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.

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

Equity Bottom-Up

<ul><li>We spoke to FIT’s mgmt. following its announcement that its wholly-owned subsidiary FIT Singapore will fully acquire Germany-based automotive component company, Prettl SWH Group (“Prettl”), for EUR186.6mn (6.0 times of FY22E EBITDA).</li><li>The deal is targeted to close by 2Q23E, and the deal value accounts for 23% of FIT’s 1H22 cash.</li><li>We estimate the acquisition is likely to increase FIT’s topline by 7-8% and EPS by 3-4% in FY24E. </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 spoke to FIT’s mgmt. following its announcement that its wholly-owned subsidiary FIT Singapore will fully acquire Germany-based automotive component company, Prettl SWH Group (“Prettl”), for EUR186.6mn (6.0 times of FY22E EBITDA).The deal is targeted to close by 2Q23E, and the deal value accounts for 23% of FIT’s 1H22 cash.We estimate the acquisition is likely to increase FIT’s topline by 7-8% and EPS by 3-4% in FY24E. 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.

FIT Hon Teng (6088 HK) – Positive on the Acquisition of Germany Auto Part Supplier

<ul><li>We spoke to FIT mgmt. last week and remain positive on its solid roadmap of “3+3 Strategy” in FY23/24E.</li><li>We raised FY22-24E EPS by 8-15% and lifted TP to HK$1.84 based on rollovered 8x FY23E P/E (1-sd below hist. avg).</li><li>FIT’s 3Q22 net profit of US$ 50mn (+35% YoY) and revenue of US$ 1.28bn (+11% YoY) beat market expectations, driven by stronger lightening products, EV mobility and Belkin/TWS.</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 spoke to FIT mgmt. last week and remain positive on its solid roadmap of “3+3 Strategy” in FY23/24E.We raised FY22-24E EPS by 8-15% and lifted TP to HK$1.84 based on rollovered 8x FY23E P/E (1-sd below hist. avg).FIT’s 3Q22 net profit of US$ 50mn (+35% YoY) and revenue of US$ 1.28bn (+11% YoY) beat market expectations, driven by stronger lightening products, EV mobility and Belkin/TWS.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.

FIT Hon Teng (6088 HK) – 3Q22 Beat on Solid Execution of “3+3 Strategy”; Raise TP to HK$1.84

Taiwan

FIT Hon Teng Limited manufactures and distributes electrical components. The Company produces backplane connectors, memory cards, sockets, terminal blocks, and other products. FIT Hon Teng markets its products throughout Taiwan.

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FIT Hon Teng (6088 HK)

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