研究报告全文：MN13Oct2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateAntaSports2020HKEarningscutandde-ratingmayendhereFor3Q23wethinkAntasresultwassoftbutFILAsperformancewasupbeatTargetPriceHK10999GivenabetterretailsalestrendinSepto10-1holidaysandalreadylowPreviousTPHK10797investorsexpectationwebelieveturnaroundislikelynomoreearningscutandUpDownside202de-ratingandhencecurrentvaluationof23xFY23EPEistoodemandingCurrentPriceHK9150Antas3Q23performancewasrelativelysoftAntasretailsalesgrewbyHSDin3Q23belowCMBIestof11draggedby1slowe-commerceChinaConsumerDiscretionarysalesgrowthatLSDvsofflinesHSDand2relativelyweakdemandfordomesticfashionproductsMeanwhileretaildiscountwidenedto28offWalterWOOvs2Q23s27offand3Q22s26offInventorytosalesratiowentupto85237618776walterwoocmbicomhk5monthsin3Q23from45to5monthsin2Q23Butseasonallyspeakingthisisnormalasthebrandwouldusuallystockupforthe10-1holidaysRaphaelTSEAntasFY23EsguidancewasmaintainedandweforeseeastableOP85239000856marginWearecautiouslyoptimisticonAntabrands4Q23EretailsalesraphaeltsecmbicomhkgrowthCMBIestof17because1salestrendhasbeensequentiallyimprovingfromJul-AugtoSepand10-1holidays2thelowisbaseabeatStockDatacouldeasilyhappeniftherecoveryratesustainshencewedothinkFY23EMktCapHKmn2473546targetHSDto10retailsalesgrowthistotallyachievableRetailAvg3mthstoHKmn5351discountsinourviewmaynotwidenin4Q23Easaggressivepromotionis52wHighLowHK124006900notthefocusfordouble11festivalwillfocusmoreonmarginsMoreoverTotalIssuedSharesmn27033eventhoughAPexpenseswillbehigherin2H23Evs1H23duetonewSourceFactSetsponsorshipsfortheNBAplayersandmarketingaroundAsianGamewestillexpecta21OPmarginin2H23Esimilarto1H23and2H22ShareholdingStructureMrDingShizhongFamily545FILAs3Q23resultwasslightlybetter-than-expectedFILAsretailsalesBlackRockFund16growthwasatlow-teensin3Q23beatingCMBIestof10thanksto1SourceHKExresiliente-commercesalesgrowthdespiteahighbaselastyear65growthin3Q22and2successfulproductsreformnewproductsincludingSharePerformancethefunctionalandfootwearproductsareallsellingwellRetaildiscountsAbsoluteRelativewasdecentat24offin3Q23similartothatin2Q23butbetterthan1-mth28163Q22s26offInventorytosalesratiowasalsoat5monthsin3Q23also3-mth130168higherthan2Q23s45to5months6-mth-184-92SourceFactSetFILAsFY24EguidancestayedbutweraisedourOPmarginforecastsWearehighlyconfidentthatFILAcanachieveitsFY24Etarget10retail12-mthPricePerformancesalesgrowthbecausethebenefitsfromproductreformandstorerevamparestillthereMoreoverwealsoexpectGPandOPmargintoimproveYoYthanksto1lessretaildiscounts2moresalesfromlive-streamingorothernewplatformsmarginsarebettervstraditionale-commerceplatformsand3lessmarketingexpensesonnewstoresnotmanynewopeningYTDMaintainBUYandraiseTPtoHK10999basedon27xFY23Eunchangedvs5-yearaverageof26xsupportedby1525salesNPCAGRduringFY22-25EWerevisedupFY23E24E25ENPforecastsbySourceFactSet211tofactorinfasterFILAsalesgrowthRecentReportsChinaConsumerSectorAninlineEarningsSummarygoldenweekbutwewillstaycautiousYE31DecFY21AFY22AFY23EFY24EFY25E10Oct23RevenueRMBmn4932853651626117167080675JNBYDesign3306HKAnall-YoYgrowth38988167145126roundedbeatandanoptimisticoutlookOperatingprofitRMBmn113721122914771174282048411Sep23NetprofitRMBmn8219082450111023136803162139Xtep1368HKThegrowthstoryisEPSReportedRMB277272364448531intactdespitevolatilityYoYgrowth4921733723218524Aug23PEx269300225182154AntaSports2020HKCostscontrolPBx7067564639andefficiencygainsarethekeysYield111516222923Aug23ROE311267307313310ChinaLilang1234HK1H23inlineNetgearing393539629694741andFY23EguidancemaintainedSourceCompanydataBloombergCMBIGMestimates17Aug23PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk13Oct2023OtherbrandsresultswereinlineOtherbrandsretailsalesgrowthwasat45to504060forDescenteKolonin3Q23sloweddownfrom70to75in2Q23butremainedveryfastInventorytosalesratioandretaildiscountwasfairlystableWereckonthe40retailsalesgrowthtargetisalmostcertainandOPmarginshouldcontinuetoimproveasoperatingleveragewillcontinuetokickinEarningsrevisionFigure1EarningsrevisionNewOldDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue626117167080675619607091179805111111Grossprofit385574479750798379724421750176151312EBIT147711742820484144941719820249191312Netprofitatt10144125001481599571233814647191311DilutedEPSRMB363744825312357044245252191311Grossmargin61662563061362462903ppt01ppt01pptEBITmargin23624325423424325402ppt01ppt0pptNetprofitattmargin16217418416117418401ppt0ppt0pptSourceCompanydataCMBIGMestimatesFigure2CMBIGMestimatesvsconsensusCMBIGMConsensusDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY23EFY24EFY25ERevenue6261171670806756202671397815540904-11Grossprofit3855744797507983842044577512850405-09EBIT147711742820484144451671819473234252Netprofitatt10144125001481597881173613828366571DilutedEPSRMB363744825312351541864926357178Grossmargin616625630619624629-04ppt01ppt01pptEBITmargin23624325423323423903ppt09ppt15pptNetprofitattmargin16217418415816417004ppt1ppt14pptSourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE213Oct2023OperatingnumbersFigure3SportswearbrandssalesgrowthtrendOperatingnumbers1Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q233Q23E4Q23ENikeChinasales-418194291-24-8-20-13611288AdidasChinasales-580-57156-16-15-24-35-35-27-50-916520AntabrandsSSSG-ve20-veLow-veMid-veHigh-Antabrandsretailsales-veLSDveLSDveLSD40-4535-40-veMSDveMSD-veHSDveMSDveHSDveHSD1925teensteensteens-ve20-veMid--veLow--veMid-Corebrand-veLSD-veMSD-veMSD35-4035-40veHSDveMSDveLSDveHSDveHSDveHSD25teensteensteens-ve20-veLow--veLow-veMid--veHigh-KidsveMSD45-50Over20veMSD20-25veLSDveHSDveMSDveHSDveHSD25teensteensteensteensOnlineveMSDOver40Over50Over25Over60Over4525-3030-35Over30veHSDveHSDveMSD-veLSDveMSDveLSDveLow-veLow--veLow-veHigh-veLow-FILAbrandsretailsales-veMSD20-2525-3075-8030-35veMSDveHSDveMSD-veHSDveHSD28teensteensteensteensteens-ve20--veMid-ClassicCorebrandveMSDveMSDveMSD80Over20FlatFlat-veMSD-veDD-veLSDveLSDveMSDveHSD25teensveMid-veMid-veMid--veLow-Kids-veLSDOver30Over30Over20100Over40veHSDveLSD-veHSDveLSDveHSDteensteensteensteensveMid-veLow-FusionveMSDOver70Over50Over50150Over80Over20-veMSDveLSDveHSD-veHSDveLSDveHSDteensteens-veMid-Online160Over80Over9070-80Over40Over4020-2525-30Over20veMSDOver65Over40Over4060-65teens115-veLow-Otherbrands-veHSD25-3050-5555-6070-7535-4030-3540-4520-2540-4575-8070-7545-50120teensveMid--veLow-DescenteOver6090Over801501005040-4540-45Over20Over3570-7560-6540-45teensteens-veHigh--veHigh--veHigh-KolonveLSD20-2530-40Over75403040-45Over20Over5510010060-65teensteensteensveLow-veLowveHighveLowveLow-veLow--veHigh-LiNinggroupsSSSGna-veMSDveLSDnaveHSD-veHSDveLSDteens80202020teensteens-veHigh-veLowveLowveMidveMid-veHigh--veHighDirectretailna-veMSDveHSDnaveMSD-veLSDveHSDteens90302020teens20-veLow-veLowveMidveHigh-veLow--veHigh--veLowWholesalesna-veMSDveMSDnaveHSD-veLSDveLSDteens7020teensteensteens20veLow-veMidveHighveLowveHighveMidveHighveMidveLow--veLowE-CommercenaveLSD-veLSDveLSDteens20303080302030teens20-veHigh-veMid-veHighveLowveLowveLowveHighveMid--veLow-veMid-LiNinggroupsretailsales-veMSDveMSD-veHSDveMSD930teensteens8090403020teensteensteens-veMid-veLow-veLowveHighveMidveHighveMidveLow-veMid-veMid-veHighDirectretailFlatveMSD-veHSD30teens908030203020teensteens20-veHigh-veLow-veLowveLowveHighveHighveLowveLow--veLowveMid-Wholesales-veHSD-veLSD-veHSDveMSDteensteens8090302020teens20teensveLow-veHighveLowveMidveHighveMidveLowveMidveMid-veLow-veLow-E-Commerce100veMSDveMSDteens2040309050403020teensteensXtepbrandsSSSG-ve20-Mid50-veMid-veMid-veHigh-Xtepbrandsretailsales-veLSDveMSDveHSD30-3520-2530-3520-25-veHSD2018302560teensteensteens361DegreebrandsSSSG-ve20--veLow-veHigh-veLow-veHigh-veHigh-veLow-veMid-veLow-veLow-361Degreebrandsretailsales-veHSDveLSD15-20Flat25teensteensteensteensteensteensteensteensteensKids20-2530-3515-2025-3020-2520-2520-25veLSD20-2520-25E-Commerce35-40504045253530PouShengsSSSG-33-18-13-132-11-25-29-21-25-10-27013PouShengssales-2500148-15-25-27-25-24-8-20717-120-ve20--veHigh--veHigh-veHigh--veLow-veLow-Topsportsretailsales-veLSD81525teens20teensteens20veMid-veMidto-veLowveLowveLow-veLowveLow-veHigh--veLow-veMid-DongXiangsSSSG-veMSDveMSDveHSDtoHighHigh--veMSDtoMid-toMid-toMid-toMidSDtoMidSDteenstoMidSDteensSDteensteensteensteensveLow-veMidto-veMidto-veMidveLow-ve25-veLow-veLow--veMid-veMid-DongXiangsretailsalesveMSD60-70toMid-High--veMSDHigh-veLSD20totoMid-to30MidSDteensteensteensteensteensteens30teens-ve30--veLow-DirectretailFlatveMSD70-7535teens-veLow-ve30-ve30-ve20-E-Commerce35-40teens353530SourceCompanydataCMBIGMestimatesNikesyearendisinMayeg4Q18calendaryear2Q19fiscalyearSep-Nov2018PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE313Oct2023ValuationFigure4Peersvaluationtable3yrs12mUpPBROEYieldYTDPriceMktCapYearPExPEGTPDown-xperfxCompanyTickerRatingLCLCsideHKmnEndFY1EFY2EFY2EFY0FY1EFY1EFY1EHsharesSportswearAntaSports2020HKBUY10999915020259185Dec-22225182552180918106LiNingCo2331HKBUY529735005192262Dec-22192159311681519483XtepIntl1368HKBUY11417365519419Dec-22156126201170833153361DegreesIntl1361HKNRna421na8705Dec-228673091090536264TopsportsIntl6110HKBUY9006034937393Feb-2314412133180086303PouShengIntl3813HKNRna066na3515Dec-226554044601na120ChinaDX3818HKNRna027na1590Mar-235042021200159129Avg131108221210655104Med144121201170834120InternationalSportswearNikeNKEUSNRna9865na1174352May-232642261033391714157AdidasADSGYNRna17140na255221Dec-22na40465220003345PumaPUMGYNRna5370na67001Dec-2222616630128121553UnderArmourUAAUSNRna674na22617Mar-23134108142082700337LululemonLULUUSNRna37336na369549Jan-233062671143150900165SkechersSKXUSNRna4848na58684Dec-22142119181310600156OnHoldingONONUSNRna2466na61334Dec-22486335636304na437VfCorpVFCUSNRna1616na49154Apr-23806920390174415ColumbiaCOLMUSNRna7120na34156Dec-22157134211622617187WolverineWWWUSNRna775na4820Dec-2216652175650153291MizunoCorp8022JPNRna467500na6503Mar-2312010910902816662AsicsCorp7936JPNRna487100na48405Dec-22290249491581312672Avg2161874487071983Med16615025129071451SourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE413Oct2023Figure5Forward12MPEvaluationbandSourceBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE513Oct2023AssumptionsFigure6MajorassumptionsMajorassumptionsFY21AFY22AFY23EFY24EFY25ESalesbysegmentgrowthShoes507174170125100Apparels32131167161145Accessories36564120120120Total38988167145126SalesbybrandgrowthAnta477141120120110AntaKids500150100140130FILA251-1417012090DescenteOthers511261550260240E-commerce61617780170150Total38988167145126SalesnetworkAnta68326924704971247174AntaKids25712679285429292979FILA20541984195019752025DescenteOthers459477491521551Total1191612064123441254912729GPmarginsAnta523532534540545FILA705680690700700Others705664710725740Total616602616625630OpexbreakdownAPExpensessales124103969896Labourcostssales135151146146147RDexpensessales5960616060Rentalexpensessales116115111111107Sellingdistributioncostssales360366353353348Adminexpensessales5967585857OPmarginAnta206217209218230FILA247200265270280Others184206240250260Total223209235242253Effectivetaxrate269274260260260NPattmargin157141162174184NPattgrowth496-17337232185SourceCompanydataCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE613Oct2023FinancialSummaryINCOMESTATEMENT2020A2021A2022A2023E2024E2025EYE31DecRMBmnRevenue355124932853651626117167080675Costofgoodssold148611892421333240542687329876Grossprofit206513040432318385574479750798Operatingexpenses128882068123216257282944832654Sellingexpense107661775319629217652497527755Adminexpense125118122308251428143022RDexpense87111161279144916591878Others000000Operatingprofit88261137211229147711742820484Otherincome106316492127194120782340ShareoflossesprofitsofassociatesJV6018128188430565EBITDA93161194411971153391797920917Depreciation414443474329317301Otheramortisation76129268240234132Interestincome27139260993111401373Interestexpense407443511511511511Otherincomeexpense000000Pre-taxprofit80891124011355150031848721911Incometax252030213110390148075697Minorityinterest40749965595811811399Netprofit556982198245111021368016214BALANCESHEET2020A2021A2022A2023E2024E2025EYE31DecRMBmnCurrentassets327173990245445548726528776408Cashequivalents153231759223919310953939148345Accountreceivables66146914752087761004611308Inventories548676446254724980999004Prepayment000000STbankdeposits502469896989698969896989Othercurrentassets270763763763763763Non-currentassets191502276622803227982353724636PPE218428533131355340964763InvestmentinJVsassos965890279055886792979862Intangibles1579153112811060844730Othernon-currentassets572993559336931892999281Totalassets5186762668682487767088824101044Currentliabilities117151594316954186722042122192Short-termborrowings196817481748174817481748Accountpayables237631463546399944684967Taxpayable150718161816181618161816Othercurrentliabilities586492339844111101238913662Non-currentliabilities143281506215062150621506215062Long-termborrowings124561142511425114251142511425Othernon-currentliabilities187236373637363736373637Totalliabilities260433100532016337343548337254Sharecapital261261261261261261Retainedearnings181852266324832313393879946979Otherreserves556759997744798287479617Totalshareholdersequity240132892332837395834780856857Minorityinterest181127403395435355346933Totalequityandliabilities5186762668682487767088824101044PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE713Oct2023CASHFLOW2020A2021A2022A2023E2024E2025EYE31DecRMBmnOperatingProfitbeforetaxation80891124011355150031848721911Depreciationamortization490572742569551434Taxpaid218126773110390148075697Changeinworkingcapital34612821796533371396Others452030084836998154Netcashfromoperations74581186111265118371394116198InvestingCapitalexpenditure6491360751751860968Acquisitionofsubsidiariesinvestments84940000Others119032150000Netcashfrominvesting19234669751751860968FinancingDividendpaid140424563676339942755765Netborrowings33431960000Proceedsfromshareissues2100000Sharerepurchases000000Others59552295511511511511Netcashfromfinancing122949474187391047866276NetchangeincashCashatthebeginningoftheyear82211532317592239193109539391Exchangedifference338240000Others676422456327717682968954Cashattheendoftheyear153231759223919310953939148345GROWTH2020A2021A2022A2023E2024E2025EYE31DecRevenue4738988167145126Grossprofit10747263193162134Operatingprofit0928813315180175EBITDA7828202281172163Netprofit1047603347232185PROFITABILITY2020A2021A2022A2023E2024E2025EYE31DecGrossprofitmargin582616602616625630Operatingmargin249231209236243254EBITDAmargin262242223245251259ReturnonequityROE253311267307313310GEARINGLIQUIDITYACTIVITIES2020A2021A2022A2023E2024E2025EYE31DecNetdebttoequityx020405060707Currentratiox282527293234Receivableturnoverdays680512512512512512Inventoryturnoverdays134714741070110011001100Payableturnoverdays584607607607607607VALUATION2020A2021A2022A2023E2024E2025EYE31DecPE415269300225182154PEdiluted415269300225182154PB877067564639PCFPS256280201201171147Divyield081115162229EV241450623597362296464222470321417472052209EVSales684843363025EVEBITDA25919819214511998SourceCompanydataCMBIGMestimatesNoteThecalculationofnetcashincludesfinancialassetsPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE813Oct2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBIGMwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE9