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

China Mengniu Dairy Co / Equity Bottom-Up

<ul><li>Our view to dairy segment’s outlook remains mediocre, as we believe players should in general share less sensitivity to the reopening theme relative to their peers in the beer and cosmetics segment, respectively.</li><li>That said, we see trading opportunity on Mengniu into results season. This would mainly be underpinned by 1) an easy and stabilizing earnings expectation (for both 2H22 and 2023E), when we see subdued downside risk to current consensus estimates, and 2) a moderately lagging valuation to peers who have already been re-rated on reopening sentiment.</li><li>Our call does not indicate any preference changes in our structural picks. Instead, we argue the stock could play near term catch-up catalyzed by this expectation mismatch, when a likely in line 2H could refresh market expectation, despite any earnings miss last year (which looks to be not uncommon as we observed). </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>

Our view to dairy segment’s outlook remains mediocre, as we believe players should in general share less sensitivity to the reopening theme relative to their peers in the beer and cosmetics segment, respectively.That said, we see trading opportunity on Mengniu into results season. This would mainly be underpinned by 1) an easy and stabilizing earnings expectation (for both 2H22 and 2023E), when we see subdued downside risk to current consensus estimates, and 2) a moderately lagging valuation to peers who have already been re-rated on reopening sentiment.Our call does not indicate any preference changes in our structural picks. Instead, we argue the stock could play near term catch-up catalyzed by this expectation mismatch, when a likely in line 2H could refresh market expectation, despite any earnings miss last year (which looks to be not uncommon as we observed). 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.

Mengniu Dairy (2319 HK) – A laggard play to this early-staged consumption-led recovery