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>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><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>

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

Goertek Inc A

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