研究报告全文：14Feb2022CMBInternationalGlobalMarketsEquityResearchSectorUpdateChinaHardwareSemiRealitycheckonsmartphonesupplychainPreferMARKETPERFORMMaintainAppleandRFnamesFollowingprelimresultsreleasedinJan2023thesectorstartedtorallyChinaTechnologySectorsubstantiallydespiteamixedordisappointingsetofresultsInourviewthereboundismainlydueto1areliefrallywithbetter-than-fearedresults2risingLilyYangPhDexpectationforeconomyreboundonChinareopening3acceleratedlocalization85239163716trendunderthebackdropofSino-UStensionsHoweverbasedonourcheckslilyyangcmbicomhkwithsemicontactsinChinaandanalysisofrecentresultsfrommajorglobalChinesesemicompanieswethinktheconsumerelectronicmarketwillremainchallengingin1H23andrecoverymaycomein2H23theearliestOverallweAlexNgpreferApplesupplychainoverAndroidandRFnamesoverCISnames85239000881Maxscend300782CHiscurrentlytradingat45x2023EPEavaluationthatwealexngcmbicomhkthinkiselevatedandneedssubstantialgrowthinearningstosupportAnypullbacksinthemarketmaypresentabetterentrypointConservativesmartphoneoutlookfromrecentresultsandmajorforecastsFor2023globalNo1No2brandsAppleSamsungremainedconservativeonoutlookandSamsungexpectedYoYcontractionInadditionmajorityofmarketforecastsexpectednomajorreboundamidmacroheadwindsCounterpointIDCDigitimesprojectedamildrecoveryof2-3growthwhileGartnerStrategyAnalyticsbelievethemarketwillcontinuetocontractGivenongoingAndroidchannelcorrectionanddemandconcernsweexpectseminameswithhigherAppleexposuretooutperformpeersasinvestorsembracetheupcomingiPhone15upgradecycleOntheotherhandwebelieveAndroidnameswillseesuppressedsalesandGMthrough1H23ERFnamesarelikelytooutperformCISnamesCISplayersSonySamsungguidedcautiousoutlookinto1Q23EwhilesmartphoneRFQorvoSkyworksalsoindicatedconcernsoverdemandweaknessin1Q23EIntermsofinventorywebelieveCISstillhasaboveaverageinventorytodigestandRFhasrelativelylowerinventoryconcernsOverallwethinkRFnameswillbottomoutearlierthanCISplayersasinventoryrestockingwillboostdemandrecoveryin2Q23EExpectpositivesentimentinneartermCautiousonslower-than-expectedrecoverySemiconductorishighlycyclicalindustrywith3-5yearlengthHoweverwebelieveglobaleconomypressureislikelytoweighonthemarketanddelaydemandreboundin2023IntheneartermmarketsentimentwillremainstrongwithconsumerdemandrecoveryonChinare-openingLookinginto2Q23EwethinkmarketenthusiasmwillfadeasrecoveryofglobalconsumerspendingtimingandmagnitudemaycameinbelowinvestorexpectationsOverallwerecommendtoaccumulateApplesupplychainandRFnameswithfundamentalimprovementsValuationTableMktCapPriceTPUpDownPExROENameTickerRatingUSDmnLCLC-sideFY22EFY23EFY22EFY22EMaxscend300782CHBUY103041339710780-195577448144159Willsemi603501CHHOLD1638494007200-234103338458133Vanchip688153CHNA30725203NANA292975924102SkyworksSWKSUSNA1907511961NANA108128312253QorvoQRVOUSNA1049210331NANA86181293142SourceBloombergasof12Feb2023CMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk14Feb2022CautiousSmartphoneOutlookonEconomicHeadwindsGlobalsmartphoneshipmentdeclined12YoYto12bnin2022ByOEMAppleisgainingsharesfromAndroidcampexceptSamsungandHonorFigure1Globalsmartphoneshipmentdeclined12Figure2OEMsmarketsharechangeYoYin2022mn11M2022160015151473702021192113871919130112155020201200664302020662315800-281031117418-117-1243-1010811884001013-309130-50SamsungAppleXiaomi20182019202020212022EVivoOppoHonorGlobalsmartphoneshipmentYoYHuaweiTranssionOtherSourceCounterpointCMBIGMestimatesSourceCounterpointCMBIGMestimatesFigure3Globalsmartphoneshipmentdeclined117monthlyonaverageJan22Nov22mn20070501503010010-1050-300-50GlobalsmartphoneshipmentYoYSourceCounterpointCMBIGMestimatesFigure4OEMsmarketshareYoYchangeintermsofunitshipmentJan-22Feb-22Mar-22Apr-22May-22Jun-22Jul-22Aug-22Sep-22Oct-22Nov-22Samsung161166258374306388328271115-001059Apple038151069040025119126112142197-014Xiaomi-113-103-189-244-203-345-344-111157045097Vivo-080-114-114-124-121-146-136-157-149-149-092Oppo-236-281-192-221-219-154-134-145-149-130-041Honor306220215225229286202089008054037Transsion047083069045-018-051-009-043-087-085-038Other-123-122-116-095001-097-033-016-037069-008SourceCounterpointCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE214Feb2022For2023mostmarketforecastsexpectednomajorreboundCounterpointIDCDigitimesprojectedamildrecoveryof2to3growthwhileGartnerSamsungStrategyAnalyticsbelievethemarketwillcontinuetocontractFigure5Globalsmartphonemarketforecastsfor2023Globalsmartphoneshipment2023ECommentsonglobalmarketCommentsonChinamarketgrowthItisexpectedtocontinueunderperformingthroughH12023andonlystarttogrowfromQ32023OEMsfocusingonthepremiumsegmentwhichismoreCounterpoint20resilientthanthelowtomid-endannualsmartphoneshipmentsareunlikelytocomebacktopre-COVIDlevelsfortheshort-termIDCreducedits2023smartphoneforecastbyroughly70millionunitsgiventheongoingmacroeconomicenvironmentanditsoverallimpactondemandIDC28Globalsmartphonemarketwillremainchallengedthroughthefirsthalfof2023withhopesthatrecoverywillimprovearoundthemiddleofnextyearandgrowthacrossmostregionsinthesecondhalfChinasreopeningfromCovid-19lockdowncouldimproveFlattoConditionsremaintoughThemacroeconomywillhavedomesticmarketsButtheCanalysmarginaladverseeffectsonmid-to-high-endphonemarketsinWesternpositiveeffectswillshowgrowthEuropeandNorthAmericaeffectsinsixtoninemonthswhiledemandwillremainchallenginginshorttermConsumersareholdingontotheirphoneslongerthanexpectedfrom6to9monthsandmovingawayfromfixedtoflexiblecontractsintheabsenceofmeaningfulnewtechnologyGartner-4InadditionvendorsarepassingoninflationarycomponentcoststouserswhichisdampeningdemandfurtherEnd-userspendingonmobilephonesisprojectedtodecline38in2023In1Q23demandacrossallsmartphonesegmentsisexpectedtodecreaseQoQMarketSamsungtoAmidprolonginggeopoliticalissuescontinuedinflationandcontractthecontinuousglobaleconomicslowdownthesmartphonemarkettocontractin2023ItsamassmarketimpactedthemostGlobalsmartphoneshipmentvolumewillhitthelowestlevelsince2014StrategySamsungandApplewillmaintainthetoptwolistwith-5AnalyticstheimprovedmarketshareduringtheforecastwindowIncontrastXiaomiOPPOOnePlusandvivoetcwouldunderperformoverallmarketandfollowthedownturntrackin2022and20232023isshapinguptobeayearofgradualrecoveryNegativefactorsfrom2022willstilllingerwhichlimitshowmuchthesmartphonemarketcanbouncebackMoremajorgrowthislikelyonlycomingin2024ShipmentinChinaispredictedtogofrom2552Digitimes23Mostbrandshaveamoreconservativeapproachtoavoidmillionunitsin2022to2601buildingupinventorybelievingthatmarketdemandwillmillionunitsin2023aslightstillbeweakinthefirsthalfoftheyearandonlyseeYoYincreaseof19recoveryinthesecondhalfNearlyallbrandspredictedthattheirYoYgrowthfor2023willbeinthesingledigitswithmostplacingthefigurebelow5SourceCounterpoint122022IDC122022Canalys12023Gartner12023StrategyAnalytics12023companyinfoBloombergandCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE314Feb2022Theconsumersentimentwilllikelyremainweakandnegativefactorswilllingeratleastduring1H23Someinvestorsexpectthemarkettorecoverin2H23andAndroidnamesbottomoutfromchannelcorrectionwhileothersthinkpositivesignmaycomelaterin2024ForChinamarketthereopeningimprovesdomestictrafficandsomecategoriesofconsumerspendingsuchascateringentertainmentandtourismHoweverCanalyswarnedpositiveeffectonsmartphonemarketmaytake6to9monthstoappearanddemandwillremainchallenginginshorttermAppleexpectedMarchquartertoacceleratecomparedtoDecemberquarterSamsungsharedsomecolorondemandrecoveryexpectationwhichtheybelievewillbein2H23BothcompaniesnoticedapositivechangefromdomestictrafficdemandinDecemberinChinaFigure6KeytakeawaysfromAppleandSamsungslatestearningscallsMobilebusinessoutlookCommentsonCompanysmobilebusinessCommentsonChinamarketChinamarketdeclinedby7onareportedMacroeconomicoutlookandCOVID-relatedimpactsbasisbutactuallygrewonaconstanttoourbusinessdonotworsencurrencybasisdespitesomesignificantAppleMarchquarteryear-over-yearrevenueperformancesupplyconstraintstoacceleraterelativetotheDecemberquarteryear-sawamarkedchangeintrafficinourstoresover-yearrevenueperformanceascomparedtoNovemberandthatfollowedthroughtodemandaswelldemandwassluggishespeciallyinChina2023outlookconsumersentimentislikelytokeepuntilearlyDecembermutedduetovariousmacroissuesHoweverourdemandmayrecoverrelativelyinthesecondhalfofConsideringoutnumerousbarriersaffectingSamsungtheyearthankstothehigh-densitytrendsandthedemandssuchasinflationandinterestratespreadofnewcompetitorsinsmartphonestrendsaswellasChinaseasingCOVID-19policyandeconomicstimuluspackageswewillConsumerpreferenceforpremiumtabletsandcontinuetoobservemarketconditionsforsmartphonesshouldremainsolidvariablescenariosSourceCompanyinfoBloombergandCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE414Feb2022SmartphoneCISCounterpointestimatedglobalsmartphoneCISrevenuedeclined6in2022amixedimpactof1a12decreaseinsmartphoneshipment2lowernumberofcamerapersmartphoneduetoBOMpressureand3increaseincontentofCISpersmartphoneFigure7MarketsharebyprimarycamerasetupreflectedcontinuesOEMscostpressure1003580298298297298294295296296296295294294291288286288286290286302792802822832802832806027427527827626826926340247248252002001-2002-2003-2004-2005-2006-2007-2008-2009-2010-2011-2012-2001-2102-2103-2104-2105-2106-2107-2108-2109-2110-2111-2112-2101-2202-2203-2204-2205-2206-2207-2208-2209-2210-2211-22SingleDualTripleQuadOthersNoofRearCamerapersmartphoneSourceCounterpointCMBIGMestimatesSonywastheonlysupplierthatdeliveredrevenuegrowthandgainedshare5inthesmartphoneCISmarketthankstoApplesshareexpansionandcameraupgradesSamsunglost1duetoshipmentdeclinehoweverthenegativeimpactwasmildercomparedtoWillsemiThelatterlost35ofmarketshareCounterpointandisstillintheinventorycorrectionprocessFigure8CounterpointestimatedglobalsmartphoneFigure9GlobalsmartphoneCISmarketshareinCISrevenuetodecline6in2022termsofrevenueUSbnSKHynixOthers516300141134134126GalaxyCore5Willsemi12106207Thousands94810Sony5440Samsung290-10201720182019202020212022EMobileCISGrowthSourceYoleCounterpointandCMBIGMestimatesSourceCounterpointCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE514Feb2022InthelatestearningscallSonyslightlylowered1Q23salesforecastforimagingandsensingsolutionsISSby1duetodecreaseinunitsalesforsmartphoneCISpartiallyoffsetbyproductmiximprovementAccordingtotheCompanysguidanceISSsegmentrevenueisestimatedtogrow44YoYanddecline12QoQin1Q23Figure10SonysimagingandsensingsolutionsegmentquarterlysalesYenbn5004324365040400294284302212022173001412099905810200-12050-94100-106-104-100-202Q183Q184Q181Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q23EISSsegmentsalesYoYgrowthSourceCompanyinfoCMBIGMestimatesSamsungprovidedamorecautiousviewforsensorsSamsungthinksitisdifficulttoavoidweaksalesofmajorcomponentsuchassensorsgiventhesluggishdemandandcontinuousinventorycorrectionFigure11KeytakeawaysfromSonyandSamsungslatestearningscallsMobilebusinessoutlookCommentsonCompanysimagesensorbusinessSonyreviseddownImagingSensingSolutionsSegmentISSSegmentsfullyearsalesforecastSonyFYendedinMarchby1ThedownwardrevisionismainlyduetoloweredestimatesformobileCISamixedimpactfrom1decreaseinunitsalesand2improvementinproductmixInthefirstquarterimpactofsluggishdemandandinventoryadjustmentareexpectedtocontinuefortheSamsungtimebeingAnditmaybedifficulttoavoidweaksalesofmajorcomponentsuchasSoCsandsensorsSourceCompanyinfoBloombergandCMBIGMestimatesWethinkSonys2022outperformanceislargelyduetoApplescameraupgradesLookinginto1Q23SonyssalesgrowthprojectionforitssensorbusinessisinlinewithApplespredictionofanacceleratingmobilerevenueperformanceforMarchquarterAsthedemandoutlookforpremiumflagshipsegmentseemstobemoreresilientitislikelythatSonymaymaintainitsleadingpositionin2023ForAndriodCISsupplierswearecautiousthatinventorycorrectionmaylastlongerwhichcouldweighondomesticsuppliersmobileCISoutlookBeyonddemandconcernandchannelinventorymarginpressuremayalsochallengetheirbottomlinesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE614Feb2022SmartphoneRFSmartphoneRFsupplierQorvoexpressedsimilarconcernsofongoingdemandweaknessbutexpectedinventorywillreturntonormallevellaterthisyearSkyworksthinkstherecouldbeopportunitiesinAndroidportfoliowheninventorycorrectioniscompletedbutthetoneremainscautiousatthemomentBothcompaniesexpectedChinamarkettoimprovein2H23QorvothinksrevenuefromChina-basedsmartphoneOEMswillremainflatin1H23andachievestrongYoYgrowthin4Q23-1Q24Skyworksthinksinventorycorrectionwillcontinuein1Q23andtherewillbesomeimprovementsfrom2Q23Figure12KeytakeawaysfromSkyworksandQorvoslatestearningscallsTakeawaysfromCompanysearningscallsCommentsonCompanysbusinessoutlookCommentsonChinamarketexpectthatthedaysofinventorywillcomedownbacktomorenormalizedlevelinthesecondhalfofthecalendaryearWearestartingtogetbackonthesaddleherewithSomeofthemarketsinChinaarealittlebitmoretheAndroidportfolioAndasyouknowweactuallyvolatilebutinthosecaseswehaveverylittlehadbeenholdingbackbecauseitwassomeinventoryexposureinthatchannelIthinktherestillisAndroidDecemberwaslowMarchwillcontinuetoremainlowespeciallyChinawithVivoXiaomiandSkyworksAndtheopportunityforustohaveincrementalgainsthereisveryhighgiventhefactthatwekindofstayedtoacertainextentSamsungaswellarestillgoingonthesidelinesuntiltheseinventorylevelsgottoathroughthisinventoryburn-offprocessmorenormalizedpositionwillstartseeingsomeimprovementsintheItsnotabouttheproducttheproductsarereadytorollJunequarterandthenforsureinthebackhalfWevegoteverythingweneedtodrivethatofcalendaryear2023businessbutwejustwanttobecarefulasthemarketsmoveforwardButwehavethedesignwinmomentumforsureIn1Q23expectourChina-basedsmartphoneOEMsindollartermstoberoughlyflatButoverallourAndroidrevenuetobeupFor1Q23therellberathermodestdeclinesinIntermsofrevenuewewouldexpectJunetobedollartermsforourguidebiggestdriverofcourseisroughlyflattishTherecouldbeabithigherorabitACGcellularRFsolutionsforsmartphonesandotherlowerdependingonyourviewoftheeconomyordevicesChinasreopeningWedonthaveterriblyambitiousOurcurrentviewreflectsongoingdemandexpectationsforthereopeningatthispointweaknessacrossend-marketsaswellasourexpectSeptembertoseesignificantsequentialQorvoexpectationsforfurtherconsumptionofchannelgrowthandthenDecemberandtheMarch2024inventoryquarterstobebacktostrongannualgrowthexpectQorvosinventorypositionwilldeclineinMarchbutremainelevatedseesomeearlysignsoflifeinChinaandtheanticipatethechanneltonormalizelaterthissmartphonesalesthroughfirstfewweeksofcalendaryearJanuarylookpromisingButweneedtoseeacoupleofmonthsofthatIthinkourcustomersdoaswellbeforetheyreallystarttogainconfidencethereSorightnowthepurchaseorderpatternstheforecastremainsverycautiousSourceCompanyinfoBloombergandCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE714Feb2022DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBIGMwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE8