Alpha-Win Company Research Report
CUBE SYSTEM INC.
(2335 TSE First Section)

Issued: 8/3/2020

Alpha-Win Capital Inc. Research Department
http://www.awincap.com/● Summary◆ Independent, mid-tier system integrator with long-term, stable growth・CUBE SYSTEM INC. (hereinafter, the “Company”) is an independent, mid-tier system integrator listed on theFirst Section of the TSE. Its main customers include Nomura Research Institute (NRI) and Fujitsu Group. It
develops systems and provides services mainly for the finance, distribution, and telecommunications industries. Its
strengths are its excellent customer base, extensive experience, strong trust from its customers, and the skill andexpertise that it has built up over the years. Founded in 1972, it has 48 years of history.
・With the exception of one fiscal year, the Company has been continuously increasing sales YoY for the past 22
years. During this period, its annual sales growth rate (simple average of the rate of increase in sales) was +7.0%
and its annual recurring profit growth rate (simple average) was +8.3%; it has been steadily expanding its businessand keeping its business in the black over many years. The recurring margin has been stable at around 7% and theincrease in sales has been contributing directly to increases in profit, dividend, and market capitalization. Under
the new president, the Company will also expand its business in the area of digitalization starting this fiscal year.

◆ This FY’s Q1 Results: sales slightly fell by 0.2% YoY, but operating profit grewsignificantly by 141.3% YoY since no unprofitable project was posted and cost reduction
was effective. Small COVID-19 impact but a decline in the amount of orders received.
・In the first quarter of FY 2021 (April-June 2020; hereinafter “Q1”; note that the Company’s fiscal year is Marchending, so FY 2021 ends in March 2021), sales were Y3,373 million (-0.2% YoY), operating profit was Y242
million (+141.3% YoY), recurring profit was Y248 million (+130.8% YoY), and quarterly profit attributable toowners of the parent (hereinafter “net profit”) was Y165 million (+229.3% YoY) (Figures 1-3). Although sales had
stayed about the same, the profits increased significantly since no unprofitable projects were posted like in Q1 ofthe previous fiscal year and cost control had been strengthened, for instance, by reducing business trip expenses in
response to the COVID-19 crisis. Operating, recurring, and net profit all reached their Q1 record highs (previous
record high: Q1 FY 2016). Gross margin increased from 15.5% in the previous Q1 to 19.1% this Q1. Operating
margin increased by approximately 4.4 points from 3.0% to 7.4% in the same order (Figure 4). The achieved sales
seem to have been in line with the Company’s plan (not disclosed), while the profits were greater than expected.
Q1 Results
Unit: million yen(Note) All figures wereprepared by Alpha-Win
Research Dept. based on thefinancial results summary
and financial results
supplemental briefing
materials. Due to thecalculation process, values
for the same item mayslightly differ.

Consolidated Sales
Sales

Gross Profit

Gross Margin (%)

Sales

By Industry[Figure 1] Transition in Q1
Financial Performance

By Service Category

Total

Gross Profit

Gross Margin (%)

Total

Name of Service/Industry

System Integration: SIS
System Outsourcing: SOS
Professional: ProS
System Integration: SIS
System Outsourcing: SOS
Professional: ProS
System Integration: SIS
System Outsourcing: SOS
Professional: ProS

Finance
Distribution
Telecommuications
Manufacturing (other)Government (other)
Other (other)
Finance
Distribution
Telecommuications
Manufacturing (other)Government (other)
Other (other)
Finance
Distribution
Telecommuications
Manufacturing (other)Government (other)
Other (other)

Total Gross Profit

Gross Margin (%)
SG&A Expenses

SG&A Expenses Ratio (%)
Operating Profit

O.P. Margin (%)
Recurring Profit

R.P. Margin (%)
Net Profit

N.P. Margin (%)

Short Report

Q1 FY 2020
Apr-June 2019

3,379
2,411
520
447
354
95
73
14.7
18.4
16.5
993
771
485
396
245
486
181
122
74
45
34
66
18.2
15.9
15.2
11.6
14.1
13.6
524
15.5
424
12.5
100
3.0
107
3.2
50
1.5

Q1 FY 2021
Apr-June 2020

3,373
2,311
506
555
437
82
123
18.9
16.3
22.2
989
675
592
329
182
603
191
123
141
56
24
105
19.3
18.3
23.9
17.1
13.6
17.4
643
19.1
401
11.9
242
7.2
248
7.4
166
4.9

% Change Change in Amount / Diff. % of Total Change % of Total Company Plan for FY 2021 % Change
YoY: %
YoY: million yen / %%%Apr 2020 - Mar 2021
YoY: %

-0.2
-4.1
-2.8
24.1
23.2
-13.6
66.9

-0.4
-12.5
21.9
-16.9
-25.6
24.2
5.7
0.8
91.4
22.7
-28.0
58.7

22.7
-5.4
-8.8
-19.0
-34.2

-6
-100
-14
108
83
-13
50
4.2
-2.1
5.7
-4
-96
107
-67
-63
117
10
1
67
11
-10
39
1.1
2.4
8.7
5.5
-0.5
3.8
119
3.6
-23
-0.7
142
4.2
141
4.2
116
3.4

100.0

16,000

8.8

70.3
-11.0
42.4

100.0
68.4
15.0
16.4
83.4
15.6
23.5

4,838
3,315
1,965

8
-1.3
4.5

5,882

17.9

8.4
0.8
56.4
9.3
-8.4
32.8

29.3
20.0
17.6
9.8
5.4
17.9
29.8
19.2
22.0
8.7
3.7
16.4

-

-

1,090
7.0
1,090
7.0
684
4.3

18.3

1/6

This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

13.6
14.6

Alpha-Win Company Research Report
CUBE SYSTEM INC. (2335 TSE First Section)

Issued: 8/3/2020[Figure 2] Quarterly Change in Sales[Figure 3] Quarterly Change in O.P.

(unit: million yen)(unit: million yen)

4,500

[Figure 4] Quarterly Change in O.P. Margin(unit: %)
12.0%

450

4,000

400

3,500

10.0%

350

3,000

8.0%

300

2,500

250

6.0%

2,000

200

1,500

4.0%

150

1,000

100

500

2.0%

50

0
FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

0.0%

FY 20210
FY 2014Q1Q2Q3FY 2015Q4FY 2016

FY 2017

FY 2018

Q1

Q3

Q2

FY 2019

FY 2020

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

FY 2021

Q1

Q4

Q2

Q3

Q4

FY

(Note) In Figures 2-4, values for Q1 FY 2021 are actual results and full-year (FY) values for FY 2021 are based on the Company’s forecast.

・Overall, sales declined by Y9 million YoY and gross profit increased by Y118 million YoY.
・Q1 results by service category (three categories) are as follows.
・Sales of its core business, or the System Integration Service (SIS), decreased by Y99 million (-4.1% YoY). Systemdevelopment projects for delivery service companies in the transportation industry and for education businesscompanies had grown. However, since system development projects for construction machinery manufacturers in
the manufacturing industry became finished and projects for the distribution industry and system development
projects for online banking services in the finance industry became reduced, overall sales of this category decreased.
This Q1, though, there were no unprofitable projects posted like in Q1 of the previous fiscal year, so the grossprofit increased by Y82 million (+23.2% YoY) to Y437 million.
・As projects outsourced from the distribution industry became reduced, sales of the System Outsourcing Service(SOS) decreased by Y14 million (-2.8% YoY) to Y506 million and its gross profit declined by Y13 million (13.6% YoY) to Y82 million.
・Thanks to the expansion of system development projects for telecom carriers and group banks of major distribution
companies, as well as the solid progress of the consulting business, sales of the Professional Service (ProS)
increased by Y107 million (+24.1% YoY) to Y555 million and its gross profit increased by Y49 million (+66.9%
YoY) to Y123 million.
・Sales by industry (four sectors) are mostly as described above; sales only increased for the telecommunications
and transportation industries (Figure 1). Sales for the finance industry and other industries declined only slightly,
but sales for the distribution industry declined at a double-digit rate due to the completion of projects related tochanges in the consumption tax. However, profit grew for all industries mainly due to cost reduction and profit
improvement measures.
・Figure 5 shows the factors that helped increase or decrease operating profit this Q1. While sales had stayed about
the same, profit grew especially due to improvements in the profitability of the existing businesses, elimination of
unprofitable projects, and cost control. Non-operating profit/loss was about the same as last fiscal year’s Q1, andthere was no extraordinary profit/loss. As a result, net profit increased threefold.
[Figure 5] Factors that Increased/Decreased Operating Profit in Q1

Rise in profit from businessexpansion and improvement in
the earning capacity of theexisting businesses

Reducedexpenses by
optimizing
resources(unit: million yen)In response to the COVID-19 crisis,conducted investments for the newnormal and related expenses held
down

Eliminatedunprofitableprojects
Increase in
R&D
investments,
etc.

+44

242

+40

+14
+50
-6

100

FY 2020
Q1 (Apr-June 2019)+141 million yen YoY

FY 2021
Q1 (Apr-June 2020)(Note) Financial results supplemental briefing materials; partially edited and modified.

Short Report

2/6This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
CUBE SYSTEM INC. (2335 TSE First Section)

Issued: 8/3/2020

・In the Company's business model, sales growth is generally directly correlated with the number of employees.
The total number of employees in Japan and overseas has been increasing from 707 in June 2017 (end of month)→ 745 in June 2018 (+38; +5.4%) → 766 in June 2019 (+21; +2.8%) → 799 in June 2020 (+33; +4.3%). The
future impact of COVID-19 remains uncertain, but since system development demand from potential customers
continues to be strong (non-face-to-face, DX businesses such as those related to remote work, EC, and AI), theCompany is somewhat short of staff. It is working on strengthening recruitment through web interviews and othermeans, as well as improving per-person productivity such as sales and operating profit per person.
・There has been no significant changes in the balance sheet as of the end of Q1. It has ample liquidity on hand,with Y3.7 billion in cash and deposits (equivalent to 2.8 months of average monthly sales; essentially debt-less).
Its financial standing is also firm, with an equity ratio of 70.8%.

◆ No change to the full-year forecast made at the beginning of the FY: sales +8.8% anddouble-digit profit growth. Also, no change to the plan to pay Y18 in dividend.
・The Company has not made changes to its full-year forecast announced at the beginning of the fiscal year thatsales will be Y16,000 million (+8.8% YoY), operating profit will be Y1,120 million (+16.8% YoY), net profit willbe Y700 million (+33.3% YoY), and dividend will be Y18 per share. Like the previous fiscal year, it expects toachieve sales and profit growth again this fiscal year. In fact, it plans to achieve record-high sales for anotherconsecutive year as well as record-high profits. It will also aim again to achieve Y1 billion each in operating andrecurring profit for the first time (it had aimed to achieve this goal last fiscal year too but was unsuccessful).
・Q1’s progress rate in terms of the Company’s full-year forecast was 21.1% for sales (last Q1: 23.0%) and 21.6%
for operating profit (last Q1: 10.4%). The simple average of the progress rate in Q1 over the past seven years
including the previous fiscal year is 22.6% for sales and 13.9% for operating profit, so this fiscal year’s Q1 progress
rate for operating profit is higher than the recent years’ average. It should be noted that seasonal fluctuations areseen on a quarterly basis, and in recent years, the fourth quarter (Q4: January-March) has contributed the most to
the full-year financial results (the quarter’s average percent of sales over the total for those seven years is 28.0%;
35.4% for operating profit). The second quarter (Q2: July-September) has been the second largest in contribution(26.2% and 27.6%, in the same order), followed by the third quarter (Q3: October-December) (23.3% and 23.0%).
Q1 contribution has always been the smallest. When we subtract this Q1’s results from the Company’s full-year
forecast, we can see that in the remaining nine months (Q2-Q4), the Company expects sales of Y12,627 million(+11.5% YoY), an operating profit of Y878 million (+2.2% YoY), and operating margin to worsen from 7.6% in
the same period of the previous fiscal year to 7.0%.
・Alpha Win Research Department took into account the impact of COVID-19 and made a slightly more cautious
full-year forecast than the Company. The Company has been strengthening sales activities toward its main clients,
expanding its existing businesses, and developing new domains and areas. However, due to the COVID-19 crisis,
sales activities have been stalled especially for new negotiations and some of its corporate customers have been
starting to reduce their IT investments due to worsened financial performance. Consequently, in Q1, the amount oforders received and the order backlog decreased by about 8.3% and 6.1% YoY, respectively. Therefore, since July,
the Company has been working on strengthening its sales activities while taking into account the COVID-19 impact(decentralized/non-contact business operation through the use of digital technology, combined with face-to-facesales) and focusing on approaching customers who are actively conducting strategic IT investments.
・However, if the impact of COVID-19 is prolonged, the profit forecast for this fiscal year and onward may need tobe revised. It will be important to carefully assess the change in the amount of orders received and in the profit
margins in Q2 and onward. The Company has been strengthening its project management, so the effect ofpreventive measures against unprofitable projects will also be key.
・Alpha-Win Research Department has not changed the evaluation of the Company for the medium- to long-term
period. We believe that the Company’s users will eventually increase their IT investment as they adapt to thechanges in the world with and after COVID-19 by developing new business models, strengthening their competitive
advantage, fixing HR shortages, streamlining and speeding up operations, and conducting DX. Therefore, theCompany has a large growth potential. If the economic environment settles down, we believe that the Company
will be able to stably increase its sales and profit at 8-10% per year through the expansion of the Enhancementbusiness, new customer development, development of new or overseas businesses, and improvement of
productivity through various measures.
Short Report

3/6This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
CUBE SYSTEM INC. (2335 TSE First Section)

Issued: 8/3/2020◆ The Company’s Response to COVID-19
・The Company has launched four task forces headed by the president in order to optimize working styles for thepost COVID-19 world and the new normal. The purpose is to create a new way of working where each employee
can work from their most suitable location in terms of the characteristics of their jobs as well as their abilities.
Currently, through the remote work system, more than 50% of its employees work from home.
・The four task forces are as follows (excerpt from the financial results supplemental briefing materials).
1. Office Environment: improve working environment and tools
2. Internal Operation Processes: thorough review and digitalization of operation processes
3. Project Execution Environment: create a selling style that is new but still reflects CUBE SYSTEM’s
strengths and uniqueness
4. Management of Corporate Rules: improve regulations and guidelines◆ Stock price and characteristics: domestic-demand-related, stable growth stock that has
been significantly outperforming the TOPIX over the long term. Average valuation.
・Over the past ten years or so, thanks to its solid financial performance, the Company’s stock price has increased
by about four times and has been significantly outperforming the TOPIX. It has also been outperforming the TOPIX
and its competitors (HIMACS and Toho System Science; Figure 6) over the past 12 months, but its valuation isabout average and does not seem expensive compared to its competitors. Currently, many companies listed on theFirst Section of the TSE have not disclosed their forecast for this fiscal year, so they cannot be feasibly used as arepresentation of the entire market in the valuation comparison.
・Upon the announcement of Q1 results, major companies that had previously not disclosed their full-year forecasts
have been starting to announce this fiscal year’s forecasts, such as large profit declines, massive net losses, andreduced or zero dividend. In contrast, the Company continues to expect a sales growth and a double-digit profit
growth this fiscal year as well and has become highly evaluated as a domestic-demand-related, defensive, andstable growth stock. These may be some of the reasons why its stock price has been solid.
・Over the short term, the stock price will likely be affected by how the COVID-19 crisis will settle down and by
the quarterly trend in the amount of orders received and in the overall financial performance starting in Q2. Overthe medium term, it may also be affected by the following factors: changes in its operating margin and operating
profit growth rate starting next fiscal year; progress with new technologies and areas such as DX and theircontribution to financial performance; shareholder return (dividend hike, share buyback, and stock split); and thefinancial performance and IT investment trends of Japanese companies – its end users. Going forward, if theCompany can show a steady profit growth close to a double-digit rate, its stock price may possibly rise further.
[Figure 6] Comparison of Valuation with Its Competitors
Company Name
Code
Stock Price (at 7/31 closing)Market Cap (million yen)
P/E (price-to-earnings ratio)
P/B (price-to-book ratio)
Dividend Yield (%)
EV/EBITDA
P/S (price-to-sales ratio)

CUBE SYSTEM(CS: consolidated)

HIMACS(HM: consolidated)Toho System Science(TS: non-consolidated)

2335

4299

4333

943
14,409
18.3
2.3
1.9
10.6
0.9

1,928
11,966
18.4
1.2
2.6
6.0
0.8

945
13,103
18.1
1.6
2.6
5.5
1.1

Market cap= (shares outstanding) x (market share price [at 7/31/2020 closing])
The companies' planned EPS and dividend values for FY 2021 were used in all P/E and dividend yield calculations.
Actual BPS values of Q1 FY 2021 were used in P/B calculations.
EV/EBITDA=(market cap + interest bearing debt - cash&deposits)/(O.P. + depreciation + intangible fixed asset amortization)*Values for interest-bearing debt and cash & deposits are actual values from Q1 FY 2021.
P/S=market cap / sales [the companies' forecasts for FY 2021](Note) Prepared by Alpha-Win Research Dept. based on each company’s financial results summary

Short Report

4/6

This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
CUBE SYSTEM INC. (2335 TSE First Section)

Issued: 8/3/2020

 2335 CUBE SYSTEM Sector: Information & Communication Figure A
FY

2018
2019
2020
2021
2021
2022
2023
2018
2019
2020

Sales

YOY

O.P.

YOY

R.P.

YOY

N.P.

YOY

EPS

BPS

Dividend(million yen)（%）(million yen)（%）(million yen)（%）(million yen)

(%)

(Y)

(Y)

(Y)

13,55914,325
14,70816,00015,30016,30017,200
3,082
3,379
3,373

5.1
5.6
2.7
8.8
4.0
6.5
5.5
1.4
9.6
-0.2

2.9
5.1
-11.9
33.3
24.8
7.6
6.4
131.3
-34.2
229.3

40.59
43.25
38.69
51.56
48.21
51.89
55.20
5.45
3.70
12.17

372.23393.29411.96442.12476.01511.20393.29379.63418.69

CE
E
E
E
Q1
Q1
Q1

855
921
959
1,120
1,050
1,130
1,200
109
100
242

9.5
7.8
4.1
16.8
9.5
7.6
6.2
52.4
-8.8
141.3

892
959
976
1,120
1,050
1,130
1,200
132
107
248

10.0
7.5
1.7
14.7
7.6
7.6
6.2
80.5
-19.0
130.8

567
596
525
700
655
705
750
76
50
165

16.0
16.0
18.0
18.0
18.0
20.0
20.0
0.0
0.0
0.0

(Note) CE: the Company’s forecast. E: Alpha-Win Research Dept.’s forecast. Q1 is from April to June.

 Stock Price and Valuation Indicators: 2335 CUBE SYSTEM Figure B
7/31/2020

Item

Item

P/E

P/B

Dividend Yield

Dividend Payout Ratio

943

Last FY (actual)

24.1

2.3

1.9%

46.5%

Shares Outstanding (thou.)

15,280This FY (est.)

19.3

2.1

1.9%

37.3%

Market Capitalization (million yen)

14,409Next FY (est.)

18.0

2.0

2.1%

38.5%

Equity Ratio at Last FY-End

69.6%

Last FY's ROE

9.6%

Stock Price (Y)Dilutive Shares (thou.)0(Note) Estimates had been made by Alpha-Win Research Dept.

【 Stock Chart (end-of-week prices): 2335 CUBE SYSTEM 】 Figure C
(Y)
1,200
1,100

Stock price (left axis)
Price relative to TOPIX (right axis)

1,000

1.50
1.40
1.30
1.20

900

1.10

800

1.00

700

0.90

【Performance】
PeriodReturn vs. TOPIX
1 month-11.4%-7.7%
3 months
36.3%
33.4%
6 months
23.3%
38.8%
12 months
8.1%
13.1%

0.80
0.70

500

0.60

09
/1
6
11
/1
6
01
/1
7
04
/1
7
06
/1
7
08
/1
7
10
/1
7
01
/1
8
03
/1
8
05
/1
8
08
/1
8
10
/1
8
12
/1
8
03
/1
9
05
/1
9
07
/1
9
10
/1
9
12
/1
9
02
/2
0
05
/2
0
07
(M / 20
M
/Y
Y
)

600

(Note) Reflects stock price and index
values up through the closing price on
7/31/2020.

(Note) From the first week of September 2016 to the fifth week of July 2020

Short Report

5/6This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
CUBE SYSTEM INC. (2335 TSE First Section)

Issued: 8/3/2020＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊

Disclaimers
This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital
Inc. (hereinafter “Alpha-Win”) on the request of the company presented in this Report.
This Report is not to be construed as a recommendation or solicitation of investment. Alpha-Win shall not beliable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use ofor reliance on this Report. Investors who read this report must make their own decisions on all investment
matters and take full responsibility regarding their investment.
This Report has been prepared with a focus on objectivity and neutrality based on the analysis of generally accessible
public information and supplemental information including interview(s) by the analyst. Alpha-Win, the writer,
and/or other persons involved in the publication of this Report may already hold, or buy and sell in the future, thestock of the company presented in this Report.
Contents of this Report are based on information current as of the issue date and are subject to change
without notice. For the latest (updated) report, please see our website (http://www.awincap.com/). We also do
not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or
fit for any purpose and do not accept any responsibility or liability.
Copyright of this Report belongs to Alpha-Win and no part of the publication may be copied, photocopied, cited, ortranslated without our consent. For inquiries regarding this Report, please send us an e-mail to info@awincap.com.
However, Alpha-Win and the writer of this Report do not have any obligation to reply to inquiries.
SV20200802-2200

Short Report

6/6This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.