Asia Pacific Equity Research

20 July 2022

Overweight
Reliance Industries Ltd RELI.BO, RIL IN
Price: Rs2,437.10
With SEZ removed from export taxes, RIL's refining 19 Jul 2022
business broadly back to normal, we expect GRMs to Price Target: Rs3,170.00
improve PT End Date: 30 Jun 2023

The removal of SEZ from the export taxes in our view normalizes RIL's Metals & Mining/ Oil & Gas
refinery operations and removes the earnings risk on the O2C business that Pinakin Parekh, CFA AC
had built post the imposition of the taxes. While benchmark GRMs have (91-22) 6157-3588
come off sharply in the last two weeks, given underlying tight balances [email protected]
and still steady demand, we expect benchmark GRMs to improve from Bloomberg JPMA PAREKH <GO>

here. RIL reports earnings on July 22nd. Sarfraz Bhimani, CFA

(91-22) 6157-3589

 Among the many tax cuts the SEZ removal from export taxes is the [email protected]
J.P. Morgan India Private Limited
most positive for RIL: Post the imposition of the windfall taxes, in its
first revision, the government has lowered taxes imposed on diesel/ATF
by $6/4/bbl to $20/8/bbl, with complete removal of taxes on gasoline.
Importantly the government has also removed the windfall export taxes
from the SEZ refineries. We believe, the majority of the company’s
product exports are from its Jamnagar-SEZ unit.

 Positive for Reliance with GRM impact on the existing taxes

minimal: RIL has two refineries, of which one is an export-oriented unit
(EoU). Based on FY19 Ministry of Petrol production data, the EoU
refinery unit accounted for 58% of total production and the domestic
refinery accounted for 42% of production. Overall, the EoU refinery is
more diesel-oriented vs the domestic refinery. We believe most of RIL's
product exports take place from the SEZ refinery. While there
would still be some residual exports from the domestic refinery
which would have to pay the ~$20/bbl tax, overall we estimate the
impact on RIL's GRMs to be less than $2/bbl (and possibly even
lower). Our earnings estimates for RIL are based on realized GRMs of
~$18.5/bbl for FY23 and $12.5/bbl for FY24 and on spot cracks, product
discounts, and the new export tax, the realized GRMs for RIL should be
in line with our forecasts.

 Benchmark refining margins have come off sharply; given

underlying tightness we expect some rebound: Since the imposition of
taxes on 1st July ’22, Brent prices are down $7.5/bbl (6%) to $107/bbl,
with ATF/diesel cracks down $7.2/$9.8/bbl (18-21%) to $32.2/36.1,
respectively. Gasoline cracks have come off the most (owing to signs of
cracks in summer season demand in the US) by 65%, bringing it down to
$15.7/bbl (slightly above its long-term average). For RIL, diesel is the
most important part of the slate, and we expect diesel cracks to
remain firm, given the underlying tightness in product balances.

 1Q to be strong driven entirely by O2C; while diesel export tax will

effectively prevent a further increase in O2C earnings from 1Q
levels, a collapse in earnings is unlikely if crack spreads stabilize
See page 3 for analyst certification and important disclosures, including non-US analyst disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that
the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single
factor in making their investment decision.

www.jpmorganmarkets.com
This document is being provided for the exclusive use of [email protected].
 Pinakin Parekh, CFA Asia Pacific Equity Research
(91-22) 6157-3588 20 July 2022
[email protected]

around current levels: We forecast 1Q consolidated EBITDA at

Rs380bn (+21% q/q) and underlying PAT at Rs201.5bn (+24% q/q)
driven entirely by a sharp increase q/q in O2C EBITDA even as we build
in conservative GRM assumptions and limited benefits from crude
sourcing. We assume that while RIL should benefit from higher cracks,
the surge in spot cracks will not flow through in 1Q entirely given some
hedging RIL normally has in place. We also believe higher OSP
premiums will negate most of the benefits from Russian crude sourcing
in 1Q. In Petrochem, a surge in PX spreads (driven essentially by higher
gasoline margins) means overall steady Petrochem, as other product
spreads remain weak (PE, Polyester). While Jio and Retail should also
improve q/q (higher tariff flow through), the surge in profits in 1Q (and
for the remainder of the year) should be driven by RIL's old economy
businesses of Refining, Gas and to an extent Petrochem.

Investment Thesis
We are OW based on: a) a global view of a strong refining environment though we build in a decline in product cracks from
current levels, and b) RIL's non Energy business valuations continuing to hold up. We value O2C at an EV of $83bn, and
value Retail at $121bn with a Jio Mart value of $40bn. We also assign a 2x investment value for the proposed green
energy/renewable investment. We do not build in any holding company discount at this point.

In our view, RIL is among the best positioned refiners globally in the current environment of strong product cracks. RIL’s
refining strength comes from: 1) diesel-heavy production slate; 2) export-focused refineries; and, 3) its ability to purchase
and process ‘arbitrage barrels’, which have a discount v/s benchmark oil.

Valuation
Our SOTP-based June-23 PT of Rs3,170 is based on FY24E earnings, as follows:

Segment Highlights FY24 Per Share

Renewables Option Value 222
O2C 942
Upstream 95
JPL Telecom 100% 888
JPL Platform 100% 135
Physical Retail 100% 917
Jio Mart 100% 461
Less Net Debt (56)
Less Minority 544
Implied Equity Value/Fair Value 3,170
Source: J.P. Morgan estimates.

Risks to Rating and Price Target

The key downside risks to our Overweight rating and price target include a) a fall in Refining margins back to January 2022
levels; b) sharp decline in Consumer business valuations.

This document is being provided for the exclusive use of [email protected].

 Pinakin Parekh, CFA Asia Pacific Equity Research
(91-22) 6157-3588 20 July 2022
[email protected]

Analyst Certification: The Research Analyst(s) denoted by an “AC” on the cover of this report certifies (or, where multiple Research
Analysts are primarily responsible for this report, the Research Analyst denoted by an “AC” on the cover or within the document
individually certifies, with respect to each security or issuer that the Research Analyst covers in this research) that: (1) all of the views
expressed in this report accurately reflect the Research Analyst’s personal views about any and all of the subject securities or issuers; and
(2) no part of any of the Research Analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations
or views expressed by the Research Analyst(s) in this report. For all Korea-based Research Analysts listed on the front cover, if
applicable, they also certify, as per KOFIA requirements, that the Research Analyst’s analysis was made in good faith and that the views
reflect the Research Analyst’s own opinion, without undue influence or intervention.
All authors named within this report are Research Analysts who produce independent research unless otherwise specified. In Europe,
Sector Specialists (Sales and Trading) may be shown on this report as contacts but are not authors of the report or part of the Research
Department.

Important Disclosures

 Market Maker/ Liquidity Provider: J.P. Morgan is a market maker and/or liquidity provider in the financial instruments of/related to
Reliance Industries Ltd.
 Manager or Co-manager: J.P. Morgan acted as manager or co-manager in a public offering of securities or financial instruments (as
such term is defined in Directive 2014/65/EU) of/for Reliance Industries Ltd within the past 12 months.
 Client: J.P. Morgan currently has, or had within the past 12 months, the following entity(ies) as clients: Reliance Industries Ltd.
 Client/Investment Banking: J.P. Morgan currently has, or had within the past 12 months, the following entity(ies) as investment
banking clients: Reliance Industries Ltd.
 Client/Non-Investment Banking, Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following
entity(ies) as clients, and the services provided were non-investment-banking, securities-related: Reliance Industries Ltd.
 Client/Non-Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following entity(ies) as clients, and
the services provided were non-securities-related: Reliance Industries Ltd.
 Investment Banking Compensation Received: J.P. Morgan has received in the past 12 months compensation for investment banking
services from Reliance Industries Ltd.
 Potential Investment Banking Compensation: J.P. Morgan expects to receive, or intends to seek, compensation for investment
banking services in the next three months from Reliance Industries Ltd.
 Non-Investment Banking Compensation Received: J.P. Morgan has received compensation in the past 12 months for products or
services other than investment banking from Reliance Industries Ltd.
 Debt Position: J.P. Morgan may hold a position in the debt securities of Reliance Industries Ltd, if any.
Company-Specific Disclosures: Important disclosures, including price charts and credit opinion history tables, are available for
compendium reports and all J.P. Morgan–covered companies, and certain non-covered companies, by visiting
https://www.jpmm.com/research/disclosures, calling 1-800-477-0406, or e-mailing [email protected] with
your request.

