Asia Pacific Equities Research Asian Daily (Asia Edition) APAC Quantitative & Systematic, Taiwan Downstream, Taiwan Semiconductor Manufacturing 16 July 2021 Asia Equity Research Top of the Pack China APAC Quantitative & Systematic Strategy 5 China Healthcare Sector 10 New report: No direction yet — Growth / Value factor volatility to remain elevated in Conference call takeaways with CStone (2616.HK, Not Covered): Multiple approval 2H and clinical data catalysts in 2H21 Will Stephens Yang Huang Taiwan Downstream SectorArticle intended for:6 China Industrials Sector 11 2H21 outlook - Be selective Industrial capacity utilisation rate in 2Q hit historical high; robot production in June Pauline Chen up 61% Zhao Zhang Taiwan Semiconductor Manufacturing [2330.TW] 7 New report: Sales upsidejason.chiu#uobkayhian.com.hk continues, GMs back to long-term range of 50% China Property Sector 12 Randy Abrams Maintain OUTPERFORM Slowdown in sales/investment growth continued in Jun-2021 Jianping Chen LG Chem Ltd. [051910.KS] 8 xEV battery peers' rally should support LG Chem's valuation from here China Coal Energy Company Limited [1898.HK] 13 Hoonsik Min Upgrade to NEUTRAL 1H21 preliminary results beat market expectation Yang Luo Maintain OUTPERFORM China Sportswear Sector 9 New report: June 2021 online sales -3% YoY, but leading domestic brands grew Li Ning [2331.HK] 14 26-34% YoY Healthy online sales growth continued in June 2021 Jesalyn Wong Jesalyn Wong Maintain OUTPERFORM Ping An [2318.HK] 15 CS Pic of the Day Improving NB sales in June, but solid and sustainable recovery takes time Charles Zhou Maintain OUTPERFORM Shandong Gold [1787.HK] 16 1H21 prelim results miss, net loss due to disruptions in operations Peter Li Downgrade to NEUTRAL Sinopec Shanghai Petrochemical [0338.HK] 17 1H21 profit alert suggests a weak 2Q21; uncertainty ahead in 2H21 Horace Tse Maintain NEUTRAL Tongkun Group Co. Ltd [601233.SS] 18 1H21 profit alert a beat; higher contribution from ZPC Phase II to drive further upside in 2H21 Horace Tse Maintain OUTPERFORM Xtep International [1368.HK] 19 Raised guidance; core Xtep brand to grow >20% over next five years Jesalyn Wong Maintain OUTPERFORM Yunnan Aluminium Co.,Ltd. [000807.SZ] 20 1H21 prelim results beat In Jun-2021, the overall online sportswear industry declined 3% YoY Yang Luo Maintain OUTPERFORM on Tmall/Taobao, a turnaround from high growth in May (+41%), dragged by international brands. This brings 2Q21 to +7% YoY (vs ZhongAn Online P&C Insurance Co., Ltd. [6060.HK] 21 +37% in 1Q21). Divergence in overall growth trends between foreign Solid premiums in June and 1H21 preview and domestic brands continued in Jun. Dominant foreign brand Nike Charles Zhou Maintain NEUTRAL recorded -34%YoY in Jun (-33% in May), while Adidas decline narrowed to 33% on new Yeezy SKU launches (-52% in May). Zhongji Innolight [300308.SZ] 22 Domestic brands have outperformed the last three consecutive 2Q21 NI guidance miss; fundamentals intact for 2H21 datacom upcycle months, with Li Ning/Anta/Xtep at +26/+34/+26% YoY in Jun. Clive Cheung Maintain OUTPERFORM Research by Markets This publication contains summaries of recent Credit Suisse research reports to bring notable Research to your attention. ALL FULL REPORTS OF THE SUMMARIES IN THIS PUBLICATION CAN BE ACCESSED THROUGH THE LINKS PROVIDED. THE FULL REPORTS INCLUDE RELEVANT DISCLOSURE APPENDIXES, ANALYST CERTIFICATIONS, LEGAL ENTITY DISCLOSURES AND INFORMATION ABOUT THE STATUS OF NON-U.S ANALYSTS. For the Equity Research Disclosures click here https://rave.credit-suisse.com/disclosures Friday, 16 July 2021 Hong Kong Connecting clients to corporates Razer Inc. [1337.HK] 23 APAC Conference Calls 1H21 net profit tracking ahead; momentum to sustain in 2H21 Jerry Su Maintain OUTPERFORM LONGi Green Energy Technology (601012 CH) – Company update and solar market outlook (Mandarin) Date 20 July, 16:00 HKT Info Please email Ting Zhang India ASEAN Internet expert insights: A deep dive in to the digital economy JSW Steel Ltd [JSTL.BO] 24 Date 21 July, 11:00 / 21:00 HKT Spread check: Indian spreads continue to weaken; now at Feb-2021 level Info Please email Crystal Choi Prateek Singh Maintain UNDERPERFORM Sportswear (Adidas, Nike) distributor call discussion Larsen & Toubro [LART.BO] 25 Date 21 July, 16:00 HKT The tail is wagging the dog; core itself has legs such as cyclical, public capex Info Please email Coco Xu improvement, self-help (Wcap), plus valuations Lokesh Garg Maintain OUTPERFORM Dial in/passcode will be given upon registration; *Only for calls with replays (available 4 hours after live call); Hong Kong: 800963117; Singapore: 8006162305; Wipro Ltd [WIPR.BO] 26 China Mainland: 4006322162; UK: 8082340072; New report: 1QFY22 review: BeatArticle on revenue but adjustedintended for one-offs operating for:US: 18554525696; Australia: 1800153898; profit largely in line India: 180030000542; Japan: 120390774; Varun Ahuja Maintain NEUTRAL Philippines: 180016120166; South Korea: 079861361602 Malaysia jason.chiu#uobkayhian.com.hkCorporate Days / Conferences Korea Unicorn & Decacorn Day CIMB Group Holdings Bhd [CIMB.KL] 27 Date 22 - 23 July 2Q21 preview : Weaker QoQ, but likely to be ahead of ROE target Info Virtual Event Danny Goh Maintain OUTPERFORM Malaysia ESG Day Date 27 - 28 July Philippines Info Virtual Event India Consumer Day Emperador Distillers Inc. [EMP.PS] 28 Increasing its global profile Date 10 - 12 August Info Virtual Event Hazel Tanedo Maintain OUTPERFORM Indonesia Corporate Day 29 Metropolitan Bank & Trust Co [MBT.PS] Date 12 - 13 August Need to see market share recovery Info Virtual Event Danielo Picache Maintain NEUTRAL Taiwan Non-Tech Day Date 16 - 18 August Singapore Info Virtual Event Singapore Property Sector 30 9th China Internet C-Level Virtual Conference Primary sales of 872 units in June; in good stead for 2H21 with resumption of Date 30 August - 01 September launches Info Hong Kong Louis Chua 6th Credit Suisse Japan Kyoto+ Conference Date 01 - 03 September South Korea Info Virtual Event Korea Consumer Monthly 31 22nd Asian Technology Conference Date 06 - 10 September New report: 2Q preview overall solid, 3Q to be affected by social distancing Info Taipei A-Hyung Cho Macau Gaming Day Naver [035420.KS] 32 Date 23 September 2Q21 preview: Solid top-line growth as the biggest beneficiary of digital ad market Info Virtual Event acceleration Soyun Shin Maintain OUTPERFORM 2nd Japan New Economy Day Date 28 - 30 September Info Virtual Event Taiwan 12th Annual China Investment Conference TXC Corp. [3042.TW] 33 Date 01 - 05 November 2Q preliminary result in line; 3Q sub-seasonal on NB supply constraint Info Shenzhen Pauline Chen Maintain NEUTRAL 3rd Japan Corporate Day Date 17 - 19 November Info Virtual Event Asian Daily (Asia Edition) 2 Friday, 16 July 2021 Key Changes EPS TP Up/ (% change) T+1 T+2 Chg Rating Dn Li Ning 11.5 6.8 23.5 11.0 O Shandong Gold (H) (95.7) (10.3) (28.9) 5.5 N (O) Shandong Gold (A) (95.7) (10.3) (24.9) 6.3 N (O) TSMC (0.5) (0.0) 0.0 9.9 O TXC 9.1 9.2 20.8 8.2 N ZhongAn (16.7) (2.5) (6.0) (5.6) N Tongkun 26.8 17.3 6.3 19.9 O Razer Article239.0 intended127.3 2.9 69.1 O for: Sinopec Shanghai Petrochem (H) (12.5) (0.9) (9.5) 5.6 N Sinopec Shanghai Petrochem (A) (12.5) (0.9) (11.8) (20.8) U Xtep 18.3 22.2 30.3 17.6 O Yunnan Aluminium jason.chiu#uobkayhian.com.hk68.4 48.0 8.7 21.3 O LG Chem 1.1 5.6 32.4 10.0 N (U) Chinacoal (H) 44.4 40.0 34.7 35.2 O Chinacoal (A) 44.4 40.0 24.4 35.8 O Wipro 7.0 5.3 15.0 (0.1) N Innolight (14.6) (14.3) (0.6) 57.6 O Metrobank (12.4) (8.4) 2.5 9.9 N Naver (0.1) 2.9 9.6 26.9 O L&T 0.0 0.0 4.2 16.5 O Asian Daily (Asia Edition) 3 Friday, 16 July 2021 Asian Indices - Performance Global Indices % change Latest 1D % 1W % 3M % YTD % %change Latest 1D % 1W % 3M % YTD % ASX300 7,330 (0.2) (0.0) 3.9 11.5 DJIA 34,933 0.1 0.7 2.6 14.1 CSEALL 7,988 0.6 2.3 5.1 17.9 S&P 500 4,374 0.1 0.4 4.9 16.5 Hang Seng 27,996 0.8 3.1 (3.4) 2.8 NASDAQ 14,645 (0.2) (0.1) 4.3 13.6 HS H- SOX 3,289 (0.4) 0.8 0.5 17.7 10,174 1.1 3.6 (7.7) (5.3) Share EU-STOX 3,561 (0.2) 2.0 4.2 14.6 HS Red 3,828 1.0 (0.1) (7.6) 0.8 Chip FTSE 7,097 0.1 0.9 1.1 9.9 JCI 6,047 1.1 0.1 (0.6) 1.1 DAX 15,683 (0.7) 1.7 1.4 14.3 KLSE 1,521 0.6 0.8 (5.4) (6.5) CAC-40 6,535 (0.4) 2.2 3.9 17.7 KOSPI 3,286 0.7 1.0 2.7 14.4 10 YR LB 1.341 (0.6) 3.6 (14.7) 47.1 KSE100 47,700 0.4Article(0.7) intended5.3 9.0 for:2 YR LB 0.227 0.0 15.8 37.4 93.8 NIFTY 50 15,854 0.0 0.8 8.5 13.4 US$:E 1.184 0.0 (0.0) (1.2) (3.1) NIKKEI 28,279 (1.2) 0.6 (4.7) 3.0 US$:Y 109.8 (0.2) 0.0 0.9 6.4 TOPIX 1,940 jason.chiu#uobkayhian.com.hk(1.2) 1.0 (1.1) 7.5 GOLD 1,827 1.1 1.3 3.6 (3.7) PCOMP 6,728 (1.6) (2.8) 3.6 (5.8) VIX 16.33 (4.6) 0.8 (1.4) (28.2) Source: Credit Suisse Rave SET 1,576 0.4 2.1 1.7 8.7 STI 3,138 (0.5) 1.0 (2.0) 10.3 TWSE 18,034 1.1 0.9 5.1 22.4 VNINDEX 1,294 1.1 (5.9) 4.5 17.2 Source: Credit Suisse Rave Asian currencies (vs US$) Asian Indices % Target Target Index EPS grth.(%) P/E (x) Performance Latest 1D % 1W % 3M % YTD % change 3M 12M T+1 T+2 T+1 T+2 1D% 1M% YTD% A$ 0.748 (0.0) 0.6 (3.3) (2.8) 0.79 0.8 Asia x 37.8 12.0 16.0 14.3 (0.4) (3.0) 2.6 Bt 32.6 0.0 0.2 4.5 8.6 30.9 30.5 Japan Asia Pac x D 23,013 0.0 0.0 (0.2) (0.2) n.a.