研究报告全文：24Feb2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateiQIYIIQUSBUYMaintainStrongermomentumaheadTargetPriceUS86PreviousTPUS41UpDownside178IQdeliveredupbeat4Q22resultwithrev28YoY1aboveconsensusandCurrentPriceUS73adjNPatRMB856mn176aboveconsensusWebelievesuchstrongmomentumwouldcontinuein1Q23Eforecastingrevtoaccelerateto10YoYChinaInternetSectorbackedbyeye-catchingperformanceofTheKnockout狂飙IQisoneofourtoppicksinonlineentertainmentsegmentonitsstrongpipelineinFY23-24healthySophieHUANGrevgrowthclearmarginimprovementandtherelaxationofLFVcontent85239000889regulationToreflectstrongersubsandmarginexpansionweraisedFY22-24Esophiehuangcmbicomhkearningsforecastby77-91withhigherDCF-basedTPatUS86EasonXUAnotherupbeatquarterTotalrevresumedgrowthat28YoYin4Q22easonxucmbicomhk14aboveconsensusourestimatesattributabletostrongsubs15YoYandsolidadsrecovery25QoQGPMcameoutat289vsStockDataconsensusof248mainlyonlower-than-expectedcontentcostsNon-MktCapUSmn6587Avg3mthstoUSmn10599GAAPNPrecordedatRMB856mnsignificantlyaboveconsensusby17652wHighLowUS799165withbetteropexcontrolandnon-recurringitemsTotalIssuedSharesmn513SourceBloomberg1Q23EtoacceleratewithbreakthroughofTheKnockout狂飙IQsubsclimbedto1116mnin4Q2210QoQboostedbypremiumdramasShareholdingStructureGoldmanSachs493launchedegWildBloom风吹半夏NewLifeBegins卿卿日常WeOasisManagement458seehighvisibilityfor1Q23Erevtoaccelerateforecasting10YoYforBankofAmerica451SourceBloombergthewidepopularityofTheKnockout50viewershipmktshareTop1basedonEnlightentdataWeforecastsubswillincreaseto123mninSharePerformance1Q23Ewithnetaddsof11mnARMmightkeepflatQoQin1Q23EwithAbsoluteRelative1-mth221154highermixfromannualsubstooffsetpricinghikeInthelongrunARM3-mth15001364wouldbeingrowthtrajectorywithstrongermonetizationandrisingTV6-mth9361087memberswithhigherpriceWeexpectadstokeepstableYoYin1Q23ESourceBloombergLookingaheaditsrichercontentpipelinewouldfurthersupportuser12-mthPricePerformanceexpansionandsubsgrowthinFY23EincludingFoxSpiritMatchmaker狐USIQUSCCMPrebased妖小红娘StoryofKunningPalace宁安如梦2Q23Eetc87BettermarginoutlookIQupgradeditspriorityonmarginexpansionwith6qualitygrowthin2022Givenaseriesofhigh-qualitydramaslaunched5recentlyweturnmoreconfidentonIQsseculargrowthandprofitability4improvementWeexpectiQIYItoachievenon-GAAPOPMat10in1Q23E32FY23Enon-GAAPOPatRMB33bninFY23EwithGPMupto2610MaintainBUYWeraisedFY22-24Eearningsforecastby77-91toFeb-22May-22Aug-22Nov-22reflectstrongersubsandmarginexpansionOurDCF-basedTPwasSourceBloombergcorrespondinglyadjustedtoUS86implying24x17xFY2324EPElargelyinlinewithNetflixandMangosmultipleKeycatalysts1popularAuditorPwCdramastobelaunchedand2betteradsrecoverypostChinasreopeningEarningsSummaryYE31DecFY21AFY22AFY23EFY24EFY25ERevenueRMBmn3055428998318413379935152YoYgrowth2951986140AdjnetincomeRMBmn45491266228932343696AdjEPSRMB5615243439YoYgrowthNANANANANAConsensusEPSRMBNA03142542PExNA336209148131PSx1616151414Yield0000000000SourceCompanydataBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOANDhttpwwwcmbicomhk24Feb2023AnotherstrongquarterUpbeat4Q22IQreportedupbeat4Q22resultsRev28YoYtoRMB76bn1aboveconsensusBysegmentmembershipservices15YoYtoRMB44bn37aheadofourestimatemainlyattributabletopremiumdramaslaunchedin4Q22egWildBloom风吹半夏UnchainedLove浮图缘NewLifeBegins卿卿日常Noofsubsclimbedto1116mn105QoQinwhichpayingsubs107YoYupto1109mnAdsrevachievedsequentialgrowthin4Q2225QoQ18aboveourestimatesGPMwas289vsconsensusof248mainlyattributabletolower-than-expectedcontentcostsNon-GAAPNPrecordedatRMB856mn176aboveconsensusbackedbybetteropexcontrolandnon-recurringitemsFigure14Q22financialreviewRMBmn1Q212Q213Q214Q211Q222Q223Q224Q22QoQYoYConsensusDiffCMBIDiffRevenue7968760875897389727766577471759316287495173254Operatingprofit1014112213687389931263107841530-89449957103662Netprofit1267139717301776169214396304NANA103195130NAAdjnetprofit1021106514001002162781878563574NA31017671NAEPSRMB1291341751250200090220983561NA044123008NAMarginGrossmargin1089774119180212236289248210Operatingmargin-127-147-18010001319411036714Adjnetmargin-128-140-184-1362212251134110GrowthRevenueYoY422756-09-87-125-162814-09RevenueQoQ68-45-03-26-15-851221603-20OperatingprofitNANANANANANANANANANAAdjnetprofitNANANANANANANANANANASourceCompanydataBloombergCMBIGMestimatesFigure24Q22revenuebreakdown1Q212Q213Q214Q211Q222Q223Q224Q22QoQYoYRevenueRMBmn796876087589738972776657747175931628MembershipServices43123993428841214471428542114744127151OnlineAdvertising19171825166016651337119412471553246-67ContentDistribution779688627762626479730635-130-167Others961110210138428426981284661-485-215SourceCompanydataFigure3Keypremiumdramaslaunchedin4Q22SourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE224Feb2023Eye-catchingblockbusterdramatoboost1Q23EaccelerationWeseehighvisibilityforIQrevtoacceleratein1Q23Eforecastingrev10YoYforthewidepopularityofTheKnockout狂飙TheKnockout狂飙deliveredeye-catchingperformanceinCNYwith50viewershipmktsharebasedonEnlightentdataMgmtstatedthatsubsstronggrowthcontinuedinCNYwithhighermixfromannualsubsandTVmembersWeforecastsubsupto123mnin1Q23Ewithnetaddsof11mnLookingaheaditsrichercontentpipelinewouldfurthersupportuserexpansionandsubsgrowthinFY23EincludingFoxSpiritMatchmaker狐妖小红娘StoryofKunningPalace宁安如梦etcIn2Q23EwesuggesttoeyeonkeydramastobelaunchedsuchasStoryofKunningPalace宁安如梦Destined长风渡TheDemonHuntersRomance无忧渡Takeushome龙城andIamcriminalpolice我是刑警WeforecastARMtokeepstableQoQin1Q23EwithhighermixfromannualsubstooffsetpricinghikeInthelongrunARMwouldbeingrowthtrajectorywithpricinghikestrongermonetizationandrisingTVmemberswithhigherpriceFigure4Eye-catchingperformanceofTheKnockout狂飙in1Q23SourceEnlightentdataCMBIGMFigure5QuarterlysubsestimatesFigure6Yearlysubsrevestimates140152500014mnRMBmn1201214520000100101415000808606135100004041350002020125001Q212Q213Q214Q211Q222Q223Q224Q221Q23EFY21FY22FY23EFY24EFY25EMembershipservicesrevYoYgrowthSubsavgARMRMBSourceCompanydataCMBIGMestimatesSourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE324Feb2023Figure7iQIYIskeydramaseriespipelineinFY23ETitleProducerGenreACatandaFish骑着鱼的猫iQiYiRomanceTakeushome龙城iQIYIRomanceThemagicalwomen灿烂的转身iQIYILianRuiPicturesRomanceBionic仿生人间iQIYISci-FiRoadBackHome回来的女儿iQIYIMingRunEntertainmentCrimeSpecialLady陌上人如玉iQIYIChineseMiracleRomanceMywifeisathief柳叶摘星辰iQIYIRisingStarRomanceGrandmasNewWorld外婆的新世界iQIYIRadiantPicturesTenSpaceLifeTheGateofRenewal云襄传iQIYIYouthHelloWuxiaMoBai墨白iQIYIRomanceHuaXiJi花溪记iQIYIRomanceTheLotuesCasebook莲花楼iQIYIRomanceBackforyou漫影寻踪iQIYIRomanceRisingwiththewind我要逆风去iQIYIStellarRomanceFirstloveyou初次爱你iQIYIRomanceSongofthemoon月歌行iQIYIYideCultureHistoricalTheEmperorsLove倾城亦清欢iQIYIHistoricalTheComicBang开画少女漫iQIYIRomanceGoodWomen女人万岁iQIYILifeOurLife我们的日子iQIYILifeIamcriminalpolice我是刑警iQIYICrimeRoadtohome归路iQIYIRomanceEcho回响iQIYIForceCultureRomanceThedisppeared11thfloor消失的十一层iQIYIForceCultureCrimeMeetmeinyoursound月幻森林iQIYIHistoricalGoldenTrio老家伙iQIYIShandongFilmTVProductionLifeHelloLife你好生活iQIYIHuangChengPicturesLifeTheseventhgeneration七时吉祥iQIYIStellarHistoricalLife人生路遥iQIYILifeTheMutations天启异闻录iQIYIHistoricalNewYorkMission2唐人街探案2iQIYICrimeTigerCrane虎鹤妖师录iQIYIYouyaoqiHistoricalHuaJie花戒iQIYIHistoricalJiuXiaoHanYeNuan九霄寒夜暖iQIYIRomanceChinesePaladin4仙剑奇侠传4iQIYIHistoricalTheLordofLosersS2破事精英2iQIYILifeMosesonthePlain平原上的摩西iQIYILightonSeriesCrimeTheDemonHuntersRomance无忧渡iQIYIRomanceFoxSpiritMatchmaker狐妖小红娘iQIYITencentPicuturesStellarHistoricalDestined长风渡iQIYILiehuoFilm烈火影业ShenggeFilm盛阁影视HistoricalStoryofKunningPalace宁安如梦iQIYIHistoricalImperfectVictim不完美受害人Haohan浩瀚影视iQIYICrimeAJourneytoLove一念关山iQIYIRomanceSourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE424Feb2023Adstorecoverin1Q23EforecastingstablerevYoYiQIYIadscontinuedtoachievesequentialgrowthin4Q2225QoQdespiteYoYdeclineStrongperformanceofWildBloom风吹半夏andNewLifeBegins卿卿日常supportadsrecoveryLookingaheadweforecastadsrevtokeepflatYoYin1Q23EwithCNYpromotionsandTheKnockout狂飙outperformanceWeforecastitsadsrevtogrow11YoYinFY23EFigure8iQIYIsquarterlyadsrevestimatesFigure9iQIYIsyearlyadsrevestimates800015250030RMBmnRMBmn10207000200056000100500015000-54000-10-1010003000-15-202000-20500-301000-250-400-301Q212Q213Q214Q211Q222Q223Q224Q221Q23EFY21FY22FY23EFY24EFY25EAdsrevYoYgrowthAdvertisingrevYoYgrowthSourceCompanydataCMBIGMestimatesSourceCompanydataCMBIGMestimatesBettermarginoutlookWeseehighvisibilityforiQIYItoimproveitsprofitabilityinthelongrunforcontentcostcontrolpricehikeandoperatingleverageMgmthasupgradeditspriorityonmarginexpansionwithqualitygrowthfocusingoninvestingcorebizandhigher-ROIprojectsWeexpectnon-GAAPOPatRMB801mnin1Q23Enon-GAAPOPMat10andRMB33bninFY23EInthelongrunweforecastIQtoachievenon-GAAPOPMat14inFY25Enon-GAAPOPatRMB51bnwithGPMupto30Figure10QuarterlymarginestimatesFigure11Yearlymarginestimates4040303020201010001Q212Q213Q214Q211Q222Q223Q224Q221Q23EFY20FY21FY22FY23EFY24EFY25E-10-10-20-20-30-30GPMnon-GAAPOPMnon-GAAPNPMGPMnon-GAAPOPMnon-GAAPNPMSourceCompanydataCMBIGMestimatesSourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE524Feb2023MaintainBUYwithhigherTPatUS86TofactorinstrongersubswithbetterperformanceofcontentandmarginexpansionweraisedFY22-24Eearningsforecastby77-91WeraiseourDCF-basedTPtoUS86implying245x174xFY2324EPEconsideringearningsadjustmentandhighermultipleaftersectorre-ratingOurTP-impliedPEmultipleisslightlyaboveindustrialaveragebutlargelyinlinewithNetflixandMangosmultiplethemostcomparableonesiQIYIspositivepricedriversandcatalystswouldoriginatefrom1populardramasin1Q23E2Q23Etobelaunched2betteradsrecoveryand3marginimprovementOntopofthatweexpectiQIYItobenefitfromeasingregulationaheadFigure12DCFValuationDCFvaluationRMBmn2023E2024E2025E2026E2027E2028E2029E2030E2031E2032EEBIT327144025054586767737708854694041025111071Tax10025447950161775087198910251107DA13292136051401814607151071555916022164951731918185Workingcapital9873138001418214697152361571416137166441747618350CAPEX8929139951031106510801080109211471193FCF5699304034174244496257236480717479228606FCFGrowth-47122417151311109TerminalValue92183PVFCFTerminalValue56992700269429723085315931773123306234595AssumptionsWACC126Taxrate150Riskfreerate36Beta110Marketriskreturn118Terminalgrowthrate30Debtvalue0WACC8551112131415EquityValue159584786761PV64265209987816962minusNetcash8475Growth2510290837164minusMinorityInterest03010793867365EquityValue557903511196887567Sharesmn94740117100927768TargetPriceUSbasedonDCF8645123104957970SourceCMBIGMestimatesFigure13CMBIGMestimatesvsconsensusCMBIGMConsensusDiffRMBmnDec-YEFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue3184133799351523105233129356512520-14GrossProfit812495211037375698898104387370-06OperatingProfit232033924004198329223159170161267Adjnetprofit228932343696139323372734643384352AdjEPSRMB242340386143251295691354311GrossMargin25528229524426929311ppts13ppts02pptsOperatingMargin7310011464888909ppts12ppts25pptsAdjnetmargin729610545717727ppts25ppts28pptsSourceCMBIGMestimatesBloombergFigure14EarningsrevisionNewOldDiffRMBmnDec-YEFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue3184133799351523049232075NA4454NAGrossProfit812495211037368507755NA186228NAOperatingProfit23203392400412451954NA863736NAAdjnetprofit22893234369611981824NA911773NAEPSRMB242340386136206NA780652NAGrossMargin255282295225242NA30ppts40pptsNAOperatingMargin731001144161NA32ppts39pptsNANetMargin72961053957NA33ppts39pptsNASourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE624Feb2023Figure15ValuationcompsCompanyTickerMktcapCurrencyPriceCMBICMBIPEPSFY22-24EPSUSDmnRaitingTPFY22EFY23EFY24EFY22EFY23EFY24ECAGRiQIYIIQUS6927USD73BUY933620914816151459InternetgiantsTencent700HK426000HKD350BUY45025020417553474219AlibabaBABAUS251781USD95BUY156125106922018167DisneyDISUS186501USD102NANA24918815621191829NetflixNFLXUS150305USD338NANA27422118644393522Average22418015234312819VASSubscribersMango300413CH8900CNY33NANA30125121743373319BilibiliBILIUS8813USD22BUY30NANANA282319NATMETMEUS13334USD8BUY1119117315632312910HuyaHUYAUS1102USD5BUY8NANA519080908NADouyuDOYUUS438USD1NANANANA289040404147MomoMOMOUS1838USD9HOLD146965601010097YYYYUS2274USD32BUY4913213010609090813ChinaLiterature772HK4627HKD36NANA23820117439363220Average15716416722201814AdvertisingBaiduBIDUUS48660USD141BUY19518015513227252227WeiboWBUS4982USD21BUY2810294882727249FacebookMETAUS446141USD172NANA16814212636332918SnapchatSNAPUS15513USD10NANANA66322733282482Average15013011531282516Average19016115027252217SourceBloombergCMBIGMestimatesKeyInvestmentRisksKeyinvestmentrisksmayderivefrom1keycontentdelay2regulationuncertainty3slower-than-expectedadsrecoveryformacrouncertaintyand4competitionfromSFVPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE724Feb2023FinancialSummaryIncomestatementCashflowsummaryYE31DecRMBmnFY21AFY22AFY23EFY24EFY25EYE31DecRMBmnFY21AFY22AFY23EFY24EFY25ERevenue3055428998318413379935152Netincome6170136139822892712Membershipservices1671417711197892124622164DA1676616475132921360514018Onlineadvertising70675332591162036447ChangeinWC175861834698731380014182servicesContentdistribution28562470259326972778Others9771937891946984Others39183485354736523764OperatingCF601371570830403532COGS2751322319237172427724780Grossprofit304166788124952110373Capex401841892913995Purchaseoflong-term386582---investmentsSM47253467376540254230Others2049525---AdminExpInvestingCF1262266892913995RD27951899203921042139Operatingprofit44791312232033924004Equityraised268----ChangeofDebts2592401339469422Otherincomeexp15331346822849813CashfromCBraised6325222---netPre-taxIncome601234149825433191Others4119513---FinancingCF295944691339469422IncomeTax9784100254479Netprofit6251155139822892712Netchangeincash79274664615616582115Adjnetprofit45491266228932343696Cashbegofyr10941307571121326714926FX217----Cashendofyr30757112132671492617041BalancesheetKeyratiosYE31DecRMBmnFY21AFY22AFY23EFY24EFY25EYE31DecFY21AFY22AFY23EFY24EFY25ENon-currentassets3094832263294123089032364SalesmixFixedasset13451105183720682263Membership547611622629631servicesLong-terminvestments30352454245424542454Onlineadvertising231184186184183servicesLicensedcopyrights72586841685471407434Contentdistribution9385818079netOthers1931021864182671922920213Others128120111108107Total10001000100010001000Currentassets1152413786212152304525215Cash29977098132541491217027GrowthrateRestrictedcash7814141414Revenue2951986140Short-terminvestments1348818818818818Grossprofit668119621617289Accountreceivable27482403299431323209EBITNANA767462180Others43533453413541684146AdjnetprofitNANA808413143Currentliabilities2247628130299663004029988PLratiosAccountpayable88965993773479178012Operatingmargin1474573100114Customeradvances34854232379040234185Pre-taxmargin19701477591anddeferredrevenueAccruedliabilities31722626289429623024Adjnetmargin149447296105Short-termborrowings41183348468742183796Effectivetaxrate0303030814Others280611931108611091910971ReturnsNon-currentliabilities1432311575115751157511575ROE106005165206199Convertibleseniornotes126529568956895689568ROA10727456064Others167020072007200711575PershareMI8893939393EPSRMB564150242340386TotalEquity53646436102361347117166DPSRMB000000000000000Shareholdersequity52766343101441337817074BVPSRMB096100154202256SourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE824Feb2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMoritsaffiliateshaveinvestmentbankingrelationshipwiththeissuerscoveredinthisreportinpreceding12monthsCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBIGMwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE9