研究报告全文：MN13Mar2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateJiangsuHengli601100CHPositivetakeawaysfromplantvisitUGtoBUYTargetPriceRMB9000WeupgradeHenglitoBUYfromHoldforthefirsttimesinceMay2021WePreviousTPRMB5800areturningpositiveaftervisitingHenglisproductionbaselastweekInthenearUpDownside358termcomingmonthswebelievethegrowthYoYofexcavatorhydraulicCurrentPriceRMB6627cylinderproductioninMaraftergoingthroughadecliningtrendsincelate2021suggestsanearlysignofturnaroundofdownstreamdemandBesidesChinaCapitalGoodsproductionofAWPmotorinMarisexpectedtoreacharecordhighwhichWayneFUNGCFAreaffirmsourpositivestanceonAWPFromalong-termperspective1-385239000826yearscontinuousmarketsharegaininpumpvalvesaswellaspenetrationwaynefungcmbicomhkintoglobalagriculturalmachinerycomponentmarketwillofferhighvisibilitytoHenglisearningsInadditionthecommencementofproductionbaseinMexicoKatherineNGestimatedannualoutputvalueofRMB15-20bnin3Q23Ewillhelpspeedup85237618725katherinengcmbicomhkthepenetrationintheUSmarketWereviseupour2023E24Eearningsforecastby110OurTPisraisedtoRMB90basedon42x2023EPE1SDaboveStockDatathe4-yearaverageof30xtoreflecttheaccelerationofearningsgrowthMktCapRMBmn888561Avg3mthstoRMBmn663ExcavatorhydrauliccylindergrowthturnspositiveinMarWe52wHighLowRMB73104176understandthatHenglihasscheduledproductionof64kunitsofexcavatorTotalIssuedSharesmn13408hydrauliccylinderinMarwhichrepresents12growthYoYWebelieveSourceFactSetthegrowthislargelydrivenbyChineseOEMsordersShareholdingStructureGrowthofexcavatorpumpvalvetocontinuein2023EWhileHengliWANGsfamily667hashighmarketshareinpumpvalveforsmall-sizeexcavator50theCCASSHongKong115SourceSSEshareinmedium-largesizeexcavatorisonly15WeseeahighchanceforHenglitoachievefurthermarketsharegaingiventhesolidtrackrecordSharePerformanceincylinderpumpvalvesmall-sizeAbsoluteRelative1-mth1349AgriculturalmachinerycomponentgrowthtoaccelerateHenglioffers3-mth1220motorspumpsvalvesforagriculturalmachinerysuchascottonpickers6-mth297339andcombinedharvestersThesecomponentscarryshorterusefullifethanSourceFactSetthatofexcavatorgiventhecontinuousoperationofthepumpingsystem12-mthPricePerformanceThisimpliesalargeaftersalesmarketAgainstthebackdropofsupplychaindisruptioninEuropeHenglicapturestheopportunityofpenetratingintotheagriculturemachinerycomponentmarketinEuropeWeforecastHenglitoachieveRMB500mnrevenueinoverseasin2023Eup100YoYInChinamarketweexpecttheimportsubstitutiontrendwillofferlargegrowthpotentialgiventhelowbaseAWPmotorSurpriseontheupsideHenglisproductionvolumeofmotorSourceFactSetlargelyforAWPisexpectedtoreach23kinMarrepresenting90growthWeseepotentialforHenglitocontinuetopenetrateintotheglobalRelatedreportsAWPmotormarketasoverseasAWPOEMsarefacingsupplychain1ChinaConstructionMachinerybottleneckAsacrosscheckHenglisstrongproductionfigureinMaralsoUpbeatguidancefromUSAWPreaffirmsourbullishviewonZhejiangDingli603338CHBUYmanufacturersreaffirmsourpositivestanceonthesector13Feb2023EarningsSummarylinkYE31DecFY20AFY21AFY22EFY23EFY24E2ChinaConstructionMachineryHDTSector2023outlookRevenueRMBmn785593098751961311006DifficultiesmasteredareYoYgrowth4511856098145opportunitieswon7Dec2022AdjustednetprofitRMBmn2253926941242562868834611linkEPSReportedRMB1732061862142583JiangsuHengli601100CHHOLDRevenuereboundedin3Q22YoYgrowth739195100151206WaitformoredatapointstoconfirmConsensusEPSRMBnana185205244recovery25Oct2022linkPEx345445357310257