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>BOEVx posted 1H25 revenue growth of 8% YoY driven by high-end auto products and system business segment, while net profit growth of 5% YoY was mainly dragged by higher depreciation expense and staff cost, partly offset by government grant and investment income.</li><li>During the earnings call, mgmt. guided stronger 2H25E revenue with stable NPM, thanks to China order wins, product expansion and less intensified competition.</li><li>In the longer term, we remain positive on BOEVx as the global No.1 automotive display leader to benefit from overseas expansion, three-step strategies and capacity ramp-up. </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.

BOEVx posted 1H25 revenue growth of 8% YoY driven by high-end auto products and system business segment, while net profit growth of 5% YoY was mainly dragged by higher depreciation expense and staff cost, partly offset by government grant and investment income.During the earnings call, mgmt. guided stronger 2H25E revenue with stable NPM, thanks to China order wins, product expansion and less intensified competition.In the longer term, we remain positive on BOEVx as the global No.1 automotive display leader to benefit from overseas expansion, three-step strategies and capacity ramp-up. 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.

BOE Varitronix (710 HK) - 1H25 Dragged by Higher Costs...

<ul><li>We hosted an investor call with BOEVx regarding the recent US reciprocal tariffs.</li><li>Overall, mgmt. believes there is limited impact on their financials given low US sales exposure.</li><li>Regionally, BOEVx is positive on Vietnam’s capacity ramp-up in 2025 and already received orders from the US and South Korean customers. </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 hosted an investor call with BOEVx regarding the recent US reciprocal tariffs.Overall, mgmt. believes there is limited impact on their financials given low US sales exposure.Regionally, BOEVx is positive on Vietnam’s capacity ramp-up in 2025 and already received orders from the US and South Korean customers. 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.

BOE Varitronix (710 HK) - Limited Impact from Tariff Given Low US Exposure

<ul><li>BOEVx posted strong FY24 sales growth of 25% YoY driven by automotive display (LTPS/Oxide/OLED), auto display system (intelligent/cockpit) and overseas market orders (US/Japan/Korea +47%/50%/24% YoY), but net profit missed mainly due to product mix shift, pricing pressure, higher inventory costs and less government grants.</li><li>Looking into 2025/26, as a global No.1 auto display supplier, BOEVx will focus on multiple growth drivers: 1) system product expansion (smart cockpit/AI); 2) high-end auto display ramp (LTPS/Oxide/OLED) backed by Chengdu capacity; 3) overseas order wins (esp. Europe, Japan, Korea), and 4) R&amp;D investment in AI/auto display technologies.</li><li>We trim FY25-26E EPS estimates by 8%/1% to reflect FY24 results and slower margin recovery. We believe BOEVx will continue to benefit from strong product pipeline and overseas expansion. Maintain BUY with new TP of HK$9.63.</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.

BOEVx posted strong FY24 sales growth of 25% YoY driven by automotive display (LTPS/Oxide/OLED), auto display system (intelligent/cockpit) and overseas market orders (US/Japan/Korea +47%/50%/24% YoY), but net profit missed mainly due to product mix shift, pricing pressure, higher inventory costs and less government grants.Looking into 2025/26, as a global No.1 auto display supplier, BOEVx will focus on multiple growth drivers: 1) system product expansion (smart cockpit/AI); 2) high-end auto display ramp (LTPS/Oxide/OLED) backed by Chengdu capacity; 3) overseas order wins (esp. Europe, Japan, Korea), and 4) R&amp;D investment in AI/auto display technologies.We trim FY25-26E EPS estimates by 8%/1% to reflect FY24 results and slower margin recovery. We believe BOEVx will continue to benefit from strong product pipeline and overseas expansion. Maintain BUY with new TP of HK$9.63.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.

BOE Varitronix (710 HK) - FY24 Strong Sales Dragged by Weaker Margin

Thematic (Sector/Industry)

<ul><li>Following our note last week, we received investor questions focused on 1) “20% US content rule” exemptions, 2) impact of China 34% tariff' on the US, 3) Vietnam proposed 0% tariff, 4) de-minimis rule removal, 5) bottom-fishing opportunities, and 6) company feedback/response on the new tariff. Below we offer perspectives on investor FAQs regarding the implications.</li><li>Despite sector valuation still being 15-20% away from the historical trough now, we would start to look for some quality names to accumulate on further weakness, including Xiaomi, AAC, Sunny Optical, BYDE and Q-tech.</li><li>“20% US content rule” exemptions in “Annex III” sub-document? The US White House published a sub-document, Annex II, for the US Reciprocal Tariffs.</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.

Following our note last week, we received investor questions focused on 1) “20% US content rule” exemptions, 2) impact of China 34% tariff' on the US, 3) Vietnam proposed 0% tariff, 4) de-minimis rule removal, 5) bottom-fishing opportunities, and 6) company feedback/response on the new tariff. Below we offer perspectives on investor FAQs regarding the implications.Despite sector valuation still being 15-20% away from the historical trough now, we would start to look for some quality names to accumulate on further weakness, including Xiaomi, AAC, Sunny Optical, BYDE and Q-tech.“20% US content rule” exemptions in “Annex III” sub-document? The US White House published a sub-document, Annex II, for the US Reciprocal Tariffs.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.

Technology - US Tariff Updates: Addressing FAQs After a Volatile Day

<ul><li>BYD announced plans to offer its “God’s Eye” advanced intelligent driving system on all models priced above RMB100k and 3 models priced below 100k, during its “Vehicle Intelligent Strategy” event in Shenzhen on 10 Feb.</li><li>Initial rollout includes 21 models, all equipped with industry-leading specs with endto-end LLM, 5 mm-wave radars, 12 cameras and 12 ultrasonic radars.</li><li>We believe BYD’s acceleration of intelligent driving with strong new model pipeline will boost adoption of intelligent driving in China, and key beneficiaries include BYDE (ADAS/domain controller), Sunny Optical/Q-tech/Cowell (1415 HK, NR)/AAC (camera/LiDAR/radar), BOEVx (display), AAC Tech (acoustics) and Luxshare/FIT (connector).</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.

BYD announced plans to offer its “God’s Eye” advanced intelligent driving system on all models priced above RMB100k and 3 models priced below 100k, during its “Vehicle Intelligent Strategy” event in Shenzhen on 10 Feb.Initial rollout includes 21 models, all equipped with industry-leading specs with endto-end LLM, 5 mm-wave radars, 12 cameras and 12 ultrasonic radars.We believe BYD’s acceleration of intelligent driving with strong new model pipeline will boost adoption of intelligent driving in China, and key beneficiaries include BYDE (ADAS/domain controller), Sunny Optical/Q-tech/Cowell (1415 HK, NR)/AAC (camera/LiDAR/radar), BOEVx (display), AAC Tech (acoustics) and Luxshare/FIT (connector).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.

Technology - Intelligence Driving: Implications of BYD’s “vehicle Intelligence Strategy” Event

Hong Kong

BOE Varitronix Limited designs, manufactures, and sells small-to-medium sized LCDs (liquid crystal displays) and related products. The Company offers displays for dashboards, clock, rear seat, power meter, washing machines, ovens, blood glucose meters, dental instruments, and label printers. BOE Vanitronix markets its products worldwide.

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BOE Varitronix (710 HK)