野村-科技板块全球存储器：初创厂商影响概述（二）-Technology sector Global memory Overview of impact of start-up manufacturers(2)-20260825

GlobalMarketsResearch

Technologysector25August2026

EQUITY:JAPANINDUSTRIALELECTRONICS

Globalmemory

Overviewofimpactofstart-upmanufacturers(2)

ShipmentsatnewChineseNANDproducerYangtzeMemoryTechnologies(YMTC)

recentlyexceededthoseatKioxiaHoldings[285A],andsomeresearchcompanieshavereportedthatYMTChasbecomeoneofthetopthreememoryproducersintheworld.Thishasledtolivelydiscussionsabouttheimpactonmajormemoryproducers.On21August,documentssubmittedforYMTCtobescreenedforlistingwerepublishedontheShanghaiSecuritiesExchangewebsite.Inthisreport,wetakeabrieflookatthecurrentstateof

YMTCanditsimplicationsforotherNANDmanufacturers.

OurconclusionisthatgiventhatYMTCisstillmainlyinvolvedinconsumerproduct

applications,whichaccountforahigherpercentageofwafersales,risesinspotprices

boostedthecompany'ssalesandmarginsbymorethanatitsglobalrivals.However,fromtheperspectiveoftechnologicalcapabilityandproductioncapacity,wethinkitmaybe

catchinguptoaconsiderableextent,anditisimportanttobeawareoftheriskthatglobalNANDmanufacturerscouldlosemarketshareinChinaoverthelongerterm.However,weseenoneedforexcessiveconcernasYMTCisontheentitylistandUShyperscaler

demandforeSSDshasbeenrisingrapidlyrecently.Wealsothinkthatcompanies'focusonhighvalue-addedNANDsolutionscustomizedtospecificcustomerrequirementstoacertainextent,suchassuperhighIOPSSSDsandhighbandwidthflash,isakeystrategyformaintainingcompetitiveadvantageoverthelongterm.

ResearchAnalysts

Japanindustrialelectronics

VirginiaWang-NSC

virginia.wang@+81367031215

MasayaYamasaki,CFA-NSCmasaya.yamasaki@

+81367031190

AsiaTechnology/Memory

CWChung-NIHKcwchung@+85222526075

AsiaTechnology

YJKim,CFA-NFIK

yj.kim1@+82237832332

Scaleofsales:Figure2andFigure3showthatYMTC'ssalesweresmalerthanat

globalNANDproducersthroughJan-Mar2025,butinJan-Mar2026,theyroseto

$6.58bn,slightlyhigherthanatKioxiaHoldings(around$6.47bn),andthegrossmarginimprovedtonearly80%.

ProductmixandASP:NANDflash-relatedproductsaccountedfor96%ofthecompany's

salesinJan-Mar2026,breakingdownas51%NANDflash,36%smartdevices,and10%

SSDs.ThecompanysellsNANDflashmemoryaswafersandbarechips,anditalso

suppliesproductsforitsownsmartdevicesandSSDs.Therefore,thecompanysaysthat

thedisclosedbitshipmentvolumegrowthtendstobelowerthanthecompanywide

average.Thesmartdevicesbusinesssellsembeddedflashmemorycompatiblewith

standardssuchasUFSandeMMC.TheSSDbusinesshandlesbothclientSSDsand

eSSDs,andwethinkmostofthemaineSSDproductsfeaturedincompanymaterials

wereannouncedafterthestartof2026.

WhenwelookatchangesinYMTC'sbitprices,weseethatinJan-Mar2026,NAND

flash-relatedbitpriceswereup173%versusthe2025average,withNANDflashat

+218%,smartdevicesat+128%,andSSDsat+141%.TheriseinNANDflashonalike-for-likebasiswasparticularlylarge,andthecompanymayhavebenefitedfromsoaringspotprices.Overthesameperiod,Samsungwas+124%,SKHynixwas+114%,and

Kioxiawas+118%.ASPtrendsatYMTCsupporttheindustry'smainviewthatASPatYMTCisnotnecessarilylowerthanatglobalrivals,andwethinktheyalsoreflectthestrengthofNANDdemandinChina.

SeeAppendixA-1foranalystcertification,importantdisclosuresandthestatusofnon-USanalysts.

2

Nomura|Technologysector【价值目录5u整gut：2026

eSSDproducts:YMTC'sSSDsalesaccountforonlyaround10%ofitsmainstay

businessesandincludecSSDsforconsumerapplicationsaswellaseSSDs.KeyeSSDproductsincludePE522,PE511,PE501,andSE006.ExcludingtheSATAinterface

SE006,wesurmisethatthethreeotherproductswereallannouncedafterthestartof2026,basedonvariousmediareports.ThemaximumcapacityofQLC-basedPE501is

122.88TB,butKioxia'sLC9(245.76TB)exceedsthat.WhenwecompareKioxia'sCM9serieswithPE522andPE511,whichwillbeusedasbuilt-instorageformostlikelythe

sameservers,itappearstousthatforsomespecs,theyhavecaughtuptothoseof

Kioxia'sproducts.LikeYMTC,Kioxiahasbeenabletointroducehybridbondingaheadofrivals,andwethinkitsBiCS8-basedproductsareamongthebestperformingproductsintheindustry.However,bearinginmindthatKioxia'sCM9seriesofproductswere

announcedaroundoneyearbeforeYMTC'sPE522andPE511,wethinkthattheCM9serieshasaleadintermsoftechnologyaswellasitstrackrecordofadoptionand

relationshipswithcustomers,particularlyineSSDproducts.

Capex:YMTChasbeenaggressivelyincreasingproductioncapacity,buttheratioof

capex(spendingonacquisitionoffixedassetsandintangibleassets,etc)tosaleshasstartedtosettledown,asitwas17%inJan–Mar2026,versus114%in23/12,69%in

24/12,and57%in25/12.However,whilesalesatYMTCareonparwiththoseatKioxia,weestimateYMTC'sJan–Mar2026capexataround¥740.0bnannualized,stillhigherthanKioxia's27/3capexguidanceof¥450.0bn.Somestockmarketparticipantshave

expressedconcernabouttheriskthatincreasedproductioncapacityatlocalChinesemanufacturerscouldcausesupplytoexceeddemandandthatglobalNANDproducerscouldlosemarketshareoverthelongerterm,butwethinkthereislikelytobeeven

greaterdifferentiationbetweenKioxiaHoldingsandlocalChinesemanufacturersgoingforward,duetothefollowingtworeasons:(1)supply–demandconditionsinChinaarelikelyverytight,asevidencedbybitpricesatYMTC,and(2)KioxiaHoldingshasa

strategyofincreasingitsexposuretohighvalue-addedproductscustomizedforspecificcustomerswhilebenefitingfromeconomiesofscaleviaitsJVwithSanDisk.

Fig.1:ComparisonofYMTC'sandKioxia'seSSDproducts

Basedonspecs,YMTChasbeencatchinguptoaconsiderableextent,butKioxiaisaroundoneyearaheadinannouncingproducts

Capacity

(TB)

SequentialRead(MB/s)

SequentialRandomRandomWritereadwrite

(MB/s)(IOPS)(k)(IOPS)(k)

YMTC

PE522

PCIeGen5

3.2

14,200

9,200

3,100

1,000

TLC

6.4

12.8

25.6

14,200

14,200

14,200

11,000

11,500

11,500

3,100

3,100

3,100

1,000

1,200

1,200

PE511

PCIeGen5

3.2

14,000

6,000

3,300

600

TLC

6.4

12.8

14,000

14,000

10,500

10,000

3,300

3,200

900

900

Kioxia

CM9

PCIeGen5

1.6

14,500

3,500

2,050

310

TLC

3.2

6.4

12.8

14,500

14,800

14,800

7,000

10,000

11,000

2,900

3,400

3,400

600

800

800

Note:Forallproducts,weusemixed-usespecs.

Source:Companydata,Nomura

Nomura|Technologysector【价值目录5u整gut：2026

3

Fig.2:EarningsatYMTC

(CNYmn)

FY23

FY24

FY25

FY26Q1

Sales

18,744

45,203

63,185

47,042

Salesatmainbusinesses

18,343

44,847

62,421

46,918

Grossprofits

1,021

14,688

22,303

36,116

(%margin)

5.4%

32.5%

35.3%

76.8%

Grossprofitsatmainbusinesses

989

14,578

21,695

36,028

(%margin)

5.3%

32.2%

34.3%

76.6%

Operatingprofits

-19,126

6,935

14,173

33,527

(%margin)

-

15%

22%

71%

Netprofits

-19,175

6,901

14,230

33,485

(%margin)

-

15%

23%

71%

No.ofemployees

10,804

12,890

15,321

15,422

(%y-y)

+19%

+19%

+1%

OfwhichareR&D-related

2,928

3,508

4,704

4,796

(%Total)

27.1%

27.2%

30.7%

31.1%

R&Dcosts

4,310

4,294

5,585

1,763

(%revenue)

23.0%

9.5%

8.8%

3.7%

Capex

21,316

31,012

36,192

7,870

(%revenue)

114%

69%

57%

17%

Capacityutilization

-

95%

98%

98%

Sales/output

108%

89%

97%

82%

Note:Forcapex,weuseexpendituretoacquireproperty,plant&equipmentandintangiblefixedassetsininvestmentcashflow.

Source:Companydata,Nomura

Fig.3:ComparisonofquarterlysalesatNANDproducers

USD/CNY

6.9

7.3

7.3

7.1

7.2

7.3

7.0

7.3

7.3

7.2

7.1

7.0

6.9

6.9

USD/JPY

132.4

137.3

144.5

147.7

148.6

155.0

152.0

149.0

154.0

145.0

147.0

153.0

155.0

160.0

USD/KRW

1,275.6

1,314.7

1,310.9

1,320.8

1,328.4

1,370.9

1,359.4

1,396.8

1,452.7

1,404.0

1,385.3

1,451.0

1,465.2

1,497.0

FY23Q1

Q2

Q3

Q4

FY24Q1

Q2

Q3

Q4

FY25Q1

Q2

Q3

Q4

FY26Q1

Q2

Localcurrencybased

Samsung(KRWbn)

4,069

3,893

4,166

6,083

7,581

8,984

8,856

8,211

6,683

7,875

9,081

10,820

22,225

37,808

SKHynix(KRWbn)

1,773

2,357

2,431

3,310

4,440

5,069

4,828

4,673

3,139

4,661

4,847

7,314

11,467

19,948

Kioxia(JPYbn)

245

251

241

262

322

428

481

450

347

343

448

544

1,003

1,767

YMTC(CNYmn)

1,868

3,691

4,565

3,977

8,417

10,067

10,358

11,039

9,169

13,532

13,967

19,991

45,238

$based(mn)

Samsung

3,190

2,961

3,178

4,605

5,707

6,553

6,515

5,878

4,600

5,609

6,556

7,457

15,169

25,255

(q-q)

-

-7%

+7%

+45%

+24%

+15%

-1%

-10%

-22%

+22%

+17%

+14%

+103%

+66%

SKHynix

1,390

1,793

1,854

2,506

3,343

3,698

3,552

3,345

2,161

3,320

3,499

5,041

7,827

13,325

(q-q)

-

+29%

+3%

+35%

+33%

+11%

-4%

-6%

-35%

+54%

+5%

+44%

+55%

+70%

Kioxia

1,852

1,829

1,671

1,773

2,168

2,764

3,164

3,020

2,254

2,364

3,050

3,553

6,470

11,044

(q-q)

-

-1%

-9%

+6%

+22%

+28%

+14%

-5%

-25%

+5%

+29%

+16%

+82%

+71%

SanDisk

1,308

1,399

1,533

1,665

1,705

1,760

1,883

1,876

1,695

1,901

2,308

3,025

5,950

8,965

(q-q)

-

+7%

+10%

+9%

+2%

+3%

+7%

-0%

-10%

+12%

+21%

+31%

+97%

+51%

Micron

885

1,013

1,205

1,230

1,567

2,065

2,365

2,241

1,855

2,155

2,252

2,743

4,997

9,943

(q-q)

-

+14%

+19%

+2%

+27%

+32%

+15%

-5%

-17%

+16%

+5%

+22%

+82%

+99%

YMTC

272

537

664

579

1,225

1,465

1,507

1,606

1,334

1,969

2,032

2,908

6,581

-

(q-q)

-

+98%

+24%

-13%

+112%

+20%

+3%

+7%

-17%

+48%

+3%

+43%

+126%

-

Total

8,897

9,532

10,105

12,358

15,714

18,305

18,986

17,967

13,899

17,317

19,697

24,727

46,994

-

(q-q)

-

+7%

+6%

+22%

+27%

+16%

+4%

-5%

-23%

+25%

+14%

+26%

+90%

-

Revenuebasedshare

Samsung

35.9%

31.1%

31.4%

37.3%

36.3%

35.8%

34.3%

32.7%

33.1%

32.4%

33.3%

30.2%

32.3%

-

SKHynix

15.6%

18.8%

18.4%

20.3%

21.3%

20.2%

18.7%

18.6%

15.5%

19.2%

17.8%

20.4%

16.7%

-

Kioxia

20.8%

19.2%

16.5%

14.3%

13.8%

15.1%

16.7%

16.8%

16.2%

13.7%

15.5%

14.4%

13.8%

-

SanDisk

14.7%

14.7%

15.2%

13.5%

10.9%

9.6%

9.9%

10.4%

12.2%

11.0%

11.7%

12.2%

12.7%

-

Micron

9.9%

10.6%

11.9%

10.0%

10.0%

11.3%

12.5%

12.5%

13.3%

12.4%

11.4%

11.1%

10.6%

-

YMTC

3.1%

5.6%

6.6%

4.7%

7.8%

8.0%

7.9%

8.9%

9.6%

11.4%

10.3%

11.8%

14.0%

-

Note:ForSamsungandSKHynix,weuseestimatesandforecastsbyouranalystCWChung,whocoversthesestocks.Novemberyear-endforMicronTechnology,Decemberyear-endfortherest.

Source:Companydata,Nomuraestimates

4

Nomura|Technologysector【价值目录5u整gut：2026

Fig.4:YMTCsales,grossprofits,andKPIs(mainbusinessesonly)

(CNYmn)

FY23

FY24FY25

FY26Q1

Revenue

18,343

44,84762,421

46,918

Byproduct

NANDFlashProducts

14,102

39,88056,660

45,238

NANDFlash

8,976

23,98929,444

23,855

Smartdevice

3,667

12,00721,191

16,668

SSD

1,459

3,8846,025

4,714

Others

4,242

4,9675,762

1,680

Breakdown

NANDFlashProducts

77%

89%91%

96%

NANDFlash

49%

53%47%

51%

Smartdevice

20%

27%34%

36%

SSD

8%

9%10%

10%

Others

23%

11%9%

4%

Revenuey-y

Progressversus

FY25↓

NANDFlashProducts

+183%+42%

80%

NANDFlash

+167%+23%

81%

Smartdevice

+227%+76%

79%

SSD

+166%+55%

78%

Others

+17%+16%

29%

Grossprofit

989

14,57821,695

36,028

Byproduct

NANDFlashProducts

142

13,65620,770

35,618

NANDFlash

55

10,04413,017

20,093

Smartdevice

18

3,0316,321

12,211

SSD

68

5811,431

3,314

Others

847

922925

411

GPM

NANDFlashProducts

1%

34%37%

79%

NANDFlash

1%

42%44%

84%

Smartdevice

1%

25%30%

73%

SSD

5%

15%24%

70%

Others

20%

19%16%

24%

bitshipmenty-y

NANDFlashProducts

+26%+65%

-

NANDFlash

+6%+50%

-

Smartdevice

+73%+92%

-

SSD

+93%+77%

-

bitpricey-y

NANDFlashProducts

+125%-14%

+173%

NANDFlash

+152%-18%

+218%

Smartdevice

+90%-8%

+128%

SSD

+38%-12%

+141%

Byregion

China-Mainland

6,334

22,58724,205

16,611

Others

7,768

17,29332,455

28,627

Breakdown

China-Mainland

45%

57%43%

37%

Others

55%

43%57%

63%

RevenuecontributionfromTop5clients

56%65%52%54%

(forreference)NANDbitshipmenty-y

Samsung

+17%

+11%+4%

-

SKHynix

+17%

-2%+9%

-

Kioxia

+19%+14%

-

(forreference-$based)NANDbitpricey-y

Samsung

-42%

+60%-6%

+124%

SKHynix

-45%

+87%-7%

+114%

Kioxia

+31%-11%

+118%

Note:BitshipmentandbitpricefiguresforSamsungandSKHynixareestimatesbyCWChung,amemberoftheNomuraAsiatechteam.ChangeinASPinFY26Q1calculatedusingASPforFY25.HongKong,Macau,andTaiwanaccountformajorityofsalesto

regionsotherthanmainlandChina.

Source:Companydata,Nomura

Fig.5:COGSratioatYMTC(mainbusinessesonly)

(CNYmn)

FY23

FY24

FY25

FY26Q1

COGS

13,960

26,224

35,890

9,620

Directmaterialcosts

7,115

6,104

8,098

2,216

Directlaborcosts

1,406

1,346

1,711

485

Productioncosts

19,219

20,360

26,484

6,928

Reversalsfrominventoryvaluationlossreserves

-13,780

-1,585

-403

-8

COGSexcludinginventoryvaluationlossreservereversals

27,740

27,810

36,292

9,629

As%ofsales

151%

62%

58%

21%

Majorcost

Purchasesofrawmaterials

9,008

12,217

16,228

5,366

Parts

3,693

5,950

8,406

3,165

Chemicals

1,520

1,971

2,450

690

Wafers

1,503

1,436

1,845

426

Photoresists

1,017

1,366

1,623

421

Gas

850

878

984

377

Targetmaterials

109

178

204

77

Other

316

437

716

210

Energyprocurement

1,923

2,124

2,494

665

Water

31

39

43

10

Electricity

1,892

2,085

2,451

655

Costbreakdown(as%ofCOGS)

Purchasesofrawmaterials

65%

47%

45%

56%

Parts

26%

23%

23%

33%

Chemicals

11%

8%

7%

7%

Wafers

11%

5%

5%

4%

Photoresists

7%

5%

5%

4%

Gas

6%

3%

3%

4%

Targetmaterials

1%

1%

1%

1%

Other

2%

2%

2%

2%

Energyprocurement

14%

8%

7%

7%

Source:Companydata,Nomura

Nomura|Technologysector【价值目录5u整gut：2026

5

AppendixA-1

ThisreporthasbeenproducedbyNomuraSecuritiesCo.,Ltd.(NSC),Japan.

SeeDisclaimersforNomuraGroupentitydetails.

AnalystCertification

We,VirginiaWang,MasayaYamasaki,CWChungandYJKim,herebycertify(1)thattheviewsexpressedinthisResearchreportaccuratelyreflectourpersonalviewsaboutanyorallofthesubjectsecuritiesorissuersreferredtointhisResearchreport,(2)nopartofourcompensationwas,isorwillbedirectlyorindirectlyrelatedtothespecificrecommendationsorviewsexpressedinthisResearchreportand(3)nopartofourcompensationistiedtoanyspecificinvestmentbankingtransactionsperformedbyNomuraSecuritiesInternational,Inc.,NomuraInternationalplcoranyotherNomuraGroupcompany.

ImportantDisclosures

ThelistsofissuersthatareaffiliatesorsubsidiariesofNomuraHoldingsInc.,theparentcompanyofNomuraSecuritiesCo.,Ltd.,issuersthathaveofficerswhoconcurrentlyserveasofficersofNomuraSecuritiesCo.,Ltd.,issuersinwhichtheNomuraGroupholds1%ormoreofanyclassofcommonequitysecuritiesandissuersforwhichNomuraSecuritiesCo.,Ltd.hasleadmanagedapublicofferingofequityorequitylinkedsecuritiesinthepast12monthsareavailableat

/report/.PleasecontacttheResearchProduction

OperationDept.ofNomuraSecuritiesCo.

,Ltd.foradditionalinformation.

Onlineavailabilityofresearchandconflict-of-interestdisclosures

NomuraGroupresearchisavailableon

/research,Bloomberg,CapitalIQ,Factset,LSEG.

Importantdisclosuresmaybereadat

/research/m/DisclosuresorrequestedfromNomuraSecuritiesInternational,Inc.

Ifyouhaveanydifficultieswiththewebsite

,pleaseemailgrpsupport@forhelp.

Theanalystsresponsibleforpreparingthisreporthavereceivedcompensationbaseduponvariousfactorsincludingthefirm'stotalrevenues,aportionofwhichisgeneratedbyInvestmentBankingactivities.Unlessotherwisenoted,thenon-USanalystslistedatthefrontofthisreportarenotregistered/qualifiedasresearchanalystsunderFINRArules,maynotbeassociatedpersonsofNSI,andmaynotbesubjecttoFINRARule2241restrictionsoncommunicationswithcoveredcompanies,publicappearances,andtradingsecuritiesheldbyaresearchanalystaccount.

NomuraGlobalFinancialProductsInc.(NGFP)NomuraDerivativeProductsInc.(NDP)andNomuraInternationalplc.(NIplc)areregisteredwiththeCommoditiesFuturesTradingCommissionandtheNationalFuturesAssociation(NFA)asswapdealers.NGFP,NDPI,andNIplcare

generallyengagedinthetradingofswapsandotherderivativeproducts,anyofwhichmaybethesubjectofthisreport.

Distributionofratings(NomuraGroup)

ThedistributionofallratingspublishedbyNomuraGroupGlobalEquityResearchisasfollows:

58%havebeenassignedaBuyratingwhich,forpurposesofmandatorydisclosures,areclassifiedasaBuyrating;33%ofcompanieswiththisratingareinvestmentbankingclientsoftheNomuraGroup*.0%ofcompanies(whichareadmittedtotradingonaregulatedmarketintheEEA)withthisratingweresuppliedmaterialservices**bytheNomuraGroup.

39%havebeenassignedaNeutralratingwhich,forpurposesofmandatorydisclosures,isclassifiedasaHoldrating;57%ofcompanieswiththisratingareinvestmentbankingclientsoftheNomuraGroup*.0%ofcompanies(whichareadmittedtotradingonaregulatedmarketintheEEA)withthisratingweresuppliedmaterialservicesbytheNomuraGroup

3%havebeenassignedaReduceratingwhich,forpurposesofmandatorydisclosures,areclassifiedasaSellrating;15%ofcompanieswiththisratingareinvestmentbankingclientsoftheNomuraGroup*.0%ofcompanies(whichareadmittedtotradingonaregulatedmarketintheEEA)withthisratingweresuppliedmaterialservicesbytheNomuraGroup.

Asat30June2026.

*TheNomuraGroupasdefinedintheDisclaimersectionattheendofthisreport.

**AsdefinedbytheEUMarketAbuseRegulation

DefinitionofNomuraGroup'sequityresearchratingsystemandsectors

Theratingsystemisarelativesystem,indicatingexpectedperformanceagainstaspecificbenchmarkidentifiedforeachindividualstock,

subjecttolimitedmanagementdiscretion.Ananalyst’stargetpriceisanassessmentofthecurrentintrinsicfairvalueofthestockbasedonanappropriatevaluationmethodologydeterminedbytheanalyst.Valuationmethodologiesinclude,butarenotlimitedto,discountedcashflow

analysis,expectedreturnonequityandmultipleanalysis.Analystsmayalsoindicateexpectedabsoluteupside/downsiderelativetothestatedtargetprice,definedas(targetprice-currentprice)/currentprice.

STOCKS

Aratingof'Buy',indicatesthattheanalystexpectsthestocktooutperformtheBenchmarkoverthenext12months.Aratingof'Neutral',

indicatesthattheanalystexpectsthestocktoperforminlinewiththeBenchmarkoverthenext12months.Aratingof'Reduce',indicatesthat

6

Nomura|Technologysector【价值目录5u整gut：2026

theanalystexpectsthestocktounderperformtheBenchmarkoverthenext12months.Aratingof'Suspended',indicatesthattherating,targetpriceandestimateshavebeensuspendedtemporarilytocomplywithapplicableregulationsand/orfirmpolicies.Securitiesand/orcompaniesthatarelabelledas'Notrated'orshownas'Norating'arenotinregularresearchcoverage.Investorsshouldnotexpectcontinuingor

additionalinformationfromNomurarelatingtosuchsecuritiesand/orcompanies.Benchmarksareasfollows:UnitedStates/Europe/Asiaex-Japan:pleaseseevaluationmethodologiesforexplanationsofrelevantbenchmarksforstocks,whichcanbeaccessedat:

/research/m/Disclosures;GlobalEmergingMarkets(ex-Asia):MSCIEmergingMarketsex-Asia,unlessotherwise

statedinthevaluationmethodology

;Japan:Russell/NomuraLargeCap.

SECTORS

A'Bullish'stance,indicatesthattheanalystexpectsthesectortooutperformtheBenchmarkduringthenext12months.A'Neutral'stance,

indicatesthattheanalystexpectsthesectortoperforminlinewiththeBenchmarkduringthenext12months.A'Bearish'stance,indicatesthattheanalystexpectsthesectortounderperformtheBenchmarkduringthenext12months.Sectorsthatarelabelledas'Notrated'orshownas'N/A'arenotassignedratings.Benchmarksareasfollows:UnitedStates:S&P500;Europe:DowJonesSTOXX600;GlobalEmerging

Markets(ex-Asia):MSCIEmergingMarketsex-Asia.Japan/Asiaex-Japan:Sectorratingsarenotassigned.

TargetPrice

ATargetPrice,ifdiscussed,indicatestheanalyst’sforecastforthesharepricewitha12-monthtimehorizon,reflectinginparttheanalyst's

estimatesforthecompany'searnings.Theachievementofanytargetpricemaybeimpededbygeneralmarketandmacroeconomictrends,andbyotherrisksrelatedtothecompanyorthemarket,andmaynotoccurifthecompany'searningsdifferfromestimates.

Disclaimers

ThispublicationcontainsmaterialthathasbeenpreparedbytheNomuraGroupentityidentifiedonpage1and,ifapplicable,withthe

contributionsofoneormoreNomuraGroupentitieswhoseemployeesandtheirrespectiveaffiliationsarespecifiedonpage1oridentified

elsewhereinthispublication.Theterm"NomuraGroup"usedhereinreferstoNomuraHoldings,Inc.anditsaffiliatesandsubsidiariesincluding:

(a)NomuraSecuritiesCo.,Ltd.('NSC')Tokyo,Japan,(b)NomuraFinancialProductsEuropeGmbH(‘NFPE’),Germany,(c)Nomura

Internationalplc('NIplc'),UK,(d)NomuraSecuritiesInternational,Inc.('NSI'),NewYork,US,(e)NomuraInternational(HongKong)Ltd.

(‘NIHK’),HongKong,(f)NomuraFinancialInvestment(Korea)Co.,Ltd.(‘NFIK’),Korea(InformationonNomuraanalystsregisteredwiththe

KoreaFinancialInvestmentAssociation('KOFIA')canbefoundontheKOFIAIntranetat

http://dis.kofia.or.kr

,(g)NomuraSingaporeLtd.(‘NSL’),Singapore(Registrationnumber197201440E,regulatedbytheMonetaryAuthorityofSingapore)(h)NomuraAustraliaLtd.(‘NAL’),Australia

(ABN48003032513),regulatedbytheAustralianSecuritiesandInvestmentCommission('ASIC')andholderofanAustralianfinancialserviceslicencenumber246412,(i)NomuraSecuritiesMalaysiaSdn.Bhd.(‘NSM’),Malaysia,(j)NIHK,TaipeiBranch(‘NITB’),Taiwan,(k)Nomura

