JS Global Lifestyle Investor Presentation — March 2022

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Hildy.Ling@morganstanley.com

Marcus.Liang@morganstanley.com

Lillian.Lou@morganstanley.com

MORGAN STANLEY ASIA LIMITED+

China/Hong Kong Consumer

Shr price, close (Mar 29, 2022)

Sh out, dil, curr (mn)

Avg daily trading value (mn)

JS Global Lifestyle Co Ltd

JS Global Lifestyle Co Ltd

Research Tactical Idea

We believe the share price will

This is because of an earnings release.

2021 net profit rose 22%,

estimate (+16% yoy). The

yoy increase in 2021 DPS (5.2% yield) with higher

payout ratio is a pleasant surprise. The profit beat was mainly driven by better

than expected gross margin for overseas business. The latest related party

transaction limit (related to OEM orders to Joyoung) is +14% yoy, indicating that

JS is still confident in overseas revenue growth in 2022. The US's recently

announced import tariff relief supports margins. We expect the company to post

positive profit growth in 2022, whereas the current stock price is implying a profit

decline. P/E is attractive at 8x our 2022 estimate.

We estimate that there is about an 80%+ (or "highly likely")

Estimated probabilities are illustrative and assigned subjectively based on our

assessment of the likelihood of the scenario.

JS Global Lifestyle Co Ltd

( 1691.HK, 1691 HK )