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’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

<ul><li>FIT Hon Teng’s 2Q25 results were largely in-line with our expectations, with revenue/net profit growth of 9%/13% YoY (vs +14%/-39% YoY in 1Q25).</li><li>Following our post-results NDR with mgmt., we are encouraged by FIT’s accelerated business transition in 2Q, as strategic cloud/auto segments accounted for 36% of 2Q sales (vs 24% in FY24) and delivered strong growth of 28%/115% YoY in 2Q.</li><li>Despite guidance lowered on smartphone/consumer interconnect/system products on tariff/macro uncertainties, we are positive on FIT’s “3+3 strategy” into 2026-27E, backed by 1) cloud/AI server products (project wins in sockets/CPO; share gains in power /liquid cooling), and 2) AirPods ramp-up (2-3 lines by FY25E, 6 lines as LT target). </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 2Q25 results were largely in-line with our expectations, with revenue/net profit growth of 9%/13% YoY (vs +14%/-39% YoY in 1Q25).Following our post-results NDR with mgmt., we are encouraged by FIT’s accelerated business transition in 2Q, as strategic cloud/auto segments accounted for 36% of 2Q sales (vs 24% in FY24) and delivered strong growth of 28%/115% YoY in 2Q.Despite guidance lowered on smartphone/consumer interconnect/system products on tariff/macro uncertainties, we are positive on FIT’s “3+3 strategy” into 2026-27E, backed by 1) cloud/AI server products (project wins in sockets/CPO; share gains in power /liquid cooling), and 2) AirPods ramp-up (2-3 lines by FY25E, 6 lines as LT target). 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) - 2Q Business Transition Accelerated...

<ul><li>FIT Hon Teng 1Q25 revenue grew 14% YoY and net profit declined 38% YoY, below our expectations and tracking 22%/3% of our FY25E estimates.</li><li>The weaker-than-expected results were mainly due to lower GPM and FX headwinds in 1Q.</li><li>Looking ahead, given US tariff impact and macro uncertainties, mgmt. lowered 2025 guidance on smartphone (-15% YoY) and System products (-5% to +5% YoY), and guided higher opex for global supply chain alignment. </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 1Q25 revenue grew 14% YoY and net profit declined 38% YoY, below our expectations and tracking 22%/3% of our FY25E estimates.The weaker-than-expected results were mainly due to lower GPM and FX headwinds in 1Q.Looking ahead, given US tariff impact and macro uncertainties, mgmt. lowered 2025 guidance on smartphone (-15% YoY) and System products (-5% to +5% YoY), and guided higher opex for global supply chain alignment. 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) - 1Q25 Results Below

<ul><li>FIT Hon Teng will report 4Q24/FY24E results in mid-March.</li><li>We estimate FY24E revenue/net profit of US$4,555mn/179mn (+9%/+39% YoY), and 4Q24E revenue/net profit of US$1,313mn/78.4mn (+5%/+6% YoY), largely in-line with guidance/consensus.</li><li>Looking into 2025, we are positive on FIT as the major beneficiary of GB200/300 AI server ramp-up and order wins in CPU sockets, liquid cooling components and NVLink copper backplane.</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 will report 4Q24/FY24E results in mid-March.We estimate FY24E revenue/net profit of US$4,555mn/179mn (+9%/+39% YoY), and 4Q24E revenue/net profit of US$1,313mn/78.4mn (+5%/+6% YoY), largely in-line with guidance/consensus.Looking into 2025, we are positive on FIT as the major beneficiary of GB200/300 AI server ramp-up and order wins in CPU sockets, liquid cooling components and NVLink copper backplane.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) - Robust Earnings Recovery; Expect AI Server Momentum to Drive Re-Rating

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Hua Hong Semiconductor / Equity Bottom-Up

<ul>
<li>Hong Kong's secular bull market continues this year with record buying from mainland investors through the Southbound Connect platform.</li>
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<a href="https://www.smartkarma.com/entities/aac-technologies-holdings-inc" target="_blank" data-smartkarma-citation="entities:6544:1" rel="noopener">AAC Technologies Holdings (2018 HK)</a> announced a positive profit alert of of 150% increase in profit for 2024.  The AI, phone and auto segments saw value content increases.
</li>
<li>
<a href="https://www.smartkarma.com/entities/hua-hong-semiconductor-ltd" target="_blank" data-smartkarma-citation="entities:7201:1" rel="noopener">Hua Hong Semiconductor (1347 HK)</a> is well-positioned to cater to China's increasing demand for locally designed and produced chips, especially in the EV, smart home appliances and wearables industries.
</li>
</ul>


Hong Kong's secular bull market continues this year with record buying from mainland investors through the Southbound Connect platform.

AAC Technologies Holdings (2018 HK) announced a positive profit alert of of 150% increase in profit for 2024.  The AI, phone and auto segments saw value content increases.


Hua Hong Semiconductor (1347 HK) is well-positioned to cater to China's increasing demand for locally designed and produced chips, especially in the EV, smart home appliances and wearables industries.



BUY/SELL/HOLD: Hong Kong Stock Update (February 20)

Taiwan

FIT Hon Teng Limited manufactures and distributes electrical components. The Company produces backplane connectors, memory cards, sockets, terminal blocks, and other products. FIT Hon Teng markets its products throughout Taiwan.

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FIT Hon Teng (6088 HK)