact Company Description

Allcargo Logistics is a logistics service provider with
After 9MFY18 weak results, we lowered AGLL’s EBITDA for FY18/19/20 by
operations around the globe
17%/10%/4%. This has contributed to a 10% cut to our SOTP based TP to
INR201/sh; We also reduced the target EV/EBIDTA multiple (CFS from 8x
to 7x and P&E from 5x to 4x). Maintain BUY because we are confident of
a 23% increase in EPS for FY19 led by: a) Ramp up in Kolkata Container Statistics
Freight Station (CFS) due to increased capacity and rising enquires from 52w high/low (INR) 225/160
Logistics

shipping lines; b) traction in JNPT CFS volume after increased 3m avg turnover (USDm) 2.8
warehousing demand; and c) pick up in the wind power projects to boost Free float (%) 14.9
utilization of cranes lying idle this year. Issued shares (m) 246
Market capitalisation INR43.8B
USD676M
Plans bigger capex for emerging growth opportunity
Major shareholders:
AGLL plans to triple its warehousing space to 10m sq ft in the next 3-5 SHETTY SHASHI KIRAN JANARDHAN 64.8%
years and has budgeted INR7b vs INR1.5-2b earlier. AGLL is expected to Blackstone Corporate Private Equity 14.9%
Ruane, Cunniff & Goldfarb, Inc. 6.3%
have strong OCF of INR3-3.7b pa over FY18-20 and it should be able to
finance the capex from internal accruals. Increase in the capex is to
India

Price Performance
capture the opportunity it expects from contract logistics under the new 120
GST regime. Currently, it is developing a logistic park at Jhajjar, North 220 115
India and is targeting to develop its land in Hyderabad (South), Nagpur 210 110
200 105
(Central India) and Jaipur (West).
190 100
180 95
Near term weakness priced in, Maintain BUY 170 90
160 85
AGLL’s asset utilization weakened from subdued capex activity in India 150 80
and a change in policy for cargo delivery at the JNPT port in Mumbai. We 140 75
believe the worst is over for its Project & Engineering (P&E) and CFS 130 70
Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17
businesses, which are witnessing improved demand in 4Q as the economy Allcargo Logistics - (LHS, INR)
is recovering and GST implementation is more or less complete. Our new Allcargo Logistics / BSE SENSEX 30 Index - (RHS, %)

SOTP TP implies an EV/EBIDTA of 9x FY19E vs 10x earlier, which is 1 STD -1M -3M -12M
above its past five year average and 34% below its logistics sector peers. Absolute (%) (8) 6 6
Relative to index (%) (3) 4 (10)
Source: FactSet

FYE Mar (INR m) FY16A FY17A FY18E FY19E FY20E

Revenue 56,406 55,834 59,485 64,090 69,066
EBITDA 5,039 4,649 4,106 4,866 5,689
Core net profit 2,399 2,318 2,083 2,571 3,229
Core EPS (INR) 10 9 8 10 13
Core EPS growth (%) (0.0) (3.3) (10.2) 23.4 25.6
Net DPS (INR) 3 2 2 3 3
Core P/E (x) 18.2 18.9 21.0 17.0 13.6
P/BV (x) 2.5 2.4 2.3 2.1 1.9
Net dividend yield (%) 1.7 1.1 1.2 1.5 1.8
ROAE (%) 13.2 13.1 11.2 12.7 14.5
ROAA (%) 7.4 7.5 6.6 8.0 9.6
EV/EBITDA (x) 7.6 9.5 11.0 9.0 7.5
Net gearing (%) (incl perps) 1.8 13.3 5.6 net cash net cash
Consensus net profit - - 2,096 2,649 3,175
MKE vs. Consensus (%) - - (0.6) (2.9) 1.7

Vishal Periwal
vishalperiwal@maybank-ke.co.in
(91) 22 6623 2605

THIS REPORT HAS BEEN PREPARED BY KIM ENG SECURITIES INDIA PVT LTD
SEE PAGE 11 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
Allcargo Logistics Ltd

Fig 1: Changes in forecasts

Revised (INR m) Earlier (INR m) Change
Financ ials FY 18E FY 19E FY 20E FY 18E FY 19E FY 20E FY 18E FY 19E FY 20E
Revenue INR m 59,485 64,090 69,066 58,423 61,794 65,865 2% 4% 5%
- MTO 52,012 55,096 58,363 49,043 51,843 54,925 6% 6% 6%
- CFS 3,844 4,217 4,649 4,410 4,500 4,750 -13% -6% -2%
- P&E 2,932 3,812 4,574 4,273 4,486 4,711 -31% -15% -3%
- Others 697 965 1,479 697 965 1,479 0% 0% 0%

EBITDA INR m 4,106 4,866 5,689 4,963 5,416 5,955 -17% -10% -4%
EBITDA margin % 6.9% 7.6% 8.2% 8.5% 8.8% 9.0% -160bps -120bps -80bps

Net Profit INR m 2,083 2,571 3,229 2,575 2,944 3,494 -19% -13% -8%
Source: Maybank Kim Eng

AGLL’s 3QFY18 earnings were impacted by one-offs (provision of doubtful debt of

INR50m) and weakness in CFS (Container Freight Station) and P&E (Project and
Engineering) segment. However, MTO (Multimodal Transport Operation) business
aided by global cargo volume continues to be strong.

We have changed our estimates for FY18 to FY20 to factor in the weak results
caused by operational issues and one-offs in 9MFY18. AGLL had conservatively
made provisions for INR250m of doubtful debts in its CFS and P&E segment. AGLL
mentioned during the conference call that it expects to reverse part of the
provisions in the coming quarter as one of its clients in the wind power sector
repaid INR70m in 4QFY18.

Segmental changes we factored into our revised estimates are:

MTO: We have increased shipping charges for MTO business leading to a revenue
increase of 6% p.a. over FY18 to FY20. Shipping charges are pass-through and
there is no impact on EBITDA.

CFS: For the CFS segment, we have lowered our volume growth and yield
expectations for FY18-20, resulting in a revenue decline of 3-13% p.a. over FY18-
20. Overall, we expect revenue growth in CFS as Kolkata CFS utilisation improves
in FY19 (aided by increased new business inquiries). We also look for a new
programme to capture volume post policy changes by JNPT Port in Mumbai to
kick in from FY19.

P&E: For the P&E segment, we have lowered revenue assumptions to factor in
weak capex in the wind sector in 9MFY18. We expect capex to pick up in 4QFY18
as the central government has increased auctioning of wind power capacity and
targets to auction 10GW pa in FY19/20, up from 4GW auctioned through 9MFY18.
This will increase utilisation of AGLL’s cranes in FY19 and swing it to an EBITDA
of INR0.5b from INR0.3b for FY18E.

February 21, 2018 2

Allcargo Logistics Ltd

Fig 2: 3QFY18 results summary (INRm)

3QFY17 3QFY18 YoY (%) 2QFY18 QoQ (%) 9MFY18 9MFY17 YoY (%)
Net sales 14,114 14,799 5% 15,472 -4% 45,106 42,206 7%

Operating Expenses 9,725 10,433 7% 11,130 -6% 32,141 28,584 12%

Employee expense 2,396 2,389 0% 2,276 5% 6,889 7,166 -4%
Other expenses 1,000 1,044 4% 1,019 2% 3,066 2,862 7%
EBITDA 993 933 -6% 1,047 -11% 3,010 3,594 -16%

Depreciation 407 397 -2% 398 0% 1,194 1,276 -6%

Other income 183 49 -73% 51 -3% 259 304 -15%
Finance expense 78 71 -9% 71 0% 225 229 -2%

PBT 691 515 -26% 629 -18% 1,851 2,393 -23%

Tax 211 199 -6% 6 3062% 282 645 -56%

Reported PAT 480 315 -34% 623 -49% 1,569 1,748 -10%

M argins %
EBITDA 7.0% 6.3% -70bps 6.8% -50bps 6.7% 8.5% -180bps
PBT 4.9% 3.5% -140bps 4.1% -60bps 4.1% 5.7% -160bps
APAT 3.5% 2.0% -150bps 4.2% -220bps 3.5% 4.1% -60bps

Segmental details
REVENUE INR m
M TO 12,059 13,271 10% 12,895 8% 40,045 35,945 11%
CFS 1,113 945 -15% 1,088 -8% 3,031 3,320 -9%
P&E 1,113 713 -36% 987 -29% 2,400 3,425 -30%

EBIT INR m
M TO 424 546 29% 532 6% 1,643 1,488 10%
CFS 317 278 -12% 297 2% 878 1,020 -14%
P&E 45 (109) NA (1) NA (150) 335 NA

EBIT Margins %
M TO 3.5% 4.1% 60bps 4.1% 0bps 4.1% 4.1% 0bps
CFS 28.5% 29.5% 100bps 27.2% 320bps 29.0% 30.7% -170bps
P&E 4.0% -15.3% NA -0.1% NA -6.2% 9.8% NA
Source: Company

February 21, 2018 3

 Allcargo Logistics Ltd

Fig 3: MTO volume continued to show strong growth Fig 4: MTO yield also inched up
150,000 18 120,000 4
16 2
140,000 100,000 0
14
12 80,000 -2
130,000 -4
10
60,000 -6
8
120,000 -8
6 40,000 -10
112,593

144,646
113,410

117,574

116,168

120,971

127,463

134,715

126,833

138,479

142,945

104,024
108,890

105,757
94,381

97,483

94,876

89,517

91,560

93,118

97,093

91,749
110,000 4 -12
20,000
2 -14
100,000 0 0 -16
1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

2QFY18

3QFY18

1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

2QFY18

3QFY18
MTO realization (INR/TEU) LHS
MTO Volume (TEU) LHS MTO Volume increase (yoy, %) RHS MTO realization increase (yoy, %) RHS
Source: Company Source: Company

Fig 5: CFS volume declined in 3Q; AGLL expects recovery Fig 6: CFS yield weakened slightly too…
80,000 20 18,000 10

15 17,000 5
75,000
0
10 16,000
70,000 -5
5 15,000
65,362

65,000 -10
0 14,000
-15
15,360

14,683
14,413

17,336

15,996

14,585

16,053

12,797

13,824

15,269

13,163
75,118

71,764
72,000

69,260

66,233

66,729

69,260

75,787

77,021

78,732

60,000 -5 13,000 -20

55,000 -10 12,000 -25
1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

2QFY18

3QFY18
1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

2QFY18

3QFY18

CFS realization (INR/TEU) LHS

CFS Volume (TEU) LHS CFS Volume increase (yoy, %) RHS CFS realization increase (yoy, %) RHS
Source: Company Source: Company

Fig 7: Restructuring continued in the P&E business… Fig 8: EBIT margin by segment…
1,600 250
MTO CFS P&E
1,400 200
35.7
33.4

1,200 150
32.1

31.5

30.4

40
29.6

29.5
28.5
28.3

27.9

27.2

1,000 100
30
800 50
14.7
14.3

13.6

11.2

20
10.0

600 0
6.7

5.3
4.0

400 (50) 10
4.8

3.9

4.9

5.2

4.8

4.1

3.5

4.3

4.1

4.1

4.1
1,411

1,388

1,399

1,277

1,322

1,113

1,145
990

987

700

713

200 (100)
0
0 (150)
-0.1

-5.7

-15.3

-10
1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

2QFY18

3QFY18

-20
1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

2QFY18

3QFY18

P&E Revenue (INR m) LHS P&E EBIT (INR m) RHS

Source: Company Source: Company

February 21, 2018 4

Allcargo Logistics Ltd

Valuation: SOTP-based TP of INR201

We lowered our TP by 10% to INR201 to factor in cuts in earnings as well as a
slightly lower EV/EBITDA multiple for the CFS business (to 7x from 8x earlier) and
for the P&E business (to 4x from 5x). Overall, our revised TP valuation implied
EV/EBITDA is 9x FY19E equal to 1 STD above its 5-year average and 34% below
13.7x for its logistics sector peers (Fig. 10).

One catalyst is a better-than-expected recovery in the CFS and P&E businesses

due to a pick-up in the economy next year. Risks will be from slowdown in
import-export trade as well as any further delays in stabilisation of the GST
regime.

Fig 9: SOTP-based TP of INR201

Particulars Exit EBITDA - FY19 Valuation (Revised) Valuation (Earlier) RoCE (%)
Multiple (x) INR m INR m INR /sh INR m INR m FY17
M TO 12 2,951 35,117 143 2,951 143 29
CFS 7 1,913 12,437 51 2,029 54 29
P&E (incl. unalloc) 4 455 1,593 6 755 15 6

Less Net Debt FY17 1 2,410 10 2410 10

Investments in JV and Associates 2,556 10 2556 10
Total 5,319 49,293 201 5,881 212
Less inter company transfer 454
Reported EBITDA 4,866
TP implied multiple
- FY19 PER 16
- FY19 EV /EBITDA 9

Source: Company, Maybank Kim Eng

Fig 10: Peers operating in CFS, P&E and the global MTO business
Country CMP TP Rating Mkt Cap EV EPS growth yoy, % PER (x) P/BV (x) RoE (%) EV / EBITDA (x)
Currency INR /sh INR /sh (b) (b) FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E
Logistics - CFS
Container Corp India-INR 1,317 NA Not Rated 321 244 35% 16% 32.0 32.0 3.7 3.4 8.8 11.0 23.4 18.0
Gateway Distripark India-INR 196 NA Not Rated 21 28 -8% 109% 22.2 22.2 2.0 1.9 8.8 18.6 17.5 16.0
Navkar Corp India-INR 172 NA Not Rated 26 26 7% 15% 23.2 21.0 2.1 2.0 9.5 11.0 15.2 14.0
Transport Corp India-INR 283 NA Not Rated 22 21 14% 24% 21.5 17.4 2.9 2.7 12.1 12.9 10.6 8.8
VRL Logistics India-INR 419 NA Not Rated 38 30 41% 29% 30.7 23.9 6.9 6.1 16.7 21.1 12.8 11.7
Average 18% 38% 25.9 23.3 3.5 3.2 11.2 14.9 15.9 13.7
P&E
Sanghvi M overs India-INR 170 NA Not Rated 7 15 15% 25% 8.1 7.0 0.9 0.8 11.5 12.0 4.3 4.3
Action Construction India-INR 184 NA Not Rated 22 8 129% 53% 52.5 34.4 5.3 4.5 10.6 14.2 9.5 7.4
Average 72% 39% 30.3 20.7 3.1 2.7 11.0 13.1 6.9 5.8
Logistics - MTO
Expeditors International USA- USD 64 NA Not Rated 11 10 2.1% 16.6% 26.7 22.9 6.0 5.8 23.4 25.7 13.3 12.4
Panalpina Swiss - CHF 153 NA Not Rated 4 3 -16.8% 38.5% 49.7 35.9 6.1 5.8 11.9 16.6 20.5 16.2
Kuehne-Nagel Swiss - CHF 164 NA Not Rated 20 21 5.1% 12.1% 26.4 23.6 7.4 6.3 30.4 28.9 18.2 16.4
Average -3% 22% 34.3 27.5 6.5 6.0 21.9 23.7 17.3 15.0

Source: Bloomberg
The above companies in MTO segment are listed outside India. All the companies mentioned above are conglomerate with business in LCL and FCL.
For MTO FY18 is CY18 and FY19 is CY19.

February 21, 2018 5

 Allcargo Logistics Ltd

Fig 11: AGLL stock price performance (INR/sh) Fig 12: EV/EBITDA valuation : Trades at +1 Std deviation
250 Moving in a range 14 EV EBITDA Avg EV / EBITDA - 1 Stdev + 1 Stdev
12
200
10

150 8

6
100
4
50 2

0
0

Jul-12

Jul-13

Jul-14

Jul-15

Jul-16

Jul-17
Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18
Apr-12

Apr-13

Apr-14

Apr-15

Apr-16

Apr-17
Oct-12

Oct-13

Oct-14

Oct-15

Oct-16

Oct-17
Apr-12

Apr-13

Apr-14

Apr-15

Oct-15

Apr-16

Apr-17
Oct-12

Oct-13

Oct-14

Oct-16

Oct-17
Source: Bloomberg Source: Maybank Kim Eng, Bloomberg

February 21, 2018 6

Allcargo Logistics Ltd

Value Proposition Price Drivers

 One of the largest consolidators of LCL cargo in the world. Historical share price
Has 300+ offices in 164 countries to serve a whole range of 1 2 3 4
clients. 240 600
220 550
 AGLL is only player with presence in major ports handling 200 500
80%+ of India’s container cargo (i.e. JNPT, Mundra, 180 450
160 400
Chennai and Kolkata), implying good business opportunity 140 350
from trade pick-up. 120 300
100 250
 In Project and Engineering, heavy-equipment leasing 80 200
business is undergoing restructuring as AGLL plans to sell 60 150
40 100
low yielding machines. 20 50
 FY18E ROE of 11% (vs cost of equity of 11%) is expected to Feb-13 Feb-14 Feb-15 Feb-16 Feb-17

improve with better MTO/CFS and AGLL plans to sell low Allcargo Logistics - (LHS, INR)

ROCE P&E machines. Allcargo Logistics / MSCI AC Asia ex JP - (RHS, %)

Source: Bloomberg, Maybank Kim Eng

Volume trajectory
MTO Volume growth yoy, % CFS Volume growth yoy, %
1. Weak volume of exports & imports at Indian ports.
30%
26% 2. Government announcing implementation of GST from
25%
FY18.
20% 18% 17% 3. Announced buyback of up to 6.4m shares representing
15% 12% 2.54% of outstanding shares at INR195 apiece in Nov
10%
10% 8% 8%
7% 7% 2016.
5% 2% 2%
4. Stake sale by Blackstone (14.8% stake) in Apr 2017,
0% absorbed by leading FII and DII.
-5% -3%
-4%
-6%
-10%
FY14 FY15 FY16 FY17 FY18e FY19e FY20e

Source: Company, Maybank Kim Eng

Financial Metrics Swing Factors

 MTO/LCL volumes to grow 7-10% pa. CFS volume to grow
2% in FY18/19E from JNPT expansion and Kolkata CFS. Upside
 Revenue growth of 8% in FY19/20E from MTO and CFS.
EBITDA growth of 19%/17% from operating leverage.  CFS operating at 52% utilization, providing upside from
 LCL/MTO and CFS synergies to sustain EBITDA margins for trade uptick.
CFS.  Faster-than-expected sale of P&E assets.
 On capex of INR1.5b/INR1.8b for FY18/19, we expect FCF  Opportunity from contract logistic business, due to
yields of 4%. implementation from GST.

Capex and ROE trend

FCF INR b RoE %
Downside
4000 16
14
 Threat from technology aggregators becoming real.
14
3000
13 13 13
13
 Slowdown in global trade. America, Europe and Far East
12
11 contribute 24% / 23% / 18% to its consolidated revenue.
2000
10 LCL business contributes 59% to AGLL EBIT.
9
1000 8  Slowdown in export / import volumes in India and price
3689 2690 2476 1922 2025 2003 6 competition could affect its CFS volume and margins. CFS
0
-1513
4 business contributes 34% to consolidated EBIT.
-1000
2
 Delay in selling low yielding assets in P&E segment.
-2000 0
FY14 FY15 FY16 FY17 FY18e FY19e FY20e

Source: Company, Maybank Kim Eng

vishalperiwal@maybank-ke.co.in

February 21, 2018 7

Allcargo Logistics Ltd

FYE 31 Mar FY16A FY17A FY18E FY19E FY20E

Key Metrics
P/E (reported) (x) 16.8 18.4 21.0 17.0 13.6
Core P/E (x) 18.2 18.9 21.0 17.0 13.6
P/BV (x) 2.5 2.4 2.3 2.1 1.9
P/NTA (x) 9.4 18.9 21.0 17.0 13.6
Net dividend yield (%) 1.7 1.1 1.2 1.5 1.8
FCF yield (%) 6.1 5.7 4.4 4.6 4.6
EV/EBITDA (x) 7.6 9.5 11.0 9.0 7.5
EV/EBIT (x) 12.6 14.8 17.6 13.1 10.4

INCOME STATEMENT (INR m)

Revenue 56,405.5 55,833.6 59,485.0 64,090.1 69,065.9
Gross profit 3,033.0 2,987.6 2,562.7 3,351.3 4,069.7
EBITDA 5,039.3 4,649.3 4,105.7 4,865.6 5,689.0
Depreciation (2,006.3) (1,661.7) (1,543.0) (1,514.3) (1,619.3)
Amortisation 0.0 0.0 0.0 0.0 0.0
EBIT 3,033.0 2,987.6 2,562.7 3,351.3 4,069.7
Net interest income /(exp) (407.8) (324.2) (330.7) (250.7) (184.4)
Associates & JV 0.0 0.0 0.0 0.0 0.0
Exceptionals 0.0 0.0 0.0 0.0 0.0
Other pretax income 279.8 453.2 304.0 357.0 449.6
Pretax profit 2,905.0 3,116.6 2,536.0 3,457.6 4,334.9
Income tax (790.2) (788.6) (431.1) (864.4) (1,083.7)
Minorities (7.5) (21.9) (21.9) (21.9) (21.9)
Perpetual securities 0.0 0.0 0.0 0.0 0.0
Discontinued operations 0.0 0.0 0.0 0.0 0.0
Reported net profit 2,398.5 2,318.4 2,083.0 2,571.3 3,229.3
Core net profit 2,398.5 2,318.4 2,083.0 2,571.3 3,229.3
Preferred Dividends 0.0 0.0 0.0 0.0 0.0

BALANCE SHEET (INR m)

Cash & Short Term Investments 3,037.9 2,724.2 3,032.7 3,430.2 4,267.9
Accounts receivable 6,766.7 7,522.1 7,611.6 8,200.9 8,988.0
Inventory 112.0 101.4 108.0 116.4 125.4
Property, Plant & Equip (net) 12,936.6 12,340.2 11,547.2 11,532.9 11,663.6
Intangible assets 3,537.3 3,808.7 3,808.7 3,808.7 3,808.7
Investment in Associates & JVs 0.0 0.0 0.0 0.0 0.0
Other assets 3,580.9 5,304.3 5,441.7 5,586.0 5,737.4
Total assets 29,971.4 31,800.9 31,549.9 32,675.0 34,591.1
ST interest bearing debt 0.0 0.0 0.0 0.0 0.0
Accounts payable 9,591.2 9,090.3 8,344.8 8,599.7 8,681.8
LT interest bearing debt 3,356.9 5,133.9 4,133.9 3,133.9 2,633.9
Other liabilities (556.0) (553.0) (576.0) (565.0) (552.0)
Total Liabilities 12,391.9 13,671.4 11,902.7 11,168.2 10,764.1
Shareholders Equity 17,363.9 17,922.2 19,380.3 21,180.2 23,440.7
Minority Interest 215.6 207.3 266.9 326.6 386.3
Total shareholder equity 17,579.5 18,129.5 19,647.2 21,506.8 23,827.0
Perpetual securities 0.0 0.0 0.0 0.0 0.0
Total liabilities and equity 29,971.4 31,800.9 31,549.9 32,675.0 34,591.1

CASH FLOW (INR m)

Pretax profit 2,905.0 3,116.6 2,536.0 3,457.6 4,334.9
Depreciation & amortisation 2,006.3 1,661.7 1,543.0 1,514.3 1,619.3
Adj net interest (income)/exp 409.1 270.4 26.7 (106.3) (265.3)
Change in working capital 86.4 (478.0) (1,002.2) (476.4) (851.8)
Cash taxes paid (894.1) (707.2) (431.1) (864.4) (1,083.7)
Other operating cash flow 0.0 0.0 0.0 0.0 0.0
Cash flow from operations 4,337.3 3,863.5 2,672.3 3,524.8 3,753.4
Capex (1,647.8) (1,387.4) (750.0) (1,500.0) (1,750.0)
Free cash flow 2,689.5 2,476.1 1,922.3 2,024.8 2,003.4
Dividends paid (639.4) 0.0 (624.9) (771.4) (968.8)
Equity raised / (purchased) 0.0 0.0 0.0 0.0 0.0
Perpetual securities 0.0 0.0 0.0 0.0 0.0
Change in Debt (902.1) 612.5 (1,000.0) (1,000.0) (500.0)
Perpetual securities distribution 0.0 0.0 0.0 0.0 0.0
Other invest/financing cash flow (963.9) (1,799.1) 11.1 144.1 303.1
Effect of exch rate changes 0.0 0.0 0.0 0.0 0.0
Net cash flow 184.1 1,289.5 308.6 397.5 837.7

February 21, 2018 8

Allcargo Logistics Ltd

FYE 31 Mar FY16A FY17A FY18E FY19E FY20E

Key Ratios
Growth ratios (%)
Revenue growth 0.2 (1.0) 6.5 7.7 7.8
EBITDA growth 6.0 (7.7) (11.7) 18.5 16.9
EBIT growth (4.6) (1.5) (14.2) 30.8 21.4
Pretax growth (8.4) 7.3 (18.6) 36.3 25.4
Reported net profit growth (0.0) (3.3) (10.2) 23.4 25.6
Core net profit growth (0.0) (3.3) (10.2) 23.4 25.6

Profitability ratios (%)

EBITDA margin 8.9 8.3 6.9 7.6 8.2
EBIT margin 5.4 5.4 4.3 5.2 5.9
Pretax profit margin 5.2 5.6 4.3 5.4 6.3
Payout ratio 30.7 21.2 25.0 25.0 25.0

DuPont analysis
Net profit margin (%) 4.3 4.2 3.5 4.0 4.7
Revenue/Assets (x) 1.9 1.8 1.9 2.0 2.0
Assets/Equity (x) 1.7 1.8 1.6 1.5 1.5
ROAE (%) 13.2 13.1 11.2 12.7 14.5
ROAA (%) 7.4 7.5 6.6 8.0 9.6

Liquidity & Efficiency

Cash conversion cycle (8.6) (16.8) (8.7) (5.1) (2.4)
Days receivable outstanding 42.3 46.1 45.8 44.4 44.8
Days inventory outstanding 0.8 0.7 0.7 0.7 0.7
Days payables outstanding 51.6 63.6 55.1 50.2 47.9
Dividend cover (x) 3.3 4.7 4.0 4.0 4.0
Current ratio (x) 1.4 1.4 1.6 1.7 1.9

Leverage & Expense Analysis

Asset/Liability (x) 2.4 2.3 2.7 2.9 3.2
Net gearing (%) (incl perps) 1.8 13.3 5.6 net cash net cash
Net gearing (%) (excl. perps) 1.8 13.3 5.6 net cash net cash
Net interest cover (x) 7.4 9.2 7.7 13.4 22.1
Debt/EBITDA (x) 0.7 1.1 1.0 0.6 0.5
Capex/revenue (%) 2.9 2.5 1.3 2.3 2.5
Net debt/ (net cash) 319.0 2,409.7 1,101.2 (296.3) (1,634.0)
Source: Company; Maybank

February 21, 2018 9

Allcargo Logistics Ltd

Research Offices
REGIONAL MALAYSIA HONG KONG / CHINA THAILAND
Sadiq CURRIMBHOY WONG Chew Hann, CA Head of Research Christopher WONG Maria LAPIZ Head of Institutional Research
Regional Head, Research & Economics (603) 2297 8686 wchewh@maybank-ib.com (852) 2268 0652 Dir (66) 2257 0250 | (66) 2658 6300 ext 1399
(65) 6231 5836 • Strategy christopherwong@kimeng.com.hk Maria.L@maybank-ke.co.th
sadiq@maybank-ke.com.sg • HK & China Properties • Strategy • Consumer • Materials • Ind. Estates
Desmond CH’NG, ACA • Oil & Gas • Telcos
WONG Chew Hann, CA (603) 2297 8680 Jacqueline KO, CFA
Sittichai DUANGRATTANACHAYA
desmond.chng@maybank-ib.com (852) 2268 0633 jacquelineko@kimeng.com.hk
Regional Head of Institutional Research (66) 2658 6300 ext 1393
• Banking & Finance • Consumer Staples & Durables
(603) 2297 8686 Sittichai.D@maybank-ke.co.th
wchewh@maybank-ib.com Ka Leong LO, CFA • Services Sector • Transport • Property • Telcos
LIAW Thong Jung
(603) 2297 8688 tjliaw@maybank-ib.com (852) 2268 0630 kllo@kimeng.com.hk Tanawat RUENBANTERNG
ONG Seng Yeow • Consumer Discretionary & Auto
• Oil & Gas Services- Regional (66) 2658 6300 ext 1394
Regional Head of Retail Research Tanawat.R@maybank-ke.co.th
(65) 6231 5839 Mitchell KIM • Banks & Diversified Financials
ONG Chee Ting, CA
ongsengyeow@maybank-ke.com.sg (852) 2268 0634 mitchellkim@kimeng.com.hk
(603) 2297 8678 ct.ong@maybank-ib.com Ornmongkol TANTITANATORN
• Internet & Telcos
• Plantations - Regional (66) 2658 6300 ext 1395
TAN Sin Mui
Ning MA, CFA ornmongkol.t@maybank-ke.co.th
Director of Research Mohshin AZIZ • Oil & Gas
(852) 2268 0672 ningma@kimeng.com.hk
(65) 6231 5849 (603) 2297 8692 mohshin.aziz@maybank-ib.com • Insurance Sukit UDOMSIRIKUL Head of Retail Research
sinmui@kimeng.com.hk • Aviation - Regional • Petrochem
(66) 2658 5000 ext 5090
Ricky NG, CFA Sukit.u@maybank-ke.co.th
ECONOMICS YIN Shao Yang, CPA (852) 2268 0689 rickyng@kimeng.com.hk
(603) 2297 8916 samuel.y@maybank-ib.com • Regional Renewables Ekachai TARAPORNTIP Deputy Head
Suhaimi ILIAS • Gaming – Regional • Media • HK & China Properties 66) 2658 5000 ext 1530
Chief Economist Ekachai.t@maybank-ke.co.th
Malaysia | Philippines | China TAN Chi Wei, CFA Sonija LI, CFA, FRM Surachai PRAMUALCHAROENKIT
(603) 2297 8682 (603) 2297 8690 chiwei.t@maybank-ib.com (852) 2268 0641 sonijali@kimeng.com.hk (66) 2658 5000 ext 1470
suhaimi_ilias@maybank-ib.com • Power • Telcos • Gaming Surachai.p@maybank-ke.co.th
• Auto • Conmat • Contractor • Steel
CHUA Hak Bin WONG Wei Sum, CFA Stefan CHANG, CFA
Regional Thematic Macroeconomist (603) 2297 8679 weisum@maybank-ib.com (852) 2268 0675 stefanchang@kimeng.com.hk Suttatip PEERASUB
(65) 6231 5830 • Technology – Regional (66) 2658 5000 ext 1430
• Property
chuahb@maybank-ke.com.sg suttatip.p@maybank-ke.co.th
LEE Yen Ling Bonny WENG • Media • Commerce
LEE Ju Ye (603) 2297 8691 lee.yl@maybank-ib.com (852) 2268 0644 bonnyweng@kimeng.com.hk Sutthichai KUMWORACHAI
Singapore • Building Materials • Glove • Ports • Shipping • Technology – Regional (66) 2658 5000 ext 1400
(65) 6231 5844 sutthichai.k@maybank-ke.co.th
leejuye@maybank-ke.com.sg Ivan YAP Tony REN, CFA • Energy • Petrochem
(603) 2297 8612 ivan.yap@maybank-ib.com (852) 2268 0640 tonyren@kimeng.com.hk
• Healthcare & Pharmaceutical Termporn TANTIVIVAT
Dr Zamros DZULKAFLI • Automotive • Semiconductor • Technology (66) 2658 5000 ext 1520
(603) 2082 6818 termporn.t@maybank-ke.co.th
zamros.d@maybank-ib.com Kevin WONG INDIA
• Property
(603) 2082 6824 kevin.wong@maybank-ib.com Jigar SHAH Head of Research
Ramesh LANKANATHAN • REITs • Consumer Discretionary Jaroonpan WATTANAWONG
(91) 22 6623 2632 jigar@maybank-ke.co.in (66) 2658 5000 ext 1404
(603) 2297 8685
ramesh@maybank-ib.com LIEW Wei Han • Strategy • Oil & Gas • Automobile • Cement jaroonpan.w@maybank-ke.co.th
(603) 2297 8676 weihan.l@maybank-ib.com • Transportation • Small cap
Vishal MODI
FX • Consumer Staples Sorrabhol VIRAMETEEKUL
(91) 22 6623 2607 vishal@maybank-ke.co.in Head of Digital Research
Saktiandi SUPAAT Adrian WONG • Banking & Financials (66) 2658 5000 ext 1550
Head, FX Research (603) 2297 8675 adrian.wkj@maybank-ib.com sorrabhol.V@maybank-ke.co.th
(65) 6320 1379 • Constructions • Healthcare Neerav DALAL • Food, Transportation
saktiandi@maybank.com.sg (91) 22 6623 2606 neerav@maybank-ke.co.in Wijit ARAYAPISIT
Jade TAM • Software Technology • Telcos (66) 2658 5000 ext 1450
Christopher WONG
(65) 6320 1347 (603) 2297 8687 jade.tam@maybank-ib.com wijit.a@maybank-ke.co.th
• Media • Building Materials Vishal PERIWAL • Strategist
wongkl@maybank.com.sg
(91) 22 6623 2605 vishalperiwa@maybank-
Leslie TANG Mohd Hafiz Hassan ke.co.in VIETNAM
(603) 2082 6819 mohdhafiz.ha@maybank-ib.com • Infrastructure
(65) 6320 1378
• Small & Mid Caps LE Hong Lien, ACCA
leslietang@maybank.com.sg
INDONESIA Head of Institutional Research
TEE Sze Chiah Head of Retail Research (84 28) 44 555 888 x 8181
Fiona LIM
(603) 2082 6858 szechiah.t@maybank-ib.com Isnaputra ISKANDAR Head of Research lien.le@maybank-kimeng.com.vn
(65) 6320 1374
(62) 21 8066 8680 • Strategy • Consumer • Diversified
fionalim@maybank.com.sg
Nik Ihsan Raja Abdullah, MSTA, CFTe isnaputra.iskandar@maybank-ke.co.id
(603) 2297 8694 • Strategy • Metals & Mining • Cement THAI Quang Trung, CFA,
STRATEGY nikmohdihsan.ra@maybank-ib.com Deputy Head, Institutional Research
Rahmi MARINA (84 28) 44 555 888 x 8180
Sadiq CURRIMBHOY (62) 21 8066 8689
Global Strategist SINGAPORE rahmi.marina@maybank-ke.co.id
trung.thai@maybank-kimeng.com.vn
• Real Estate • Construction • Materials
(65) 6231 5836 Neel SINHA Head of Research • Banking & Finance
sadiq@maybank-ke.com.sg (65) 6231 5838 neelsinha@maybank-ke.com.sg LE Nguyen Nhat Chuyen
Aurellia SETIABUDI
• Strategy (62) 21 8066 8691 (84 28) 44 555 888 x 8082
Willie CHAN • SMID Caps – Regional aurellia.setiabudi@maybank-ke.co.id chuyen.le@maybank-kimeng.com.vn
Hong Kong / Regional • Oil & Gas
• Property
(852) 2268 0631 CHUA Su Tye
williechan@kimeng.com.hk (65) 6231 5842 chuasutye@maybank-ke.com.sg Janni ASMAN NGUYEN Thi Ngan Tuyen,
• REITs (62) 21 8066 8687 Head of Retail Research
FIXED INCOME janni.asman@maybank-ke.co.id (84 28) 44 555 888 x 8081
Derrick HENG, CFA • Cigarette • Healthcare • Retail tuyen.nguyen@maybank-kimeng.com.vn
Winson Phoon, ACA (65) 6231 5843 derrickheng@maybank-ke.com.sg
• Food & Beverage • Oil&Gas • Banking
(65) 6231 5831 • Property • REITs (Office) PHILIPPINES
winsonphoon@maybank-ke.com.sg TRUONG Quang Binh,
Luis HILADO Minda OLONAN Head of Research
(65) 6231 5848 luishilado@maybank-ke.com.sg Deputy Head, Retail Research
Se Tho Mun Yi (63) 2 849 8840
• Telcos (84 28) 44 555 888 x 8087
(603) 2074 7606 minda_olonan@maybank-atrke.com binh.truong@maybank-kimeng.com.vn
munyi.st@maybank-ib.com • Strategy
John CHEONG, CFA • Rubber Plantation • Tyres & Tubes • Oil & Gas
(65) 6231 5845 johncheong@maybank-ke.com.sg Katherine TAN
• Small & Mid Caps • Healthcare • Transport (63) 2 849 8843 TRINH Thi Ngoc Diep
kat_tan@maybank-atrke.com (84 28) 44 555 888 x 8208
NG Li Hiang • Banks • Construction diep.trinh@maybank-kimeng.com.vn
(65) 6231 5840 nglihiang@maybank-ke.com.sg • Technology • Utilities • Construction
• Banks Luis HILADO
(65) 6231 5848 luishilado@maybank-ke.com.sg NGUYEN Thi Sony Tra Mi
LAI Gene Lih • Telcos (84 28) 44 555 888 x 8084
(65) 6231 5832 laigenelih@maybank-ke.com.sg mi.nguyen@maybank-kimeng.com.vn
• Technology • Port Operation • Pharmaceutical
• Food & Beverage

NGUYEN Thanh Lam

(84 28) 44 555 888 x 8086
thanhlam.nguyen@maybank-kimeng.com.vn
• Technical Analysis

February 21, 2018 10

Allcargo Logistics Ltd

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES

DISCLAIMERS
This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as
an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate
and that each security’s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental
ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and
volume-related information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returns may be less than
the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment
advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read
this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment
strategies discussed or recommended in this report.
The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank
Investment Bank Berhad, its subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of
this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees
(collectively, “Representatives”) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this
report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice.
This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”,
“intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might”
occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us
and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking
statements. Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or
revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence
of unanticipated events.
MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law,
from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit
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investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. One or more directors,
officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report to the extent permitted by law.
This report is prepared for the use of MKE’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in
whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for
the actions of third parties in this respect.
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 law or regulation. This report is for distribution only
under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain
categories of investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on
geographical location of the person or entity receiving this report.
Malaysia
Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental
ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia
Securities Berhad in the equity analysis.
Singapore
This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank
KERPL”) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact
Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited
investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally
liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.
Thailand
Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of Maybank
Kim Eng Securities (Thailand) Public Company Limited. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) accepts no liability
whatsoever for the actions of third parties in this respect.
Due to different characteristics, objectives and strategies of institutional and retail investors, the research reports of MBKET Institutional and Retail Research
Department may differ in either recommendation or target price, or both. MBKET Retail Research is intended for retail investors (http://kelive.maybank-
ke.co.th) while Maybank Kim Eng Institutional Research is intended only for institutional investors based outside Thailand only.
The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the
Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand
and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the
perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the
Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. MBKET does not confirm nor certify the
accuracy of such survey result.
The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by Thaipat Institute, is made
in order to comply with the policy and sustainable development plan for the listed companies of the Office of the Securities and Exchange Commission.
Thaipat Institute made this assessment based on the information received from the listed company, as stipulated in the form for the assessment of Anti-
corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 56-2), or other relevant documents or reports of such listed
company. The assessment result is therefore made from the perspective of Thaipat Institute that is a third party. It is not an assessment of operation and is not
based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after
that date or when there is any change to the relevant information. Nevertheless, MBKET does not confirm, verify, or certify the accuracy and completeness of
the assessment result.
US
This third-party research report is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities
Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US (registered under
Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne
by Maybank KESUSA. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it
available to you. You should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you
under relevant legislation and regulations. All U.S. persons receiving and/or accessing this report and wishing to effect transactions in any security mentioned
within must do so with: Maybank Kim Eng Securities USA Inc. 777 Third Avenue 21st Floor New York, New York 1- (212) 688-8886 and not with, the issuer of
this report.
February 21, 2018 11
Allcargo Logistics Ltd

UK
This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regulated, by the Financial Conduct
Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial
Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any
responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as
constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.
DISCLOSURES

Legal Entities Disclosures

Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938- H) which is a Participating Organization of Bursa
Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This report is distributed in
Singapore by Maybank KERPL (Co. Reg No 198700034E) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Maybank Kim Eng Securities
(“PTMKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the Financial Services Authority (Indonesia).
Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and
Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities
and Exchange Commission. Vietnam: Maybank Kim Eng Securities Limited (License Number: 117/GP-UBCK) is licensed under the State Securities Commission of
Vietnam. Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited
(“KESI”) is a participant of the National Stock Exchange of India Limited and the Bombay Stock Exchange and is regulated by Securities and Exchange Board of
India (“SEBI”) (Reg. No. INZ000010538). KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) and as Research Analyst (Reg
No: INH000000057) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK: Maybank KESL (Reg No 2377538)
is authorized and regulated by the Financial Conduct Authority.

Disclosure of Interest
Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further
act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment
banking services, advisory and other services for or relating to those companies.
Singapore: As of 21 February 2018, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report.
Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the
research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected
parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.
Hong Kong: As of 21 February 2018, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.
India: As of 21 February 2018, and at the end of the month immediately preceding the date of publication of the research report, KESI, authoring analyst or
their associate / relative does not hold any financial interest or any actual or beneficial ownership in any shares or having any conflict of interest in the
subject companies except as otherwise disclosed in the research report.

In the past twelve months KESI and authoring analyst or their associate did not receive any compensation or other benefits from the subject companies or
third party in connection with the research report on any account what so ever except as otherwise disclosed in the research report.
MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market
in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or
investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the
companies covered in this report.

OTHERS
Analyst Certification of Independence
The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part
of the research analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.

Reminder
Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are
capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial
and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the
credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and
consult with its own professional advisers as to the risks involved in making such a purchase.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

February 21, 2018 12

Allcargo Logistics Ltd

Historical recommendations and target price: Allcargo Logistics Ltd (AGLL IN)

10 Jul 20 Feb
Buy : INR220.1 Buy : INR201.0
240.0

220.0

200.0

180.0

160.0

140.0
Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18

Allcargo Logistics Ltd

Definition of Ratings
Maybank Kim Eng Research uses the following rating system
BUY Return is expected to be above 10% in the next 12 months (excluding dividends)
HOLD Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends)
SELL Return is expected to be below -10% in the next 12 months (excluding dividends)

Applicability of Ratings
The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only
applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment
ratings as we do not actively follow developments in these companies.

February 21, 2018 13

Allcargo Logistics Ltd

 Malaysia  Singapore  London  New York

Maybank Investment Bank Berhad Maybank Kim Eng Securities Pte Ltd Maybank Kim Eng Securities Maybank Kim Eng Securities USA
(A Participating Organisation of Maybank Kim Eng Research Pte Ltd (London) Ltd Inc
Bursa Malaysia Securities Berhad) 50 North Canal Road PNB House 777 Third Avenue, 21st Floor
33rd Floor, Menara Maybank, Singapore 059304 77 Queen Victoria Street New York, NY 10017, U.S.A.
100 Jalan Tun Perak, London EC4V 4AY, UK
50050 Kuala Lumpur Tel: (65) 6336 9090 Tel: (212) 688 8886
Tel: (603) 2059 1888; Tel: (44) 20 7332 0221 Fax: (212) 688 3500
Fax: (603) 2078 4194 Fax: (44) 20 7332 0302

Stockbroking Business:  Hong Kong  Indonesia  India

Level 8, Tower C, Dataran Maybank,
Kim Eng Securities (HK) Ltd PT Maybank Kim Eng Securities Kim Eng Securities India Pvt Ltd
No.1, Jalan Maarof 28/F, Lee Garden Three, Sentral Senayan III, 22nd Floor 2nd Floor, The International,
59000 Kuala Lumpur
1 Sunning Road, Causeway Bay, Jl. Asia Afrika No. 8 16, Maharishi Karve Road,
Tel: (603) 2297 8888
Hong Kong Gelora Bung Karno, Senayan Churchgate Station,
Fax: (603) 2282 5136
Jakarta 10270, Indonesia Mumbai City - 400 020, India
Tel: (852) 2268 0800
Fax: (852) 2877 0104 Tel: (62) 21 2557 1188 Tel: (91) 22 6623 2600
Fax: (62) 21 2557 1189 Fax: (91) 22 6623 2604

 Philippines  Thailand  Vietnam  Saudi Arabia

Maybank ATR Kim Eng Securities Inc.
17/F, Tower One & Exchange Plaza
Ayala Triangle, Ayala Avenue
Makati City, Philippines 1200
Tel: (63) 2 849 8888
Fax: (63) 2 848 5738
Maybank Kim Eng Securities
(Thailand) Public Company Limited
999/9 The Offices at Central World,
20th - 21st Floor,
Rama 1 Road Pathumwan,
Bangkok 10330, Thailand
Tel: (66) 2 658 6817 (sales)
Tel: (66) 2 658 6801 (research)
Maybank Kim Eng Securities Limited In association with
4A-15+16 Floor Vincom Center Dong Anfaal Capital
Khoi, 72 Le Thanh Ton St. District 1 Villa 47, Tujjar Jeddah
Ho Chi Minh City, Vietnam Prince Mohammed bin Abdulaziz
Street P.O. Box 126575
Tel : (84) 844 555 888 Jeddah 21352
Fax : (84) 8 38 271 030
Tel: (966) 2 6068686
Fax: (966) 26068787

 South Asia Sales Trading  North Asia Sales Trading

Kevin Foy Andrew Lee
Regional Head Sales Trading andrewlee@kimeng.com.hk
kevinfoy@maybank-ke.com.sg Tel: (852) 2268 0283
Tel: (65) 6636-3620 US Toll Free: 1 877 837 7635
US Toll Free: 1-866-406-7447

Malaysia Thailand
Joann Lim Tanasak Krishnasreni
joann.lim@maybank-ib.com Tanasak.K@maybank-ke.co.th
Tel: (603) 2717 5166 Tel: (66)2 658 6820

Indonesia London
Harianto Liong Mark Howe
harianto.liong@maybank-ke.co.id mhowe@maybank-ke.co.uk
Tel: (62) 21 2557 1177 Tel: (44) 207-332-0221

New York India

James Lynch Sanjay Makhija
jlynch@maybank-keusa.com sanjaymakhija@maybank-ke.co.in
Tel: (212) 688 8886 Tel: (91)-22-6623-2629

Vietnam Philippines
Patrick Mitchell Keith Roy
patrick.mitchell@maybank-kimeng.com.vn keith_roy@maybank-atrke.com
Tel: (84)-8-44-555-888 x8080 Tel: (63) 2 848-5288
www.maybank-ke.com | www.maybank-keresearch.com

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