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GuruFocus Financial Strength Rank measures how strong a companyย’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.995
AMAT's Cash to Debt is ranked lower than
140056% of the 714 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 7.36 vs. AMAT: 0.995 )
AMAT' s 10-Year Cash to Debt Range
Min: 1   Max: 14.42
Current: 1

1
14.42
Equity to Asset 0.195
AMAT's Equity to Asset is ranked lower than
142653% of the 701 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 0.60 vs. AMAT: 0.195 )
AMAT' s 10-Year Equity to Asset Range
Min: 0.2   Max: 0.77
Current: 0.2

0.2
0.77
Interest Coverage 5.3
AMAT's Interest Coverage is ranked lower than
200803% of the 498 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 10000.00 vs. AMAT: 5.3 )
AMAT' s 10-Year Interest Coverage Range
Min: 5   Max: No Debt
Current: 5.3

F-Score: 2
Z-Score: 3.04
M-Score: -3.33
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 4.70
AMAT's Operating margin (%) is ranked lower than
230415% of the 434 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 8.90 vs. AMAT: 4.70 )
AMAT' s 10-Year Operating margin (%) Range
Min: -7.9   Max: 30.8
Current: 4.7

-7.9
30.8
Net-margin (%) 1.3
AMAT's Net-margin (%) is ranked lower than
239234% of the 418 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 7.50 vs. AMAT: 1.3 )
AMAT' s 10-Year Net-margin (%) Range
Min: -6.1   Max: 21.6
Current: 1.3

-6.1
21.6
ROE (%) 1.5
AMAT's ROE (%) is ranked lower than
241546% of the 414 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 8.50 vs. AMAT: 1.5 )
AMAT' s 10-Year ROE (%) Range
Min: -4.3   Max: 29
Current: 1.5

-4.3
29
ROA (%) 0.9
AMAT's ROA (%) is ranked lower than
242131% of the 413 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 5.70 vs. AMAT: 0.9 )
AMAT' s 10-Year ROA (%) Range
Min: -3.2   Max: 19.6
Current: 0.9

-3.2
19.6
ROC (Joel Greenblatt) (%) 22.70
AMAT's ROC (Joel Greenblatt) (%) is ranked lower than
239234% of the 418 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 18.10 vs. AMAT: 22.70 )
AMAT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -15   Max: 109.8
Current: 22.7

-15
109.8
Revenue Growth (%) 16.1
AMAT's Revenue Growth (%) is ranked lower than
401606% of the 249 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 10.50 vs. AMAT: 16.1 )
AMAT' s 10-Year Revenue Growth (%) Range
Min: -16.6   Max: 21.4
Current: 16.1

-16.6
21.4
ยป AMAT's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2012

AMAT Guru Trades in Q2 2012

Paul Tudor Jones 63,400 sh (New)
Bruce Kovner 212,731 sh (New)
Manning & Napier Advisors, Inc 116,628 sh (+100.23%)
Chuck Royce 222,845 sh (+54.04%)
Third Avenue Management 8,030,028 sh (+52.08%)
Charles de Vaulx 8,573,680 sh (+51.72%)
Ray Dalio 1,844,188 sh (+51.59%)
Richard Snow 341,973 sh (+8.25%)
Bill Nygren 7,160,000 sh (+5.14%)
Martin Whitman 3,309,207 sh (+65.46%)
Brian Rogers 11,344,500 sh (unchged)
John Hussman 2,500 sh (unchged)
Pioneer Investments Sold Out
Steven Cohen Sold Out
Jim Simons Sold Out
Arnold Van Den Berg 2,329,509 sh (-0.34%)
David Dreman 280,767 sh (-1.22%)
Chris Davis 93,900 sh (-1.6%)
PRIMECAP Management 15,033,035 sh (-9.05%)
Joel Greenblatt 772,361 sh (-9.59%)
Ruane Cunniff 13,692 sh (-11.82%)
Ken Fisher 58,399 sh (-38.18%)
James Barrow 4,400,014 sh (-64.35%)
» More
Q3 2012

AMAT Guru Trades in Q3 2012

Steven Cohen 376,818 sh (New)
Chuck Royce 274,060 sh (+22.98%)
Third Avenue Management 9,306,411 sh (+15.9%)
Brian Rogers 12,344,500 sh (+8.81%)
PRIMECAP Management 15,854,705 sh (+5.47%)
Manning & Napier Advisors, Inc 118,694 sh (+1.77%)
David Dreman 280,803 sh (+0.01%)
Martin Whitman 4,414,207 sh (+33.39%)
John Hussman 2,500 sh (unchged)
Ruane Cunniff 13,692 sh (unchged)
Bill Nygren 7,160,000 sh (unchged)
Bruce Kovner Sold Out
Ray Dalio Sold Out
Chris Davis 93,827 sh (-0.08%)
Charles de Vaulx 8,499,523 sh (-0.86%)
Arnold Van Den Berg 2,285,911 sh (-1.87%)
James Barrow 3,822,114 sh (-13.13%)
Richard Snow 236,511 sh (-30.84%)
Ken Fisher 36,433 sh (-37.61%)
Paul Tudor Jones 19,500 sh (-69.24%)
Joel Greenblatt 129,421 sh (-83.24%)
» More
Q4 2012

AMAT Guru Trades in Q4 2012

NWQ Managers 9,195,682 sh (New)
Bruce Kovner 144,300 sh (New)
John Burbank 19,627 sh (New)
Paul Tudor Jones 189,200 sh (+870.26%)
John Hussman 5,000 sh (+100%)
Charles de Vaulx 10,117,658 sh (+19.04%)
Chuck Royce 322,500 sh (+17.67%)
Third Avenue Management 9,850,907 sh (+5.85%)
James Barrow 4,017,014 sh (+5.1%)
Brian Rogers 12,594,500 sh (+2.03%)
Manning & Napier Advisors, Inc 119,782 sh (+0.92%)
Martin Whitman 4,689,207 sh (+6.23%)
Bill Nygren 7,160,000 sh (unchged)
Ruane Cunniff 13,692 sh (unchged)
Joel Greenblatt Sold Out
PRIMECAP Management 15,709,205 sh (-0.92%)
Chris Davis 92,750 sh (-1.15%)
David Dreman 272,384 sh (-3%)
Arnold Van Den Berg 2,113,682 sh (-7.53%)
Ken Fisher 27,476 sh (-24.58%)
Richard Snow 151,736 sh (-35.84%)
Steven Cohen 24,892 sh (-93.39%)
» More
Q1 2013

AMAT Guru Trades in Q1 2013

Pioneer Investments 1,102,720 sh (New)
Ray Dalio 503,799 sh (New)
Joel Greenblatt 15,986 sh (New)
Louis Moore Bacon 1,950,000 sh (New)
Steven Cohen 678,928 sh (+2627.49%)
Chris Davis 388,698 sh (+319.08%)
Ruane Cunniff 15,717 sh (+14.79%)
Manning & Napier Advisors, Inc 126,156 sh (+5.32%)
Richard Snow 157,976 sh (+4.11%)
Third Avenue Management 10,119,702 sh (+2.73%)
John Hussman 5,000 sh (unchged)
Brian Rogers 12,594,500 sh (unchged)
Bill Nygren 7,160,000 sh (unchged)
Martin Whitman 4,689,207 sh (unchged)
David Dreman Sold Out
James Barrow Sold Out
Bruce Kovner Sold Out
Chuck Royce Sold Out
John Burbank Sold Out
Paul Tudor Jones Sold Out
Arnold Van Den Berg 2,082,112 sh (-1.49%)
NWQ Managers 8,723,671 sh (-5.13%)
Ken Fisher 19,258 sh (-29.91%)
PRIMECAP Management 9,137,855 sh (-41.83%)
» More
» Details

Insider Trades

Latest Guru Trades with AMAT

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
PRIMECAP Management 2013-03-31 Reduce -41.83%0.12%$11.44 - $13.89 $ 14.612%9137855
David Dreman 2013-03-31 Sold Out 0.09%$11.44 - $13.89 $ 14.612%0
James Barrow 2013-03-31 Sold Out 0.09%$11.44 - $13.89 $ 14.612%0
Ray Dalio 2013-03-31 New Buy0.06%$11.44 - $13.89 $ 14.612%503799
John Burbank 2013-03-31 Sold Out 0.01%$11.44 - $13.89 $ 14.612%0
Joel Greenblatt 2013-03-31 New Buy0.01%$11.44 - $13.89 $ 14.612%15986
Joel Greenblatt 2012-12-31 Sold Out 0.1%$10.15 - $11.5 $ 14.634%0
John Burbank 2012-12-31 New Buy0.01%$10.15 - $11.5 $ 14.634%19627
John Hussman 2012-12-31 Add 100%$10.15 - $11.5 $ 14.634%5000
Martin Whitman 2012-10-31 Add 6.23%0.13%$10.65 - $12.05 $ 14.628%4689207
Joel Greenblatt 2012-09-30 Reduce -83.24%0.54%$10.32 - $12.02 $ 14.629%129421
Ray Dalio 2012-09-30 Sold Out 0.31%$10.32 - $12.02 $ 14.629%0
Martin Whitman 2012-07-31 Add 33.39%0.48%$10.13 - $11.76 $ 14.635%4414207
James Barrow 2012-06-30 Reduce -64.35%0.19%$10.13 - $12.43 $ 14.630%4400014
Ray Dalio 2012-06-30 Add 51.59%0.11%$10.13 - $12.43 $ 14.630%1844188
Martin Whitman 2012-04-30 Add 65.46%0.59%$11.57 - $13.21 $ 14.618%3309207
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Applied Materials, Inc.

Third Avenue Managements Comments on Applied Materials - Oct 02, 2012

We also added to our position in Applied Materials Common (AMAT), which was discussed in last quarter's letter. The share price has been weak of late owing to a deteriorating 2012 earnings outlook. Demand for semiconductor capital equipment appears to have been negatively impacted by the slowing global economy. Nevertheless, Applied Materials' financial and market positions remain strong, and the shares were purchased at an attractive price of about nine times 2011 earnings.

From Third Avenue's third-quarter letter, by Ian Lapey, portfolio manager.
Check out Third Avenue Management latest stock trades

Third Avenue Management Comments on Applied Materials - Jun 28, 2012

From Third Avenue Management's second-quarter letter:

In March, I attended the Applied Materials (AMAT) investor meeting in New York along with my colleague Yang Lie, who has followed Applied Materials and other technology stocks since joining the firm in 1996. Applied Materials' Chairman and CEO Mike Splinter, along with several other members of the senior management team, presented a compelling long-term investment case for the company, which is the leading global provider of semiconductor capital equipment, driven by increasing consumer demand for mobility. While it is difficult to predict who will produce the next top-selling consumer electronics gadget (although the odds appear to favor Apple at the moment), it seems to be a safe bet that the demand for equipment and services provided by Applied Materials should increase, given its market dominance in many areas of semiconductor equipment, as semiconductor chips become more ubiquitous and more complex, necessitating a greater number and more advanced tools.

This favorable longer-term outlook seems to have been lost on many, as the company's modest reduction in 2012 earnings guidance triggered a 3% decline in the stock price that day and a subsequent 4% decline through quarter end. Specifically, owing primarily to weak demand for solar power capital equipment, the company projected fiscal 2012 earnings of $0.85 to $0.95 per share, compared to the previous Wall Street consensus forecast of $0.96 per share. As a result, we added to our position in Applied Common at very attractive multiples of about 9 and 13 times 2011 and expected 2012 earnings, respectively. Importantly, we believe that earnings are likely to exceed recent peak 2011 earnings of $1.30 per share in the next few years, driven by the favorable dynamics noted above, as well as an increase in addressable market from the recent acquisition of Varian Semiconductor. Although Applied Materials paid a rich price for Varian ($4.2 billion; 18 times earnings), the transaction was financed with excess cash and very low cost debt and should be accretive next year. Varian is the market leader in the ion implant market, a critical step in semiconductor chip manufacturing, which enables the manufacturing of high performance chips, e.g., for applications requiring faster speeds and longer battery lives. Even after the Varian acquisition, Applied Materials has a very strong financial position, with about $3 billion of cash and $2 billion of debt consisting of senior unsecured notes due from 2016 to 2041 at rates ranging from 2.7% to 7.1%. Applied Common accounted for 1.3% of the Fund's net assets at quarter end, and we have been increasing our position on further share price weakness this quarter.

Check out Martin Whitman latest stock trades

Top Ranked Articles about Applied Materials, Inc.

Weekly CEO Sells Highlight: Starbucks Corporation, Applied Materials Inc, PhotoMedex Inc, Gap Inc.
According to GuruFocus Insider Data, these are the largest CEO sales during the past week: Starbucks Corporation, Applied Materials Inc, PhotoMedex Inc, and Gap Inc. Read more...
Weekly Top Insider Buys: AMAT, AA, IHS, AGCO, GEL
According to GuruFocus Insider Data, these are the largest insider buys during the past week: Applied Materials Inc. (AMAT), Alcoa Inc. (AA), IHS Inc. (IHS), AGCO Corporation (AGCO) and Genesis Energy LP (GEL). Read more...
Third Avenue Managements Comments on Applied Materials
We also added to our position in Applied Materials Common (AMAT), which was discussed in last quarter's letter. The share price has been weak of late owing to a deteriorating 2012 earnings outlook. Demand for semiconductor capital equipment appears to have been negatively impacted by the slowing global economy. Nevertheless, Applied Materials' financial and market positions remain strong, and the shares were purchased at an attractive price of about nine times 2011 earnings. Read more...
Applied Materials offers stability within the volatile tech sector  - Applied Materials Offers Stability Within The Volatile Tech Sector
Applied materials (AMAT) is one of the companies I have been adding in the last few months. It is a company which I covered a long time back (see Companies with buybacks: AMAT edition). I started buying the company around $11 and have kept adding whenever it dips below $10. Read more...
Third Avenue Management Comments on Applied Materials

Ratios

vs
industry
vs
history
P/E(ttm) 668.90
AMAT's P/E(ttm) is ranked higher than
100% of the 421 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 21.10 vs. AMAT: 668.90 )
AMAT' s 10-Year P/E(ttm) Range
Min: 6.99   Max: 3.51785E+18
Current: 668.9

6.99
3.51785E+18
P/B 2.40
AMAT's P/B is ranked lower than
141243% of the 708 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.40 vs. AMAT: 2.40 )
AMAT' s 10-Year P/B Range
Min: 1.5   Max: 18.42
Current: 2.4

1.5
18.42
P/S 2.30
AMAT's P/S is ranked lower than
139082% of the 719 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.33 vs. AMAT: 2.30 )
AMAT' s 10-Year P/S Range
Min: 1.23   Max: 14.84
Current: 2.3

1.23
14.84
PFCF 16.20
AMAT's PFCF is ranked lower than
243902% of the 410 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 17.07 vs. AMAT: 16.20 )
AMAT' s 10-Year PFCF Range
Min: 6.08   Max: 341
Current: 16.2

6.08
341
EV-to-EBIT 66.7
AMAT's EV-to-EBIT is ranked higher than
100% of the 492 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 16.62 vs. AMAT: 66.7 )
AMAT' s 10-Year EV-to-EBIT Range
Min: 3.6   Max: 559.4
Current: 66.7

3.6
559.4
Shiller P/E 25.2
AMAT's Shiller P/E is ranked lower than
100% of the Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: vs. AMAT: 25.2 )
AMAT' s 10-Year Shiller P/E Range
Min: 10.84   Max: 61.03
Current: 25.2

10.84
61.03

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.60
AMAT's Dividend Yield is ranked lower than
293255% of the 341 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 2.35 vs. AMAT: 2.60 )
AMAT' s 10-Year Dividend Yield Range
Min: 0.16   Max: 3.38
Current: 2.6

0.16
3.38
Dividend Payout 16.9815
AMAT's Dividend Payout is ranked lower than
483091% of the 207 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 0.60 vs. AMAT: 16.9815 )
AMAT' s 10-Year Dividend Payout Range
Min: 0.08   Max: 4.02
Current: 16.98

0.08
4.02
Dividend growth (3y) 9.3
AMAT's Dividend growth (3y) is ranked lower than
3571425% of the 28 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 11.60 vs. AMAT: 9.3 )
AMAT' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 41.4
Current: 9.3

0
41.4
Yield on cost (5-Year) 4.15
AMAT's Yield on cost (5-Year) is ranked lower than
291545% of the 343 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 2.49 vs. AMAT: 4.15 )
AMAT' s 10-Year Yield on cost (5-Year) Range
Min: 0.26   Max: 5.39
Current: 4.15

0.26
5.39
Share Buyback Rate 1.1
AMAT's Share Buyback Rate is ranked lower than
1960782% of the 51 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.20 vs. AMAT: 1.1 )
AMAT' s 10-Year Share Buyback Rate Range
Min: 4.6   Max: -1.8
Current: 1.1

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 11.3
AMAT's Price/Net Current Asset Value is ranked lower than
152207% of the 657 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 11.30 vs. AMAT: 11.3 )
AMAT' s 10-Year Price/Net Current Asset Value Range
Min: 7.5   Max: 33.3
Current: 11.3

7.5
33.3
Price/Tangible Book 7.4
AMAT's Price/Tangible Book is ranked lower than
142857% of the 700 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.50 vs. AMAT: 7.4 )
AMAT' s 10-Year Price/Tangible Book Range
Min: 2.3   Max: 6.4
Current: 7.4

2.3
6.4
Price/DCF (Projected) 0.9
AMAT's Price/DCF (Projected) is ranked lower than
694444% of the 144 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.30 vs. AMAT: 0.9 )
AMAT' s 10-Year Price/DCF (Projected) Range
Min: 0.7   Max: 3.1
Current: 0.9

0.7
3.1
Price/Median PS Value 0.7
AMAT's Price/Median PS Value is ranked lower than
151745% of the 659 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.10 vs. AMAT: 0.7 )
AMAT' s 10-Year Price/Median PS Value Range
Min: 0.5   Max: 2.6
Current: 0.7

0.5
2.6
Price/Graham Number 7.8
AMAT's Price/Graham Number is ranked lower than
240964% of the 415 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.30 vs. AMAT: 7.8 )
AMAT' s 10-Year Price/Graham Number Range
Min: 0.9   Max: 5.6
Current: 7.8

0.9
5.6
Earnings Yield (Greenblatt) 1.50
AMAT's Earnings Yield (Greenblatt) is ranked lower than
195695% of the 511 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 5.80 vs. AMAT: 1.50 )
AMAT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 27.5
Current: 1.5

0.2
27.5
Forward Rate of Return (Yacktman) 6.13
AMAT's Forward Rate of Return (Yacktman) is ranked lower than
649350% of the 154 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 5.84 vs. AMAT: 6.13 )
AMAT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -38.2   Max: 73.9
Current: 6.13

-38.2
73.9

Business Description

Applied Materials, Inc. was incorporated in 1967. The Company is a Delaware corporation, provides manufacturing equipment, services and software to the global semiconductor, flat panel display, solar photovoltaic and related industries. The Company operates in four reportable segments: Silicon Systems Group, Applied Global Services, Display, and Energy and Environmental Solutions. The Company manages its business based upon these segments. The Company's Silicon Systems Group segment develops, manufactures and sells a range of manufacturing equipment used to fabricate semiconductor chips, also referred to as integrated circuits. The Company Global Services segment encompasses products and services designed to improve the performance and productivity, and reduce the environmental impact, of the fab operations of semiconductor, LCD and solar PV manufacturers. The Company's products for manufacturing thin film transistor liquid crystal displays (TFT- LCDs) for televisions, personal computers (PCs), tablet PCs, smartphones and other consumer-oriented electronic applications are reported under its Display segment. The Energy and Environmental Solutions segment includes manufacturing systems to produce products for the generation and conservation of energy. To increase the conversion efficiency and yields of solar PV devices and help reduce the cost per watt of solar-generated electricity, The Company offers manufacturing solutions for wafer-based crystalline silicon (c-Si) applications. The Company's manufacturing activities consist mainly of assembly, test and integration of various proprietary and commercial parts, components and subassemblies that are used to manufacture systems. The Company has implemented a distributed manufacturing model under which manufacturing and supply chain activities are conducted in various countries, including the United States, Europe, Israel, Singapore, Taiwan and other countries in Asia, and assembly of some systems is completed at customer sites. The Company's customers include manufacturers of semiconductor wafers and chips, flat panel liquid crystal displays, solar PV cells and modules, and other electronic devices. The Company is also a supplier of LCD fabrication equipment to the flat panel display industry, and a supplier of solar PV manufacturing systems to the solar industry, based on revenue. The Company is subject to environmental and safety regulations in connection with its global business operations, including but not limited to: regulations related to the development, manufacture and use of its products; recycling and disposal of materials used in its products or in producing its products; the operation of its facilities; and the use of its real property.
Company Website
SEC Reports
Industry: Semiconductor Equipment & Materials
Compare:ASML, TOELY, KLAC, LRCX, IMI
Traded in other countries:04336.Hongkong, AP2.Germany

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