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>We believe BYDE’s recent stock tumble reflected market concerns on smartphone demand recovery, NEV pricing pressure and Jabil’s biz uncertainties.</li><li>After we spoke to BYDE mgmt. this week, we remain positive on Huawei’s comeback and expect Android recovery and titanium upgrade will be positive to shipment/ASP into 1H24E.</li><li>Mgmt. also expected high growth for NEV biz in 2024 thanks to new product rampup, parentco orders and new domestic &amp; overseas order wins. </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 BYDE’s recent stock tumble reflected market concerns on smartphone demand recovery, NEV pricing pressure and Jabil’s biz uncertainties.After we spoke to BYDE mgmt. this week, we remain positive on Huawei’s comeback and expect Android recovery and titanium upgrade will be positive to shipment/ASP into 1H24E.Mgmt. also expected high growth for NEV biz in 2024 thanks to new product rampup, parentco orders and new domestic &amp; overseas order wins. 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.

BYDE (285 HK) - Market Concerns Overdone; Strong NEV and Jabil Mobile Synergies Ahead

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

Event-Driven

<ul>
<li>The review period for the next rebalance of a global index kicks off this week and that is where a lot of eyes will be focused.</li>
<li>There were big inflows to ETFs tracking the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Inde (SHSZ300 INDEX)</a> while there were redemptions from the <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index-etf" target="_blank" data-smartkarma-citation="entities:25:1" rel="noopener">Hang Seng H Share Index ETF (2828 HK)</a>. </li>
<li>Inflows continue for <a href="https://www.smartkarma.com/entities/ishares-msci-emerging-markets-223f5da3-7054-4e4f-bc55-b7f0852c2581" target="_blank" data-smartkarma-citation="entities:31998:1" rel="noopener">iShares Emerging Markets ex China (EMXC US)</a> while there were outflows from <a href="https://www.smartkarma.com/entities/ishares-msci-acwi-etf" target="_blank" data-smartkarma-citation="entities:24402:1" rel="noopener">iShares ACWI ETF (ACWI US)</a>. </li>
</ul>


The review period for the next rebalance of a global index kicks off this week and that is where a lot of eyes will be focused.
There were big inflows to ETFs tracking the Shanghai Shenzhen CSI 300 Inde (SHSZ300 INDEX) while there were redemptions from the Hang Seng H Share Index ETF (2828 HK). 
Inflows continue for iShares Emerging Markets ex China (EMXC US) while there were outflows from iShares ACWI ETF (ACWI US). 


Index Rebalance & ETF Flow Recap: HSI, LQ45, FXI, 2823 HK, SENSEX

<ul><li>We hosted a NDR investor call with BYDE mgmt. yesterday. Overall, mgmt. reiterated its positive view on strong 3Q23 results thanks to robust NEV/new intelligent growth and major Android/US clients’ share gain/upgrade.</li><li>Mgmt. also expected Android recovery, new NEV products, overseas expansion and Jabil synergies to drive growth in FY24/25E.</li><li>The stock now trades at 17.3x/13.8x FY23/24E P/E, which is attractive in our view. Reiterate BUY.</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 a NDR investor call with BYDE mgmt. yesterday. Overall, mgmt. reiterated its positive view on strong 3Q23 results thanks to robust NEV/new intelligent growth and major Android/US clients’ share gain/upgrade.Mgmt. also expected Android recovery, new NEV products, overseas expansion and Jabil synergies to drive growth in FY24/25E.The stock now trades at 17.3x/13.8x FY23/24E P/E, which is attractive in our view. Reiterate BUY.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.

BYDE (285 HK) – NDR Takeaways: Android upside, NEV ramp up and Jabil synergies

<ul><li>BYDE’s 9M23 NP growth of 146% YoY is in-line with profit alert earlier driven by Android recovery and fast-growing new intelligent/NEV business.</li><li>Looking into 4Q, mgmt. guided steady Android recovery on Huawei comeback and auto QoQ growth driven by mass production of cockpit products.</li><li>In addition, we remain positive on Android’s upside, Jabil’s integration with capacity expansion and rapid growth of auto in 2024. </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.

BYDE’s 9M23 NP growth of 146% YoY is in-line with profit alert earlier driven by Android recovery and fast-growing new intelligent/NEV business.Looking into 4Q, mgmt. guided steady Android recovery on Huawei comeback and auto QoQ growth driven by mass production of cockpit products.In addition, we remain positive on Android’s upside, Jabil’s integration with capacity expansion and rapid growth of auto in 2024. 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.

BYDE (285 HK) – Strong 3Q23 In-Line; Android Upside and Auto Accelerated Growth

<ul><li>We raised our SOTP-based TP to HK$45.30 (implied 18.2x P/E) following 3Q23 earnings beat and strong order momentum from Huawei’s Mate 60 series.</li><li>BYDE preannounced 9M23 NP of RMB2,836-3,116mn (up 129-152% YoY), tracking 86%/ 86% of our/consensus FY23E NP estimates.</li><li>Mid-point implies 3Q23 NP growth of 141% YoY (vs 139% YoY in 1H23), well above expectation. </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 raised our SOTP-based TP to HK$45.30 (implied 18.2x P/E) following 3Q23 earnings beat and strong order momentum from Huawei’s Mate 60 series.BYDE preannounced 9M23 NP of RMB2,836-3,116mn (up 129-152% YoY), tracking 86%/ 86% of our/consensus FY23E NP estimates.Mid-point implies 3Q23 NP growth of 141% YoY (vs 139% YoY in 1H23), well above expectation. 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.

BYDE (285 HK) – 3Q23 Beat and Raise; Our Sector Top Pick

China

ZTE Corporation develops and markets switches, access servers, videoconferencing systems, mobile communication systems, data communication devices, and optical communication devices.  The Company also offers networking solutions for setup, refurbishment and optimization of networks.

Suzhou TFC Optical Communication Co., Ltd. researches, develops, and distributes fiber optic components.

Yealink Network Technology Corporation Limited operates as a communication equipment manufacturer. The Company provides telephones, unified communication terminals, video conferencing systems, conference phones, and other accessories. Yealink Network Technology serves customers worldwide.

Yealink Network Technology Cor (300628 CH)

Hengtong Optic-electric Co., Ltd. manufactures and distributes optical fiber and optical cables.

Guangzhou Haige Communications Group Inc Co develops and provides communication products and services.  The Company's products and services include digital communication system, internet communication system, and global positioning system navigation receiver.

Guangzhou Haige Cmncts Grp Inc Co (002465 CH)

China Zhenhua (Group) Science & Technology Co., Ltd. designs, manufactures, and markets electronic components, telecommunication equipment, and electric machines. The Company produces capacitors, integrated circuits, electric resistors, wireless phones, visual phones, and other products. China Zhenhua (Group) Science & Technology also invests in real estate businesses.

China Zhenhua (Group) Science & Tech (000733 CH)

Fiberhome Telecommunication Technologies Co., Ltd. designs and manufactures telecommunication products.  The Company's products include Integrated Broadband Access Systems (IBAS), fiber optics, fiber cables, wires, and products used in the DWDM (Dense Wavelength Division Multiplexing) systems.

Shenzhen Sunway Communication Co., Ltd is mainly engaged in the development, production, marketing and technical support of mobile terminal antenna systems. The company's core products mobile terminal antennas can be applied in portable communications equipment such as mobile phones, laptops and netbooks.

Beijing BDStar Navigation Co., Ltd. provides the location-based system integration, satellite navigation and positioning products and location-based information services.

Beijing Bdstar Navigation Co, Ltd. (002151 CH)

GCI Science & Technology Company Limited develops, designs, sells electronic and information products and provides related services. The Company's main products are communication system and integrated network engineering, network covering equipments, network access equipment and communication systems and equipments.

Ubiquiti Inc. provides wireless networking products and solutions. The Company offers radios, antennas, and management tools that have been designed to deliver carrier class performance for wireless networking and other applications in the unlicensed radio frequency. Ubiquiti operates in the State of New York.

Accton Technology Corporation researches, develops, manufactures, and markets computer network system products such as adapters, hubs, switches, routers, and bridges. The Company also manufactures network computers and network peripheral equipment.

Juniper Networks, Inc. provides Internet infrastructure solutions for Internet service providers and other telecommunications service providers.  The Company offers network infrastructure solutions that includes IP routing, Ethernet switching, security and application acceleration solutions.

F5 Networks, Inc. provides integrated Internet traffic management solutions designed to improve the availability and performance of mission-critical Internet-based servers and applications.  The Company's software-based solutions manage, control and optimize Internet traffic and content.  F5's solutions automatically deliver Internet content for service providers and e-businesses.

Ciena Corporation develops and markets communications network platforms and software, and offers professional services.  The Company's broadband access, data and optical networking platforms, software tools, and global network services support worldwide telecom and cable/MSO services providers, and enterprise and government networks.

EchoStar Corporation manufactures broadcast satellite receivers and antennas, and offers commercial satellite services.

ITI Limited manufactures telecommunications products, including electronic switching equipment, telephones and related devices, digital radio, open wire bags, optical fiber equipment and digital exchanges.   The Group's customers include defense, railways and oil companies.

InterDigital, Inc. develops technology for advanced digital wireless telecommunications applications.  The Company offers both time division multiple access and wide band code division multiple access proprietary and standards compliant digital wireless technology to customers, licensees, and companies.

Lumentum Holdings Inc. operates as a holding company. The Company, through its subsidiaries, supplies optical and photonic products. Lumentum Holdings serves data communications and telecommunications, networking, and life-sciences markets worldwide.

Wistron NeWeb Corporation manufactures wireless communication systems.  The Company's products include satellite communication, wireless networking, embedded antenna, and mobile handset products.

BYD Electronic International Co., Ltd. researches, develops, manufactures handset components such as handset casings and handset keypads and modules for handset manufacturers.  The Company also provides assembly services comprising assembly service and PCB assembly service to global handset manufacturers.

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BYD Electronics (285 HK)

BYDE (285 HK) - Market Concerns Overdone; Strong NEV and Jabil Mobile Synergies Ahead

We believe BYDE’s recent stock tumble reflected market concerns on smartphone demand recovery, NEV pricing pressure and Jabil’s biz uncertainties.

CMB International

Index Rebalance & ETF Flow Recap: HSI, LQ45, FXI, 2823 HK, SENSEX

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

BYDE (285 HK) – NDR Takeaways: Android upside, NEV ramp up and Jabil synergies

We hosted a NDR investor call with BYDE mgmt. yesterday. Overall, mgmt. reiterated its positive view on strong 3Q23 results thanks to robust...

CMB International

BYDE (285 HK) – Strong 3Q23 In-Line; Android Upside and Auto Accelerated Growth

BYDE’s 9M23 NP growth of 146% YoY is in-line with profit alert earlier driven by Android recovery and fast-growing new intelligent/NEV business.

CMB International

BYDE (285 HK) – 3Q23 Beat and Raise; Our Sector Top Pick

We raised our SOTP-based TP to HK$45.30 (implied 18.2x P/E) following 3Q23 earnings beat and strong order momentum from Huawei’s Mate 60 series.

CMB International

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