研究报告全文：MN23Aug2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateVesync2148HKAnall-roundedbeatandabullishoutlookTargetPriceHK6711H23resultwasfarmorethangoodwithindustryleadingsalesandnetprofitPreviousTPHK470growthplusadeclininginventoryAndwedothinktheturnaroundisnotjustUpDownside986herebutsolidWithsuchanundemandingvaluationof7xFY23EPEbackedCurrentPriceHK338bya20salesCAGRduringFY22-25EwemaintainBUYChinaConsumerDiscretionary1H23resultbeatexpectationsVesyncssalesgrewby24YoYtoUS277mninlineCMBIestanditsnetprofitsurgedby111YoYtoUS33mnWalterWOObeatingCMBIestby15andreachingthehigh-endofitspre-announced85237618776walterwoocmbicomhkprofitalertaround70to120in1H23Webelievethespeedysalesgrowthwasdrivenby1strongperformanceofitsnewproductsegTowerRaphaelTSEshapeandmegasizedaurpurifierhumidifierpressurecookerandrice85239000856cooker2rapidofflineEUandJapanexpansionsand3resumptionofraphaeltsecmbicomhkgrowthfromtheEtekcityAndthejumpinNPmarginto12farbetterthancompanysguidanceof10wasamixtureof1decentGPmarginStockDataexpansionthrubettertransportationrawmaterialcostsASPhikeandmoreMktCapHKmn39380Avg3mthstoHKmn14valueengineeringetc2better-than-expectedgovernmentgrantsand52wHighLowHK536209effectivetaxratebut3higher-than-expectedopexincludingAPTotalIssuedSharesmn11651expensesandprofessionalfeesassociatedwiththeproductsrecallSourceFactSetTherobustFY23EguidancewasreiteratedbutwecontinuetostayShareholdingStructuremoreconservativeManagementhadmaintaineditsFY23EguidanceMsYangLinMrRyanXu36220salesgrowthand10NPmarginandinfacttheyareforeseeingMrYangYuzheng327SourceHKExpotentiallyfastergrowthin2H23EandeveninFY24Ethanksto1prosperousnewproductspipelineegnewgenerationairpurifierandAirSharePerformancefryermoresmartproductsaswellasnewcategoriessuchasthepetcareAbsoluteRelativeproducts2moreupgradesofitsAPPandadditionofnewsmartfunctions1-mth-20503-mth181263furtherexpansionsinothercountriesinEUandJapanand4morecross6-mth-232-118sellingofproductsandbrandstoretailersintheofflinechannelMarginwiseSourceFactSetwealsobelievetheGPmarginandevenNPmargincanfurtherexpandas12-mthPricePerformance1cheapershippingcoststokickin2CNYdepreciationcontinues3morevalueengineeringareplacedtorefinetheproductmarginsSincewearemorecautiousaboutthepotentialresumptionofimporttariffsweareforecastingadeclineinGPmarginandjustamildNPmarginincreaseinFY24EvsFY23EMaintainBUYandraiseTPtoHK671afterthesignificantjumponearningsWeraiseourFY23E24E25Enetprofitforecastsby4339SourceFactSet37tofactorin1boostfromthosesuccessfulnewproducts2better-than-expectedGPmarginand3highergovernmentgrantsandbettertaxRecentreportsrateConsideringtherobustgrowth17salesand28netprofitCAGRJSGlobalLifestyle1691HK1Q23resultsbeatandgradualrecoveryisduringFY21-25Eitscurrentvaluationof7xisextremelyattractiveOurTPlikelyisbasedon14xFY23EPEunchangedvs3yearsaverageof12x11May23EarningsSummaryVesync2148HKNoFY23EguidanceYE31DecFY21AFY22AFY23EFY24EFY25Ebuttherisk-rewardisthereRevenueUSmn45449060372783926Apr23YoYgrowth30280229207154HaierSmartHome6690HKA4Q22OperatingprofitUSmn512176102129missandaprudentFY23EguidanceNetprofitUSmn41616372089211183Apr23EPSReportedUScents363140619766960YoYgrowth253nana238253PEx119309705745PBx16181512092Yield1000000000ROE14555230226226SourceCompanydataBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk23Aug2023TheindustryisstillturningaroundbutVesyncisobviouslyleadingFirstlywhilemostpeerslikeSEBHelenofTroyandDelonghiareregisteringnegativegrowthin1H23eventhoughtheyareallimprovingQoQVesynchadreported20salesgrowthSecondlywhiletheinventorydaysforthesepeersareeitherclimbingoratleaststayedflattishYoYVesyncsinventorydayshadalreadygonedownto118daysin1H23vs168daysin1H22and128daysinFY22ThirdlywebelievesomeconsumersintheUSandEUhaveturnedmorepricesensitiveduetoslowdownineconomicgrowthandhigh-inflationbutVesyncisstillabletogainsignificantmarketsharesbysellingthosemorecompetitiveanduserfriendlyproductsnewproductstendtohaveahighersellingpriceEarningsrevisionFigure1EarningsrevisionNewOldDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue602523727094839165578817676899769205417491Grossprofit25811230473435244523509226726630349098140161EBIT75650102082129004627697863497115205298328Netprofitatt7203989208111798504016431481784429387367DilutedEPSUSD006200770096004300550070429387367Grossmargin42841942040639539522ppt24ppt25pptEBITmargin12614015410811612617ppt24ppt27pptNetprofitattmargin120123133879510632ppt28ppt27pptSourceCompanydataCMBIGMestimatesFigure2CMBIGMestimatesvsconsensusCMBIGMConsensusDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue602523727094839165606429727286866167-0600-31Grossprofit2581123047343524452510613021873557062808-09EBIT756501020821290046467185329110167170196171Netprofitatt7203989208111798528866962989633362281247DilutedEPSUSD006200770096004500600078362286226Grossmargin42841942041441541114ppt04ppt09pptEBITmargin12614015410711712719ppt23ppt27pptNetprofitattmargin120123133879610332ppt27ppt3pptSourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE223Aug2023ResultssummaryFigure3ResultsreviewHalfYearActual1H23E2H23E1H23EvsHalfyearlyFullyearlyUSDk1H222H221H23E2H23EYoYYoYCMBISCMBIGMRevenue22329726708127693232559124222749821--135743-212346-151814-192597COGS160864Grossprofit87554547351251181329944314311411710GPmargins392205452408415Otherincomegains350653685812777825940Sellinganddistributionexpenses-37703-51536-47778-52647272-4124716Sellinganddistributionexpsales-169-193-173-162-150Administrativeexpenses-31028-38563-43032-3659639-5-3354828Adminexpsales-139-144-155-112-122Otheropex-4855-3177-8249-3801-4125OperatingprofitEBIT17474-38005346404272798-21236023-4OPmargins78-142125131131Otheritems-128509-95950Netfinanceincome-880-811-925-612-1375-33Netfinanceincomesales-04-03-03-02-05Profitafterfinancingcosts16466-38307336204221034648Associatedcoms00000Jointlycontrolledcoms00000Pre-taxprofit16466-383073362042210104-21034648-3Tax-9866510-1034-2758-6237-83Taxsales-0424-04-08-23Effectivetaxrate-60-170-31-65-180Netprofit15480-317973258639453111-22428411Minorityinterests00000Netprofitatt15480-317973258639453111-2242841115NPmargins69-119118121103SalesbyregionNorthAmerica17194619423619901722423416151996430Europe429116503565293912295240643671Asia84407810126221012850301097215Total22329726708127693232559124222749821SourceBloombergCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE323Aug2023Figure4ResultsreviewFullYearFY23EFY24EHalfyearlyFullyearlyUSDkFY22FY23EFY24EYoYYoYRevenue4903786025237270942321COGS-348089-344411-422360Grossprofit1422892581123047348118GPmargins290428419Otherincomegains4042113583614Sellinganddistributionexpenses-89239-100425-1161491316Sellinganddistributionexp-182-167-160salesAdministrativeexpenses-69591-79628-7705114-3Adminexpsales-142-132-106Otheropex-8032-12050-10906OperatingprofitEBIT-2053177367104241-47735OPmargins-42128143Otheritems38100Netfinanceincome-1691-1537-1703Netfinanceincomesales-03-03-02Profitafterfinancingcosts-2184175830102538Associatedcoms000Jointlycontrolledcoms000Pre-taxprofit-2184175830102538-44735Tax5524-3792-13330Taxsales11-06-18Effectivetaxrate-253-50-130Netprofit-163177203989208-54124Minorityinterests000Netprofitatt-163177203989208-54124NPmargins-33120123SalesbyregionNorthAmerica3661824232514850771615Europe1079461565222113044535Asia1625022750307134035Total4903786025237270942321SourceBloombergCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE423Aug2023ValuationPeersValuationFigure5Peersvaluation3yrs12mUpPBROEYTDPriceMktCapYearPExPEGYieldTPDown-xperfxCompanyTickerRatingLCLCsideHKmnEndFY1EFY2EFY2EFY0FY1EFY1EFY1EAHsharesSmallHomeAppliancesVesync2148HKBUY671338993931Dec-22705715550000300JsGlobalLifestyle1691HKBUY170109563787Dec-2212110217701316274Joyoung002242CHNRna1430na11786Dec-22156133301230953132ZhejiangSupor002032CHNRna4704na40776Dec-2217115450253244149Xinbao002705CHNRna1700na15102Dec-2213912118138182421BearElectric002959CHNRna6251na10517Dec-2219316336190102036EcovacsRobotics603486CHNRna6981na43273Dec-2220617250259151543BeijingRoborock688169CHNRna25602na36115Dec-22242201321121705447KingcleanElectric603355CHNRna2614na16120Dec-2214512835257172568Avg14812730162125540Med15613332177152449AHHomeAppliancesMidea000333CHBUY6779543725410305Dec-2211410323214164650GreeElectric000651CHNRna3450na208767Dec-22726517247127267HaierSmartHome600690CHNRna2288na221914Dec-2212811220168123065HaierSmartHome6690HKBUY2910224530221917Dec-22117103191681133156HisenseHome921HKNRna1942na32034Dec-22107941915804371256HisenseHome000921CHNRna2316na32034Dec-22148123251580631759WhirlpoolChina600983CHNRna813na6696Dec-22nanana19nana175HangzhouRobam002508CHNRna2671na27238Dec-2213211723167112338Vatti002035CHNRna583na5310Dec-2296841346024252Avg114100201490939233Med11510320167113552InternationalSmallHomeAppliancesTechtronic669HKNRna81na148712Dec-2218715732182202169SmithAOCorpAOSUSNRna69na81288Dec-22192180551490518204HelenOfTroyLtdHELEUSNRna121na22823Feb-23136122189807na89DeLonghiSpaDLGIMNRna23na29777Dec-22166147191171223105IrobotCorpIRBTUSNRna37na8098Dec-22nana26747na00225SebSaSKFPNRna100na46989Dec-2214114161060625276BrevilleGroupBRGAUNRna24na17603Jun-2329251421592714334KoninklijkePhilipsPHIANANRna21na163157Dec-22182146151510141541Avg18516028111120157Med182147231120721154InternationalHomeAppliancesWhirlpoolWHRUSNRna13413na57634Dec-22827830514005252Ingersoll-RandIRUSNRna6694na212192Dec-2224121928770801281ElectroluxAb-BELUXBSSNRna127na25840Dec-22360100211990125100DaikinIndustries6367JPNRna23400na368721Mar-23240216281183111158Panasonic6752JPNRna158900na209648Mar-2310299091090722431FujitsuGeneral6755JPNRna270050na15873Mar-2321617820670813147LgElectronics066570KSNRna987000na94616Dec-22926408190209141666000005930KSNRnana2329006Dec-2244714213947621204Samsung0Avg22313720290319115Med22812121720517150SourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE523Aug2023Figure6Forward12MPEvaluationbandSourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE623Aug2023AssumptionsFigure7CMBIGMsassumptionsUSDmnFY20AFY21AFY22AFY23EFY24EFY25ESalesbyregionUSDkNorthAmerica302318358060366182423251485077536644Europe4071881041107946156522211304264130Asia58861514916250227503071338391Total348922454250490378602523727094839165SalesgrowthbyregionNorthAmerica103418423156146106Europe853990332450350250Asia3497157473400350250Total103030280229207154SalesgrowthbysegmentSellerCentral230-270-928-500000VendorCentral1667454197149126119Othersincludingoffline86001976951650500250GPmarginsbyregionNorthAmerica442396295440425425Europe400360280420420420Asia430330250270320350Total437388290428419420GPmarginsbysegmentSellerCentral410350250350355360VendorCentral461407285437431431Othersincludingoffline230300320400390395OpexbreakdownAP-35-47-73-75-73-71Commissiontoplatform-49-28-05-03-03-02Staffcost-Opex-58-70-94-75-65-60Warehousing-18-39-42-42-42-42RD-30-38-61-55-50-47Officeexpenses-08-09-06-05-04-03DA-Opex-06-08-08-05-04-03Sellingdistributioncostssales-135-152-182-167-160-155Adminexpensessales-112-113-142-132-106-98OPmargins176114-42128143157Effectivetaxrate-89-185-253-50-130-140NPattmargins15792-33120123133NPattgrowth7588-240-1392-5415238253AdjustedNPattgrowth7588-240-1392-5415238253SourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE723Aug2023FinancialSummaryINCOMESTATEMENT2020A2021A2022A2023E2024E2025EYE31DecUSmnRevenue349454490603727839Costofgoodssold197278348344422487Grossprofit152176142258305352Operatingexpenses91126167192204225Sellingexpense476989100116130Adminexpense395170807782RDexpense000000Others568121113Operatingprofit61512176102129Otherincome0131012ShareoflossesprofitsofassociatesJV000000EBITDA62531977104130Depreciation112211Otheramortisation010000Interestincome011223Interestexpense112222NetInterestincomeexpense101001Otherincomeexpense000000Pre-taxprofit60512276103130Incometax59641318Minorityinterest000000Netprofit5542167289112BALANCESHEET2020A2021A2022A2023E2024E2025EYE31DecUSmnCurrentassets339416396524607769Cashequivalents18312794232182369Accountreceivables35106149164214223Inventories9612911584159121Prepayment252226323945STbankdeposits0329999Othercurrentassets013333Non-currentassets314561636669PPE2457913InvestmentinJVsassos01212121212Intangibles000000Goodwill000000Othernon-currentassets282844444444Totalassets370461457587673839Currentliabilities97133168226222277Short-termborrowings3358888Accountpayables46386111096141Taxpayable17176666Othercurrentliabilities324393102112121Non-currentliabilities121312121212Long-termborrowings001111Othernon-currentliabilities121311111111Totalliabilities110146180238234288Sharecapital122222Retainedearnings190200187259348460Otherreserves6911389898989Totalshareholdersequity260315277349439551Minorityinterest000000Totalequityandliabilities370461457587673839PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE823Aug2023CASHFLOW2020A2021A2022A2023E2024E2025EYE31DecUSmnOperatingProfitbeforetaxation60512276103130Depreciationamortization122221Taxpaid181841318Changeinworkingcapital5711386813679Others72247222Netcashfromoperations1047114344194InvestingCapitalexpenditure143445Acquisitionofsubsidiariesinvestments000000Others54225000Netcashfrominvesting64622445FinancingDividendpaid41919000Netborrowings1515000Proceedsfromshareissues193290000Sharerepurchases002000Others246222Netcashfromfinancing171722222NetchangeincashCashatthebeginningoftheyear17486113850187Exchangedifference0304000Others9183127124262212Cashattheendoftheyear183127124262212399GROWTH2020A2021A2022A2023E2024E2025EYE31DecRevenue103030280229207154Grossprofit1267155192814181157Operatingprofit6433164nana349264EBITDA5983148nana339258Netprofit7588240nana238253PROFITABILITY2020A2021A2022A2023E2024E2025EYE31DecGrossprofitmargin437388290428419420Operatingmargin17611343126140154EBITDAmargin17911738129143155ReturnonequityROE39614555230226226GEARINGLIQUIDITYACTIVITIES2020A2021A2022A2023E2024E2025EYE31DecCurrentratiox353124232728Receivableturnoverdays278568950950950950Inventoryturnoverdays119714711275105010501050Payableturnoverdays604547516516516516VALUATION2020A2021A2022A2023E2024E2025EYE31DecPE90119309705745PEdiluted90119309705745PB1916181512092PCFPS1683na579835na26Divyield111000000000SourceCompanydataCMBIGMestimatesNoteThecalculationofnetcashincludesfinancialassetsPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE923Aug2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBISwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE10