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.

Thematic (Sector/Industry)

<ul><li>We expect the market size of ADAS/AD solutions in China to grow from RMB33bn in 2024E to RMB101bn by 2028E, representing a 32% CAGR over 2024-28E.</li><li>Looking ahead, we believe Chinese suppliers of ADAS/AD solutions are well-positioned to gain market share. I</li><li>n particular, we see meaningful upside for local players such as Horizon Robotics (9660 HK) and Black Sesame (2533 HK), who are ready to scale along the market. Initiate coverage on H</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 expect the market size of ADAS/AD solutions in China to grow from RMB33bn in 2024E to RMB101bn by 2028E, representing a 32% CAGR over 2024-28E.Looking ahead, we believe Chinese suppliers of ADAS/AD solutions are well-positioned to gain market share. In particular, we see meaningful upside for local players such as Horizon Robotics (9660 HK) and Black Sesame (2533 HK), who are ready to scale along the market. Initiate coverage on HContent 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.

Semiconductors - China’s ADAS/AD Players Are Set to Gain Ground at Accelerated Pace

Equity Bottom-Up

Thermo Fisher Scientific Inc / Equity Bottom-Up

Thermo Fisher Scientific, Inc. manufactures scientific instruments, consumables, and chemicals.  The Company offers analytical instruments, laboratory equipment, software, services, consumables, reagents, chemicals, and supplies to pharmaceutical and biotech companies, hospitals and clinical diagnostic labs, universities, research institutions, and government agencies.

<ul><li>Thermo Fisher (TMO) reported its 1Q25 results, with revenue rising 0.2% YoY to US$10.4bn and adjusted EPS up 0.8% YoY to US$5.15.</li><li>Revenue and adjusted EPS exceeded Bloomberg consensus by 1.3% and 0.8%, respectively.</li><li>Note that 1Q25 had two fewer selling days compared to 1Q24, negatively impacting growth across all segments by ~1-2%. </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.

Thermo Fisher (TMO) reported its 1Q25 results, with revenue rising 0.2% YoY to US$10.4bn and adjusted EPS up 0.8% YoY to US$5.15.Revenue and adjusted EPS exceeded Bloomberg consensus by 1.3% and 0.8%, respectively.Note that 1Q25 had two fewer selling days compared to 1Q24, negatively impacting growth across all segments by ~1-2%. 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.

Thermo Fisher (TMO US) - Taking Measures to Counteract Macro Headwinds

ServiceNow, Inc. provides enterprise information technology (IT) management software. The Company designs, develops, and produces prepackaged computer software, cloud services, and IT service management platform. ServiceNow serves customers throughout the United States.

<ul><li>ServiceNow announced 1Q25 financial results: total revenue grew by 19% YoY to US$3.09bn, in line with Bloomberg consensus estimate; non-GAAP operating income was up by 20% YoY to US$953mn, 3% ahead of consensus estimate thanks to efficiency gains on internal AI deployment.</li><li>cRPO increased by 22% YoY to US$10.3bn as of 1Q25, beating guidance by 150bps, supported by the strength across workflows and industries.</li><li>Despite the 1Q25 earnings beat, management has raised merely FY25 subscription revenue guidance by US$5mn to US$12.64-12.68bn (+18.5-19.0% YoY), in a conservative manner given the macro uncertainty in 2H25. </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.

ServiceNow announced 1Q25 financial results: total revenue grew by 19% YoY to US$3.09bn, in line with Bloomberg consensus estimate; non-GAAP operating income was up by 20% YoY to US$953mn, 3% ahead of consensus estimate thanks to efficiency gains on internal AI deployment.cRPO increased by 22% YoY to US$10.3bn as of 1Q25, beating guidance by 150bps, supported by the strength across workflows and industries.Despite the 1Q25 earnings beat, management has raised merely FY25 subscription revenue guidance by US$5mn to US$12.64-12.68bn (+18.5-19.0% YoY), in a conservative manner given the macro uncertainty in 2H25. 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.

ServiceNow (NOW US) - 1Q25 CRPO Beats Guidance Despite Macro Uncertainty

ZTE Corporation develops and markets switches, access servers, videoconferencing systems, mobile communication systems, data communication devices, and optical communication devices.  The Company also offers networking solutions for setup, refurbishment and optimization of networks.

<ul><li>ZTE has announced 1Q25 results. Revenue increased by 8% YoY and 5% QoQ to RMB33.0bn, driven by strong revenue growth in enterprise/gov’t segment (doubled YoY growth per mgmt.), benefitting from increased capex in compute infra. by leading domestic CSPs. NP decreased by 11% YoY to RMB2.5bn on a lower margin.</li><li>GPM dropped YoY to 34.3% in 1Q25 vs. 42.0%/30.6% in 1Q24/4Q24, mainly due to an unfavourable product mix (higher revenue contribution from non-carrier business segments).</li><li>Maintain BUY as we view ZTE as a beneficiary in domestic AI market, with TP revised to RMB26.5.</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.

ZTE has announced 1Q25 results. Revenue increased by 8% YoY and 5% QoQ to RMB33.0bn, driven by strong revenue growth in enterprise/gov’t segment (doubled YoY growth per mgmt.), benefitting from increased capex in compute infra. by leading domestic CSPs. NP decreased by 11% YoY to RMB2.5bn on a lower margin.GPM dropped YoY to 34.3% in 1Q25 vs. 42.0%/30.6% in 1Q24/4Q24, mainly due to an unfavourable product mix (higher revenue contribution from non-carrier business segments).Maintain BUY as we view ZTE as a beneficiary in domestic AI market, with TP revised to RMB26.5.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.

ZTE (763 HK) - Strong Growth in Second-Curve Businesses

New Oriental Education & Techn / Equity Bottom-Up

New Oriental Education & Technology Group, Inc. offers educational services. The Company offers foreign language training, test preparation courses for admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, and other services. New Oriental Education & Technology Group also operates software development.

<ul><li>New Oriental reported 3QFY25 results: net revenue declined by 2% YoY to US$1.18bn, or grew by 21% YoY to US$1.04bn if excluding revenue from East Buy, which is in line with the guidance; non-GAAP net income dropped by 14% YoY to US$113mn, slightly below Bloomberg consensus estimate of US$120mn, mainly due to the deceleration in revenue growth of overseasrelated businesses and the investment in tourism business.</li><li>Looking ahead to 4QFY25E, the company guides net revenue (excluding revenue from East Buy) to grow by 10-13% YoY to US$1.01-1.04bn, further decelerating as macro uncertainty and geopolitical tension weigh on overseas related business.</li><li>We trim FY25-27E earnings forecast by 2-8% mainly in view of the pressure on overseas-related business, and now estimate FY25-27 non-GAAP OP CAGR of 23%. </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.

New Oriental reported 3QFY25 results: net revenue declined by 2% YoY to US$1.18bn, or grew by 21% YoY to US$1.04bn if excluding revenue from East Buy, which is in line with the guidance; non-GAAP net income dropped by 14% YoY to US$113mn, slightly below Bloomberg consensus estimate of US$120mn, mainly due to the deceleration in revenue growth of overseasrelated businesses and the investment in tourism business.Looking ahead to 4QFY25E, the company guides net revenue (excluding revenue from East Buy) to grow by 10-13% YoY to US$1.01-1.04bn, further decelerating as macro uncertainty and geopolitical tension weigh on overseas related business.We trim FY25-27E earnings forecast by 2-8% mainly in view of the pressure on overseas-related business, and now estimate FY25-27 non-GAAP OP CAGR of 23%. 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.

New Oriental (EDU US) - Overseas-Related Business Drags Revenue Growth