研究报告全文：MN27Mar2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateGlodon002410CHClearroadmaptodigitalizetheconstructionvaluechainGlodondeliveredstrongFY4Q22resultsandgaveupbeatFY23EguidancewithTargetPriceRMB8234revenueandnetprofitgrowthof30YoYCoresegmentConstructionCostingPreviousTPRMB7856hascompletedSaaSmigrationwithconversionrenewalrateof9080UpDownside267respectivelyLeveragingonthiscashcowbusinessGlodonwillfocusontheCurrentPriceRMB6500ramp-upofConstructionManagementplatformandproprietaryDigitalDesignChinaSoftwareITServicesproductsinFY23-25ETheCompanyistargetingFY25ErevenuetodoublecomparedtoFY22levelwithnetmarginof15WelikeGlodonforitsMarleyNGANleadershipindrivingdigitalizationalongtheconstructionvaluechain85239163719marleyngancmbicomhkFY4Q22beatontightopexcontrolFY23EguidancepromisingGlodonreportedFY4Q22revenueofRMB213bn6YoYandnetprofitofBowenLIRMB328mn77YoYGPMOPMbothrecordedsolidimprovementof852376189574pts76ptsYoYon1lowerprojectbasedconstructionmanagementlibowencmbicomhkrevenue-19YoYand2-36ptsdeclineinopexratioinFY4Q22StockDataMeanwhileGlodonguidedapromisingFY23EoutlookwithrevenueandnetMktCapRMBmn774402profitbothgrowingat30YoYAvg3mthstoRMBmn62452wHighLowRMB68334179ConstructioncostingtransformingintoastablecashcowasSaaSTotalIssuedSharesmn11914migrationcompletedGlodonscostingSaaSrevenuewasRMB879mninSourceFactSetFY4Q2221YoYaccountingfor41oftotalrevenueSaaSmetricsShareholdingStructureincludingnewlysignedcontractofRMB113bn23YoYandcontractedDiaoZhizhong-Chairman160liabilitiesofRMB268bn31YoYsuggestedasteadygrowthoutlookOtherco-founders153FY22markedthelastyearofSaaSmigrationHighconversionrate90SourceCompanydataandrenewalrate80arethepillarsforfuturecashflowWebelieveFCFSharePerformancemarginimprovementFY22FCFmargin12willdrivefurtherre-ratingAbsoluteRelativeThe9ththree-yearplanFY23-25EtargetsFY25Erevenuetodouble1-mth91100comparedtoFY22levelwithnetmarginexceeding15Glodonlaidout3-mth117666-mth438377thThe9three-yearplanwithsolidtargetsinrevenueandmargindrivenbySourceFactSettheramp-upof1DigitalprojectintegrationmanagementplatformPaaSmoduleand2DigitaldesignbusinessesInFY2221000new12-mthPricePerformanceConstructionManagementprojectswereinitiatedinvolving1600newcustomersalthoughrevenuerecognitionwasbeingaffectedinFY4Q22ForDigitalDesignGlodonhasexpandedfromHousingtoRoaddesignproductsIn2022GlodonsRoaddesignproductsinvolvedmorethan100kmofroads70bridges11tunnelsand10interchangesMaintainBUYWeraisedFY23-24Enetprofitby11-15toreflect1higherSourceFactSetrevenuegrowthinconstructionmanagementanddigitaldesignsegmentsand2betteropexcontrolOurnewtargetpriceofRMB8234priorRelatedreportsRMB7856isbasedonunchanged11xFY23EEVsales3-yearmean1Glodon002410CH-ClearEarningsSummaryoperatingleveragefromSaaS21Feb2023linkYE31DecFY21AFY22AFY23EFY24EFY25ERevenueRMBmn5619659181409800116982Glodon002410CH-Solid3Q22despiteshort-termGPMdeclineYoYgrowth40317323520419428Oct2022linkNetprofitRMBmn66109667119541581318820EPSReportedRMB0560810720951133Glodon002410CH-PenetratingintobasicinfrastructuresegmentYoYgrowth96645812832319024Aug2022linkConsensusEPSRMB056081111146naPEx1220626907686576EVSalesx131111887157Yield0408030303ROE108160173194198Netgearing700688815904990SourceCompanydataBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk27Mar2023FocusChartsFigure1RevenueandgrowthFigure2RevenuebreakdownRMBmn10025006090802000507040601500503040100030202050010100001Q183Q181Q193Q191Q203Q201Q213Q211Q223Q221Q174Q173Q182Q191Q204Q203Q212Q22ConstructioncostingConstructionManagementOthersTotalrevenueYoYSourceCompanydataSourceCompanydataFigure3SaaSrevenueFigure4SaaSnewlysignedcontractRMBmnRMBmn100010013002009009012001801100800801000160700709001406006080012070050050100600400405008030030400602002030040200100101002000001Q184Q183Q192Q201Q214Q213Q221Q184Q183Q192Q201Q214Q213Q22SaaSrevenueYoYSaaSnewlysignedcontractYoYSourceCompanydataSourceCompanydataFigure5SaaSunearnedrevenueFigure6OperatingcashflowtonetprofitratioRMBmnRMBmn300025020006018002500200160050200015014004012001500100100030800100050600205000400102000-500-1Q184Q183Q192Q201Q214Q213Q222010201220142016201820202022SaaSunearnedrevenueYoYNetprofitOperatingcashflowOCFtoNPratioSourceCompanydataSourceCompanydataPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE227Mar2023FY4Q22resultsreviewRevenuewasRMB2130mn6YoY26QoQmissingourestimateby12andconsensusby8GrossprofitwasRMB1744mn11YoY29QoQmissingourestimateby8andconsensusby9Grossmarginwas8194pctptsYoY19pctptsQoQaboveourestimateby37pctptsbutbelowconsensusby1pctptOperatingprofitwasRMB397mn79YoY61QoQaboveourestimateby36Operatingmarginwas18676pctptsYoY4pctptsQoQaboveourestimatesby66pctptsNetprofitwasRMB328mn77YoY36QoQaboveourestimateby34andconsensusby10Figure7FY4Q22resultsreviewDec-21Sep-22Dec-22Dec-22Dec-224Q213Q224Q224Q22versus4Q22versusRMBmnactualactualactualYoYQoQCMBICMBIconsensusconsensusRevenue2018169121306262421-122307-8Grossprofit15721353174411291893-81913-9Grossmargin7798008194pctpts19pctpts78237pctpts829-1pctptsOperatingprofit22224739779612923629236Operatingmargin11014618676pctpts4pctpts12166pctpts1276pctptsNetnon-op-5-1-17-245-3372-6-18184-121PBT2172473807554286333761Netincome18624132877362463429910EPSRMB01602002877360213402415SourceCompanydataCMBIGMFigure8FY22resultsreviewFYFYFYFY202120222022versus2022versusRMBmnactualactualYoYCMBICMBIconsensusconsensusRevenue56196591176883-46755-2Grossprofit47275467165615-35635-3Grossmargin841829-12pctpts81614pctpts834-05pctptsOperatingprofit74811205010141010932Operatingmargin13317037pctpts14723pctpts16208pctptsNetnon-op1-42-311PBT749107844984101093-1Netincome6619674688499591EPSRMB0560814607490810SourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE327Mar2023FY4Q22revenuebreakdownConstructioncostingSaaSrevenuewasRMB879mn21YoY5QoQSaaSrevenueaccountedfor41oftotalFY4Q22revenueConstructioncostingnon-SaaSrevenuewasRMB505mn26YoY37QoQNewlysignedSaaScontractwasRMB1132mn23YoY7QoQSaaScontractedliabilitieswasRMB2675mn31YoY11QoQConstructionmanagementrevenuewasRMB432mn-19YoY10QoQDigitaldesignrevenuewasRMB60mnaccountingfor3ofrevenueFigure9FY4Q22revenuebreakdownRMBmn4Q201Q212Q213Q214Q211Q222Q223Q224Q22RevenuebreakdownConstructioncosting8966899909691165945115412401434SaaS515549618668726765794837879non-SaaS381140372301439180360403555ConstructionManagement42183235354534107393394432Others10077104100319799356264Total14178491329142320181131164016912130RevenueYoYConstructioncosting-26634303037172823SaaS718071514139282521non-SaaS-3826-101529-33426ConstructionManagement25-14-29127296712-19Others884258972202-10-44-17Total9502745423323196SaaSmetricsNewlysignedcontract6633301040812918478122910621132YoY5010820503845183123Unearnedrevenue150612881708185420471759219424192675YoY6872237373637283031SourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE427Mar2023EarningsrevisionFigure10Earningsrevision2023E2024ERMBmNewOldDiffNewOldDiffSales814079213980092975Grossprofit654064042778074884OPProfit13891248111761154214PBT13601233101751154413Netprofit11951074111581137615EPS072090-20095115-18MarginsGM804808-50bps794805-116bpsOPM171157131bps180166138bpsPBTmargin167156114bps179166126bpsNetmargin147136113bps161148134bpsSourceCompanydataCMBIGMFigure11CMBIvsconsensusforecast20232024RMBmCMBIStreetDiffCMBIStreetDiffSales81408312-2980010034-2Grossprofit65406935-677808343-7OPProfit13891494-717611916-8PBT13601512-1017511944-10Netprofit11951328-1015811725-8EPS0711-350914-34MarginsGM804834-309bps794831-376bpsOPM171180-92bps180191-112bpsPBTmargin167182-148bps179194-150bpsNetmargin147160-129bps161172-106bpsSourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE527Mar2023OperatingmodelFigure12OperatingmodelRMBmn202120222023E2024E2025ERevenues561965918140980011698Costofsales-893-1124-1599-2020-2472GrossProfit47275467654077809225Grossmargin841829804794789RD-1333-1515-1751-2005-2455SGA-2686-2919-3482-4125-4805OperatingIncome7481120138917612087Operatingmargin133170171180178InterestExpense5333334457Non-operatingincomeexpense-52-75-62-54-47ProfitBeforeIncomeTaxes7491078136017512097IncomeTaxExpense-31-66-81-78-95Netprofitloss661967119515811882Netmargin118147147161161EPSRMB056081072095113DPSRMB030040020020020RevenuebreakdownEngineeringcosting38134773588470468322recurringrevenue25613275420652016292non-recurringrevenue12521498167718452030Engineeringconstruction12061326172421552694Others601492533599683GrossmarginbreakdownEngineeringcosting923912907900902Engineeringconstruction658540530520530GrowthYoYRevenues4017242019GrossProfit3316201919OperatingIncome8450242718EPS9946-123219SourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE627Mar2023Figure13QuarterlyoperatingmodelRMBmn1Q212Q213Q214Q211Q222Q223Q224Q221Q23E2Q23E3Q23E4Q23ERevenues84913291423201811311640169121301302202420462768GrossProfit7641171122015729671403135317441021169416342192Operatingincome90244191222145330247397107427330525Netprofit7720918918610928824132883341294478EPSRMB006018016016009024020028007020018029MarginsGrossmargin900881857779855856800819784837798792Operatingmargin10618413511012920114618682211161190Netmargin90157133929617614315463168144173GrowthQoQRevenues-4057742-4445326-3955135GrossProfit-3753429-3845-429-4166-434Operatingincome8171-2216-35127-2561-73299-2359EPS-24173-10-2-41165-1636-75195-1462GrowthYoYRevenues50274542332319615232130GrossProfit43273930272011116212126Operatingincome101035816661352979-26293332EPS38165898441372777-24-16-134SourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE727Mar2023ValuationGlodon002410CHBUYTPRMB8234WemaintainBUYwithnewtargetpriceofRMB8234priorRMB7856basedonunchanged11xFY23EEVsalesin-linewiththree-yearmeanFigure14PeersvaluationMarketSalesEPSCapPriceTPEVsalesxFCFmarginCAGRCAGRCompanyTickerRatingUSmnLCLCFY22EFY23EFY22EFY23EFY21-24EFY21-24EGlodon002410CHBUY11270650082341118813132019MYC909HKHOLD1235506639191614-275naYonyou600588CHHOLD1298625992227856913317naKingdee268HKBUY60471366232879644117naKingsoft688111CHNR2631139200NA44033359212724OfficeAutodeskADSKUSNR4320120114NA1008736291322CoStarCSGPUSNR267866585NA105932220149Mean1341082381621Median1008714131723SourceBloombergCMBIGMestimatesFigure1512MforwardEVsaleschartFigure1612MforwardEVsalesbandxRMBmn201816000016140000141200001210000010800008600006400004200002--Jun-20Jun-21Jun-22Mar-20Mar-21Mar-22Mar-23Dec-20Dec-21Dec-22Sep-20Sep-21Sep-22Jun-20Jun-21Jun-22Mar-21Mar-20Mar-22Mar-23Sep-22Dec-20Sep-21Dec-21Dec-22Sep-20EV65x94x1-yrfwdEVSALESMean123x153x182xMean1SDMean-1SDSourceBloombergCMBIGMSourceBloombergCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE827Mar2023FinancialSummaryINCOMESTATEMENT2020A2021A2022A2023E2024E2025EYE31DecRMBmnRevenue4005561965918140980011698Costofgoodssold4548931124159920202472Grossprofit355047275467654077809225Operatingexpenses314239784347515260197139Sellingexpense125615871690208324602905Adminexpense87910991229139916651899RDexpense108313331515175120052455Others75418781111121Operatingprofit4087481120138917612087Investmentgainloss1000899Interestincome175333334457Interestexpense000000Foreignexchangegainloss012000Otherincomeexpense55177544639Pre-taxprofit4107491078136017512097Incometax293166817895Minorityinterest5158458492119Netprofit330661967119515811882BALANCESHEET2020A2021A2022A2023E2024E2025EYE31DecRMBmnCurrentassets5420512257977585935611604Cashequivalents4797405043446119792110205Accountreceivables4755601120116011171067Inventories267187617387Othercurrentassets121441245245245245Non-currentassets412749465749616265276845PPE99412191478218128373445InvestmentinJVsassos255326342342342342Intangibles166419792598230720171727Othernon-currentassets121414211331133113311331Totalassets95471006811545137461588318448Currentliabilities285836374576558164717487Short-termborrowings304321Accountpayables17402395531436552556273Othercurrentliabilities111512424041121312131213Non-currentliabilities131158168168168168Long-termborrowings000000Othernon-currentliabilities131158168168168168Totalliabilities298937954744575066397656Sharecapital118611891191166816681668Capitalsurplus313531742910291029102910Retainedearnings195724323063378250306578Otherreserves1251007853853853853Totalshareholdersequity6402578863127507875510303Minorityinterest156485489489489489Totalequityandliabilities95471006811545137461588318448PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE927Mar2023CASHFLOW2020A2021A2022A2023E2024E2025EYE31DecRMBmnOperatingProfitbeforetaxation4107491078136017512097Depreciationamortization384313225429485536Taxpaid293166817895Changeinworkingcapital78452524409939211054Others327452850000Netcashfromoperations187616011648270130783591InvestingCapitalexpenditure439720850842850853Acquisitionofsubsidiariesinvestments239036000Netproceedsfromdisposalofshort-term1993195000investmentsOthers011016000Netcashfrominvesting6971541964842850853FinancingDividendpaid157354410477334334Netborrowings108830111Proceedsfromshareissues304063629547700Others39510742968492119Netcashfromfinancing140079541285426454NetchangeincashCashatthebeginningoftheyear223147974050434461197921Exchangedifference141323000Cashattheendoftheyear4797405043446119792110205GROWTH2020A2021A2022A2023E2024E2025EYE31DecRevenue131403173235204194Grossprofit120331157196190186Operatingprofit206835496240268185Netprofit4051001463236323190PROFITABILITY2020A2021A2022A2023E2024E2025EYE31DecGrossprofitmargin887841829804794789Operatingmargin102133170171180178ReturnonequityROE68108160173194198GEARINGLIQUIDITYACTIVITIES2020A2021A2022A2023E2024E2025EYE31DecNetdebttoequityx070707080910Currentratiox191413141415Receivableturnoverdays486336465511424341Inventoryturnoverdays223244332525Payableturnoverdays15861556294195719571957VALUATION2020A2021A2022A2023E2024E2025EYE31DecPE20891220626907686576PB11114197144124105Divyield040408030303EV726463733906730995713244695215672367EVSales181131111887157SourceCompanydataCMBIGMestimatesNoteThecalculationofnetcashincludesfinancialassetsPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1027Mar2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBISwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE11