研究报告全文：MN21Aug2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateAtourLifestyleATATUSRemaincautiouslyoptimisticafterasolid2Q232Q23resultwasabeatandFY23EguidancewasraisedWiththetrackingtrendTargetPriceUS2391in3Q23EwearestilloptimisticabouthospitalitysectorandexpectAtourtoPreviousTPUS2183outperformdrivenbyitsattractivepricerangeandleadingcustomerUpDownside187satisfactionHoweverweshouldstaycautiousaboutmacrorisksandinvestorsCurrentPriceUS2015shouldexitifitcontinuestodeteriorateChinaConsumerDiscretionary2Q23resultbeatsexpectationIn2Q23Atourssalesincreasedby112YoYtoUS11bn8aboveCMBIBBGestandnetprofitrocketedbyWalterWOO289beatingCMBIBBGestby2219mainlydueto1stronger-85237618776walterwoocmbicomhkthan-expectedRevPARrecoveryrateandtheassociatedoperatingleverageand2robustretailbusinesssalesanditsGPmarginexpansionsRaphaelTSETheCompanyalsoproposedaDPSofaboutUS005oraboutUS21mn85239000856asawholerepresentinganpayoutratioofaround9raphaeltsecmbicomhkFY23EguidanceraisedasRevPARrecoveryrateimprovedto122inJul2023RevPARin2Q23wasatRMB384consistedofanADRofRMBStockDataMktCapUSmn76892475andOCCof77TheRevPARrecoveryratevs2019wasat115Avg3mthstoUSmn69declinedslightlyfrom118in1Q23whichwassupportedmostlybyADR52wHighLowUSNANArecoveryrateat110thantheOCC3ppthigherthanthe2Q19levelByTotalIssuedSharesmn3816monthsRevPARrecoveryratewereat120108117inAprMaySourceFactSetJun2023Accordingtomanagementithasimprovedto122ADRShareholdingStructurereachedRMB500andOCsurgedupto84andthetrendsofarinAugMrHaijunWang3102023isstillfairlyresilientMoreovertheCompanyhadraiseditsFY23ELegendCapital247RevPARrecoveryrateguidanceto113-117from110-115whichSourceBloomberginourviewiseffectivelyimplyinga112105for3Q23E4Q23EAsaSharePerformanceresulttheCompanyisnowaimingfor72-76salesgrowthinFY23EAbsoluteRelativefrom60-64andwethinkthecaseissimilarfortheprofitsHencewe1-mth5973arenowrevisingupouradjEBITDAadjnetprofitestimatestoaboutRMB3-mth107761138mnRMB778mninFY23E6-mth-153-170RetailbusinessgrowthwasboomingwithgreatmarginsFor2Q23SourceFactSetretailbusinesssaleswasataroundRMB247mnrepresentinga222YoY12-mthPricePerformanceincreaseWebelievethiswasmainlydueto1riseinpopularityofitspillowandduvetproductsnewlyintroducedinMar2023and2robustsalesonhigherGPmargine-commercechannelGPmarginat5030foronlineofflineespduringtheentire618festivalManagementalsoraiseditsguidanceforretailbusinesssalestoaboutRMB650mn-700mnandexpectingGPmargintofurtherimprovewithe-commercesalesmixMaintainBUYandraiseTPtoUS2391WeraisedFY23E24E25EnetSourceFactSetprofitby10106inordertofactorinthebetter-than-expectedRevPARgrowthoperatingleverageandretailbusinessOurnewTPisRecentreportsbasedon35xFY23EPEunchangedabout13premiumoveritspeersAtourLifestyleATATUSInitiationaverageof31xwellsupportedbyitsfasterthanpeerssalesandEBITDATop-ratedfast-growingwiththerightgrowthItistradingat30xFY23EPEand16xEVEBITDAnotdemandingstrategy27Jun23inourviewEarningsSummaryYE31DecFY21AFY22AFY23EFY24EFY25ERevenueRMBmn21482263392451256503YoYgrowth37154734306269EBITDARMBmn29926197114251935NetprofitRMBmn139796161781002013952EPSReportedRMB0450774727651066YoYgrowth8327185117622392PExna1804295182131EVEBITDAx157163916410469Yieldna00000101ROE247110422458427SourceCompanydataBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk21Aug2023HotelopeningtargetunchangedbutthepotentialisgrowingbiggerespforAtourlightAtourhasopened3666newhotelsin1Q232Q23implyinga24YoYincreasein1H23whichisontracktoachievetheunchangedtargetof280newhotelsinFY23EAtoursigned94180newcontractsin1Q232Q23andhotelsunderdevelopmentsurgedby52YoYto523in1H23Webelievethedemandin2H23EcouldstillbehugeAdditionallytheAtourLight30versionwaslaunchedinFeb2023andwashighlysuccessfulThankstoitshighlyaffordablepricerangeofRMB300to400anditstrendystyleandyouthfulvibe3hotelsoutof4hadrecordedfullbookingjustoneweekaftertheiropeningsAndforthefranchiseethereturnisattractiveenoughtoosupportedbylowcapexperroomatRMB105Kandshortpaybackperiodaround3to4yearsHencewhilemanagementreiteratedthemid-targetof250-300forAtourLightbyFY25Etheyhavebecomeevenmoreoptimisticonitspotentialinthelongrunmayexceed1000storesbyFY30EEarningsrevisionFigure1EarningsrevisionNewOldDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue392451256503368147366017668281Grossprofit1599218028701468194926248911994EBIT88613341857804121417501029961Netprofitatt61599913915629101314969759DilutedEPSRMB47187658106704307698010073969759Grossmargin40842544139941143609ppt14ppt05pptEBITmargin22626028621825629107ppt04ppt-05pptNetprofitattmargin15719521415319221804ppt03ppt-04pptSourceCompanydataCMBIGMestimatesFigure2CMBIGMestimatesvsconsensusCMBIGMConsensusDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue392451256503383949616210223347Grossprofit159921802870156121172757243041EBIT88613341857826130116657325115Netprofitatt615999139155510091312110-1061DilutedEPSRMB471876581067043626471788382183354Grossmargin40842544140742744401ppt-01ppt-03pptEBITmargin22626028621526226811ppt-02ppt17pptNetprofitattmargin15719521414420321112ppt-08ppt03pptSourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE221Aug2023FocusChartsandTablesFigure3SalesandnetprofitattyearlyFigure4GPEBITDANPattmarginyearly7000000RMBK50044140842560000004005000000302278298400000030024826324730000002162000000200139116103115214100000019510015706800412743FY19AFY20AFY21AFY22AFY23EFY24EFY25ESalesNetincomeattGPmarginEBITDAmarginNPattmarginSourceCompanydataCMBIGMestimatesSourceCompanydataCMBIGMestimatesFigure5NumberofnewhotelsandinthepipelineFigure6RevPARandrecoveryratevs2019800YearlyUnder-5000140netaddsdevelop118700115ments400010512010060052392868930008484100500797275400343200070802693001000516018720000401004Q22-3Q223Q20A2Q23E1Q20A2Q20A4Q20A1Q21A2Q21A3Q21A4Q21A1Q22A2Q22A1Q23ARevPARRMBRecoveryratevs2019SourceCompanydataCMBIGMestimatesSourceCompanydataCMBIGMestimatesFigure7OverallRevPARbycompanyFigure8RevPARrecoveryratebycompanyRMB1151214501221303841201040013-1710-15109120highervs334highervshighervs350110201910920191151011102019100of3002511002019250205101902001601741621631001508010070905060AtourHWorldJJHotelBTGHotelAtourHWorldJJHotelBTGHotel1Q23Actual2Q23Actual2Q192Q23Recoveryratevs2019FY23EMgtGuidanceSourceCompanydataCMBIGMestimatesSourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE321Aug2023ResultsreviewFigure9ResultsreviewQuarterlyActual1Q232Q233Q234Q232Q23EQuarterly3Q224Q221Q232Q233Q23E4Q23EvsYoYYoYEYoYEYoYCMBIRMBmnCMBIRevenue6706267741093116689271112744210088Hoteloperating-389-356-382-510-603-472-490costsOtheroperating-45-68-72-121-90-77-111costsGrossprofit2362023214624733432302131007040714GPmargins352323414423406385403Otherincome0000000DIV0gainsSellingmarketing-30-54-56-94-64-53136197111-2-6938expensesSellingmarketingexp-45-86-72-86-55-59-68salesGeneraladmin-46-217-193-73-87-853247592-61-714expensesGeneraladmin-68-347-250-67-75-95-70expsalesTechnologydevelopment-16-16-17-18-33-27-6129869-25-29expensesTechdevelopmentexp-25-25-22-16-28-30-25salesPre-openingother57730171130opexOperatingprofit148-7862307306190375274106-34227313EBITOPmargins222-12580281263213270Investmentgain2465-4-32lossNetfinanceincome233632445Netfinance04050405030204incomesalesProfitafterfinancing152-7171318306189279costsAssociatedcoms0000000Jointlycontrolled0000000comsPre-taxprofit152-7171318306189367279101-36627914Tax-41-12-53-79-83-51-84Taxsales-62-19-68-72-71-57-83Effectivetaxrate-271165-744-248-270-270-300Minorityinterests-0-001110139Netprofitatt111-8218238222137128289100-26619522NPmargins166-13123218191154193SourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE421Aug2023Figure10ResultsreviewYearlyYearlyFY22FY23FY24FY22FY23EFY24EUSmnyoyEyoyEyoyRevenue22633924512557331Hoteloperating-1393-1966-2373costsOtheroperating-187-359-571costsGrossprofit683159921802113436GPmargins302408425Otherincome000gainsSellingmarketing-140-268-27913914expensesSellingmarketingexp-62-68-54salesGeneraladmin-350-439-528782520expensesGeneraladmin-155-112-103expsalesTechnologydevelopment-66-94-123274231expensesTechdevelopmentexp-29-24-24salesPre-openingother386651opexOperatingprofit1658641301-1642451EBITOPmargins73220254Investmentgain8410lossNetfinanceincome81425Netfinance040405incomesalesProfitafterfinancing1818831337costsAssociatedcoms000Jointlycontrolled000comsPre-taxprofit1818831337-1138951Tax-84-265-334Taxsales-37-67-65Effectivetaxrate-468-300-250Minorityinterests-234Netprofitatt98615999-3252762NPmargins43157195SourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE521Aug2023ValuationFigure11Peersvaluationtable3yrsYTD12mUpPBROEYieldPriceMktCapYearPExPEGperfTPDown-xxCompanyTickerRatingLCLCsideHKmnEndFY1EFY2EFY2EFY0FY1EFY1EFY1EGreaterChinaHotelsAtourLifestyleATATUSNR239220151920690Dec-222951821251100203118HWorldGroupHTHTUSNRna4392na109613Dec-223122639719010435SHJinjiangIntl600754CHNRna4523na46762Dec-2233122427220214225BtgHotelsGroup600258CHNRna1934na23273Dec-2228019719250105220SsawHotels301073CHNRna3402na7115Dec-2251533257410510272GreentreeGHGUSNRna572na4577Dec-221349522na0121542Avg3112155826010804Med3032104222010792InternationalHotelsHKSHHotels45HKNRna635na10474Dec-22nanana14nana218Shangri-LaAsia69HKNRna539na19326Dec-2226517206290106158MandarinOrientalMANDSPNRna171na16924Dec-22nanana31nana109BanyanTreeBTHSPNRna042na2079Dec-22319231070302na297MarriottIntlMARUSNRna20209na471996Dec-22236214nana1709357HiltonWorldwideHLTUSNRna15080na308833Dec-22251220nana1304193HyattHotelsHUSNRna11271na92533Dec-224343223312315904246WyndhamHotelsWHUSNRna7425na48993Dec-2218817377298291941ChoiceHotelsCHHUSNRna13116na51745Dec-2222019790912563908164IntercontinentalIHGLNNRna582800na97396Dec-22210188nana0721228AccorSaACFPNRna3260na73530Dec-22189167161281431411Avg2572091752173113132Med23619725631409193SourceBloombergCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE621Aug2023Figure12ValuationForwardblended12monthsPEband400US3503002502001501005000Nov-22Jan-23Mar-23May-23Jul-23156x211x266x321x376xLastpriceSourceBloombergCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE721Aug2023AssumptionsFigure13CMBIGMassumptionsMajorassumptionsFY20AFY21AFY22AFY23EFY24EFY25ESalesbysegmentRMBmnManachisedhotels92612201361228230233969Leasedhotels496630553929968999Retailandothers14429734971311331535Total156721482263392451256503SalesgrowthbysegmentManachisedhotels103212683231Leasedhotels-1927-126843Retailandothers29107181045935Total0375733127NumberofhotelsbysegmentManachisedhotels537712899116815221971Leasedhotels333333333333Total570745932120115552004NumberofhotelsgrowthManachisedhotels373326303030Leasedhotels1400000Total363125292929OccupancyManachisedhotels676763798080Leasedhotels697166838383Total676863798080RoomratesRMBManachisedhotels382407386448457469Leasedhotels468517465605629648Total390415391454462473RevPARRMBManachisedhotels269288256373386394Leasedhotels339388331530552568Total275295261379390398SalesperstoregrowthManachisedhotels-147-114632Leasedhotels-2714-156043Total-177-124532GPmargins216263302408425441SellingMarketingexpenses-45-58-62-68-54-53GAexpenses-84-92-155-112-103-96Tecanddevexpenses-21-24-29-24-24-24Otherexpenses-250217171010Effectivetaxrate-50-31-47-30-25-25NPattmargin374161921NPattgrowth-35245-325276239SourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE821Aug2023FinancialSummaryINCOMESTATEMENT2020A2021A2022A2023E2024E2025EYE31DecRMBmnRevenue156721482263392451256503Costofgoodssold122915831580232529443633Grossprofit338565683159921802870Operatingexpenses2983915568019301126Sellingexpense71124140268279347Adminexpense46103261337415509RDexpense34526694123156Staffcosts000000Otherrentalrelatedexpenses000000Others14711289102113113Operatingprofit6420317988613331855Otherincome232238665165Othergainslosses1111436EBITDA16129926197114251935EBIT7519716686113041815Interestincome1714223246Pre-taxprofit7520418188313361860Incometax386484265334465Aftertaxprofit42145986159981390Minorityinterest452346Netprofit381409661810021395Adjustednetprofit111302617859981390BALANCESHEET2020A2021A2022A2023E2024E2025EYE31DecRMBmnCurrentassets117014162125307743225922Cashequivalents82510391589234634364859Restrictedcash000000Accountreceivables140100133202263334Inventories30595785108133Prepayment126167134232303385Othercurrentassets4952211211211211Non-currentassets8168292637259425532525PPE467439360318277249Right-of-useassets001932193219321932Intangibles346555Othernon-currentassets345386340340340340Totalassets198622454762567168768448Currentliabilities89810511348166019032179Short-termborrowings8965143143143143Accountpayables46460951582710711347Taxpayable624631313131Othercurrentliabilities283332339339339339Leaseliabilities00320320320320Non-currentliabilities5216292227223022342239Long-termborrowings31442222Othernon-currentliabilities4905862225222822322237Totalliabilities142016813575389041374419Retainedearnings00055414522702Otherreserves5665651187118711871187Totalshareholdersequity5665651187174126393890Minorityinterest000000Totalequityandliabilities198622454762563167768309PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE921Aug2023CASHFLOW2020A2021A2022A2023E2024E2025EYE31DecRMBmnOperatingProfitbeforetaxation7520418188313361860Depreciationamortization869581888975Taxpaid401515265334465Changeinworkingcapital25109681178899Others5725106223246Netcashfromoperations11941828484512101615InvestingCapitalexpenditure1136436597285Acquisitionofsubsidiariesinvestments239153000Others16133000Netcashfrominvesting10642192597285FinancingDividendpaid02102141100Netborrowings491265000Proceedsfromshareissues00400000Sharerepurchases01110000Others1178777Netcashfromfinancing481614562848107NetchangeincashCashatthebeginningoftheyear7638251039158923463436Exchangedifference013000Others6121554875710901423Cashattheendoftheyear82510391589234634364859GROWTH2020A2021A2022A2023E2024E2025EYE31DecRevenue0037154734306269Grossprofit1306722101342363316Operatingprofit30221701153939505391EBITDA1178551272717468358EBIT30916391584183515391Netprofit37826933125430622392Adjnetprofitnana10112003272392PROFITABILITY2020A2021A2022A2023E2024E2025EYE31DecGrossprofitmargin216263302408425441Operatingmargin419479226260285EBITDAmargin103139115247278298Adjnetprofitmargin0761115200195214ReturnonequityROE69247110422458427GEARINGLIQUIDITYACTIVITIES2020A2021A2022A2023E2024E2025EYE31DecNetdebttoequityx121612131212Currentratiox131316192327Receivableturnoverdays257204188188188188Inventoryturnoverdays67103134134134134Payableturnoverdays248285400400400400VALUATION2020A2021A2022A2023E2024E2025EYE31DecPEnana1804295182131PEdilutednana1804295182131PBnana1191087048PCFPSnana485227158119Divyieldnana00000101EV240755225846479002181418181418181418EVSales154105212463528EVEBIT322211452884211139100EVEBITDA1358157163916410469SourceCompanydataCMBIGMestimatesNoteThecalculationofnetcashincludesfinancialassetsPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1021Aug2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMoritsaffiliateshaveinvestmentbankingrelationshipwiththeissuerscoveredinthisreportinpreceding12monthsCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBISwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE11