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

<ul><li>BOEVx hosted an investor call on 9 Jun regarding business update and 3-year strategy roadmap.</li><li>Mgmt. shared its 2025 guidancefor the first time: 1) revenue target of HK$20bn in 2025 (23% FY22-25E CAGR), 2) global market share to reach 25% in 2025 (vs ~20% in 2022), 3) Overseas sales mix of 50% by 2025 (vs 30% in FY23E), and 4) new technology (OLED/mini/LTOP) sales mix to target 50% in 2025.</li><li>In near term, despite margin pressure on automobile price cut and Chengdu capacity rampup in 1Q23, mgmt. expects strong new orders and Chengdu UTR ramp-up (100% in 3Q23E) will drive margin recovery in 2H23E.</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.

BOEVx hosted an investor call on 9 Jun regarding business update and 3-year strategy roadmap.Mgmt. shared its 2025 guidancefor the first time: 1) revenue target of HK$20bn in 2025 (23% FY22-25E CAGR), 2) global market share to reach 25% in 2025 (vs ~20% in 2022), 3) Overseas sales mix of 50% by 2025 (vs 30% in FY23E), and 4) new technology (OLED/mini/LTOP) sales mix to target 50% in 2025.In near term, despite margin pressure on automobile price cut and Chengdu capacity rampup in 1Q23, mgmt. expects strong new orders and Chengdu UTR ramp-up (100% in 3Q23E) will drive margin recovery in 2H23E.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.

BOE Varitronix (710 HK) – A clear 2025 strategic roadmap; Reiterate BUY on recent correction

Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

<ul><li>Intron, which is a provider of electronic solutions, mainly for vehicles, announced its 2022 annual result with a net profit growth of 107% on 52% growth in revenue and GPM expansion of 1.9 ppts to 21.5%.</li><li>The company has benefited from the strong growth in the NEV market in China as NEVs tend to packed with more electronic parts and components for many advanced features.</li><li>Although there is intense price competition in the auto market in China currently, this could offer more opportunities to the company as OEMs seek for more price competitive solutions from third-party suppliers. Intron is currently trading at 12x 2023 consensus P/E.</li></ul>

Intron, which is a provider of electronic solutions, mainly for vehicles, announced its 2022 annual result with a net profit growth of 107% on 52% growth in revenue and GPM expansion of 1.9 ppts to 21.5%.The company has benefited from the strong growth in the NEV market in China as NEVs tend to packed with more electronic parts and components for many advanced features.Although there is intense price competition in the auto market in China currently, this could offer more opportunities to the company as OEMs seek for more price competitive solutions from third-party suppliers. Intron is currently trading at 12x 2023 consensus P/E.

Intron (1760 HK, NR) - OEM Price War Could Be an Opportunity

<ul><li>BOEVx reported strong revenue/NP growth of 39%/78% YoY in FY22 driven by solid auto display demand, better product mix and economies of scale.</li><li>Looking into 2023, we expect Chengdu plant fast expansion, CMS and US market will become major growth drivers, while ASP/GPM in 1H23E will be under pressure given near-term auto OEM price war and new biz ramp-up. </li><li>Therefore, we adjusted our FY23/24E EPS and assigned new TP of HK$23.69, based on same 25x FY23E P/E.</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.

BOEVx reported strong revenue/NP growth of 39%/78% YoY in FY22 driven by solid auto display demand, better product mix and economies of scale.Looking into 2023, we expect Chengdu plant fast expansion, CMS and US market will become major growth drivers, while ASP/GPM in 1H23E will be under pressure given near-term auto OEM price war and new biz ramp-up. Therefore, we adjusted our FY23/24E EPS and assigned new TP of HK$23.69, based on same 25x FY23E P/E.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.

BOE Varitronix (710 HK) – Strong FY22 Results

Thematic (Sector/Industry)

<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>We hosted NDR meetings with BOE Varitronix on 12 Jan. Mgmt. maintained positive view on automotive intelligence and smart-cockpit, and expected limited impact from recent industry updates (China NEV subsidy expiry and Tesla price cut) thanks to its focus on both traditional and NEV customers, pricing strategy and cost advantage.</li><li>In addition, Chengdu auto display turned profitable in 4Q22 and is on track to reach maximum capacity of 15mn by 2024E.</li><li>Overall, we remain positive on auto display upgrade trend, new client wins, and Chengdu plant to drive growth. Reiterate BUY with TP HK$26.01 based on 25x FY23E P/E.</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 hosted NDR meetings with BOE Varitronix on 12 Jan. Mgmt. maintained positive view on automotive intelligence and smart-cockpit, and expected limited impact from recent industry updates (China NEV subsidy expiry and Tesla price cut) thanks to its focus on both traditional and NEV customers, pricing strategy and cost advantage.In addition, Chengdu auto display turned profitable in 4Q22 and is on track to reach maximum capacity of 15mn by 2024E.Overall, we remain positive on auto display upgrade trend, new client wins, and Chengdu plant to drive growth. Reiterate BUY with TP HK$26.01 based on 25x FY23E P/E.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.

BOE Varitronix (710 HK) – Chengdu Auto Display Capacity Ramp-Up on Track

Hong Kong

BOE Varitronix Limited designs, manufactures, and sells small-to-medium sized LCDs (liquid crystal displays) and related products. The Company offers displays for dashboards, clock, rear seat, power meter, washing machines, ovens, blood glucose meters, dental instruments, and label printers. BOE Vanitronix markets its products worldwide.

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BOE Varitronix (710 HK)