External broker reports(aggregated public sources), CMB International

CMB International

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.

External broker reports(aggregated public sources)

Equity Bottom-Up

AAC Technologies Holdings / Equity Bottom-Up

<ul><li>AAC’s 1H23 net profit of RMB 150mn (-57.1% YoY) was in-line with previous profit warning (RMB 122mn-157mn), mainly due to 1) global smartphone market weakness, 2) intensified competition in acoustics/optics, 3) lower GPM on sales mix shift in ED&amp;PM. For 2H23E, we believe AAC’s revenue/earnings should recover sequentially given inventory restocking, stabilizing optics ASP/margin, client wins in ED&amp;PM and product upgrade in multiple segments.</li><li>To reflect GPM weakness on product mix shift and lower optics margin, we trimmed FY23/24E EPS by 6/1% and our EPS are 36%/20% below consensus.</li><li>While we are positive on seasonal strength in 2H23E and AAC’s non-smartphone product outlook, the stock is now trading at 27.6x/15.7x FY23/24E P/E, which is fair in our view. </li></ul><p><em>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.</em></p>

AAC’s 1H23 net profit of RMB 150mn (-57.1% YoY) was in-line with previous profit warning (RMB 122mn-157mn), mainly due to 1) global smartphone market weakness, 2) intensified competition in acoustics/optics, 3) lower GPM on sales mix shift in ED&amp;PM. For 2H23E, we believe AAC’s revenue/earnings should recover sequentially given inventory restocking, stabilizing optics ASP/margin, client wins in ED&amp;PM and product upgrade in multiple segments.To reflect GPM weakness on product mix shift and lower optics margin, we trimmed FY23/24E EPS by 6/1% and our EPS are 36%/20% below consensus.While we are positive on seasonal strength in 2H23E and AAC’s non-smartphone product outlook, the stock is now trading at 27.6x/15.7x FY23/24E P/E, which is fair in our view. 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.

AAC Tech (2018 HK) – 1H23 Weakness In-Line; Maintain HOLD on Fair Valuation