研究报告全文：8Sep2023CMBInternationalGlobalMarketsEquityResearchSectorUpdateSemiChinaCISsectorSolidautoCISgrowthoffsetbyweakmobileCISMARKETPERFORMdemandMaintainCISmarketrevenuewasUS213bnin2022stagnatedwith02YoYdeclineaccordingtoYoleThesalesfrommobilesegmentUS135bnremainedflatChinaTechnologySectorAutoCISsalesgrew137YoYtoUS22bnsurpassingSecurityCISwhichexperiencedsignificantdecline428YoYinthepastyearDomesticCISLilyYangPhDplayerstookastronghitby1theweakmobilesecuritydemand2slower-than-85239163716expectedinventorydigestionand3intensifiedcompetitionamongoverseasandlilyyangcmbicomhkdomesticpeersLookingforwardweexpect2023CISmarketrevenuetomaintainatUS213bnaresultofcontinuousgrowthfromautoindustrialmedicalKevinZhangCISoffsetbytheongoingweaknessfrommobilesecurityconsumerCISWe85237618727maintainHOLDforWillsemi603501CHkevinzhangcmbicomhkMobileCIShascontinuedtoexhibitweaknesswithsignificantrepercussionsformajordomesticCISplayersAccordingtoCounterpointsmartphoneshipmentdroppedby117in2022reaching123bnunitsandisexpectedtofurtherdeclineto115bnin2023potentiallymarkingthelowestfigureinadecadeThesluggishsmartphoneshipmentdraggeddownmobileRelatedReportsCISshipmentin2022Howeveroverallsalesremainedunchangeddueto11612023Willsemi603501CHincreasingmixofpremiumphoneswhichdroveupASPWeexpectmobilePreliminary2022resultscameinCISsalestodeceleratebyanother25YoYin2023AsforcompetitivenessbelowestimateMaintainHOLDlandscapeSonygainedsignificantshare5accordingtoCounterpointlinkthankstoApplesshareexpansionWillsemiandGalaxyCoreboth231102022Willsemi603501CHexperiencedsignificantdecreasesinmobileCISsalesgiventheirclientsbaseSluggish3Q22performancefromAndroidcampThelonger-than-expectedinventorydigestionerodedDowngradetoHOLDasnear-termsalesandmarginssignificantlyin-linewithourexpectationHoweverpressuresmaylastlongerlink312102022ChinaCISSectorSmartSens688213CHmobilegrewitsCISbusinessfromalowbaseasMaintainlong-termpositivedomesticsmartphonemanufacturersareexpandingtheirsuppliersWeakoutlooknear-termchallengesmobileCISdemandwillremainanoverhangforWillsemiandGalaxyCoreinpersistlinktheneartermunlessthereisasurgeinconsumerinterestfornewAndroid41682022Willsemi603501CHphonesthatcouldsparkamarketturnaroundWewillwatchcloselyonthe2QresultsreviewRecoverysmartphoneshipmentin2H232024sloweddownbyweakmobileCISlinkAutoCISwillmaintaindouble-digitgrowthtakingupgreatersharein52742022Willsemi603501CHtheCISmarketForautoCISthemarketwillcontinuetogrowon1Thefearedbad1Q22isgoneAllincreasingadoptionofADAS2transitionfromordinaryvehiclestoelectrifiedeyesontherecoverylink62042022Willsemi603501CHintelligentvehiclesand3resolutionsupgradefromcurrent1217MPwhichIn-lineFY21resultsSolidnon-willdriveupbothsalesunitsandASPAsforthecompetitivenesslandscapemobileCISgrowthovershadowedOnSemiregainedsignificantshare10in2022tookbacktheshareslostbyweaksmartphoneCISlinkduetochipshortagesintheyearbeforeandstrengtheneditsleadershipin7142022ChinaCISSectorCanautoCISmarketThesalesgrowthoftheCompanysautosensingbusinessnon-mobileCISstrengthoffsetwas322YoYin1H23vs875in2022higherthanWillsemis20055handsetweaknessWeremainin1H232022showingthemarketconsolidatedtowardstheleadersaftercautiouslyoptimisticlinkseveresemishortage81032022Willsemi603501CHFY21revenueinlineGrowthstorySecurityCISsalesislikelytoslidefurtherin2023YoleestimatedsecuritystaysintactlinkCISmarketplungedbymorethan40in2022whichwethinkisaffectedby92812022Willsemi603501CHSolid4QWellpoisedtoembraceweakmacroanddelayedgovernmentprocurementChineseCISplayerslead2022ReiterateBUYlinkthemarketandtheirsecurityCISsalesweredowndramaticallyin2022101612022Willsemi603501CHSmartSensWillsemi-303-231YoYTheweakdemandcontinuedintoPreliminary2022resultscamein1H23Weareconservativeinnear-termmarketoutlookandexpectdemandbelowestimateMaintainHOLDtoreturnoncegovernmentprocurementisresumedlinkAsforourcoveragewemaintainHOLDonWillsemiasweexpectde-stockingprocessislikelytopersisttilltheendoftheyearwhichwillcontinuetohurttheCompanysoverallmarginPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk8Sep2023ContentsCISmarketreviewandoutlook3Shareconsolidatestomarketdominantspostsemishortage4MobileCIS5AutoCIS7SecurityCIS9PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE28Sep2023CISmarketreviewandoutlookCISmarketrevenuewasUS213bnin2022stagnatedwith02YoYdeclineaccordingtoYoleTheresultwasbetterthanourestimatesinOctoberwhenweprojecteda5YoYdeclineasweexpectedautoCISsstrengthcannotoffsetthehandsetweaknesslinkWeexpectthisyearsglobalCISmarketwillremainflatandhopefullyresumegrowthlikelysingle-digitin2024andonwardsMobileCISsaleswereflatatUS134bnin2022astheincreasefromavgmobileCISASPoffsetthedeclineinshipmentSimilartrendwillfollowin2023andweestimatedmobileCISmarketwilldecreaseby5YoYRecoverymaycomein2024afterCISinventoryfulldigestsandconsumerssentimentresumesAutoCISsalesgrew137YoYtoUS26bnin2022drivenbyincreasingnumberofcameraspervehicleincreasingadoptionofADASandtransitionfromordinaryvehiclestoelectrifiedintelligentvehiclesandrisingASPresolutionsupgradefromcurrent1217MPWeexpectthetrendwillpersistandsupportautoCISmarkettogrowatdouble-digitin202324ESecurityCISsalesdroppeddramaticallyin2022down428YoYaccordingtoYolemuchlowerthanexpectationThesegmentwasaffectedbymacroeconomicspressurewhichisbelievedtopersistintheneartermDemandwillreturnoncegovernmentprocurementandenterprisespendingareresumedAlthoughmobileCISremainsthelargestsegment63oftotalCISsalesitssharewillcontinuetodecreaseinthefollowingyearsTheshareofautoandindustrialCIS104arelikelytoexpandonstrongergrowthMedicalCISwillalsohavedouble-digitgrowthhoweveritscontributionislessmeaningfultotheoverallmarketgrowthsincethecurrentbaseislow1shareFigure1CISmarketrevenuewasUS213bnin2022Figure2MobileCISremainsthelargestsegmentstagnatedwith02YoYdeclinewhileautoandindustrialCIStoexpandonhighergrowthUSbn10025225302072132132138019325201552060Thousands13915154010105205000-5201720182019202020212022E2023E2024E2017201820192020202120222023E2024EMobileAutomativeConsumerSecurityCISmarketGrowthIndustrialMedicalOthersSourceYoleCMBIGMestimatesSourceYoleCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE38Sep2023ShareconsolidatestomarketdominantspostsemishortageTheCISmarkethasundergonesignificantchangesoverthepastthreeyearsandsotoohaveitspeersWhentheindustryconfrontedachipshortagewesawChineseCISplayersgarneredmarketsharegainsthankstotheirrobustsupplychaincapabilitiesandefficientoperationmanagementWithaweakeningdemandlandscapeandagradualeasingofbottlenecksChineseCISplayersfacedchallengesinthefollowingareas1decreasedmobilesecuritydemand2slower-than-expectedinventorydigestionofmobileCISand3intensifiedcompetitionamongoverseasanddomesticpeersInsub-marketsmarketsharesshowedconsolidationarounddominantplayersnotablyinthemobileandautomotiveCISmarketsSonygained5inmobileCISmarketduring2022thankstoApplesshareexpansionOnSemigainedmorethan10shareinautoCISmarketwhileWillsemigained6shareOverallSonywasthebiggestwinnerin2022whichrecordeda30sharegainOnSemigained18sharemainlyduetooutperformedautoCISsalesConverselySamsungWillsemiGalaxyCoreandSmartSensallexperiencedsharelosslargelydrivenbythesluggishmobileandsecuritydemandandprolongedinventorydigestioninthechannelFigure3SonyOnSemiSKHynixgained322Figure4ChangeincompetitivedynamicsduringshareswhileSamsungWillsemiGalaxyCorelost42019-2022Shareconsolidatestomarketdominants31sharesin2022postsemishortageMarketshareSmartSensOthers201920202021202228changeSKHynixSony33-36-02305Samsung0310-04-35OnSemi6SonyWillsemi232917-2842GalaxyCore3GalaxyCore071702-08STSmartSens020609-026Willsemi10OnSemi-10-040718Samsung18Others-58-23-2926SourceYoleCMBIGMestimatesSourceCompanyfilingsYoleCounterpointBloombergCMBIGMestimatesWemaintainourHOLDratingonWillsemi603501CHTPisRMB85TheCompanys1H23revenueandnetprofitwereRMB89bnandRMB153mndown20and93YoYrespectivelyMargincontinuedtocontractin2Q23suggestingtheCompanyismakingeffortstodigestinventory2QNPwasnegativeagainfailingtocontinueitsprofitabilityfrom1QThishasconfirmedourpreviouspredictionthatinventorydigestioncontinueshowevernotnecessaryahintofmarketturnaroundlinkLookingforwardwethinkthede-stockingprocessislikelytopersisttilltheendoftheyearwhichwillcontinuetohurttheCompanysoverallmarginPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE48Sep2023MobileCISMobileCISmarketstagnatedin2022withUS135bnsalesvsUS134bnin2021ThisismainlyduetoamixedimpactfromsluggishsmartphoneshipmentandincreasingASPPerCounterpointsmartphoneshipmentdroppedby117YoYin2022reaching123bnunitsThedecreaseinsmartphoneshipmentdraggeddownmobileCISshipmentin2022HoweveraveragemobileCISASPliftedthankstoincreasingmixofpremiumphoneThisyearsmartphoneshipmentisexpectedtoshowanother64YoYdeclineto115bnthelowestinadecadeaccordingtoCounterpointAlthoughaverageASPislikelytocontinuetoincreasewhichhelpstopartiallyoffsetthedeclinefromlowersmartphoneshipmentweexpecttheoverallmobileCISsaleswilldropbyc5YoYin2023Figure5MobileCISmarketstagnatedin2022andisFigure6Counterpointprojectedsmartphoneexpectedtoremainweakin2023Eshipmentwilldecline64YoYto115bnin2023mnunitsUSbn14791630150013911411331134134135128122711471210620Thousands9410008105004000-1020192020202120222023E2017201820192020202120222023EMobileCISGrowthOtherOppoVivoXiaomiAppleSamsungSourceYoleCMBIGMestimatesSourceCounterpointCMBIGMestimatesIn2022SonygainedthemostsignificantsharebenefitedbyApplesmarketshareexpansionCounterpointestimateda5sharegainfortheCompanyOntheotherhandChineseCISplayersgothurtthemostWillsemiandGalaxyCoresmobileCISsalesdecreasedby48117YoYandoverallGPMwasby37and32in2022ThisismainlybecausetheirclientbasecomesfromAndroidcampThelonger-than-expectedinventorydigestionerodedsalesandmarginssignificantlyin-linewithourexpectationSmartSenswastheonlycompanyreportedsalesgrowthinmobileCISbusiness1806YoYfromalowbasein2021asdomesticsmartphonemanufacturersareexpandingtheirsuppliersPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE58Sep2023Figure7Willsemislonger-than-expectedinventoryFigure8Willsemisde-stockingwillcontinueintodigestionerodedsalesandmarginssignificantlyin2H23linewithourexpectationsRMBbnRMBbnMonths15403010258ThousandsThousands301020620154510105200001Q193Q191Q203Q201Q213Q211Q223Q221Q234Q192Q204Q202Q214Q212Q224Q222Q23LTMsalesInventoryMOIQuarterlysalesInventoryGPMSourceCompanyfilingsCMBIGMestimatesSourceCompanyfilingsCMBIGMestimatesWeexpectweakmobileCISdemandwillremainanoverhangforWillsemiandGalaxyCoreintheneartermunlessthereisoverwhelmingconsumerinterestfornewAndroidphonestomarkamarketturnaroundWewillwatchcloselyonthesmartphoneshipmentin2H232024Figure9ApplesteadilygainedsharesfromAndroidFigure10Sonywon5shareinmobileCISmarketcampinthepastyearsin2022accordingtoCounterpoint100Marketshare202020212022change303030804238101010Sony-33335060889888Samsung13-30-108141212408111819131517Willsemi43-03-54202019202121GalaxyCore2004-1102019202020212022LTMOthers-44-0325SamsungAppleXiaomiVivoOppoOtherSourceYoleCMBIGMestimatesSourceCounterpointCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE68Sep2023AutoCISAutoCISmarketcontinueditsgrowthmomentumin2022SalesrosetoUS22bnwith137growthYoYaccordingtoYoleWeexpectautoCISmarketwillmaintaindouble-digitgrowthtakingupgreatershareintheCISmarketFigure11AutoCISmarketgrew137YoYtoFigure12GloballightvehicleproductiontogrowUS213bnin202246YoYUSbnmnunits353312030951941271008878808188562577222807451920146015130940100720050002017201820192020202120222023E2024E2017201820192020202120222023E2024ELightvehicleproductionAutoCISSourceYoleCMBIGMestimatesSourceSPMobilityCMBIGMestimatesThegrowthisdrivenbyincreasingnumberofcameraspercaras1thetransitionfromordinaryvehiclestoelectrifiedintelligentvehicleswillrequireinstallationofalargenumberofcameras2increasingadoptionofADASandAutonomousDrivingADdemandand3resolutionsupgradefromcurrent1217MPFigure13ADASpenetrationrateisexpectedtoFigure14Noofcamerapervehiclewillcontinuetoaccelerategrowin202425E100mnunitsunit400480328293300272267360245200402001542126201001020182019202020212022E2023E2024E2025E002017201820192020202120222023E2024EADASLevel0ADASLevel1-2ADASLevel2AutocameramoduleshipmentADASLevel3-4ADASLevel5NoofcamerapervehicleSourceYoleSPMobilityCMBIGMestimatesSourceYoleSPMobilityCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE78Sep2023WesawthesametrendofshareconsolidationtothemarketleaderinautoCISmarketsimilartowhathappenedinthemobilemarketalthoughthedirectreasonsaredifferentOnsemilostmorethan8sharein2021duetochipshortageHowevertheCompanyregainedmorethan10marketsharein2022afterglobalsupplychainconstraintshaveeasedThegrowthofOnSemisautosensingbusinesscontinuedin2023with322YoYincreaseinsalesin1H23suggestingitsleadershiphasfurtherstrengthenedinautoCISmarketWillsemihasalsoperformedwellinthismarkettakingshareinthepasttwoyearsTheCompanysautosensingsalesgrew55YoYin2022andanother200YoYin1H23WethinktheshareswillcontinuetoconsolidatetowardstheleadersinthefollowingyearsCurrentlythetoptwoplayersOnSemiandWillsemitookc60marketsharein2022Figure15OnSemiandWillsemitook60marketFigure16Shareconsolidatedtomarketleadersshare2022Marketshare202020212022OnsemichangeOthers3540OnSemi-24-85138Willsemi-206160WillsemiOthers4324-19725SourceYolecompanydataandCMBIGMestimatesSourceYoleSPMobilityCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE88Sep2023SecurityCISSecurityCISmarketplungedbymorethan40in2022whichwethinkisaffectedbymacroeconomicsandslowdownsuspensioningovernmentprocurementThisisinlinewithourpreviousforecastshoweverthemagnitudeofimpactwasgreater-than-expectedTheChinesesuppliersareleadinginthismarketbenefitedbythelocalupstreamanddownstreamecosystemThesemanufacturerstookastronghitin2022WillsemiandSmartSensssalesweredown231303YoYin2022Themarketheadwindpersistsinto2023asthesecurityCISsalesofthesetwocompaniescontinuedtodecline248and164YoYin1H23Weareconservativeinnear-termmarketoutlookWethinkthedemandwillreturnoncegovernmentprocurementisresumedFigure17SecurityCISsalesplungedby428YoYFigure18ChineseCISplayersareleadinginthetoUS12bnin2022securityCISmarketUSbnWillsemi32822Other4221612121109108SmartSens200GalaxyCor201720182019202020212022E2023EeSecurityCIS10SourceYoleCMBIGMestimatesSourceYoleCMBIGMestimatesFigure19SecuritycamerasuppliersmarketshareinFigure20Changesofcompetitivelandscapeduring20212020-2022Marketshare202020212022changeHikVision39OthersWillsemiNA536445SmartSens474429GalaxyCore42-0635Sony-126-90NADahua16OthersNA00NASourceYoleCMBIGMestimatesSourceYoleCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE98Sep2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBIGMwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE10