研究报告全文：12Jan2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateAntaSports2020HKBUYMaintainTurnaroundisinsightin2Q23ETargetPriceHK12894PreviousTPHK11330MaintainBUYandraiseourTPtoHK12894basedon31xFY23EPEbasedUpDownside175on1sdabovethe5-yearaverageupfrom25xWestillbelievethesectorcanCurrentPriceHK10970continuetore-rateasturnaroundislikelyinFY23Eeventhoughthevaluationisnottoocheapandbasewashighin1Q22Currentvaluationof26xFY23EPEisChinaSportswearSectornottoodemandingvs5-yearaverageof26xandintlpeersaverageof20xFY22EresultscouldbeunderpressureWearerevisingdownourFY22EWalterWoonetprofitforecastby14becauseof1increasedeffortsoninventory85237618776walterwoocmbicomhkclearanceegmorepromotionsgivenduringdouble112offlinestoresoperatingdeleverageduringthepeakseason3limitedreliefsonrentalRaphaelTseexpensesand4potentialneedsofinventoryprovisions85239000856NewYearEvewasencouragingbutweexpecttheturnaroundshouldraphaeltsecmbicomhkstartfrom2Q23EManagementdidhighlightamid-teenretailsalesgrowthduringtheNewYearEveholidaysandthetrendissustainingintoJan2023StockDataHoweverdueto1highbasegiventheWinterOlympicsinJan20222MktCapHKmn297684Avg3mthstoHKmn72417earlierthanlastyearCNYand3weakenedconsumptionpowerafterayear52wHighLowHK134206785ofeconomicslowdownweforecastonly0-11retailsalesgrowthofAntaTotalIssuedSharesmn27136FILAin1Q23Eandwealsoexpecttheturnaroundtobeginin2Q23EwithaSourceBloomberg411retailsalesgrowthforAntaFILAShareholdingStructureFY23EshouldbeayearofturnaroundwithmarginexpansionThoughMrDingShizhongCEOMr5500theFY23Eguidanceisnotoutyetmanagementreiteratedthat1inventoryDingShijiaV-ChairmanMrLaiShixianCFOFamilyclearanceisstillthetoppriorityand2doubledigitretailsalesgrowthforofflineFreeFloat4500andafastergrowthfore-commercearereasonabletargetsWealsobelieveSourceHKExthemarginmayalsoexpandreasonablyinFY23Edrivenby1improvedretaildiscountsaftertheheavypromotionsin1Q23E2ASPhike10SharePerformanceAbsoluteRelativegrowthforbothAntaFILAthankstobrandupgradeandramp-upofmore1-mth7604high-endfunctionalproducts3continualDTCbusinessreformaimingfor3-mth25715HSDOPmarginin2-3years4operatingleverageinducedbyFILA6-mth89109turnaroundasithasahighersalesmixfromshoppingmallsandlarger-sized12-mth-2783SourceBloombergstoresand5reductionsinAPexpensestoaround9-11ofsalesfromabout12-13inFY22E12-mthPricePerformanceHK2020HKHSIrebasedMaintainBUYandraiseourTPtoHK12894WemaintainBUYand140raiseTPtoHK12894basedon31xFY23EPEupfrom25xWerevise130downourFY22E23E24ENPforecastsby1488tofactorin1120110COVID-19relateddragsandoperatingdeleveragein4Q22and2greater-100than-expectedneedofpromotionsCurrentvaluationisnottoodemanding9080at26xFY23EPEvs5-yearaverageof26xPE7060Jan-22Apr-22Jul-22Oct-22Jan-23EarningsSummaryYE31DecFY20AFY21AFY22EFY23EFY24ESourceBloombergRevenueRMBmn3551249328538916301271400YoYgrowth4738992169133AuditorKPMGNetincomeRMBmn516277207242962811357EPSRMB186277260345407RelatedReportsYoYgrowth32492623301801AntaSports2020HKBUYAmorecautiousbutrelativelybetterConsensusEPSRMBnana294368450outlook18Oct2022PEx4973293512642242AntaSports2020HKBUYAntaPBx10485756252FILAtoturnaroundAmertobreakYield0615101317even24Aug2022ROE2152672192412383AntaSports2020HKBUYAresilient2Q22andamildinventoryNetgearingNetcashNetcashNetcashNetcashNetcashconcern12Jul2022SourceCompanydataBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk12Jan2023Anta4Q22retailsaleswasin-linewithstablediscountsandinventorylevelAntasretailsalesfellbyHSDYoYin4Q22worseningfromMSDgrowthin3Q22butin-linewiththemarketexpectationandCMBIestbecausetheexpectationisalreadyfairlybearishafterseriesofCOVID-19outbreakandheavydragsbytherelatedsocialdistancingmeasuresduringOct-Nov2022Retaildiscountswasstablevslastyearandinventorytosalesratioremainedat5monthssimilartothatin3Q22FILA4Q22retailsaleswasslightlybelowexpectationbutinventorylevelimprovedFILAsretailsalesdeclinedbylow-teensYoYin4Q22muchworsethanthelow-teengrowthin3Q22slightlybelowthemarketexpectationandCMBIestespwhenFILAsperformanceduringdouble11wasratherstellarWeattributethismisstotheoperatingdeleverageofthelarger-sizedstoresintheshoppingmallsRetaildiscountswasalsostablebuttheinventorytosalesratioimprovedmeaningfullyto7monthsfromaround7-8monthsin3Q22thankstoscalebackinorderstothefactoriesOtherbrands4Q22retailsalesgrowthwasinlineOtherbrandsretailsalesgrewby20-25YoYin4Q22slowingdownfrom40-45growthin3Q22mostlyduetotheCOVID-19outbreaksandtherelativelyhighofflinesalesmixabout80forDescenteandKolonSincetheE-commercesalesgrowthforDescenteKolonwasstillfastat3080in4Q22wearestillveryconfidentabouttheoutdoorsegmentspotentialinFY23EEarningsrevisionFigure1EarningsrevisionNewOldDiffRMBmnFY22EFY23EFY24EFY22EFY23EFY24EFY22EFY23EFY24ERevenue538916301271400561486565874407-40-40-40Grossprofit330513910044338348074090346386-50-44-44EBIT106001363015931122331480717204-133-79-74Netprofitatt724296281135783821049112300-136-82-77DilutedEPSRMB259734524072300537624410-136-82-77Grossmargin613621621620623623-07ppt-02ppt-02pptEBITmargin197216223218226231-21ppt-09ppt-08pptNetprofitattmargin134153159149160165-15ppt-07ppt-06pptSourceCompanydataCMBIGMestimatesFigure2CMBIGMestimatesvsconsensusCMBIGMConsensusDiffRMBmnFY22EFY23EFY24EFY22EFY23EFY24EFY22EFY23EFY24ERevenue538916301271400558876563877143-36-40-74Grossprofit330513910044338341784062648013-33-38-77EBIT106001363015931117461455717544-98-64-92Netprofitatt72429628113577955997812172-90-35-67DilutedEPSRMB259734524072293936844502-117-63-95Grossmargin61362162161261962202ppt02ppt-01pptEBITmargin197216223210222227-13ppt-05ppt-04pptNetprofitattmargin134153159142152158-08ppt01ppt01pptSourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE212Jan2023OperatingnumbersFigure3SportswearbrandssalesgrowthtrendOperatingnumbers3Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q22E1Q23E2Q23E3Q23ENikeChinasales270230-4010801904209010-240-80-200-13060-230260AdidasChinasales110150-58000-50701560-160-150-240-350-350-270-200-50300AntabrandsSSSGveMid-veHigh--ve20-veLow-veMid-veHigh-Antabrandsretailsales-veLSDveLSDveLSD40-4535-40-veMSDveMSD-veHSD0040teensteens25teensteensteensveLow--ve20-veMid--veLow--veMid-CorebrandveHSD-veLSD-veMSD-veMSD35-4035-40veHSDveMSDveLSDteens25teensteensteensOver-ve20-veLow--veLow-OverveMid--veHigh-Kids25veMSD45-50veMSD20-25veLSDveHSD2525teensteens20teensteensOverOverOverOverOverOverOverOnline35veMSD25-3030-35veHSDveHSDveMSD40405025604530veLow-veLow--veLow-FILAbrandsretailsales50-5550-55-veMSD20-2525-3075-8030-35veMSDveHSDveMSD-veHSD-110110teensteensteensOver-ve20--veMid-ClassicCorebrandveMSDveMSDveMSD80Over20FlatFlat-veMSD-veDD-veLSD4025teensOverOverOverOverveMid-veMid-veMid--veLow-Kids-veLSD100Over40veHSDveLSD70303020teensteensteensteensOverOverOverOverveMid-veLow-OverFusionveMSD150Over80-veMSDveLSDveHSD100705050teensteens20OverOverOverOverOverOverOnline16070-80Over40Over4020-2525-30veMSD708090206540115-veLow-Otherbrands30-3525-30-veHSD25-3050-5555-6070-7535-4030-3540-4520-2540-45120teensveMid-OverOverOverOver-veLow-Descente5050901501005040-4540-45teens60802035teens-veHigh-Over-veHigh-OverOver-veHigh-Kolon2020veLSD20-2530-40403040-45teens75teens2055teensveHigh-veLow-veLow-veLowveHighveLowveLow-veLow-LiNinggroupsSSSGna-veMSDveLSDnaveHSDteenstwentiesteens80202020teensveLow-veHigh--veHigh-veLowveLowveMidveMid-veHigh-Directretailna-veMSDveHSDnaveMSDteensteensteens90302020teensveLow-veMid--veLow-veLowveMidveHigh-veLow--veHigh-Wholesalesna-veMSDveMSDnaveHSDteensteensteens7020teensteensteensveMidveLowveLow-veMidveHighveLowveHighveMidveHighveMidveLow-E-CommercenaveLSD5040teens20303080302030teensveLowveMid-veHigh-veMid-veHighveLowveLowveLowveHighveMid-LiNinggroupsretailsales-veMSDveMSD-veHSD-90-9013030-3530-40teensteens8090403020teensveMid-veHigh--veMid-veLow-veLowveHighveMidveHighveMidveLowDirectretailFlatveMSD-veHSDteensteens30teens908030203020veMid-veLow-veHigh-veLow-veLowveLowveHighveHighveLowveLow-Wholesales-veHSD-veLSD-veHSD3040teensteens8090302020teensveLowveLowveLow-veHighveLowveMidveHighveMidveLowveMidveMidE-Commerce100veMSD5040teens2040309050403020veLow-XtepsSSSG10teensOver-ve20-Mid50-veMid-veMid-Xtepsretailsales20-veLSDveMSDveHSD30-3520-2530-3520-25-12000100202560teensteens361DegreesSSSGveLSDveLSD-ve20--veLow-veHigh-veLow-veHigh-veHigh-veLow-veMid-361Degreesretailsales-veHSDveLSD15-2025teensteensteensteensteensteensteensPouShengsSSSG6019-325-178PouShengssales219191-25103-0310478-150-251-267-250-241-85-210-180300-ve20--veHigh--veHigh-veHigh-Topsportsretailsales-veLSD25teens20teensveMidveMid-veLowveLowveMid-veMid-veLow-veLow-veHigh-DongXiangsSSSGtoHightoHightoMid-veMSDtoMidveMSDveHSDtoHightoHigh--veMSDtoMid-toMidteensSDSDSDSDSDteensteensSDveLow-veMid-veMidveMid-veLow--ve25--veLow-veLow--veMid-DongXiangsretailsalesveMSD60-70toMid-toHigh--veMSDtoHigh-veLSDteensteens30MidSDteensteensteensteensteens-ve30--veLow-DirectretailveHSDveMSDFlatveMSD70-7535teensve55-ve40--veLow-ve30-ve30-ve20-E-Commerce35-406045teens353530CMBIestimatesSourceCompanydataCMBIGMestimatesNikesyearendisinMayeg4Q18calendaryear2Q19fiscalyearSep-Nov2018PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE312Jan2023ValuationFigure4Peersvaluationtable3yrs12mUpROEYieldPriceMktCapYearPExPBxPEGTPDown-xCompanyTickerRatingLCLCsideHKmnEndFY1EFY2EFY1EFY2EFY1EFY1EFY1EHsharesSportswearAntaSports2020HKBUY128941097018297684Dec-2135126474612552613LiNingCo2331HKBUY730873200192803Dec-2135929267572612109XtepIntl1368HKBUY10529051623862Dec-2118915924221351128361DegreesIntl1361HKNRna329na6802Dec-21796807061030644TopsportsIntl6110HKNRna723na44835Feb-2217614435312132945PouShengIntl3813HKNRna091na4847Dec-21272720505320906ChinaDX3818HKNRna039na2296Mar-22na11302021400030Avg23815931261141525Med23014424221351128InternationalSportswearNikeNKEUSNRna12817na1552601May-224083251341253735610AdidasADSGYNRna14454na218652Dec-2167031542401924213PumaPUMGYNRna6380na80870Dec-2125924139351411813UnderArmourUAAUSNRna1094na36191Mar-232531782521na1600LululemonLULUUSNRna31102na310060Jan-22313271118914111500SkechersSKXUSNRna4660na56468Dec-2120415420172222600VfCorpVFCUSNRna3017na91589Apr-2214512842391271765ColumbiaCOLMUSNRna9251na44893Dec-2117816430261853013WolverineWWWUSNRna1287na7916Jan-22897816142430232MizunoCorp8022JPNRna270900na4246Mar-22107940606851722AsicsCorp7936JPNRna291100na32595Dec-212562203330780811Avg26219746402060416Med25317833301890813SourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE412Jan2023Figure5PEvaluationbandSourceBloombergCMBISestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE512Jan2023AssumptionsFigure6MajorassumptionsMajorassumptionsFY20AFY21AFY22EFY23EFY24ESalesbysegmentgrowthShoes113507150180125Apparels1332155164140Accessories1836580120120Total4738992169133SalesbybrandgrowthAnta-109675120150130AntaKids-370500220160150FILA18125100140100DescenteOthers354511300310250E-commerce138202190230150Total4738992169133SalesnetworkAnta68516422665266826702AntaKids30712981255126212671FILA20062054195420542154DescenteOthers457459505630840Total1238511916116621198712367GPmarginsAnta447522548552554FILA693705680700700Others659710690660660Total582616613621621OpexbreakdownAPExpensessales100124125110108Labourcostssales125135143148149RDexpensessales5959626160Rentalexpensessales104116121120117Sellingdistributioncostssales303360378368363Adminexpensessales6059646059OPmarginAnta283206193211216FILA258247200220225Others84184190220240Total258223196215222Effectivetaxrate312269270260260NPattmargin145157134153159NPattgrowth-34496-62330180SourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE612Jan2023FinancialSummaryIncomestatementCashflowsummaryYE31DecRMBmnFY20AFY21AFY22EFY23EFY24EYE31DecRMBmnFY20AFY21AFY22EFY23EFY24ERevenue3551249328538916301271400EBIT882611372106001363015931Footwear1270019139220102597229218DA490572742569551Apparel2167128632301993515740073Changeinworkingcapital34612821858576416Accessories11411557168218832109Incometaxpaid21812677288936494305Others37832876417514620Costofgoodssold1486118924208402391327063Netcashfromoperating745811861107281048812382Grossprofit2065130404330513910044338Otherincome10631649140115121714Capexinvestments7852585754756857Associatedcompanies-----Operatingexpenses1288820681238522698230120Interestreceived-----SDcosts1076617753204452309425758Others11382084---Adminexpex-RD12511812213323582618Netcashfrominvesting19234669754756857RDexp8711116127415311744Otheroperatingexp-----Equityraised21----EBIT882611372106001363015931Netchangeinbankloans3343196---Dividendpaid14042456313727173608Financecostsnet13651691197Others59552295423423423JVsassociates60181108315428Netcashfromfinancing12294947356031404031Exceptional-----Pre-taxprofit808911240107021403616556Netchangeincash67642245641365927494Beginningcashbalance822115323175922400530597Incometax25203021288936494305Exchangedifference33824---LessMinorityinterests407499570758894Cashattheendoftheyear1532317592240053059738091Netprofit516277207242962811357BalancesheetKeyratiosYE31DecRMBmnFY20AFY21AFY22EFY23EFY24EYE31DecFY20AFY21AFY22EFY23EFY24ENon-currentassets1915022766228862338824122SalesmixFixedasset21842853313435614100Footwear358388408412409Intangibleassetsgoodwill1579153112631023789Apparel610580560558561Prepaidleasepayments4643434343Accessories3232313030Interestinjointventures96589027913594509878Othernon-currentassets56839312931293129312Total10001000100010001000Currentassets3271739902454205438764006PLratiosCashandcashequivalents1532317592240053059738091Grossmargin582616613621621Inventories54867644610972078156Operatingmargin249231197216223Tradeandotherreceivables661469147554883210008Pre-taxmargin228228199223232Prepayments-----Netmargin145157134153159Othercurrentassets52947752775277527752Effectivetaxrate290267270260260Currentliabilities1171515943169061870620414BalancesheetratiosBankloans19681748174817481748Currentratiox2825272931Tradepayables23763146346539754499Quickratiox2320232527Accrualsotherpayables457269697614890210087Cashratiox131110142164187Taxpayables15071816181618161816Inventoryturnoverdays135147107110110Others12922264226422642264Tradereceivablesdays6851515151Tradepayablesdays5861616161Non-currentliabilities1432815062150621506215062Totaldebttotalequityratio6046403328Bankloans1245611425114251142511425NetdebtequityratioNetcashNetcashNetcashNetcashNetcashDeferredincome9974747474ReturnsDeferredtax527655655655655ROE215267219241238Others12462908290829082908ROA100123106124129PershareMinorityInterest18112740331040694963EPSRMB186277260345407Totalnetassets2401328923330283994047689DPSRMB058132089119158Shareholdersequity2401328923330283994047689BVPSRMB888107122147176SourceCompanydataCMBISestimates0274PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE712Jan2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBIGMwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE8