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>2Q23 global smartphone shipment posted 7.8% YoY decline, which narrowed from -14.6%/-18.3% YoY in 1Q23/4Q22, based on IDC.</li><li>Despite shipment weakness in 1H23, inventory level started to normalize in 2Q23, and we expect supply chain restocking will lead to positive YoY growth in 4Q23E.</li><li>In particular, China market outperformed in 2Q23 with -2.1% YoY (vs. -12.1%/-12.8% YoY in 1Q23/ 4Q22).</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.

2Q23 global smartphone shipment posted 7.8% YoY decline, which narrowed from -14.6%/-18.3% YoY in 1Q23/4Q22, based on IDC.Despite shipment weakness in 1H23, inventory level started to normalize in 2Q23, and we expect supply chain restocking will lead to positive YoY growth in 4Q23E.In particular, China market outperformed in 2Q23 with -2.1% YoY (vs. -12.1%/-12.8% YoY in 1Q23/ 4Q22).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.

China Technology – 2Q23 Global Smartphone Shipment Decline Narrowed

Equity Bottom-Up

<ul><li>We hosted an investor meeting with FIT’s mgmt. this week. Investors are interested in 2H23 outlook, technology trends and investment roadmap.</li><li>Overall, we remain positive on margin recovery in FY24/25E following higher investment into new products in FY23E.</li><li>We expect opex ratio to peak at 14.0% in FY23E and improve to 13.2%/12.8% in FY24/25E on economies of scale of new highermargin products. </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 meeting with FIT’s mgmt. this week. Investors are interested in 2H23 outlook, technology trends and investment roadmap.Overall, we remain positive on margin recovery in FY24/25E following higher investment into new products in FY23E.We expect opex ratio to peak at 14.0% in FY23E and improve to 13.2%/12.8% in FY24/25E on economies of scale of new highermargin products. 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) – Multiple Growth Drivers and Margin Recovery in FY24/25E

<ul><li>We discussed with mgmt. after recent correction this week.</li><li>Overall, we believe market concerns on higher opex are overdone since we expect opex ratio to peak at 14.0% in FY23E and improve to 13.2%/12.8% in FY24/25E on the back of economies of scale and improving efficiency.</li><li>We also expect FIT’s product expansion into higher-margin 400G optical cable/acoustics/EV components through Prettl’s acquisition would drive NPM recovery from 3.2% in FY23E to 3.6%/4.0% in FY24/25E. </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 discussed with mgmt. after recent correction this week.Overall, we believe market concerns on higher opex are overdone since we expect opex ratio to peak at 14.0% in FY23E and improve to 13.2%/12.8% in FY24/25E on the back of economies of scale and improving efficiency.We also expect FIT’s product expansion into higher-margin 400G optical cable/acoustics/EV components through Prettl’s acquisition would drive NPM recovery from 3.2% in FY23E to 3.6%/4.0% in FY24/25E. 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) – Recent Sell-Off Overdone

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 16th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We estimate the inflows to be USD 1.5bn and highlight flows for CCB.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 16th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We estimate the inflows to be USD 1.5bn and highlight flows for CCB.


<ul><li>FIT Hon Teng announced 1Q23 results with net loss of US$ 9.3mn, in-line with earlier preview and our estimates, mainly due to weak seasonality and US$5mn expense on digital transformation.</li><li>Despite near-term pressure for digitalization and overseas expansion, mgmt. maintained FY23E sales/earnings guidance, and expected earnings recovery in 2H23E, driven by new iPhone, 400G module, CPU socket and Prettl’s M&amp;A integration.</li><li>We slightly revised FY23-25E EPS by 1-5% to reflect higher expense for business transformation. The stock now trades at 9.2x/7.5x FY23E/24E 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.

FIT Hon Teng announced 1Q23 results with net loss of US$ 9.3mn, in-line with earlier preview and our estimates, mainly due to weak seasonality and US$5mn expense on digital transformation.Despite near-term pressure for digitalization and overseas expansion, mgmt. maintained FY23E sales/earnings guidance, and expected earnings recovery in 2H23E, driven by new iPhone, 400G module, CPU socket and Prettl’s M&amp;A integration.We slightly revised FY23-25E EPS by 1-5% to reflect higher expense for business transformation. The stock now trades at 9.2x/7.5x FY23E/24E 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.

FIT Hon Teng (6088 HK) – Weak 1Q23 as Expected

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
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Dividend (Yield)	0.00

FIT Hon Teng (6088 HK)

China Technology – 2Q23 Global Smartphone Shipment Decline Narrowed

2Q23 global smartphone shipment posted 7.8% YoY decline, which narrowed from -14.6%/-18.3% YoY in 1Q23/4Q22, based on IDC.

CMB International