研究报告全文：SELLMNMaintain27Mar2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateYonyou600588CHConcernonthehigherRDcapitalizationSELLDownTargetPriceRMB1956YonyoureportedFY4Q22revenueofRMB367bn-8YoYandnetprofitofPreviousTPRMB2227RMB759mn31YoYmissedourconsensusestimatesby1317UpDownside248respectivelyTheweaknesswasduetoCOVID-19resurgenceandGPMCurrentPriceRMB2599erosiongivenhigherstaffcostandoutsourcingexpensesForcloudsegmentrevenueshowednoYoYgrowthalthoughARRwasup238YoYARRChinaSoftwareITServicescontributiontocloudrevenuewasstableat32vs58forKingdeewhichMarleyNGANsuggestedmajorityofYonyouscloudrevenueisnotrecurringWearealso85239163719concernedwiththeincreasingRDcapitalizationratetorecord-highof48marleyngancmbicomhkDeterioratingearningsqualitycouldresultinsharepricede-ratingDowngradefromHOLDtoSELLBowenLI85237618957FY4Q22missedwithnogrowthincloudrevenueYonyoureportedlibowencmbicomhkweakFY4Q22resultswithrevenueofRMB367bn-8YoYandnetprofitofRMB759mn31YoYbothmissingourandconsensusStockDataestimatesCloudservicerevenueshowednogrowthatRMB281bnMktCapRMBmn892342accountingfor77ofrevenuewhileSoftwarebusinesscontinuedtoAvg3mthstoRMBmn9621shrink-29YoYOperatingprofitwasRMB750mn-19YoYand52wHighLowRMB28221673TotalIssuedSharesmn34334loweropexratioat391-36pctswasoffsetbythedeclineinGPM-SourceFactSet63pctsYoYto595YonyouattributedtheGPMerosiontohigherstaffcostnoofemployee21YoYin4Q22andoutsourcingShareholdingStructureexpensesMrWang-Chairman389HKSCC77CustomermixhaslimitedtheARRandcloudrevenuevisibilitySourceCompanydataAlthoughARRgrowthremainedsteady238YoYtoRMB204bnARRaccountedforonly32ofcloudrevenuesimilartothe31inSharePerformanceFY21ThisimpliedmajorityofYonyouscloudrevenueisnotchargedonAbsoluteRelative1-mth127136subscriptionbasisandisnotrecurringinnatureThiscouldbeexplained3-mth15098withYonyouscustomermixthatskewedtowardslarge-sizedenterprises6-mth44037969ofFY22cloudservicerevenueThecustomizationdemandfromSourceFactSetlarge-sizedenterpriseswilllimittheARRanditscloudrevenuevisibility12-mthPricePerformanceRDcapitalizationratehitrecord-highof48InFY22YonyouincreasedRDexpenditureby24YoYtoRMB293bnastheCompanycontinuestodevelopcloud-nativeproductsRDcapitalizationraterosetorecord-highof48vs36inFY21vsKingdees33inFY22AssumingallRDarebeingexpensedYonyousufferedfromnetlossofRMB118bninFY22significantlywidenedfromnetlossofRMB137mninFY21WeareconcernedwiththedeterioratingearningsqualitySourceFactSetDowngradefromHOLDtoSELLWecutFY23-24Enetprofitby7-9KingdeevsYonyouvaluationtoreflectlowercloudrevenuegrowthandGPMDowngradetoSELLwithnewtargetpriceofRMB1956priorRMB2227basedonunchanged1-yrfwdEVsales3060xFY23EEVsales25EarningsSummary20YE31DecFY21AFY22AFY23EFY24EFY25E1510RevenueRMBmn893292621069212195135255YoYgrowth48371541411090Mar-20Oct-20May-21Dec-21Jul-22Feb-23NetprofitRMBmn70782192509261116949Yonyou600588CHKingdee268HKEPSReportedRMBcents2164638148317802024YoYgrowth2847051323200137RelatedReportsConsensusEPSRMB022006025037na1ChinaSoftwareandITServices-ImplicationsofHuaweiMetaERPPEx16423659175314601284linkEVSalesx9993817163Yield06040205062Yonyou600588CH-Distressedmarginwithnon-standardizedROE9724445258cloud01Feb2023linkNetgearing204337344360382SourceCompanydataBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk27Mar2023FocusChartsFigure1RevenueandgrowthQuarterlyFigure2RevenuemixQuarterlyRmbmn10045002090400080157035001060300050250054020000301500-520100010-1050001Q193Q191Q203Q201Q213Q211Q223Q220-151Q193Q191Q203Q201Q213Q211Q223Q22FinancialServiceBusinessCloudServiceBusinessRevenueYoYSoftwareBusinessSourceCompanydataCMBIGMestimatesSourceCompanydataCMBIGMestimatesFigure3CloudservicerevenuemixFY22Figure4RDcapitalizationrateyearlyRMBmnGovtpublic350060sectorclientsSmallmicro12300050businesses25009402000Mid-sized30enterprises15001020Large-sized1000enterprises106950000201220142016201820202022RDexpensedRDcapitalizedCapitalizationrateSourceCompanydataCMBIGMestimatesSourceCompanydataCMBIGMestimatesFigure5AdjustednetprofitlossFigure6ARRasofcloudservicerevenueFY22RMBmn1500ARR311000500020122013201420152016201720182019202020212022Non-recurring5006910001500NetprofitAdjnetprofitassumingallRDexpensedSourceCompanydataSourceCompanydataPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE227Mar2023FY4Q22resultsreviewRevenuewasRMB3666mn-8YoY78QoQbelowourestimateby13andconsensusby17oCloudrevenuewasRMB2807mn0YoY125QoQaccountingfor77ofrevenueoSoftwarerevenuewasRMB840mn-29YoY6QoQGrossprofitwasRMB2183mn-17YoY112QoQbelowourestimateby18andconsensusby24Grossmarginwas595-63pctptsYoY96pctptsQoQmissingourestimateby35pctptsandconsensusby48pctptsOperatingprofitwasRMB750mn-19YoY305QoQmissingourestimateby14andconsensusby11Operatingmarginwas205-27pctptsYoY383pctptsQoQmissingourestimateby03pctptsbutaboveconsensusby15pctptsNetprofitwasRMB759mn31YoY367QoQin-linewithourestimatebutbelowconsensusby5EPSwasRMB02224YoY367QoQFigure7FY4Q22resultsreviewDec-21Sep-22Dec-22Dec-22Dec-224Q213Q224Q224Q22versus4Q22versusRMBmnactualactualactualYoYQoQCMBICMBIconsensusconsensusRevenue399920593666-8784222-134438-17Grossprofit263410282183-171122660-182855-24Grossmargin659499595-63pctpts96pctpts630-35pctpts643-48pctptsOperatingprofitadjusted926-366750-19305876-14843-11Operatingmarginadjusted232-178205-27pctpts383pctpts208-03pctpts19015pctptsNetnon-op-18981969-38PBT737-28584615397885-48055Tax-87-1-19-84-9Minorities-692-69-44Netincome581-284759313677570796-5EPSRMB018-0080222436702200218SourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE327Mar2023Figure8RevenuebreakdownRMBmn1Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q22Software564102379716605429036921183522690795840CloudService219532630204251699010202794748155112472807FinancialService2932942291891567044229171619Total108918621669390512141963175639991279225820593666YoYSoftware-33-27-20-15-4-12-13-29-4-2415-29CloudService7454103721368662374557220FinancialService8-1-40-45-47-76-81-89-94-76-63-11Total-13-10-2121155251517-8RevenuemixSoftware525548424546393041313923CloudService202938524250587058696177FinancialService2716145134211111CloudservicemetricsCloudServicecontractliab109112291243130415801715176019701920-Subscriptioncontractliab473492na702847961103010801320YoY7996na5456SourceCompanydataPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE427Mar2023EarningsrevisionFigure9Earningsrevision2023E2024ERMBmnNewOldDiffNewOldDiffSales1069212083-121219514267-15Grossprofit61607084-1370348341-16OPProfit385471-18518585-11PBT599659-9719770-7Netprofit509560-9611655-7EPS015016-9018019-7MarginsGM576586-101bps577585-78bpsOPM3639-30bps424115bpsPBTmargin565515bps595450bpsNetmargin484613bps504642bpsSourceCompanydataCMBIGMestimatesFigure10CMBIvsConsensusestimates2023E2024ERMBmnCMBIStreetDiffCMBIStreetDiffSales1069212718-161219515690-22Grossprofit61607635-1970349509-26OPProfit385986-615181466-65PBT599975-397191523-53Netprofit509856-416111346-55EPS015025-40018037-51MarginsGM576600-242bps577606-293bpsOPM3678-415bps4293-510bpsPBTmargin5677-206bps5997-381bpsNetmargin4867-197bps5086-357bpsSourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE527Mar2023OperatingmodelFigure11RevenuebreakdownRMBmn2020202120222023E2024E2025ERevenues852589329262106921219513525Costofsales332134614041453251615716GrossProfit520454715221616070347808Grossmargin610612564576577577RD145917041754190423492624SGA249630993353374940364410OperatingIncome10935558385518631Operatingmargin1286201364247Non-OperatingIncome33219239214201187ProfitBeforeTax1126774247599719818Incometaxexpensegain759222607282Minorities63256303641NetIncometoShareholders989708219509611695Netmargin1167924485051EPSRMB030022006015018020DPSRMB020020010006014017SourceCompanydataCMBIGMFigure12OperatingmodelRMBmn2020202120222023E2024E2025ERevenuebreakdownSoftwareBusiness404433202848254224152277CloudServiceBusiness3422532163538151978111248FinancialServiceBusiness100527661---Others54140---Total852589329262106921219513525RevenueYoYSoftwareBusiness-22-18-14-11-5-6CloudServiceBusiness745519282015FinancialServiceBusiness-22-73-78-10000Blended054151411RevenuemixSoftwareBusiness473731242017CloudServiceBusiness406069768083FinancialServiceBusiness1231000SourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE627Mar2023Figure13QuarterlyoperatingmodelRMBmn1Q222Q223Q224Q221Q23E2Q23E3Q23E4Q23ERevenues12141963175639991279225820593666GrossProfit572124410202634628138310282183Operatingprofit-31467-124926-46589-366750Netprofitloss-13228-88581-393137-284759EPSRMB-000007-003018-012004-008022MarginsGrossmargin4763586649615060Operatingmargin-263-723-364-1820Netmargin-112-515-316-1421GrowthQoQRevenues-6962-11128-6876-978GrossProfit-79118-18158-76120-26112Operatingprofit-127-121-287-846-150-119-510-305Netprofitloss-101-1858-139-759-168-135-306-367GrowthYoYRevenues1155251517-8GrossProfit13159-210111-17Operatingprofitna-72na-22na34na-19Netprofitlossna-14na-42na-43na24SourceCompanydataCMBIGMPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE727Mar2023ValuationYonyou600588CHSELLTPRMB1956WedowngradeYonyoufromHOLDtoSELLwithnewtargetpriceofRMB1956priorRMB2227Ourtargetpriceisderivedfromunchanged60xFY23EEVsales1-SDbelowthree-yearmeanWebelievethecustomizationdemandforlarge-sizedenterpriseswillcontinuetoweighonmarginWeareconcernedwiththemarginerosionanddeterioratingearningsqualityasRDcapitalizationratesurgedFigure14YonyoupeersvaluationcomparisonMarketPriceTPEVsalesxFCFmarginSalesEPSCapCAGRCAGRCompanyTickerRatingUSmnLCLCFY22EFY23EFY22EFY23EFY21-24EFY21-24EYonyou600588CHSELL129882599195693814611naKingdee268HKBUY60471366232879641417naKingsoftOffice688111CHNR2631439200NA44033327392827SAPSAPUSNR15201512374NA484516168naIntuitINTUUSNR12133443249NA1009029291827XeroXROAUNR87768770NA132101-712585WorkdayWDAYUSNR4870218804NA8974262019naServiceNowNOWUSNR8941544047NA12199293022114SalesforceCRMUSNR18744018744NA726119191817Mean13010416181948Median897419191827SourceBloombergCMBIGMestimatesFigure15Yonyou12MforwardEVsaleschartFigure16Yonyou12MforwardEVsalesbandxRMBmn25300000202500002000001515000010100000550000--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-20EV48x85x1-yrfwdEVSALESMean122x159x196xMean1SDMean-1SDSourceBloombergCMBIGMestimatesSourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE827Mar2023FinancialSummaryINCOMESTATEMENT2020A2021A2022A2023E2024E2025EYE31DecRMBmnRevenue852589329262106921219513525Costofgoodssold332134614041453251615716Grossprofit520454715221616070347808Operatingexpenses411149165213577665167177Sellingexpense153720272235248427352927Adminexpense95910721117126513001483RDexpense145917041754190423492624Others156113106123132143Operatingprofit10935558385518631Interestexpense1107912242627Otherincomeexpense143298227190176160Pre-taxprofit1126774247599719818Incometax759222607282Aftertaxprofit1051682225539647736Minorityinterest63256303641Netprofit989708219509611695BALANCESHEET2020A2021A2022A2023E2024E2025EYE31DecRMBmnCurrentassets8773768212387123411338014564Cashequivalents560546168304854288299139Restrictedcash168015722634226928063338Accountreceivables423407531583657774Othercurrentassets1065108891894810881314Non-currentassets8177964711168117091185811831PPE250725292531247824332396Intangibles78518622838394448325716Othernon-currentassets488552565799528745933720Totalassets169501732923555240512523826395Currentliabilities79508325957498671092611964Short-termborrowings242028023611376438283826Accountpayables5496548327899361073Othercurrentliabilities224022192569268031333622Accruedexpenses274126492563263430283443Non-currentliabilities45310781463136313591357Long-termborrowings0390826726722720Othernon-currentliabilities453688637637637637Totalliabilities8403940311037112291228513321Sharecapital327032713434343434343434Capitalsurplus10968925852585258525852Retainedearnings341834893369367238053925Otherreserves2426641193119311931193Totalshareholdersequity7543698711461117641189712017Minorityinterest10049391057105710571057Totalequityandliabilities169501732923555240512523826395PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE927Mar2023CASHFLOW2020A2021A2022A2023E2024E2025EYE31DecRMBmnOperatingProfitbeforetaxation1126774247599719818Depreciationamortization357473579609789966Taxpaid759222607282Changeinworkingcapital605146819422244166Others4002301000Netcashfromoperations16131304286157016811868InvestingCapitalexpenditure59210301557166116331812Others183921979512694873Netcashfrominvesting894123038531149938939FinancingDividendpaid651654344206479574Netborrowings1950702107753604Others34611086508303641Netcashfromfinancing225610607241183455619NetchangeincashCashatthebeginningoftheyear714756054616830485428829Exchangedifference6214000Cashattheendoftheyear560546168304854288299139GROWTH2020A2021A2022A2023E2024E2025EYE31DecRevenue024837154141109Grossprofit655146180142110Operatingprofit36449298646966346218Netprofit1642846901323200137PROFITABILITY2020A2021A2022A2023E2024E2025EYE31DecGrossprofitmargin610612564576577577Operatingmargin1286201364247ReturnonequityROE1349724445258GEARINGLIQUIDITYACTIVITIES2020A2021A2022A2023E2024E2025EYE31DecNetdebttoequityx040203030404Currentratiox110913131212Receivableturnoverdays769664829837759829Inventoryturnoverdays96170185190185193Payableturnoverdays603690751269280290VALUATION2020A2021A2022A2023E2024E2025EYE31DecPE128616423659175314601284PB14914764706968Divyield050604020506EV870540887493864242862397860120856984EVSales1029993817163SourceCompanydataCMBIGMestimatesNoteThecalculationofnetcashincludesfinancialassetsPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1027Mar2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBISwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE11