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

AAC Technologies Holdings / Equity Bottom-Up

<ul><li>AAC delivered 2H24 revenue/NP growth of 44%/114% YoY, with earnings 2%/8% above our/consensus estimates, thanks to strength across all segments and strong GPM at 22.5% (vs 19.2%/21.5% in 2H23/1H24).</li><li>Looking into 2025, we are positive on AAC as a major beneficiary of spec upgrade (acoustics/optics/MEMS/VC) for AI smartphones/AI glasses and global share gains in auto acoustics.</li><li>Overall, we lift our FY25-26E EPS estimates by 10%/7% to factor in FY24 results, better GPM outlook and spec upgrade opportunities across multiple edge AI devices in 2025-26. </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.

AAC delivered 2H24 revenue/NP growth of 44%/114% YoY, with earnings 2%/8% above our/consensus estimates, thanks to strength across all segments and strong GPM at 22.5% (vs 19.2%/21.5% in 2H23/1H24).Looking into 2025, we are positive on AAC as a major beneficiary of spec upgrade (acoustics/optics/MEMS/VC) for AI smartphones/AI glasses and global share gains in auto acoustics.Overall, we lift our FY25-26E EPS estimates by 10%/7% to factor in FY24 results, better GPM outlook and spec upgrade opportunities across multiple edge AI devices in 2025-26. 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.

AAC Tech (2018 HK) - Beneficiary of Edge AI Upgrade Cycle; Raise TP to HK$58.78

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The review period for the June rebalance of the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">HSTECH INDEX</a> ended on 31 March, the changes will be announced on 16 May and implemented on 6 June.</li>
<li>Following the launch of the God's Eye ADAS, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> could become eligible for index inclusion after meeting the Autonomous theme and Innovation screening.</li>
<li>The inclusion of <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> in the index could result in <a href="https://www.smartkarma.com/entities/china-literature-ltd" target="_blank" data-smartkarma-citation="entities:24388:1" rel="noopener">China Literature (772 HK)</a> being deleted from the index in June.</li>
</ul>


The review period for the June rebalance of the HSTECH INDEX ended on 31 March, the changes will be announced on 16 May and implemented on 6 June.
Following the launch of the God's Eye ADAS, BYD (1211 HK) could become eligible for index inclusion after meeting the Autonomous theme and Innovation screening.
The inclusion of BYD (1211 HK) in the index could result in China Literature (772 HK) being deleted from the index in June.


HSTECH Index Rebalance Preview: BYD (1211 HK) Could Replace China Literature (772 HK); Huge Trade

<ul><li>AAC reported a positive profit alert with 2024 earnings growth of 130-145% YoY to RMB 1.7bn-1.82bn, with mid-point in-line with our estimates and 5% above consensus.</li><li>The strong results were driven by global smartphone recovery, spec upgrade across segments (acoustics/MEMS/haptics/thermal/optics), auto acoustics PSS integration and improving efficiency.</li><li>Looking ahead to 2025, we believe AAC will continue to benefit from content value increase in AI/foldable phones (acoustics/MEMS/thermal/haptics/hinge/optics), AI smart glasses (MEMS/acoustics), and order wins in auto acoustics (Xiaomi/HW/Li/XPeng). </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.

AAC reported a positive profit alert with 2024 earnings growth of 130-145% YoY to RMB 1.7bn-1.82bn, with mid-point in-line with our estimates and 5% above consensus.The strong results were driven by global smartphone recovery, spec upgrade across segments (acoustics/MEMS/haptics/thermal/optics), auto acoustics PSS integration and improving efficiency.Looking ahead to 2025, we believe AAC will continue to benefit from content value increase in AI/foldable phones (acoustics/MEMS/thermal/haptics/hinge/optics), AI smart glasses (MEMS/acoustics), and order wins in auto acoustics (Xiaomi/HW/Li/XPeng). 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.

AAC Tech (2018 HK) - Multiple Growth Drivers and Improving Margin to Continue into 2025

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Hong Kong continued a correction in its Bull market which has lifted the HSCEI to be the best performing Asian index this year.  Southboune buying is strong.</li>
<li>
<a href="https://www.smartkarma.com/entities/aac-technologies-holdings-inc" target="_blank" data-smartkarma-citation="entities:6544:1" rel="noopener">AAC Technologies Holdings (2018 HK)</a> share price had a breakout relative to the MSCI AC Asia Index.  The company reported solid results benifitting from the smartphone and auto sectors.
</li>
<li>
<a href="https://www.smartkarma.com/entities/cgn-power-co-ltd-h" target="_blank" data-smartkarma-citation="entities:58:1" rel="noopener">CGN Power (1816 HK)</a> share price relative to MSCI China broke down.  The company reported a disappointing 3Q24 results even as power generation increased by 15% YoY for the period.
</li>
</ul>


Hong Kong continued a correction in its Bull market which has lifted the HSCEI to be the best performing Asian index this year.  Southboune buying is strong.

AAC Technologies Holdings (2018 HK) share price had a breakout relative to the MSCI AC Asia Index.  The company reported solid results benifitting from the smartphone and auto sectors.


CGN Power (1816 HK) share price relative to MSCI China broke down.  The company reported a disappointing 3Q24 results even as power generation increased by 15% YoY for the period.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (NOVEMBER 25)

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

AAC Technologies Holdings Inc is a China-based company formed in 1993 and incorporated in the Cayman Islands. It was listed on the Hong Kong Stock Exchange in 2005. AAC is one of the world's leading solution providers for smart devices, with: [1] cutting-edge technologies in materials research; and [2] simulation, algorithm, design, automation and process development in areas including acoustics, optics, as well as electromagnetic drives and precision mechanics. The company also offers advanced miniaturised and proprietary technology solutions.

AAC Technologies Holdings Inc is a China-based company formed in 1993 and incorporated in the Cayman Islands. It was listed on the Hong Kong Stock Exchange in 2005. AAC is one of the world's leading solution providers for smart devices, with: [1] cutting-edge technologies in materials research; and [2] simulation, algorithm, design, automation and process development in areas including acoustics, optics, as well as electromagnetic drives and precision mechanics. The company also offers advanced miniaturised and proprietary technology solutions.

AAC Technologies - ESG Report - Lucror Analytics

China

AAC Technologies Holdings Inc designs, develops and manufactures a broad range of miniaturized components that include speakers, receivers and microphones in the acoustic segment and others such as haptics vibrators, RF and antennas, and optical lenses. AAC's products are found in mobile devices such as smartphones, tablets, wearables, ultrabooks, notebooks and electronic book-readers.

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AAC Technologies Holdings (2018 HK)

AAC Tech (2018 HK) - Beneficiary of Edge AI Upgrade Cycle; Raise TP to HK$58.78

Our new SOTP-based TP of HK$58.78 implies 25.2x FY25E P/E. Reiterate BUY. Nearterm catalysts include AI glasses/phone upgrade, auto client wins and...

CMB International

HSTECH Index Rebalance Preview: BYD (1211 HK) Could Replace China Literature (772 HK); Huge Trade

BYD could replace China Literature in the HSTECH in June. There will be FAF upweights for a few stocks. Funding outflows will be big and there will...

Brian Freitas

AAC Tech (2018 HK) - Multiple Growth Drivers and Improving Margin to Continue into 2025

AAC reported a positive profit alert with 2024 earnings growth of 130-145% YoY to RMB 1.7bn-1.82bn, with mid-point in-line with our estimates and...

CMB International

Technically Speaking, Breakouts and Breakdowns: HONG KONG (NOVEMBER 25)

Southbound buying in HK continued strong with Value Factor providing the best returns.AAC Tech share price had a break out as it provided strong...

David Mudd

AAC Technologies - ESG Report - Lucror Analytics

AAC Technologies Holdings Inc is a China-based company formed in 1993 and incorporated in the Cayman Islands. It was listed on the Hong Kong Stock...

Lucror Analytics

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