研究报告全文：MN1Feb2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateYonyou600588CHDistressedmarginwithnon-standardizedcloudTargetPriceRMB2227YonyouannouncedpreliminaryFY22netprofitofRMB200-220mn-689-717PreviousTPRMB2351YoYTheweaknesswasattributabletoCOVIDresurgenceandFY4Q22andhigherUpDownside92RDspendingWhileYonyousbusinessisslowlyrecoveringinFY23Eweremaincautiousonitscloudmigrationprogressasitslargeenterprisecustomers68ofCurrentPriceRMB2451revenuearelesswillingtoadoptstandardizedcloudmodelCustomizationwouldChinaSoftwareITServicesresultinhigherRDandthuslimitingbusinessscalabilityandmarginupsidefromcloudmigrationMarleyNGAN85239163719YonyoupreliminaryFY22missedonCOVID-resurgenceandhigherRDmarleyngancmbicomhkexpensesYonyouannouncedFY22preliminarynetprofitrangedfromRMB200-220mndown689-717YoYmissedconsensusestimateofBowenLIRMB505mnThewasattributableto1COVIDresurgenceinFY4Q22and4Q85237618957usuallyaccountsfor45offull-yearrevenue2higherRDand3FY21libowencmbicomhkrecordedone-offdisposalgainofRMB214mnFY22corerevenuesoftwareStockDataclouddeliveredYoYincreasebutthegrowthratewaslowerthanthatinFY21MktCapRMBmn84224316YoYWethinktheFY4Q22top-lineweaknessislargelyanticipatedbutAvg3mthstoRMBmn238theRDsurgeisnot52wHighLowRMB36451673TotalIssuedSharesmn34363BusinessslowlyrecoveringinJanYonyoussubsidiaryChanjettargetsSourceFactSet30YoYtop-linegrowthinFY23EYonyousHK-listedsubsidiaryChanjet1588HKalsoannouncedFY22profitwarningYonyousbusinesstargetingShareholdingStructuresmallmicroenterprisesisoperatedthroughChanjetYonyouowns6185MrWang-Chairman389stakeChanjetFY22revenuewasup12-18YoYwhileSaaSsubscriptionHKSCC72SourceCompanydatarevenuegrew45YoYImpliedFY4Q22revenuewasdown18YoYtoRMB180mnvs34YoYinFY9M22ManagementhostedaconferencecallSharePerformanceandcommentedthatbusinessisslowlyrecoveringsinceJan2023ChanjetAbsoluteRelativetargetstoachieve30YoYintop-linegrowthandtobreak-eveninFY23E1-mth14-66ThissuggestedRMB883mnrevenuecontributionbysmallmicroenterprisesto3-mth03-1626-mth176167YonyoumissedourpriorforecastofRMB11bnSourceFactSetCustomizationforlarge-enterprisesaddsmarginpressureWekeepour12-mthPricePerformanceviewthatYonyouscloudmigrationpathistoughwithitlargeenterprise-focusedstrategy68ofrevenueasthesecustomersmostlySOEsarelesswillingtoadoptastandardizedcloudmodelThedemandforcustomizationwouldresultinextraITservicesworkThisisin-linewithourobservationthatYonyouhasincreaseditsworkforceby4000people20YoYtoover25000eveninFY22Alsosincethecompanylauncheditscloud-focusedstrategyin20191revenueoperatingprofitgeneratedperemployeehasbeendecreasingfig5-6and2RDcapitalizationratewasupfromabout20to35SourceFactSetMaintainHOLDWecutFY22-24Erevenueby5-6andderivednewtargetKingdeevsYonyouvaluationpriceofRMB2227priorRMB2351basedonunchanged60xFY23EEVsalesEarningsSummaryYE31DecFY20AFY21AFY22EFY23EFY24ERevenueRMBmn8525893298181208314267YoYgrowth024899231181NetprofitRMBmn98867078217156026547EPSReportedRMB030022006016019YoYgrowth1682847081580169RelatedReportsConsensusEPSRMB0300220140250381Yonyou600588CH-SoftwarePEx12861642387715021286localizationaddsuncertaintytoEVSalesx9694836656cloudstrategy28Oct2022linkYield05060000002Yonyou600588CH-TakestimeROE13497234752tobuildthecloudplatform22AugNetgearing4222043374064612022linkSourceCompanydataBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk1Feb2023FocusChartsFigure1RevenueandgrowthQuarterlyFigure2RevenuemixQuarterlyRmbmn10045002090804000157035001060300050250054020000301500-520100010-1050001Q193Q191Q203Q201Q213Q211Q223Q220-151Q193Q191Q203Q201Q213Q211Q223Q22FinancialServiceBusinessCloudServiceBusinessRevenueYoYSoftwareBusinessSourceCompanydataCMBIGMestimatesSourceCompanydataCMBIGMestimatesFigure3Cloudservicerevenuemix3Q22Figure4RDcapitalizationrateYearlyRMBmnGovtpublicsectorclients45004084000353500Smallmicro303000businesses25122500202000151500100010Mid-sized5enterprises50010Large-sized00enterprises201220142016201820202022E2024E70RDexpensedRDcapitalizedCapitalizationrateSourceCompanydataCMBIGMestimatesSourceCompanydataCMBIGMestimatesFigure5YonyourevenueperemployeeFigure6YonyouoperatingprofitperemployeeRMBRMB2500007000060000200000500004000015000030000200001000001000001Q2Q3Q4Q5000010000200000300001Q2Q3Q4Q20192020202120222019202020212022SourceCompanydataSourceCompanydataPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE21Feb2023PreliminaryFY22resultskeypointsYonyoupreliminaryFY22netprofitmissedFY22netprofitattributabletoownersoftheparentrangesfromRMB200mntoRMB220mndown689-717YoYExcludingnon-recurringitemsnetprofitwouldrangebetweenRMB85-105mndown741-790YoYThedeclineinnetprofitwasresultedfrom1COVIDresurgenceinFY4Q22Projectdeliveryusuallytakesplacein4Q4Qusuallyaccountedfor45offullyearrevenueTheCOVIDresurgenceespeciallyinDec2022hasresultedinnewcontractsignandprojectimplementationdelayFY22corerevenuesoftwareclouddeliveredYoYincreasebutthegrowthratewaslowerthanthatinFY2116YoY2RDexpensesincreasedwithstructuralchangeinworkforceDuetotheincreasingdemandindigitalizationandlocalizationYonyouadded4000employeesinFY22resultinginanincreaseofRDexpensesMeanwhileYonyouspentmoreopextoboostITpartnersprojectdeliverycapabilityinordertofulfillargecustomersdemandinsoftwarecustomizationYonyouplanstoraisetheprofitsharingratiowiththeirITpartnersgoingforwardtoenhanceprofitability3Impactfromnon-operatingiteminFY21Yonyourecordedone-offdisposalgainofRMB214mninFY21Chanjet1588HKFY22profitwarningYonyouHK-listedsubsidiaryChanjet1588HKannouncedFY22profitwarningYonyousbusinesstargetingsmallmicroenterprisesisoperatedthroughChanjetandYonyouholds6185stakeinChanjetManagementhostedacallon31JantodiscussFY23outlookFY22revenueRMB661-697mn12-18YoYSaaSsubscriptionwasup45YoYCustomerretentionanddollarrenewalratealsoincreasedYoYbutrenewalrateimprovementwasnotsignificantImpliedFY4Q22revenueRMB180mn-18YoYvs34YoYinFY9M22FY22netlossRMB204-222mnvsnetlossofRMB18507mninFY21FY23EtargetsaRevenue30YoYbLimitedchangeinemployeescalewillfocusonboostingprofitabilitycTargettobreak-eveninFY23EFigure7ChanjetquarterlyfinancialsFY22Emid-pointofRMBmn4Q211Q222Q223Q224Q22EFY21guidanceRevenue219161174163181590679YoY58054342-175160150SaaSsubscription8085929998259375YoY9486452572311230450SaaSsubscriptionrevenuemix530530607544438552SourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE31Feb2023EarningsrevisionFigure8Yonyouearningsrevision2022E2023E2024ERMBmnNewOldDiffNewOldDiffNewOldDiffSales981810390-61208312667-51426715011-5Grossprofit56996105-770847473-583418853-6OPProfit134465-71471765-385851012-42PBT285657-57659977-337701236-38Netprofit217535-59560830-336551051-38EPS006016-59016024-33019031-38MarginsGM580588-72bps586590-37bps585590-51bpsOPM1445-311bps3960-214bps4167-264bpsPBTmargin2963-341bps5577-226bps5482-283bpsNetmargin2251-293bps4666-192bps4670-241bpsSourceCompanydataCMBIGMFigure9YonyouCMBIestimatesvsconsensus2022E2023E2024ERMBmnCMBIStreetDiffCMBIStreetDiffCMBIStreetDiffSales981810448-61208312824-61426715879-10Grossprofit56996245-970847701-883419599-13OPProfit134629-794711025-545851445-60PBT285567-506591024-367701547-50Netprofit217505-57560880-366551365-52EPS006014-56016025-34019037-49MarginsGM580598-173bps586601-143bps585605-199bpsOPM1460-465bps3980-410bps4191-500bpsPBTmargin2954-252bps5580-253bps5497-435bpsNetmargin2248-262bps4669-223bps4686-401bpsSourceCompanydataCMBIGMBloombergPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE41Feb2023OperatingmodelFigure10RevenuebreakdownRMBmn202020212022E2023E2024ERevenues8525893298181208314267Costofsales33213461411949995926GrossProfit52045471569970848341Grossmargin610612580586585RD14591704214925233078SGA24963099328139304486OperatingIncome1093555134471585Operatingmargin12862143941Non-OperatingIncome33219151188185ProfitBeforeTax1126774285659770Incometaxexpensegain7592876677Minorities6325193339NetIncometoShareholders989708217560655Netmargin11679224646EPSRMB030022006016019DPSRMB020020000000000SourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE51Feb2023Figure11OperatingmodelRMBmn202020212022E2023E2024ERevenuebreakdownSoftwareBusiness40443320307227892650CloudServiceBusiness342253216704929311617FinancialServiceBusiness100527642--Others5414---Total8525893298181208314267RevenueYoYSoftwareBusiness-22-18-7-9-5CloudServiceBusiness7455263925FinancialServiceBusiness-22-73-85-1000Blended05102318RevenuemixSoftwareBusiness4737312319CloudServiceBusiness4060687781FinancialServiceBusiness123000RevenuebreakdownbycustomerLargemid-sizedenterprises581867777925968711446-Large-sized501658706810846110005-Mid-sized803907111412261441Smallmicrobusinesses5155966948811059Govtpublicsectorclients11371268115815151761RevenueYoYbycustomerLargemid-sizedenterprises16172218-Large-sized17162418-Mid-sized13231018Smallmicrobusinesses16162720Govtpublicsectorclients12-93116SourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE61Feb2023Figure12QuarterlyoperatingmodelRMBmn1Q212Q213Q214Q211Q222Q223Q224Q22ERevenues12141963175639991279225820594222GrossProfit572124410202634628138310282660Operatingprofit-31467-124926-46589-366876Netprofitloss-13228-88581-393137-284757EPSRMB-000007-003018-012004-008022MarginsGrossmargin4763586649615063Operatingmargin-263-723-364-1821Netmargin-112-515-316-1418GrowthQoQRevenues-6962-11128-6876-9105GrossProfit-79118-18158-76120-26159OperatingprofitnanananananananaNetprofitlossnanananananananaGrowthYoYRevenues11552515176GrossProfit13159-2101111Operatingprofitna-72na-22na34na-5Netprofitlossna-14na-42na-43na24SourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE71Feb2023ValuationYonyou600588CHHOLDTPRMB2227WemaintainHOLDwithnewtargetpriceofRMB2227priorRMB2351basedonunchanged60xFY23EEVsalesFigure13YonyoupeersvaluationcomparisonMarketPriceTPEVsalesxFCFmarginSalesEPSCapCAGRCAGRCompanyTickerRatingUSmnLCLCFY22EFY23EFY22EFY23EFY21-24EFY21-24EYonyou600588CHHOLD124582451222779645617naKingdee268HKBUY75701708238398791719naKingsoft688111CHNR1920628130NA30923340412828OfficeSAPSAPUSNR14261711609NA454216178naIntuitINTUUSNR11699141645NA968629291827XeroXROAUNR81027680NA11790-722663WorkdayWDAYUSNR4535517648NA8470262019naServiceNowNOWUSNR8939944257NA12199293022114NRSalesforceCRMUS16475016475NA63541920179Mean1139117191948Median967919201928SourceBloombergCMBIGMestimatesFigure14Yonyou12MforwardEVsaleschartFigure15Yonyou12MforwardEVsalesbandxRMBmn25300000202500002000001515000010100000550000--Apr-20Oct-20Apr-21Oct-21Apr-22Oct-22Jun-20Jun-21Jun-22Feb-20Feb-21Feb-22Dec-22Dec-20Dec-21Aug-20Aug-21Aug-22Oct-21Apr-20Oct-20Apr-21Apr-22Oct-22Jun-21Jun-20Jun-22Feb-20Feb-21Feb-22Dec-22Dec-20Aug-21Dec-21Aug-22Aug-20EV48x85x1-yrfwdEVSALESMean122x159x196xMean1SDMean-1SDSourceBloombergCMBIGMestimatesSourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE81Feb2023FinancialSummaryINCOMESTATEMENT2019A2020A2021A2022E2023E2024EYE31DecRMBmnRevenue85108525893298181208314267Costofgoodssold294233213461411949995926Grossprofit556752045471569970848341Operatingexpenses476641114916556566137756Sellingexpense163415372027219225752942Adminexpense13899591072108913551543RDexpense163014591704214925233078Others113156113135159192Operatingprofit8021093555134471585Interestexpense118110792800Otherincomeexpense720143298179188185Pre-taxprofit14041126774285659770Incometax837592876677Aftertaxprofit13211051682198593693Minorityinterest1386325193339Netprofit1183989708217560655BALANCESHEET2019A2020A2021A2022E2023E2024EYE31DecRMBmnCurrentassets1016887737682124561388715579Cashequivalents7147560546168656925310217Restrictedcash191416801572199523922927Accountreceivables23423407361606658Othercurrentassets108410651088144416371776Non-currentassets737081779647120281231512540PPE251025072529268628152979Intangibles8707851862255733054141Othernon-currentassets399048855256678561955420Totalassets175381695017329244842620228119Currentliabilities91127950832596061079912056Short-termborrowings432624202802410837053690Accountpayables5975496547308901068Othercurrentliabilities13022402219165727643132Accruedexpenses405927412649311134414167Non-currentliabilities1324531078137213371342Long-termborrowings450390606570575Othernon-currentliabilities87453688767767767Totalliabilities924484039403109781213513398Sharecapital250432703271343434343434Capitalsurplus17621096892610961096109Retainedearnings339234183489336739274582Otherreserves485242664122412241224Totalshareholdersequity717375436987116871224712901Minorityinterest11221004939962962962Totalequityandliabilities175381695017329236272534427261PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE91Feb2023CASHFLOW2019A2020A2021A2022E2023E2024EYE31DecRMBmnOperatingProfitbeforetaxation14041126774285659770Depreciationamortization334357473526686876Taxpaid837592876677Changeinworkingcapital762605146397762546Others885400238800Netcashfromoperations15331613130471520412115InvestingCapitalexpenditure3765921030131115621877Others3831839212990590775Netcashfrominvesting183894123043019721102FinancingDividendpaid474651654000Netborrowings9091950702150543910Others161346110860263339Netcashfromfinancing27322561060753147149NetchangeincashCashatthebeginningoftheyear553171475605461686569253Exchangedifference7621400Cashattheendoftheyear7147560546168575925310217GROWTH2019A2020A2021A2022E2023E2024EYE31DecRevenue105024899231181Grossprofit33655142243177Operatingprofit723644927582514241Netprofit9331642846931580169PROFITABILITY2019A2020A2021A2022E2023E2024EYE31DecGrossprofitmargin654610612580586585Operatingmargin9412862143941ReturnonequityROE17213497234752GEARINGLIQUIDITYACTIVITIES2019A2020A2021A2022E2023E2024EYE31DecNetdebttoequityx040402030405Currentratiox111109131313Receivableturnoverdays832769664663663680Inventoryturnoverdays1096170143146162Payableturnoverdays741603690647269273VALUATION2019A2020A2021A2022E2023E2024EYE31DecPE56612861642387715021286PB81149147676461Divyield070506000000EV825689820441837394812442802086792335EVSales979694836656SourceCompanydataCMBIGMestimatesNoteThecalculationofnetcashincludesfinancialassetsPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE101Feb2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBISwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE11