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>Goertek’s 3Q24 revenue/ net profit rose +2%/+138% YoY, exceeding previous market expectations.</li><li>3Q24 GPM lifted to 11.4% (-2.2 ppts QoQ/+1.2 ppts YoY), mainly due to improving efficiency and better scale effect.</li><li>Looking into 4Q24/FY25E, we expect Goertek’s earnings will continue to rebound given improving GPM YoY, prudent cost control and better AR/VR/gaming demand with multiple product launches from major VR/AR players. </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.

Goertek’s 3Q24 revenue/ net profit rose +2%/+138% YoY, exceeding previous market expectations.3Q24 GPM lifted to 11.4% (-2.2 ppts QoQ/+1.2 ppts YoY), mainly due to improving efficiency and better scale effect.Looking into 4Q24/FY25E, we expect Goertek’s earnings will continue to rebound given improving GPM YoY, prudent cost control and better AR/VR/gaming demand with multiple product launches from major VR/AR players. 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.

Goertek (002241 CH) - 3Q24 Recovery on Track

<ul><li>Goertek’s 1H24 revenue/ net profit growth of -11%/+190% YoY was largely inline with its earlier positive profit alert (net profit +180-200% YoY).</li><li>2Q24 revenue/net profit delivered +0.1%/+168% YoY, and GPM came in at 13.6% (+4.4 ppts QoQ/5.9 ppts YoY), mainly due to improving efficiency and better acoustics product/smart product profitability.</li><li>Looking ahead to 2H24/FY25E, we expect Goertek’s earnings will continue to rebound given improving GPM and better AR/VR/gaming demand with multiple product launches from major VR/AR players. </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.

Goertek’s 1H24 revenue/ net profit growth of -11%/+190% YoY was largely inline with its earlier positive profit alert (net profit +180-200% YoY).2Q24 revenue/net profit delivered +0.1%/+168% YoY, and GPM came in at 13.6% (+4.4 ppts QoQ/5.9 ppts YoY), mainly due to improving efficiency and better acoustics product/smart product profitability.Looking ahead to 2H24/FY25E, we expect Goertek’s earnings will continue to rebound given improving GPM and better AR/VR/gaming demand with multiple product launches from major VR/AR players. 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.

Goertek (002241 CH) - Solid GPM Recovery in 1H24; Poised to Benefit from “AI+XR” Trend in 2H24E

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

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A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Thematic (Sector/Industry)

<ul>
<li>We highlight 10 stocks in China that look interesting to us based on our FVMR Methodology</li>
<li>Portfolio changes: Three stocks remain, seven new join the fray</li>
<li>Since inception, it has gained 172% versus the CSI 300 Index’s return of 62%</li>
</ul>


We highlight 10 stocks in China that look interesting to us based on our FVMR Methodology
Portfolio changes: Three stocks remain, seven new join the fray
Since inception, it has gained 172% versus the CSI 300 Index’s return of 62%


<ul><li>Following a challenging 2023, we expect AI-driven upgrade and AR/VR product launches will boost revenue and profitability recovery in FY24E, and impact of share loss of the major TWS project should normalise in 2H24E. In the longer term, we believe Goertek will continue to benefit from AR/VR secular trend with more product launches from major players such as Meta, Sony, Google, Samsung and Huawei.</li><li>For FY23, revenue/earnings decline of -6%/-38% YoY was mainly dragged by TWS order loss and weak VR/AR demand, but we are encouraged by continued GPM recovery in 4Q23 (10.6% vs. 7.7%/10.1% in 2Q/3Q23).</li><li>To reflect FY23 results and gradual recovery in FY24/25E, we trimmed FY24/25E EPS by 9%/11% and adjusted TP to RMB17.56, based on same 25x FY24E P/E (7-yr hist avg). </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.

Following a challenging 2023, we expect AI-driven upgrade and AR/VR product launches will boost revenue and profitability recovery in FY24E, and impact of share loss of the major TWS project should normalise in 2H24E. In the longer term, we believe Goertek will continue to benefit from AR/VR secular trend with more product launches from major players such as Meta, Sony, Google, Samsung and Huawei.For FY23, revenue/earnings decline of -6%/-38% YoY was mainly dragged by TWS order loss and weak VR/AR demand, but we are encouraged by continued GPM recovery in 4Q23 (10.6% vs. 7.7%/10.1% in 2Q/3Q23).To reflect FY23 results and gradual recovery in FY24/25E, we trimmed FY24/25E EPS by 9%/11% and adjusted TP to RMB17.56, based on same 25x FY24E P/E (7-yr hist avg). 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.

Goertek (002241 CH) - Focus on VR/AR/Gaming Business and Margin Recovery in FY24/25E

<ul>
<li>Apple is widely expected to launch its long-awaited MR headset in WWDC 2023 this week.</li>
<li>We believe 2023 is set to be one of the best years in VR/AR ecosystem development as Apple’s first MR headset will set new standard for innovation.</li>
<li>We expect technology upgrade to accelerate in displays, optics/sensors and tracking/interaction for enhancing user experience. </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 is widely expected to launch its long-awaited MR headset in WWDC 2023 this week.
We believe 2023 is set to be one of the best years in VR/AR ecosystem development as Apple’s first MR headset will set new standard for innovation.
We expect technology upgrade to accelerate in displays, optics/sensors and tracking/interaction for enhancing user experience. 

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 – Apple MR: Long-awaited next “iPhone moment”

China

GoerTek, Inc. manufactures wireless communication products. The Company offers wireless communication devices armed with wireless technology, active noise cancellation headphones, VoIP devices, hands-free headsets, and other electro-acoustic devices. GoerTek serves the telecommunication and electro-acoustic industries worldwide.

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Goertek Inc A (002241 CH)

Goertek (002241 CH) - 3Q24 Recovery on Track

Goertek’s 3Q24 revenue/ net profit rose +2%/+138% YoY, exceeding previous market expectations. 3Q24 GPM lifted to 11.4% (-2.2 ppts QoQ/+1.2 ppts YoY)

CMB International

Goertek (002241 CH) - Solid GPM Recovery in 1H24; Poised to Benefit from “AI+XR” Trend in 2H24E

Goertek’s 1H24 revenue/ net profit growth of -11%/+190% YoY was largely inline with its earlier positive profit alert (net profit +180-200% YoY)

CMB International

The Stocks to Own in China – Vol. 34

We highlight 10 China A stocks that look interesting to us based on our FVMR Methodology. Portfolio changes: Three stocks remain, seven new join...

A. Stotz Investment Research

Goertek (002241 CH) - Focus on VR/AR/Gaming Business and Margin Recovery in FY24/25E

Following a challenging 2023, we expect AI-driven upgrade and AR/VR product launches will boost revenue and profitability recovery in FY24E

CMB International

China Technology – Apple MR: Long-awaited next “iPhone moment”

We believe 2023 is set to be one of the best years in VR/AR ecosystem development as Apple’s first MR headset will set new standard for innovation.

CMB International

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