研究报告全文：MN23Mar2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateJiumaojiu9922HKPostpandemicmarginrecoveryisthekeyTargetPriceHK2352MaintainBUYandraisedTPgiventhesolidsalesrecoveryandhopefullyPreviousTPHK1970meaningfuloperatingleverageinFY23EHoweverduetoitsricherthanpeersUpDownside246valuationitisnotourtoppickinthesectorCurrentPriceHK1888FY22resultsinlineJiumaojiussalesdroppedby4YoYtoRMB400bnChinaConsumerDiscretionaryandnetprofittankedby85YoYtoRMB49mninFY22inlinewiththeirprofitwarningSuchasharpdropinourviewwasmainlydueto1WalterWOOoperatingdeleverageduringthepandemicin4Q22and2activecutinASP85237618776walterwoocmbicomhktoremainvalueformoneyWeexpectdecentsalesandmarginrecoveryforTaiErinJan-FebandRaphaelTSEFY23EWithoutthepandemicatypicalTaiErrestaurantshouldgenerate85239000856aroundRMB10mnsalesandhasa22to25restaurantlevelOPmarginraphaeltsecmbicomhkThankstoaseriesofcostreductionsandefficiencyimprovementscarriedStockDataoutinFY21-22suchas1investmentsinsupplychainandrawmaterialMktCapHKmn274404production2rigidcontrolonrentaltermsnegotiation3moreagilestaffingAvg3mthstoHKmn200andshiftschedulingand4cutinnon-essentialexpenseswebelieveunit52wHighLowHK23501190economicscanimproveevenfurtherSinceSSSforTaiErinJan-Feb2023TotalIssuedSharesmn14534SourceFactSethasalreadyreached101vs2022levelorabout92vs2019levelCMBIestwebelievethattherestaurantlevelOPmarginmayrecovertoShareholdingStructureabout20orevenbettervs21inFY19MoreoverasofflinecateringMrGuanYiHong407demandcontinuestostrengthenweseeroomforTaiErtoraiseitsASPCapitalResearch43ManagementagainwhichshouldbepositivetoitsGPmarginSourceHKExTaiErwillopenabout120storesinFY23Eofwhicharound15willbeSharePerformanceoverseasAccordingtomanagementsalesperstoreinplaceslikeAbsoluteRelativeSingaporeorMalaysiaareexceptionalwhichcouldbeafewtimesgreater1-mth1053vsatypicalstoreinmainlandChina3-mth-81-776-mth226136SongHotpotexpansionisabouttoacceleratewithqualityManagementSourceFactSetistargetingabout25newstoresforSongthisyearvsjust27storesasat12-mthPricePerformanceFY22andtheybelievethebrandmomentumwillstillbeonanuptrendinFY23E-24EInitiallySongHotpothasalwaysbeenpopularinSouthernChinabutitappearsnottooamazinginotherareasHoweveraftercertainrefinementandrampupitsperformanceisnotjustleadinginBeijingbutalsoinShanghaiwhichisakindofrecognitionasitisoneofthemostcompetitivemarketsinChinaMaintainBUYandraiseTPtoHK2352OurnewTPisbasedon35xSourceFactSetFY24EPErolledoverfrom40xFY23EPEduetotheturnaroundheadWefine-tunedournetprofitforecastsby3-4inFY23E24EtofactorinbetterGPmarginandoperatingleveragebutaslowersalesrecoveryEarningsSummaryYE31DecFY21AFY22AFY23EFY24EFY25ERevenueRMBmn41804006627280909915YoYgrowth54042566290226OperatingprofitRMBmn55624198813811803NetprofitRMBmn37225566732963512829NetprofitattRMBmn33994936094872211613EPSReportedRMBcents2338339419360017990YoYgrowth160785511366431331PEx6684972402281211PBx7273614938Yield0301060912ROE11015166193202NetgearingNetcashNetcashNetcashNetcashNetcashSourceCompanydataBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk23Mar2023EarningsrevisionFigure1EarningsrevisionNewOldDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue62728090991566588957na-58-97naGrossprofit40345240646643365840na-70-103naEBIT1020142818749751484na46-37naNetprofitatt6098721161593906na28-38naDilutedEPSRMB04190600079904080624na28-38naGrossmargin643648652651652na-08ppt-04pptnaEBITmargin163177189146166na16ppt11pptnaNetprofitattmargin9710811789101na08ppt07pptnaSourceCompanydataCMBIGMestimatesFigure2CMBIGMestimatesvsconsensusCMBIGMConsensusDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue62728090991573451004212815-146-194-226Grossprofit403452406466472263258294-146-172-220EBIT102014281874106215722006-39-92-66Netprofitatt60987211616509871262-62-116-80DilutedEPSRMB041906000799045406930911-76-134-123Grossmargin6436486526436306470ppt18ppt05pptEBITmargin16317718914515715718ppt2ppt32pptNetprofitattmargin9710811788989909ppt1ppt19pptSourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE223Mar2023ResultsSummaryFigure3Resultsreviewhalfyear1H222H22HalfyearlyFullyearlyRMBmn1H212H211H222H22YoYYoYRevenue2021215818992107-6-2COGS-751-786-664-783Grossprofit1270137212351323-3-4GPmargins628636651628Otherincomegains30342546Staffcosts-506-550-544-59077Staffcostssales-251-255-286-280Depofright-of-useassetsexpenses-161-181-192-2111916DepofROUassetsexpsales-80-84-101-100Otherrentalsexpenses-50-46-43-40-15-13Otherrentalsexpsales-25-22-23-19DAofotherassets-71-88-93-97329DAofotherassetsexpsales-35-41-49-46Utilitiesexpenses-65-68-67-82421Utilitiesexpsales-32-31-35-39Travellingrelatedexpenses-10-14-9-16-820Travellingrelatedexpsales-05-06-05-08APexpenses-17-31-23-32394APexpsales-08-14-12-15Deliveryservicefees-38-22-45-281827Deliveryservicefeessales-19-10-24-13Otheropex-70-148-80-1701514Otheropexsales-34-69-42-81OperatingprofitEBIT312257164103-47-60OPmargins1541198649Otheritems011-27-61Netfinanceincome-37-39-39-42Netfinanceincomesales-18-18-21-20Profitafterfinancingcosts27522998-0Associatedcoms1-0-2-1Jointlycontrolledcoms0000Pre-taxprofit27722996-1-65-101Tax-72-62-33-6Taxsales-35-29-17-03Effectivetaxrate-259-271-3464876Minorityinterests191352Netprofitatt18615458-8-69-105NPmargins927130-04SourceBloombergCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE323Mar2023Figure4ResultspreviewfullyearFY22EFY23EHalfyearlyFullyearlyRMBmnFY21FY22FY23EYoYYoYRevenue418040066272-457COGS-1537-1447-2238Grossprofit264225594034-358GPmargins632639643Otherincomegains647199Staffcosts-1057-1134-1444727Staffcostssales-253-283-230Depofright-of-useassetsexpenses-343-403-4891821DepofROUassetsexpsales-82-101-78Otherrentalsexpenses-97-83-114-1437Otherrentalsexpsales-23-21-18DAofotherassets-159-190-2802047DAofotherassetsexpsales-38-47-45Utilitiesexpenses-132-149-2151245Utilitiesexpsales-32-37-34Travellingrelatedexpenses-24-26-38847Travellingrelatedexpsales-06-06-06APexpenses-48-56-871657APexpsales-11-14-14Deliveryservicefees-61-73-932127Deliveryservicefeessales-15-18-15Otheropex-218-250-3541542Otheropexsales-52-62-56OperatingprofitEBIT5692671020-53283OPmargins13667163Otheritems11-88-19Netfinanceincome-75-81-85Netfinanceincomesales-18-20-14Profitafterfinancingcosts50598917Associatedcoms1-3-5Jointlycontrolledcoms000Pre-taxprofit50694912-81866Tax-134-39-238Taxsales-32-10-38Effectivetaxrate-264-410-261Minorityinterests32664Netprofitatt34049609-861137NPmargins811297SourceBloombergCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE422Mar2023ValuationFigure5PeersvaluationROEROE3yrsYield12MTPPriceUpdowMktcapYearPERxPBRxPEGxYTDHKHKn-sideperfCompanyTickerRatingLCLCHKmnEndFY1FY2FY1FY2FY0FY2FY1FY1LeadingGreaterChinaCateringJiumaojiu9922HKBUY235218882527461Dec-22497240273611102191350194Haidilao6862HKBUY20792100-1117054Dec-21133537411690506258070262Helens9869HKNRna1548na19612Dec-21na4237260151144na0545CafeDeCoral341HKBUY15121038466080Mar-222751532119171310224303Xiabuxiabu520HKBUY1120661697180Dec-21na2133731271143na11256TamJai2217HKNRna232na3110Mar-2223212221181931621613118Yihai1579HKNRna2150na22508Dec-2128423343371881695711221YumChina9987HKBUY554614850014202884Dec-223172573733651310809105GourmetMaster2723TTNRna14800na6851Dec-22253193212044114053023Avg1096298473935150311094Med284245373244144081078InternationalCateringYumBrandsYUMUSNRna12853na282539Dec-22249217nanana182091904McdonaldSMCDUSNRna27062na1553532Dec-22256232nanana1213172327StarbucksSBUXUSNRna10051na906548Oct-22296248nanana440142113RestaurantBrandsQSRUSNRna6200na219841Dec-222071867872426440523641ChipotleMexicanCMGUSNRna16237na351961Dec-223883191651403854711600170DardenDRIUSNRna15195na145128May-221941758682398469223198DominoSPizzaDPZUSNRna31461na87448Jan-23242214nanana123261592WendySWENUSNRna2129na35512Jan-23218190151196393778074659ShakeShackSHAKUSNRna5532na18304Dec-22na98856536005nana332WingstopWINGUSNRna18399na43220Dec-22959785nanana2171505337JollibeeFoodsJFCPMNRna22700na36612Dec-222772193431106145581313Avg3291151959627512242171Med253219827738905172013A-sharesGreaterChinaCateringFoshanHaitian603288CHNRna7510na396706Dec-21504426125106286252470957FujianSunner002299CHNRna2324na32947Dec-21565182282528152091219AngelYeast600298CHNRna4034na39960Dec-2126922141351531662512108Meihua600873CHNRna972na33712Dec-2261551815364281094845GuangzhouRestaurant603043CHNRna2770na17960Dec-212712104639189190171373ChinaQuanjude002186CHNRna1390na4888Dec-21nananana270nanana391XiAnCatering000721CHNRna1452na9500Dec-21nananana364nanana161Avg3342195244552082119101Med2712104135153190171257H-sharesConsumerStaplesUPC220HKNRna830na35850Dec-22186166232291136085863Tingyi322HKNRna1426na80343Dec-212531854443174241636535WantWant151HKNRna507na60251Mar-2213812431302562472115929MengniuDairy2319HKNRna3345na132210Dec-212021742825158148151555Vitasoy345HKNRna1532na16406Mar-22135658349451579060146BudweiserBrewing1876HKNRna2335na309233Dec-22342295343284113191349TsingtaoBrewery168HKNRna7940na139879Dec-222482183431154155381930CRBeer291HKNRna6135na199030Dec-2141233367591561844509125DaliFoods3799HKNRna322na44095Dec-2111610319171851721744496Avg3612423734138164633102Med2481853431156155381929SourceBloombergCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE522Mar2023Figure6Forward12MPEvaluationbandSourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE623Mar2023AssumptionsFigure7MajorassumptionsMajorassumptionsFY20AFY21AFY22AFY23EFY24EFY25ESalesbybrandRMBmnJiuMaoJiu716760606743850955TaiEr196232923108509266488221Otherbrands38127292438591739Total271541804006627280909915SalesgrowthbybrandJiuMaoJiu-47863-204227144123TaiEr536678-56638306236Otherbrands-2723881297500350250Total10540-42566290226SalesbysegmentgrowthRestaurantoperations-93592-91691292227Deliverybusiness121631226667277219Salesofspecialties-1464164-907150150150Others-158-269-223100100100Total10540-42566290226NumberofrestaurantsbybrandJiuMaoJiu988376798492TaiEr233350450555667773Otherbrands503730588699Total381470556692837964GPmarginsbysegmentJiuMaoJiu670610610610610610TaiEr595638646650655660Otherbrands600620620620620620Total615632639643648652OpexbreakdownStaffcosts-275-253-283-230-232-231Depreciationofright-of-useassets-90-82-101-78-76-75Otherrentalsrelatedexpenses-18-23-21-18-18-18DAofotherassets-41-38-47-45-41-38Utilitiesexpenses-35-32-37-34-32-31Others-97-84-101-91-89-88EBITmargins9013667163177189Effectivetaxrate209265397260260260NPattmargins46811297108117NPattgrowth-2451740-85511366431331SourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE723Mar2023FinancialSummaryINCOMESTATEMENT2020A2021A2022A2023E2024E2025EYE31DecRMBmnRevenue271541804006627280909915Costofgoodssold104615371447223828503448Grossprofit166926422559403452406466Operatingexpenses150921382363311339464769Staffcosts74810571134144418742293Otherrentalrelatedexpenses509783114145178Others3584825537879781175Operatingprofit21455624198813811803Otherincome5452466787106ShareoflossesprofitsofassociatesJV813578EBITDA5671058834175723302926Depreciation111159190280333380DepreciationofROUassets243343403489617743Interestincome301226324770Interestexpense6775818593100Otherincomeexpense81188192430Pre-taxprofit1775069491213041736Incometax3913439238341454Minorityinterest143266491122Netprofit138372566739641283BALANCESHEET2020A2021A2022A2023E2024E2025EYE31DecRMBmnCurrentassets286225592694350347466425Cashequivalents184413421486207031344634Accountreceivables151230466073Inventories51715789113137Prepayment203325312488629771STbankdeposits022222Othercurrentassets748807807807807807Non-currentassets194525762608267827222723PPE445572609685737747InvestmentinJVsassos313105210Intangibles121817161514Othernon-currentassets148419721972197219721972Totalassets480651355302618174689148Currentliabilities74980575793110721213Short-termborrowings4300000Accountpayables138141103153195236Taxpayable373838383838Othercurrentliabilities531625616740839939Non-currentliabilities99711931199126313541476Long-termborrowings000000Othernon-currentliabilities99711931199126313541476Totalliabilities174619981956219424272689Sharecapital000000Retainedearnings0013390119993462Otherreserves306031383213308630422997Totalshareholdersequity306031383346398750416459Minorityinterest000000Totalequityandliabilities306031383346398750416459PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE823Mar2023CASHFLOW2020A2021A2022A2023E2024E2025EYE31DecRMBmnOperatingProfitbeforetaxation1775069491213041736Depreciationamortization111159190280333380Taxpaid4813339238341454Changeinworkingcapital310438503838Others30442820698112125Netcashfromoperations546856414100213711749InvestingCapitalexpenditure280336260345372377Acquisitionofsubsidiariesinvestments160000Others8031480000Netcashfrominvesting1084490260345372377FinancingDividendpaid58567113158226Netborrowings178430000Proceedsfromshareissues288500000Sharerepurchases000000Others259689818593100Netcashfromfinancing2390789107266127NetchangeincashCashatthebeginningoftheyear12718441342148620703134Exchangedifference136790000Others185242314458510641500Cashattheendoftheyear184413421486207031344634GROWTH2020A2021A2022A2023E2024E2025EYE31DecRevenue1054042566290226Grossprofit1958332577299234Operatingprofit34716035673102397306EBITDA1198652121106326256Netprofit257169785111105431331PROFITABILITY2020A2021A2022A2023E2024E2025EYE31DecGrossprofitmargin615632639643648652Operatingmargin7913360158171182EBITDAmargin209253208280288295ReturnonequityROE8512017184213223GEARINGLIQUIDITYACTIVITIES2020A2021A2022A2023E2024E2025EYE31DecNetdebttoequityx060404050607Currentratiox383236384453Receivableturnoverdays272727272727Inventoryturnoverdays220145145145145145Payableturnoverdays409331260250250250VALUATION2020A2021A2022A2023E2024E2025EYE31DecPE17726684972402281211PEdiluted17726684972402281211PB5610063604837PCFPS313365505240175137Divyield010201070913EV243352260965259529253683243042228046EVSales906265403023EVEBITDA42924731114410478SourceCompanydataCMBIGMestimatesNoteThecalculationofnetcashincludesfinancialassetsPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE923Mar2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBISwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE10