研究报告全文：MN4Sep2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateHaierSmartHome6690HK2Q23wasinlineandFY23Eguidancestayed2Q23wasroughlyinlinerobustair-conperformanceoffsettingtheweakfridgeTargetPriceHK3091washingmachineandCasartestrongdomesticGPmarginoffsettingthePreviousTPHK2910overseasFY23EguidancewasmaintainedastheoutlookforbothChinaandUpDownside275overseasremainedpositivepartlyindustryandpartycompanydrivenWithCurrentPriceHK2425undemandingvaluationof12xFY23EPEwestillmaintainBUYChinaConsumerDiscretionary2Q23resultsroughlyinlineIn2Q23Haierssalesincreasedby8YoYWalterWOOtoRMB665bninlinewithBBGestandnetprofithadgoneupby13YoY85237618776toRMB50bnabout4highervsBBGestgrowthrateswerebothsimilarwalterwoocmbicomhktothatin1Q23GPmarginwasflatvslastyearOPmarginimprovedby07pptto91butwasoffsetbythehigherthanexpectedfinancecostsRaphaelTSE85239000856henceNPmarginwasat75only3ppthigherthanlastyearraphaeltsecmbicomhkChinabusinessimprovedwhileoverseashadweakenedDomesticsalesgrowthwas7in1H23pickedupfrom2declinein2H22ThatwasStockDataMktCapHKmn2264232drivenbystronggrowthforair-con22andwaterheater9andAvg3mthstoHKmn2438relativelysluggishgrowthforfridge6kitchenappliances5and52wHighLowHK30701964washingmachines0CasartecontinuedtogainmoremarketshareandTotalIssuedSharesmn93370SourceFactSetsalesgrowthhadacceleratedtodoubledigitin1H23fromHSDin2H22Howeverthatwasstillbelowits20long-termgrowthtargetOverseasShareholdingStructuresalesgrowthwasat9YoYin1H23sloweddownfrom12in2H22TheHaierGroupCorp188GreenCourtCapital43growthwasdrivenbyEU30SouthAsia24andkindofdraggedManagementbyJapan6SoutheastAsia6NorthAmerica5andAustraliaSourceHKExandNewZealand-16HoweverithadalreadyoutperformedpeerslikeSharePerformanceWhirlpoolGPmargininChinahadimproveddueto1favourablerawAbsoluteRelativematerialcosts2furtherdigitalizationinsupplychainand3greateruseof1-mth-3848self-ownedproductionmorepartsweremadein-houseButGPmarginin3-mth8575overseaswasdraggedby1increasedpromotionandde-stockingand26-mth-152-49SourceFactSetdeclineinconsumptionpowerandneedsforhigh-endproducts12-mthPricePerformanceFY23EguidancemaintainedManagementhadreiteratedtheirtargetsof5to10salesgrowthand10hopefully15netprofitgrowthinFY23EWeareslightlymoreoptimistictoassume8and16growthMaintainBUYandraiseTPtoHK3091WeraisedourFY23E24E25Enetprofitestimatesby342tofactorin1betterair-consalesandmargin2higherGPmarginbuta3slowerCasartesalesOurnewTPisbasedon15xFY23EPEupfrom145xduetoturnaroundItistradingatSourceFactSet12xFY23EPEstillfarbelowits5yearsaverageof15xEarningsSummaryRecentReportsVesync2148HKAnall-roundedbeatYE31DecFY21AFY22AFY23EFY24EFY25EandabullishoutlookRevenueRMBmn22753124348526291428237030012423Aug23YoYgrowth8570807463JSGlobalLifestyle1691HK1Q23OperatingprofitRMBmn1395616369189002208324427resultsbeatandgradualrecoveryisNetprofitRMBmn132170147320170483199699221805likelyEPSReportedRMB13915718221423711May23YoYgrowth41129162171111Vesync2148HKNoFY23EguidancePEx14213711810090buttherisk-rewardistherePBx182017151426Apr23Yield1925323842HaierSmartHome6690HKA4Q22ROE180173177183180missandaprudentFY23EguidanceSourceCompanydataBloombergCMBIGMestimates3Apr23PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk4Sep2023ImprovingoutlookinbothChinaandoverseasForChinawebelievesalesgrowthcouldfurtherimprovein2H23Ebecauseof1lowbasein4Q2rolloutofmorefavourablepoliciesaroundthepropertymarketand3improvingpropertycompletionInparticularweexpectair-conwaterheaterandkitchenappliancestooutperformin2H23EasthesecategoriestendtobemoredirectlyrelatedtonewhomeswhilegrowthforfridgeandwashingmachinescouldstillbedullManagementalsohighlightedthatair-conindustrysaleshavebeendroppingby20sincelateJulandAug2023likelyduetohighbaselastyearbutHaierhaddonemuchbetterwithjustaLSDdropWedoagreethatHaiersair-conbusinesscanstillmaintain15salesgrowthin2H23EandonwardssupportedbyalltherecentreformseghiringoutsidetalentssimplifyingtheSKUshavingamoreDTCmentalityusingmorein-houseproductionsMoreoverwedoexpectthemarginstofurtherexpandaidedby1limitedpricewarwithinthetier1brands2decliningrawmaterialscosts3morein-houseproductionsegforACandwatersolutionsaswellasthepositivesyieldfromdigitalizationoncustomerserviceslogisticsRDandmanufacturingetcWearemorecautiousaboutoverseasdemandin2H23EasitcouldstillbenegativelyaffectedbyhighinflationandinterestratesHowevermanagementisratherconfidentonmarginimprovementsin2H23Eboostedby1fallinshippingandotherlogisticscosts2launchesofmorenewandhigh-endHaierproductsand3rebrandingoftheCandybrandASPwillbemuchhigherandbreakevenshouldbeachievedifitsellswellEarningsrevisionFigure1EarningsrevisionNewOldDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue262914282370300124259476278334294336131520Grossprofit810018775693382795098580490921192327EBIT189002208324427178182068523422616843Netprofitatt170261994622155165851923921778273717DilutedEPSRMB182321362373177620612332273717Grossmargin30831131130630830902ppt03ppt02pptEBITmargin72788169748003ppt04ppt02pptNetprofitattmargin65717464697401ppt02ppt0pptSourceCompanydataCMBIGMestimatesFigure2CMBIGMestimatesvsconsensusCMBIGMConsensusDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue26291428237030012426188628302030550104-02-18Grossprofit810018775693382833629080098880-28-34-56EBIT189002208324427190972180924664-1013-10Netprofitatt1702619946221551682119331221831232-01DilutedEPSRMB182321362373178320362308234928Grossmargin308311311318321324-1ppt-1ppt-13pptEBITmargin727881737781-01ppt01ppt01pptNetprofitattmargin65717464687301ppt02ppt01pptSourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE24Sep2023ResultsSummaryFigure3ResultsreviewHalfYearHalfyearly1H232H23E1H222H221H232H23ERMBmnYoYYoYRevenue12184612163913161413130088COGS-85643-83276-92398-89515Grossprofit3620338363392164178589GPmargins297315298318Otherincomegains1373153916901519SDexpenses-17606-20992-18769-2254977SDexpsales-144-173-143-172Adminexpenses-10557-11120-11218-1180066Adminexpsales-87-91-85-90Otheropex0000OperatingprofitEBIT941377901091989551615OPmargins77648368Otheritems0000Netfinanceincome-352-643-884-440Netfinincomesales-03-05-07-03Profitafterfinancingcosts90617147100358515Associatedcoms9376451079498Jointlycontrolledcoms0000Pre-taxprofit999877921111490141116Tax-2001-1057-2069-1011Taxsales-16-09-16-08Effectivetaxrate-200-136-186-112Netprofitfromconbus79976735904580031319Netprofitfromdisconbus0000Minorityinterests48-2781-58Netprofitatt79496762896480621319NPmargins65566861SalesbychannelFoodSolutions2091421210222452285968AirSolutions159191246519538150902321ClothingSolutions1247214604124811567807WaterSolutions6677686573047592911Overseas6119663508667336688795Otherbusiness4668298733133194-297Total12184612163913161413130088SalesbysegmentMainlandChina60650581316488164413711Overseas6119663508667336688795Total12184612163913161413130088SourceCompanydataCMBISestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE34Sep2023Figure4Resultsreview-FullYearFY22FY23EFY24EFullyearlyRMBmnFY22FY23EFY24EYoYYoYYoYRevenue243485262914282370787COGS-168919-181913-194614Grossprofit745668100187756798GPmargins306308311Otherincomegains291232093524SDexpenses-38598-41318-43744676SDexpsales-159-157-155Adminexpenses-21677-23018-24329766Adminexpsales-89-88-86Otheropex000OperatingprofitEBIT172031987423207171617OPmargins717682Otheritems000Netfinanceincome-995-1324-1324Netfinincomesales-04-05-05Profitafterfinancingcosts162081855021883Associatedcoms158215771694Jointlycontrolledcoms000Pre-taxprofit177902012823577121317Tax-3058-3080-3607Taxsales-13-12-13Effectivetaxrate-172-153-153Netprofitfromconbus147321704819970111617Netprofitfromdisconbus000Minorityinterests212324Netprofitatt147111702619946131617NPmargins606571SalesbychannelFoodSolutions421244510448362677AirSolutions28384346284051542217ClothingSolutions270762815929849446WaterSolutions1354214896159399107Overseas1247041336201409391075Otherbusiness765565076767-13-154Total243485262914282370787SalesbysegmentMainlandChina118781129294141432499Overseas1247041336201409391075Total243485262914282370787SourceCompanydataCMBISestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE44Sep2023ValuationFigure5Peersvaluation3yrsYTD12mUpPBROEYieldPriceMktCapYearPExPEGperTPDown-xxCompanyTickerRatingLCLCsideHKmnEndFY1EFY2EFY2EFY1EFY1EFY1EFY1EAHsharesHomeAppliances-WhitegoodsKitchenandSmallAppliancesHaierSH-H6690HKBUY3091242527237116Dec-2211810017166083488GreeElectronics000651CHNRna3669na223077Dec-227770182431265135HaierSH-A600690CHNRna2425na236891Dec-2213611922164132809MideaGroup000333CHBUY6670579315439253Dec-22121109252121644118HisenseJA921HKNRna2070na34009Dec-22110972019404371404HisenseHA000921CHNRna2441na33976Dec-22147124261920632853WhirlpoolChina600983CHNRna777na6430Dec-22nananananana123ZhejiangAishida002403CHNRna868na3192Dec-22na17361400nana120BearElectric002959CHNRna6056na10237Dec-2219216235182112204EcovacsRobotics603486CHNRna5314na33097Dec-22183154402212218271JSGlobalLifestyle1691HKBUY170112523892Dec-2212110217001217254JoyoungCo002242CHNRna1418na11743Dec-22162137301881051140HangzhouRobam002508CHNRna2882na29530Dec-2214312724174122238ZhejiangSupor002032CHNRna4816na41946Dec-2217715953300274226VattiCorporation002035CHNRna606na5546Dec-221008714133024594XinbaoElectrica002705CHNRna1787na15951Dec-2214712819129212373Avg130221241781249136Med13912422182113556InternationalHomeAppliances-WhitegoodsKitchenandSmallAppliancesWhirlpoolCorpWHRUSNRna142na61049Dec-22878232361004903Ingersoll-RandPlcIRUSNRna70na221931Dec-22252229291190801339SmithAOCorpAOSUSNRna74na86862Dec-22204191592980517285HelenOfTroyHELEUSNRna122na23106Feb-231371231813706na102IrobotCorpIRBTUSNRna39na8424Dec-22nana27283na00194ElectroluxAbELUXBSSNRna118na23982Dec-223379320290127159SebSaSKFPNRna101na47240Dec-22139115161200724289KoninklijkePhilipsPHIANANRna20na160438Dec-2217814314430142523DaikinIndustries6367JPNRna25575na402415Mar-23265237301193310266PanasonicCorp6752JPNRna1723na227001Mar-23106108101040720552SonyCorp6758JPNRna12535na848573Mar-23171152191255106249Hitachi6501JPNRna9919na499579Mar-23173163181048315482SharpCorp6753JPNRna924na32261Mar-233521792161021622FujitsuGeneral6755JPNRna2822na16565Mar-23220191211060912109LgElectronics066570KSNRna99600na96784Dec-22956608890209151SamsungElect005930KSNRna71000na2516822Dec-2247515014299020284WoongjinCoway021240KSNRna42450na18602Dec-226662121892632241Avg204143221030119165Med176147191060616249SourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE54Sep2023Figure6Forward12MPEvaluationbandSourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE64Sep2023AssumptionsFigure7CMBIGMsassumptionsRMBmnFY20AFY21AFY22AFY23EFY24EFY25ESalesbysegmentRMBmnMainlandChinaRefrigeratorsfreezers305623684239010417414466347342Kitchenappliances263630133114336336993995Air-conditioners218612740928384346284051545782Laundryappliances224832591727076281592984931341Waterappliances98331247913542148961593917214Overseas100044113090124704133620140939147411Otherbusinesses2228487817655650767677038Total209703227531243485262914282370300124SalesbysegmentgrowthMainlandChinaRefrigeratorsfreezers0520559707060Kitchenappliances227143348010080Air-conditioners7325436220170130Laundryappliances1715345406050Waterappliances33269851007080Overseas83130103715546Otherbusinesses59-606-128-1504040Total598570807463SalesbybrandgrowthHaierLeaderothers280624838677Casarte176480150130150100GEA10014065406050Candy2013090404030Others691091961484943Total598570807463GPmargin290305306308311311CostsbreakdownSellingdistributionexpenses160161159157155153Adminexpenses868989888686Effectivetaxrate165170172153153153NPmarginconbus545861657174NPgrowthconbus255167115157171111NPattmargin425760657174NPattgrowth82472126157171111SourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE74Sep2023FinancialSummaryINCOMESTATEMENT2020A2021A2022A2023E2024E2025EYE31DecRMBmnRevenue209703227531243485262914282370300124Costofgoodssold148870158059168919181913194614206742Grossprofit608336947274566810018775693382Operatingexpenses515715678460275643356807371505Sellingexpense336413655438598413184374445778Adminexpense110701187312178130271359914323RDexpense68608357949999911073011405Others000000Operatingprofit125371395616369189002208324427Otherincome327512682078223524002551ShareoflossesprofitsofassociatesJV000000EBITDA165031829520907234662563027974Depreciation325534333632365926412641Otheramortisation711906906906906906Interestincome71978883497411241283Interestexpense1321714995132413241324Otherincomeexpense162018861582157716941801Pre-taxprofit135551591617790201282357726187Incometax223226993058308036074007Minorityinterest244615021232426Netprofit113231321714732170481997022181BALANCESHEET2020A2021A2022A2023E2024E2025EYE31DecRMBmnCurrentassets114246123614136579151314166487181833Cashequivalents456354495852772612937032079924Accountreceivables300662798629948323383473136915Inventories294473986342602458794908252141Prepayment521264156865741379618462STbankdeposits000000Othercurrentassets388643924392439243924392Non-currentassets891969384697696102649109251116428PPE248152698131238360974260549688InvestmentinJVsassos000000Intangibles895784987592668557794873Othernon-currentassets554245836758867598676086761867Totalassets203442217460234275253963275738298261Currentliabilities109474124926131329139028146606153749Short-termborrowings126431796817968179681796817968Accountpayables575396736871997775358294988118Taxpayable137113051305130513051305Othercurrentliabilities379213828540059422204438446358Non-currentliabilities271691272212743127661279012816Long-termborrowings1185830753075307530753075Othernon-currentliabilities1531196479668969197159741Totalliabilities136643137648144072151794159396166565Sharecapital902893999399939993999399Retainedearnings5530470413755068650599390113702Otherreserves246705298602770607842Totalshareholdersequity667997981290203101931115849130944Totalequityandliabilities203442217460234275253725275245297509PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE84Sep2023CASHFLOW2020A2021A2022A2023E2024E2025EYE31DecRMBmnOperatingProfitbeforetaxation135551591617790201282357726187Depreciationamortization396643394539456635473547Taxpaid801983093058308036074007Changeinworkingcapital192844181252148414321401Others61696765995156315781584Netcashfromoperations175992313021518246612652728712InvestingCapitalexpenditure759273727889851891499724Acquisitionofsubsidiariesinvestments000000Others2328695500100010001000Netcashfrominvesting52648067838995181014910724FinancingDividendpaid498034114320529860277060Netborrowings27719970000Proceedsfromshareissues000000Sharerepurchases032210000Others42312062995132413241324Netcashfromfinancing1026106915315662273518384NetchangeincashCashatthebeginningoftheyear435884563544958527726129370320Exchangedifference926250490000Others1130943727814852190289603Cashattheendoftheyear456354495852772612937032079924GROWTH2020A2021A2022A2023E2024E2025EYE31DecRevenue598570807463Grossprofit3814273868364Operatingprofit243113173155168106EBITDA1921091431229291Netprofit255167115157171111PROFITABILITY2020A2021A2022A2023E2024E2025EYE31DecGrossprofitmargin290305306308311311Operatingmargin606167727881EBITDAmargin798086899193ReturnonequityROE197180173177183180GEARINGLIQUIDITYACTIVITIES2020A2021A2022A2023E2024E2025EYE31DecCurrentratiox101010111112Receivableturnoverdays523449449449449449Inventoryturnoverdays722921921921921921Payableturnoverdays141115561556155615561556VALUATION2020A2021A2022A2023E2024E2025EYE31DecPE15314213711810090PEdiluted15314213711810090PB181820171514PCFPS8510398857973Divyield221925323842SourceCompanydataCMBIGMestimatesNoteThecalculationofnetcashincludesfinancialassetsPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE94Sep2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBISwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE10