External broker reports(aggregated public sources), CMB International

CMB International

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

External broker reports(aggregated public sources)

Equity Bottom-Up

Inner Mongolia Yili Industrial Group (A) / Equity Bottom-Up

Inner Mongolia Yili Industrial Group (A) (600887 CH)

<ul><li>Share price down 10% post 3Q results. Despite a conservative guidance, net profits came in at 10% lower than consensus at RMB1.9bn, down 27% YoY, driven mainly by 1) a decelerating revenue growth at 7% (vs 2Q 11%), 2) a thinner organic GPM of 30.9% (vs YTD 32.9%) and a 3.3pp increase in opex ratio.</li><li>The surge of opex ratio was eye-catching, and was mainly attributable to 1) the operating deleverage of a slowdown in liquid milk sales upon cities’ lockdown, 2) a seasonally higher advertising expense with TV shows, which are mainly clustered in 3Q, and 3) the consolidation impact of Ausnutria.</li><li>4Q momentum showed sequential pick-up. Liquid milk demand has accelerated QoQ with healthy restocking momentum for the CNY in Jan 2023, per management during the earnings call.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Share price down 10% post 3Q results. Despite a conservative guidance, net profits came in at 10% lower than consensus at RMB1.9bn, down 27% YoY, driven mainly by 1) a decelerating revenue growth at 7% (vs 2Q 11%), 2) a thinner organic GPM of 30.9% (vs YTD 32.9%) and a 3.3pp increase in opex ratio.The surge of opex ratio was eye-catching, and was mainly attributable to 1) the operating deleverage of a slowdown in liquid milk sales upon cities’ lockdown, 2) a seasonally higher advertising expense with TV shows, which are mainly clustered in 3Q, and 3) the consolidation impact of Ausnutria.4Q momentum showed sequential pick-up. Liquid milk demand has accelerated QoQ with healthy restocking momentum for the CNY in Jan 2023, per management during the earnings call.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yili Industrial (600887 CH) – Sequential recovery in-sight