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>Intron Tech reported 1H24 revenue of RMB 2.84bn (+8% YoY) and net profit of RMB 97.7mn (-37% YoY), both below our/consensus estimates, mainly due to the GPM decline to 15.9% (-4.7ppts YoY) on intensified competition and price pressure from auto OEM customers.</li><li>Looking ahead to 2H24E, mgmt. guided net profit margin to recover HoH on new order wins in new energy/ADAS and overseas customer expansion.</li><li>We trim FY24-25E EPS by 43-49% to factor in the 1H24 miss, margin pressure and weaker topline growth. </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.

Intron Tech reported 1H24 revenue of RMB 2.84bn (+8% YoY) and net profit of RMB 97.7mn (-37% YoY), both below our/consensus estimates, mainly due to the GPM decline to 15.9% (-4.7ppts YoY) on intensified competition and price pressure from auto OEM customers.Looking ahead to 2H24E, mgmt. guided net profit margin to recover HoH on new order wins in new energy/ADAS and overseas customer expansion.We trim FY24-25E EPS by 43-49% to factor in the 1H24 miss, margin pressure and weaker topline growth. 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.

Intron Tech (1760 HK) - 1H24 Below on Weaker Margin

<ul><li>Intron Tech’s FY23 revenue of RMB 5.8bn (+20% YoY) and net income of RMB 317mn (-23.5% YoY) are mostly in-line with our estimates.</li><li>GPM came in at 18.7% (-2.8ppts YoY) which was slightly below our estimates, and mgmt. attributed lower GPM to intensified price competition from downstream OEMs.</li><li>R&amp;D expense ratio reached 9.0% due to R&amp;D hires and upfront software/equipment investments, and mgmt. expected gradually normalized R&amp;D spending 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.

Intron Tech’s FY23 revenue of RMB 5.8bn (+20% YoY) and net income of RMB 317mn (-23.5% YoY) are mostly in-line with our estimates.GPM came in at 18.7% (-2.8ppts YoY) which was slightly below our estimates, and mgmt. attributed lower GPM to intensified price competition from downstream OEMs.R&amp;D expense ratio reached 9.0% due to R&amp;D hires and upfront software/equipment investments, and mgmt. expected gradually normalized R&amp;D spending 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.

Intron Tech (1760 HK) - FY23 Mostly In-Line; Expect Easing Headwinds in FY24E

<ul><li>Intron Tech will announce its FY23 results next week. We estimate FY23E revenue of RMB 5.76bn (+19% YoY) and net income of RMB 319mn (-23% YoY), mainly due to pricing pressure from downstream OEM, weaker cloud server, higher R&amp;D expenses and interest costs.</li><li>Looking ahead, while we think industry headwinds will remain in 1H24E given downstream OEMs’ price pressure, we are positive on Intron’s share gain on industry leadership and secular trends of automotive electrification and intelligence.</li><li>We adjusted FY23- 25E EPS to factor in slower sales growth and higher R&amp;D/interest expenses.</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.

Intron Tech will announce its FY23 results next week. We estimate FY23E revenue of RMB 5.76bn (+19% YoY) and net income of RMB 319mn (-23% YoY), mainly due to pricing pressure from downstream OEM, weaker cloud server, higher R&amp;D expenses and interest costs.Looking ahead, while we think industry headwinds will remain in 1H24E given downstream OEMs’ price pressure, we are positive on Intron’s share gain on industry leadership and secular trends of automotive electrification and intelligence.We adjusted FY23- 25E EPS to factor in slower sales growth and higher R&amp;D/interest expenses.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.

Intron Tech (1760 HK) - FY23E Preview: Industry Headwinds Mostly Priced In

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Sunny Optical Technology Group / Equity Bottom-Up

<ul>
<li>The Hong Kong market trades about 30% below analysts' estimated 12 month target price.</li>
<li>Analysts are raising forecasts for<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> as it meets success with new phone rollouts and its EV business.  </li>
<li>
<a href="https://www.smartkarma.com/entities/sunny-optical-technology-group" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical Technology Group (2382 HK)</a> had a positive profit alert and <a href="https://www.smartkarma.com/entities/minth-group-ltd" target="_blank" data-smartkarma-citation="entities:9232:1" rel="noopener">Minth Group Ltd (425 HK)</a> is showing growth in its international business. Both are rated BUY from analysts.</li>
</ul>


The Hong Kong market trades about 30% below analysts' estimated 12 month target price.
Analysts are raising forecasts forXiaomi Corp (1810 HK) as it meets success with new phone rollouts and its EV business.  

Sunny Optical Technology Group (2382 HK) had a positive profit alert and Minth Group Ltd (425 HK) is showing growth in its international business. Both are rated BUY from analysts.


BUY/SELL/HOLD: Hong Kong Stock Updates (July 22)

<ul><li>Intron Tech’s 1H23 revenue of RMB 2.63bn (+26.5% YoY) was slightly below our expectation, while attributable net income of RMB 154mn (+1.2% YoY) was 19% below our estimate mainly due to weaker cloud server segment, weaker gross margin and significant increase in R&amp;D expense.</li><li>Mgmt. attributed higher R&amp;D expense to talent recruitment and software/equipment acquirements, and expected gradually normalized R&amp;D spending towards 2H23/FY24E.</li><li>Overall, we are positive on 2H23E earnings recovery driven by traditional peak season, normalised R&amp;D spending and new product shipment. </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.

Intron Tech’s 1H23 revenue of RMB 2.63bn (+26.5% YoY) was slightly below our expectation, while attributable net income of RMB 154mn (+1.2% YoY) was 19% below our estimate mainly due to weaker cloud server segment, weaker gross margin and significant increase in R&amp;D expense.Mgmt. attributed higher R&amp;D expense to talent recruitment and software/equipment acquirements, and expected gradually normalized R&amp;D spending towards 2H23/FY24E.Overall, we are positive on 2H23E earnings recovery driven by traditional peak season, normalised R&amp;D spending and new product shipment. 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.

Intron Technology (1760 HK) – 1H23 Results Below; Expect Back-Loaded in 2H23E

Hong Kong

Intron Technology Holdings Limited manufactures automobile parts. The Company produces oil pumps, motors, colling fan control systems, body control, and powertrain systems. Intron Technology Holdings markets its products in Hong Kong.

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Intron Technology (1760 HK)

Intron Tech (1760 HK) - 1H24 Below on Weaker Margin

Intron Tech reported 1H24 revenue of RMB 2.84bn (+8% YoY) and net profit of RMB 97.7mn (-37% YoY), both below our/consensus estimates, mainly due...

CMB International

Intron Tech (1760 HK) - FY23 Mostly In-Line; Expect Easing Headwinds in FY24E

Intron Tech’s FY23 revenue of RMB 5.8bn (+20% YoY) and net income of RMB 317mn (-23.5% YoY) are mostly in-line with our estimates.

CMB International

Intron Tech (1760 HK) - FY23E Preview: Industry Headwinds Mostly Priced In

We estimate FY23E revenue of RMB 5.76bn (+19% YoY) and net income of RMB 319mn (-23% YoY), mainly due to pricing pressure from downstream OEM,...

CMB International

BUY/SELL/HOLD: Hong Kong Stock Updates (July 22)

Xiaomi launches its new AI enabled phone and has success in EVs. Sunny Optical has seen its auto lens business grow and Minth is successfully...

David Mudd

Intron Technology (1760 HK) – 1H23 Results Below; Expect Back-Loaded in 2H23E

Mgmt. attributed higher R&D expense to talent recruitment and software/equipment acquirements, and expected gradually normalized R&D spending...

CMB International

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