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Company Update

Hong Kong: Batteries & Components Action
HOLD (Unchanged)
TP upside (downside) (10.4)% Close 23 August, 2010
Price 12M Target Previous Target Hang Seng Index HK$44.65 HK$40.00 HK$67.00 20,889.0

24 August, 2010 Our view
► The lack of visibility across BYD’s business and the lack of near term catalysts suggest weak in the short term. BYD’s share price should remain

What’s new?
► We cut our 2010, 2011, and 2012 net profit forecasts by 9.7%, 13.1%, and 15.8%. ► We cut our TP to HK$40 to

reflect a more conservative earnings visibility.

valuation method, given low

Company profile: BYD operates three main business lines; automobiles, rechargeable batteries, and handset component production and assembly. The company is also looking to develop a new energy business.
Share price performance relative to Hang Seng Index
92
Share Price (HK$) Performance relative to Hang Seng Index (%)

Byd Co Ltd - H (1211 HK)
66 56 46

82

No longer a high growth story?
Maintain HOLD: We came away more concerned about BYD’s core businesses after the analysts’ 1H10 results presentation on August 23. We see low visibility for many of BYD’s core businesses, and management was not able to give much guidance. Revising down net profit estimates: We cut our 2010, 2011, and 2012 net profit forecasts by 9.7%, 13.1%, and 15.8% to reflect 1) lower than expected ASP in the auto division in 1H10 and subsequently 2H10F the company reported better than expected cost management and effective tax rate in 1H10. Lowering TP to HK$40: When we first downgraded BYD’s and 2) lower than expected margins at its batteries division. However,

72

36 26 16

62

52 6 42 Aug-09 -4 Nov-09 Feb-10 May-10

Market cap 6M avg. daily turnover Outstanding shares Free float Major shareholders Net debt/equity BVPS (2010F) P/B (2010F)
Financial outlook (RMB mn) Year to Dec Sales Op. profit Net profit EPS (RMB) EPS growth (%) DPS (RMB) P/E (X) Div. yield (%) ROE (%) Primary Analyst: Johnny Wong +852 39699524 2009 39,470 4,765 3,794 1.77 253.9 0.07 22.0 0.2 23.4 2010F 50,704 5,572 4,673 2.05 16.1 0.07 19.0 0.2 22.4

US$13,066.7 mn US$50.9 mn 2,275.1 mn 48.9% Mr. Wang Chuanfu, 25.6% 10.7% RMB8.82 4.4x

recommendation to HOLD on June 7 (see our note “Most likely to see

to deteriorate so rapidly. We now believe a more conservative valuation
2011F 60,450 6,426 5,319 2.34 13.8 0.08 16.7 0.2 20.8 2012F 69,827 7,411 6,033 2.65 13.4 0.10 14.7 0.3 18.9

labor costs rise”), we were not expecting the company’s fundamentals

methodology makes sense, and we therefore change our target price from HK$67 to HK$40 to reflect the lower visibility in many of the business divisions such as autos, alternative energy vehicles, and batteries. Our recommendation remains a HOLD.

johnny.wong@yuanta.com

ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES BEGIN ON PAGE 7.
Yuanta does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

2010 Byd Co Ltd .000 should be fully discounted into the share price already. from solar storage batteries.000 about a month ago). but we do not view this as a high margin business. This suggests to us that the prospects or the visibility of these traditional core businesses may not be high in the short term. ► The gross margins for the F3 model are starting to decline. Auto division The company reaffirmed its 2010 unit sales target of 600. This led to the 21% YoY environment will likely continue. rather than Battery division BYD mentioned that the competitive situation in the mobile phone sector forced BYD’s customers to place more stringent controls on costs. which we attribute to falling ASPs as a result of inventory clearing promotions. One bright spot in this division was that BYD booked about RMB200 mn in revenues going forward with net margin in the area of 4%. Now.No longer a high growth story? We came away from BYD’s 1H10 analyst presentation more concerned about the We came away from BYD’s 1H10 analyst presentation more concerned about the company’s core businesses company’s core businesses. such as electric vehicles and energy storage stations. we believe the following points may not be fully discounted.H (1211 HK) Company Update Page 2 of 9 . Nickel battery revenues grew 31% YoY.0 bn Yuanta Hong Kong: Batteries & Components 24 Aug. While the 600. it seemed that Chairman Wang spent more time explaining his vision of the future businesses (in particular new energy) than the company’s traditional core businesses. ► The expected alternative energy vehicles sales may be delayed. ASPs were some 10% lower than our expectations in 1H10. ► Chairman Wang also admitted that 3Q10 unit sales will continue to be slow (and should decline sequentially). quantities. While we agree with the strategy. Chairman Wang’s tone seems to have changed since the 2009 results five months ago when the F3DM model was first up for sale to the general public and also assured investors that E6 model export sales would start in 2H10. Certainly. but he expects 4Q10 unit sales to pick up. we do not believe this strategy will pay off in time to help this division grow in 2H10 and 2011. decline in lithium battery revenue in 1H10. BYD is likely to go after more taxi contracts in 2H10. Management guided for annual revenues of RMB1.000 units (revised down from 800. BYD suggests this competitive operating BYD management said that the one of the strategies for the batteries division going forward is to find newer and more diversified applications. Chairman Wang is suggesting that alternative energy vehicle sales will not “explode” in 2010 and that exports to the US in 2H10 will likely be in small individual buyers as was the previous plan. To us.

7) (13.0) (21.138 1.8%.184 873 10.911 3. 13. Potential diversification away from the core businesses is also a concern for us Management confirmed that it was looking into the home appliance market.738 19. As at the end of June 30.4) (15.7) (12.2) 9.7%.1) 6.615 5.5 33.756 6.8) (15.5 50.165 3. However. the home appliance a tough time breaking in. The net debt increased to RMB4.5) (16. management noted that BYD will likely increase its wages to its staff in the area of between 6% and 10% in 2H10.882 4. We believe continuing capital expenditure (autos and new energy) is the reason for the increased need for cash.6 4.3) (19.0 9.8 21.7 9.5 20.0) (19.15 %Chng (7.5 8.7) (9.9) New 60. market is a highly competitive. When asked.Other points Potential diversification away from the core businesses is also a concern for us.1) 8.266 1.303 mn in December.162 3.832 7. Overall.915 873 8. ► Lower than expected margins at batteries division.187 1.663 6.8) Source: Yuanta estimates and 15.2) 9.2) 13.9) (24.726 881 2. 2010.2 10.7 11.223 3.770 4.411 7. 2011.673 2.426 6.043 835 (14.466 873 12.035 1. 2010 We have revised our earnings estimates based on the following major assumptions: ► Lower than expected ASPs in the auto division. 2009.241 5.505 6.407 4.340 (13.177 2.909 917 1.319 2.9 10.6 20.7 4.0) (9. Management was confident that employees will be satisfied and that no work stoppages will occur.662 14.089 3.938 11.2 21.572 5.69 %Chng (7.284 3.776 17.6 21.1 9.8 4.65 2012 Old 75.8 11.827 14.340 (14.8) (13.553 mn in June 30.033 2.562 3.160 2.1%.211 7.5 41.6 4.4) (9.490 47.490 31.115 2.4) 9.692 7.5 10. and 2012 net profit forecasts by 9. Management noted that it believes that it has expertise through its electronics and auto divisions and that the Chinese rural market is still untapped as a whole.579 16.524 3.3 21.5 27.765 19.6 8.0) (13.6) (10.450 12.8) (10.4) (25. BYD’s gearing levels were 25% compared to 8% at vs.146 2.9 4.490 39. low margin industry and we believe BYD would have the end of Dec 31. we lower our 2010. ► Better than expected cost management and effective tax rate.9 12.239 5. Figure 1: Summary of our changes to forecasts 2010 New Revenue Gross Profit Operating Profit Profit before tax Net profit EPS (Rmb) Margin (%) Gross Margin Op Margin Net Margin Revenue breakdown Autos Batteries BYDE Other handset Gross Profit breakdown Autos Batteries BYDE Other handset 6.28 %Chng (6.075 4.0) (19.9) (16.7 4. 2010 Byd Co Ltd .624 869 2.1) New 69. RMB1.05 Old 53.8 9.383 6.6 8.H (1211 HK) Company Update Page 3 of 9 .049 16.590 21.269 835 (13.531 9.563 14.3) (23.912 7.704 10.340 (15.9 11.748 835 (14.144 8.885 4. but has not decided on whether or when to enter the market. Yuanta Hong Kong: Batteries & Components 24 Aug.619 3.9) (13.179 6.34 2011 Old 65.

47 0.42% 0. As such. we believe a more conservative valuation methodology makes sense.9 Old 13. we arrive at target price of HK$40 and based on the current share price of HK$44.3x 8. we lower auto ASPs and the decline in lithium batteries).72 1.06) (0. Under the new valuation parameters. 2010 ‘Risk of wage inflation rising’. Under our base case scenario. it was not a surprise in hindsight for BYD Source: Yuanta estimates Figure 3: Key assumptions used in our peer group valuation New Autos EV/EBITDA Batteries EV/EBITDA WACC Beta 8.82 67.71) 0.42 41. we would expect the underperformance to continue.54 7.H (1211 HK) Company Update Page 4 of 9 . “Investigation by to underperform.72 (0. we switch back to the base were not expecting the fundamentals to deteriorate so quickly for BYD (such as the (such as the land investigation. Given the lack of catalysts in the stock for the next few months. our recommendation should be a HOLD. With BYD management guiding for low visibility in many of the business divisions such as autos. For each of the business segments we also use two different valuation methodologies to arrive at the valuation.38 (2.39) (27.78) (0. to derive our target price. please see our report from July 16. alternative energy vehicles. based on our valuation of each business segment. When we first downgraded BYD’s recommendation to HOLD two months ago.09 2.84) 67.56) (2. Bloomberg Yuanta Hong Kong: Batteries & Components 24 Aug.87 Source: Yuanta. recommendation from Buy to HOLD. We further argued that our target price had been set using our bull case valuation floor.23) 40 (rounded) Previous HK$ 52. based on our valuation of each business segment.40) (26.7x 10. They are generally. to derive our target price of HK$40 We use a sum of the parts (SOTP) methodology. 2010 Byd Co Ltd .98 5.65. we no longer use our case scenario until the visibility gets better. when we downgraded our lower valuation in order to compensate for the increase in earnings risk from rising scenario for alternative energy vehicles and that our base case valuation was the bull case scenario to arrive at our target price. a peer group valuation (EV/EBITDA) and a DCF.84 3.06 2.45) Ministry of Land to weigh on share price”).43 1. we use the average of peer group EV/EBITDA (under the bull case. and batteries. we use the high end of the comparative group) to arrive at our valuation.4x 9.2x 9.Valuation We use a sum of the parts (SOTP) methodology. Rather.27% 0. we argued that the market will probably use a wages. Combined with bad news In our June 7 report.88 Change HK$ (20.66 (1. Figure 2: BYD’s base case valuation New HK$ Autos Batteries BYDE Handsets (others) New energy Total Enterprise value Net Debt Equity Value 31.

0% 38.020) 5.0% 9.697 (64) 2.765 22.1% 7.0% 100% 2H2010F 26.774 0 60.118 (50) 3.4% 9.4% 11.2% 16.282) 2.085 10.1% 94.0% 6.967) 3.2% 51.4% 6.0% 0.6% 10.7% 10.067 0 23.049 19.068) 5.509 (285) (431) 3.9% 20.57 2.1% 108.0% 100% Source: Company data.398 0 39.9%) (7.275 20.8% 35.663 (5.486 10.132 11.553) 3.9% 0.1% 54.5% 47.114 9.0% 13.8% 12.007 14.275 20.7% 7.0% 100% FY2009A 39.458 (21.0% 9.0% 33.1% 13.068 (129) (272) 2.865) 3.960 17.165 (2.875 (102) 2.132 (12.458 (88) (192) 1.911 3.1% 27.673 2.765 (255) 4.6% 53.050 19.425 12.0% 100% 2H2011F 31.1% 6.H (1211 HK) Company Update Page 5 of 9 .366 0 26.555 0 31.510 6.572 (166) 5.06 2.219 0 28.6%) (0.5% 253.470 (30.308 (137) 3.8% 0.5% 16.2% 39.0% 10.17 2.940 (25.275 21.4% 53.337 9.6% 271.1% (0.9% 38.042 12.739) 3.4% 9.060) 1.925 8.990 9.7% 3.2% 10.9% (8.1% (6.2% 122.2% 0.239 (305) (615) 5.9% 19.0% 100% 2H2009A 23.458 7.1% 11.20 2. avg.5% 1.2% 9.171 (177) (343) 2.205) 4.319 2.9% 55.2% 15.5% 1.3% 148.3% 36.H’s semi-annual & annual earnings highlights (consolidated basis) (RMB mn) Sales COGS Gross profit Operating expenses Operating profit Non-op profit Pre-tax profit Minority Income tax Net income FD WA EPS (RMB) Wtd.991 4.617 (3.77 2.579 0 50.5% 148.337 (17.421 1.450 (47.905) 8.0% 100% 1H2011F 28.8% 33.9% 11.8% 44.7% 12.4%) (10.704 (40.9% 10.616 1.075 4.565 (3.5% 18.275 20.248) 5.2% 10.470 53.089) 10.9% 10.3% 13.Figure 4: Byd Co Ltd .189 23.9% 23.668 1.6% 18.081 14.275 21.275 20.794 1.0% 100% FY2011F 60.426 (187) 6.4% 8.7% 96.615 (4.331 0 16.786) 12.407 (306) (427) 4.246 8.6% 10.3% 9.704 53.0%) 2.0% 100% FY2010F 50.5% 0.151 21.17 2.940 6.34 2.6% 0.6% 39.400 (2.8% 13. of shrs Margin analysis Gross margin Operating margin Pre-tax margin Effective tax rate Growth (% HoH) Sales Operating profit Net income FD WA EPS Sales breakdown (RMBmn)* Passenger vehicles Batteries Handset components Others Total Sales breakdown (%)* Passenger vehicles Batteries Handset components Others Total 1H2009A 16.05 2.051 (197) (238) 2.047) 6.177 (2.464) 6.322) 6.2% 37.046 (3.156 12.246 (19.9% 7.3% 0.2%) (7.178 0.774 (167) (186) 2.9% 11.9%) 2.651 1.8% 8.0% 100% 1H2010A 24.2% 12.99 2.609 (151) 1.2% 10.805 16.0%) (7.0% 0.633 (139) (241) 2.6% 38. Yuanta Research estimates Yuanta Hong Kong: Batteries & Components 24 Aug.510 (22.213 0 24.937) 5.437 (3.9% 28.7% 0.8% 15.981) 2. no.252 0.5% 13.3% 57.3% 158.156 (105) 3.877 5.9% 10.6%) 1. 2010 Byd Co Ltd .0% 2.6% 10.450 56.

952 29.8) 7.197 2.7 12.Inc/(loss) Net extraordinaries Pretax income Income taxes Net profit EBITDA EPS (RMB) EPS (RMB) Bonus Adj.4 13.539 40.7 5.716 987 16.9 3.77 2010F 50.6 7.124 12.090 20.2 11.6 1.2 3.792 367 5.461.377 3.9 11.4 7.33 13.885) 7.450 15.174) 1.965 2.248) 5.4 1.891 8.842 91 (492) (401) 14 (91) 0 1.50 2009 39.0 5.982 2.5 9. & ST debt (X) Current ratio (X) Quick ratio (X) Net debt (RMB mn) BVPS (RMB) Valuation Metrics (x) P/E P/FCF P/B P/EBITDA P/S 19.844 8.609 28.7 2.205) 4.099 (796) 25.050 0 9.874 3.047) 6.3 158.6 14.089) 10.371 1.705.293 26.443 16.9 (6.880 3.653 1.9 0.705 24.427.275 0 13.068 2011F 6.3 (13.704 (40.8 8.827 (54.319 8.068 9.158 1.395 4.5 23.9 28.4 11.9 2.495 1. 2008 26.331 21.34 2012F 69.211 (1.6 11.9 0.334 4.519) (12) (3.500) 0 4.219 (2.4 2008 2009 2010F 2011F 2012F Source: Company data.377 3.2) 28.7 8.853 9.364 (88) 1.218 (7.547 (10.546) (2.05 Source: Company data.326 2.0) (16.031) 4.021 3.4 20.012 23.50 19.024) (1.5 56.1 7.7 16.653 3.905) 8.6 14.726 5.173 0.039 (149) 890 (1.2 10.191) 0 (10.033 2.1) 78.2 15.7 5.8 21.683 EBITDA Net profit EPS Profitability (%) Gross margin Operating margin EBITDA margin Net profit margin ROA ROE Stability Gross debt/equity (%) Net cash (debt)/equity (%) Int.922) 0 1.651 13.796 547 4.24 (19.8 30.9 6.275 0 30.435) 2009 3.900 2.450 (47.674 8. Change in other assets Investment cash flow Change in share capital Net change in debt Other adjustments Financing cash flow Net cash flow Free cash flow 2008 1.2 9.9 18.212 21.4 20.179 (799) 6.569) 5.615 (4.8 4. Yuanta Yuanta Hong Kong: Batteries & Components 24 Aug.1 0.9 94.379 4.0 (32.950) 13.278 5 14.5 8.923 2.6 0.581 (5.356 23.334 7.6 10.9 7.9 22.6 14.891 10.4 33.578 2012F 9.765 18 (255) (237) 0 (18) 0 4.3 Source: Company data.470 (30.305) 25.639.8 23.235 0 11.2 16.317 4.158) 198 39 (5.8 0.094 17.486 (6.50 0.8 15.015 (2.086 1.0 99.2 3.313) (7.286 2009 2.5 15.9 0.021 1.892) 1. coverage (X) Int.509 (431) 3.249 1.077 4.178 3.437 35 17.568 17.8 115.9 10.9 1.370 5.7 1.663 (5.8 13.620 18.275 0 18.9 34.5 9.123) 2.05 2011F 60.411 20 (232) (212) 0 (20) 0 7.764 30.8 8.044 2010F 4.8 3.8 2.356 2.7 1.159 19.6) (36.075 2012F 6.305) 0 (3.646 14.682 2010F 597 7.995) 14.024) 17.714 2.7 4.1 23.813) 0 0 1. cover (X) Cash flow/int.426 20 (187) (167) 0 (20) 0 6. Yuanta Key Ratios Year to Dec Growth (% YoY) Sales Op profit 26.1 16.4) 4. Yuanta Cash Flow Year to Dec (RMB mn) Net profit Depr & amortization Change in working cap.65 2.786) 12.832 (5.234 62.Inc/(loss) Net oth non-op.270 (3.991 32.347 1.634 4.9 2.958 Profit and Loss Year to Dec (RMB mn) Sales Cost of goods sold Gross profit Operating expenses Operating profit Interest income Interest expense Net interest Net Invst. 2010 Byd Co Ltd .418 22.000 (910) 3.794 1.0 0.414 14.565 (3.673 2.033 10.4 5.500) 0 0 (4.408 10.5 14.108) (37) (29) (7.3 2.107 225 3.34 2.407 (427) 4.788 (21.500) 0 0 (4.239 (615) 5.2 0.1 25.701 6.1 19.779 20.017 10.82 0.9 18.179 1.443 9.291 24.275 0 24.2 12.6 1.264 2. & ST debt cover (X) Cash flow int.Balance Sheet Year as of Dec (RMB mn) Cash & ST investment Inventories Accounts receivable Others Current assets LT investments Net fixed assets Others Other assets Total assets Accounts payable ST borrowings Others Current liabilities Long-term debts Others Long-term liabilities Total liabilities Paid-in capital Capital surplus Retained earnings Capital adjustment Shareholders' equity 2008 1.9 21.6 11. Yuanta 2.0 15.500) 0 0 (1.191) 27.1 18.0 55.752 9.475 (683) 20.8 0.77 1.7 271.594 6.034 18.545 20.9 (36.572 20 (166) (146) 0 (20) 0 5.7 13.0 31.7 12.9 5.400 (418) 0 (418) 19.916 6.3 12.0 22.443 3.100 32.6 4.6 20.907 2.9 68.0 13.0 4.374 54.H (1211 HK) Company Update Page 6 of 9 .65 Source: Company data.736 13.500) 0 (3.575 (4.017 42.5 253.673 7.708 2.3 15.05 2.716 862 17.409 (4.479 (796) 31.9 0. Others Operating cash flow Capex Change in LT inv.554 2.794 6.224 37.656 751 16.3 0.183 (4.596 2011F 5.659 18.1 19.5 6.7) 47.336.5 16.6 104.165 17.9 11.5 1.3 15.319 2.8 11.313 26.

and (2) no part of his or her compensation was. Note: Yuanta research coverage with a Target Price is based on an investment period of 12 months. catalysts.00 Rating BUY HOLD HOLD Analyst Johnny Wong Johnny Wong Johnny Wong Source: Bloomberg.00 68. We recommend investors add to their position. Employee bonus dilution is not reflected in A. related to the specific recommendations or views expressed by that research analyst in the research report. Our thesis is based on our analysis of the company’s outlook. is. financial performance. 1: 2: 3: Date 24 May 10 07 Jun 10 21 Jun 10 Closing Price (A) 59. Byd Co Ltd . C = target price adjusted for stock & cash dividends. Restricted: The rating and target price have been suspended temporarily to comply with applicable regulations and/or Yuanta policies. rating and target price are under review. directly or indirectly. HOLD: We have a neutral outlook on the stock based on our expected absolute or relative return over the investment period.00 68. B or C.Appendix A: Important Disclosures Analyst Certification Each research analyst primarily responsible for the content of this research report.00 67. in whole or in part. Under Review: We actively follow the company.H (1211 HK) – Three-year recommendation and target price history 87 77 67 57 47 37 27 17 7 Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Adjusted Target Price (C) 82.95 63.20 Target Price (B) 82. 2010 Byd Co Ltd .55 63. valuation and risk profile. catalysts. or will be. financial performance. We recommend investors reduce their position.H (1211 HK) Company Update Page 7 of 9 . Current distribution of Yuanta ratings Rating Buy Hold Sell Under Review Restricted Total: # of stocks 92 62 24 5 3 186 % 49% 33% 13% 3% 2% 100% Source: Yuanta Research Ratings Definitions BUY: We have a positive outlook on the stock based on our expected absolute or relative return over the investment period.00 67. valuation and risk profile. B = unadjusted target price. certifies that with respect to each security or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers. although our estimates. Our thesis is based on our analysis of the company’s outlook. Yuanta Hong Kong: Batteries & Components 24 Aug. valuation and risk profile. financial performance. Yuanta Research Notes: A = price adjusted for stock & cash dividends. Greater China Discovery Series coverage does not have a formal 12 month Target Price and the recommendation is based on an investment period specified by the analyst in the report. catalysts. SELL: We have a negative outlook on the stock based on our expected absolute or relative return over the investment period. Our thesis is based on our analysis of the company’s outlook.00 Feb-10 Share Price HK$ 87 2 1 77 3 67 57 47 37 27 17 7 Aug-10 No.

Investors should seek financial advice regarding the appropriateness of investing in any securities. without the express written consent of Yuanta Securities (Hong Kong) Co. as amended and SEC staff interpretations thereof). Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934. 2010 Byd Co Ltd . Central Hong Kong Yuanta Hong Kong: Batteries & Components 24 Aug. Li Po Chun Chambers. Yuanta research is distributed in the United States only to Major U. this research report may not be redistributed. Yuanta research is distributed in Hong Kong by Yuanta Securities (Hong Kong) Co. This material is prepared for general circulation to clients and is not intended to provide tailored investment advice and does not take into account the individual financial situation and objectives of any specific person who may receive this report.Global Disclaimer © 2010 Yuanta. Section 3 Nanking East Road. All rights reserved. investments or investment strategies discussed or recommended in this report. retransmitted or disclosed. The information in this report has been compiled from sources we believe to be reliable. This report provides general information only. is made as to its accuracy. in whole or in part or and any form or manner. completeness or correctness. Limited 23/F. 225. Neither the information nor any opinion expressed herein constitutes an offer or invitation to make an offer to buy or sell securities or other investments. 189 Des Voeux Road. In Hong Kong. including Type 4 regulated activity (advising on securities). All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice. Limited.H (1211 HK) Company Update Page 8 of 9 . which is licensed in Hong Kong by the Securities and Futures Commission for regulated activities. as amended.S. The information contained in this report has been compiled from sources believed to be reliable but no representation or warranty. Yuanta research is distributed in Taiwan by Yuanta Securities Investment Consulting. This report is not (and should not be construed as) a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on such business in that jurisdiction. but we do not hold ourselves responsible for its completeness or accuracy. express or implied. Taiwan persons wishing to obtain further information on any of the securities mentioned in this publication should contact: Attn: Research Yuanta Securities Investment Consulting 10F. Limited. Taipei 104 Taiwan Hong Kong persons wishing to obtain further information on any of the securities mentioned in this publication should contact: Attn: Research Yuanta Securities (Hong Kong) Co. All transactions by a US person in the securities mentioned in this report must be effected through a registered broker-dealer under Section 15 of the Securities Exchange Act of 1934. It is not an offer to sell or solicitation of an offer to buy any securities.

com Fanny Lin Head of Dealing +886 2 2175 8818 fanny.com Johnny Wong .chia@yuanta.lin@yuanta.brebeck@yuanta.lo@yuanta.tan@yuanta.com Arthur Lo Head of Greater China Sales Coverage +852 3969 9866 arthur.gin@yuanta.yan@yuanta.hu@yuanta.com Kerry Chen .chan@yuanta.com Charles Z.tan@yuanta. CFA Head of Consumer +852 3969 9530 charles.tseng@yuanta.clarke@yuanta.Yuanta Greater China Equities Research Gary Chia Head of Greater China Research +886 2 3518 7900 gary.Sales +886 2 2175 8880 leo.wun@yuanta.com Ming Hsun Lee.com Andrew C Chen – IC Backend +886 2 3518 7940 andrew.com Sales and Trading James Poon Head of Hong Kong Cash Equities/President + 852 3969 9860 james. Taiwan Head of Taiwan Strategy +886 2 3518 7906 john. CFA Head of Upstream Tech +886 2 3518 7907 george.com John Chang Head of Taiwan Equities +886 2 2175 8898 john.com Leo Hu .com Chris Dunham Head of HK Sales Trading & Execution +852 3969 9768 chris.com Vincent Chen Head of Greater China Technology Research Tech Strategist +886 2 3518 7903 vincent.com Claire Chang – China Telecom & Media +852 3969 9516 claire.com Vickie Hu +852 3969 9878 vickie.li@yuanta.chang@yuanta.com Juan Tseng Head of Taiwan Sales +886 2 2175 8962 juan.lin@yuanta.com Larry Cho – Small Cap +852 3969 9523 larry. CFA Head of Research.com Ming Yi Tan +852 3969 9879 mingyi.com Ming Tan.com Bonnie Chang – Handsets +886 2 3518 7925 bonnie.ho@yuanta.com Dan Clarke Head of Greater China Execution +886 2 2175 8958 dan.com Winnie Shek – Sales Trading +852 3969 9769 winnie.com Dennis Chan – Notebook Supply Chain +886 2 3518 7913 dennis.lee@yuanta.cho@yuanta.shek@yuanta.com Min Li Head of Alternative Energy +852 3969 9521 min.wan@yuanta.hu@yuanta.Transportation and Conglomerates +852 3969 9524 johnny. CFA – China Property +852 3969 9515 kevin.poon@yuanta.shih@yuanta.com Riga Saito Head of Taiwan Sales Trading +886 2 2175 8800 riga.lin@yuanta.com Tess Wang – Taiwan Financials +886 2 3518 7901 tess.com Kelvin Ho Deputy Head of China Research Head of Telecom and Media +86 21 6187 3812 kelvin.ho@yuanta.com Luke Qian – China Retail +86 21 6187 3821 lukeqian@yuanta.com Kevin Gin.com Joanna Shih .chen@yuanta.Sales +886 2 2175 8922 kerrychen@yuanta. CFA – Taiwan Small & Mid Cap +886 2 3518 7938 ming.nissen@yuanta. CFA Deputy Head of Greater China Research Head of Financials +852 3969 9525 ming.com John Brebeck.chang@yuanta.com Kim-Chong Tan – China Energy +852 3969 9526 kimchong.dunham@yuanta.chang @yuanta.com Joyce Wan .Sales +852 3969 9832 charles.com Danny Ho – Taiwan Petrochemical +886 2 3518 7923 danny.com Charles Nissen .wong@yuanta.com George Chang.com Joy Lin – Hong Kong Financials +852 3969 9522 joy. Yan.Sales +852 3969 9876 joyce.chen@yuanta.saito@yuanta.com .wang@yuanta.tan@yuanta.Sales +886 2 2175 8960 joanna.com Duncan Wun Head of Hong Kong Sales +852 3969 9869 duncan.com May Lin – Taiwan Telecom & Media +886 2 3518 7942 may.chang@yuanta.