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>FIT Hon Teng’s FY25 revenue grew 12% YoY to US$5.0bn, largely in-line, while net profit grew 2% YoY to US$156mn, below our/consensus by 8%/12%, mainly due to higher effective tax.</li><li>During our post-results NDR call, mgmt. reiterated its positive view on cloud/datacenter momentum backed by large scale AI server upgrade and new product ramp-up in FY26-28E.</li><li>Mgmt. guided 70% YoY growth for cloud/datacenter revenue in 2026E, and raised FY26-28E cloud revenue mix guidance to mid-20%/high-20%/low-30%. </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.

FIT Hon Teng’s FY25 revenue grew 12% YoY to US$5.0bn, largely in-line, while net profit grew 2% YoY to US$156mn, below our/consensus by 8%/12%, mainly due to higher effective tax.During our post-results NDR call, mgmt. reiterated its positive view on cloud/datacenter momentum backed by large scale AI server upgrade and new product ramp-up in FY26-28E.Mgmt. guided 70% YoY growth for cloud/datacenter revenue in 2026E, and raised FY26-28E cloud revenue mix guidance to mid-20%/high-20%/low-30%. 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) - FY25 Earnings Dragged by Higher Effective Tax...

<ul><li>Looking into 2026, we believe FIT is well-positioned to benefit from architecture upgrade in GB300/VR200 servers and strong product pipeline in interconnect (MCIO, cable cartridge, midplane connector), power (busbar, power whip), liquid cooling (UQD, LC busbar) and CPOs (LGA-to-LGA socket, PLS I/O cage).</li><li>We forecast FIT’s AI-related revenue to grow at 95% CAGR in FY25-27E, accounting for 18% of revenue in FY27E (vs 6% in FY25E).</li><li>For 4Q25/FY25E, we estimate FY25E revenue/net profit growth of 11%/11% YoY, implying 4Q25E revenue/net profit growth of 6%/21% YoY. </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.

Looking into 2026, we believe FIT is well-positioned to benefit from architecture upgrade in GB300/VR200 servers and strong product pipeline in interconnect (MCIO, cable cartridge, midplane connector), power (busbar, power whip), liquid cooling (UQD, LC busbar) and CPOs (LGA-to-LGA socket, PLS I/O cage).We forecast FIT’s AI-related revenue to grow at 95% CAGR in FY25-27E, accounting for 18% of revenue in FY27E (vs 6% in FY25E).For 4Q25/FY25E, we estimate FY25E revenue/net profit growth of 11%/11% YoY, implying 4Q25E revenue/net profit growth of 6%/21% YoY. 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) - Strong 2026 Outlook with AI Interconnect/ Power...

<ul><li>FIT’s 3Q25 revenue/net profit growth of 13%/9% YoY is largely in-line with prior guidance and our expectations, backed by AI server momentum, automobility synergy and record-high GPM at 23.5%.</li><li>During the earnings call, mgmt. reiterated a positive 2025 outlook (high-single-digit revenue growth, GPM at 20%), and updated FY26-28E guidance, with 1) 2027-28E revenue growth of mid-20% (vs prior low-20%) and 2) AI/cloud revenue mix of “low/mid/high-20% in 2026/27/28E”.</li><li>Overall, we believe FIT is well positioned to benefit from share gains and AI server connectivity solutions upgrade, backed by its solid product pipeline and synergy with Hon Hai. </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.

FIT’s 3Q25 revenue/net profit growth of 13%/9% YoY is largely in-line with prior guidance and our expectations, backed by AI server momentum, automobility synergy and record-high GPM at 23.5%.During the earnings call, mgmt. reiterated a positive 2025 outlook (high-single-digit revenue growth, GPM at 20%), and updated FY26-28E guidance, with 1) 2027-28E revenue growth of mid-20% (vs prior low-20%) and 2) AI/cloud revenue mix of “low/mid/high-20% in 2026/27/28E”.Overall, we believe FIT is well positioned to benefit from share gains and AI server connectivity solutions upgrade, backed by its solid product pipeline and synergy with Hon Hai. 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) - Solid 3Q25 and Strong AI Revenue Guidance in FY26-28E; Raise TP to HK$6.77

Thematic (Sector/Industry)

<ul><li>Apple announced the iPhone 17e and the M4 iPad Air, with spec/features largely in-line with market expectations.</li><li>That said, we have identified several major positives: 1) iPhone 17e: the same starting price at US$599 while doubling base storage to 256GB (vs. 128GB starting iPhone 16e storage);</li><li>2) M4 iPad Air: massive performance leap with M4 chip, an increased 12GB of RAM and N1/C1X connectivity chips at unchanged starting prices (US$599 for 11 inch, US$799 for 13 inch)</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.

Apple announced the iPhone 17e and the M4 iPad Air, with spec/features largely in-line with market expectations.That said, we have identified several major positives: 1) iPhone 17e: the same starting price at US$599 while doubling base storage to 256GB (vs. 128GB starting iPhone 16e storage);2) M4 iPad Air: massive performance leap with M4 chip, an increased 12GB of RAM and N1/C1X connectivity chips at unchanged starting prices (US$599 for 11 inch, US$799 for 13 inch)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 - IPhone 17e and M4 IPad Air Debut with Aggressive Value Proposition Is Positive...

<ul><li>Apple (AAPL US, NR) reported upbeat FY1Q26 (CY4Q25) results with revenue growth of 16% YoY, 4% above consensus, driven by strong iPhone sales (+23% YoY) and China recovery (+38% YoY, vs -4% in FY4Q), while GPM further expanded to 48.2% thanks to favourable mix and leverage.</li><li>For FY2Q26E, mgmt. guided revenue growth of 13-16% YoY and resilient GPM of 48-49% despite memory headwinds. Looking into 2026, we expect “strong iPhone cycle, strong price cycle” to continue given iPhone Fold/18 upgrade, high-end market share gains and Google AI partnership.</li><li>We believe Apple is better positioned to navigate memory headwinds than peers given its supply chain leverage and strong pricing power, and we prefer stocks with content/share gains in new product cycles (iPhone Fold/smart home/AI glasses), including Luxshare, AAC, FIT and BYDE.</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.

Apple (AAPL US, NR) reported upbeat FY1Q26 (CY4Q25) results with revenue growth of 16% YoY, 4% above consensus, driven by strong iPhone sales (+23% YoY) and China recovery (+38% YoY, vs -4% in FY4Q), while GPM further expanded to 48.2% thanks to favourable mix and leverage.For FY2Q26E, mgmt. guided revenue growth of 13-16% YoY and resilient GPM of 48-49% despite memory headwinds. Looking into 2026, we expect “strong iPhone cycle, strong price cycle” to continue given iPhone Fold/18 upgrade, high-end market share gains and Google AI partnership.We believe Apple is better positioned to navigate memory headwinds than peers given its supply chain leverage and strong pricing power, and we prefer stocks with content/share gains in new product cycles (iPhone Fold/smart home/AI glasses), including Luxshare, AAC, FIT and BYDE.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 - Apple FY1Q26 and Guidance Beat; Positive on Strong IPhone Cycle...

Taiwan

FIT Hon Teng Limited designs, develops, produces, and sells interconnect solutions and related products, including electronic and optoelectronic connectors, antennas, acoustic components, cables, and modules. The company serves industries such as communications infrastructure, consumer electronics, mobile devices, automotive, industrial, and medical. It was established in 2013 and is headquartered in New Taipei City, Taiwan.

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FIT Hon Teng (6088 HK)