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>We held an NDR with BaTeLab on 10 Jun. Investors’ interests revolved around 1) demand outlook, 2) impacts from geopolitical uncertainties, and 3) investment plans for upstream manufacturing resources.</li><li>We are impressed by the company’s clear and sustainable growth strategy after the detailed explanation from the management team.</li><li>The stock remains one of our top convictions in the semiconductor universe. Maintain BUY with TP revised up to HK$93, based on 25x 2025E P/E.</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 held an NDR with BaTeLab on 10 Jun. Investors’ interests revolved around 1) demand outlook, 2) impacts from geopolitical uncertainties, and 3) investment plans for upstream manufacturing resources.We are impressed by the company’s clear and sustainable growth strategy after the detailed explanation from the management team.The stock remains one of our top convictions in the semiconductor universe. Maintain BUY with TP revised up to HK$93, based on 25x 2025E P/E.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.

BaTeLab (2149 HK) - Analog IC Gem with Sustained Growth Potential Ahead; TP Lifted to HK$93

<ul><li>On 28 May, the Trump administration issued a new directive prohibiting leading EDA (Electronic Design Automation) software companies, including Synopsys (SNPS US, NR), Cadence (CDNS US, NR), and Siemens EDA (Mentor Graphics, SIEGY US, NR), from selling their products to Chinese entities.</li><li>This action represents yet another significant escalation between US-China technological decoupling.</li><li>EDA is instrumental in semi design, in which overseas vendors currently command 70% of the market share in China, per Reuters. </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.

On 28 May, the Trump administration issued a new directive prohibiting leading EDA (Electronic Design Automation) software companies, including Synopsys (SNPS US, NR), Cadence (CDNS US, NR), and Siemens EDA (Mentor Graphics, SIEGY US, NR), from selling their products to Chinese entities.This action represents yet another significant escalation between US-China technological decoupling.EDA is instrumental in semi design, in which overseas vendors currently command 70% of the market share in China, per Reuters. 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.

BaTeLab (2149 HK) - Potential EDA Restrictions Not to Impede Growth

<ul><li>BaTeLab raised HK$120mn from a private placement on 21 May (link), with 3mn shares at HK$40.</li><li>The company will use the net proceeds to 1) increase the investment in upstream manufacturing resources (including but not limited to building its own wafer fabs and strengthening cooperation with existing wafer fabs) and 2) other general working capital.</li><li>We expect the recent issuance to help the company secure its upstream fabrication capability, which is crucial for BaTeLab’s future expansion given the long-tail nature of the industrial-grade analog IC market. </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.

BaTeLab raised HK$120mn from a private placement on 21 May (link), with 3mn shares at HK$40.The company will use the net proceeds to 1) increase the investment in upstream manufacturing resources (including but not limited to building its own wafer fabs and strengthening cooperation with existing wafer fabs) and 2) other general working capital.We expect the recent issuance to help the company secure its upstream fabrication capability, which is crucial for BaTeLab’s future expansion given the long-tail nature of the industrial-grade analog IC market. 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.

BaTeLab (2149 HK) - Private Placement Completed, Now Eyes on Execution

<ul><li>BaTeLab posted strong 1H24 earnings. Revenue grew by 42.1% YoY to RMB291mn driven by 1) continued launch of new industrial products (SKUs reached over 500 in 1H24 from ~400 in FY23)</li><li>2) strengthened partnership with key customers (new energy revenue contributed 30% of total revenue in 1H24</li><li>3) an expanded distribution network (partnership with several new distributors). Net profit grew by 46.3% YoY to RMB67mn. 1H24 revenue/NP accounted for 45%/46% of our full-year estimates (vs. 44%/42% for 1H23)</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.

BaTeLab posted strong 1H24 earnings. Revenue grew by 42.1% YoY to RMB291mn driven by 1) continued launch of new industrial products (SKUs reached over 500 in 1H24 from ~400 in FY23)2) strengthened partnership with key customers (new energy revenue contributed 30% of total revenue in 1H243) an expanded distribution network (partnership with several new distributors). Net profit grew by 46.3% YoY to RMB67mn. 1H24 revenue/NP accounted for 45%/46% of our full-year estimates (vs. 44%/42% for 1H23)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.

BaTeLab (2149 HK) - Strong 1H24 Results Signal Brighter Days Ahead

<ul><li>BaTeLab is one of the leading analog IC patterned wafer providers in China, focusing on the industrial-grade market.</li><li>The company has developed the only full-stack design platform in China, integrating EDA, IP and design.</li><li>We favor BaTeLab on 1) its unique position in the market (three differentiations from peers), 2) robust growth in revenue (38.0% 2023-26E CAGR, CMBIGM estimate) and the ability to maintain its margins (GPM/NPM at ~54%/23% in 2024/25E), 3) attractive valuation (the company currently trades at 10.3x 2024E P/E and 7.2x 2025E P/E, compared to 30.8x 2024E P/E of its HK-listed peers). Initiate with BUY and TP at HK$49.8.</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.

BaTeLab is one of the leading analog IC patterned wafer providers in China, focusing on the industrial-grade market.The company has developed the only full-stack design platform in China, integrating EDA, IP and design.We favor BaTeLab on 1) its unique position in the market (three differentiations from peers), 2) robust growth in revenue (38.0% 2023-26E CAGR, CMBIGM estimate) and the ability to maintain its margins (GPM/NPM at ~54%/23% in 2024/25E), 3) attractive valuation (the company currently trades at 10.3x 2024E P/E and 7.2x 2025E P/E, compared to 30.8x 2024E P/E of its HK-listed peers). Initiate with BUY and TP at HK$49.8.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.

BaTeLab (2149 HK) - Key Domestic Analog Patterned Wafer Player

China

BaTeLab is primarily engaged in the research, development, and sale of analog integrated circuit (IC) patterned wafers. The company offers industrial-grade analog IC patterned wafers, including power management and signal chain products like switching regulators, linear regulators, and battery management ICs. Headquartered in Suzhou, China, the company was founded in 2010.

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BaTeLab (2149 HK)

BaTeLab (2149 HK) - Analog IC Gem with Sustained Growth Potential Ahead; TP Lifted to HK$93

The stock remains one of our top convictions in the semiconductor universe. Maintain BUY with TP revised up to HK$93, based on 25x 2025E P/E.

CMB International

BaTeLab (2149 HK) - Potential EDA Restrictions Not to Impede Growth

EDA is instrumental in semi design, in which overseas vendors currently command 70% of the market share in China, per Reuters.

CMB International

BaTeLab (2149 HK) - Private Placement Completed, Now Eyes on Execution

We also expect the fund raised to bolster the company's cash reserves, injecting more liquidity support into its operations.

CMB International

BaTeLab (2149 HK) - Strong 1H24 Results Signal Brighter Days Ahead

BaTeLab posted strong 1H24 earnings. Revenue grew by 42.1% YoY to RMB291mn driven by 1) continued launch of new industrial products (SKUs reached...

CMB International

BaTeLab (2149 HK) - Key Domestic Analog Patterned Wafer Player

BaTeLab is one of the leading analog IC patterned wafer providers in China, focusing on the industrial-grade market. The company has developed the...

CMB International

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