This document is being provided for the exclusive use of [email protected].

 Pinakin Parekh, CFA Asia Pacific Equity Research
(91-22) 6157-3588 20 July 2022
[email protected]

Date Rating Price (Rs) Price Target

(Rs)
09-Oct-19 N 1310.10 1,400
20-Nov-19 N 1509.75 1,565
19-Jan-20 N 1581.00 1,560
09-Mar-20 N 1271.00 1,305
13-Mar-20 N 1063.00 1,172
22-Apr-20 N 1237.35 1,375
16-May-20 NR 1459.40 --
17-Jun-20 N 1617.70 1,490
31-Jul-20 N 2108.85 1,860
09-Sep-20 N 2107.10 2,060
01-Nov-20 NR 2054.50 --
02-Nov-20 N 2054.50 2,060
01-Dec-20 N 1929.80 1,990
25-Feb-21 N 2061.00 2,055
24-Jun-21 N 2205.35 2,250
05-Oct-21 N 2556.15 2,465
16-Nov-21 N 2577.80 2,575
15-Jun-22 OW 2628.10 3,170

The chart(s) show J.P. Morgan's continuing coverage of the stocks; the current analysts may or may not have covered it over the entire
period.
J.P. Morgan ratings or designations: OW = Overweight, N= Neutral, UW = Underweight, NR = Not Rated
Explanation of Equity Research Ratings, Designations and Analyst(s) Coverage Universe:
J.P. Morgan uses the following rating system: Overweight [Over the next six to twelve months, we expect this stock will outperform the
average total return of the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Neutral [Over the next six to twelve
months, we expect this stock will perform in line with the average total return of the stocks in the analyst’s (or the analyst’s team’s)
coverage universe.] Underweight [Over the next six to twelve months, we expect this stock will underperform the average total return of
the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Not Rated (NR): J.P. Morgan has removed the rating and, if
applicable, the price target, for this stock because of either a lack of a sufficient fundamental basis or for legal, regulatory or policy
reasons. The previous rating and, if applicable, the price target, no longer should be relied upon. An NR designation is not a
recommendation or a rating. In our Asia (ex-Australia and ex-India) and U.K. small- and mid-cap equity research, each stock’s expected
total return is compared to the expected total return of a benchmark country market index, not to those analysts’ coverage universe. If it
does not appear in the Important Disclosures section of this report, the certifying analyst’s coverage universe can be found on J.P.
Morgan’s research website, https://www.jpmorganmarkets.com.
Coverage Universe: Parekh, Pinakin: ACC Limited (ACC.NS), Ambuja Cements Limited (ABUJ.NS), Bharat Petroleum Corporation
(BPCL) (BPCL.NS), Coal India (COAL.NS), Dalmia Bharat (DALB.NS), GAIL India Ltd (GAIL.NS), Grasim Industries Ltd
(GRAS.NS), Hindalco Industries (HALC.NS), Hindustan Petroleum Corporation (HPCL) (HPCL.NS), Hindustan Zinc Limited
(HZNC.NS), Indian Oil Corporation (IOC.NS), JSW Steel (JSTL.NS), NMDC (NMDC.NS), National Aluminium Co Ltd (NALU.NS),
Nuvoco Vistas Corporation (NUVOCO.NS), Oil and Natural Gas Corporation (ONGC.NS), Petronet LNG Ltd. (PLNG.NS), Reliance
Industries Ltd (RELI.BO), Shree Cement (SHCM.NS), Steel Authority of India Ltd (SAIL.NS), Tata Steel Ltd (TISC.NS), UltraTech
Cement Ltd (ULTC.NS), Vedanta Limited (VDAN.NS)

J.P. Morgan Equity Research Ratings Distribution, as of July 02, 2022

Overweight Neutral Underweight
(buy) (hold) (sell)
J.P. Morgan Global Equity Research Coverage* 52% 37% 12%
IB clients** 50% 44% 34%
JPMS Equity Research Coverage* 51% 37% 12%
IB clients** 72% 65% 52%
*Please note that the percentages might not add to 100% because of rounding.
**Percentage of subject companies within each of the "buy," "hold" and "sell" categories for which J.P. Morgan has provided investment banking
services within the previous 12 months.
For purposes only of FINRA ratings distribution rules, our Overweight rating falls into a buy rating category; our Neutral rating falls into a hold rating
category; and our Underweight rating falls into a sell rating category. Please note that stocks with an NR designation are not included in the table above.
This information is current as of the end of the most recent calendar quarter.

