QR DeCode
3 February 2017
QR DeCode Share Economy Group – O2O rental platform Share Economy Group Limited (SEG) had launched its portable charger rental service via the 7-Eleven network in Hong Kong in Jan 2017. During the first 10 days after launch, the company had deployed about 5,000 battery units while the total number of transactions had exceeded 7,000 times. Developing O2O rental service in HK – SEG believes that O2O (Online to offline) will be an important marketing trend in the future. As a result, SEG has acquired an online platform, namely “ECrent.com”, in order to build a location or community based user group. People could use the platform to rent out or rent some items that are necessary but seldom used, such as power tools, audio-video equipment and suitcases. In addition, users could easily locate the items, availability and pricing on the platform through its website or the mobile app.
Share Information Stock Code Quam’s Rating Last Closing (HK$) 52-week range (HK$) 3-mth ADT (HK$’mn) Market Cap. (HK$’mn) Shares outstanding (‘mn) Free float SH-HK Stock Connect SZ-HK Stock Connect
1178 HK Not Rated HK$0.22 0.13 – 0.26 4.34 1,067.2 4,964.3 47.8% No No
Substantial Shareholders Lau Ping Kee Yuen Wai Ming, Deborah Du Yonghong Cheung Kwan Zhou Guohua
10.07% 9.83% 7.11% 6.42% 5.61%
Share Price Performance
Seeking business opportunities with different companies – Riding on its recent success, the company is now looking for more opportunities to introduce more products and services in different channels, such as search engines, insurance companies and retail chains. It is SEG’s goal to become a preferred rental platform which might encourage SMEs to come up with innovative ideas on rental products and services. Source: Bloomberg
Building the largest rental platform – ECrent is an online rental platform, founded on the basis of a sharing economy, which aims to promote environmental protection at a global level. Since its establishment, the global platform of ECrent Worldwide has expanded coverage to over 40 countries with over 250 million pageviews and more than 30 million visitors monthly. SEG has also acquired a 0.34% interest in the United States operation of ECrent, and that business is applying to list on the NASDAQ in 1H17. We believe SEG could enjoy first-mover advantages such as reputation, customer base and operation know-how. The company is now focusing on expanding its business in Hong Kong and might also expand into mainland China in the future.
Key Financials – FY JUN HKD’mn FY14 FY15 Revenue 20 14 Operating profit (12) (24) Net profit (14) (25) EPS (HKD) Growth DPS (HKD) BVPS (HKD)
FY16 28 (26) (30)
(0)
(0)
(0.013)
0 0
0 0
0 0.066
n.a 2.5 n.a n.a
n.a 4.4 n.a n.a
PER (x) n.a PBR (x) 1.4 EV/EBITDA (x) n.a Dividend Yield (%) 0.0 Source: Company data
Tsz Wang Poon : +852 2971 5432 : [email protected]
For important disclosures regarding Quam Research, including with respect to any issuers mentioned herein, please refer to the disclaimers at the back of the report.
ECrent online platform It is an easy-to-use platform where a lessor just needs to pay HK$50 for each item that he or she wants to rent out, and the lessee could contact the lessor directly and complete the transaction. For an annual fee of HK$6,000, the lessor could have the option of opening an “online shop” on the platform for a year and there would be no limit on the number of rental items. A lessor could rent out different things on the same platfrom, from tangible items such as electronic equipment, clothing and power tools, to professional services such as tutoring, repairs and photography. The company has also developed an app for both Android and iOS which would allow the lessee to find the closest location to rent the item. Figure 1: ECrent online platform
Source: ECrent.com
Portable chargers for smart phones ECrent (HK), a wholly-owned subsidiary of the company, has commenced co-operation with over 700 7-Eleven convenient stores in Hong Kong in January 2017, to launch a portable charger rental service. During the first 10 days of service, the company had provided about 5,000 portable chargers while the total number of transactions exceeded 7,000 times. People could rent a charger for HK$10 plus a deposit of HK$90 for 3 days and it could be returned to any 7-Eleven store. There would be an overdue charge of HK$10/day until the deposit runs out. The basic specification of the battery pack is 4000mAh and it could be used on both iPhone and Android
SEG (1178 HK)
2
phones. The estimated cost of the battery pack is about HK$25 and ECrent takes 40% of the revenue from this service while 7-Eleven takes the remaining 60%. As such, it is expected that each battery only needs to be transacted 6-7 times in order to achieve a break-even point for SEG. This is an opportunity to increase brand and market exposure for SEG and at the same time producing additional income streams for the company. In addition, this rental service is likely to be extended to other products in the future. Figure 2: Portable chargers
Source: 7-Eleven, Apple Daily
Huge growth potential with revolutionary idea By introducing different rental services, the company is also promoting the idea of a ‘sharing economy’ for a greener environment and sustainable future. People can be engaged in the sharing economy and the sharing of things through renting, and can get used to this kind of new consumption practice. SEG believes that it is a good opportunity to promote resources sharing within the community which would ultimately benefit the environment and would reduce needless drains on resources. Figure 3: Concept of sharing economy
Source: Company data
SEG (1178 HK)
3
Valuation The O2O rental platform developed by SEG is unique among Hong Kong listed companies and there is no direct comparable. As a result, we have selected some tech companies with e-commerce platforms listed in Hong Kong for comparison purposes. Figure 4: Peers comparison Company Name
Ticker
P/E
Last Price
Market Cap
Hist
Current
Next
P/B
Div Yield
(HK$)
(HK$'bn)
(x)
(x)
(x)
(x)
(%)
Trailing 12Net mth T/O
Profit
EV / EBITDA
GPM
('mn)
('mn)
(x)
(%)
(%)
(%)
(%)
Net EPS Margin Growth
ROE
ROA (%)
Currency
SHARE ECONOMY GR
1178 HK
0.22
1.07
N/A
N/A
N/A
3.56
0.0
106
(113)
N/A
32.8
-106.4
-167.9
-43.6
-18.5
HKD
e-Commerce company COGOBUY GROUP CHINA PARENTING PACIFIC ONLINE DX.COM HOLDINGS
400 HK 8361 HK 543 HK 8086 HK
10.40 2.30 2.01 0.12
15.46 2.36 2.28 0.27
32.3 53.3 11.6 N/A
27.2 N/A 9.9 N/A
20.4 N/A 8.9 N/A
6.63 6.89 2.15 N/A
0.0 0.0 7.9 0.0
10,820 80 1,077 376
380 35 173 (96)
31.0 53.2 6.9 N/A
8.1 87.8 64.8 36.7
3.6 43.3 16.4 -28.2
53.0 N/A (19.8) (77.5)
18.5 21.4 18.5 N/A
9.9 18.1 17.1 N/A
CNY CNY CNY HKD
32.4
18.5
14.6
5.23
2.0
49.3
8.8
(14.8)
Simple average
Source: Bloomberg, Quam Securities
Risk factors
The company’s business relies on the general adoption of the concept of sharing economy.
The reputation of the platform could be damaged by unsuitable rental items or inappropriate behavior of the users.
The company could be adversely affected by any imitation or unauthorised copying of the company’s business model.
The O2O rental services are exposed to potential regulatory and litigation risks in different jurisdictions.
Company Overview Share Economy Group Limited (previously Vitop Bioenergy Group Limited), established in 1992, is an international high-tech enterprise focused on high growth products and services. The company was listed on the Growth Enterprise Market in Hong Kong in 2002 and was transferred to the main board of the Hong Kong Stock Exchange in 2003. The principal activity of the SEG is investment holding. The Group has two main lines of business, namely healthcare and ECrent. Figure 5: Shareholding Structure Lau Ping Kee 10.07%
Yuen Wai Ming, Deborah 9.83%
Du Yonghong
Cheung Kwan
Zhou Guohua
7.11%
6.42%
5.61%
Stock code: 1178
As of 3 Jan 2017 Source: Company data, HKEX, Quam Securities
SEG (1178 HK)
4
Public 60.96%
Appendix: Financial Statements & Ratios Figure 6: Financial Statements & Ratios 2014 20 (10) 10
2015 28 (19) 8
2016 106 (71) 35
Other income and gains, net Other operating expenses Operating profit
3 (26) (13)
1 (37) (27)
2 (87) (50)
Finance costs Other gains/ (expenses) Profit before tax Income tax expense Profit after tax Attributable profit to shareholders Minority interest
0 (2) (15) 0 (15) (14) 2
1 (4) (30) 0 (30) (30) 1
0 (64) (113) (0) (113) (113) 1
Income Statement (HKD’mn) Revenue Cost of goods sold Gross profit
Key Ratios Debt to equity (%) Net debt to equity (%) Current ratio (x) Quick ratio (x) Interest coverage (x) Days inventory (days) Days receivable (days) Days payable (days) Cash conversion cycle (days) Ratio Analysis Growth (YoY%) Revenue EBITDA Net profit Diluted EPS Margins (%) Gross profit margin EBIT margin Net profit margin Other ratios (%) Return on average assets Return on average equity Dividend payout ratio
2014 0.00 (25.79) 4.25 1.18 na 713 26 na 522
2015 3.77 (34.23) 2.22 0.92 na 927 23 na 797
2016 2.15 (12.51) 7.36 2.62 na 185 76 na 181
2014
2015
2016
(3.2) 28.3 27.5 34.2
92.4 (8.8) (20.3) (0.6)
281.7 (76.2) (270.7) (167.9)
51.2 (61.3) (72.7)
30.5 (95.4) (109.5)
32.8 (44.0) (106.4)
(10.6) (12.9) na
(15.6) (22.0) na
(41.6) (51.9) na
Source: Bloomberg
SEG (1178 HK)
5
Balance Sheet (HKD’mn) Non-current assets PPE Intangible assets LT investments & receivables Others Total non-current assets Current assets Inventories Account receivables Bank balances and cash Others Total current assets Total assets Current liabilities Account payables ST borrowings Others Total current liabilities Non-current liabilities LT borrowings Other non-current liabilities Total non-current liabilities Total liabilities Shareholders’ equity Share capital Reserves Total shareholders’ equity Minority interest Total equity Cash Flow Statement (HKD'mn) Operating cash in/(out) flow Investing cash in/(out) flow Financing cash in/(out) flow Net change in cash Per Share (HKD) EPS Diluted EPS DPS BVPS
2014
2015
2016
2 0 24 0 27
3 0 77 0 80
2 34 39 0 75
19 1 28 56 105 132
48 1 63 43 156 236
24 43 40 125 231 306
6 0 18 25
8 6 56 70
13 6 13 31
0 0 0 25
0 0 0 70
0 4 4 36
191 (85) 105 2 107
303 (139) 164 1 113
511 (242) 270 1 166
2014 (15) 0 0 (15)
2015 35 (57) 81 59
2016 (178) (34) 188 (23)
2014 (0.008) (0.008) 0.000 0.057
2015 (0.013) (0.013) 0.000 0.066
2016 (0.036) (0.036) 0.000 0.060
Disclaimer and Risk Statement This document is published by Quam Securities Company Limited ("Quam Securities"), a licensed corporation (CE number AAC577) regulated by the Securities and Futures Commission in Hong Kong. Quam Securities is an affiliate of Quam Limited (0952.hk) and its group of companies (collectively "Quam Group"). This document is not intended for distribution to or use by, any person or entity who is a citizen or resident of any jurisdiction where such distribution or use would be contrary to applicable law or regulation within such jurisdiction. In particular but without limitation, neither this document nor any copy hereof may be taken or transmitted into Japan, Canada or the United States or distributed, directly or indirectly, into the United States or to any U.S person (within the meaning of Regulation S under the U.S. Securities Act of 1933) or general public located in Mainland China (but not including people in Hong Kong, Macau and Taiwan). This document is circulated to addresses solely and may not be reproduced or redistributed to any other person or published, in whole or in part, for any purpose. This document does not constitute an offer or a solicitation of an offer to buy or sell any securities. Any recommendation does not have regard to specific investment objectives, financial situation and particular needs of any specific addressee. Quam Securities accepts no liability whatsoever for any direct or consequential loss arising from any use of this document. The opinions and/or recommendations of this document do not take into account the recipients' own investment objectives, investment experience, financial situation and other personal circumstances. The recipients of this document shall be solely responsible for making their own independent investigation of the business, financial condition and prospects of companies referred to in this document. The research is based on information obtained from sources believed to be reliable, but Quam Securities does not make any representation or warranty as to its accuracy, completeness or correctness. This document is for informational purpose only and should not be treated as a recommendation on any particular securities, financial instrument, investment portfolio or trading strategy. Opinions and/or recommendations expressed in this document are subject to change without prior notice to all recipients. The prices of securities may move up or down, and past performance is not an indication of future performance. Investors shall consider seeking separate legal or financial advice before making investment decisions. The following analyst hereby certify that their views about the issuer and its securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Tsz Wang POON (CE No. BIB419) and their associates declare that as of the date of the publication of this report, they do not hold any financial interest in the company.
SEG (1178 HK)
6
QR DeCode Share Economy Group – O2O rental platform Share Economy Group Limited (SEG) had launched its portable charger rental service via the 7-Eleven network in Hong Kong in Jan 2017. During the first 10 days after launch, the company had deployed about 5,000 battery units while the total number of transactions had exceeded 7,000 times. Developing O2O rental service in HK – SEG believes that O2O (Online to offline) will be an important marketing trend in the future. As a result, SEG has acquired an online platform, namely “ECrent.com”, in order to build a location or community based user group. People could use the platform to rent out or rent some items that are necessary but seldom used, such as power tools, audio-video equipment and suitcases. In addition, users could easily locate the items, availability and pricing on the platform through its website or the mobile app.
Share Information Stock Code Quam’s Rating Last Closing (HK$) 52-week range (HK$) 3-mth ADT (HK$’mn) Market Cap. (HK$’mn) Shares outstanding (‘mn) Free float SH-HK Stock Connect SZ-HK Stock Connect
1178 HK Not Rated HK$0.22 0.13 – 0.26 4.34 1,067.2 4,964.3 47.8% No No
Substantial Shareholders Lau Ping Kee Yuen Wai Ming, Deborah Du Yonghong Cheung Kwan Zhou Guohua
10.07% 9.83% 7.11% 6.42% 5.61%
Share Price Performance
Seeking business opportunities with different companies – Riding on its recent success, the company is now looking for more opportunities to introduce more products and services in different channels, such as search engines, insurance companies and retail chains. It is SEG’s goal to become a preferred rental platform which might encourage SMEs to come up with innovative ideas on rental products and services. Source: Bloomberg
Building the largest rental platform – ECrent is an online rental platform, founded on the basis of a sharing economy, which aims to promote environmental protection at a global level. Since its establishment, the global platform of ECrent Worldwide has expanded coverage to over 40 countries with over 250 million pageviews and more than 30 million visitors monthly. SEG has also acquired a 0.34% interest in the United States operation of ECrent, and that business is applying to list on the NASDAQ in 1H17. We believe SEG could enjoy first-mover advantages such as reputation, customer base and operation know-how. The company is now focusing on expanding its business in Hong Kong and might also expand into mainland China in the future.
Key Financials – FY JUN HKD’mn FY14 FY15 Revenue 20 14 Operating profit (12) (24) Net profit (14) (25) EPS (HKD) Growth DPS (HKD) BVPS (HKD)
FY16 28 (26) (30)
(0)
(0)
(0.013)
0 0
0 0
0 0.066
n.a 2.5 n.a n.a
n.a 4.4 n.a n.a
PER (x) n.a PBR (x) 1.4 EV/EBITDA (x) n.a Dividend Yield (%) 0.0 Source: Company data
Tsz Wang Poon : +852 2971 5432 : [email protected]
For important disclosures regarding Quam Research, including with respect to any issuers mentioned herein, please refer to the disclaimers at the back of the report.
ECrent online platform It is an easy-to-use platform where a lessor just needs to pay HK$50 for each item that he or she wants to rent out, and the lessee could contact the lessor directly and complete the transaction. For an annual fee of HK$6,000, the lessor could have the option of opening an “online shop” on the platform for a year and there would be no limit on the number of rental items. A lessor could rent out different things on the same platfrom, from tangible items such as electronic equipment, clothing and power tools, to professional services such as tutoring, repairs and photography. The company has also developed an app for both Android and iOS which would allow the lessee to find the closest location to rent the item. Figure 1: ECrent online platform
Source: ECrent.com
Portable chargers for smart phones ECrent (HK), a wholly-owned subsidiary of the company, has commenced co-operation with over 700 7-Eleven convenient stores in Hong Kong in January 2017, to launch a portable charger rental service. During the first 10 days of service, the company had provided about 5,000 portable chargers while the total number of transactions exceeded 7,000 times. People could rent a charger for HK$10 plus a deposit of HK$90 for 3 days and it could be returned to any 7-Eleven store. There would be an overdue charge of HK$10/day until the deposit runs out. The basic specification of the battery pack is 4000mAh and it could be used on both iPhone and Android
SEG (1178 HK)
2
phones. The estimated cost of the battery pack is about HK$25 and ECrent takes 40% of the revenue from this service while 7-Eleven takes the remaining 60%. As such, it is expected that each battery only needs to be transacted 6-7 times in order to achieve a break-even point for SEG. This is an opportunity to increase brand and market exposure for SEG and at the same time producing additional income streams for the company. In addition, this rental service is likely to be extended to other products in the future. Figure 2: Portable chargers
Source: 7-Eleven, Apple Daily
Huge growth potential with revolutionary idea By introducing different rental services, the company is also promoting the idea of a ‘sharing economy’ for a greener environment and sustainable future. People can be engaged in the sharing economy and the sharing of things through renting, and can get used to this kind of new consumption practice. SEG believes that it is a good opportunity to promote resources sharing within the community which would ultimately benefit the environment and would reduce needless drains on resources. Figure 3: Concept of sharing economy
Source: Company data
SEG (1178 HK)
3
Valuation The O2O rental platform developed by SEG is unique among Hong Kong listed companies and there is no direct comparable. As a result, we have selected some tech companies with e-commerce platforms listed in Hong Kong for comparison purposes. Figure 4: Peers comparison Company Name
Ticker
P/E
Last Price
Market Cap
Hist
Current
Next
P/B
Div Yield
(HK$)
(HK$'bn)
(x)
(x)
(x)
(x)
(%)
Trailing 12Net mth T/O
Profit
EV / EBITDA
GPM
('mn)
('mn)
(x)
(%)
(%)
(%)
(%)
Net EPS Margin Growth
ROE
ROA (%)
Currency
SHARE ECONOMY GR
1178 HK
0.22
1.07
N/A
N/A
N/A
3.56
0.0
106
(113)
N/A
32.8
-106.4
-167.9
-43.6
-18.5
HKD
e-Commerce company COGOBUY GROUP CHINA PARENTING PACIFIC ONLINE DX.COM HOLDINGS
400 HK 8361 HK 543 HK 8086 HK
10.40 2.30 2.01 0.12
15.46 2.36 2.28 0.27
32.3 53.3 11.6 N/A
27.2 N/A 9.9 N/A
20.4 N/A 8.9 N/A
6.63 6.89 2.15 N/A
0.0 0.0 7.9 0.0
10,820 80 1,077 376
380 35 173 (96)
31.0 53.2 6.9 N/A
8.1 87.8 64.8 36.7
3.6 43.3 16.4 -28.2
53.0 N/A (19.8) (77.5)
18.5 21.4 18.5 N/A
9.9 18.1 17.1 N/A
CNY CNY CNY HKD
32.4
18.5
14.6
5.23
2.0
49.3
8.8
(14.8)
Simple average
Source: Bloomberg, Quam Securities
Risk factors
The company’s business relies on the general adoption of the concept of sharing economy.
The reputation of the platform could be damaged by unsuitable rental items or inappropriate behavior of the users.
The company could be adversely affected by any imitation or unauthorised copying of the company’s business model.
The O2O rental services are exposed to potential regulatory and litigation risks in different jurisdictions.
Company Overview Share Economy Group Limited (previously Vitop Bioenergy Group Limited), established in 1992, is an international high-tech enterprise focused on high growth products and services. The company was listed on the Growth Enterprise Market in Hong Kong in 2002 and was transferred to the main board of the Hong Kong Stock Exchange in 2003. The principal activity of the SEG is investment holding. The Group has two main lines of business, namely healthcare and ECrent. Figure 5: Shareholding Structure Lau Ping Kee 10.07%
Yuen Wai Ming, Deborah 9.83%
Du Yonghong
Cheung Kwan
Zhou Guohua
7.11%
6.42%
5.61%
Stock code: 1178
As of 3 Jan 2017 Source: Company data, HKEX, Quam Securities
SEG (1178 HK)
4
Public 60.96%
Appendix: Financial Statements & Ratios Figure 6: Financial Statements & Ratios 2014 20 (10) 10
2015 28 (19) 8
2016 106 (71) 35
Other income and gains, net Other operating expenses Operating profit
3 (26) (13)
1 (37) (27)
2 (87) (50)
Finance costs Other gains/ (expenses) Profit before tax Income tax expense Profit after tax Attributable profit to shareholders Minority interest
0 (2) (15) 0 (15) (14) 2
1 (4) (30) 0 (30) (30) 1
0 (64) (113) (0) (113) (113) 1
Income Statement (HKD’mn) Revenue Cost of goods sold Gross profit
Key Ratios Debt to equity (%) Net debt to equity (%) Current ratio (x) Quick ratio (x) Interest coverage (x) Days inventory (days) Days receivable (days) Days payable (days) Cash conversion cycle (days) Ratio Analysis Growth (YoY%) Revenue EBITDA Net profit Diluted EPS Margins (%) Gross profit margin EBIT margin Net profit margin Other ratios (%) Return on average assets Return on average equity Dividend payout ratio
2014 0.00 (25.79) 4.25 1.18 na 713 26 na 522
2015 3.77 (34.23) 2.22 0.92 na 927 23 na 797
2016 2.15 (12.51) 7.36 2.62 na 185 76 na 181
2014
2015
2016
(3.2) 28.3 27.5 34.2
92.4 (8.8) (20.3) (0.6)
281.7 (76.2) (270.7) (167.9)
51.2 (61.3) (72.7)
30.5 (95.4) (109.5)
32.8 (44.0) (106.4)
(10.6) (12.9) na
(15.6) (22.0) na
(41.6) (51.9) na
Source: Bloomberg
SEG (1178 HK)
5
Balance Sheet (HKD’mn) Non-current assets PPE Intangible assets LT investments & receivables Others Total non-current assets Current assets Inventories Account receivables Bank balances and cash Others Total current assets Total assets Current liabilities Account payables ST borrowings Others Total current liabilities Non-current liabilities LT borrowings Other non-current liabilities Total non-current liabilities Total liabilities Shareholders’ equity Share capital Reserves Total shareholders’ equity Minority interest Total equity Cash Flow Statement (HKD'mn) Operating cash in/(out) flow Investing cash in/(out) flow Financing cash in/(out) flow Net change in cash Per Share (HKD) EPS Diluted EPS DPS BVPS
2014
2015
2016
2 0 24 0 27
3 0 77 0 80
2 34 39 0 75
19 1 28 56 105 132
48 1 63 43 156 236
24 43 40 125 231 306
6 0 18 25
8 6 56 70
13 6 13 31
0 0 0 25
0 0 0 70
0 4 4 36
191 (85) 105 2 107
303 (139) 164 1 113
511 (242) 270 1 166
2014 (15) 0 0 (15)
2015 35 (57) 81 59
2016 (178) (34) 188 (23)
2014 (0.008) (0.008) 0.000 0.057
2015 (0.013) (0.013) 0.000 0.066
2016 (0.036) (0.036) 0.000 0.060
Disclaimer and Risk Statement This document is published by Quam Securities Company Limited ("Quam Securities"), a licensed corporation (CE number AAC577) regulated by the Securities and Futures Commission in Hong Kong. Quam Securities is an affiliate of Quam Limited (0952.hk) and its group of companies (collectively "Quam Group"). This document is not intended for distribution to or use by, any person or entity who is a citizen or resident of any jurisdiction where such distribution or use would be contrary to applicable law or regulation within such jurisdiction. In particular but without limitation, neither this document nor any copy hereof may be taken or transmitted into Japan, Canada or the United States or distributed, directly or indirectly, into the United States or to any U.S person (within the meaning of Regulation S under the U.S. Securities Act of 1933) or general public located in Mainland China (but not including people in Hong Kong, Macau and Taiwan). This document is circulated to addresses solely and may not be reproduced or redistributed to any other person or published, in whole or in part, for any purpose. This document does not constitute an offer or a solicitation of an offer to buy or sell any securities. Any recommendation does not have regard to specific investment objectives, financial situation and particular needs of any specific addressee. Quam Securities accepts no liability whatsoever for any direct or consequential loss arising from any use of this document. The opinions and/or recommendations of this document do not take into account the recipients' own investment objectives, investment experience, financial situation and other personal circumstances. The recipients of this document shall be solely responsible for making their own independent investigation of the business, financial condition and prospects of companies referred to in this document. The research is based on information obtained from sources believed to be reliable, but Quam Securities does not make any representation or warranty as to its accuracy, completeness or correctness. This document is for informational purpose only and should not be treated as a recommendation on any particular securities, financial instrument, investment portfolio or trading strategy. Opinions and/or recommendations expressed in this document are subject to change without prior notice to all recipients. The prices of securities may move up or down, and past performance is not an indication of future performance. Investors shall consider seeking separate legal or financial advice before making investment decisions. The following analyst hereby certify that their views about the issuer and its securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Tsz Wang POON (CE No. BIB419) and their associates declare that as of the date of the publication of this report, they do not hold any financial interest in the company.
SEG (1178 HK)
6
