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

<ul><li>We discussed with mgmt. after recent correction this week.</li><li>Overall, we believe market concerns on higher opex are overdone since we expect opex ratio to peak at 14.0% in FY23E and improve to 13.2%/12.8% in FY24/25E on the back of economies of scale and improving efficiency.</li><li>We also expect FIT’s product expansion into higher-margin 400G optical cable/acoustics/EV components through Prettl’s acquisition would drive NPM recovery from 3.2% in FY23E to 3.6%/4.0% in FY24/25E. </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>

We discussed with mgmt. after recent correction this week.Overall, we believe market concerns on higher opex are overdone since we expect opex ratio to peak at 14.0% in FY23E and improve to 13.2%/12.8% in FY24/25E on the back of economies of scale and improving efficiency.We also expect FIT’s product expansion into higher-margin 400G optical cable/acoustics/EV components through Prettl’s acquisition would drive NPM recovery from 3.2% in FY23E to 3.6%/4.0% in FY24/25E. 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) – Recent Sell-Off Overdone