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>Innolight released its 3Q results. Revenue went up by 115.2% YoY/9.4% QoQ, while net profit went up by 104.4% YoY/3.3% QoQ, in-line with our expectations.</li><li>Mgmt. attributed the slower sequential revenue growth (9.4% in 3Q24 vs. 31.3%/23% in 1Q/2Q24) to two main factors: 1) supply chain bottlenecks of key components (like DSPs &amp; EMLs), and 2) unfavorable fluctuations in the USD/RMB exchange rate during 3Q.</li><li>Excluding the impact of exchange rate movements, the company still achieved double-digit revenue growth in 3Q.</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.

Innolight released its 3Q results. Revenue went up by 115.2% YoY/9.4% QoQ, while net profit went up by 104.4% YoY/3.3% QoQ, in-line with our expectations.Mgmt. attributed the slower sequential revenue growth (9.4% in 3Q24 vs. 31.3%/23% in 1Q/2Q24) to two main factors: 1) supply chain bottlenecks of key components (like DSPs &amp; EMLs), and 2) unfavorable fluctuations in the USD/RMB exchange rate during 3Q.Excluding the impact of exchange rate movements, the company still achieved double-digit revenue growth in 3Q.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.

Innolight (300308 CH) - Solid 3Q with Intact Near-Term Prospects; Maintain BUY

<ul><li>CSP3 (Three Cloud Service Providers, namely Google, Microsoft and Amazon) plus Meta have announced their earnings recently.</li><li>The Big Four spent an aggregate of US$52.9bn in capex in 2Q24 (vs. previous Bloomberg consensus est. of US$50.6bn), representing a surge of 57.1% following 30.4% growth in 1Q24.</li><li>The growth is on an already-high base after three years of growth hikes in capex (38%/34%/19% YoY) from 2020-22 and reaching a nearly historical peak (US$148bn) in 2023. </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.

CSP3 (Three Cloud Service Providers, namely Google, Microsoft and Amazon) plus Meta have announced their earnings recently.The Big Four spent an aggregate of US$52.9bn in capex in 2Q24 (vs. previous Bloomberg consensus est. of US$50.6bn), representing a surge of 57.1% following 30.4% growth in 1Q24.The growth is on an already-high base after three years of growth hikes in capex (38%/34%/19% YoY) from 2020-22 and reaching a nearly historical peak (US$148bn) in 2023. 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.

Innolight (300308 CH) - Fundamentals Remain Strong Despite Recent Market Volatility, Reiterate BUY

<ul><li>Innolight has recently released results for FY23 and 1Q24, exceeding both our and market’s expectations.</li><li>For FY23, the company's revenue grew by 11.2% YoY to RMB10.7bn, with net profit soaring by 77.6% YoY to RMB2.2bn.</li><li>1Q saw even more impressive growth, with revenue up by 163.6% YoY to RMB4.8bn and net profit increasing by an astonishing 303.8% YoY to RMB1.0bn. we attribute the impressive results largely to strong demand for its high-speed optical transceivers (esp. 400G &amp; 800G), making up over 90% of its total revenue in FY23. </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.

Innolight has recently released results for FY23 and 1Q24, exceeding both our and market’s expectations.For FY23, the company's revenue grew by 11.2% YoY to RMB10.7bn, with net profit soaring by 77.6% YoY to RMB2.2bn.1Q saw even more impressive growth, with revenue up by 163.6% YoY to RMB4.8bn and net profit increasing by an astonishing 303.8% YoY to RMB1.0bn. we attribute the impressive results largely to strong demand for its high-speed optical transceivers (esp. 400G &amp; 800G), making up over 90% of its total revenue in FY23. 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.

InnoLight (300308 CH) - 1Q24 Results Set Stage for Accelerated Growth in 2024

<ul><li>We think 2024 is set to be another solid year for both infrastructure investments and downstream demand continue to thrive.</li><li>According to Bloomberg's consensus, CSP3 (comprising Amazon, Google, and Microsoft) along with Meta, are projected to ramp up their capex by 16.6%/7.6% YoY in 2024/2025E.</li><li>We reaffirm our positive stance on optical transceiver players, specifically in light of their ongoing capacity expansion and production ramp-up of the high data rate optical modules, e.g., 400G/800G products. </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 think 2024 is set to be another solid year for both infrastructure investments and downstream demand continue to thrive.According to Bloomberg's consensus, CSP3 (comprising Amazon, Google, and Microsoft) along with Meta, are projected to ramp up their capex by 16.6%/7.6% YoY in 2024/2025E.We reaffirm our positive stance on optical transceiver players, specifically in light of their ongoing capacity expansion and production ramp-up of the high data rate optical modules, e.g., 400G/800G products. 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.

Innolight (300308 CH) – True Beneficiary in AI Value Chain

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 FRTIB benchmark switch from the EAFE Index to the ACWI IMI ex-USA ex-China ex-Hong Kong Index will result in a round trip trade of around US$56bn.</li>
<li>The changes for the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300</a>, <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI 500</a>, <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">STAR50</a>, <a href="https://www.smartkarma.com/entities/shanghai-stock-exchange-sse-50-a-share-index" target="_blank" data-smartkarma-citation="entities:31073:1" rel="noopener">SSE50</a> and a bunch of other mainland China indices will be announced after market close on Friday.</li>
<li>Relatively quiet week for ETF flows with no major creations or redemptions during the week.</li>
</ul>


The FRTIB benchmark switch from the EAFE Index to the ACWI IMI ex-USA ex-China ex-Hong Kong Index will result in a round trip trade of around US$56bn.
The changes for the CSI 300, CSI 500, STAR50, SSE50 and a bunch of other mainland China indices will be announced after market close on Friday.
Relatively quiet week for ETF flows with no major creations or redemptions during the week.


Index Rebalance & ETF Flow Recap: FRTIB, Japan, CSI300, CSI500, STAR50, WuXi XDC, Asahi

China

Zhongji Innolight Co., Ltd. manufactures and distributes industrial machines and machine parts. The Company produces motor stator windings, insulating machines, coil winding equipment, automatic production lines, and more. Zhongji Innolight mainly conducts businesses domestically.

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Zhongji Innolight (300308 CH)

Innolight (300308 CH) - Solid 3Q with Intact Near-Term Prospects; Maintain BUY

Innolight released its 3Q results. Revenue went up by 115.2% YoY/9.4% QoQ, while net profit went up by 104.4% YoY/3.3% QoQ, in-line with our...

CMB International

Innolight (300308 CH) - Fundamentals Remain Strong Despite Recent Market Volatility, Reiterate BUY

CSP3 (Three Cloud Service Providers, namely Google, Microsoft and Amazon) plus Meta have announced their earnings recently.

CMB International

InnoLight (300308 CH) - 1Q24 Results Set Stage for Accelerated Growth in 2024

We revise up our earnings forecasts and raise TP for Innolight to RMB183, corresponding to the same 30x 2024E P/E. Maintain BUY

CMB International

Innolight (300308 CH) – True Beneficiary in AI Value Chain

We think 2024 is set to be another solid year for both infrastructure investments and downstream demand continue to thrive.

CMB International

Index Rebalance & ETF Flow Recap: FRTIB, Japan, CSI300, CSI500, STAR50, WuXi XDC, Asahi

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

Brian Freitas

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