研究报告全文：MN25Sep2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateJsGlobalLifestyle1691HKDistressedvaluationandpotentialturnaroundDespitethespin-offofSharkNinjaex-APACJSglobalcouldstillbeattractiveTargetPriceHK184totheinvestorsbecauseof1potentialturnaroundofJoyoung2rapidgrowthPreviousTPHK170fromSharkNinjaAPACand3ratherdistressedvaluationevenafterUpDownside470consideringthesmallcapholdingandAHdiscountsWestillgiveitaBUYCurrentPriceHK125ratingwithTPofHK184basedon8xFY24EPE40discounttoindustryChinaConsumerDiscretionaryaverageof133xThecurrentvaluationisat54xor32xex-cashFY24EPEWalterWOOSharkNinjaAPACisagrowthdrivermayaccountfor20salesmixin85237618776thefutureWedobelieveSharkNinjaAPACcanhaveabrightfuturebecausewalterwoocmbicomhkof1enormousmarketsizeand2greaterdedicationfromJSGlobalsmanagementTheAPACex-ChinasmallhomeappliancesmarkethasaRaphaelTSElargecustomerbaseabout40ofworldspopulationand870mnhousehold85239000856andaretailsalesofroughlyUS7bnperyearSharkNinjaAPACsmid-termraphaeltsecmbicomhksalestargetisatUS400mn-700mnin3to5yearsbyFY25EtoFY27EStockDatawhereJapanSouthKoreaAustraliaNewZealandandIndiaarethekeyMktCapHKmn43683regionsandonlySouthKoreawillbeconductedthroughwholesalesself-Avg3mthstoHKmn934operatedotherwiseSincethenewAPACpresidentarrivesheisfromDyson52wHighLowHK190104in3Q22moreinnovativeproductsandmarketingwerecarriedoutinJapanTotalIssuedSharesmn34946SourceFactSetandAustraliaandwehaveseenastrongbreakthroughinJun2023marketshareintheCordlessVacuumsegmenthassurgedto16inJul2023fromShareholdingStructureabout13inMay2023Managementisnowexpectingatleast3050MrWangXuningconcert564salesgrowthinJapanAPACforSharkNinjain2H23Ewasat2373inparty1H23NewcategoriessuchasicecreammakerandhaircareproductwillMrMarkRosenzweig79SourceHKExalsocontributecertaingrowthaswellCurrentmarketcapisratherdistressedevenfactoringinthesmallcapSharePerformanceconcernsholdingandAHdiscountsBasedonourFY24EfinancialAbsoluteRelativeforecastsUS178bnsalesandUS106mnnetprofitattThecurrent1-mth147130marketcapisequaltojust55xFY24EPEor32xifweexcludecashwhich3-mth-88-29canbebrokendownto51x9xforJoyoungSharkNinjaAPACrespectively6-mth-83-05SourceFactSetabout6834discounttoJoyoungsA-sharesInternationalpeersaverageof159x137xEvenifweplugina20smallcapdiscountforJSglobal2012-mthPricePerformanceholdingdiscountand20AHsharesdiscountforJoyoungthepotentialmarketcapcanbeashighasHK69bnequaltoabout83xFY24EPEveryclosetoourtargetpriceassumptionof8xAnotherkeyreasonwethinkJSglobalcouldbeunder-valuedisthedividendItspayoutratiowasjustat50in1H23whilethatforJoyoungwashighatabout1003yearsaveragehencetherearechancesforittoclimbinthefutureMaintainBUYandadjusttheTPtoHK184OurnewTPisbasedon8xSourceFactSetFY24EPE40discounttoindustryaverageof133xItisonlytradingat54xFY24EPEabout59discounttoindustryaverageRelatedreportsHaierSmartHome6690HK2Q23EarningsSummarywasinlineandFY23EguidancestayedYE31DecFY21AFY22AFY23EFY24EFY25E4Sep23RevenueUSmn51515041361117651942Vesync2148HKAnall-roundedbeatYoYgrowth22821284511100andabullishoutlookOperatingprofitUSmn61150929415817423Aug23NetprofitUSmn46073575209211631293EPSReportedUScents1229964111513571526JSGlobalLifestyle1691HK1Q23resultsbeatandgradualrecoveryisYoYgrowth272216157217124likelyPEx121421544911May23PBx0303020202Yield3290016894105Vesync2148HKNoFY23Eguidancebuttherisk-rewardisthereROE23017297495026Apr23SourceCompanydataBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk25Sep2023Thespin-offofSharkNinjaex-APACwassuccessfulSharkNinjahasbeenlistedinUSsuccessfullyon31Jul2023andthelatestmarketcapisataboutUS61bntradingatabout26xFY22PEwayhigherthanJSglobals9xinJun2023InFY22theretainedgroupwillonlyconsistof67ofJoyoungssharesandSharkNinjasAPACbusinesswherethesalesandnetprofitwereataroundUS16bnandUS138mnInadditionSharkNinjaAPACaccountedforroughly66ofsalesnetprofitoftheretainedgroupinFY221H23resultwasdraggedbyJoyounghighermarketingandspin-offrelatedfeesJSglobalsalesincreasedby3drivenbySharkNinjas3growthandtheretainedgroups18declineNetprofitdeclinedby23YoYmainlyduetohigher-than-expectedAPexpensesandfinancecostsaswellasamortizationshare-basedcompensationandfeesrelatedtothespin-offJoyoung2H23EoutlookJoyoungssalesdroppedby17in1H23andnetprofitfellby30WhileindustryundergoesadowncycleinmainlandChinaJoyoungasamorehigh-endbrandwashithardgiventheconsumptiontradedownandpricewaraswellasthelackofinnovativeproductskeyproductslikeblendersandairfryerwereinventedlong-timeagoHoweveritsODMbusinesssalesgrowthwasstillfastat49in1H23Goingforwardin2H23EweexpectJoyoungssalesgrowthtoturnaroundafterasmallpositivein2Q23andODMbusinesstoremainrobustGPmarginandOPmargintostayatleastflattishJoyoungsGPmarginimprovementtooffsetthemixincreaseofthelowermarginODMbusinessandmarketingspendingshouldstaycautiousandconservativeEarningsrevisionFigure1EarningsrevisionNewOldDiffUSmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue361117651942530657636179-319-694-686Grossprofit1330645713203222242386-345-710-701EBIT294158174577669738-491-764-764AdjustedNPatt266104116399472529-332-780-781AdjustedEPSUS007600290033011301340150-332-780-781Grossmargin368366367383386386-14ppt-2ppt-19pptEBITmargin819090109116119-27ppt-27ppt-3pptNetprofitattmargin745960758286-01ppt-23ppt-26pptSourceCompanydataCMBIGMestimatesFigure2CMBIGMestimatesvsconsensusNewConsensusDiffUSmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue361117651942464450059379-222-647-793Grossprofit1330645713176319083636-245-662-804EBIT294158174457482561-357-672-690AdjustedNPatt266104116298304414-107-659-720AdjustedEPSUS007600290033008200760104-73-612-684Grossmargin368366367380381388-11ppt-16ppt-21pptEBITmargin819090989660-17ppt-07ppt3pptNetprofitattmargin7459606461441ppt-02ppt16pptSourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE225Sep2023FocusChartsFigure3AnalysisofthecurrentvaluationandamorefairvaluationExcashCurrentCurrentcurrentFY24EmarketmarketmarketNetprofitcapHKcapUScapUSattUSFY24EEx-BreakdownofcurrentvaluationmnmnmnmnFY24EPEcashPERemarksJoyoung37804869525168discountstoJoyoungs159x34discountstoIntlsmallappliancesSharkNinja7729911090averageof137x59dicsountstoAHsmallappliancesTotal455258534010625532averageof133xPotentialPotentialFY24EmarketmarketNetprofitAmorefairvaluationCMBIsroughcapHKcapUSattUSestimatesmnmnmnFY24EPEAssumption20smallcapdiscounts20holdingJoyoung592676295280discounts20AvsH-sharesdiscountsSharkNinja94312111011020smallcapdiscountsTotal6869883106283Numberofsharesmn3495ImpliedvaluepershareHK19740dicsountstoAHsmallappliances18080CMBInewtargetpriceHKaverageof133xSourceBloombergCMBIGMestimatesFigure4FinancialforecastsoftheretainedgroupexcludingSharkNinjaex-APACFinancialsInUSmnFY20FY21FY22FY23EFY24EFY25E1H222H221H232H23ESalesbysegmentJoyoung143115241646639887491940SharkNinjaAPAC183240296647283100Total1614176519427039605741040GrowthJoyoung78-236SharkNinjaAPAC32232838Total910-188NetprofitattJoyoung8995104SharkNinjaAPAC81115Total9710611966474660GrowthJoyoung79SharkNinjaAPAC3132Total912-3028NPmarginJoyoung626263SharkNinjaAPAC464649Total60606194498058SourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE325Sep2023Figure5FinancialforecastsofJSglobalconsolidatedlevelFinancialsInUSmnFY20FY21FY22FY23EFY24EFY25E1H222H221H232H23ESalesSharkNinjaex-APAC2508336133781997--152918491720287Theretainedgroup1688179016631614176519427039605741040Total4196515150413611176519422232280922941327GrowthSharkNinjaex-APAC34005-409-1000na13-84Theretainedgroup60-71-3094100-188Total228-21-284-5111003-53NetprofitSharkNinjaex-APAC295326245112--1151309319Theretainedgroup1071351139711612966474651Total40246135820911612918117718128GrowthSharkNinjaex-APAC103-249-542-1000na-19-86Theretainedgroup262-163-140196111-309Total145-224-415-4451110-84NPmarginSharkNinjaex-APAC118977256nana75705465Theretainedgroup63756860666694498049Total96897158666681637921SourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE425Sep2023ValuationFigure6Peersvaluation3yrs12mUpPBROEYTDPriceMktCapYearPExPEGYieldTPDown-xperfxCompanyTickerRatingLCLCsideHKmnEndFY1EFY2EFY2EFY2EFY1EFY1EFY1EAHsharesSmallHomeAppliancesJSGlobal1691HKBUY184125474343Dec-222154028401134168Joyoung002242CHNRna1442na11843Dec-22183159321751743125Vesync2148HKBUY6713151133663Dec-227358142030025348ZhejiangSupor002032CHNRna4993na43129Dec-2218516657303294010GDXinbao002705CHNRna1800na15934Dec-2214712919130212381BearElectric002959CHNRna5929na9940Dec-2219115934181112217EcovacsRobotics603486CHNRna4935na30482Dec-22176148372122519323BeijingRoborock688169CHNRna28131na39603Dec-22229194341461107590KingcleanElectric603355CHNRna2713na16671Dec-2214313136245162532Avg15013329187143837Med17614834181162532AHHomeAppliancesMideaGroup000333CHBUY6779570519429007Dec-22118107252121645101GreeElectric000651CHNRna3671na221354Dec-227770182451363136HaierSmartHome600690CHNRna2423na236527Dec-2213511822164132809HaierElectronics6690HKBUY3091246026236527Dec-2212911320166123075HisenseHome921HKNRna1950na32446Dec-22105921919404391265HisenseHome-A000921CHNRna2362na32446Dec-22136116251900537793WhirlpoolChina600983CHNRna822na6746Dec-22nananananana188HangzhouRobam002508CHNRna2742na27863Dec-2213612123174112312VattiCorporation002035CHNRna607na5509Dec-221028914131024396Avg117103211850939276Med123110211821238101InternationalSmallHomeAppliancesTechtronic669HKNRna79na145593Dec-2218515532183202289SmithAOCorpAOSUSNRna65na76696Dec-22181170522980519139HelenOfTroyHELEUSNRna116na21824Feb-231301161713706na44DeLonghiSpaDLGIMNRna22na27164Dec-2215914218116132531IrobotCorpIRBTUSNRna37na8083Dec-22nanana380na00225SebSaSKFPNRna88na40596Dec-22122101141200628127KoninklijkePhilipsPHIANANRna19na148442Dec-2216713614430145434Avg1571372574082366Med16313918120062344InternationalHomeAppliancesWhirlpoolCorpWHRUSNRna13265na56865Dec-22827631361005362Ingersoll-RandIRUSNRna6404na202526Dec-22231210271190701226ElectroluxAbELUXBSSNRna112na22290Dec-223519019230129203DaikinIndustries6367JPNRna242850na375642Mar-23253227291193410202PanasonicCorp6752JPNRna1732na224255Mar-23102113101090820559FujitsuGeneral6755JPNRna279900na16155Mar-23210190211080913116LgElectronicsInc066570KSNRna103100na98837Dec-221037109870308192Samsung005930KSNRna688000na2406005Dec-2247715013287720244Avg226141201190219130Med220131201090516197SourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE525Sep2023Figure7Forward12MPEvaluationbandSourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE624Sep2023AssumptionsFigure8CMBIGMassumptionsUSmnFY20AFY21AFY22AFY23EFY24EFY25ESalesbybrandUSmnJoyoung146314361325142515241646SharkNinja2733371537162186240296Others------Total419651515041361117651942SalesgrowthbybrandJoyoung143-19-77757080SharkNinja57435900-412-890230Others------Total391228-21-284-511100SalesbysegmentgrowthCleaning504155-11-480-783176Foodpreparation22256-31-106-29086Cooking416418-57-198-48793Others294456189-132-37189SalesbyregiongrowthChina132-28-65-1514491NorthAmerica516341-12-430-1000DIV0Europe103636725-350-1000DIV0Othermarkets45178612400200150GPmarginsbysegmentJoyoung327305321320320317SharkNinja465371365368628631Others455433424427428428Total415374373368366367OpexbreakdownDA-14-11-12-14-25-21AdminexpexDA-102-94-109-111-95-98AP-67-61-58-58-55-55SDcostsexAP-99-96-99-107-105-107Sellingdistributioncostssales-166-157-157-166-160-162Adminexpensessales-116-104-121-126-120-119OPmargins15012010386104103Effectivetaxrate236199220200180180NPattmargins828266738286NPattgrowth7171221-210-430-439119SourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE724Sep2023FinancialSummaryINCOMESTATEMENT2020A2021A2022A2023E2024E2025EYE31DecUSmnRevenue419651515041361117651942Costofgoodssold245332263161228111201229Grossprofit1743192418801330645713Operatingexpenses1183134614001052495547Sellingexpense696809790598283315Adminexpense487538610454212232RDexpense000000Others000000Operatingprofit620611509294158174Otherincome6033291578ShareoflossesprofitsofassociatesJV015000EBITDA723724637396246256Depreciation636672534337Otheramortisation404856494545Interestincome1188172626Interestexpense802847353535Otherincomeexpense2417181478Pre-taxprofit527575457261142158Incometax12411499522628Minorityinterest584025201010Netprofit402461358209116129BALANCESHEET2020A2021A2022A2023E2024E2025EYE31DecUSmnCurrentassets271427792582262123482654Cashequivalents571555504194817742030Accountreceivables120412461198297290319Inventories575782646187153168Prepayment121851591145661STbankdeposits332935353535Othercurrentassets2098240404040Non-currentassets194020302054198719171854PPE208206219202177159InvestmentinJVsassos272730303030Intangibles562588609563520477Othernon-currentassets114312081195119311901188Totalassets465448094636460942654508Currentliabilities1618162315951344783837Short-termborrowings4785135135135135Accountpayables885879688625307337Taxpayable28215555Othercurrentliabilities658638767579336360Non-currentliabilities1116109797699610061016Long-termborrowings893857722722722722Othernon-currentliabilities223240254274284294Totalliabilities273427202571234017891852Sharecapital11321034971971971971Retainedearnings000284443621Otherreserves78810551093101410621064Totalshareholdersequity192020892065226924762656Minorityinterest000000Totalequityandliabilities465448094636460942654508PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE824Sep2023CASHFLOW2020A2021A2022A2023E2024E2025EYE31DecUSmnOperatingProfitbeforetaxation527575457261142158Depreciationamortization1031131281028882Taxpaid102133135522628Changeinworkingcapital242991911544624Others1017371494243Netcashfromoperations6533305011515215258InvestingCapitalexpenditure686496361819Acquisitionofsubsidiariesinvestments165154000Others1272637000Netcashfrominvesting211141113361819FinancingDividendpaid26515523509453Netborrowings3991793000Proceedsfromshareissues13800000Sharerepurchases0378000Others2102733353535Netcashfromfinancing317202373355918NetchangeincashCashatthebeginningoftheyear42157155550419481774Exchangedifference25266000Others12513141444174256Cashattheendoftheyear571555504194817742030GROWTH2020A2021A2022A2023E2024E2025EYE31DecRevenue39122821284511100Grossprofit54710423292515105Operatingprofit173414167423462102EBITDA12770212137837840Netprofit3723145224415444112PROFITABILITY2020A2021A2022A2023E2024E2025EYE31DecGrossprofitmargin415374373368366367Operatingmargin148119101819090EBITDAmargin172141126110140132ReturnonequityROE233230172974950GEARINGLIQUIDITYACTIVITIES2020A2021A2022A2023E2024E2025EYE31DecCurrentratiox171716193032Receivableturnoverdays873868885300600600Inventoryturnoverdays721768825300500500Payableturnoverdays1053998904100010001000VALUATION2020A2021A2022A2023E2024E2025EYE31DecPE151214215449PEdiluted151214215449PB030303020202PCFPS222913090808Divyield2132390016894105SourceCompanydataCMBIGMestimatesNoteThecalculationofnetcashincludesfinancialassetsPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE924Sep2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBIGMwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE10