20260302-招银国际-In_progress_to_provide_greater_visibility_on_AI-powered_business_growth_and_enhance_shareholder_return_8页_702kb

> **来源：[研报客](https://pc.yanbaoke.cn)** # Baidu (BIDU US) # In progress to provide greater visibility on Al-powered business growth and enhance shareholder return Baidu announced 4Q25 results: Baidu General Business revenue was RMB26.1bn, down $5.7\%$ YoY, inline with Bloomberg consensus; non-GAAP OP of Baidu General Business reached RMB2.8bn, down $39\%$ YoY, but was $12\%$ ahead of consensus. Regarding AI-powered business development in 4Q25: 1) AI-native marketing services revenue grew $110\%$ YoY to RMB2.7bn; 2) AI-cloud infrastructure revenue totalled RMB5.8bn, with subscription-based revenue from AI accelerator infrastructure grew $143\%$ YoY; and 3) AI applications revenue reached RMB10.2bn in 2025, up $5\%$ YoY. Key stock price drivers for Baidu include: 1) reacceleration in overall ads revenue growth; 2) robust cloud revenue growth; and 3) enhancement of shareholder return. More details regarding the spin-off and separate listing of the chip business arm should serve as an additional catalyst. We roll over our valuation window to 2026E, and our SOTP-based target price is adjusted to US $161.7 (was US$ 150.7). Maintain BUY. ■ Al-empowered business has more visibility. Baidu has redefined Baidu Core as Baidu General Business in 4Q25, which includes Baidu Core AI-powered Business, Legacy Business (mainly consisting of traditional advertising services across search, feed, and other properties), and Others. Revenue from Baidu Core AI-powered Business, Legacy Business, and Others was RMB11.3bn, RMB12.3bn, and RMB2.5bn, respectively, in 4Q25. The combined revenue decline for AI-native marketing services and Legacy Business was c.16% YoY in 4Q25 (3Q25: 18% YoY decline), due to the ongoing business adjustment, in our view. On standalone basis, AI-native marketing services revenue grew 110% YoY to RMB2.7bn, which demonstrated solid growth momentum. The recovery in ads revenue growth to positive trajectory as well as strong growth in AI-native marketing services should serve as one of the key drivers for Baidu's stock price, in our view. Solid cloud revenue growth in 2025. In 4Q25, revenue from Al Cloud Infra, which refers to AI infrastructure and platform services serving enterprises and the public sector, reached RMB5.8bn. Meanwhile, subscription-based revenue from Al accelerator infrastructure within Al Cloud Infra saw revenue growth of $143\%$ YoY, accelerating from $128\%$ YoY in 3Q25. For 2025, Al Cloud Infra revenue (which includes revenue generated from chip business arm) reached RMB19.8bn, up $34\%$ YoY. ■ Order volume growth of Apollo Go remained strong. Apollo Go provided 3.4mn fully driverless rides in 4Q25, up $202\%$ YoY (3Q25: $212\%$ ; 4Q24: $36\%$ ), driven by the expansion in vehicle fleets. As of Feb 2026, Apollo Go's global footprint has covered 26 cities (Oct 2025: 22 cities). To date, Apollo Go fleets have accumulated 300mn autonomous kilometers, including 190mn fully driverless autonomous kilometers. - OPM is recovering from trough. Non-GAAP OPM for Baidu Core was $10.9\%$ in 4Q25, down 5.9ppts YoY but 1.1ppts better than consensus, demonstrating a recovery from $9.0\%$ in 3Q25. We expect the recovery in ads revenue, as well as Baidu's initiatives to drive operating efficiency improvement to drive a sequential margin improvement in 1Q26E. # BUY (Maintain) Target Price US$161.70 (Previous TP US$150.70) Up/Downside 29.9% Current Price US$124.44 # China Internet Saiyi HE, CFA (852) 3916 1739 hesaiyi@cmbi.com.hk Ye TAO, CFA (852) 3850 5226 franktao@cmbi.com.hk Wentao LU, CFA luwentao@cmbi.com.hk Stock Data Mkt Cap (US$ mn) 42,208.1 Avg 3 mths t/o (US$ mn) 391.0 52w High/Low (US$) 162.52/76.86 Total Issued Shares (mn) 339.2 Source:FactSet Shareholding Structure Yanhong Li 22.9% Primecap Management 3.9% Source: HKEx Share Performance Absolute Relative 1-mth -21.1% -17.8% 3-mth 7.0% 8.5% 6-mth 38.5% 30.7% Source:FactSet 12-mth Price Performance US$ BIDU US 170 IXIC (Rebased) 160 150 140 130 120 110 100 90 80 70 Feb-25 May-25 Aug-25 Nov-25 Feb-26 Source:FactSet Earnings Summary (YE 31 Dec) FY24A FY25A FY26E FY27E FY28E Revenue (RMB mn) 133,125 129,079 134,955 141,972 148,456 YoY growth (%) (1.1) (3.0) 4.6 5.2 4.6 Adjusted net profit (RMB mn) 27,002.0 18,941.0 17,370.5 22,758.0 26,822.5 YoY growth (%) (6.1) (29.9) (8.3) 31.0 17.9 EPS (Adjusted) (RMB) 77.20 55.22 51.21 68.78 83.10 Consensus EPS (RMB) 76.85 53.41 57.56 67.38 86.30 P/E (x) 12.5 52.0 20.7 14.4 11.5 ROE (%) 9.0 2.0 4.3 5.3 6.0 Source: Company data, Bloomberg, CMBIG estimates # Quarterly results and estimates Figure 1: Baidu: quarterly financial results (RMBbn) 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 4Q25Consensus Diff% Total revenue 31.5 33.9 33.6 34.1 32.5 32.7 31.2 32.7 32.7 0.3% YoY growth (%) 1.2% -0.4% -2.6% -2.4% 3.0% -3.6% -7.1% -4.1% Gross profit 16.2 17.5 17.2 16.1 15.0 14.4 12.9 14.5 13.4 8.2% Operating profit 5.5 5.9 5.9 3.9 4.5 3.3 -15.1 1.5 1.6 -7.1% Non-GAAP net profit 7.0 7.4 5.9 6.7 6.5 4.8 3.8 3.9 3.5 12.9% YoY growth (%) 22% -8% -19% -13% -8% -35% -36% -42% GPM (%) 51.5% 51.7% 51.1% 47.2% 46.1% 43.9% 41.2% 44.2% 40.9% 3.2 ppt OPM (%) 17.4% 17.5% 17.7% 11.5% 13.9% 10.0% -48.4% 4.5% 4.9% -0.4 ppt Non-GAAP NPM (%) 22.2% 21.8% 17.5% 19.7% 19.9% 14.7% 12.1% 11.9% 10.6% 1.3 ppt Baidu General Business Revenue 23.8 26.7 26.5 27.7 25.5 26.3 24.7 26.1 26.1 0.1% YoY growth (%) 3.5% 1.1% -0.2% 0.8% 7.0% -1.6% -7.0% -5.7% Non-GAAP OP 5.6 7.0 6.7 4.6 4.9 4.4 2.2 2.8 2.5 11.7% YoY growth (%) 4.1% 7.5% -0.3% -25.0% -12.8% -37.4% -66.6% -39.0% Non-GAAP NP 6.6 7.3 5.7 6.7 6.3 4.8 3.8 3.9 3.2 20.6% YoY growth (%) 25.8% -5.3% -18.4% -10.1% -4.5% -34.3% -32.4% -42.6% Non-GAAP OPM (%) 23.5% 26.2% 25.1% 16.8% 19.1% 16.7% 9.0% 10.9% 9.7% 1.1 ppt Non-GAAP NPM (%) 27.8% 27.3% 21.4% 24.3% 24.9% 18.3% 15.6% 14.8% 12.3% 2.5 ppt Source: Company data, Bloomberg, CMBIGM # Changes in forecast and valuation We lower our 2026/2027E revenue forecast by $1.4 / 1.4\%$ to account for the cut in revenue forecast of iQIYI and Baidu's non-core business. We cut 2026/2027E non-GAAP net profit forecast by $9.5 / 1.1\%$ to account for the increase in estimates for SG&A expenses and R&D expenses due to the increase in investment to support the market promotion of AI-native apps. Figure 2: Baidu forecast revision Current Previous Change (%) RMB bn 2026E 2027E 2028E 2026E 2027E 2028E 2026E 2027E 2028E Revenue 135.0 142.0 148.5 136.9 144.0 - -1.4% -1.4% - Gross Profit 59.0 64.6 69.3 59.2 64.9 - -0.4% -0.4% - Non-GAAP net profit 17.4 22.8 26.8 19.2 23.0 - -9.5% -1.1% - Gross Margin 43.7% 45.5% 46.7% 43.3% 45.1% - 0.4 ppt 0.5 ppt - Non-GAAP net margin 12.9% 16.0% 18.1% 14.0% 16.0% - -1.2 ppt 0.1 ppt - Source: CMBIGM estimates Figure 3: Baidu: CMBI forecast vs Bloomberg consensus RMB bn Current Consensus Diff (%) 2026E 2027E 2028E 2026E 2027E 2028E 2026E 2027E 2028E Revenue 135.0 142.0 148.5 134.0 142.9 153.3 0.7% -0.7% -3.2% Gross Profit 59.0 64.6 69.3 58.3 64.2 70.7 1.1% 0.6% -2.0% Non-GAAP net profit 17.4 22.8 26.8 19.7 22.8 28.6 -12.0% -0.4% -6.1% Gross Margin 43.7% 45.5% 46.7% 43.6% 44.9% 46.1% 0.2 ppt 0.6 ppt 0.5 ppt Non-GAAP net margin 12.9% 16.0% 18.1% 14.7% 16.0% 18.6% -1.9 ppt 0.0 ppt -0.6 ppt Source: Bloomberg, CMBIGM estimates # SOTP valuation of US$161.7 per ADS We roll over our valuation window to 2026E, and combined with the adjustment in exchange rate assumption (from USD:RMB=1:7.2 to 1:7.0), our new SOTP-based target price rises to US$161.7 per ADS (was US$150.7), which comprises: 1) US $35.7 for Baidu General Business (mainly including the ads business, excluding Apollo and Baidu Cloud), based on 5.0x 2026E non-GAAP PE (was US$ 37.8 based on 5.0x 2025E non-GAAP PE); 2) US\(0.3 for Apollo ASD (unchanged), based on 2.0x 2030E revenue, and discounted back to 2026E using a \(13.0\%$ WACC; 3) US $62.9 for Baidu Cloud, based on 4.6x 2026E PS (was US$ 61.8 based on 5.5x 2025EPS, which implied 4.6x 2026E PS based on previous forecast); 4) US$62.8 for net cash (was US$50.8), iQIYI and other investments, with a $30\%$ holding discount applied to the valuation of US\)89.7 per ADS. The increase in valuation was mainly due to roll-over of valuation window to 2026E; Our target price translates into 22x/16x 2026/2027E non-GAAP PE, or 12/9x 2026/2027E non-GAAP PE ex-cash. Baidu's Board of Directors has authorized a new share repurchase program in Feb 2026, under which Baidu may repurchase up to US\(5bn of its shares, effective through Dec 31, 2028. The Board has also approved, for the first time, the adoption of a dividend policy for the Baidu's ordinary shares, which may include regular and/or special distributions of dividends. The enhancement of shareholder return should help drive a rerating of Baidu's valuation in the future, in our view. Figure 4: Baidu: SOTP valuation Segment NOPAT (USDmn) Valuation method/multiple Valuation (RMBmn) Valuation (USDmn) Baidu's stake Valuation of Baidu's stake (USDmn) USD/ADS Valuation as % of total (%) Core business and cash 1) Baidu core (ex-Apollo and Cloud) 2,421 5.0 84,724 12,103 100.0 12,103 35.7 22.1 2) Apollo ASD 807 115 100.0 115 0.3 0.2 3) Baidu Cloud (ex-ASD) 4.6 149,371 21,339 100.0 21,339 62.9 38.9 Valuation of core business 33,557 98.9 61.2 iQIYI, strategic investment, and net cash 1) iQIYI Market value 10,785 1,541 45.4 699 2.1 2) Trip.com group Market value 262,643 37,520 7.0 2,626 7.7 3) Uxin Market value 5,094 728 9.1 66 0.2 4) HAND Enterprise Solutions Market value 12,271 3,738 5.3 196 0.6 5) Kuaishou Market value 244,744 34,963 3.1 1,086 3.2 6) Yusys Technologies Market value 15,260 2,180 3.6 79 0.2 7) Net cash CMBI estimates 179,622 25,660 100.0 25,660 75.7 Valuation of iQIYI, investments, and net cash 30,414 89.7 Valuation of iQIYI, investment, and net cash (with 30% holding discount) 21,290 62.8 38.8 Total Baidu valuation (US$mn) 54,847 Number of ADS outstanding (mn) 339 Valuation per ADS (US$) 161.7 Source: Company data, CMBIGM estimates Note: American depository share (ADS); iQIYI (IQ US); Trip.com Group (TCOM US); Uxin (UXIN US); HAND Enterprise Solution (300170 CH); Kuaishou (1024 HK); Yusys Technologies (300674 CH) # Risks 1) Slower-than-expected ramp-up in revenue generation from Gen-AI related business. 2) Slower-than-expected margin expansion. Financial Summary INCOME STATEMENT 2023A 2024A 2025A 2026E 2027E 2028E YE 31 Dec (RMB mn) Revenue 134,598 133,125 129,079 134,955 141,972 148,456 Cost of goods sold (65,031) (66,102) (72,436) (75,970) (77,343) (79,150) Gross profit 69,567 67,023 56,643 58,985 64,629 69,306 Operating expenses (47,711) (45,753) (62,466) (46,421) (46,868) (47,767) SG&A expense (23,519) (23,620) (25,843) (25,489) (25,891) (26,331) R&D expense (24,192) (22,133) (20,433) (20,932) (20,977) (21,436) Others 0 0 (16,190) 0 0 0 Operating profit 21,856 21,270 (5,823) 12,564 17,761 21,539 Share of (losses)/profits of associates/JV (3,799) (691) 3,196 2,478 2,333 2,737 Adjusted EBITDA 35,824 33,078 22,857 24,351 29,398 32,976 Net Interest income/(expense) 4,761 5,138 5,818 2,577 4,690 4,599 Foreign exchange gain/loss 595 1,076 (2,242) (1,794) (1,435) 0 Other income/expense 1,785 1,829 5,767 2,283 2,306 2,329 Pre-tax profit 25,198 28,622 6,716 18,109 25,654 31,203 Income tax (3,649) (4,447) (1,259) (4,178) (5,877) (6,947) After tax profit 21,549 24,175 5,457 13,931 19,778 24,257 Minority interest 1,234 415 (132) 171 479 693 Net profit 20,315 23,760 5,589 13,760 19,299 23,564 Adjusted net profit 28,747 27,002 18,941 17,370 22,758 26,822 BALANCE SHEET 2023A 2024A 2025A 2026E 2027E 2028E YE 31 Dec (RMB mn) Current assets 230,255 168,849 151,970 183,925 190,442 199,647 Cash & equivalents 25,231 24,832 24,606 69,911 74,981 82,801 Restricted cash 11,503 11,697 225 225 225 225 Account receivables 10,848 10,104 12,972 9,983 10,502 10,982 Other current assets 182,673 122,216 114,167 103,807 104,734 105,639 Non-current assets 176,504 258,931 297,187 325,456 337,102 349,208 PP&E 27,960 30,102 26,281 62,323 73,715 85,564 Intangibles 7,848 7,702 9,854 2,081 2,335 2,592 Goodwill 22,586 22,586 36,783 36,783 36,783 36,783 Other non-current assets 118,110 198,541 224,269 224,269 224,269 224,269 Total assets 406,759 427,780 449,157 509,381 527,544 548,855 Current liabilities 76,451 80,953 86,328 81,522 80,500 78,970 Short-term borrowings 10,257 10,669 7,626 7,626 7,626 7,626 Account payables 37,717 41,443 38,891 33,277 31,506 29,284 Other current liabilities 28,477 28,841 39,811 40,620 41,368 42,059 Non-current liabilities 67,700 63,215 73,103 62,382 57,437 51,834 Long-term borrowings 14,223 15,596 3,369 0 0 0 Bond payables 43,134 36,347 57,733 50,381 45,436 39,833 Obligations under finance leases 5,040 4,973 4,108 4,108 4,108 4,108 Deferred income 200 231 198 198 198 198 Other non-current liabilities 5,103 6,068 7,695 7,695 7,695 7,695 Total liabilities 144,151 144,168 159,431 143,904 137,937 130,804 Share capital 0 0 0 0 0 0 Capital surplus 87,099 87,146 87,193 87,240 87,287 87,334 Retained earnings 156,527 176,474 179,137 254,841 278,924 307,321 Other reserves 9,465 9,870 13,166 13,166 13,166 13,166 Total shareholders equity 253,091 273,490 279,496 355,247 379,377 407,821 Minority interest 9,517 10,122 10,230 10,230 10,230 10,230 Total equity and liabilities 406,759 427,780 449,157 509,381 527,544 548,855 CASH FLOW 2023A 2024A 2025A 2026E 2027E 2028E YE 31 Dec (RMB mn) Operating Profit before taxation 25,198 28,622 6,716 18,109 25,654 31,203 Depreciation & amortization 14,908 14,628 4,877 4,914 4,709 4,252 Tax paid (3,649) (4,447) (1,259) (4,178) (5,877) (6,947) Change in working capital (13,067) (27,512) 697 8,544 (2,469) (2,915) Others 13,225 9,943 4,337 4,376 4,264 4,100 Net cash from operations 36,615 21,234 15,368 31,764 26,282 29,694 Investing Capital expenditure (11,190) (8,134) (15,632) (16,101) (16,101) (16,101) Acquisition of subsidiaries/ investments (115) 0 0 0 0 0 Net proceeds from disposal of short-term investments 0 0 0 0 0 0 Others (39,092) (421) 11,698 (251) (254) (256) Net cash from investing (50,397) (8,555) (3,934) (16,353) (16,355) (16,358) Financing Net borrowings (13,093) (2,914) (4,139) (3,369) 0 0 Share repurchases (4,764) (6,324) 0 0 0 0 Others 3,695 (4,521) 21,474 (7,264) (4,857) (5,515) Net cash from financing (14,162) (13,759) 17,335 (10,633) (4,857) (5,515) Net change in cash Cash at the beginning of the year 65,236 37,574 36,589 65,357 70,136 75,206 Exchange difference 282 95 0 0 0 0 Cash at the end of the year 37,574 36,589 65,357 70,136 75,206 83,026 GROWTH 2023A 2024A 2025A 2026E 2027E 2028E YE 31 Dec Revenue 8.8% (1.1%) (3.0%) 4.6% 5.2% 4.6% Gross profit 16.4% (3.7%) (15.5%) 4.1% 9.6% 7.2% Operating profit 37.4% (2.7%) na na 41.4% 21.3% Net profit 168.8% 17.0% (76.5%) 146.2% 40.3% 22.1% Adj. net profit 39.0% (6.1%) (29.9%) (8.3%) 31.0% 17.9% PROFITABILITY 2023A 2024A 2025A 2026E 2027E 2028E YE 31 Dec Gross profit margin 51.7% 50.3% 43.9% 43.7% 45.5% 46.7% Operating margin 16.2% 16.0% (4.5%) 9.3% 12.5% 14.5% Adj. net profit margin 21.4% 20.3% 14.7% 12.9% 16.0% 18.1% Return on equity (ROE) 8.4% 9.0% 2.0% 4.3% 5.3% 6.0% GEARING/LIQUIDITY/ACTIVITIES 2023A 2024A 2025A 2026E 2027E 2028E YE 31 Dec Net debt to equity (x) (0.9) (0.6) (0.4) (0.5) (0.5) (0.5) Current ratio (x) 3.0 2.1 1.8 2.3 2.4 2.5 Receivable turnover days 29.0 26.8 27.0 26.1 26.0 26.0 Payable turnover days 220.6 220.7 184.9 161.8 150.8 138.2 VALUATION 2023A 2024A 2025A 2026E 2027E 2028E YE 31 Dec P/E 14.7 12.5 52.0 20.7 14.4 11.5 P/E (diluted) 14.9 12.6 52.4 21.0 14.6 11.7 P/B 1.2 1.1 1.0 0.8 0.7 0.7 P/CFPS 11.9 22.8 ns 18.5 27.7 20.3 Source: Company data, CMBIGM estimates. Note: The calculation of net cash includes financial assets. # Disclosures & Disclaimers # Analyst Certification The research analyst who is primary responsible for the content of this research report, in whole or in part, certifies that with respect to the securities or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report. Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to the date of issue of this report; (2) will deal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3) serve as an officer of any of the Hong Kong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies covered in this report. # CMBIGM Ratings BUY : Stock with potential return of over 15% over next 12 months HOLD : Stock with potential return of +15% to -10% over next 12 months SELL : Stock with potential loss of over 10% over next 12 months NOT RATED : Stock is not rated by CMBIGM OUTPERFORM : Industry expected to outperform the relevant broad market benchmark over next 12 months MARKET-PERFORM : Industry expected to perform in-line with the relevant broad market benchmark over next 12 months UNDERPERFORM : Industry expected to underperform the relevant broad market benchmark over next 12 months # CMB International Global Markets Limited Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800 CMB International Global Markets Limited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a wholly owned subsidiary of China Merchants Bank) # Important Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable for the purposes of all investors. CMBIGM does not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial position or special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in the report. The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their dependence on the performance of underlying assets or other variable market factors. CMBIGM recommends that investors should independently evaluate particular investments and strategies, and encourages investors to consult with a professional financial advisor in order to make their own investment decisions. This report or any information contained herein, have been prepared by the CMBIGM, solely for the purpose of supplying information to the clients of CMBIGM or its affiliate(s) to whom it is distributed. This report is not and should not be construed as an offer or solicitation to buy or sell any security or any interest in securities or enter into any transaction. Neither CMBIGM nor any of its affiliates, shareholders, agents, consultants, directors, officers or employees shall be liable for any loss, damage or expense whatsoever, whether direct or consequential, incurred in relying on the information contained in this report. Anyone making use of the information contained in this report does so entirely at their own risk. The information and contents contained in this report are based on the analyses and interpretations of information believed to be publicly available and reliable. CMBIGM has exerted every effort in its capacity to ensure, but not to guarantee, their accuracy, completeness, timeliness or correctness. CMBIGM provides the information, advices and forecasts on an "AS IS" basis. The information and contents are subject to change without notice. CMBIGM may issue other publications having information and/ or conclusions different from this report. These publications reflect different assumptions, point-of-view and analytical methods when compiling. CMBIGM may make investment decisions or take proprietary positions that are inconsistent with the recommendations or views in this report. CMBIGM may have a position, make markets or act as principal or engage in transactions in securities of companies referred to in this report for itself and/or on behalf of its clients from time to time. Investors should assume that CMBIGM does or seeks to have investment banking or other business relationships with the companies in this report. As a result, recipients should be aware that CMBIGM may have a conflict of interest that could affect the objectivity of this report and CMBIGM will not assume any responsibility in respect thereof. This report is for the use of intended recipients only and this publication, may not be reproduced, reprinted, sold, redistributed or published in whole or in part for any purpose without prior written consent of CMBIGM. Additional information on recommended securities is available upon request. # For recipients of this document in the United Kingdom This report has been provided only to persons (I)falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended from time to time)(The Order") or (II) are persons falling within Article 49(2) (a) to (d) ("High Net Worth Companies, Unincorporated Associations, etc.,) of the Order, and may not be provided to any other person without the prior written consent of CMBIGM. # For recipients of this document in the United States CMBIGM is not a registered broker-dealer in the United States. As a result, CMBIGM is not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. The research analyst who is primary responsible for the content of this research report is not registered or qualified as a research analyst with the Financial Industry Regulatory Authority ("FINRA"). The analyst is not subject to applicable restrictions under FINRA Rules intended to ensure that the analyst is not affected by potential conflicts of interest that could bear upon the reliability of the research report. This report is intended for distribution in the United States solely to "major US institutional investors", as defined in Rule 15a-6 under the US, Securities Exchange Act of 1934, as amended, and may not be furnished to any other person in the United States. Each major US institutional investor that receives a copy of this report by its acceptance hereof represents and agrees that it shall not distribute or provide this report to any other person. Any U.S. recipient of this report wishing to effect any transaction to buy or sell securities based on the information provided in this report should do so only through a U.S.-registered broker-dealer. # For recipients of this document in Singapore This report is distributed in Singapore by CMBI (Singapore) Pte. Limited (CMBISG) (Company Regn. No. 201731928D), an Exempt Financial Adviser as defined in the Financial Advisers Act (Cap. 110) of Singapore and regulated by the Monetary Authority of Singapore. CMBISG may distribute reports produced by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, as defined in the Securities and Futures Act (Cap. 289) of Singapore, CMBISG accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact CMBISG at +65 6350 4400 for matters arising from, or in connection with the report.