Morgan Stanley-Three in Three Three Actionable Ideas--此為英文文檔

1

AsofAugust8

AbsoluteRelative*

No.ofideas

CumulativeOutperformance(bps)

Avgholdingperiodtotalreturn

Avg12Mtotalreturn**

No.ofpositivereturns

Hitratio

3.0%-6.0%

569

57%

1086

6,585

1.8%

-0.9%

994

550

55%

Source:MorganStanleyResearch,DataStreamRefinitiv,Bloomberg.PerformancedataasatAug8,2023.Cumulativeoutperformance:againstlocalbenchmarks.Holdingperiodtotalreturnmeasuresperformancewhenideawaseffective.**Avg12MtotalreturnmeasuresperformanceofeachideafromAug8,2022,toAug8,2023,anddoesnotadjustforbuy/selldirection.*Relativeperformance=ideaoutperformanceagainstlocalbenchmarks.Hitratio=numberofideaswithpositivereturnsaspercentageofthetotalnumberofideas.Performancecalculationdoesnotconsidertransactioncostsorothercosts.Figuresarenotaudited.Pastperformanceisnotaguaranteeoffutureresults.

August13,202310:00PMGMT

ThreeinThree|AsiaPacific

ThreeActionableIdeas

T–OW|PBFintech–OW|37InteractiveEntertainment–OW

OW–T(TCOM.O):ExpectsteepestupwardEPSrevisionYTDdrivenbysummerholidays,progressivesharegains,highermixofoutboundtravelandlimitedmacrorisks.

OW–PBFintech(PBFI.NS):Strongfranchise,largeTAMandanelegantbusinessmodeldrivingrevenue;expectgradualbuthealthyupside.

OW–37InteractiveEntertainment(002555.SZ):Expectrevenueandnetprofitinflectionduetorichgamepipeline;potentialre-ratingspurredbypositivethemesaroundAI.

Linkstoreports:

TGroupLtd:SummerRevengeTravel(7Aug2023)

PBFintech:RaisingestimatesandPTafterastrongcore1QF24–OW(10Aug2023)

ChinaOnlineGaming:2Q23Preview:ShiftFocustoFundamentals(8Aug2023)

Exhibit1:Performancesummary

MORGANSTANLEYASIALIMITED+

SamuelLee,CFA

EQUITYSTRATEGIST

+8522239-1862

+8522239-7831

+8522848-6595

Samuel.Sw.Lee@

BrianKelleher

EQUITYSTRATEGIST

Brian.Kelleher@

HozefaTopiwalla

EQUITYSTRATEGIST

Hozefa.Topiwalla@

LatestclosingpricesasofAugust11,2023:

T(TCOM.O):US$40.52;PBFintech

(PBFI.NS):Rs727.45;37InteractiveEntertainment

(002555.SZ):Rmb26.19.

MorganStanleydoesandseekstodobusinesswith

companiescoveredinMorganStanleyResearch.Asa

result,investorsshouldbeawarethatthefirmmayhavea

conflictofinterestthatcouldaffecttheobjectivityof

MorganStanleyResearch.Investorsshouldconsider

MorganStanleyResearchasonlyasinglefactorinmaking

theirinvestmentdecision.

Foranalystcertificationandotherimportantdisclosures,

refertotheDisclosureSection,locatedattheendofthis

report.

+=Analystsemployedbynon-U.S.affiliatesarenot

registeredwithFINRA,maynotbeassociatedpersonsof

thememberandmaynotbesubjecttoFINRArestrictions

oncommunicationswithasubjectcompany,public

appearancesandtradingsecuritiesheldbyaresearch

analystaccount.

2

ThreeActionableIdeas

Exhibit2:Cumulativeoutperformance

'ThreeinThree'CumulativeOutperformance

185.0

175.0

165.0

155.0

145.0

135.0

125.0

115.0

105.0

95.0A-16A-16D-16A-17A-17D-17A-18A-18D-18A-19A-19D-19A-20A-20D-20A-21A-21D-21A-22A-22D-22A-23

Source:MorganStanleyResearch,Datastream,Refinitiv,Bloomberg.Theperformancecalculationdoesnotconsidertransactioncostsorothercosts.Thesefiguresarenotaudited.Pastperformanceisnotaguaranteeoffutureresults.

Exhibit3:Weeklyhitratio

100%'ThreeinThree'WeeklyHitRatio

90%

80%

70%

60%

50%

40%

30%

20%10%

0%

M-16S-16J-17M-17S-17J-18M-18S-18J-19M-19S-19J-20M-20S-20J-21M-21S-21J-22M-22S-22J-23M-23

Source:MorganStanleyResearch,Datastream,Refinitiv,Bloomberg.Theperformancecalculationdoesnotconsidertransactioncostsorothercosts.Thesefiguresarenotaudited.Pastperformanceisnotaguaranteeoffutureresults.ThehitratioasofanyparticularTuesdaydoesnotaccountforideasstartedonthesamedayforwhichholdingperiodwas0days.

ThreeActionableIdeasarenotandshouldnotbeconsideredaportfolio.Eachinvestmentideaischosenbasedonitsownmeritandwithoutanyconsiderationoftheotherinvestmentideaschosen.Specifically,therehasbeennoefforttomitigatetherisksofinvestinginanycollectivegroupof"ThreeActionableIdeas".Conceptsimportanttoabalancedportfolio,suchasnegativecorrelationanddiversification,havenotbeenconsidered.Treating"ThreeActionableIdeas"ideasasaportfoliowillsubjectyoutotheriskoflosingallorasubstantialportionofyourinvestments.

Theinformationcontainedhereinhasbeenpreparedsolelyforinformationalpurposesandisnotasolicitationofanyoffertobuyorsellanysecurityorotherfinancialinstrumentortoparticipateinanytradingstrategy.Productsandtradesofthistypemaynotbeappropriateforeveryinvestor.Pleaseconsultwithyourlegalandtaxadvisorsbeforemakinganyinvestmentdecision.PleasecontactyourMorganStanleysalesrepresentativeformoredetails.

3

Exhibit4:ThreeActionableIdeas–Stillineffect

No.

Ticker

Direction

StockRating*

Start

End

Idea

Lastpx**

BenchmarkIndex

Absperf

Relperf

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

005490.KS

GRAB.O

2308.TW

ICBK.NS

6723.T

MQG.AX

2330.TW

NTES.O

SCIL.SI

RELI.NS

600276.SS

601138.SS

HDBK.NS

3661.TW

1801.T

1347.HK

2899.HK

INGL.NS

BIDU.O

036570.KS

9962.T

4183.T

8750.T

8830.T

300750.SZ

JD.O

3690.HK

4452.T

000660.KS

600519.SS

CBA.AX

300316.SZ

ZOMT.NS

323410.KS

2382.TW

3659.T

3088.T

601816.SS

XRO.AX

Sell

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Sell

Buy

Buy

Buy

Buy

Buy

Sell

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

UW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

UW

OW

OW

OW

OW

OW

UW

OW

OW

OW

OW

OW

OW

OW

OW

8-Aug-238-Aug-238-Aug-23 1-Aug-23 1-Aug-23 1-Aug-2325-Jul-2325-Jul-2325-Jul-23 18-Jul-23 18-Jul-23 18-Jul-23 11-Jul-23 11-Jul-23 11-Jul-23 4-Jul-23 4-Jul-23 4-Jul-2327-Jun-2327-Jun-2327-Jun-2320-Jun-2320-Jun-2320-Jun-2313-Jun-2313-Jun-2313-Jun-23 6-Jun-23 6-Jun-23 6-Jun-2330-May-2330-May-2330-May-2323-May-2323-May-2323-May-2316-May-2316-May-2316-May-23

7-Nov-237-Nov-237-Nov-2331-Oct-2331-Oct-2331-Oct-2324-Oct-2324-Oct-2324-Oct-2317-Oct-2317-Oct-2317-Oct-2310-Oct-2310-Oct-2310-Oct-23 3-Oct-23 3-Oct-23 3-Oct-2326-Sep-2326-Sep-2326-Sep-2319-Sep-2319-Sep-2319-Sep-2312-Sep-2312-Sep-2312-Sep-235-Sep-235-Sep-235-Sep-2329-Aug-2329-Aug-2329-Aug-2322-Aug-2322-Aug-2322-Aug-2315-Aug-2315-Aug-2315-Aug-23

POSCO

GrabHoldingsLtd

DeltaElectronicsInc.

ICICIBank

RenesasElectronics

MacquarieGroupLimited

TSMC

NetEase,Inc

SembCorpIndustriesLtd

RelianceIndustries

JiangsuHengrui

FoxconnIndustrialInternetCo.Ltd.

HDFCBank

AlchipTechnologiesLtd

Taisei

HuaHongSemiconductorLtd

ZijinMiningGroup

InterGlobeAviation

BaiduInc

NCSOFTCorp

MisumiGroup

MitsuiChemicals

Dai-ichiLifeHoldings

SumitomoRealty&Dev.

ContemporaryAmperexTechnologyCo.Ltd.JD.com,Inc.

Meituan

Kao

SKhynix

KweichowMoutaiCompanyLtd.

CommonwealthBkAust

JingshengMechanical&ElectricalCo

ZomatoLtd

KakaoBankCorp

QuantaComputerInc.

Nexon

MatsukiyoCocokara&Co.

Beijing-ShanghaiHigh-SpeedRailway

XeroLtd

597000 3.64 360.5 979.92463.5 175.4 552106.95 5.942508.65 40.14 24.181649.9 2145 4836 23.5 12.922560.1143.92278500 2475 3905 2717 3733247.14 38.05 140.1 5726118600 1890102.21 60.53 93.45 28300 240 2495 8149 5.37121.09

KoreaSeComposite(Kospi)StraitsTimesIndexL

TaiwanSeWeighedTaiexS&PBse(Sensex)30SensitiveTopix

S&P/AsxAllAustralian200TaiwanSeWeighedTaiexHangSengChinaEnterprisesStraitsTimesIndexL

S&PBse(Sensex)30SensitiveShanghaiSeCompositeShanghaiSeComposite

S&PBse(Sensex)30SensitiveTaiwanSeWeighedTaiexTopix

HangSengChinaEnterprisesHangSengChinaEnterprisesS&PBse(Sensex)30SensitiveHangSengChinaEnterprisesKoreaSeComposite(Kospi)Topix

Topix

Topix

Topix

ShanghaiSeCompositeHangSengChinaEnterprisesHangSengChinaEnterprisesTopix

KoreaSeComposite(Kospi)ShanghaiSeComposite

S&P/AsxAllAustralian200

ShanghaiSeComposite

S&PBse(Sensex)30SensitiveKoreaSeComposite(Kospi)TaiwanSeWeighedTaiexTopix

Topix

ShanghaiSeComposite

S&P/AsxAllAustralian200

0

0

0

-1

-10

-1

-3

0

5

-2

-15

-2

0

16

-5

-13

7

-1

0

-7

-13

-1

4

2

-16

0

9

14

9

15

-3

-13

39

8

124

-18

9

-2

31

.

.

.

.

.

.

.

.

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.

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.

.

0%0%0%5%2%1%0%7%2%0%0%9%1%6%3%4%8%3%0%0%1%5%0%3%0%2%5%7%4%1%1%1%8%0%3%7%5%5%1%

0

0

0

-0

-8

0

-1

0

3

-0

-17

-5

-0

16

-7

-14

6

-2

-3

-6

-14

-1

3

1

-13

-1

7

12

11

11

-1

-16

34

7

117

-24

1

-3

29

.

.

.

.

.

.

.

.

.

.

.

.

.

.

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.

.

.

.

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.

.

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.

.

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.

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.

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.

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.

.

0%0%0%6%2%7%4%9%6%8%2%2%4%1%8%7%6%0%0%7%9%9%6%8%2%5%8%1%0%0%3%4%7%7%2%9%6%9%6%

Source:MorganStanleyResearch,Datastream,Refinitiv,Bloomberg.

Note:PerformancedataasatlastpricedateAug8,2023.*StockratingsrefertothatwhentheideawasintroducedunlessthecoverageisdroppedorratingisremovedfromconsiderationbecauseunderMorganStanleypolicyand/orapplicableregulations.NC-CurrentlynotcoveredbyMorganStanleyResearch.12MperformancereferstoaveragetotalreturnoftheideasfromAug8,2022toAug8,2023,anddoesnotadjustforbuy/selldirection.Thesefiguresarenotaudited.Pastperformanceisnoguaranteeoffutureresults.Resultsshownexcludebrokeragecommissionsandtransactioncosts.CertainhistoricalThreeActionableIdeashavebeenremovedbecauseunderMorganStanleypolicyand/orapplicableregulations,MorganStanleymaybeprecludedfromissuingsuchinformationwithrespecttothiscompanyatthistime.PleasenotethatallimportantdisclosuresincludingpersonalholdingdisclosuresandMorganStanleydisclosuresforstocksundercoverageappearontheMorganStanleypublicwebsiteat/researchdisclosures.Fornon-covered(NC)stockspleaserefertoImportantUSRegulatoryDisclosuresonSubjectCompaniesandOtherImportantDisclosureslocatedatthebackofthisreport.Pleaserefertothissectionformoredetails.

4

Exhibit5:ThreeActionableIdeas–closedinlast13weeks

No.

Ticker

Direction

StockRating*

Start

End

Idea

Lastpx**

BenchmarkIndex

Absperf

Relperf

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

0992.HK

UNTR.JK

1193.HK

IHTL.NS

4519.T

0268.HK

2454.TW

3690.HK

NTES.O

ONGC.NS

PLS.AX

2330.TW

7733.T

271560.KS

000725.SZ

0823.HK

RIO.AX

002459.SZ

600570.SS

ICBK.NS

6702.T

002027.SZ

LTIM.NS

035420.KS

096770.KS

1109.HK

TCOM.O

MQG.AX

WTC.AX

PDD.O

ZTO.N

6752.T

2282.HK

CBA.AX

0857.HK

PBFI.NS

1099.HK

OCBC.SI

002142.SZ

Buy

Buy

Buy

Buy

Buy

Buy

Sell

Buy

Buy

Buy

Sell

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Sell

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Buy

Sell

Buy

Buy

Buy

Buy

Buy

OW

OW

OW

OW

OW

OW

UW

OW

OW

OW

UW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

OW

UW

OW

OW

OW

OW

OW

OW

OW

OW

OW

UW

OW

OW

OW

OW

OW

9-May-239-May-239-May-232-May-232-May-232-May-2325-Apr-2325-Apr-2325-Apr-2318-Apr-2318-Apr-2318-Apr-2311-Apr-2311-Apr-2311-Apr-23 4-Apr-23 4-Apr-2328-Mar-2328-Mar-2328-Mar-23 4-Apr-2321-Mar-2321-Mar-2321-Mar-2314-Mar-2314-Mar-2314-Mar-237-Mar-237-Mar-237-Mar-2328-Feb-2328-Feb-2328-Feb-2321-Feb-2321-Feb-2321-Feb-2314-Feb-2314-Feb-2314-Feb-23

8-Aug-238-Aug-238-Aug-23 1-Aug-23 1-Aug-23 1-Aug-2325-Jul-2325-Jul-2325-Jul-23 18-Jul-23 18-Jul-23 18-Jul-23 11-Jul-23 11-Jul-23 11-Jul-23 4-Jul-23 4-Jul-2327-Jun-2327-Jun-2327-Jun-2320-Jun-2320-Jun-2320-Jun-2320-Jun-2313-Jun-2313-Jun-2313-Jun-23 6-Jun-23 6-Jun-23 6-Jun-2330-May-2330-May-2330-May-2323-May-2323-May-2323-May-2316-May-2316-May-2316-May-23

Lenovo

UnitedTractorsTbkPT

ChinaResourcesGasGroupLtd

IndianHotelsCompanyLtd

ChugaiPharmaceutical

KingdeeInternationalSoftwareGroup

MediaTek

Meituan

NetEase,Inc

Oil&NaturalGasCorp.

PilbaraMineralsLtd

TSMC

Olympus

OrionCorp

BOETechnology

LinkREIT

RioTintoLimited

JASolarTechnologyCoLtd

HundsunTechnologiesInc.

ICICIBank

Fujitsu

FocusMediaInformationTechnology

LTIMindtreeLimited

NaverCorp

SKInnovationCoLtd

ChinaResourcesLandLtd.

TGroupLtd

MacquarieGroupLimited

WiseTechGlobalLimited

PDDHoldingsInc

ZTOExpress

PanasonicHoldings

MGMChinaHoldingsLimited

CommonwealthBkAust

PetroChina

PBFintechLimited

SinopharmGroup

Oversea-ChineseBankingCorp

BankofNingboCo.Ltd

8.51 27525 25.8388.65 4182 13.44 690 140.1106.95173.35 5.32 5522306.5117800 4.11 41.8113.46 30.77 40.85 979.9 18485 7.525082.55223000191300 33.9 39.94 175.4 87.69 83.72 26.6 1644 10.6102.21 5.73760.15 21.45 13.1627.9

HangSengChinaEnterprisesIdxComposite

HangSengChinaEnterprisesS&PBse(Sensex)30SensitiveTopix

HangSengChinaEnterprisesTaiwanSeWeighedTaiexHangSengChinaEnterprisesHangSengChinaEnterprisesS&PBse(Sensex)30SensitiveS&P/AsxAllAustralian200TaiwanSeWeighedTaiexTopix

KoreaSeComposite(Kospi)ShanghaiSeCompositeHangSeng

S&P/AsxAllAustralian200

ShanghaiSeComposite

ShanghaiSeComposite

S&PBse(Sensex)30SensitiveTopix

ShanghaiSeComposite

S&PBse(Sensex)30SensitiveKoreaSeComposite(Kospi)KoreaSeComposite(Kospi)HangSengChinaEnterprisesHangSengChinaEnterprisesS&P/AsxAllAustralian200S&P/AsxAllAustralian200HangSengChinaEnterprisesHangSengChinaEnterprisesTopix

HangSeng

S&P/AsxAllAustralian200HangSengChinaEnterprisesS&PBse(Sensex)30SensitiveHangSengChinaEnterprisesStraitsTimesIndexLShanghaiSeComposite

12

8

-6

14

21

13

-13

2

26

4

-30

13

-11

-8

-2

-10

-1

5

-8

9

1

11

7

1

17

0

-4

-10

20

-22

6

25

-13

0

28

24

23

-2

-12

.

.

.

.

.

.

.

.

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.

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2%9%9%4%8%2%6%4%2%2%8%3%6%6%3%1%8%4%2%5%3%3%4%0%4%8%3%4%2%3%1%7%7%0%9%4%6%4%4%

11

7

-7

5

9

7

1

-0

23

-8

-31

2

-24

-9

-0

-7

-3

6

-7

-1

-11

11

-2

10

5

-2

-7

-8

22

-16

10

16

-8

0

33

21

28

-1

-12

.

.

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6%6%5%3%0%7%0%4%4%3%1%3%1%2%8%2%1%4%2%2%7%1%2%1%1%8%9%4%2%2%5%1%6%6%4%9%1%3%4%

Source:MorganStanleyResearch,Datastream,Refinitiv,Bloomberg.

Note:PerformancedataasatlastpricedateAug8,2023.*StockratingsrefertothatwhentheideawasintroducedunlessthecoverageisdroppedorratingisremovedfromconsiderationbecauseunderMorganStanleypolicyand/orapplicableregulations.NC-CurrentlynotcoveredbyMorganStanleyResearch.12MperformancereferstoaveragetotalreturnoftheideasfromAug8,2022toAug8,2023,anddoesnotadjustforbuy/selldirection.Thesefiguresarenotaudited.Pastperformanceisnoguaranteeoffutureresults.Resultsshownexcludebrokeragecommissionsandtransactioncosts.CertainhistoricalThreeActionableIdeashavebeenremovedbecauseunderMorganStanleypolicyand/orapplicableregulations,MorganStanleymaybeprecludedfromissuingsuchinformationwithrespecttothiscompanyatthistime.++=StockRating,PriceTargetorEstimatesarenotavailableorhavebeenremovedduetoapplicablelawand/orMorganStanleypolicy.PleasenotethatallimportantdisclosuresincludingpersonalholdingdisclosuresandMorganStanleydisclosuresforstocksundercoverageappearontheMorganStanleypublicwebsiteat/researchdisclosures.Fornon-covered(NC)stockspleaserefertoImportantUSRegulatoryDisclosuresonSubjectCompaniesandOtherImportantDisclosureslocatedatthebackofthisreport.

5

Ideas,bymarket

HongKongandChinaaccountedforthemostideasintheregion,followedby

Japan.

Taiwangeneratedthebestholdingperiodrelativereturnonaverageat3.8%,while

Japanhadtheworstaverageholdingperiodrelativereturnat0.5%

57%ofideaswerecontributedbyASEANgeneratingpositiverelativereturns.Korea

hadthelowesthitratioat47%.

Exhibit6:Numberofideas,bymarket

No.

of"ThreeinThree"Ideasbycountry

450

394

400

350

300

250

193

200

134

150

116

96

79

75

100

50

0

Australia

India

Korea

Taiwan

Japan

ASEAN

HK/China

Source:MorganStanleyResearch.

Exhibit7:Ideaperformance,bymarket

No.ofideas

AvgholdprdreturnAbsoluteRelative

No.+veoutperf

Hitratio

12MreturnAbsoluteRelative

Australia

HK/China

India

Korea

Taiwan

ASEAN

Japan

96

394

134

116

79

75

193

2.6%

2.3%4.3%2.7%5.0%4.8%23%

1.9%

1.9%1.4%1.4%3.8%3.4%05%

49

200

70

54

43

42

93

51%

51%52%47%55%57%48%

2.6%

-20.9%7.6%-8.3%-2.2%4.8%64%

0.4%

-4.0%1.9%-1.4%-0.1%2.6%16%

Source:MorganStanleyResearch,Datastream,Refinitiv,Bloomberg.PerformancedataasofAug8,2023.12MperformancereferstoaveragetotalreturnoftheideasfromAug8,2022toAug8,2023,anddoesnotadjustforbuy/selldirection.Thesefiguresarenotaudited.Pastperformanceisnoguaranteeoffutureresults.Resultsshownexcludebrokeragecommissionsandtransactioncosts.

Notes

PleasecontactSamuelLee(samuel.sw.lee@)forthefulllistofThreeinthreeideasandtheirperformance.

6

FAQon"Threeinthree"

1.Whatis"Threeinthree"?

"Threeinthree"isaweeklyreportispublishedeveryMonday,highlightingthethreemostactionable,high-convictioncallsfromAsianresearch(includingJapan)inthepreviousweek.

2.Whyisitrelevant?

The"Threeinthree"frameworkaimstopinpointhigh-convictionresearchideastoidentifyactionableopportunitiesforinvestorstocapturealpha.

3.Howrobustaretheselectionprocessandcriteria?

TheideasareselectedbytheResearchProductteamaftercanvassingfeedbackfromthebroader"Threeinthree"group,whichincludesmembersoftheEquitySales,CrossProduct,andContentteams.

4.Howisanalystconvictiontested?

MembersoftheResearchProductteamhavebeencloselyinvolvedwiththecreationoftheselectedreports,givingthemadditionalinsightontheanalysts’thoughtprocess.Toshowconviction,analystsmustexplainhowtheircallisdifferentiatedandidentifyimmediatecatalystsinawell-researchedreport.

5.Whyisitdoneonaweeklybasis?

Byselectingthreekeyideastobepublishedandfeaturedinanemaileachweek,investorswillknowwhenandwheretofindaregularupdateonsomeofourstrongestideas.

6.Howisinvestorfeedbackincorporatedintheselectionprocess?

Our"Threeinthree"teamincludesrelevantEquitySalesandCrossProductteammemberswhoareconstantlyinteractingwithregionalandglobalinvestorstogleanimportantfeedbackonhowthevariousinvestmentideasarebeingperceivedinthemarket.ThefinaldecisiononwhichideastoincludeismadebytheResearchProductteam.

7.Whatarethemeasurementcriteriaandprocess,andhowcanItrackthem?

Performanceisbasedontotalreturninlocalcurrency.Thecut-offdayforweeklyperformanceisTuesday.

Foreachthematicidearepresentedbyaninvestablebasket,weselecttwostocksfromtheinvestablebasketthatarethe

7

mostliquidandwiththelargestmarketcaps,assigninganequalweightingtoeachstock,i.e.,eachofthetwostocksinsideathematicideacarrieshalftheweightofasinglestock"Threeinthree"idea.

Eachideaisonarelativebasis,withthelocalbenchmarkbeingthemajorstockexchangeindexaccordingtothecountryof

mainoperation.

Eachideaiseffectivefor13weeks.Afteranideahasbeenintroduced,ifourstockanalystchangesratingwithinthe13weeks,

theideaisassumedtobeclosedonthenextTuesday.

Outperformanceisdeterminedbystockperformanceoverlocalbenchmarkperformance,adjustingfordirection(i.e.,buyfor

Overweight-ratedstocks,sellforUnderweight-ratedstocks).

TheCumulativeOutperformancetrackerhasanassumedstartingpointof100onApril26,2016.Averageweekly

outperformanceiscalculatedforallideas.Trackerlevelgrows(/declines)byaverageweeklyout(/under)performanceeveryweek.

Separately,outperformancefortheperiodfromthestartdatetoeveryTuesday(orideaclosedate,whicheverisearlier)for

eachideaiscalculated.Thehitratioisdefinedasnumberofideaswithpositivereturnsasapercentageofthetotalnumberofideas.Wetrackthehitratioonaweeklybasis.

Inbothmetrics,costssuchasbrokeragecommissions,transactioncosts,tradingcosts,etc.,arenotconsidered.

8.HowIcanaccesstheseideas?

Youcansubscribeto"Threeinthree"report,whichispublishedinthemorningeveryMonday.

9.WhatisthedifferencebetweenInsightreportsandactionableideas?

Insightshaveamedium-terminvestmenthorizon(12-18months)andbreaknewgroundonkeyinvestmentthemesand

debates.Theyofferdeep,proprietaryanalysisonmacroandstockissues.

Actionableideasareeffectiveforaroundthreemonthsbydefault,backedbyin-depthreports(butnotlimitedtoInsight

reports).

Thebackboneissimilar,andInsightreportscouldbeincludedintheactionableideas.

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