ab 11 August 2024 Global Research and Evidence Lab US Economics Presentation Slowdown underway Economics Americas Jonathan Pingle Economist jonathan.pingle@ubs.com +1-212-713 2225 Pierre Lafourcade Economist pierre.lafourcade@ubs.com +1-212-713 4543 Alan Detmeister Economist alan.detmeister@ubs.com +1-212-713 1222 Abigail Watt Economist abigail.watt@ubs.com +44-20-7567 1062 Amanda Wilcox Economist amanda.wilcox@ubs.com +1-212-713-2000 This report has been prepared by UBS Securities LLC. ANALYST CERTIFICATIO ...

Investment Rating - The report assigns a 12-month rating of "Buy" for Centre Testing International (CTI) with a price target of Rmb16.60, while the current price is Rmb11.60 [5][17]. Core Insights - Centre Testing International reported a revenue increase of 9% year-over-year (YoY) to Rmb2.79 billion and a recurring net profit (NP) increase of 5% YoY to Rmb0.4 billion in H124, aligning with market expectations [2][4]. - The gross profit margin (GPM) improved by 1.6 percentage points YoY to 52.7% in Q224, attributed to a low base in Q124 and improvements in specific segments [2][3]. - The life science segment contributed 45% to H1 revenue, growing 22% YoY, driven by the third soil census, while the industrial product testing segment grew 14% YoY, contributing 20% to H1 revenue [3]. - The company did not provide new guidance, and investor reaction is expected to be neutral [4]. Financial Performance - H1 revenue contributions by segment include: - Life Science: 45% with a 22% YoY increase - Industrial Product Testing: 20% with a 14% YoY increase - Trade Assurance: 13% with a 9% YoY increase - Consumer Goods Testing: 17% with a 4% YoY decline - Pharma and Clinical Services: 5% with a 34% YoY decline [3]. - Forecasted revenues are projected to grow from Rmb5.571 billion in 2023 to Rmb6.319 billion in 2024, with net earnings expected to rise from Rmb787 million in 2023 to Rmb908 million in 2024 [6]. Valuation Metrics - The report indicates a forecast price appreciation of 43.1% and a forecast dividend yield of 0.9%, leading to a total forecast stock return of 44.0% [7]. - The company's market capitalization is Rmb19.5 billion (approximately US$2.72 billion) with an average daily trading volume of 16,783,000 shares [5][6]. Company Overview - Established in 2003 and headquartered in Shenzhen, China, Centre Testing International is a leader in third-party testing, inspection, and certification (TIC) services, operating over 150 labs in more than 90 cities worldwide [8].

First Read Carsales.com.au UBS SnapShot: 2H24 Result ONE LINER Execution continues. Outlook for FY25e looks good and in line 2H24 KEY NUMBERS Rev $568m (UBSe $565m, cons $568m); Adj EBITDA $304m (UBSe: $304m, cons $306m); Rep NPAT $133m (UBSe $138m, cons $160m), Capex $52m (UBSe $48m, cons $52m), DPS 38.5cps (UBSe 37c, cons 38c). 2H24 RESULT HIGHLIGHTS 1. Dealer revs +12% to $122m (UBSe $120m, cons $120m); Private +9% to $50m (UBSe $50m, cons $50m); Media +19% to $39m (UBSe $39m, cons $37m); 2. Domestic cor ...

ab 12 August 2024 Global Research and Evidence Lab New Zealand Electric Utilities APAC Focus: Higher prices are here to stay Our detailed analysis of future supply and demand suggests a capacity shortfall particularly during peak periods. This sees higher marginal cost suppliers setting higher prices longer term. We forecast electricity prices in 2030 to be +40% above our previous forecasts, with an even more pronounced step up during peak periods. We believe MEL is best positioned to capitalise on this the ...

ab 12 August 2024 Global Research and Evidence Lab Daily Commodities Note Iron ore US$99/t and base metals climb Equities Global Basic Materials Prices: Iron Ore 62% cfr Qingdao 0.0% $99/dmt; HCC prem LV 0.0% $215/t; Thermal Coal NEWC +0.3% $146/t; Spodumene CIF China 0.0% $850/t; Li Carbonate Battery Grade, CIF China 0.0% $12000/t; Li Hydroxide Battery Grade, CIF China 0.0% $11500/ t; Cu +0.9% $3.97/lb; Al +1.3% $1.02/lb; Ni +0.1% $7.21/lb; Au +0.4% $2473/oz; Brent +0.6% $80/bbl; WTI +0.9% $77/bbl; AUDUSD ...

ab 12 August 2024 Global Research and Evidence Lab Greater China Banks Daily Report on small bank risk; NFRA: banks' Q2 net profit growth flat YoY Equities China Banks "Disappearance" of small banks unlikely to cause negative systemic impact According to multiple local media reports, since beginning of this year, more than 80 small banks, mostly rural banks, "disappeared", causing concerns for some investors. For instance, 36 rural banks in Liaoning Province have been approved to merge into Liaoning Rural C ...

ab 12 August 2024 Global Research and Evidence Lab India Financials 1Q NBFC wrap: Growth slowed, asset quality deteriorated Overall credit cost increased by 35bp QoQ to 1% of AUM Our analysis of 1Q results of 17 NBFCs (Rs25trn in AUM) that have reported so far indicates deceleration in loan and disbursement growth, sharp increase in credit cost and stable cost of funds. Aggregate AUM growth slowed to 17% YoY vs 19% in 4Q – most pronounced in unsecured segments such as Microfinance (MFI) - 24% YoY vs 29% in ...

abc 12 August 2024 Global Research and Evidence Lab First Read Focus Media Information Technology 2Q24 results beat with half-year dividend payout; expecting further sequential improvement from 3Q 2Q results beat on revenue and net profit Despite slow macro recovery, Focus Media (FM) continued to outperform within brand ad space. 2Q24 revenue grew 10/19% YoY/QoQ to Rmb3.24bn, beating UBS-Se/Visible Alpha consensus by 6/5%. The better topline growth and COGS savings was partially offset by higher OPEX. Net, ...

Investment Rating - The report maintains a constructive outlook on value and large-cap styles, indicating a limited downside risk for the A-share market [5][28]. Core Insights - Active mutual funds (MFs) have experienced significant redemptions, with a decrease of 136.7 billion units in Q124, marking the largest quarterly fall in the past decade, while passive funds saw an increase of 207.7 billion units in H124 [2][9][12]. - The A-share market has faced a downturn, with the Wind All A-share Index and CSI 300 Index down 31% and 33% respectively since early 2022, leading to a correction of 36% and 28% in equity/hybrid MFs [8][9]. - The report suggests that the resumption of active MF purchases may be driven by factors such as a rising stock market, declining mortgage rates, and improved long-term shareholder returns [4][28]. Summary by Sections Mutual Fund Dynamics - Active funds are under redemption pressure due to poor performance, with significant unit and AUM decreases in Q124 and Q224 [9][10]. - Passive funds have outperformed active funds, with a notable AUM increase of Rmb311.3 billion in Q124, primarily driven by investor interest in large-cap blue-chip ETFs [12][15]. Investor Behavior - Post-redemption, investors are likely reallocating funds towards low-risk options such as paying off mortgages, increasing savings, or investing in money market and bond funds [3][18][22]. - Households are building precautionary savings, with excess savings estimated to exceed Rmb6 trillion by the end of Q224 [22]. Market Outlook - The report anticipates that value stocks will outperform growth stocks in H224 due to a lack of new capital in the A-share market [5][28]. - There is a tactical inclination towards sectors with solid earnings growth, such as electronics, utilities, energy, and telecom, while caution is advised for sectors facing slowing export demand [5][28].

ab 11 August 2024 Global Research and Evidence Lab Vietnam Property Expert call: In a recovery wave A tale of two cities: Recovery in progress, supply tight We hosted Ms. Dung Duong, CBRE Vietnam's Head of Research, Valuation and Consulting for an update on the residential sector. The recovery is broadly tracking our expectations. It is a tale of two cities as H124 supply in Hanoi sees 10.8k units launched, while HCMC trailed at 1.7k hampered by approval bottlenecks. Duong shared there are still ~250 delaye ...