This document is being provided for the exclusive use of [email protected].

 Pinakin Parekh, CFA Asia Pacific Equity Research
(91-22) 6157-3588 20 July 2022
[email protected]

Equity Valuation and Risks: For valuation methodology and risks associated with covered companies or price targets for covered
companies, please see the most recent company-specific research report at http://www.jpmorganmarkets.com, contact the primary analyst
or your J.P. Morgan representative, or email [email protected]. For material information about the proprietary
models used, please see the Summary of Financials in company-specific research reports and the Company Tearsheets, which are
available to download on the company pages of our client website, http://www.jpmorganmarkets.com. This report also sets out within it
the material underlying assumptions used.
A history of J.P. Morgan investment recommendations disseminated during the preceding 12 months can be accessed on the Research &
Commentary page of http://www.jpmorganmarkets.com where you can also search by analyst name, sector or financial instrument.

Analysts' Compensation: The research analysts responsible for the preparation of this report receive compensation based upon various
factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues.
Registration of non-US Analysts: Unless otherwise noted, the non-US analysts listed on the front of this report are employees of non-US
affiliates of J.P. Morgan Securities LLC, may not be registered as research analysts under FINRA rules, may not be associated persons of
J.P. Morgan Securities LLC, and may not be subject to FINRA Rule 2241 or 2242 restrictions on communications with covered
companies, public appearances, and trading securities held by a research analyst account.
Other Disclosures
J.P. Morgan is a marketing name for investment banking businesses of JPMorgan Chase & Co. and its subsidiaries and affiliates
worldwide.
UK MIFID FICC research unbundling exemption: UK clients should refer to UK MIFID Research Unbundling exemption for details
of JPMorgan’s implementation of the FICC research exemption and guidance on relevant FICC research categorisation.

All research material made available to clients are simultaneously available on our client website, J.P. Morgan Markets, unless
specifically permitted by relevant laws. Not all research content is redistributed, e-mailed or made available to third-party aggregators.
For all research material available on a particular stock, please contact your sales representative.

Any long form nomenclature for references to China; Hong Kong; Taiwan; and Macau within this research material are Mainland China;
Hong Kong SAR (China); Taiwan (China); and Macau SAR (China).

J.P. Morgan Research may, from time to time, write on issuers or securities targeted by economic or financial sanctions imposed or
administered by the governmental authorities of the U.S., EU, UK or other relevant jurisdictions (Sanctioned Securities). Nothing in this
report is intended to be read or construed as encouraging, facilitating, promoting or otherwise approving investment or dealing in such
Sanctioned Securities. Clients should be aware of their own legal and compliance obligations when making investment decisions.

Any digital or crypto assets discussed in this research report are subject to a rapidly changing regulatory landscape. For relevant
regulatory advisories on crypto assets, including bitcoin and ether, please see https://www.jpmorgan.com/disclosures/cryptoasset-
disclosure.

Exchange-Traded Funds (ETFs): J.P. Morgan Securities LLC (“JPMS”) acts as authorized participant for substantially all U.S.-listed
ETFs. To the extent that any ETFs are mentioned in this report, JPMS may earn commissions and transaction-based compensation in
connection with the distribution of those ETF shares and may earn fees for performing other trade-related services, such as securities
lending to short sellers of the ETF shares. JPMS may also perform services for the ETFs themselves, including acting as a broker or
dealer to the ETFs. In addition, affiliates of JPMS may perform services for the ETFs, including trust, custodial, administration, lending,
index calculation and/or maintenance and other services.

Options and Futures related research: If the information contained herein regards options- or futures-related research, such information
is available only to persons who have received the proper options or futures risk disclosure documents. Please contact your J.P. Morgan
Representative or visit https://www.theocc.com/components/docs/riskstoc.pdf for a copy of the Option Clearing Corporation's
Characteristics and Risks of Standardized Options or
http://www.finra.org/sites/default/files/Security_Futures_Risk_Disclosure_Statement_2018.pdf for a copy of the Security Futures Risk
Disclosure Statement.
Changes to Interbank Offered Rates (IBORs) and other benchmark rates: Certain interest rate benchmarks are, or may in the future
become, subject to ongoing international, national and other regulatory guidance, reform and proposals for reform. For more information,
please consult: https://www.jpmorgan.com/global/disclosures/interbank_offered_rates

This document is being provided for the exclusive use of [email protected].

 Pinakin Parekh, CFA Asia Pacific Equity Research
(91-22) 6157-3588 20 July 2022
[email protected]

Private Bank Clients: Where you are receiving research as a client of the private banking businesses offered by JPMorgan Chase & Co.
and its subsidiaries (“J.P. Morgan Private Bank”), research is provided to you by J.P. Morgan Private Bank and not by any other division
of J.P. Morgan, including, but not limited to, the J.P. Morgan Corporate and Investment Bank and its Global Research division.
Legal entity responsible for the production and distribution of research: The legal entity identified below the name of the Reg AC
Research Analyst who authored this material is the legal entity responsible for the production of this research. Where multiple Reg AC
Research Analysts authored this material with different legal entities identified below their names, these legal entities are jointly
responsible for the production of this research. Research Analysts from various J.P. Morgan affiliates may have contributed to the
production of this material but may not be licensed to carry out regulated activities in your jurisdiction (and do not hold themselves out as
being able to do so). Unless otherwise stated below, this material has been distributed by the legal entity responsible for production. If you
have any queries, please contact the relevant Research Analyst in your jurisdiction or the entity in your jurisdiction that has distributed
this research material.
Legal Entities Disclosures and Country-/Region-Specific Disclosures:
Argentina: JPMorgan Chase Bank N.A Sucursal Buenos Aires is regulated by Banco Central de la República Argentina (“BCRA”-
Central Bank of Argentina) and Comisión Nacional de Valores (“CNV”- Argentinian Securities Commission” - ALYC y AN Integral
N°51). Australia: J.P. Morgan Securities Australia Limited (“JPMSAL”) (ABN 61 003 245 234/AFS Licence No: 238066) is regulated
by the Australian Securities and Investments Commission and is a Market, Clearing and Settlement Participant of ASX Limited and CHI-
X. This material is issued and distributed in Australia by or on behalf of JPMSAL only to "wholesale clients" (as defined in section 761G
of the Corporations Act 2001). A list of all financial products covered can be found by visiting
https://www.jpmm.com/research/disclosures. J.P. Morgan seeks to cover companies of relevance to the domestic and international
investor base across all Global Industry Classification Standard (GICS) sectors, as well as across a range of market capitalisation sizes. If
applicable, in the course of conducting public side due diligence on the subject company(ies), the Research Analyst team may at times
perform such diligence through corporate engagements such as site visits, discussions with company representatives, management
presentations, etc. Research issued by JPMSAL has been prepared in accordance with J.P. Morgan Australia’s Research Independence
Policy which can be found at the following link: J.P. Morgan Australia - Research Independence Policy. Brazil: Banco J.P. Morgan S.A.
is regulated by the Comissao de Valores Mobiliarios (CVM) and by the Central Bank of Brazil. Ombudsman J.P. Morgan: 0800-7700847
/ [email protected]. Canada: J.P. Morgan Securities Canada Inc. is a registered investment dealer, regulated by the
Investment Industry Regulatory Organization of Canada and the Ontario Securities Commission and is the participating member on
Canadian exchanges. This material is distributed in Canada by or on behalf of J.P.Morgan Securities Canada Inc. Chile: Inversiones J.P.
Morgan Limitada is an unregulated entity incorporated in Chile. China: J.P. Morgan Securities (China) Company Limited has been
approved by CSRC to conduct the securities investment consultancy business. Dubai International Financial Centre (DIFC):
JPMorgan Chase Bank, N.A., Dubai Branch is regulated by the Dubai Financial Services Authority (DFSA) and its registered address is
Dubai International Financial Centre - The Gate, West Wing, Level 3 and 9 PO Box 506551, Dubai, UAE. This material has been
distributed by JP Morgan Chase Bank, N.A., Dubai Branch to persons regarded as professional clients or market counterparties as defined
under the DFSA rules. European Economic Area (EEA): Unless specified to the contrary, research is distributed in the EEA by J.P.
Morgan SE (“JPM SE”), which is subject to prudential supervision by the European Central Bank (“ECB”) in cooperation with BaFin and
Deutsche Bundesbank in Germany. JPM SE is a company headquartered in Frankfurt with registered address at TaunusTurm, Taunustor
1, Frankfurt am Main, 60310, Germany. The material has been distributed in the EEA to persons regarded as professional investors (or
equivalent) pursuant to Art. 4 para. 1 no. 10 and Annex II of MiFID II and its respective implementation in their home jurisdictions
(“EEA professional investors”). This material must not be acted on or relied on by persons who are not EEA professional investors. Any
investment or investment activity to which this material relates is only available to EEA relevant persons and will be engaged in only with
EEA relevant persons. Hong Kong: J.P. Morgan Securities (Asia Pacific) Limited (CE number AAJ321) is regulated by the Hong Kong
Monetary Authority and the Securities and Futures Commission in Hong Kong, and J.P. Morgan Broking (Hong Kong) Limited (CE
number AAB027) is regulated by the Securities and Futures Commission in Hong Kong. JP Morgan Chase Bank, N.A., Hong Kong (CE
Number AAL996) is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission, is organized under the
laws of the United States with limited liability. Where the distribution of this material is a regulated activity in Hong Kong, the material is
distributed in Hong Kong by or through J.P. Morgan Securities (Asia Pacific) Limited and/or J.P. Morgan Broking (Hong Kong) Limited.
India: J.P. Morgan India Private Limited (Corporate Identity Number - U67120MH1992FTC068724), having its registered office at J.P.
Morgan Tower, Off. C.S.T. Road, Kalina, Santacruz - East, Mumbai – 400098, is registered with the Securities and Exchange Board of
India (SEBI) as a ‘Research Analyst’ having registration number INH000001873. J.P. Morgan India Private Limited is also registered
with SEBI as a member of the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited (SEBI Registration
Number – INZ000239730) and as a Merchant Banker (SEBI Registration Number - MB/INM000002970). Telephone: 91-22-6157 3000,
Facsimile: 91-22-6157 3990 and Website: http://www.jpmipl.com. JPMorgan Chase Bank, N.A. - Mumbai Branch is licensed by the
Reserve Bank of India (RBI) (Licence No. 53/ Licence No. BY.4/94; SEBI - IN/CUS/014/ CDSL : IN-DP-CDSL-444-2008/ IN-DP-
NSDL-285-2008/ INBI00000984/ INE231311239) as a Scheduled Commercial Bank in India, which is its primary license allowing it to
carry on Banking business in India and other activities, which a Bank branch in India are permitted to undertake. For non-local research
material, this material is not distributed in India by J.P. Morgan India Private Limited. Indonesia: PT J.P. Morgan Sekuritas Indonesia is a
member of the Indonesia Stock Exchange and is registered and supervised by the Otoritas Jasa Keuangan (OJK). Korea: J.P. Morgan
Securities (Far East) Limited, Seoul Branch, is a member of the Korea Exchange (KRX). JPMorgan Chase Bank, N.A., Seoul Branch, is

This document is being provided for the exclusive use of [email protected].

 Pinakin Parekh, CFA Asia Pacific Equity Research
(91-22) 6157-3588 20 July 2022
[email protected]

licensed as a branch office of foreign bank (JPMorgan Chase Bank, N.A.) in Korea. Both entities are regulated by the Financial Services
Commission (FSC) and the Financial Supervisory Service (FSS). For non-macro research material, the material is distributed in Korea by
or through J.P. Morgan Securities (Far East) Limited, Seoul Branch. Japan: JPMorgan Securities Japan Co., Ltd. and JPMorgan Chase
Bank, N.A., Tokyo Branch are regulated by the Financial Services Agency in Japan. Malaysia: This material is issued and distributed in
Malaysia by JPMorgan Securities (Malaysia) Sdn Bhd (18146-X), which is a Participating Organization of Bursa Malaysia Berhad and
holds a Capital Markets Services License issued by the Securities Commission in Malaysia. Mexico: J.P. Morgan Casa de Bolsa, S.A. de
C.V.and J.P. Morgan Grupo Financiero are members of the Mexican Stock Exchange and are authorized to act as a broker dealer by the
National Banking and Securities Exchange Commission. New Zealand: This material is issued and distributed by JPMSAL in New
Zealand only to "wholesale clients" (as defined in the Financial Markets Conduct Act 2013). JPMSAL is registered as a Financial Service
Provider under the Financial Service providers (Registration and Dispute Resolution) Act of 2008. Pakistan: J. P. Morgan Pakistan
Broking (Pvt.) Ltd is a member of the Karachi Stock Exchange and regulated by the Securities and Exchange Commission of Pakistan.
Philippines: J.P. Morgan Securities Philippines Inc. is a Trading Participant of the Philippine Stock Exchange and a member of the
Securities Clearing Corporation of the Philippines and the Securities Investor Protection Fund. It is regulated by the Securities and
Exchange Commission. Russia: CB J.P. Morgan Bank International LLC is regulated by the Central Bank of Russia. Singapore: This
material is issued and distributed in Singapore by or through J.P. Morgan Securities Singapore Private Limited (JPMSS) [MCI (P)
093/09/2021 and Co. Reg. No.: 199405335R], which is a member of the Singapore Exchange Securities Trading Limited, and/or
JPMorgan Chase Bank, N.A., Singapore branch (JPMCB Singapore), both of which are regulated by the Monetary Authority of
Singapore. This material is issued and distributed in Singapore only to accredited investors, expert investors and institutional investors, as
defined in Section 4A of the Securities and Futures Act, Cap. 289 (SFA). This material is not intended to be issued or distributed to any
retail investors or any other investors that do not fall into the classes of “accredited investors,” “expert investors” or “institutional
investors,” as defined under Section 4A of the SFA. Recipients of this material in Singapore are to contact JPMSS or JPMCB Singapore
in respect of any matters arising from, or in connection with, the material. As at the date of this material, JPMSS is a designated market
maker for certain structured warrants listed on the Singapore Exchange where the underlying securities may be the securities discussed in
this material. Arising from its role as a designated market maker for such structured warrants, JPMSS may conduct hedging activities in
respect of such underlying securities and hold or have an interest in such underlying securities as a result. The updated list of structured
warrants for which JPMSS acts as designated market maker may be found on the website of the Singapore Exchange Limited:
http://www.sgx.com. South Africa: J.P. Morgan Equities South Africa Proprietary Limited and JPMorgan Chase Bank, N.A.,
Johannesburg Branch are members of the Johannesburg Securities Exchange and are regulated by the Financial Services Board. Taiwan:
J.P. Morgan Securities (Taiwan) Limited is a participant of the Taiwan Stock Exchange (company-type) and regulated by the Taiwan
Securities and Futures Bureau. Material relating to equity securities is issued and distributed in Taiwan by J.P. Morgan Securities
(Taiwan) Limited, subject to the license scope and the applicable laws and the regulations in Taiwan. According to Paragraph 2, Article 7-
1 of Operational Regulations Governing Securities Firms Recommending Trades in Securities to Customers (as amended or
supplemented) and/or other applicable laws or regulations, please note that the recipient of this material is not permitted to engage in any
activities in connection with the material that may give rise to conflicts of interests, unless otherwise disclosed in the “Important
Disclosures” in this material. Thailand: This material is issued and distributed in Thailand by JPMorgan Securities (Thailand) Ltd., which
is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission,
and its registered address is 3rd Floor, 20 North Sathorn Road, Silom, Bangrak, Bangkok 10500. UK: Unless specified to the contrary,
research is distributed in the UK by J.P. Morgan Securities plc (“JPMS plc”) which is a member of the London Stock Exchange and is
authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation
Authority. JPMS plc is registered in England & Wales No. 2711006, Registered Office 25 Bank Street, London, E14 5JP. This material is
directed in the UK only to: (a) persons having professional experience in matters relating to investments falling within article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) (Order) 2005 (“the FPO”); (b) persons outlined in article 49 of the FPO
(high net worth companies, unincorporated associations or partnerships, the trustees of high value trusts, etc.); or (c) any persons to whom
this communication may otherwise lawfully be made; all such persons being referred to as "UK relevant persons". This material must not
be acted on or relied on by persons who are not UK relevant persons. Any investment or investment activity to which this material relates
is only available to UK relevant persons and will be engaged in only with UK relevant persons. Research issued by JPMS plc has been
prepared in accordance with JPMS plc's policy for prevention and avoidance of conflicts of interest related to the production of Research
which can be found at the following link: J.P. Morgan EMEA - Research Independence Policy. U.S.: J.P. Morgan Securities LLC
(“JPMS”) is a member of the NYSE, FINRA, SIPC, and the NFA. JPMorgan Chase Bank, N.A. is a member of the FDIC. Material
published by non-U.S. affiliates is distributed in the U.S. by JPMS who accepts responsibility for its content.
General: Additional information is available upon request. The information in this material has been obtained from sources believed to be
reliable. While all reasonable care has been taken to ensure that the facts stated in this material are accurate and that the forecasts,
opinions and expectations contained herein are fair and reasonable, JPMorgan Chase & Co. or its affiliates and/or subsidiaries
(collectively J.P. Morgan) make no representations or warranties whatsoever to the completeness or accuracy of the material provided,
except with respect to any disclosures relative to J.P. Morgan and the Research Analyst's involvement with the issuer that is the subject of
the material. Accordingly, no reliance should be placed on the accuracy, fairness or completeness of the information contained in this
material. Any data discrepancies in this material could be the result of different calculations and/or adjustments. J.P. Morgan accepts no
liability whatsoever for any loss arising from any use of this material or its contents, and neither J.P. Morgan nor any of its respective
directors, officers or employees, shall be in any way responsible for the contents hereof, apart from the liabilities and responsibilities that

This document is being provided for the exclusive use of [email protected].

 Pinakin Parekh, CFA Asia Pacific Equity Research
(91-22) 6157-3588 20 July 2022
[email protected]

may be imposed on them by the relevant regulatory authority in the jurisdiction in question, or the regulatory regime thereunder.
Opinions, forecasts or projections contained in this material represent J.P. Morgan's current opinions or judgment as of the date of the
material only and are therefore subject to change without notice. Periodic updates may be provided on companies/industries based on
company-specific developments or announcements, market conditions or any other publicly available information. There can be no
assurance that future results or events will be consistent with any such opinions, forecasts or projections, which represent only one
possible outcome. Furthermore, such opinions, forecasts or projections are subject to certain risks, uncertainties and assumptions that have
not been verified, and future actual results or events could differ materially. The value of, or income from, any investments referred to in
this material may fluctuate and/or be affected by changes in exchange rates. All pricing is indicative as of the close of market for the
securities discussed, unless otherwise stated. Past performance is not indicative of future results. Accordingly, investors may receive back
less than originally invested. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.
The opinions and recommendations herein do not take into account individual client circumstances, objectives, or needs and are not
intended as recommendations of particular securities, financial instruments or strategies to particular clients. The recipients of this
material must make their own independent decisions regarding any securities or financial instruments mentioned herein and should seek
advice from such independent financial, legal, tax or other adviser as they deem necessary. J.P. Morgan may trade as a principal on the
basis of the Research Analysts’ views and research, and it may also engage in transactions for its own account or for its clients’ accounts
in a manner inconsistent with the views taken in this material, and J.P. Morgan is under no obligation to ensure that such other
communication is brought to the attention of any recipient of this material. Others within J.P. Morgan, including Strategists, Sales staff
and other Research Analysts, may take views that are inconsistent with those taken in this material. Employees of J.P. Morgan not
involved in the preparation of this material may have investments in the securities (or derivatives of such securities) mentioned in this
material and may trade them in ways different from those discussed in this material. This material is not an advertisement for or
marketing of any issuer, its products or services, or its securities in any jurisdiction.
"Other Disclosures" last revised July 02, 2022.
Copyright 2022 JPMorgan Chase & Co. All rights reserved. This material or any portion hereof may not be reprinted, sold or
redistributed without the written consent of J.P. Morgan. #$J&098$#*P

8
Completed 20 Jul 2022 12:45 PM HKT Disseminated 20 Jul 2022 12:45 PM HKT
This document is being provided for the exclusive use of [email protected].