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>AACs 4Q22 net profit (+12% YoY) was 5%/6% below our/consensus estimates, mainly due to widening loss from optics segment, while revenue exceeded expectations with 21% YoY growth given stronger camera modules in our view.</li><li>4Q GPM came in at 16.6%, well below expectations due to impairment of optics segment. By segment, acoustics/optics/EMD&amp;PM/Sensor revenue grew 6%/ 56%/28%/50% YoY.</li><li>Mgmt. reiterated confidence to improve profitability and efficiency in FY23E with cost control and lower CAPEX.</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.

AACs 4Q22 net profit (+12% YoY) was 5%/6% below our/consensus estimates, mainly due to widening loss from optics segment, while revenue exceeded expectations with 21% YoY growth given stronger camera modules in our view.4Q GPM came in at 16.6%, well below expectations due to impairment of optics segment. By segment, acoustics/optics/EMD&amp;PM/Sensor revenue grew 6%/ 56%/28%/50% YoY.Mgmt. reiterated confidence to improve profitability and efficiency in FY23E with cost control and lower CAPEX.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) – 4Q22 slightly below; recovery remains bumpy

<ul><li>AAC will report 4Q22 results on 23 Mar. We estimate 4Q revenue/net profit to increase 16%/18% YoY to RMB 5,579mn/250mn, slightly below consensus, mainly driven by stronger demand in Apple‘s acoustics/haptics and Toyo’s PM sales contribution despite pressure in optics segment.</li><li>By segment, we expect acoustics/ED&amp;PM/optics to grow 2%/31%/29% YoY in 4Q22E.</li><li>Looking ahead, given Android’s ongoing inventory destocking and Apple’s weak seasonality in 1H23E, we believe demand weakness and loss-making optics segment will drag earnings recovery for AAC in the near term. </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 will report 4Q22 results on 23 Mar. We estimate 4Q revenue/net profit to increase 16%/18% YoY to RMB 5,579mn/250mn, slightly below consensus, mainly driven by stronger demand in Apple‘s acoustics/haptics and Toyo’s PM sales contribution despite pressure in optics segment.By segment, we expect acoustics/ED&amp;PM/optics to grow 2%/31%/29% YoY in 4Q22E.Looking ahead, given Android’s ongoing inventory destocking and Apple’s weak seasonality in 1H23E, we believe demand weakness and loss-making optics segment will drag earnings recovery for AAC in the near term. 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) – 4Q22 Preview: earnings recovery remains bumpy; Maintain HOLD

Thematic (Sector/Industry)

<ul><li>Apple reported a FY1Q (CY4Q22) with EPS of US$1.88 (-10% YoY) and revenue of US$117.2bn (-5% YoY), which are 3.1% and 3.3% below consensus, largely due to weak macro and iPhone 14 Pro/Max supply chain constraints on COVID-19 in China.</li><li>Looking into FY2Q23, mgmt. expected revenue to perform similarly to FY1Q23 (-5% YoY) with iPhone to accelerate and Mac/iPad to decline double digit YoY.</li><li>Given the challenging revenue outlook, we expect near-term profit taking on slower iPhone/Mac/iPad, but we remain positive on Apple supply chain over Android camp in 2H23E, given iPhone replacement cycle and share gain from Samsung/Android camp. </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.

Apple reported a FY1Q (CY4Q22) with EPS of US$1.88 (-10% YoY) and revenue of US$117.2bn (-5% YoY), which are 3.1% and 3.3% below consensus, largely due to weak macro and iPhone 14 Pro/Max supply chain constraints on COVID-19 in China.Looking into FY2Q23, mgmt. expected revenue to perform similarly to FY1Q23 (-5% YoY) with iPhone to accelerate and Mac/iPad to decline double digit YoY.Given the challenging revenue outlook, we expect near-term profit taking on slower iPhone/Mac/iPad, but we remain positive on Apple supply chain over Android camp in 2H23E, given iPhone replacement cycle and share gain from Samsung/Android camp. 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.

China Technology Sector – Apple FY1Q23 Miss on Macro and Supply Chain Issues

<ul><li>IDC released 4Q22 global smartphone shipment with 18% YoY decline (vs -9.3% in 3Q22), mainly due to weak consumer demand, rising inflation and China COVID-19 impact.</li><li>For 2022, global smartphone shipment fell 11% YoY to 1.21bn unit, marking the lowest annual shipment since 2013.</li><li>By brand, Apple/ Samsung/Xiaomi/Oppo/Vivo declined 15%/16%/26%/16%/19% YoY in 4Q22.</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.

IDC released 4Q22 global smartphone shipment with 18% YoY decline (vs -9.3% in 3Q22), mainly due to weak consumer demand, rising inflation and China COVID-19 impact.For 2022, global smartphone shipment fell 11% YoY to 1.21bn unit, marking the lowest annual shipment since 2013.By brand, Apple/ Samsung/Xiaomi/Oppo/Vivo declined 15%/16%/26%/16%/19% YoY in 4Q22.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.

China Technology - 4Q22 Global Smartphone Shipment Down 18% YoY

<ul><li>Apple supply chain was under pressure (Luxshare/BYDE/Sunny Optical/Cowell) yesterday following report of order cuts for AirPods, Watch and MacBooks in 1Q23E due to a softer consumer backdrop.</li><li>While we are not surprised by order correction after a soft holiday season in Dec, we believe Apple supply chain will remain volatile in near term amid rising uncertainties on 1Q23 outlook and profit taking pressure after 30%+ rally since Nov.</li><li>We recommend to stay on the sidelines until more visibility on Apple’s earnings on 26 Jan. </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.

Apple supply chain was under pressure (Luxshare/BYDE/Sunny Optical/Cowell) yesterday following report of order cuts for AirPods, Watch and MacBooks in 1Q23E due to a softer consumer backdrop.While we are not surprised by order correction after a soft holiday season in Dec, we believe Apple supply chain will remain volatile in near term amid rising uncertainties on 1Q23 outlook and profit taking pressure after 30%+ rally since Nov.We recommend to stay on the sidelines until more visibility on Apple’s earnings on 26 Jan. 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.

China Technology – Limited Surprise on Apple Order Cut

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) – 4Q22 slightly below; recovery remains bumpy

AACs 4Q22 net profit (+12% YoY) was 5%/6% below our/consensus estimates, mainly due to widening loss from optics segment, while revenue exceeded...

CMB International

AAC Tech (2018 HK) – 4Q22 Preview: earnings recovery remains bumpy; Maintain HOLD

AAC will report 4Q22 results on 23 Mar. We estimate 4Q revenue/net profit to increase 16%/18% YoY to RMB 5,579mn/250mn, slightly below consensus

CMB International

China Technology Sector – Apple FY1Q23 Miss on Macro and Supply Chain Issues

Apple reported a FY1Q (CY4Q22) with EPS of US$1.88 (-10% YoY) and revenue of US$117.2bn (-5% YoY), which are 3.1% and 3.3% below consensus

CMB International

China Technology - 4Q22 Global Smartphone Shipment Down 18% YoY

IDC released 4Q22 global smartphone shipment with 18% YoY decline (vs -9.3% in 3Q22), mainly due to weak consumer demand, rising inflation and...

CMB International

China Technology – Limited Surprise on Apple Order Cut

Apple supply chain was under pressure (Luxshare/BYDE/Sunny Optical/Cowell) yesterday following report of order cuts for AirPods, Watch and MacBooks...

CMB International

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