FinancialAdvisoryandSecurities(India)PrivateLimited(‘NFASL’),Mumbai,India(RegisteredAddress:CeejayHouse,Level11,PlotF,ShivsagarEstate,Dr.AnnieBesantRoad,Worli,Mumbai-400018,India;Tel:912240374037,Fax:912240374111;CINNo:

69116,SEBIRegistrationNo.forStockBrokingactivities:INZ000255633;SEBIRegistrationNo.forMerchantBanking:

INM000011419;SEBIRegistrationNo.forResearch:INH000001014-ComplianceOfficer:Ms.PratikshaTondwalkar,912240374904,grievanceemail:esra@Webpage:LINK

ForreportswithrespecttoIndianpubliccompaniesorauthoredbyIndia-basedNFASLresearchanalysts:(i)

Investmentinsecuritiesmarketsissubjecttomarketrisks.Readalltherelateddocumentscarefullybefore

investing.(ii)RegistrationgrantedbySEBI,andcertificationfromNISMinnowayguaranteeperformanceoftheintermediaryorprovideanyassuranceofreturnstoinvestors.(iii)NFASLtermsandconditionsforavailing

researchservicesisdisclosedonNFASLwebpage.

(l)NomuraFiduciaryResearch&ConsultingCo.,Ltd.('NFRC')Tokyo,Japan.(m)NomuraOrientInternationalSecuritiesCo.,Ltd(“NOI”),isamajorityownedjointventureamongstNomuraGroup,OrientInternational(Holding)Co.,Ltd,andShanghaiHuangpuInvestmentHolding

(Group)Co.,Ltd.InaccordancewiththelawsofthePeople’sRepublicofChina(“PRC”,excludingHongKong,MacauandTaiwan,forthe

purposeofthisdocument),NOIislicensedinthePRCtoprovidesecuritiesresearchandinvestmentrecommendationsanditoperates

independentlyfromtheothermembersoftheNomuraGroup;inparticular,NOI’sinterestsinPRCsecuritiesarenotdisclosedto,oraggregatedwiththeholdingsof,anyotherNomuraGroupentitiesandtheinterestsinPRCsecuritiesofotherNomuraGroupentitiesarenotdisclosedto,oraggregatedwiththeholdingsof,NOI.AnindividualnameprintednexttoNOIonthefrontpageofaresearchreportindicatesthatindividualisemployedbyNOItoprovideresearchassistancetoNIHKunderaresearchpartnershipagreement.‘NSFSPL’nexttoanemployee’snameonthefrontpageofaresearchreportindicatesthattheindividualisemployedbyNomuraStructuredFinanceServicesPrivateLimitedtoprovideassistancetocertainNomuraentitiesunderinter-companyagreements.'Verdhana'nexttoanindividual'snameonthefrontpageofaresearchreportindicatesthattheindividualisemployedbyPTVerdhanaSekuritasIndonesia('Verdhana')toprovideresearchassistancetoNIHKunderaresearchpartnershipagreementandneitherVerdhananorsuchindividualislicensedoutsideofIndonesia.

THISMATERIALIS:(I)FORYOURPRIVATEINFORMATION,ANDWEARENOTSOLICITINGANYACTIONBASEDUPONIT;(II)NOTTOBECONSTRUEDASANOFFERTOSELLORASOLICITATIONOFANOFFERTOBUYANYSECURITIESINANYJURISDICTIONWHERESUCHOFFERORSOLICITATIONWOULDBEILLEGAL;AND(III)OTHERTHANDISCLOSURESRELATINGTOTHENOMURAGROUP,

BASEDUPONINFORMATIONFROMSOURCESTHATWECONSIDERRELIABLE,BUTHASNOTBEENINDEPENDENTLYVERIFIEDBYNOMURAGROUP.

OtherthandisclosuresrelatingtotheNomuraGroup,theNomuraGroupdoesnotwarrant,representorundertake,expressorimplied,thatthedocumentisfair,accurate,complete,correct,reliableorfitforany