• Revenue spiked >3x in last 5 years, with the company also adding 300mn users. Incremental conversion of Monthly Active Users (MAU) and increasing prices (ARPU) to drive revenue growth of 54% over the next 2 years.
• Recurring revenue business model, around 90% of revenue is recurrent from ~190mn premium subscribers growing at 30% p.a. over last 5 years, churn levels improving YoY.
• The faster growing advertising revenue from podcasts and audiobooks will be a boost to gross margins.
• Initiate coverage with a BUY recommendation and DCF-based target price (WACC 7.5%, g 3.0%) of US$117.00

Company Background

Spotify Technology S.A. operates the world’s most popular audio streaming subscription service with >430 million monthly active users across 180+ countries and territories. The bulk of its total revenue comes from premium service subscriptions (87.5%), and the remaining 12.5% comes from advertising revenue in its ad-supported segment. Spotify currently has the largest market share (31%) in the global audio streaming industry, with more users than the next 2 closest competitors combined.

Investment Highlights

• Growing user base and rising prices to drive future revenue growth. SPOT has consistently grown both its revenue and user base, by more than 3x from FY16 to FY21. Premium revenue – which drives ~90% of revenue growth, grew 22% YoY in 2Q22 to EUR2.5bn, leveraging from the conversion of MAUs into premium subscribers. SPOT is also the leader (31% market share) in the global audio streaming market – an industry that is expected to increase 9% CAGR until FY25e, and has the largest library of audio content across formats like music, podcasts, and audiobooks. We expect the company’s continued ability to convert existing MAUs into premium subscribers through its engaging content, coupled with increasing subscription prices – as demonstrated by rising ARPU (6% YoY), to drive revenue growth of ~54% over the next 2 years.
• Recurring revenue business model with churn levels improving YoY. SPOT operates a recurring revenue business model from its premium monthly subscriptions (~90% of total revenue). Premium revenue has grown over the last 5 years at a 26% CAGR, largely due to a 130mn jump in subscribers. With churn levels improving YoY, premium revenue continues to be a base of resilient revenue generation for SPOT, even amidst a weaker macroeconomic environment this year. ARPU saw an inflexion point in 1Q21, and has since been improving 5-6% YoY as a result of increasing subscription prices – which are expected to continue trending upwards. SPOT’s ability to add subscribers and incrementally raise prices at the same time should allow the company to expand their resilient base of premium revenue further.
• Stretching higher-margin ad revenue to boost margins. Gross margins were 27% in FY21 – increasing about 1.5% YoY, with management reiterating its goal of achieving 35-40% gross margins in the near future as revenue per listening hour continues to outpace cost per listening hour. Additionally, SPOT remains focused on growing its higher-margin ad revenue (12.5% of revenue), expanding its non-music content – podcast and audiobooks, to create more ad-placement opportunities for advertisers. We expect this focus on growing ad revenue to help overall margin expansion moving forward.

We Initiate coverage with a BUY rating and a target price of US$117.00 based on DCF valuation, with a WACC of 7.5% and terminal growth of 3%.

REVENUE

SPOT posted EUR9.7bn in revenue for FY21, increasing 23% YoY (Figure 6), with the majority (87.5%) of its total revenue coming from its premium service subscriptions, and the remaining 12.5% coming from advertising revenue in its ad-supported segment.

Premium Subscription: SPOT generated about EUR8.5bn in revenue for this segment last year, growing 19% YoY (Figure 8), with a 5-Yr CAGR of 26%. From the company’s latest 2Q22 filings, revenue from premium subscriptions came in at EUR2.5bn, up 22% YoY (14% YoY in constant currency), primarily due to a follow-through effect on subscriber gains. Revenue in this segment is earned mainly through the sale of its premium services – on-demand and offline listening. This service is sold both directly to end-users, and also through distribution partners such as telecommunications companies. The premium service is typically paid for on a monthly recurring basis, with average revenue per user (ARPU) the main metric used to monitor pricing trends. ARPU had been declining due to expansion into lower-priced regions but has since reached an inflexion point as a result of strong pricing power, increasing QoQ since 1Q21.

Ad-Supported: SPOT generated about EUR1.2bn in ad-supported revenue for FY21, with a growth rate of about 62% YoY (Figure 10), and a 5-Yr CAGR of 33%. Ad-Supported revenue for 2Q22 grew 31% YoY (17% in constant currency), led by growth in ad impressions and cost per 1000 impressions (CPM). Revenue from this segment is generated primarily from the sale of display, audio, and video advertising through ad impressions across the company’s music, podcast, and audiobook content. Advertising arrangements are usually sold on a cost-per-thousand basis and recognized when impressions are delivered on the platform

Revenue Growth: We forecast total revenue for FY22e to hit EUR12bn, which would represent a 24% YoY growth, supported by a combination of FX tailwinds, increasing premium subscribers, and increasing ad revenue. Revenue from premium subscribers in FY22e is expected to hit EUR10.4bn (23% YoY), primarily from subscriber growth and slight increases in the subscription price. Ad-supported revenue is expected to grow 30% YoY to EUR1.6bn, on the back of increasing ad impressions.

RULE OF 40

The “Rule of 40” was first introduced as a benchmark to measure the balance between growth and profitability of SaaS companies, taking into account both revenue growth, as well as profitability (Revenue Growth + EBITDA Margins), with the addition of both metrics needing to exceed the 40% threshold. We have modified this slightly by averaging revenue growth over a 3-year period compared with just a single period growth rate. Adding together SPOT’s 3-year average revenue growth of 23% and its EBITDA margin of 2%, the total of 25% is less than our required threshold of 40% (Figure 12). However, we do expect EBITDA margins to continue rising due to SPOT’s growth in operating leverage.

EXPENSES

SPOT’s cost of sales grew 21% in FY21 to EUR7.1bn (Figure 13), slightly below the total revenue growth of 23%. Cost of sales (73% of total revenue) encompasses mainly royalties and distribution costs related to content streaming paid to third parties – record labels, music publishers, etc. Through FY21, the company had paid more than EUR26bn in royalties, making them one of the largest engines for revenue growth to artists and labels in the music industry.

Premium subscriber cost of sales grew 17% YoY, but decreased slightly as a percentage of premium subscriber revenue from 72% in FY20, to 71% in FY21. The YoY increase was mainly driven by growth in premium subscribers and increases in publishing licensing rates. Ad-supported cost of sales grew 48% YoY, but decreased as a percentage of ad-supported revenue from 99% in FY20 to 90% in FY21. The YoY increase was mainly due to higher royalty and revenue-sharing costs due to growth in advertising revenue and increases in publishing rates.

Operating expenses include research and development (9% of revenue); sales and marketing (12%); and general and administrative (5%). R&D expenses grew 9% YoY, primarily due to personnel-related costs as a result of increased headcount to support growth. Sales and marketing expense grew 10% YoY, primarily due to a EUR128mn increase in advertising costs for marketing campaigns. General and administrative expenses increased only 2% YoY. Total Operating Expense for FY21 was EUR2.5bn (Figure 14) – 26% of revenue.

MARGINS

SPOT’s gross margin was 27% in FY21, and has been gradually improving over the last 5 years (Figure 15). Premium subscriber gross margin was 29.2% in FY21, up 1% YoY, and an increase of 7.3% from FY17 – 21.9% (Figure 16). The increase was primarily due to certain benefits from marketplace programs and beneficial changes in rights holder liabilities estimates. Ad-supported gross margin was 9.7% in FY21, compared with 1% in FY20 (Figure 16). The sharp increase was primarily due to a decrease in streaming delivery, ad servicing, and production costs as a percentage of revenue.

Typically, gross margins have been relatively low due to high royalties paid out to record labels and music rights holders, and continued investments in building up its Podcast and Audiobook content. However, we do expect gross margins to start climbing as the company begins slowing its product investments as a % of revenue over time. Management has also reiterated its goal for gross margins to be in the 35-40% range moving forward.

Operating margin was 1.0% in FY21, and has been steadily increasing over the years – up from -12% in FY16 (Figure 17). We forecast operating margins to dip slightly in FY22e due to unfavourable FX headwinds – SPOT has a larger percentage of US Dollar denominated expenses, but to resume its path upwards in FY23e and beyond, mainly due to increasing operating leverage.

Net margin in FY21 was -0.4%, and has been improving YoY, with positive net margins expected for the first time in FY23e as the company leverages on its growing user base and increasing pricing power (Figure 18).

BALANCE SHEET

Assets: Cash and cash equivalents increased by about EUR1.6bn YoY in FY21 to EUR2.7bn (Figure 19), largely due to a EUR1.2bn issuance of exchangeable notes, and improving cash generated from operations. Short-term investments were at EUR756mn, and generally consist of commercial paper, corporate debt securities, collateralized reverse purchase agreements, and government and agency debt securities, with an average duration of less than 2 years.

Liabilities: SPOT’s largest current liability was its accrued fees payable to rights holders of its streaming content, and was EUR1.4bn in FY21 – falling within accrued expenses and other liabilities category.

US$1.5bn Exchangeable Notes

SPOT issued US$1.5bn worth of 5-year 0% exchangeable notes in FY21, and it was the company’s largest non-current liability. These notes mature in March 2026 with a strike price of ~US$515 per ordinary share (around 5x its current price). Net proceeds for this issuance was EUR1.2bn after transaction costs. The company will be able to repay the notes with its net cash hoard of EUR2.1bn by 2023e.

CASH-FLOW

Free Cash Flow (FCF) grew 51% YoY in FY21 to EUR277mn (Figure 20) and has been increasing at a 5-Yr CAGR of 32%. We expect FCF to triple by FY23e on the back of increasing profitability and operating leverage.

BUSINESS MODEL

Similar to how Netflix has transformed the way people consume on-demand visual entertainment, SPOT has also provided consumers the ability to stream music on demand, transforming the music industry through its >80 million tracks – including >4.4 million podcast titles. The company has also reiterated its decision to actively invest in other forms of alternative and spoken word content like audiobooks and podcasts to complement its existing music library – through direct ownership or licensing arrangements. SPOT also leverages on relationships in the music industry, data analytics, and software, to build and enhance a two-sided marketplace for both users and creators, empowering creators by unlocking new monetization opportunities, and reshaping the way users enjoy, discover, and share audio content. SPOT’s two distinguished services – premium and ad-supported, live independently of each other, with ad-supported services acting as a funnel that drives a significant portion of premium subscriber additions.

Premium Subscription: SPOT provides its premium subscribers unlimited online and offline high-quality streaming access (via PC, mobile, and tablets), to its library of music, podcasts, audiobooks. Subscribers also have the option of choosing from a variety of price plans – Standard, Family, Duo, Student. Prices vary between plans, and are adapted to local markets to align with consumer purchasing power. Subscriptions are usually recurring on a monthly basis, but SPOT has also expanded to include prepaid options and durations other than monthly (longer or shorter durations) to cater to local markets. Most of the new premium subscribers are generally sourced from converting ad-supported users through online platform and marketing engagements.

Ad-Supported: No subscription or platform fees, provide users with limited on-demand online access to music catalogue, but unlimited access to podcasts via PC, mobile, tablets. It also serves as both an acquisition channel for premium subscribers, and a free option for users who are unable or unwilling to pay a monthly subscription fee. Revenue is generated via the sale of video, display, and audio advertisement placements. Advertising arrangements are usually sold on a cost-per-thousand basis. SPOT is also constantly looking to introduce new advertising products across all catalogues. An example of this would be the introduction of an audio advertising marketplace, Spotify Audience Network (SPAN), with SPOT acting as an enabler helping publishers sell targeted advertisements to brand partners. The prospect of monetization has been successful in incentivizing content creators into publishing more content into SPAN, which has in turn made it more attractive for advertisers to be a part of this ecosystem, creating sort of a flywheel effect which will benefit the growth in Ad-supported revenue. Revenue from this segment is reliant on the number of users, total hours of content consumed, and SPOT’s ability to provide relevant innovative advertising products.

INDUSTRY

SPOT is the leader in audio streaming services globally, with almost the same number of subscribers as the next 3 platforms combined (Figure 23). As of FY21, SPOT had an estimated 31% market share in the global audio streaming market, based on subscriber base – almost twice that of its nearest competitor Apple Music. Other competitors include YouTube Music, Amazon Music, SiriusXM, and Pandora. The company’s highest penetrated countries are developed regions like North America and Europe, with other regions such as Asia still in its early stages of adoption (Figure 24).

The global audio streaming industry has continued to grow at a 3-YR CAGR of 19% since FY18, with users also growing at a similar CAGR of 18%. Several factors have contributed to this: 1) increasing smartphone penetration globally has allowed more users to consume on-demand audio wherever they go; 2) traditional radio usage has been declining, with digital consumption taking its share, particularly with car usage being a huge use case in North America. We do expect growth rates to come down slightly, to about 9% CAGR over the next 4 years, mainly due to a huge adoption wave over the last 2 years that was driven by COVID-19 (Figure 25). Similarly, we expect the growth in users to slow to about 7% CAGR over the same period moving forward (Figure 26).

• Dominant market presence in Singapore/Vietnam/Malaysia. Around 41% of revenue is from current agent subscription fees with a 82% renewal rate.
• Pricing power and increasing customer spend through premium products are drivers for the expected revenue CAGR of 37% over the next two years.
• Initiate coverage with a BUY recommendation and DCF-based target price (WACC 10.1%, g 3.0%) of US$5.73.

Company Background

PropertyGuru Group Ltd. (PGRU) operates a digital real estate marketplace focusing mainly on Southeast Asian markets (Singapore, Vietnam, Malaysia, Thailand, Indonesia) serving property seekers, real estate agents, property developers, and banks & valuers. Its core business segments are Marketplaces, which is a property listing portal (97% of FY21 revenue), and Fintech and Data Services, which offers mortgage broking products, market intelligence and workflow automation platform (3% of FY21 revenue).

Investment Highlights

1. Dominant presence in property marketplace. PGRU is the leading online property marketplace platform in Southeast Asia, with >64,000 monthly agent customers, ~40 million monthly property seekers, and >3.5 million property listings on its platform – dominating the region with 76%/96%/75% market share in Singapore/Malaysia/Vietnam respectively. Revenue grew at a 4-YR CAGR of 22% from S$45mn in FY17 to S$101mn in FY21, and this is expected to grow at a 2-YR CAGR of 37% through FY23e because of increased premium product adoption by agent customers. We view the company’s dominance in the market will pose as a significant challenge for new entrants attempting to compete for market share due to the network effects resulting from high penetration of agents and home seekers on its platform.
2. Strong pricing power with increasing renewal rate. PGRU is able to command premium prices on its products compared to other competitors, with its standard subscription tier costing 43% more than its biggest competitor, while still achieving ~82% renewal rate from agents in 1H22. This will allow the company to grow its revenue by incrementally increasing its prices in the future, especially when agents are likely to face high cost of switching due to home seekers being accustomed to using PGRU’s platform. PGRU is also focusing on increasing operating leverage, reducing variable costs by minimizing headcount increase, to achieve higher margins moving forward.
3. Business resilient through property cycles. PGRU’s revenue is shielded from market downturns due to their annual subscription model, with agents likely to increase spendings on discretionary products, such as exposure booster, during weak property market periods as they try to boost their listings visibility. Revenue from agent discretionary products made up 53% of total agents revenue in 1H22, up from 45% in 1H21, with total revenue from agents increasing 45% YoY even as private residential sale volumes in Singapore were down 27%. We view the resilient performance as a signal that external factors have little impact on PGRU’s ability to generate stable earnings moving forward.

We Initiate coverage with a BUY rating and a target price of US$5.73 based on DCF valuation, with a WACC of 10.1% and terminal growth of 3%.

REVENUE

PGRU posted S$101mn in revenue for FY21 – increasing 23% YoY, with 97% of its total revenue coming from its Marketplaces segment and 3% from its Fintech & Data Services segment (Figure 1).

Marketplaces: Marketplaces is PGRU’s main business segment where it operates an online property classified listing portal. The platform allows property buyers/tenants to look for and real estate agents/developers to list available properties and new developments. PGRU earns revenue by: 1) charging property agents tiered annual subscription fees in Singapore, Malaysia, Thailand, and Indonesia; 2) per listing fees in Vietnam; 3) additional fees for optional features and add-ons across all markets; 4) charging developers digital advertising fees; and 5) software-as-a-service (SaaS) sales for process automation solution.

The main metrics used to track performance in this segment are Average Revenue per Agent (ARPA) and Average Revenue per Listing (ARPL). ARPA is applicable for agent revenues across all markets, except Vietnam, while ARPL is applicable for agent revenues specifically only for Vietnam.

Revenue from this segment was S$97.9mn for FY21, increasing 21% YoY. Singapore was the biggest contributor to the segment, making up 57% of the Marketplaces revenue, followed by Vietnam making up 19% (Figure 1). Singapore ARPA has increased quarter-on-quarter (QoQ) driven by increase in premium product adoption and subscription price in 4Q21 while Vietnam’s ARPL also grew QoQ as a result of increase in number of listings and penetration of premium services.

Fintech & Data Services: Launched in FY20, PGRU’s Fintech segment provides mortgage brokering services, which currently is available only in Singapore, by matching home buyers with suitable mortgages that are advertised by banks. The company has referral arrangements with major banks in Singapore and it earns revenue by: 1) charging financial institutions commissions on mortgage fulfillment; and 2) digital advertising fees.

Aside from mortgage brokering, PGRU also has data & software business (Data Services) where it provides B2B clients (including property valuers, banks, developers, agencies, auditors and consultancies) access to its proprietary information on the real eastate market and workflow automation solutions. Revenue is earned by charging clients subscription fees for platform usage.

Mortgage brokering business performance is measured by the amount of take rate, while the data services business is measure by the average price charged per consumer. Both Fintech and Data Services segments combined for a revenue of S$2.9mn in FY21, growing 179% YoY.

Revenue Growth: We forecast total revenue for FY22e to hit S$145mn, which would represent a 44% YoY growth, mainly driven by PGRU’s dominant presence that would enable it to continue capture demand, especially from new property agents entering the industry, and its strong pricing power coupled with high subscription renewal rate. Growth is also driven by agents’ increased adoption of premium subscription tiers and spending on discretionary products.

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• 3Q22 results were in line with expectations. 9M22 revenue/PATMI was at 74%/75% of our FY22e forecasts. Total revenue grew 13% YoY to US$4.4bn, driven by 13%/14% YoY increases in Digital Media and Digital Experience revenues.
• Adobe agreed to acquire collaborative design software firm Figma in a cash-and-stock deal worth US$20bn. The company is acquiring Figma for 50x its FY22e annual recurring revenue (ARR) of US$400mn. The transaction is expected to close in FY23e and aims to expand tools for creative professionals. We believe that the deal would take out an emerging competitor as Figma poses a potential threat standalone.
• We nudge lower our FY22e revenue/PATMI by 1% due to macroeconomic uncertainty and FX headwinds. On a standalone basis, we maintain a BUY recommendation on ADBE with a lowered DCF target price of US$420.00 (prev. US$549.00), with an increased WACC of 7.1% and unchanged terminal growth rate of 4.0%. Overall, we believe that Adobe’s long-term secular tailwinds remain intact, including paperless workflows, explosion in digital content creation and continued shift to the cloud. Completion of the Figma transaction will cause a 7% downgrade to our target price due to operating margin dilution and additional shares in the diluted share count.

The Positives

+ Document Cloud strength continues. Document Cloud revenue grew 23% YoY to US$607mn and Document Cloud annual recurring revenue (ARR) grew 26% YoY to US$2.2bn. The main growth drivers include strong demand for PDF solutions across computing devices and momentum in AdobeSign. Key customer wins in 3Q22 include Amazon, Boeing, and ServiceNow. Document Cloud is accelerating document productivity and workflows with over 300bn PDFs opened and nearly 8bn e-signatures processed each year. Adobe also announced enhancements to Acrobat web experience such as High Contrast and Read Out Loud.

+ Demand for Creative Cloud remains robust. Creative Cloud revenue was US$2.6bn, up 11% YoY. Adobe added US$330mn of net new Creative Cloud ARR in 3Q22. Much of the Creative Cloud revenue growth was supported by significant growth in new users (particularly in Creative Cloud Express) and continued momentum in growth initiatives such as Frame.io and Substance. The demand for its photography, imaging and video applications was strong due to the surge in digital content creation.

+ Resilient Digital Experience. Digital Experience revenue grew 14% YoY to US$1.1bn driven by strength in the enterprise segment with large deal wins and continued momentum for Adobe Experience Platform applications. Workfront remained strong as well with revenue growing above 35% YoY. Key customer wins include T-Mobile, Morgan Stanley, and Qualcomm.

The Negatives

– Acquisition of Figma is expensive and dilutive. Adobe has signed a definitive merger agreement to acquire collaborative design software firm Figma for US$20bn. The deal values Figma at almost 50x its FY22e ARR of US$400mn. Adobe noted it could lower margins by 100-200 bps over the next two years. Management also expects the deal to be accretive to adjusted EPS only at the end of year three (FY26). The transaction will be funded by 50% cash and 50% stock, and is expected to close in FY23, subject to regulatory and shareholder approval.

Outlook

For 4Q22e, Adobe expects GAAP EPS of US$2.44 (adj. EPS of US$3.50) on total revenue of US$4.52bn. Adobe also expects Digital Media net new ARR of US$550mn for 4Q22e driven by price increases at renewals in both Creative and Document Cloud segments. Additionally, the company expects revenue growth of 10%/13% YoY in the Digital Media and Digital Experience segments. While acquiring fast-growing Figma may boost Adobe’s growth rate and give it a competitive advantage, the huge acquisition price is expected to have an impact on profitability.

• 2Q23 results were in line with expectations. 1H23 revenue/adjusted PATMI was at 48%/45% of our FY23e forecasts. Total revenue grew 22% YoY to US$7.7bn driven by continued demand for its Customer 360 offerings and new customer wins.
• Future contracted revenue or remaining performance obligations (RPO) grew by 15% YoY to US$41.6bn. Multi-cloud adoption maintained traction as the number of customers purchasing five or more of Salesforce’s cloud products grew by double digits.
• We maintain a BUY recommendation with a lowered DCF target price of US$213.00 (prev. US$253.00), with an increased WACC of 6.6% and a terminal growth rate of 4.0%. We nudge lower our FY23e revenue/adjusted PATMI by 2%/1% due to FX headwinds and cautious IT spending environment. Despite the macro impact, Salesforce enjoys longer term tailwinds from cloud-based digital transformation trends as companies look to form a more holistic views of their customers.

The Positives

+ Revenue beat top-end of guidance. Salesforce recorded revenue of US$7.7bn for 2Q23, slightly above the top-end of its guidance, representing a 22% YoY growth (26% YoY in constant currency). Revenue growth was driven mainly by Sales (15% YoY) and Service (14% YoY) cloud segments and accounted for 49% of total revenue during the quarter. Platform, which includes collaboration tool Slack, rose 53% YoY to US$1.5bn – the highest YoY revenue increase in 2Q23. Slack contributed US$376mn to 2Q23 revenue (25% of Platform), above the company’s estimate of US$360mn. The number of paid customers on Slack spending over US$100K annually surged by more than 40% YoY in 2Q23.

+ In-line metrics supporting growth. Remaining performance obligations (RPO), which represent future revenue that is under contract but hasn’t been recognized, grew by 15% YoY to US$41.6bn. The current portion of RPO (cRPO), which the company expects to be recognized in the next 12 months, increased by 15% YoY to US$21.5bn. This is mainly because of continued demand for its Customer 360 offerings and new customer wins. Multi-cloud adoption maintained traction as the number of customers purchasing five or more of Salesforce’s cloud products grew by double digits. Also, the attrition rate remained at record lows of about 7.5%.

+ Authorizes first ever US$10bn stock buyback. Salesforce announced a share repurchase program for up to US$10bn to offset dilution from stock-based compensation. Management also stated that it plans to maintain a healthy balance sheet to help fund any future M&A and ongoing investments in organic innovation.

The Negatives

 Higher-than-expected FX headwinds. FX had a negative impact of US$250mn on 2Q23 revenues (368% of PATMI), higher than the company’s guidance of US$200mn. Currency is now expected to negatively impact FY23e revenue growth by US$800mn, up from the US$600mn projected previously.

Outlook

For FY23e, Salesforce reduced its revenue guidance to US$30.9bn to US$31.0bn (prev US$31.7bn to US$31.8bn), representing growth of about 17% YoY. The downward revision was mainly because of unfavourable foreign currency exchange rates and cautious buying behaviour resulting in a lengthened sales cycle, increased deal scrutiny, and deal compression. The updated guidance includes US$1.5bn of revenue contribution from Slack business. However, Salesforce maintained its adjusted operating margin forecast of 20.4% driven by higher operating leverage (measured hiring and lower travel and entertainment expenses). Salesforce also slightly reduced its adjusted EPS guidance range to US$4.71 to US$4.73 (prev US$4.74 to US$4.76) but reiterated its GAAP EPS range of US$0.38 to US$0.40.

For 3Q23e, Salesforce expects adjusted EPS to be in the range of US$1.20 to US$1.21 on total revenue of US$7.825bn at the midpoint of guidance. The company also expects cRPO growth of about 12% YoY.

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• 1H22 revenue was at 42% our FY22e forecasts. Net loss was worse than expected at 79% of our FY22e forecasts due to higher operating expenses and tax rate.
• 29% YoY revenue growth, with 51%/214% YoY growth in Shopee and SeaMoney. Shopee generated more international (ex-China) revenue than competitor, Alibaba, and was close to achieving positive adjusted EBITDA per order in APAC for the quarter.
• Net loss grew 115% YoY due to increasing expenses in G&A and R&D, and US$177mn goodwill impairment loss. Shopee revenue guidance for FY22e suspended due to uncertain macroeconomic environment, and shift in focus towards profitability metrics.
• We lower our FY22e revenue slightly to reflect weaker e-commerce growth, and we increase our net loss forecasts by 43% to reflect higher expenses. We maintain a BUY recommendation with a lowered DCF target price of US$110.00 (prev US$150.00), with an increased WACC of 7.6%, lower EBITDA and a terminal growth rate of 3.0%.
• 1H22 revenue was at 42% our FY22e forecasts. Net loss was worse than expected at 79% of our FY22e forecasts due to higher operating expenses and tax rate.
• 29% YoY revenue growth, with 51%/214% YoY growth in Shopee and SeaMoney. Shopee generated more international (ex-China) revenue than competitor, Alibaba, and was close to achieving positive adjusted EBITDA per order in APAC for the quarter.
• Net loss grew 115% YoY due to increasing expenses in G&A and R&D, and US$177mn goodwill impairment loss. Shopee revenue guidance for FY22e suspended due to uncertain macroeconomic environment, and shift in focus towards profitability metrics.
• We lower our FY22e revenue slightly to reflect weaker e-commerce growth, and we increase our net loss forecasts by 43% to reflect higher expenses. We maintain a BUY recommendation with a lowered DCF target price of US$110.00 (prev US$150.00), with an increased WACC of 7.6%, lower EBITDA and a terminal growth rate of 3.0%.

The Positive

+ Growth drivers still performing well, with Shopee close to positive adjusted EBITDA per order.  SE recorded revenues of US$2.9bn for 2Q22, up 29% YoY. Shopee grew 51% YoY, with gross orders up 42% YoY, and gross margins improving sequentially QoQ as a result of faster growth in higher profit margin items like transaction-based fees and ad revenue. Shopee also generated more international (ex-China) revenue than e-commerce giant Alibaba for the first time. Adjusted EBITDA loss per order before HQ costs was >US$0.01, improving 95% YoY, with expectations that this would turn positive by year end. SeaMoney grew 214% YoY as a result of increasing synergies with Shopee, with Total Payment Volume (TPV) up 36% YoY. Quarterly Active Users (QAU) grew 53% YoY, with around 40% of buyers on Shopee using SeaMoney products. 

The Negatives

– Wider-than-expected net loss, due to higher expenses and goodwill impairment loss. SE’s net loss for 2Q22 grew 115% YoY, largely due to a doubling of R&D and G&A expenses YoY, and a US$177mn goodwill impairment loss due lower valuations of prior acquisitions. G&A expense jumped 96% YoY, mainly due to higher allowances for credit losses from SeaMoney which was driven by loans growth. R&D expense increased 115% YoY as a result of increasing headcount growth due to expansion of tech capabilities. Net loss for 1H22 was at 79% of our FY22e forecasts.

–  Shopee revenue guidance suspended for FY22e. SE suspended its Shopee revenue guidance for FY22e, with its original guidance in the range of US$8.5bn to US$9.1bn, stating increasing volatility, continuing macro uncertainties, and a strategic shift towards focusing on efficiency and optimization for the long-term as reasons for the suspension of guidance.

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• Airbnb’s revenue is expected to grow 38% YoY to US$8.3bn in FY22e from pent-up demand for travel and the acceleration of the shift to remote work. We expect the company to report a maiden net profit of US$1.4bn.
• We are modelling a 39% YoY rebound in Airbnb’s bookings volume to 417mn in FY22e, which is 28% ahead of FY19 levels. 1Q22 bookings spiked 59% YoY. Online travel peers Booking and Expedia are still working their way back to pre-pandemic levels. Airbnb’s outperformance is due to its status as the leading player in the short-term rental market, attracting and retaining a unique base of supply, and continued adoption of alternative accommodations.
• We initiate coverage with a BUY recommendation and DCF-based target price (WACC 6.8%) of US$119.

Company Background

Airbnb (ABNB) is the leading marketplace for people to list, discover and book private or shared alternative accommodation. Its platform connects guests and hosts online to book unique places to stay and for experiences. Airbnb offers 6mn active listings from over 4mn hosts across 220 countries.

Investment Merits

1. Surging volume of room nights and experiences. Airbnb is recovering faster from the pandemic-driven drop as travel restrictions continue to ease. In FY21, the company reported 301mn room nights and experiences booked, just 8% below the FY19 levels. Online peers Booking and Expedia are still 30% and 40% below pre-COVID levels in FY21. We expect the number of nights booked to accelerate in FY22e with Airbnb reaching an all-time high of 417mn nights and experiences booked, which is 28% ahead of pre-pandemic levels. Airbnb’s outperformance is mainly due to its status as the leading player in the short-term rental market, attracting and retaining a unique base of supply, and increased consumer spending on alternative accommodation.

2. Pent-up demand for travel is leading to rising prices or daily rates. In FY21, gross bookings value jumped 96% YoY to US$46.9bn, surpassing FY19 levels by 23%. This is driven by robust improvement in booking volume and higher average daily rates (ADR). Airbnb’s ADR grew 26% YoY to US$156 in FY21 due to price appreciation and business mix shift towards bookings in North America. We expect Airbnb’s revenue to increase 38% YoY to US$8.3bn in FY22e. The growth will be driven by urban and cross border travel, growth in longer-term stays, and broadening of desirable travel destinations.

3. Airbnb continues to innovate the platform. Airbnb has differentiated itself from the competition by continuously releasing product upgrades on the platform. In FY21, the company released more than 150 upgrades to its platform, including streamlined onboarding, flexible-date search tools for guests, AirCover, and dedicated SuperHost support for hosts (Ask a Superhost). We believe product innovation improves the overall user experience and higher retention of Airbnb guests and hosts. In FY21, Airbnb spend 24% of revenue on product development, largely outperforming its peers. Booking and Expedia’s spend on product development ranges from 4% to 12%.

We initiate coverage with a BUY rating. Our target price is US$119 based on a DCF valuation with a WACC of 6.8% and terminal growth of 4.0%.

REVENUE

Airbnb’s revenue mainly comes from nights and experiences booked on its platform. For stays, customers (hosts and guests) are charged service fees as a percentage of the booking value, excluding taxes. Service fees vary depending on factors such as booking value, duration of stay, host type, and geography. For experiences, service fees are levied on hosts only. Total revenue expanded at 24% CAGR in the past four years (Figure 1) to US$6.0bn in FY21. Over FY18-21, Airbnb’s nights and experiences booked rose at a CAGR of 13% to 300.6mn in FY21 (Figure 2). The growth was mainly driven by travel demand recovery and alternative accommodation market share gains.

GEOGRAPHIC MIX

Airbnb’s business is geographically diversified with nearly half of its revenue from outside the US. In FY21, North America accounted for 38% of nights and experiences booked (Figure 3), and 54% of gross bookings value (Figure 4) and total revenue (Figure 5). North America held up the best through the COVID-19 pandemic, with nights and experiences booked only falling 21% YoY in 2020 compared with EMEA and Latin America which fell above 50%.

EXPENSES

Cost of sales expanded at a 16% CAGR in the past four years, compared with operating expenses growth of 22%. Operating expenses include operations and support (14% of FY21 revenue); product development (24%); sales and marketing (20%); and general and administrative (14%) costs. Total operating expenses as a percentage of revenue have reduced modestly from 78% in FY17 to 74% in FY21. We expect operating expenses as a percentage of revenue to be 62% in FY22e due to increased efficiency and lower product development costs.

MARGINS

Gross margins hit an all-time high of 81% in FY21, up by over 600 basis points (bps) from FY20. This was mainly driven by Airbnb’s top-line recovery due to a surge in nights and experiences booked and a higher average daily rate (ADRs). In FY21, Airbnb’s ADR grew 26% YoY to US$156 due to price appreciation and a business mix shift towards bookings in North America.

Net margins remained negative for FY21 at -6% compared with -136% in FY20. This has been largely due to revenue recovery and a significantly improved cost structure. Product development expenses decreased by 48% YoY in FY21 to US$1.4bn. This was mainly due to a US$1.3bn decline in payroll-related expenses. We expect Airbnb to report a maiden net profit of US$1.4bn in FY22e. This translates to a 17% net profit margin.

BALANCE SHEET

Assets: In FY21, cash and cash equivalents increased by 11% YoY to US$6.1bn. Marketable securities also increased by US$1.3bn. Airbnb is an asset light business and doesn’t need to make heavy investments in fixed assets. In FY21, the company reported fixed assets of US$0.4bn. Airbnb’s current ratio for FY21 is 1.9x.

Liabilities: Current liabilities for FY21 were US$6.4bn, almost US$1.2bn more than FY20. This increase was mainly due to a rise in funds payable to customers. Non-current liabilities saw a jump of US$124mn in FY21. Airbnb had a net cash position of US$4.1bn in FY21 (Figure 6). Airbnb’s debt-to-equity ratio remains low at only 0.4x.

CASH-FLOW

Cash-flow from operations has steadily risen at 54% CAGR to US$2.2bn (Figure 7) from FY19 to FY21. Airbnb has almost insignificant CAPEX spending as the company doesn’t have to build or lease properties. In FY21, CAPEX stood at US$25mn. The company generated US$2.2bn in free cash flow in FY21. This translates to a 36% free cash flow margin.

BUSINESS MODEL

Airbnb generates revenue through service fees charged to guests and hosts. Airbnb service fees are applied to the booking subtotal (the rate per night plus cleaning fee and extra guest fee, if applicable, but excluding local occupancy taxes and Airbnb service fees). Host service fees are automatically deducted from the host payout. Airbnb offers two monetization models for accomodations and one for experiences (Figure 8).

• Split-fee on accomodations: Airbnb has a split-fee model for most accommodations hosts, in which hosts pay about 3% and guests pay less than 14.2%. This totals under 17.2% in take rate. These fees may vary depending on the duration of the stay, geography, and host type. Airbnb Plus hosts and those hosts with Super Strict cancellation policies may pay more.
• Host-only fee on accomodations: The host-only fee structure ranges from 14% to 16% and is mandatory for traditional hospitality listings like hotels and serviced apartments. It’s also mandatory for software-connected hosts (those who use a channel manager or property management system to connect their calendars to Airbnb), unless those hosts own the majority of their property listings in the US, Canada, Mexico, Bahamas, Taiwan, or Argentina.
• Experience fees: Airbnb Experiences are in-person or online activities led by local experts. An experience may be a local art lesson or an outdoor tour. Airbnb charges hosts a service fee of 20% for experiences. No fees are charged to guests for

As shown in Figure 9 above,  on a rental of US$100 per night set by the host, the guest pays US$116, which includes US$12 as guest fees and US$4 for taxes. Meanwhile, the host will make US$97 compared with the rate per night set at US$100 as Airbnb might collect US$3 hosting fee. Airbnb might make as much as US$15 (take rate of 13%), split between guest and host fees.

INDUSTRY

In 2020, the global tourism industry witnessed an unparalleled demand contraction, with March and April 2020 down 80% to 90% across all the travel industry segments and regions. This is mainly because countries worldwide implemented travel restrictions and other mandatory shutdowns to prevent the spread of the coronavirus. Since then, the travel demand recovery has been rocky and uneven due to fluctuations in COVID-19 case counts, lockdowns, and vaccination rates.

According to Statista, the global vacation rental industry’s total revenue is estimated to reach US$83bn in FY22, including US$18.6bn from the US. This hospitality segment is expected to rise at a CAGR of 6.3% between 2022 and 2026 to reach US$105.7bn, with 74% of that revenue generated through online sales. Additionally, the user penetration is expected to reach 11% by 2026 compared with 9% in 2022. The growth is mainly driven by significant pent-up demand to travel again.

Airbnb estimates its serviceable addressable market (SAM) to be US$1.5tn as of Dec. 2020, including US$1.2tn in short-term stays and US$239bn in experiences. Airbnb makes the following assumptions to determine the US$1.2tn for short-term stays (Figure 10):

• Euromonitor’s estimated 14.3bn overnight trips globally in 2019
• Airbnb estimates that 45% of the total trips are paid, resulting in 6.5bn paid overnight trips globally
• Airbnb further estimates that 6.5bn paid trips generate 11.8bn paid room nights
• The average daily rate (ADR) of US$105

11.8bn paid room nights at ADR of US$105 equals to US$1.2tn short-term rental SAM

• 1Q22 revenue was in line, at 22% our FY22e forecasts. PATMI underperformed, at 17% of our FY22e forecasts due to higher employee benefits expense and tax rate.
• Total revenue grew 27% YoY, above expected growth of 25%, driven by 25%/60% YoY increases in Omnichannel CX and Sales & Digital Marketing services. TDCX added 10 new clients for the quarter.
• FY22e revenue guidance was reduced by 5%, to S$650mn-675mn, on weaker macroeconomic outlook across all services and verticals.
• We reduce our FY22e revenue by 5% to S$665mn on slower growth, and cut PATMI by 33% to S$88mn on higher-than-expected equity share payment that led to higher Employee Benefits Expense. We maintain a BUY recommendation with a lowered DCF target price of US$15.76 (previous US$22.00), with a WACC of 9.7%, and a terminal growth rate of 3.0%.

The Positives

+ Higher-than-expected 1Q22 revenue growth compared to our estimates. TDCX’s YoY revenue growth of 27% was slightly higher than our estimate of about 25%. Sales & Digital Marketing was the main driver of growth – 60% YoY, and we expect this to continue for FY22e as more companies turn to outsourced specialised services like TDCX to maximize their marketing budgets. Revenue contribution from new economy clients remained at 93%, similar to 4Q21.

+ 10 new client additions for 1Q22, more than double 1Q21. TDCX added 10 new clients in 1Q22, including a leading global short-form video platform, and a leading Southeast Asian e-commerce platform. The company started its partnership with offices in Singapore and Barcelona for the short-form video platform, and offices in Malaysia for the e-commerce platform, serving both clients across its Omnichannel CX and Sales & Digital Marketing services segments.

The Negatives

– Decline in margins YoY due to increase in equity share payments included in employee benefits expense. Employee Benefits Expense jumped 39% YoY for 1Q22, increasing by 6% points to 68% of total revenue for the quarter. The main reason for this was an S$8mn equity share payment related to the company’s Performance Share Plan that was introduced in 4Q21. Removing this would result in a 28% YoY growth in Employee Benefits Expense, in line with revenue growth. This also led to contracting Operating Margins from 28% to 21% YoY.

– Reduced FY22e revenue guidance due to increasing macroeconomic uncertainty and weakness. TDCX revised its FY22e revenue guidance down by slightly more than 5%, to S$650mn-675mn, representing a 19% YoY increase taking the midpoint. The company cited a general weaker and uncertain macroeconomic environment, and slower-than-expected expansion of some of its clients as reasons for this revised guidance.

• 1Q22 earnings in line with expectations. 1Q22 revenue/PATMI at 21/22% of our FY21e forecasts. EPS beat consensus estimates of by 6% as a result of lower than expected total expenses.
• Positive user growth across all metrics for 1Q22, with Facebook DAU rebounding from negative QoQ growth in 4Q21.
• Continued negative impact on revenue from suspending operations in Russia, and from strengthening US dollar.
• We maintain a BUY recommendation with a DCF target price of US$312.00 (WACC 6.6%, g 3.5%).

The Positive

+ User growth across all metrics a positive sign. Meta recorded 3.64bn Family Monthly Active People (MAP) for 1Q22, increasing 6% YoY, and slightly over 1% QoQ. Specifically for its Facebook platform, Monthly Active Users (MAU) grew 1% QoQ and 3% YoY to 2.94bn, with Daily Active Users (DAU) rebounding from a negative QoQ growth in 4Q21 to a 2% QoQ growth. Overall, across platforms, growth was driven by the APAC region, with most other regions either flat or slightly contracting.

+ Earnings beat consensus estimates of US$2.56, with lower than expected total expenditure. Meta’s EPS of US$2.72 for the quarter beat consensus estimates of US$2.56, partially due to a lower than expected total expenditure for the quarter, indicating that the company’s slowdown in earnings was not as bad as analysts feared. Operating Income was US$8.5bn, with operating margins of 31%, compared with 43% in 1Q21. Meta also conducted share buybacks of US$9.4bn for the quarter.

The Negatives

– Continued revenue headwinds for 2Q22 due to strengthening USD, negative impact from Russia/Ukraine conflict, and Apple’s ATT* changes. Revenue headwinds continue in Russia, where its services are totally suspended. Also, the company estimates a 3% headwind to YoY growth in revenue for 2Q22 as a result of a strengthening US dollar. Apple’s ATT changes continue to pose a headwind for Meta, with its changes decreasing the effectiveness and the tracking capabilities of Meta’s targeted ads. The company said that overcoming these challenges using AI and machine learning will continue to be a long term challenge that it is focused on.

*App Tracking Transparency (ATT) – Changes by Apple during its iOS 14 update that allows users the ability to choose what kind of data, and to whom they wish to give their data to (privacy safeguard)

Outlook

Meta guided 2Q22 revenue to be in the range of US$28bn-30bn, a 1-7% QoQ increase compared with 1Q22, with this guidance reflecting revenue trends that are expected to continue. This guidance is also in line with our estimates. Taking the midpoint guidance of US$29bn (0% YoY growth), 1H22e revenue will work out to be around 43% of our FY22e revenue estimates.

Meta also lowered its FY22e guidance on total expenses from US$90bn-95bn, to US$87bn-92bn, but still expected the majority of expense growth to come from the Family of Apps segment, as it increases Data Centre capacity, and invests heavily in Artificial Intelligence to improve overall efficiency.

Regulatory legislation continues to be an overhang for the company, with Meta working together with the EU to finalize the wordings of the newly created EU Digital Markets Act, which was primarily created to be a “gatekeeper” for big tech companies, and prevent them from indulging in monopolistic practices.

Maintain BUY with an unchanged target price of US$312.00

We maintain a BUY rating with an unchanged target price of US$312.00, with a WACC of 6.6%, and a terminal growth rate of 3.5%.

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• The FAANGM declined 14.9% in April, worse than Nasdaq’s drop of 13.4%. S&P 500 was down 8.8%. NFLX continued to underperform, declining 49% in the month, largely due to a negative effect from a contracting user base. Meta, Apple, and Microsoft were the outperformers, declining 10%.
• 1Q22 earnings for the FAANGM stocks were largely in line with analyst consensus estimates, with slowing growth as the overall theme for the month, led by the overhang from the Russia/Ukraine conflict, a weaker macro environment, and a general de-rating of tech stocks.
• On the hardware side, short-term headwinds continue to cloud AAPL’s outlook, with Covid shutdowns and lingering semiconductor shortages affecting supply. Higher costs continue to affect AMZN’s margins, with decreasing productivity and overcapacity affecting efficiency. For software, we expect corporate demand for MSFT’s higher-end licenses to continue. And for the internet, we like the increasing popularity of YouTube Shorts as an additional revenue driver for GOOGL, as well as continued growth in Google Cloud.
• We remain OVERWEIGHT on FAANGM. Following the sell-off in tech stocks, FAANGM stocks are currently trading at attractive valuations, near their all-time lows. We believe that long-term secular tailwinds remain intact, and should overshadow current short-term headwinds in the market.

Review

Meta Platforms Inc (FB US, BUY, TP US$312)

• Testing new monetization tools for the metaverse. Meta has begun testing tools with a select group of creators which would allow them to sell virtual items in Horizon Worlds – a metaverse created by Meta and Verizon. Creators will be rewarded for building worlds that attract the highest amount of user time spent on them.
• Opening first retail store globally. Meta opened its first Meta Store on 9 May 2022 on its campus in California. The store is expected to give users a chance to physically test out various hardware products related to the metaverse – Portal video chat device, Quest 2 VR headset and Ray-Ban Stories smart sunglasses.

 Comment: Meta’s 1Q22 earnings were a mixed bag, with EPS beating estimates on lower- than-expected expenses, and user growth continuing. However, the outlook for 2Q22 remains weak with several headwinds from Apple’s ATT changes, a strengthening USD, and loss of advertising revenue from its ban in Russia expected to continue.

Apple Inc (AAPL US, BUY, TP US$214)

• China factory shutdowns. Covid-19 outbreaks have hit Shanghai and the neighbouring provinces of Jiangsu and Zhejiang over the last month—a region with one of the highest concentrations of Apple’s top suppliers. As Shanghai locked down and nearby regions imposed stringent Covid-prevention measures, many suppliers halted production, with some shutdowns lasting weeks. However, Apple is among the businesses taking precedence in local governments’ efforts to restart factories.
• Unionisation threat. Several Apple stores have shown interest in unionizing, according to organizers. Workers from a store in Atlanta last week filed for a union election with the National Labor Relations Board, the agency confirmed, and could soon approve a vote. Apple employees at a New York store are also aiming to file for an election. Some Apple organizers have said they seek higher pay, increased tuition reimbursement and larger 401(k) matches, among other goals.

Comment: Apple’s 2Q22 earnings were good, however, short-term headwinds cloud the outlook. 3Q22 revenue growth will be impacted by US$4bn-8bn due to COVID-19 shutdowns in China, which began in end-March 2022, and lingering semiconductor shortages affecting production and demand. This is substantially larger than in 2Q22.

Amazon Inc (AMZN US, BUY, TP US$3,130)

• Appeal against unionization. Amazon plans to appeal its loss last week to union organizers in New York, where workers voted to establish the company’s first US union. In a filing, Amazon signalled that it would appeal because of actions taken by the union, as well as the National Labor Relations Board, before and during the election. Amazon said in the filing that union organizers threatened employees into voting in favour of the union. It also blamed the NLRB, claiming it suppressed voter turnout by how it set up the voting periods, causing long wait times.
• Regulatory investigation by SEC. The Securities and Exchange Commission is investigating how Amazon has disclosed some details of its business practices, including how it uses third-party-seller data for its private-label business. There were claims that Amazon employees routinely used individual third-party-seller data to develop products for its own brands. Amazon had launched an internal investigation of its private-label division but has declined to provide a copy of its report to a congressional committee.

 Comment: 1Q22 results were weaker than expected due to lingering cost pressures. Revenue guidance was also weak. The priority now is to work down costs in overstaffing and overcapacity, while working to pass on some inflationary costs to sellers. Cost pressures could linger up to three quarters.

Netflix Inc (NFLX US, BUY, TP US$427)

• In talks with the NFL for a collaboration. NFLX and the National Football League (NFL) are in talks about collaborating on a docuseries type content production, similar to its other sport oriented programs “Formula 1: Drive to Survive” and “The Last Dance”. If successful, this could be a huge content addition to NFLX’s slate of already popular sporting content and could be a catalyst for increased subscriptions.

Comment: NFLX’s 1Q22 earnings call was quite poor, with only EPS beating consensus estimates. The stock price was driven down by slowing revenue growth, a quarter of negative paid net additions, and continued weak guidance for 2Q22.

Alphabet Inc (GOOGL US, BUY, TP US$3,493)

• Pledges US$9.5bn in US offices, data centres for the year. GOOGL unveiled its plans of investing US9.5bn into more US offices and data centres for FY22, an increase of US$2.5bn compared with FY21. This investment is expected to create at least 12,000 full-time jobs, with the focus on building new data centres in Nevada, Nebraska, and Virginia.

 Comment: GOOGL’s pledge to invest more into offices and data centres is nothing new, and is in line with its expansion of Cloud capabilities. Its 1Q22 earnings met expectations on the topline, but missed heavily on earnings, led by an almost US$6bn swing in unrealized loss of its equity investments. Revenue growth is back to pre-pandemic levels, with growth drivers Cloud and YouTube continuing to increase at a rapid pace.

Microsoft Corp (MSFT US, BUY, TP US$410)

Comment: 3Q22 was another strong quarter with revenue and margin beats across virtually all segments. And 4Q22 was guided to be another strong quarter. Reopening of the economy will drive Office Commercial user growth from small and medium sized businesses, while cybersecurity needs will drive ARPU growth through upgrades to premium E5 licenses. Azure will continue to benefit from businesses’ shift to the cloud.

 Recommendation

We remain OVERWEIGHT on the FAANGM. Our preferred picks are still GOOGL and MSFT. We expect GOOGL to continue benefitting from digital advertising tailwinds, as well as increasing corporate demand for its high-margin Cloud services. For MSFT, we are bullish on the strong corporate demand for its higher-end licenses, amidst increasing cybersecurity worries.

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Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
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• 1Q22 revenue was in line at 21% of FY22e forecast, while adjusted PATMI came in at a mere 15%, excluding a pre-tax valuation loss of US$7.6bn from Rivian Automotive.
• US$6bn incremental cost from external factors: transport rates, higher fuel prices, wage inflation, and internal factors: productivity and overcapacity hurt margins. Internal factors (2/3) may ease next quarter while the external (1/3) will linger.
• Guidance was weaker than expected for both revenue and margins. The focus for the next few quarters will be to work down internal costs and pass on some external costs to sellers. This may take up to three quarters. Our FY22e revenue and adjusted PATMI are cut by 3% and 15% respectively. Maintain BUY with a lower target price of US$3,130.00 based on DCF with a WACC of 6.2% and terminal growth of 5.0%.

Results at a glance

Source: Company, PSR

The Positive

+ Amazon Web Services (AWS) beat estimates. Amazon’s cloud business grew 37% YoY to US$18.4bn revenue, beating our estimate of 35% growth. Demand continued across the board from governments and not-for-profits to start-ups and enterprises. AWS expanded 16 local zones in the US, with 32 more to come across 26 countries.

The Negatives

– Higher costs hurt margins. Operating margin was 3.2%, significantly lower than an estimated 4.6% and at 3-year lows. External factors added US$2bn incremental costs: transport rates are 2x higher; fuel prices up 1.5x and wages are rising. Internal factors are productivity and overcapacity. Reduced productivity added US$2bn costs: Amazon is overstaffed after excess hiring during the COVID-19 Omicron wave which required sick leave replacements. Excess capacity in fulfilment added US$2bn costs in reduced fixed cost leverage: After expanding fulfilment services during the pandemic, consumer demand patterns have stabilized, while fixed costs from fulfilment remain elevated. Of the total US$6bn incremental costs incurred, US$4bn from productivity and overcapacity may ease in the next few quarters.

– Advertising growth was slower than expected. Ad revenue grew 23% YoY to US$7.9bn vs an estimate of 26%. We believe moderating e-commerce growth as the economy reopens and supply chain shortages impacting seller inventories was to blame. The advertising segment, along with AWS, is a key driver of operating income, estimated to have contributed US$7.1bn to 1Q22 operating income of US$3.7bn.

Outlook

Revenue guidance was weak, up to 8% lower than estimated, while the operating margin was up to 5% lower. The focus is to work down internal costs factors in productivity and overcapacity, while passing on some external costs to sellers through the 5% fuel and inflation surcharge announced on 14 April 2022. These will take time, perhaps up to three quarters. Staff numbers were worked down from a peak of 1.7mn to 1.6mn during the quarter, while Amazon’s annual Prime Day in July 2022, where demand usually surges, will help utilise fulfilment overcapacity.

Figure 1: 2Q22 guidance was weaker than consensus estimates

Source: Company, PSR

Maintain BUY with lower TP of US$3,130.00 (prev. US$4,079.00)

Our FY22e revenue and adjusted PATMI are cut by 3% and 15% respectively. Maintain BUY with a lower target price of US$3,130.00 based on DCF with a WACC of 6.2% and terminal growth of 5.0%. Secular growth drivers of AWS and advertising are intact, but Amazon is facing medium-term headwinds from normalising e-commerce growth, lingering inflationary costs and fulfilment overcapacity after the COVID-19 pandemic demand spike.

• 9M22 revenue was in line at 74% of FY22e forecasts, while PATMI outperformed at 79%.
• Virtually all segments beat on margins driven by higher volumes and prices for MS Office 365 licenses, and unabated corporate adoption of cloud services.
• Our FY22e PATMI is raised by 3.5% on stronger revenue guidance and a lower tax rate. We maintain BUY with an unchanged target price of US$410.00. Valuations are based on DCF with a WACC of 6.2% and terminal growth of 4.0%. MSFT enjoys tailwinds from businesses reopening, cybersecurity and cloud computing secular trends.

Results at a glance

Source: Company, PSR. *Note – Azure revenue amount is not disclosed.

The Positives

+ All segments beat revenue estimates. In Productivity and Business Processes, commercial Office 365 and LinkedIn performed better-than-expected. Paid Office 365 Commercial users grew 16% to 345mn, exceeding our FY22e end target of 341mn, due to demand from small and medium business and frontline worker offerings. More Personal Computing benefited from continued strength for Microsoft 365 and commercial PCs, as well as a surge in search advertising on LinkedIn, up 33%, from a sharp demand uptick that started three quarters ago as the economy reopened amid a tight labour market. In Intelligent Cloud, Azure grew 49% YoY vs estimates of 47%, with continued consumption of cloud services.

+ Another quarter of margin beats. 3Q22 operating margins from Productivity and Business Processes, Intelligent Cloud and More Personal Computing were 46%, 44% and 34%, all higher than estimates of 44%, 40% and 33% respectively. ARPU was higher from continued momentum for Microsoft’s higher-end E5 licenses. Azure cloud services margins continued to improve. The faster growing higher margin LinkedIn services that reached a record high of 13% of total revenue this quarter also helped to boost margins.

The Negatives

– Revenue impact from stronger USD. FX decreased revenue growth by 3%, 1% more than expected. The stronger USD is guided to decrease revenue by 2% in 4Q22 while decreasing COGS and operating expenses by 1%, a net negative to operating margins.

Outlook

4Q22 was guided to be another strong quarter. Reopening of the economy will drive Office Commercial user growth from small and medium sized businesses, while cybersecurity needs will drive ARPU growth through upgrades to premium E5 licenses. Azure will continue to benefit from businesses’ shift to the cloud. MSFT stated that large (>US$100mn) long-term contracts for Azure saw better-than-expected growth even against a very strong prior-year comparable. Customers are not looking at cutting IT budgets despite slowing economic growth.

Maintain BUY and unchanged TP of US$410.00

Our valuation remains unchanged based on DCF with a WACC of 6.2% and terminal growth of 4.0%. Our FY22e PATMI is raised by 3.5% on stronger revenue guidance and a lower tax rate. Microsoft is at the forefront of digitalisation, benefiting from secular growth in cloud computing, cybersecurity and artificial intelligence. Microsoft’s productivity software is also crucial and the most economically viable solution amid the tight US labour market.

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Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment.
To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold an interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this report. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, which is not reflected in this report, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this report.
The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.
This report is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this report may not be suitable for all investors and a person receiving or reading this report should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

• 1Q22 results in line with our expectations. 1Q22 revenue/PATMI at 24/29% of our FY22e forecasts.
• Weak guidance of a decline of 2mn paid subscriptions in 2Q22. We believe higher subscription prices, and a weaker overall macroeconomic environment, will continue to increase churn and affect NFLX’s ability to add new subscribers.
• We reduce our FY22e revenue/PATMI forecast by 2%, due to a weaker overall growth outlook, with a lowered DCF target price (increased WACC of 11.5%, and lowered g to 1%) of US$427.00. We believe that revenue generated from raising subscription prices, and increasing monetization on its platform via password sharing add-ons and lower-end ad plans should still be able to drive top and bottom line growth, even as subscriber growth wanes.

The Positives

+ EPS beat company guidance by 23%. NFLX reported EPS of US$3.53, handily beating its own guidance of US$2.86 by 23%. The main reason for this were the effects of subscription price increases in several parts of the world that boosted net margins to 20.3%, compared to guidance of around 17%.

The Negatives

– Slowing revenue growth. NFLX recorded revenue of US$7.87bn in 1Q22, slightly below its expectations of US$7.9bn, representing a 2%/10% QoQ/YoY growth respectively. YoY growth has been declining steadily each quarter, with NFLX pointing to: 1) relatively high household penetration rates; 2) large number of shared accounts amongst multiple households; 3) increased competition, as headwinds for revenue growth.

– Negative paid net additions for 1Q22. NFLX recorded negative paid net additions for 1Q22, and this is the first time the company has lost subscribers for a quarter in almost 10 years. The company mentioned macroeconomic factors like slowing economic growth, increasing inflation, the Russia/Ukraine conflict, and increased competition as reasons for the negative paid net additions. NFLX lost 0.7mn subscribers from Russia as it suspended services due to the ongoing conflict. APAC was the only region with positive paid net additions of 1.0mn.

– Weak guidance for membership growth in 2Q22. NFLX guided to a 2.0mn loss in paid net additions for the 2Q22, citing slowing acquisition, a negative short term impact due to price increases, and typical seasonality weakness of 2Q compared to 1Q, as reasons for the guidance. However, the company still expects additional revenue generated from recent price increases to offset revenue loss from membership contraction, and guided to a YoY revenue growth rate of around 10% for 2Q22.

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Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
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This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

Alphabet Inc (US: GOOGL) Despite a stop-out on 10^th January 2022 based on our report dated 3^rd December 2021, technicals indicate that the bullish upside is set to return:

1. The brief break below support zone 1 is considered a bear trap after the bullish engulfing candle was seen closing within the boundary of support zone 1.
2. The bullish engulfing candle was also seen supported by the 78.6% Fibonacci retracement level of US$2623.54-US$3021.87.
3. RSI is showing oversold signal.
4. However, Ichimoku is still showing a downtrend and hence upside must clear above US$2810.00 resistance to confirm the upside.

*Expected timeline of the trade is 20 weeks from the date of report issuance.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line

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Disclaimer
Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment.
To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold an interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this report. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, which is not reflected in this report, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this report.
The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.
This report is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this report may not be suitable for all investors and a person receiving or reading this report should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

Amazon.com Inc (US: AMZN) Technical price action indicates a potential return despite a consolidative period for a year:

1. The larger ascending triangle formation is indicative of a bullish continuation pattern ahead.
2. The tweezer bottom and harami pattern have rebounded at our key support zone. Furthermore, the candles are seen rebounding from Senkou-Span A and B’s kumo.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line

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Disclaimer
Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment.
To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold an interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this report. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, which is not reflected in this report, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this report.
The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.
This report is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this report may not be suitable for all investors and a person receiving or reading this report should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

Netflix Inc (US: NFLX) Technical price action indicates a potential return after the fulfilment of the double top formation in mid-November 2021:

1. The bullish harami pattern was seen within the immediate support zone at US$601.29-US$616.74. Furthermore, the harami pattern is seen rebounding at the 161.8% extension of the previous double top formation, indicating a possible strong reversal ahead.
2. RSI indicates a rally after dipping into the oversold region. Should it successfully cross above 40, the bullish upside will be confirmed.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*Price remains in a downtrend as displayed by Ichimoku. Also, neckline resistance at US$642.11 must be broken to further confirm the upside.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line

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Disclaimer
Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment.
To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold an interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this report. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, which is not reflected in this report, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this report.
The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.
This report is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this report may not be suitable for all investors and a person receiving or reading this report should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

Alphabet Inc (US: GOOGL) Technical price action indicates a potential return after the price met its initial target requirement of 161.8% of the previous double top extension level at 161.8%:

1. The bullish harami pattern is seen as a key sign of a potential bullish reversal. Also, the lower shadow of the harami pattern is seen rebounding from 161.8% of the double top’s extension level and the immediate support zone at US$2762-US$2801 region.
2. Despite a potential bearish crossover of the Tenkan and Kijun-Sen, the Senkou-span A is sloping up, indicating a bullish return.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*Should the price fail to rise above the US$2866 immediate resistance, there is a chance that the price may revert lower to the US$2616 region before a rebound.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line

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Disclaimer
Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment.
To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold an interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this report. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, which is not reflected in this report, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this report.
The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.
This report is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this report may not be suitable for all investors and a person receiving or reading this report should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

Merck & Co (US: MRK) Technical price action shows a bullish rebound despite a break below the diamond top pattern:

1. The bullish hammer is seen supporting the US$75.86-US$76.93 support zone 1. Also, the rebound above 200-MA is seen as a clear signal for a strong rebound ahead.
2. The bullish hammer closing price was above the 61.8% Fibonacci retracement level of US$70.88-US$91.40.
3. Fulfilment of the gap above US$80.00 will confirm last Friday’s gap down as a bullish exhaustion gap, indicating stronger confirmation of the upside.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

CHART LEGEND

Moving Average

Red line = 200 periods MA

Blue line = 50 Periods MA

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Disclaimer
Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment.
To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold an interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this report. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, which is not reflected in this report, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this report.
The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.
This report is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this report may not be suitable for all investors and a person receiving or reading this report should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

Amplify Online Retail ETF (US: IBUY) The corrective downtrend is coming to an end  as the technicals show strong bullish action.

1. The corrective double three-wave ((W)), ((X)), ((Y)) wave has been completed. With the descending channel/bullish flag from the start of February to November in place, the probability of the price breaking to a new high in the long term is high.
2. The bullish piercing line candle is seen rebounding from the 161.8% extension level of the sub-corrective wave (A) and (B) wave. Furthermore, 161.8% confluences with the key support zone.
3. The RSI is showing an oversold signal, and should it break above the 40 line, it will signify a strong bullish upside.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Blackline = 26 periods Chikou Span. Lagging line

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Click here to open a POEMS trading account

Disclaimer
Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment.
To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold an interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this report. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, which is not reflected in this report, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this report.
The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.
This report is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this report may not be suitable for all investors and a person receiving or reading this report should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

Shopify Inc (US: SHOP) The upside has resumed well and the technicals indicate that there’s a further upside:

1. The 3 “N” wave indicates a strong bullish upside ahead.
2. The price found some relief support after Wednesday’s bullish engulfing candle was spotted. To add on, the engulfing candle was seen supported by the Kijun-Sen.
3. Despite the price failing to go above the Tenkan-Sen, the momentum of the up move was strong and there exists a high probability of this happening. . Furthermore, the Senkou-Span A has been sloping up, a key indicator ofstrong bullish price action.
4. The rising on-balanced volume is confirming the bullish uptrend.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Blackline = 26 periods Chikou Span. Lagging line

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Disclaimer
Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment.
To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold an interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this report. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, which is not reflected in this report, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this report.
The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.
This report is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this report may not be suitable for all investors and a person receiving or reading this report should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

Dell Technologies Inc (US: Dell) uptrend has been strong since March 2020 and the technicals indicate a further bullish continuation:

1. The pennant formation is indicative of a strong bullish continuation.
2. The resistance level at US$57.54, which is also the 161.8% Fibonacci expansion level of wave (1)-(3), has been tested multiple times and has therefore been weakenedin the process.
3. The morning star formation has closed above both the Tenkan-Sen and Kijun-Sen.
4. The on-balanced volume uptick confirms the bullish uptrend of Dell.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Blackline = 26 periods Chikou Span. Lagging line

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Disclaimer
Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment.
To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold an interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this report. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, which is not reflected in this report, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this report.
The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.
This report is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this report may not be suitable for all investors and a person receiving or reading this report should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

Oracle Corp (US: ORCL) upside has fresh technical signals. So, we are maintaining our outlook based on our recent report dated 17^th November 2021 :

1. The formation of the larger bullish flag is likely confirmed after the price was well supported, indicating a bullish continuation signal.
2. The piercing line candle formation has successfully rebounded at the immediate support at US$91.08-US$92.32.
3. The Ichimoku wave analysis indicates that there will be one more “N” wave coming along for the next possible 26 periods of upside starting from today.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Blackline = 26 periods Chikou Span. Lagging line

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Click here to open a POEMS trading account

Disclaimer
Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment.
To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold an interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this report. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, which is not reflected in this report, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this report.
The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.
This report is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this report may not be suitable for all investors and a person receiving or reading this report should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

United Parcel Service (US: UPS) Upside was confirmed on 26^th October 2021 after a strong bullish measuring gap above the expanded falling wedge’s upper sloping resistance. Further technicals indicate that the bull run is set to continue:

1. Since completing the triple three corrective wave and the expanded falling wedge, UPS has embarked on the next sub-bullish impulse wave. Currently, wave 4 of the sub-minor phase is complete after the bullish candle was seen rebounding from the support zone at US$205.50-US$207.50.
2. The falling wedge formation is a potential bullish continuation pattern.
3. The Ichimoku signal indicates a relative upside as the Senkou-Span A  is seen sloping up and the candles are well-supported by the 26 periods Kijun-Sen.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*Price needs to  be above the Tenkan-Sen which is around the US$211.00 region to further boost the bullish upside confirmation.   

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line

Click here to learn more about trading stocks in the US

Click here to open a POEMS trading account

Disclaimer
Important Information: This report is prepared and/or distributed by Phillip Securities Research Pte Ltd (“Phillip Securities Research”), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
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IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

SPDR Dow Jones ETF (US: DIA) upside is facing some slight correction based on the wave analysis. Technical is indicating a potential upside:

1. Sub-wave analysis indicates that wave (5) of the intermediate phase is yet to complete. Wave (4) is tentatively completed after a bullish flag formation was spotted.
2. Bullish hammer is spotted above key immediate support zone at US$355.00-US$356.60. To add on, the hammer closing price managed to close above US$358.93 level.
3. Volume is seen picking up on Thursday after breaking above the 20-period MA.
4. Ichimoku’s Kumo is seen widening, especially Senkou-Span A is seen rising. A key indication of bullish upside.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*Should prices fail to sustain closure above US$358.93, there may be a double three corrective wave and should this happen, wave (4) will likely extend into US$355-US$352.00 support level.  

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The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
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If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

Visa Inc (US: V) downtrend has been ongoing after it broke off the larger rising wedge which starts from 27^th March 2020 to 26^th July 2021. Despite the ongoing downtrend, Visa’s technical indicate that there is a short term rebound to test the higher gap resistance zone at US$225.26-US$231.12:

1. Visa strong gap below on Wednesday was well supported after a hammer was seen rebounding at support zone 1 at US$200.47-US$204.36. To add on, the support zone 1 lower boundary is 161.8% extension level of the previous head and shoulder formation.
2. The hammer was also seen rebounding from 1:1 ratio of the Fibonacci expansion level at US$199.17 as well as the lower boundary of the Bollinger band.
3. Should RSI have a uptick when the market open for trading, there will be a potential bullish divergence.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*The downside trend remains and judging from the price structure, there will be one more inverse N wave down and likely support zone 2 will be the main rebound zone.

CHART LEGEND

Bollinger Band

Red dotted line = Upper Bollinger band

Blue dotted line = 20 Periods MA

Green dotted line = Lower Bollinger band

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If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.

Oracle Corp (US: ORCL)

1. The formation of the falling wedge has been successfully broken out, indicating a bullish continuation signal.
2. The morning star formation has successfully rebounded at the 50% Fibonacci retracement level and above the immediate support at US$91.08-US$92.32. Also, the last bullish candle of the morning star pattern has successfully close above the 9-period Tenkan-Sen.
3. Ichimoku wave analysis indicate that there will be one more “N” wave coming along for the next possible 26 periods of upside.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*The downside is that prices reject the Kijun-sen and US$96.93 resistance level remains crucial. Should it fail to, the bullish call on this report will be invalidated.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Blackline = 26 periods Chikou Span. Lagging line

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The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgement. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
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Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
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IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES Where the report contains research analyses or reports from a foreign research house, please note: (i) recipients of the analyses or reports are to contact Phillip Securities Research (and not the relevant foreign research house) in Singapore at 250 North Bridge Road, #06-00 Raffles City Tower, Singapore 179101, telephone number +65 6533 6001, in respect of any matters arising from, or in connection with, the analyses or reports; and (ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an accredited investor, expert investor or institutional investor, Phillip Securities Research accepts legal responsibility for the contents of the analyses or reports.

If Distribution is to Australian Investors This report is produced by Phillip Securities Pte Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services License No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Past performance is not a reliable indicator of future performance. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.