PBx106131706052Yield1008101114Netgearing253326491524543SourceCompanydataBloombergCMBIGMestimatesOur2023E-24EEPSisadjustedfortheshareplacementcompletedinlate2022PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk13Mar2023Figure1HenglishydrauliccylindersmonthlyFigure2HenglislargemediumsizepumpproductionmonthlyproductionUnitsHydrauliccyclinderforexcavatorUnitsLargemediumsizepump10000090009000080008000070007000060006000050005000040004000030000300020000200010000100000Jul-21Jul-22Jul-21Jul-22Oct-20Apr-21Oct-21Apr-22Oct-22Oct-20Apr-21Oct-21Apr-22Oct-22Jun-21Jan-22Jun-22Jan-23Jan-21Jan-21Jun-21Jan-22Jun-22Jan-23Mar-21Mar-22Mar-23Feb-23Feb-21Feb-22Feb-22Feb-23Feb-21Mar-21Mar-22Mar-23Nov-20Dec-20Nov-21Dec-21Nov-22Dec-22Sep-20Aug-20Aug-21Sep-21Aug-22Sep-22Sep-20Nov-20Dec-20Nov-21Dec-21Aug-22Nov-22Dec-22Aug-20Aug-21Sep-21Sep-22May-21May-22May-21May-22ActualproductionProductionplanActualproductionProductionplanSourceCompanydataCMBIGMestimatesSourceCompanydataCMBIGMestimatesFigure3HenglislargemediumsizevalvemonthlyproductionFigure4HenglismotormonthlyproductionUnitsLargemediumsizevalveUnitsMotor700025000600020000500015000400030001000020005000100000Jul-21Jul-22Apr-22Oct-22Oct-20Apr-21Oct-21Jan-21Jun-21Jan-22Jan-23Jun-22Jul-21Jul-22Feb-21Mar-21Feb-22Mar-22Feb-23Mar-23Aug-20Sep-20Dec-20Aug-21Sep-21Dec-21Aug-22Sep-22Nov-20Nov-21Nov-22Dec-22May-21May-22Oct-20Apr-21Oct-21Apr-22Oct-22Jan-21Jun-21Jan-22Jun-22Jan-23Feb-21Mar-21Feb-22Mar-22Feb-23Mar-23Nov-21Nov-22Nov-20Dec-20Dec-21Dec-22Aug-20Sep-20Aug-21Sep-21Aug-22Sep-22May-21May-22ActualproductionProductionplanActualproductionProductionplanSourceCompanydataCMBIGMestimatesSourceCompanydataCMBIGMestimatesFigure5HenglispumpsandmotorsFigure6HengliscontrolvalvesSourceCompanyCMBIGMSourceCompanyCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE213Mar2023Figure7ChangeinkeyassumptionsandearningsOldNewChangeRMBmn2022E2023E2024E2022E2023E2024E2022E2023E2024ERevenueHydrauliccyclinder493052785592509852825591340100Hydraulicpumpandvalve29403165350431443797483470200380Hydraulicsystem10811612210811111600-37-56Component37241745937239143000-63-63Revenuehydraulicbusiness83498975967787239581109714568134Otherbusiness29333729323500-43-43Totalrevenue83789008971487519613110064567133GrossmarginHydrauliccyclinder415431428413418420-02-12-08Hydraulicpumpandvalve45047047045046046500-10-05Hydraulicsystem45045545545045045000-05-05Component6010011060809000-20-20Grossmarginhydraulicbusiness41242942841242142700-08-01Otherbusiness90090074092088088020-20140Blendedgrossmargin41443142941442342900-08-01ChangepptSDexpenseratio-15-15-15-17-16-15-02-0100AdminexpenseandRDratio-103-95-95-113-108-100-10-13-05Netprofit253628443137242628693461-4309103SourceCompanydataCMBIGMestimatesFigure8KeyassumptionsRMBmn202020212022E2023E2024ERevenueHydrauliccyclinder44975187509852825591Hydraulicpumpandvalve23383236314437974834Hydraulicsystem157196108111116Component845677372391430Revenuehydraulicbusiness783892958723958110971Otherbusiness1714293235Totalrevenue785593098751961311006RevenuegrowthHydrauliccyclinder270153-173659Hydraulicpumpandvalve852384-28208273Hydraulicsystem829251-4503040Component688-200-45050100Revenuehydraulicbusiness454186-6298145Otherbusiness-231-1961100100100Totalrevenue451185-6098145GrossmarginHydrauliccyclinder468442413418420Hydraulicpumpandvalve523520450460465Hydraulicsystem457452450450450Component6235608090Grossmarginhydraulicbusiness440440412421427Otherbusiness743709920880880Blendedgrossmargin441440414423429SourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE313Mar2023ValuationWeupgradeHenglitoBUYfromHoldwithanewTPofRMB90upfromRMB58Werolloverourvaluationbaseto2023EandsetourTPbasedon42x2023EPEequivalentto1SDabovethe4-yearaverageof30xourpreviousTPwasbased30x2022EOurabove-averagePEistoreflecttheaccelerationofearningsgrowthFigure9HenglisPEbandFigure10HenglisPBbandRMBRMB175x16016061x135x14014012012049x95x10010037x80806025x6055x404013x202015x00Jul-14Jul-17Jul-21Jul-14Jul-17Jul-21Oct-17Oct-20Oct-11Oct-14Apr-14Apr-18Apr-21Jun-13Jun-16Jan-21Jan-15Jan-18Jun-20Oct-17Oct-20Oct-11Oct-14Apr-14Apr-18Apr-21Jun-13Jun-16Jan-21Jan-15Jan-18Jun-20Mar-13Mar-17Mar-20Feb-12Feb-22Feb-16Feb-19Nov-18Dec-19Nov-21Dec-22Nov-12Dec-13Nov-15Dec-16Aug-15Sep-16Aug-18Sep-19Aug-12Sep-13Aug-22Mar-13Mar-17Mar-20Feb-12Feb-22Feb-16Feb-19Nov-18Dec-19Nov-21Dec-22Nov-12Dec-13Nov-15Dec-16Aug-15Sep-16Aug-18Sep-19Aug-12Sep-13Aug-22May-12May-15May-19May-22May-12May-15May-19May-22SourceBloombergCompanydataCMBIGMestimatesSourceBloombergCompanydataCMBIGMestimatesFigure11PeerscomptableTickerCompanyRatingPriceTPUpsideMarketcapPExPBxlocallocaldownsideUSmnFY22EFY23EFY22EFY23EcurrencycurrencyHKlisted631HKEquitySANYINTERNATIONALBUY738132079299112110120181157HKEquityZOOMLIONHEAVY-HBUY4385242074981159206062338HKEquityWEICHAIPOWER-HBUY11121260131416420015312113808HKEquitySINOTRUKHKLTDHOLD12281000-19433116311308081839HKEquityCIMCVEHICLES-HNR694--2733120941209564HKEquityZHENGZHOUCOAL-HNR770--331749400806HKlistedaverage128991110Ashare000338CHEquityWEICHAIPOWER-AHOLD11601140-2144342421841413601100CHEquityJIANGSUHENGLI-ABUY6627900036131223563107160603338CHEquityZHEJIANGDINGLI-ABUY598271001944732512104337600031CHEquitySANYHEAVY-AHOLD17781470-17222843422582322000157CHEquityZOOMLIONHEAVY-AHOLD643600-776401951571010000425CHEquityXCMG-ANR704--122851381211413000528CHEquityGUANGXILIUGONG-ANR680--19601441180808603638CHEquityYANTAIEDDIEPNR1820--22586624925046600761CHEquityANHUIHELICO-ANR1863--20361541252119603298CHEquityHANGCHAGROUP-ANR1942--25511671382724000951CHEquityCNHTCJINANT-ANR1634--28355921821413601717CHEquityZHENGZHOUCOAL-ANR1380--3380101831712600582CHEquityTIANDI-ANR552--337499871110A-shareaverage2651902522OverseasCATUSEquityCATERPILLARINCNR2270--1172161431337263DEUSEquityDEERECONR3959--11732313112556456305JPEquityHITACHICONSTNR33200--54581039511106301JPEquityKOMATSULTDNR34210--254521061071312042670KSEquityDOOSANINFRACORENR81100--129673650908VOLVBSSEquityVOLVOAB-BNR2101--415601171152624Average1121073127HydrauliccomponentsPHUSEquityPARKERHANNIFINNR3385--4341417315844397012JPEquityKAWASAKIHVYINDNR30000--385010110109097242JPEquityKYBCORPNR40250--792494406066474JPEquityNACHI-FUJIKOSHINR39350--749757606066268JPEquityNABTESCOCORPNR34350--31782041781615Average1201111615AerialworkingplatformTEXUSEquityTEREXCORPNR532--35931091022521OSKUSEquityOSHKOSHCORPNR830--54281481151615LNRCNEquityLINAMARCORPNR652--29978270nanaPIGFPEquityHAULOTTEGROUPNR33--112na27805056345JPEquityAICHICORPNR8210--472112105nanaAverageexcludingHaulotte113981513SourceBloombergCompanydataCMBIGMestimatesNoteBasedonCMBIearningsestimatesforstocksundercoveragePLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE413Mar2023FinancialSummaryINCOMESTATEMENT2019A2020A2021A2022E2023E2024EYE31DecRMBmnRevenue5414785593098751961311006Costofgoodssold336943915211513255496289Grossprofit204534644098362040644717Sellingexpense111107112149154165Adminexpense43550986398910381101Others104162125120127138Operatingprofit139526872998236227453313ShareoflossesprofitsofassociatesJV000000EBITDA165929973402280432483864Depreciation264311404442503551Interestincome187223246451462555Interestexpense1563753351383737NetInterestincomeexpense3115189312425518Otherincomeexpense67741608896110Pre-taxprofit149326093069276232673941Incometax195348369331392473Minorityinterest275567Adjustednetprofit129622542694242628693461BALANCESHEET2019A2020A2021A2022E2023E2024EYE31DecRMBmnCurrentassets549275959146123471413916434Cashequivalents2343277736436961843910053Accountreceivables163927052560261927543277Inventories99712171607143016101767Prepayment98164160160160160Othercurrentassets4147331177117711771177Non-currentassets293530253186346439814230PPE236424322580285133623625Deferredincometax415250505050InvestmentinJVsassos000000Intangibles273280267273279265Goodwill000000FinancialassetsatFVTPL000000Othernon-currentassets257261289289289289Totalassets84271062012332158111812020664Currentliabilities217025902691269229763056Short-termborrowings937554597697697697Accountpayables79111311188109013731453Taxpayable6211984848484Othercurrentliabilities380785822822822822Non-currentliabilities643679402402402402Long-termborrowings20037044444444Deferredincome223200204204204204Othernon-currentliabilities220108153153153153Totalliabilities281332693093309433783458Totalshareholdersequity558473149196126681468817145Minorityinterest303844485461Totalequityandliabilities84271062012332158111812020664PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE513Mar2023CASHFLOW2019A2020A2021A2022E2023E2024EYE31DecRMBmnOperatingProfitbeforetaxation149326093069276232673941Depreciationamortization264311404442503551Taxpaid375714369331392473Changeinworkingcapital668494721931601Others2126241641383737Netcashfromoperations166019812796303033843456InvestingCapitalexpenditure4343805587001000800Acquisitionofsubsidiariesinvestments000000Others1828337420200Netcashfrominvesting4526639327201020800FinancingDividendpaid2655297839538491004Netborrowings10036128710000Proceedsfromshareissues000200000Others89723561383737Netcashfromfinancing45481871410098861041NetchangeincashCashatthebeginningoftheyear157123432777364369618439Exchangedifference1866284000Cashattheendoftheyear2343277736436961843910053GROWTH2019A2020A2021A2022E2023E2024EYE31DecRevenue2864511856098145Grossprofit327694183117123161Operatingprofit587927116212162207EBITDA494807135176158190Adjnetprofit549739195100183206PROFITABILITY2019A2020A2021A2022E2023E2024EYE31DecGrossprofitmargin378441440414423429Operatingmargin258342322270286301EBITDAmargin306382365320338351Adjnetprofitmargin239287289277298314GEARINGLIQUIDITYACTIVITIES2019A2020A2021A2022E2023E2024EYE31DecNetdebttoequityx020303050505Currentratiox252934464854Receivableturnoverdays100010091032108010201000Inventoryturnoverdays110992098910801000980Payableturnoverdays803799812810810820VALUATION2019A2020A2021A2022E2023E2024EYE31DecPE224345445357310257PB52106131706052Divyield181008101114SourceCompanydataCMBIGMestimatesNoteThecalculationofnetcashincludesfinancialassetsPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE613Mar2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBISwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE7