研究报告全文：MN20Mar2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateLiNing2331HKAconservativeguidancebutispricedinTargetPriceHK6644WefindYTDretailsalesandFY23Eguidanceamissevenvsoursell-sidePreviousTPHK7337leadingbearishviewHoweverwebelievethesharepricehasalreadypricedinUpDownside152themissafterthedroponFridayWiththeturnaroundaheadwestillrateitBUYCurrentPriceHK5770FY22resultsinlineLiNingssalesincreasedby14YoYtoRMB258bnChinaConsumerDiscretionary1higher3lowerthanCMBIBBGestwhilenetprofitrosebyonly1YoYtoRMB406bninlinewith9belowCMBIBBGestHoweverifweWalterWOOexcludedthehigherthanexpectedotherincomeandnetfinanceincome85237618776walterwoocmbicomhktheadjustednetprofitcouldfallby18YoY16belowCMBIest4Q22performancewasfairRetailsalesdeclinedbylow-teensin4Q22RaphaelTSEwhichisslightlyworsethanCMBIestofHSDdropHoweverthechannel85239000856inventorytosalesratioremainedextremelyhealthyatjust42xvs39xinraphaeltsecmbicomhk1H22and42xinFY22soastheages88new12oldinventoryStockDataRetaildiscountshadwidenedvs3Q22butinlinewithCMBIestMktCapHKmn15097471Q23EwaskindofunderpressurebutitshouldgraduallyimproveAvg3mthstoHKmn70252wHighLowHK81004060ManagementmentionedaMSDdoubledigitgrowthforofflineretailsalesTotalIssuedSharesmn26165growthinJan-FebMar2023whileonlineretailsalesisstillrecoveringthatSourceFactSetisquitedisappointingvsCMBIestoflow-teensInfacttheSSSGwasstillnegativeduringJan-Feb2023HoweverwebelievethetrendshouldShareholdingStructureVivaChinaHoldings104improvewithalowerbaseonwardRetaildiscountsinJan-Feb2023hasFidelityManagement44recoveredvs4Q22butisstillMSDhighervslastyearResearchCoSourceHKExFY23EguidancewasamissevenvsourbearishviewbuthasnowbeenpricedinOurestimatesforFY23Eisalreadylowamongthesell-SharePerformancesidesbuttheCompanystargetisevenmoreconservativemid-teenslistedAbsoluteRelativecosalesgrowthandaMid10-20NPmarginDespitethesoft1Q23E1-mth-194-1383-mth-77-80performancewearestillconfidentthatLiNingcanachieveitsguidance6-mth-111-145thanksto110tradefairordersin1Q-3Q23Eplusalowbasein4Q22SourceFactSet2resilientASPgrowthMSDfor1Q-3Q23Eandextremelygood12-mthPricePerformancereceptionfortheirhigh-endproductsegrunningshoespricedatRMB7993comfortableroomforGPmarginimprovementsretaildiscountscouldrecovereasilyfordirectretailande-commercesegmentHoweverthemanagementalsoflaggedpotentialsurgeinopexsuchasAPexpensesgiventheresumptionofmanymarathonsandothersportseventsAlsotheCompanyisnowtargetingaround250-20to-3020to30150newstoresforLiNingadultChinaLiNingLiNing1990LiNingYoungSourceFactSetMaintainBUYwithTPofHK6644astheworstshouldhavegoneThenewTPisbasedon33xFY23EPEupfrom32xslightlyhighervs5yearsaverageof32xsupportedby18NPCAGRduringFY22-25EItiscurrentlytradingat29xFY23EPEEarningsSummaryYE31DecFY21AFY22AFY23EFY24EFY25ERevenueRMBmn2257225803295303367137748YoYgrowth561143144140121OperatingprofitRMBmn51364887573266607637NetprofitRMBmn4010940638481875723666001EPSReportedRMB158154180214287YoYgrowth133623165188343PEx298334287241209PBx5856494237Yield1009111314ROE190170187193192NetgearingNetcashNetcashNetcashNetcashNetcashSourceCompanydataBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk20Mar2023EarningsrevisionFigure1EarningsrevisionNewOldDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue2953033671377482983334056na-10-11naGrossprofit1461016770188751515317363na-36-34naEBIT57326660763763457344na-97-93naNetprofitatt48195724660050176086na-40-59naDilutedEPSRMB180214246190231na-55-75naGrossmargin495498500508510na-13ppt-12pptnaEBITmargin194198202213216na-19ppt-18pptnaNetprofitattmargin163170175168179na-05ppt-09pptnaSourceCompanydataCMBIGMestimatesFigure2CMBIGMestimatesvsconsensusCMBIGMConsensusDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue295303367137748314173764141657-60-105-94Grossprofit146101677018875161741958321409-97-144-118EBIT573266607637669882879217-144-196-171Netprofitatt481957246600544967247473-116-149-117DilutedEPSRMB180214246209257282-141-171-128Grossmargin495498500515520514-2ppt-22ppt-14pptEBITmargin194198202213220221-19ppt-22ppt-19pptNetprofitattmargin163170175173179179-1ppt-09ppt-05pptSourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE220Mar2023OperatingnumbersFigure3HistoricalsalesgrowthtrendbybrandOperatingnumbers1Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q22E1Q23E2Q23E3Q23E4Q23ENikeChinasales-4010801904209010-240-80-200-1306000200100100AdidasChinasales-58000-50701560-160-150-240-350-350-270-500-200150100400AntabrandsSSSG-ve20-veLow-veMid-veHigh-Antabrandsretailsales-veLSDveLSDveLSD40-4535-40-veMSDveMSD-veHSD16010021025025teensteensteens-ve20-veMid--veLow--veMid-Corebrand-veLSD-veMSD-veMSD35-4035-40veHSDveMSDveLSD25teensteensteens-ve20-veLow--veLow-veMid--veHigh-KidsveMSD45-50Over20veMSD20-25veLSDveHSD25teensteensteensteensOnlineveMSDOver40Over50Over25Over60Over4525-3030-35Over30veHSDveHSDveMSDveLow-veLow--veLow-FILAbrandsretailsales-veMSD20-2525-3075-8030-35veMSDveHSDveMSD-veHSD14016080150teensteensteens-ve20--veMid-ClassicCorebrandveMSDveMSDveMSD80Over20FlatFlat-veMSD-veDD-veLSD25teensveMid-veMid-veMid--veLow-Kids-veLSDOver30Over30Over20100Over40veHSDveLSDteensteensteensteensveMid-veLow-FusionveMSDOver70Over50Over50150Over80Over20-veMSDveLSDveHSDteensteensOnline160Over80Over9070-80Over40Over4020-2525-30Over20veMSDOver65Over40115-veLow-Otherbrands-veHSD25-3050-5555-6070-7535-4030-3540-4520-2540-45120teensveMid--veLow-DescenteOver6090Over801501005040-4540-45Over20Over35teensteens-veHigh--veHigh--veHigh-KolonveLSD20-2530-40Over75403040-45Over20Over55teensteensteensveLow-veLowveHighveLowveLow-veLow--veHigh-LiNinggroupsSSSGna-veMSDveLSDnaveHSDteens80202020teensteens-veHigh-veLowveLowveMidveMid-veHigh--veHighDirectretailna-veMSDveHSDnaveMSDteens90302020teens20-veLow-veLowveMidveHigh-veLow--veHigh--veLowWholesalesna-veMSDveMSDnaveHSDteens7020teensteensteens20veLow-veMidveHighveLowveHighveMidveHighveMidveLow-E-CommercenaveLSD-veLSDteens20303080302030teens-veHigh-veMid-veHighveLowveLowveLowveHighveMid--veLow-LiNinggroupsretailsales-veMSDveMSD-veHSD2013050310teensteens8090403020teensteens-veMid-veLow-veLowveHighveMidveHighveMidveLow-veMid-DirectretailFlatveMSD-veHSD30teens908030203020teens-veHigh-veLow-veLowveLowveHighveHighveLowveLow--veLowWholesales-veHSD-veLSD-veHSDteensteens8090302020teens20veLow-veHighveLowveMidveHighveMidveLowveMidveMidE-Commerce100veMSDveMSDteens2040309050403020XtepsSSSG-ve20-Mid50-veMid-veMid-Xtepsretailsales-veLSDveMSDveHSD30-3520-2530-3520-25-veHSD18070802302560teensteens361DegreesSSSG-ve20--veLow-veHigh-veLow-veHigh-veHigh-veLow-veMid-361Degreesretailsales-veHSDveLSD15-20Flat25teensteensteensteensteensteensteensPouShengsSSSG-325-178PouShengssales-25103-0310478-150-251-267-250-241-85-2047018070200-ve20--veHigh--veHigh-veHigh-Topsportsretailsales-veLSD25teens20teensveMid-veMidto-veLow-veLowveLow-veHigh--veLow-veMid-DongXiangsSSSG-veMSDveMSDveHSDtoHighHigh--veMSDtoMid-toMidSDtoMidSDteenstoMidSDteensSDteensteensveLow-veMidto-veMidto-veMid-ve25-veLow-veLow--veMid-DongXiangsretailsalesveMSD60-70toMid-High--veMSDHigh-veLSD20toto30MidSDteensteensteensteensteens30-ve30--veLow-DirectretailFlatveMSD70-7535teens-veLow-ve30-ve30-ve20-E-Commerce35-40teens353530SourceCompanydataCMBIGMestimatesNikesyearendisatMayeg4Q18calendaryear2Q19fiscalyearSep-Nov2018PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE320Mar2023ValuationFigure4Peersvaluationtable3yrs12mUpROEYieldPriceMktCapYearPExPBxPEGTPDown-xCompanyTickerRatingLCLCsideHKmnEndFY1EFY2EFY1EFY2EFY1EFY1EFY1EHsharesSportswearLiNing2331HKBUY6644577015152099Dec-2233428756491903213AntaSports2020HKBUY123251022021277332Dec-2133125771592552713XtepIntl1368HKBUY10448112921384Dec-2119815622201351428361Degrees1361HKNRna385na7960Dec-2278690707990453Topsports6110HKNRna687na42602Feb-2217514033302133043PouSheng3813HKNRna071na3782Dec-2269440404110121ChinaDX3818HKNRna033na1913Mar-22na9502021400035Avg19814928241091529Med18614022201351428InternationalSportswearNikeIncNKEUSNRna12039na1465284May-223833051261183735011AdidasADSGYNRna14104na212688Dec-22na3345145980008PumaPUMGYNRna5078na64164Dec-2220815728251491216UnderArmourUAAUSNRna863na28333Mar-231581381917na0900LululemonLULUUSNRna29474na295215Jan-22297260110864111400SkechersSKXUSNRna4444na54168Dec-2215112216141090700VfCorpVFCUSNRna2142na65347Apr-221039526231191184ColumbiaCOLMUSNRna8600na41973Dec-2216214424211591414WolverineWWWUSNRna1663na10304Dec-221118125204020127MizunoCorp8022JPNRna312500na4936Mar-221161020707813719AsicsCorp7936JPNRna342000na38591Dec-2225922235321251613Avg19517843371220717Med16014426231220913SourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE420Mar2023Figure5Forward12MPEvaluationbandSourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE520Mar2023AssumptionsFigure6MajorassumptionsMajorassumptionsFY21AFY22AFY23EFY24EFY25ESalesbysegmentRMBmnShoes950613479156351793920264Clothes1182410709121011379515450Equipment12421616179419372034Others00000Total2257225803295303367137748SalesbysegmentgrowthShoes500418160147130Clothes605-94130140120Equipment6493011108050OthersnananananaTotal561143144140121SalesbychannelgrowthFranchises567157140130110Self-owned53564180150130E-commerce584164120160140International3495392500000Total561143144140121SalesnetworkbysegmentSelf-owned11651430159016501710Franchise47704865495549855015Sub-total59356295654566356725LNYoung12021308145815581658Total71377603800381938383GPmargins530484495498500OpexbreakdownAPsales7988939595Laboursales8077747371Rentalsales5156575553DAsales2830303031RDsales1821222222Provisionsales0000000000Sellingdistributioncostssales272283284284282Adminexpensessales4943444342OPmargins228189194198202Effectivetaxrate247250220200200Netprofitmargins178157163170175Netprofitattgrowth136113186188153SourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE620Mar2023FinancialSummaryINCOMESTATEMENT2020A2021A2022A2023E2024E2025EYE31DecRMBmnRevenue144572257225803295303367137748Costofgoodssold73631060313319149201690118873Grossprofit70941196912485146101677018875Operatingexpenses52307249842896791099012224Sellingexpense4425613873148391955010647Adminexpense482697579638699746RDexpense323414534650741830Operatingprofit219651364887573266607637Otherincome331416829801880987ShareoflossesprofitsofassociatesJV83159201177202226EBITDA277257675636661676798803Depreciation5345897158559981154Otheramortisation424134282212Interestincome35145448439463557Interestexpense66112121171171171Otherincomeexpense000000Pre-taxprofit224853285415617871558250Incometax54913171351135914311650Minorityinterest000000Netprofit169840114064481957246600BALANCESHEET2020A2021A2022A2023E2024E2025EYE31DecRMBmnCurrentassets97771867221684260763102636690Cashequivalents71871474517163210112532530359Accountreceivables6599031032118113471510Inventories134617732116237126862999Prepayment584849971111112671420STbankdeposits1402402402402402Othercurrentassets000000Non-currentassets48171160312002124021284513320PPE106516261943226926182974InvestmentinJVsassos00116218334464Intangibles19118815612910794Othernon-currentassets356297899787978697869787Totalassets145943027533686384774387250010Currentliabilities50157704825494461053711762Short-termborrowings000000Accountpayables122715991533204423152585Taxpayable59213081342135014211640Othercurrentliabilities319647975380605368007536Non-currentliabilities88914671467146714671467Long-termborrowings000000Othernon-currentliabilities88914671467146714671467Totalliabilities590491719721109131200413229Sharecapital228239239239239239Retainedearnings3316445043907913734Otherreserves84592086322082222832255022808Totalshareholdersequity86892110423965275643186836781Minorityinterest000000Totalequityandliabilities86892110423965275643186836781PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE720Mar2023CASHFLOW2020A2021A2022A2023E2024E2025EYE31DecRMBmnOperatingProfitbeforetaxation224853285415617871559454Depreciationamortization57663074988310191166Taxpaid5894561317135113591431Changeinworkingcapital14282678640383376Others3871975284454951816Netcashfromoperations276365254241590567037749InvestingCapitalexpenditure5949851032118113471510Acquisitionofsubsidiariesinvestments152430000Others2465511533514549653Netcashfrominvesting9926539499667798857FinancingDividendpaid3785151203121914201902Netborrowings000000Proceedsfromshareissues18986670000Sharerepurchases000000Others70310711324139015911858Netcashfromfinancing89170812527260930113760NetchangeincashCashatthebeginningoftheyear5961718714745171632101123858Exchangedifference33250000Others125875832418384843145523Cashattheendoftheyear71871474517163210112532529381GROWTH2020A2021A2022A2023E2024E2025EYE31DecRevenue42561143144140121Grossprofit4268743170148126Operatingprofit423133949173162147EBITDA383108023174161146Netprofit133136113186188153PROFITABILITY2020A2021A2022A2023E2024E2025EYE31DecGrossprofitmargin491530484495498500Operatingmargin152228189194198202EBITDAmargin192255218224228233ReturnonequityROE215269180187193192GEARINGLIQUIDITYACTIVITIES2020A2021A2022A2023E2024E2025EYE31DecNetdebttoequityx080707080808Currentratiox192426282931Receivableturnoverdays166146146146146146Inventoryturnoverdays667610580580580580Payableturnoverdays608551420500500500VALUATION2020A2021A2022A2023E2024E2025EYE31DecPE298334287241209298PEdiluted298334287241209298PB767761484136PCFPS242242345229202175Divyield080708111318EV136537613625471338368129989112567471007783EVSales946052443727EVEBITDA493236237196164114SourceCompanydataCMBIGMestimatesNoteThecalculationofnetcashincludesfinancialassetsPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE820Mar2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBISwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE9