| | | Uni-President China Holdings 12-month rating | Neutral | 12m price target | HK$7.23 |
We have a Neutral rating on Uni-President China (UPC) as we believe it is fairly valued and an expected revenue decline in H115. Utilisation rate should be depressed due to sluggish revenue growth. We prefer Tingyi and UPE over UPC given their less expensive valuations and underperformance versus UPC. Our price target implies 10x 2016E EV/EBITDA. In our upside scenario, we assume UPC's EBIT margin recovers to 6% in 2016 compared with our base case of 5.4%, if new product launches are better than expected. We estimate this would result in 12% earnings upside for 2016. If we assume 11x 2016E EV/EBITDA, we estimate a valuation of HK$8.80. In our downside scenario, we assume no revenue growth in 2016 due to weak demand and competition, resulting in 25% earnings downside for 2016. If we assume 8x 2016E EV/EBITDA, we estimate a valuation of HK$4.53. A negative catalyst would be UPC reporting a Q4 loss and revenue disappointment. Continued successful roll-out of new products in both the beverage and instant noodle segments would be a positive catalyst. Uni-President China is one of the leading manufacturers of beverages and instant noodles in China. It commenced operations in 1992 as the mainland China branch of the Uni-President Group, which is the largest food and beverage conglomerate in Taiwan. In 2014, the beverage segment accounted for 62% of its total revenue (instant noodles: 35%; others: 2%). We believe China's economic downturn will have an impact on both noodle and beverage consumption, and we expect industry growth to decelerate. This suggests execution risks for UPC in view of a low utilisation rate. We expect the competitive landscape to improve as Tingyi has adopted a profit-oriented strategy and an innovation-based growth approach; UPC will also focus on product upgrades. Furthermore, Tingyi and UPC have ended their price war in the instant noodle segment, suggesting a better margin outlook. Declining raw material prices in 2015 could result in short-term cost benefits. 
Source: UBS estimates (Rmb m) | 2013 | 2014 | 2015E | 2016E | 2017E | Operating profit | 441 | 203 | 1,059 | 1,248 | 1,501 | Instant noodles | (143) | (94) | 128 | 184 | 242 | Beverages | 646 | 533 | 1,212 | 1,357 | 1,569 | Others | (62) | (237) | (281) | (293) | (311) | Source: UBS estimates |
| | | Erratum: This note replaces an earlier version that did not name one of the analysts on the front page. Today we publish an Evidence Lab report that focuses on Tier 4-5 (T4-5) city consumers' spending habits, brand awareness and preferences. T4-5 city consumers account for 63% of China's total population. The common belief is low-tier city consumers have limited categorical needs, low brand awareness, high price sensitivity and are generally satisfied with a small basket of commoditised products. We collaborated with UBS Evidence Lab to launch the inaugural UBS China T4-5 city consumption survey where we had interviewed 1,264 local residents across 10 cities in the north, south, central, east and southwest regions. Interviewed in the centre of each city, the findings therefore reflect the voices of T4-5 city dwellers and not villagers. The results suggest high brand awareness, thriving consumption, and a willingness to upgrade products for better comfort, higher food quality and safety in expectation of improving finances in the next 12 months. In this note, we analyse the implications of our survey for UPC. According to our Evidence Lab survey of T4-5 consumers, 55% of instant noodle consumers claimed to regularly purchase UPC products, just behind Tingyi (86%). Tingyi and UPC combined dominate the segment. Figure 1: Brand regularly purchased: instant noodles | 
| Source: UBS Evidence Lab |
UPC and Jiaduobao both rank high in the ready-to-drink tea sector, with some of the most popular brands regularly purchased by tea drinkers. Figure 2: Brand regularly purchased: ready-to-drink tea | 
| Source: UBS Evidence Lab |
UPC's EBITDA margin historically has been highly volatile, and is cyclical after a new product launch. We expect EBITDA margin in 2015 to reach the historical high of 2009. Figure 3: Historical EBITDA margin | 
| Source: Company data, UBS estimates |
Figure 4: Changes in key assumptions | | New | Old | Change | | 2015E | 2016E | 2017E | 2015E | 2016E | 2017E | 2015E | 2016E | 2017E | Instant noodles | | | | | | | | | | ASP change (%) | 0.0% | 3.6% | 2.6% | 0.0% | 2.4% | 2.5% | 0ppts | 1ppts | 0ppts | Volume growth (%) | -5.0% | 2.2% | 2.2% | 0.0% | 0.7% | 0.7% | -5ppts | 2ppts | 2ppts | Beverage ASP growth (%) | | | | | | | | | | RTD tea | 3.0% | 3.0% | 3.0% | 3.0% | 2.0% | 2.0% | 0ppts | 1ppts | 1ppts | Juice drink | 5.0% | 5.0% | 5.0% | 5.0% | 2.0% | 2.0% | 0ppts | 3ppts | 3ppts | Other beverage | 0.0% | 0.0% | 0.0% | 3.0% | 2.0% | 2.0% | -3ppts | -2ppts | -2ppts | Beverage volume growth (%) | | | | | | | | | | RTD tea | -5.0% | 0.0% | 0.0% | -5.0% | 5.0% | 5.0% | 0ppts | -5ppts | -5ppts | Juice drink | 10.0% | 0.0% | 0.0% | 10.0% | 8.0% | 8.0% | 0ppts | -8ppts | -8ppts | Other beverage | 0.0% | 0.0% | 0.0% | 0.0% | 8.0% | 8.0% | 0ppts | -8ppts | -8ppts | Revenue (Rmb m) | | | | | | | | | | Instant noodles | 7,562 | 8,009 | 8,402 | 7,960 | 8,205 | 8,464 | -5.0% | -2.4% | -0.7% | Beverage | 14,496 | 14,886 | 15,292 | 14,633 | 15,954 | 17,397 | -0.9% | -6.7% | -12.1% | EBIT margin (%) | | | | | | | | | | Instant noodles | 1.7% | 2.3% | 2.9% | 3.3% | 3.9% | 4.6% | -2ppts | -2ppts | -2ppts | Beverage | 8.4% | 9.1% | 10.3% | 6.8% | 6.7% | 7.1% | 2ppts | 0ppts | 0ppts | Capital expenditures (Rmb m) | 2,405 | 1,924 | 1,843 | 2,783 | 1,846 | 2,015 | -13.6% | 0.0% | 0.0% | Dividend payout ratio (%) | 20.0% | 30.0% | 30.0% | 20.0% | 30.0% | 30.0% | 0ppts | 0ppts | 0ppts |
| Source: UBS estimates |
| | Uni-President China Holdings (0220.HK) | | | | | | | | | | | Revenues | 21,406 | 23,329 | 22,488 | 22,487 | 0.0 | 23,324 | 3.7 | 24,123 | 24,960 | 25,836 | Gross profit | 7,402 | 7,780 | 7,308 | 8,415 | 15.1 | 8,756 | 4.1 | 9,276 | 9,619 | 9,988 | EBITDA (UBS) | 1,685 | 1,545 | 1,616 | 2,669 | 65.2 | 2,900 | 8.7 | 3,085 | 3,290 | 3,507 | Depreciation & amortisation | (803) | (1,104) | (1,413) | (1,610) | 13.9 | (1,652) | 2.6 | (1,585) | (1,719) | (1,855) | EBIT (UBS) | 882 | 441 | 203 | 1,059 | NM | 1,248 | 17.9 | 1,501 | 1,570 | 1,652 | Associates & investment income | 132 | 88 | 85 | 85 | 0.0 | 85 | 0.0 | 85 | 85 | 85 | Other non-operating income | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | Net interest | 64 | 95 | (42) | (49) | -16.3 | (78) | -60.0 | (70) | (60) | (44) | Exceptionals (incl goodwill) | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | Profit before tax | 1,077 | 625 | 246 | 1,095 | 345.7 | 1,255 | 14.6 | 1,516 | 1,595 | 1,693 | Tax | (221) | (149) | (87) | (235) | -170.5 | (281) | -19.6 | (349) | (370) | (395) | Profit after tax | 856 | 476 | 159 | 860 | NM | 974 | 13.2 | 1,167 | 1,225 | 1,298 | Preference dividends and Minorities | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | Extraordinary items | 0 | 440 | 127 | 0 | - | 0 | - | 0 | 0 | 0 | Net earnings (local GAAP) | 856 | 916 | 286 | 860 | 201.2 | 974 | 13.2 | 1,167 | 1,225 | 1,298 | Net earnings (UBS) | 856 | 476 | 159 | 860 | NM | 974 | 13.2 | 1,167 | 1,225 | 1,298 | Tax rate (%) | 20.5 | 23.8 | 35.4 | 21.5 | -39.3 | 22.4 | 4.3 | 23.0 | 23.2 | 23.4 |
| | | | | | | | | | | EPS (UBS, diluted) | 0.23 | 0.13 | 0.04 | 0.20 | 398.6 | 0.23 | 13.2 | 0.27 | 0.28 | 0.30 | EPS (local GAAP, diluted) | 0.23 | 0.24 | 0.07 | 0.20 | 177.3 | 0.23 | 13.2 | 0.27 | 0.28 | 0.30 | EPS (UBS, basic) | 0.23 | 0.13 | 0.04 | 0.20 | 398.6 | 0.23 | 13.2 | 0.27 | 0.28 | 0.30 | Net DPS (Rmb) | 0.05 | 0.05 | 0.01 | 0.04 | 177.3 | 0.07 | 69.9 | 0.08 | 0.09 | 0.09 | Book value per share | 2.04 | 2.16 | 2.51 | 2.69 | 7.4 | 2.88 | 6.9 | 3.08 | 3.29 | 3.50 | Average shares (diluted) | 3,765.44 | 3,765.44 | 3,976.15 | 4,319.33 | 8.6 | 4,319.33 | 0.0 | 4,319.33 | 4,319.33 | 4,319.33 |
| | | | | | | | | | | Cash and equivalents | 2,291 | 1,414 | 2,128 | 1,722 | -19.1 | 2,203 | 27.9 | 2,729 | 3,270 | 4,133 | Other current assets | 2,626 | 3,094 | 2,960 | 3,086 | 4.3 | 3,195 | 3.5 | 3,283 | 3,392 | 3,505 | Total current assets | 4,917 | 4,508 | 5,088 | 4,809 | -5.5 | 5,399 | 12.3 | 6,012 | 6,661 | 7,638 | Net tangible fixed assets | 7,912 | 10,186 | 11,642 | 12,496 | 7.3 | 12,827 | 2.6 | 13,144 | 13,489 | 13,565 | Net intangible fixed assets | 175 | 266 | 271 | 271 | 0.0 | 271 | 0.0 | 271 | 271 | 271 | Investments / other assets | 3,536 | 4,008 | 4,263 | 4,289 | 0.6 | 4,315 | 0.6 | 4,341 | 4,367 | 4,392 | Total assets | 16,540 | 18,968 | 21,264 | 21,865 | 2.8 | 22,812 | 4.3 | 23,768 | 24,788 | 25,866 | Trade payables & other ST liabilities | 4,540 | 4,434 | 4,164 | 3,980 | -4.4 | 4,117 | 3.4 | 4,194 | 4,331 | 4,471 | Short term debt | 409 | 902 | 1,556 | 1,556 | 0.00 | 1,556 | 0.00 | 1,556 | 1,556 | 1,556 | Total current liabilities | 4,948 | 5,336 | 5,721 | 5,536 | -3.2 | 5,673 | 2.5 | 5,750 | 5,887 | 6,028 | Long term debt | 3,562 | 5,102 | 4,280 | 4,280 | 0.0 | 4,280 | 0.0 | 4,280 | 4,280 | 4,280 | Other long term liabilities | 358 | 388 | 427 | 409 | -4.1 | 417 | 1.9 | 422 | 429 | 437 | Preferred shares | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | Total liabilities (incl pref shares) | 8,869 | 10,826 | 10,428 | 10,226 | -1.9 | 10,371 | 1.4 | 10,452 | 10,597 | 10,745 | Common s/h equity | 7,671 | 8,142 | 10,837 | 11,640 | 7.4 | 12,441 | 6.9 | 13,316 | 14,191 | 15,121 | Minority interests | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | Total liabilities & equity | 16,540 | 18,968 | 21,264 | 21,865 | 2.8 | 22,812 | 4.3 | 23,768 | 24,788 | 25,866 |
| | | | | | | | | | | Net income (before pref divs) | 856 | 916 | 286 | 860 | 201.2 | 974 | 13.2 | 1,167 | 1,225 | 1,298 | Depreciation & amortisation | 803 | 1,104 | 1,413 | 1,610 | 13.9 | 1,652 | 2.6 | 1,585 | 1,719 | 1,855 | Net change in working capital | 640 | (619) | 52 | (328) | - | 36 | - | (6) | 35 | 35 | Other operating | 242 | (167) | (339) | (85) | 74.9 | (85) | 0.0 | (85) | (85) | (85) | Operating cash flow | 2,541 | 1,234 | 1,411 | 2,057 | 45.7 | 2,577 | 25.3 | 2,661 | 2,895 | 3,103 | Tangible capital expenditure | (3,578) | (4,746) | (3,346) | (2,405) | 28.1 | (1,924) | 20.0 | (1,843) | (2,004) | (1,873) | Intangible capital expenditure | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | Net (acquisitions) / disposals | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | Other investing | 173 | 663 | 120 | 0 | - | 0 | - | 0 | 0 | 0 | Investing cash flow | (3,405) | (4,083) | (3,225) | (2,405) | 25.4 | (1,924) | 20.0 | (1,843) | (2,004) | (1,873) | Equity dividends paid | (94) | (171) | (183) | (57) | 68.8 | (172) | -201.2 | (292) | (350) | (368) | Share issues / (buybacks) | 0 | 0 | 2,592 | 0 | - | 0 | - | 0 | 0 | 0 | Other financing | 5 | 113 | (37) | 0 | - | 0 | - | 0 | 0 | 0 | Change in debt & pref shares | 875 | 2,033 | (168) | 0 | - | 0 | - | 0 | 0 | 0 | Financing cash flow | 786 | 1,975 | 2,204 | (57) | - | (172) | -201.2 | (292) | (350) | (368) | Cash flow inc/(dec) in cash | (78) | (874) | 390 | (406) | - | 481 | - | 526 | 541 | 863 | FX / non cash items | 0 | (3) | 324 | 0 | - | 0 | - | 0 | 0 | 0 | Balance sheet inc/(dec) in cash | (78) | (877) | 714 | (406) | - | 481 | - | 526 | 541 | 863 |
Source: Company accounts, UBS estimates. (UBS) metrics use reported figures which have been adjusted by UBS analysts.
Uni-President China Holdings (0220.HK) | | | | | | | | | P/E (local GAAP, diluted) | 24.6 | 25.4 | 74.2 | 28.8 | 25.4 | 21.2 | 20.2 | 19.1 | P/E (UBS, diluted) | 24.6 | 48.9 | NM | 28.8 | 25.4 | 21.2 | 20.2 | 19.1 | P/CEPS | 12.7 | 14.7 | 13.5 | 10.0 | 9.4 | 9.0 | 8.4 | 7.9 | Equity FCF (UBS) yield % | (5.0) | (15.3) | (8.8) | (1.4) | 2.6 | 3.3 | 3.6 | 5.0 | Net dividend yield (%) | 0.8 | 0.8 | 0.3 | 0.7 | 1.2 | 1.4 | 1.5 | 1.6 | P/BV x | 2.7 | 2.9 | 2.1 | 2.1 | 2.0 | 1.9 | 1.7 | 1.6 | EV/revenues (core) | 0.9 | 1.0 | 1.1 | 1.2 | 1.1 | 1.1 | 1.0 | 1.0 | EV/EBITDA (core) | 11.9 | 15.8 | 15.1 | 10.1 | 9.2 | 8.5 | 7.8 | 7.1 | EV/EBIT (core) | 22.8 | NM | NM | 25.4 | 21.4 | 17.4 | 16.3 | 15.0 | EV/OpFCF (core) | NM | NM | NM | NM | 27.4 | 21.0 | 19.9 | 15.1 | EV/op. invested capital | 3.0 | 2.6 | 2.0 | 2.0 | 1.9 | 1.8 | 1.8 | 1.7 |
| | | | | | | | | Market cap. | 20,794 | 22,924 | 22,030 | 24,776 | 24,776 | 24,776 | 24,776 | 24,776 | Net debt (cash) | 1,204 | 3,135 | 4,149 | 3,911 | 3,873 | 3,370 | 2,837 | 2,135 | Buy out of minorities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Pension provisions/other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Total enterprise value | 21,998 | 26,059 | 26,179 | 28,687 | 28,649 | 28,146 | 27,613 | 26,911 | Non core assets | (1,916) | (1,692) | (1,739) | (1,823) | (1,908) | (1,993) | (2,078) | (2,163) | Core enterprise value | 20,082 | 24,366 | 24,440 | 26,863 | 26,741 | 26,152 | 25,534 | 24,747 |
| | | | | | | | | Revenue | 26.4 | 9.0 | -3.6 | 0.0 | 3.7 | 3.4 | 3.5 | 3.5 | EBITDA (UBS) | 112.8 | -8.3 | 4.6 | 65.2 | 8.7 | 6.4 | 6.6 | 6.6 | EBIT (UBS) | NM | -49.9 | -54.0 | NM | 17.9 | 20.2 | 4.6 | 5.2 | EPS (UBS, diluted) | 174.4 | -44.4 | -68.4 | NM | 13.2 | 19.8 | 5.0 | 5.9 | Net DPS | 82.9 | 7.1 | -70.5 | 177.3 | 69.9 | 19.8 | 5.0 | 5.9 |
| | | | | | | | | Gross profit margin | 34.6 | 33.3 | 32.5 | 37.4 | 37.5 | 38.5 | 38.5 | 38.7 | EBITDA margin | 7.9 | 6.6 | 7.2 | 11.9 | 12.4 | 12.8 | 13.2 | 13.6 | EBIT margin | 4.1 | 1.9 | 0.9 | 4.7 | 5.4 | 6.2 | 6.3 | 6.4 | Net earnings (UBS) margin | 4.0 | 2.0 | 0.7 | 3.8 | 4.2 | 4.8 | 4.9 | 5.0 | ROIC (EBIT) | 13.3 | 4.8 | 1.7 | 7.9 | 8.9 | 10.5 | 10.8 | 11.3 | ROIC post tax | 10.2 | 3.5 | 0.8 | 6.1 | 6.8 | 7.9 | 8.1 | 8.5 | ROE (UBS) | 11.8 | 6.0 | 1.7 | 7.7 | 8.1 | 9.1 | 8.9 | 8.9 |
| | | | | | | | | Net debt / EBITDA | 1.0 | 3.0 | 2.3 | 1.5 | 1.3 | 1.0 | 0.8 | 0.5 | Net debt / total equity % | 21.9 | 56.4 | 34.2 | 35.3 | 29.2 | 23.3 | 18.1 | 11.3 | Net debt / (net debt + total equity) % | 18.0 | 36.1 | 25.5 | 26.1 | 22.6 | 18.9 | 15.3 | 10.1 | Net debt/EV % | 8.4 | 18.8 | 15.2 | 15.3 | 13.6 | 11.9 | 10.1 | 6.9 | Capex / depreciation % | NM | NM | NM | 155.1 | 120.8 | 120.8 | 120.7 | 104.3 | Capex / revenue % | 16.7 | 20.3 | 14.9 | 10.7 | 8.2 | 7.6 | 8.0 | 7.2 | EBIT / net interest | NM | NM | 4.8 | 21.6 | 15.9 | 21.4 | 26.0 | 37.6 | Dividend cover (UBS) | 5.0 | 2.6 | 2.8 | 5.0 | 3.3 | 3.3 | 3.3 | 3.3 | Div. payout ratio (UBS) % | 20.0 | 38.5 | 36.0 | 20.0 | 30.0 | 30.0 | 30.0 | 30.0 |
| | | | | | | | | Others | 21,406 | 23,329 | 22,488 | 22,487 | 23,324 | 24,123 | 24,960 | 25,836 | Total | 21,406 | 23,329 | 22,488 | 22,487 | 23,324 | 24,123 | 24,960 | 25,836 |
| | | | | | | | | Others | 882 | 441 | 203 | 1,059 | 1,248 | 1,501 | 1,570 | 1,652 | Total | 882 | 441 | 203 | 1,059 | 1,248 | 1,501 | 1,570 | 1,652 |
Source: Company accounts, UBS estimates. (UBS) metrics use reported figures which have been adjusted by UBS analysts. | | | | | Forecast returns | Forecast price appreciation+3.6% | Forecast dividend yield1.2% | Forecast stock return+4.8% | Market return assumption9.6% | Forecast excess return-4.8% |
| Statement of Risk We believe the key risks are: 1) a significant slowdown in the economy and consumption; 2) competition; 3) cost inflation; 4) price resistance; 5) a change in government policies; 6) regulation; 7) FX; and 8) refinancing risks.
Key downside risks for the company are execution, which could result in a slower-than-expected improvement in margin. More severe competition could also result in potential market share loss or higher-than-expected margin squeezes for the noodle and beverage segments. Required Disclosures This report has been prepared by UBS Securities Asia Limited, an affiliate of UBS AG. UBS AG, its subsidiaries, branches and affiliates are referred to herein as UBS. For information on the ways in which UBS manages conflicts and maintains independence of its research product; historical performance information; and certain additional disclosures concerning UBS research recommendations, please visit www.ubs.com/disclosures. The figures contained in performance charts refer to the past; past performance is not a reliable indicator of future results. Additional information will be made available upon request. UBS Securities Co. Limited is licensed to conduct securities investment consultancy businesses by the China Securities Regulatory Commission. Analyst Certification: Each research analyst primarily responsible for the content of this research report, in whole or in part, certifies that with respect to each security or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers and were prepared in an independent manner, including with respect to UBS, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in the research report. UBS Investment Research: Global Equity Rating Definitions 12-Month Rating | Definition | Coverage | IB Services | Buy | FSR is > 6% above the MRA. | 49% | 33% | Neutral | FSR is between -6% and 6% of the MRA. | 40% | 26% | Sell | FSR is > 6% below the MRA. | 12% | 18% | Short-Term Rating | Definition | Coverage | IB Services | Buy | Stock price expected to rise within three months from the time the rating was assigned because of a specific catalyst or event. | less than 1% | less than 1% | Sell | Stock price expected to fall within three months from the time the rating was assigned because of a specific catalyst or event. | less than 1% | less than 1% |
Source: UBS. Rating allocations are as of 30 September 2015.
1:Percentage of companies under coverage globally within the 12-month rating category. 2:Percentage of companies within the 12-month rating category for which investment banking (IB) services were provided within the past 12 months. 3:Percentage of companies under coverage globally within the Short-Term rating category. 4:Percentage of companies within the Short-Term rating category for which investment banking (IB) services were provided within the past 12 months. KEY DEFINITIONS: Forecast Stock Return (FSR) is defined as expected percentage price appreciation plus gross dividend yield over the next 12 months. Market Return Assumption (MRA) is defined as the one-year local market interest rate plus 5% (a proxy for, and not a forecast of, the equity risk premium). Under Review (UR) Stocks may be flagged as UR by the analyst, indicating that the stock's price target and/or rating are subject to possible change in the near term, usually in response to an event that may affect the investment case or valuation. Short-Term Ratings reflect the expected near-term (up to three months) performance of the stock and do not reflect any change in the fundamental view or investment case. Equity Price Targets have an investment horizon of 12 months. EXCEPTIONS AND SPECIAL CASES: UK and European Investment Fund ratings and definitions are: Buy: Positive on factors such as structure, management, performance record, discount; Neutral: Neutral on factors such as structure, management, performance record, discount; Sell: Negative on factors such as structure, management, performance record, discount. Core Banding Exceptions (CBE): Exceptions to the standard +/-6% bands may be granted by the Investment Review Committee (IRC). Factors considered by the IRC include the stock's volatility and the credit spread of the respective company's debt. As a result, stocks deemed to be very high or low risk may be subject to higher or lower bands as they relate to the rating. When such exceptions apply, they will be identified in the Company Disclosures table in the relevant research piece. Research analysts contributing to this report who are employed by any non-US affiliate of UBS Securities LLC are not registered/qualified as research analysts with the NASD and NYSE and therefore are not subject to the restrictions contained in the NASD and NYSE rules on communications with a subject company, public appearances, and trading securities held by a research analyst account. The name of each affiliate and analyst employed by that affiliate contributing to this report, if any, follows. UBS AG Hong Kong Branch: Christine Peng, CFA; Erica Poon Werkun, CFA. UBS Securities Pte. Ltd., Taipei Branch: Ally Chen. Company Disclosures Company Name | Reuters | 12-month rating | Short-term rating | Price | Price date | Tingyi Cayman Islands | 0322.HK | Buy | N/A | HK$11.96 | 16 Nov 2015 | Uni-President China Holdings | 0220.HK | Neutral | N/A | HK$6.93 | 16 Nov 2015 | Uni-President Enterprises | 1216.TW | Buy | N/A | NT$54.20 | 16 Nov 2015 |
Source: UBS. All prices as of local market close.
Ratings in this table are the most current published ratings prior to this report. They may be more recent than the stock pricing date 22.UBS AG, its affiliates or subsidiaries held other significant financial interests in this company/entity as of last month`s end (or the prior month`s end if this report is dated less than 10 working days after the most recent month`s end). Unless otherwise indicated, please refer to the Valuation and Risk sections within the body of this report. Tingyi Cayman Islands (HK$) 
Source: UBS; as of 16 Nov 2015 |
Uni-President China Holdings (HK$) 
Source: UBS; as of 16 Nov 2015 |
Uni-President Enterprises (NT$) 
Source: UBS; as of 16 Nov 2015 |
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