External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

JF Wealth Holdings Ltd operates as an online investment decision making solution provider. The Company provides online high end investor education services, online financial literacy education services, financial information software services, and other services. JF Wealth Holdings provides its services throughout Hong Kong.

<ul><li>JF SmartInvest is a leading online investment decision-making solution provider in China leveraging its scaled MCN matrix to capitalize on the wave of retail investors entering the A-share market.</li><li>The company’s share price is highly beta-driven, with a correlation with the A-share market turnover at 78% as of Dec 12, 2025(Fig.5).</li><li>In an era of thriving new media ecosystem, we see a paradigm shift in traffic generation from a phase of “platform-driven” to “content-driven”, which benefits the platforms with quality content and strong engagement to capture users’ attention. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

JF SmartInvest is a leading online investment decision-making solution provider in China leveraging its scaled MCN matrix to capitalize on the wave of retail investors entering the A-share market.The company’s share price is highly beta-driven, with a correlation with the A-share market turnover at 78% as of Dec 12, 2025(Fig.5).In an era of thriving new media ecosystem, we see a paradigm shift in traffic generation from a phase of “platform-driven” to “content-driven”, which benefits the platforms with quality content and strong engagement to capture users’ attention. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

JF SmartInvest (9636 HK) - Seizing Opportunities Amid a Traffic Paradigm Shift

Thematic (Sector/Industry)

<ul><li>We believe 2026 will be a pivotal year for competing for user mindshare in the AI era, with key focuses on lowering AI adoption thresholds, improving decision-making efficiency, and creating real value.</li><li>Among traditional internet businesses, companies that possess these three characteristics are expected to have higher long-term investment value: 1) stable cash flow to support AIrelated investment and exploration; 2) rich application scenarios to accumulate data and reach users; and 3) outstanding supply chain capabilities and operational excellence to drive overseas expansion for incremental growth.</li><li>We still recommend adopting a barbell investment strategy, while focusing on both the certainty of profit growth and new increments brought by AI. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We believe 2026 will be a pivotal year for competing for user mindshare in the AI era, with key focuses on lowering AI adoption thresholds, improving decision-making efficiency, and creating real value.Among traditional internet businesses, companies that possess these three characteristics are expected to have higher long-term investment value: 1) stable cash flow to support AIrelated investment and exploration; 2) rich application scenarios to accumulate data and reach users; and 3) outstanding supply chain capabilities and operational excellence to drive overseas expansion for incremental growth.We still recommend adopting a barbell investment strategy, while focusing on both the certainty of profit growth and new increments brought by AI. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Internet - 2026 Outlook- Bridging legacy and future: A pivotal year

<ul><li>Looking ahead to 2026, we believe competition in the large language model (LLM) industry will further intensify, while monetization of AI applications in niche segments should see continued momentum.</li><li>We are optimistic about the further monetization potential driven by improved AI agent capabilities, as well as increased paid user penetration and monetization from advanced image editing and video generation LLMs.</li><li>We currently do not anticipate overinvestment risks among cloud service providers, and expect 2026 earnings growth of US-listed leaders to support their valuations. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Looking ahead to 2026, we believe competition in the large language model (LLM) industry will further intensify, while monetization of AI applications in niche segments should see continued momentum.We are optimistic about the further monetization potential driven by improved AI agent capabilities, as well as increased paid user penetration and monetization from advanced image editing and video generation LLMs.We currently do not anticipate overinvestment risks among cloud service providers, and expect 2026 earnings growth of US-listed leaders to support their valuations. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

US Internet & Software - 2026 outlook: AI applications to ramp up; eyes on AI investment return

Macroeconomics

<ul><li>At the time of writing, JP lifers have outstanding USD papers totaled USD27.5bn, representing 45% of the total outstanding USD papers issued by Asian lifers.</li><li>We view JP lifers USD hybrids as high-quality diversification plays in view of these lifers’ solid capitalization and resulting refinancing capacity.</li><li>The structure of subordinated capital papers of JP lifers (except RESLIF 6.875 Perp) are more investor-friendly compared to those issued by Australia, mainland China and Singapore, in view of the absence of principal write‑down or equity conversion features, while the distribution is cumulative in case of deferral</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

At the time of writing, JP lifers have outstanding USD papers totaled USD27.5bn, representing 45% of the total outstanding USD papers issued by Asian lifers.We view JP lifers USD hybrids as high-quality diversification plays in view of these lifers’ solid capitalization and resulting refinancing capacity.The structure of subordinated capital papers of JP lifers (except RESLIF 6.875 Perp) are more investor-friendly compared to those issued by Australia, mainland China and Singapore, in view of the absence of principal write‑down or equity conversion features, while the distribution is cumulative in case of deferralContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CMBI Fixed Income - Japan Lifers: Yield Pick-Up Plays over Peers

Zhongji Innolight Co., Ltd. manufactures and distributes industrial machines and machine parts. The Company produces motor stator windings, insulating machines, coil winding equipment, automatic production lines, and more. Zhongji Innolight mainly conducts businesses domestically.

<ul><li>2025 has proven a standout year for optical transceiver suppliers with high AI exposure, with domestic industry leader Innolight delivering stellar 9M25 results: Revenue and net profit soared 44%/90% YoY, while 3Q25 gross margin expanded 9ppt to 43% from a year ago.</li><li>Strong financials fueled a share price rally, with Innolight’s stock surging 380%+ YTD as of Dec 11.</li><li>Looking ahead into 2026, we double down on AI as one of our key themes, underpinned by an unabated AI infrastructure investment cycle and a sustained mix shift to higher value solutions (i.e., 1.6T). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

2025 has proven a standout year for optical transceiver suppliers with high AI exposure, with domestic industry leader Innolight delivering stellar 9M25 results: Revenue and net profit soared 44%/90% YoY, while 3Q25 gross margin expanded 9ppt to 43% from a year ago.Strong financials fueled a share price rally, with Innolight’s stock surging 380%+ YTD as of Dec 11.Looking ahead into 2026, we double down on AI as one of our key themes, underpinned by an unabated AI infrastructure investment cycle and a sustained mix shift to higher value solutions (i.e., 1.6T). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Innolight (300308 CH) - A Clear Beneficiary of Global AI Infrastructure Capex