Top 10 China Picks - Century Financial

1. 26 January 2021
www.century.ae
TOP 10
China picks

2. Century Financial Consultancy LLC ("CFC") is Limited Liability
Company incorporated under the Laws of UAE and is duly
licensed and regulated by the Emirates Securities and
Commodities Authority of UAE (SCA). This document is a
marketing material and is for informational purposes only and
must not be construed to be an advice to invest or otherwise in
any investment or financial product. CFC does not guarantee as to
adequacy, accuracy, completeness or reliability of any information
or data contained herein and under no circumstances whatsoever
none of such information or data be construed as an advice or
trading strategy or recommendation to deal (Buy/Sell) in any
investment or financial product. CFC is not responsible or liable for
any result, gain or loss, based on this information, in whole or in
part. Please carefully read full disclosure mentioned below.
Disclaimer

3. Top picks 2021
A Quick Glance
Instrument Name
Xpeng Inc - ADR
Dada Nexus Ltd - ADR
OneConnect Financial
Tech Co Ltd ADR
Tencent Music Entertainment
Group - ADR
Baozun Inc
GSX Techedu Inc
Travelsky Technology
(HK Dollar)
Ping An Healthcare and
Technology Co Ltd
(HK Dollar)
CSPC Pharmaceutical
Group (HK Dollar)
Market cap
in Billions
52 Week
Low
52 Week
High
Last Price on
25/01/21
$43.2
$10.4
$11.7
$8.7
$45.6
$2.9
$25.1
$52.38
$107.04
$99.02
$54.7
$15.0 $74.5
$14.6 $61.3
$44.6
$17.0 $58.5
$53.8
$9.0 $28.8
$22.4
$9.2 $28.8
$27.2
$22.2 $47.5
$35.6
$27.1 $141.8
$98.1
$11.3 $21.4
$17.90
$56.0 $135.0
$93.30
$6.8 $11.2
$8.27
Buy
8
13
13
8
24
14
8
13
25
39
Hold
Bloomberg Analyst Recommendations
Sell
2
2
1
2
5
5
9
1
0
2
2
0
0
0
0
0
3
0
0
1
Disclaimer: Our services include promotion and introduction of financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should
trade only with the capital you can afford to risk or lose. Before deciding on trading on margin products, you should consider your investment objectives, risk tolerance and your level of experience on these products. Margin products may not
be suitable for everyone, and you should ensure that you understand the risks involved. Century Financial shall not be bound or liable for any transaction, result, gain or loss, in whole or in part.
Kingsoft Cloud Holdings Ltd

4. XPeng
Security name Xpeng Inc - ADR
Buy
8
Hold
2
Sell
2
Analyst rating
The ongoing trend for clean energy has increased inclination towards
green energy and renewable goods and services. With Biden’s win, his
goal of achieving net-zero emission in the power sector by 2035 is the
key focus of the upcoming presidential term. Additionally, China is
already in good momentum since 2016 to develop a clean battery
technology for automotives as a part of their 5-year green initiative plan.
XPeng’s gross margin improved in the third quarter of 2020 reaching
4.6%, driven by improvements in manufacturing productivity. In the
long-term, margins are expected to touch lower teens and ultimately
reach 25-26% by the middle of this decade. The firm does not only owe
its progress to the improvements in the EV sector but in fact to its
cutting-edge level 3 autonomous technology.
The company reportedly had 40% of its employees focused on R&D as
of June 2020 and is set to launch Xpilot 3.0 by 2021. The model has an
inbuilt assisted driving software that has features like autonomous
parking. Increasing R&D efficiency will lead to the official unveiling of the
new models by late 2021 and will contribute to improving economies of
scale. This will provide a competitive edge to XPeng in the Chinese
market that is currently dominated by Tesla, NIO and Li Auto.
In a market with an EV IPO every other day, the new EV competitors are
only talking a good game, whereas Xpeng is in fact showing a surge in
revenues.
52 week low $15.0
52 week high $74.5
Market Cap in Billions $43.2
Shares outstanding
(million) 485.7
Price to sales 31.0x
Average 30 Day volumes 25358878
Forward Price to Sales 12.7x
Forward EV to Sales
Estimated
Revenue Growth %
19.6x
145.3%
Price Chart
Last price on 25th
Jan $54.7
Disclaimer: Our services include promotion and introduction of financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should
trade only with the capital you can afford to risk or lose. Before deciding on trading on margin products, you should consider your investment objectives, risk tolerance and your level of experience on these products. Margin products may not
be suitable for everyone, and you should ensure that you understand the risks involved. Century Financial shall not be bound or liable for any transaction, result, gain or loss, in whole or in part.

5. Dada Nexus Ltd - ADR
Dada Nexus
Buy
13
Hold
2
Sell
0
Analyst rating
Dada Nexus Limited is a Chinese local on-demand retail delivery service.
The firm operates JD-Daojia: China’s largest local on-demand retail
website for brand owners, and Dada Now: an on-demand delivery
platform open to merchants and individual senders across various
industries and sectors. Dada Nexus is constantly investing to enhance its
delivery model, improve operational efficiency and accelerate delivery
experience for every sender on its platform.
With an increase in the work from home culture, the platform experi-
enced a steep increase in number of orders delivered. One billion orders
were delivered in first three quarters of 2020, an increase from 635.5
million deliveries for the same period in 2019.
The third quarter of 2020 was encouraging for the firm financially. Total
net revenues were $200 million, 85% higher than the third quarter of
2019. With a strong Q3 performance, JD-Daojia is the largest retail
platform in the supermarket segment with 24% market share, compared
to 21% in 2019, while Dada Now’s market share risen to 24% from 19% in
a year’s time.
Although China’s economy has been amongst the first to bounce back
from the recession of 2020, the change in mindset amongst individuals
to remain as contactless as possible will continue. This will support the
e-commerce sector and the Dada Nexus platform can thus expect higher
order deliveries henceforth for the foreseeable future.
Price Chart
Security name
52 week low $14.6
52 week high $61.3
Market Cap in Billions $10.4
Shares outstanding
(million) 233.6
Price to sales 33.7x
Average 30 Day volumes 2738531
Forward Price to Sales 8.3x
Forward EV to Sales
Estimated
Revenue Growth %
7.0x
58.2%
Last price on 25th
Jan $44.6
Disclaimer: Our services include promotion and introduction of financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should
trade only with the capital you can afford to risk or lose. Before deciding on trading on margin products, you should consider your investment objectives, risk tolerance and your level of experience on these products. Margin products may not
be suitable for everyone, and you should ensure that you understand the risks involved. Century Financial shall not be bound or liable for any transaction, result, gain or loss, in whole or in part.

6. Kingsoft Cloud Holdings Ltd
Analyst rating
Buy
13
Hold
1
Sell
0
Kingsoft Cloud Holdings Ltd (KC holdings) with a market cap of $9.5bn,
offers cloud platform services consisting of cloud infrastructure,
cutting-edge cloud products and a well-structured industry-specific
solution. The firm’s products include Computing, Networking, Storage &
CDN, Database, Data Analysis and Security.
KC holdings in its recent Q3 2020 results posted a topline of $1.7Bn up
by 14% YoY. Cloud consumption remained strong in 3Q post pandemic
outbreak in China. Public cloud revenue increased by 48% while
Enterprise cloud revenue grew 257% YoY in 3Q. An increasing number
of Chinese companies are adopting a multi-cloud strategy, and Kingsoft
Cloud is a potential beneficiary as the largest independent cloud service
provider in China.
KC holdings being a well architected could company in China from an
industry exposure perspective enables it to capture rising demand
services from the phenomenal success of online video consumption in
China. The vertical cloud strategy being used leads to consistent margin
improvements in contrast to other competitors avoiding negative ROI
investment in non-strategical areas.
The company is expected to grow in the coming years driven by pent-up
demand in digitalization, trend towards cloud-based services and shift in
consumer behavior which has led Enterprise cloud services to gain
strong momentum. Easing industry competition along with improving
operational efficiency is expected to keep the outlook of Kingsoft cloud
holdings positive.
Price Chart
Security name
Kingsoft Cloud
Holdings Ltd
52 week low $17.0
52 week high $58.5
Market Cap in Billions $11.7
Shares outstanding
(million) 218.0
Price to sales 12.3x
Average 30 Day volumes 1708249
Forward Price to Sales 8.1x
Forward EV to Sales
Estimated
Revenue Growth %
6.6x
60.2%
Last price on 25th
Jan $53.8
Disclaimer: Our services include promotion and introduction of financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should
trade only with the capital you can afford to risk or lose. Before deciding on trading on margin products, you should consider your investment objectives, risk tolerance and your level of experience on these products. Margin products may not
be suitable for everyone, and you should ensure that you understand the risks involved. Century Financial shall not be bound or liable for any transaction, result, gain or loss, in whole or in part.

7. Buy
8
Hold
2
Sell
0
Analyst rating
OneConnect Financial Technology
OneConnect (OCFT) is a leading technology-as-a-service platform for
financial institutions in China. The Company's platform provides
cloud-native technology solutions that integrate extensive financial
services industry expertise with market-leading technology.
OCFT is upgrading its services by integrating products and solutions to
provide end-to-end service to better meet the digital transformation
needs of financial institutions, regulators, and the government. The
association will also support small and medium-sized banks to integrate
cloud-to-end services.
China's economy is moving towards a new pattern of development,
digital drivers are expected to be the key sources of income, starting
with the comprehensive transformation of the financial industry. The
industry is rapidly moving to end-to-end transformation, smart innovation
and cloud infrastructure construction.
OCFT is one of China’s largest TaaS player in the financial services
industry and is poised to benefit from higher industry-wide technology
spending. The total addressable market is expected to rise in the
coming years as China’s financial sector undergoes rapid digitalization.
Key growth drivers in the future include the digital shift of personal
banking services, consumers changing preference and the concerted
push by China’s FIs to outsource R&D to increase automation level and
optimize costs.
Price Chart
Security name
OneConnect Financial
Tech Co Ltd ADR
52 week low $9.0
52 week high $28.8
Market Cap in Billions $8.7
Shares outstanding
(million) 390.0
Price to sales 49.3x
Average 30 Day volumes 544119
Forward Price to Sales 12.6x
Forward EV to Sales
Estimated
Revenue Growth %
10.7x
52.1%
Last price on 25th
Jan $22.4
Disclaimer: Our services include promotion and introduction of financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should
trade only with the capital you can afford to risk or lose. Before deciding on trading on margin products, you should consider your investment objectives, risk tolerance and your level of experience on these products. Margin products may not
be suitable for everyone, and you should ensure that you understand the risks involved. Century Financial shall not be bound or liable for any transaction, result, gain or loss, in whole or in part.

8. Buy
24
Hold
5
Sell
0
Analyst rating
Tencent Music Entertainment
Tencent Music Entertainment (TME) is the leading online music entertain-
ment platform in China, operating four highly popular and innovative
music apps in China namely QQ Music, Kugou Music, Kuwo Music and
WeSing. TME's platform comprises online music, online karaoke, and
music-centric live streaming services.
TME's 3Q20 results came above market expectations due to expanding
gross margins. Music subs increased in 3Q20 at 4.6mn net adds. Social
entertainment revenue growth recovered to +13% YoY in 3Q20 due to
both live streaming ARPPU expansion and WeSing ad monetization. The
sequential gross margin improvement can be directly contributed to
content cost efficiency because of fast music subs revenue and ad
revenue growth.
Gross margin improvement is likely a structural phenomenon, as music
services margin improves and ad revenue contribution increases. With
social entertainment revenue growth bottoming out, we believe the
market’s near-term focus will gradually shift from downside risk of social
entertainment to ads monetization potential.
Outlook for TME remains positive due to improving content cost
efficiency and revenue mix shift towards advertisement. Profit realization
from increased prices of online music services will be a competitive
advantage for Tencent music entertainment moving forward.
Price Chart
Security name
Tencent Music
Entertainment
Group - ADR
52 week low $9.2
52 week high $28.8
Market Cap in Billions $45.6
Shares outstanding
(million) 670.7
Price to sales 20.7x
Average 30 Day volumes 10875801
Forward Price to Sales 8.8x
Forward EV to Sales
Estimated
Revenue Growth %
8.2x
21.4%
Last price on 25th
Jan $27.2
Disclaimer: Our services include promotion and introduction of financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should
trade only with the capital you can afford to risk or lose. Before deciding on trading on margin products, you should consider your investment objectives, risk tolerance and your level of experience on these products. Margin products may not
be suitable for everyone, and you should ensure that you understand the risks involved. Century Financial shall not be bound or liable for any transaction, result, gain or loss, in whole or in part.

9. Buy
14
Hold
5
Sell
0
Analyst rating
Baozun Inc.
Baozun Inc. provides e-commerce solutions to brand partners in China. It
assists brands to execute their e-commerce strategies by selling their
goods directly to customers online or by providing services to assist with
their e-commerce operations. Baozun benefits from its strategic partner-
ship with Alibaba, the operator of Tmall platform, in which Baozun has
significant revenue and operational exposure.
Baozun reported 3Q 2020 gross merchandise value of Rmb10.8bn and a
revenue surge of 21.7% YoY. Meanwhile the net profit stood at
Rmb64.6m which surged by 64.2% as compared to last year. Modest
growth momentum was witnessed in FMCG categories while the clothing
category returned to double-digit growth.
Baozun is well positioned to benefit from the ongoing industry consoli-
dation and the rapid expansion in online retail demand as health
concerns reshape mindsets and drive an online shift in consumer
behavior. Shopping festival of 2020 resulted in, the total GMV increase
of 54.8% to Rmb16.5bn and the number of total orders reached 41m
orders up by 35%.
Baozun is a key beneficiary of the rapidly increasing cross-border brand
e-commerce industry, which is one of China’s fastest growing e-com-
merce segment. The outlook for Baozun Inc remains optimistic as the
firm aim to strike a balance between product and service revenues
which could improve gross margins.
Price Chart
Security name Baozun Inc
52 week low $22.2
52 week high $47.5
Market Cap in Billions $2.9
Shares outstanding
(million) 77.7
Price to sales 1.6x
Average 30 Day volumes 1187973
Forward Price to Sales 1.8x
Forward EV to Sales
Estimated
Revenue Growth %
1.5x
30.4%
Last price on 25th
Jan $35.6
Disclaimer: Our services include promotion and introduction of financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should
trade only with the capital you can afford to risk or lose. Before deciding on trading on margin products, you should consider your investment objectives, risk tolerance and your level of experience on these products. Margin products may not
be suitable for everyone, and you should ensure that you understand the risks involved. Century Financial shall not be bound or liable for any transaction, result, gain or loss, in whole or in part.

10. Buy
8
Hold
9
Sell
3
Analyst rating
GSX Techedu Inc.
GSX Techedu Inc. is a remote education company providing after school
classes that covers primary grades, secondary grades, foreign languag-
es and interest course schedules. The firm facilitates the use of latest
technology to improve learning experience.
Due to the pandemic, 2020 has been a stellar year and the company
reported a revenue growth of 51.5% over the 1st three quarters and
recorded a cumulative revenue of $700 million by Q3 2020, a 300%
YOY increase.
In spite of fierce competition, the current return on income (ROI) was 1.3x
(gross billing divided by student acquisition costs) in Q3 2020, much
higher than its peers with a current ROI between 0.5x - 0.8x. With
increasing investments in R&D, the firm aims to continue to enhance its
teaching quality and execution capability to promote long term growth
instead focusing on near term profitability.
China’s online education maintains positive outlook since the virtual
experience in education is here to stay. A strong revenue growth is
expected in 2021 due to the growth in the primary-school sector. The
company is also in talks with Puxin Online School to capitalize on
horizontal synergies, but the agreement has not reached a meaningful
stage yet.
Price Chart
Security name GSX Techedu Inc
52 week high $141.8
Market Cap in Billions $25.1
Shares outstanding
(million) 146.2
Price to sales 17.3x
Average 30 Day volumes 5597593
Forward Price to Sales 14.6x
Forward EV to Sales
Estimated
Revenue Growth %
12.8x
79.5%
Last price on 25th
Jan $98.1
52 week low $27.1
Disclaimer: Our services include promotion and introduction of financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should
trade only with the capital you can afford to risk or lose. Before deciding on trading on margin products, you should consider your investment objectives, risk tolerance and your level of experience on these products. Margin products may not
be suitable for everyone, and you should ensure that you understand the risks involved. Century Financial shall not be bound or liable for any transaction, result, gain or loss, in whole or in part.

11. Buy
13
Hold
1
Sell
0
Analyst rating
TravelSky Technology LTD.
The Hong Kong based company with a market cap of $6.8 billion, mainly
engages in aviation information technology solutions. Its reporting
segments include e-commerce solutions, production services and
related services for aviation alliances.
Although international passenger volume was suppressed throughout
the year, domestic traffic in the civil sector was up by 92% in the latter
half of the year in comparison to the former half.
The group recorded a net profit of $412.44 million in the second half of
2020, showcasing a 71% increase in comparison to the first half of the
year. The firm also incurred revenue boost in the second half of the year
due to the group’s disposal of its 68.39% shareholding in TravelSky
Mobile Technology Limited.
With the mass roll-out of vaccines and better containment of the
COVID-19 virus, the short-term earnings for the firm are expected to
rebound. Being one of the leaders in the global distribution-system
market, the long-term outlook for the company shows potential for
strong growth.
Security name
Travelsky Technology
(HK Dollar)
52 week high $21.4
Market Cap in Billions $52.38
Shares outstanding
(million) 932.6
Price to sales 6.7x
Average 30 Day volumes 2887510
Forward Price to Sales 7.6x
Forward EV to Sales
Estimated
Revenue Growth %
4.6x
39.0%
Last price on 25th
Jan $17.90
Price Chart
52 week low $11.3
Disclaimer: Our services include promotion and introduction of financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should
trade only with the capital you can afford to risk or lose. Before deciding on trading on margin products, you should consider your investment objectives, risk tolerance and your level of experience on these products. Margin products may not
be suitable for everyone, and you should ensure that you understand the risks involved. Century Financial shall not be bound or liable for any transaction, result, gain or loss, in whole or in part.

12. Buy
25
Hold
0
Sell
0
Analyst rating
Ping An Good Doctor
Ping An Good Doctor, previously known as Ping An Healthcare and
Technology, is the largest tech-based health care platform in China. It
provides a portable platform for consultation, hospital referrals and
appointments.
Being an online forum, it has accelerated the co-development and
self-construction of internet hospitals and is expected to gain from the
fostering of internet medical insurance payment policy.
Each sector within the platform is forecasted to have substantial increase
in the gross profits for 2020 compared to 2019. The gross profits for
Online medical services are estimated to surge by 89%, Consumer
medical services by 16%, Health mall by 10% and Health management
and wellness interaction by 18%.
The platform has experienced excellent traffic due to the pandemic
promoted contactless trend. In the first half of 2020, number of active
users shot up to 346 million, core doctors reached 1836 and external
cooperative doctors stood at almost 6000.
The domestic networked medical giant is expected to open a health
industry chain and plans to increase investments in product upgrading in
order to maintain a sustainable long-term growth.
Price Chart
Security name
Ping An Healthcare
and Technology
Co Ltd (HK Dollar)
52 week low $56.0
52 week high $135.0
Market Cap in Billions $107.04
Shares outstanding
(million) 1147.3
Price to sales 14.2x
Average 30 Day volumes 7458897
Forward Price to Sales 12.1x
Forward EV to Sales
Estimated
Revenue Growth %
9.5x
36.2%
Last price on 25th
Jan $93.30
Disclaimer: Our services include promotion and introduction of financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should
trade only with the capital you can afford to risk or lose. Before deciding on trading on margin products, you should consider your investment objectives, risk tolerance and your level of experience on these products. Margin products may not
be suitable for everyone, and you should ensure that you understand the risks involved. Century Financial shall not be bound or liable for any transaction, result, gain or loss, in whole or in part.

13. Buy
39
Hold
2
Sell
1
Analyst rating
CSPC Pharmaceutical Group LTD
CSPC is an investment holding company that manufactures and sells
healthcare products across the globe. Its core operations include
manufacturing genetic drugs, vitamins and medicaments for cancer,
tumor and hypertension. As of June 2020, there were more than 300
drug projects in the pipeline.
As of December 2020, 52% of the shares were held by the top 11
shareholders; 23% of the total being held by the company's CEO:
Dongchen Cai, after he repurchased a whopping $13.3 million worth of
stock. Increasing insider holding is a sign of alignment of objectives
between the management and shareholders.
As of September 2020, the firm experienced increased revenue growth.
Sales of finished drugs reached $2.26 billion (+17.4% YoY) and the
proceeds from drugs associated to blood pressure grew 32.1% on a YoY
basis. In addition to sales, the selling expense-to-revenue ratio for the
month of September 2020 decreased by 0.28ppts reaching 38.3%.
The company has a strong pipeline in place, 15 drugs have a potential
sale of $566 million each. CSPC expects to launch 12 innovative drugs in
between 2022-25, mainly focusing on oncology diseases. Due to
dilution as a result of share dividends, the share target price has been
lowered but the outlook remains optimistic due to favorable financials
and a strong line up of drugs.
Price Chart
Security name
CSPC Pharmaceutical
Group (HK Dollar)
52 week low $6.8
52 week high $11.2
Market Cap in Billions $99.02
Shares outstanding
(million) 11973.8
Price to sales 3.5x
Average 30 Day volumes 77359740
Forward Price to Sales 2.9x
Forward EV to Sales
Estimated
Revenue Growth %
2.5x
15.7
Last price on 25th
Jan $8.27
Disclaimer: Our services include promotion and introduction of financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should
trade only with the capital you can afford to risk or lose. Before deciding on trading on margin products, you should consider your investment objectives, risk tolerance and your level of experience on these products. Margin products may not
be suitable for everyone, and you should ensure that you understand the risks involved. Century Financial shall not be bound or liable for any transaction, result, gain or loss, in whole or in part.

14. Disclaimer: Century Financial Consultancy LLC ("CFC") is Limited Liability Company incorporated under the Laws of UAE and is duly licensed and regulated by the Emirates Securities and
Commodities Authority of UAE (SCA). This document is a marketing material and is for informational purposes only and must not be construed to be an advice to invest or otherwise in any
investment or financial product. CFC does not guarantee as to adequacy, accuracy, completeness or reliability of any information or data contained herein and under no circumstances
whatsoever none of such information or data be construed as an advice or trading strategy or recommendation to deal (Buy/Sell) in any investment or financial product. CFC is not responsible
or liable for any result, gain or loss, based on this information, in whole or in part. Please carefully read full disclosure mentioned below.
PLEASE READ THE FOLLOWING TERMS AND CONDITIONS OF ACCESS FOR THE PUBLICATION BEFORE THE USE THEREOF.
By use of the publication and continuing to access the publication, you accept these terms and conditions and undertake to be bound by the acceptance. CFC reserves the right to amend,
remove, or add to the publication and Disclaimer at any time without any prior notice to you. Such modifications may be effective immediately or otherwise. Accordingly, please continue to
review this Disclaimer whenever accessing, or using the publication. Your access of, and use of the publication, after modifications to the Disclaimer will constitute your acceptance of the
terms and conditions of use of the publication, as modified. If, at any time, you do not wish to accept the content of this Disclaimer, you may not access, or use the publication. Any terms and
conditions proposed by you which are in addition to or which conflict with this Disclaimer are expressly rejected by CFC and shall be of no force or effect.
No information as given herein by CFC in this publication should be construed as an offer, recommendation or solicitation to purchase or dispose of any securities/financial instruments/prod-
ucts or to enter in any transaction or adopt any hedging, trading or investment strategy. The data/information contained in the publication is not designed to initiate or conclude any
transaction. Neither this publication nor anything contained herein shall form the basis of any contract or commitment whatsoever. Distribution of this publication does not oblige CFC to enter
into any transaction. The information in this document is not intended, by itself, to constitute independent, impartial or objective research or a recommendation from CFC and should not be
treated as such.
The content of this publication should not be considered legal, regulatory, credit, tax or accounting advice. Anyone proposing to rely on or use the information contained in the publication
should independently verify and check the accuracy, completeness, reliability and suitability of the information and should obtain independent and specific advice from appropriate
professionals or experts regarding information contained in this publication. CFC cannot be held responsible for the impact of any transactional costs or any taxes as may be applicable on
transactions.
Information contained herein is based on various sources, including but not limited to public information, annual reports and statistical data that CFC considers reliable. However, CFC makes
no representation or warranty as to the accuracy or completeness of any report or statistical data made in or in connection with this publication and accepts no responsibility whatsoever for
any loss or damage caused by any act or omission taken as a result of the information contained in this publication. References to any financial instrument or investment product does not
imply that an actual trading market exists for such instrument or product. In publishing this document CFC is not acting in the capacity of a fiduciary or financial advisor.
The report does not take into account the investment objectives, financial situations and specific needs of recipients. The recipient of this publication must make its own independent
decisions regarding whether this communication and any securities or financial instruments mentioned herein, is appropriate in the light of its investment objectives, investment experience,
financial situation, existing portfolio holdings and/or investment needs. Recipients will need to decide on their own as to whether or not the contents of this document are suitable for them.
This document is a marketing material and has been prepared by individual(s), marketing and/or research personnel of CFC. It has not been prepared in accordance with legal requirements
designed to promote the independence of investment research and as such is purely a marketing communication. In this publication, any opinions, news, research, analysis, prices, or other
information constitute is a general market commentary, and do not constitute the opinion or advice of CFC or any form of personal or investment advice. CFC neither endorses nor guarantees
offerings of third party, nor is CFC responsible for the content, veracity or opinions of third-party speakers, presenters, participants or providers. CFC will not accept liability for any loss or
damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Charts, graphs and related data or information provided in this publication are intended to serve for illustrative purposes only. The information contained in this publication is prepared as of a
particular date and time and will not reflect subsequent changes in the market or changes in any other factors relevant to their determination. All statements as to future matters are not
guaranteed to be accurate. CFC expressly disclaims any obligation to update or revise any forward-looking statements to reflect new information, events or circumstances after the date of
this publication or to reflect the occurrence of unanticipated events.
The information in this communication cannot disclose everything about the nature and risks of the abovementioned data / information. This is not an exhaustive list of the risks involved, nor
should it be regarded as offering advice on the suitability of these investments for the recipient.
All views expressed in all reports, analysis and documents are subject to change without notice. CFC may have issued other reports, analysis or other documents expressing different views
from the contents hereof. Staff members/employees of CFC may provide/present oral or written market commentary or analysis to you that reflect opinions that are contrary to the opinions
expressed in this research and may contain insights and reports that are inconsistent with the views expressed in this publication. Neither CFC nor any of its affiliates, group companies,
directors, employees, agents or representatives assume any liability nor shall they be made liable for any damages whether direct, indirect, special or consequential including loss of revenue
or profits that may arise from or in connection with the use of the information provided in this publication.
Information or data provided by means in this publication may have many inherent limitations, like module errors or lack accuracy in its historical data. Data included in the publication may
rely on models that do not reflect or take into account all potentially significant factors such as market risk, liquidity risk, credit risk etc.
CFC and its affiliates reserve the right to act upon or use the contents hereof at any time, including before its publication herein. The use of our information, products and services should be
on your own due diligence and you agree that CFC is not liable for any failure to achieve desired return on investment that is in any manner related to availing of services or products of CFC
and use of our information, products and services. You acknowledge and agree that past investment performance is not indicative of the future performance results of any investment and
that the information contained herein is not to be used as an indication for the future performance of any investment activity. Any prices provided in this document are indicative only and do
not represent firm quotes as to either price or size. The value of any investment or income may go down as well as up. All investments involve an element of risk, including capital loss.
This publication is being furnished to you solely for your information and neither it nor any part of it may be used, forwarded, disclosed, distributed or delivered to anyone else. You may not
copy, reproduce, display, modify or create derivative works from any data or information contained in this publication. This document may not be published, circulated, reproduced, or
distributed in whole or part to any other person (whether within or in a jurisdiction outside UAE) without the prior written consent of CFC.
Declaration of the Financial Analyst
The analyst(s) who prepared this report certifies that the opinions contained herein accurately and exclusively reflect his or her views. The Analyst further undertakes that he or she has taken
reasonable care to maintain independence and objectivity in respect of the opinions herein. The analyst(s) who wrote this report does not hold securities in the Company mentioned in the
report. The analyst(s) receives a fixed compensation from CFC. No part of his or her compensation was, is, or will be directly or indirectly related to the inclusion of specific recommendations
or views in this report. The business solicitation or marketing departments of CFC are separate and independent from the reporting line of the analyst(s). The analyst(s) confirms that he or she
and his / her associates do not serve as directors or officers of the Company, and the Company or other third parties have not provided or agreed to provide any compensation or other
benefits to the analyst(s) in connection with this report. An “associate” is defined as the spouse, parent or step-parent, or any minor child (natural or adopted) or minor step-child, of the
analyst.
Services offered by CFC include products that are traded on margin and can result in losses that exceed deposits. Before deciding to trade on margin products, you should consider your
investment objectives, risk tolerance and your level of experience on these products. Trading with leverage carries significant risk of losses and as such margin products are not suitable for
every investor and you should ensure that you understand the risks involved and should seek independent advice from professionals or experts if necessary.

information or data in a study or simulation that would not have been known or
available during the period being analyzed. This can lead to inaccurate results
in the study or simulation.
 Future price movements may not be exactly the same as the historical price
movements and this could lead to variation in performance.
 Testing can sometimes lead to over-optimization. This is a condition where
performance results are tuned so high to the past they are no longer as
accurate in the future.

between the expected price of a trade and the price at which the trade is
actually executed.
 Drawdowns in actual trading can be higher than the tested system and losses
could be significant in the event of leverage.
 Unforeseen events can lead to variation in performance from the tested trading
strategy.
 The tested result has been computed with price feeds available from
Bloomberg.
 The testing environment has not considered transaction or any other costs.
 Trading indicators used for the purpose of testing has been provided by
Bloomberg.

Risks & Assumptions

15. Century Financial
Level 6, Building 4,
Emaar Square,
Downtown, Dubai
P.O. Box 65777,
Dubai, United Arab Emirates
Phone: +971 (4) 356 2800
Fax: +971 (4) 355 4630
Email: info@century.ae
www.century.ae
Disclaimer: Our services include financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are
very risky, and you should trade only with the capital you can afford to risk or lose. Before deciding on trading on margin products, you should consider your investment objectives,
risk tolerance and your level of experience on these products. Margin products may not be suitable for everyone, and you should ensure that you understand the risks involved.
Century Financial shall not be bound or liable for any transaction, result, gain or loss, in whole or in part.
Compiled by:
ARUN LESLIE - Chief Market Analyst
DEEPA SACHANANDANI - Senior Research Analyst
Data Source: Bloomberg
Date: 26th Jan, 2021