Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Thematic (Sector/Industry)

<div><div><div><div><ul><li>Despite shipment continued to fall y/y, all major markets experienced deceleration in decline.</li><li>DMs like US &amp; W Europe did better with more material deceleration, which helped Apple to solidify its market position.</li><li>EMs remained weak with APAC (ex-Jap &amp; China), CEE and MEA falling 17-20% y/y, which was a bigger headache to the Android camp, especially the Chinese players, among which, Xiaomi had relatively poorer performance.</li></ul></div></div></div></div>

Despite shipment continued to fall y/y, all major markets experienced deceleration in decline.DMs like US &amp; W Europe did better with more material deceleration, which helped Apple to solidify its market position.EMs remained weak with APAC (ex-Jap &amp; China), CEE and MEA falling 17-20% y/y, which was a bigger headache to the Android camp, especially the Chinese players, among which, Xiaomi had relatively poorer performance.

Smartphone – Global Vs China Decelerated Downtrends

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 announced 1Q23 net loss of US$5-10mn, in-line with its earlier conservative FY23E guidance (rev flattish/ NP down 5-15% YoY), mainly due to higher investments in 3+3 strategy and weaker consumer electronic.</li><li>FIT also announced to acquire a land in India for US$23.8mn as part of its strategic directions and overseas expansion.</li><li>After speaking to FIT’s mgmt., we remain positive on FIT’s strategic transformation into EV/audio/5G&amp;IoT in FY23-24E, and we expect 2H23 earnings growth to recover after a weaker 1H23E. </li></ul><p><em>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.</em></p>

FIT Hon Teng announced 1Q23 net loss of US$5-10mn, in-line with its earlier conservative FY23E guidance (rev flattish/ NP down 5-15% YoY), mainly due to higher investments in 3+3 strategy and weaker consumer electronic.FIT also announced to acquire a land in India for US$23.8mn as part of its strategic directions and overseas expansion.After speaking to FIT’s mgmt., we remain positive on FIT’s strategic transformation into EV/audio/5G&amp;IoT in FY23-24E, and we expect 2H23 earnings growth to recover after a weaker 1H23E. 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) – 1Q23 Dragged by Higher Investments and Macro Headwinds

<ul><li>We hosted a post-results NDR call with FIT mgmt. yesterday, and came out with a positive view on its US$800mn investment plan for global expansion and 3+3 strategic transformations.</li><li>Despite a softer year in FY23E, we believe global capacity expansion will allow FIT to capture new opportunities in TWS and EV products in FY24/25E.</li><li>We lowered our estimates to reflect higher investments in FY23/24E, and adjusted our TP to HK$2.46 based on rollover 11x FY24E P/E. Reiterate BUY. </li></ul><p><em>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.</em></p>

We hosted a post-results NDR call with FIT mgmt. yesterday, and came out with a positive view on its US$800mn investment plan for global expansion and 3+3 strategic transformations.Despite a softer year in FY23E, we believe global capacity expansion will allow FIT to capture new opportunities in TWS and EV products in FY24/25E.We lowered our estimates to reflect higher investments in FY23/24E, and adjusted our TP to HK$2.46 based on rollover 11x FY24E P/E. Reiterate BUY. 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 Correction Overdone

<ul><li>FIT Hon Teng will report FY22 results this week.</li><li>We estimate FY22E revenue/ net profit to increase 2%/34% YoY to US$ 4,578mn/185mn, 1%/15% above consensus, mainly driven by strong smartphone/audio sales, solid EV segment, and margin recovery across all segments.</li><li>By segment, we expect smartphone /networking/computing/EV/system product to grow 13%/-15%/-7%/20%/13% YoY in FY22E.</li></ul><p><em>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.</em></p>

FIT Hon Teng will report FY22 results this week.We estimate FY22E revenue/ net profit to increase 2%/34% YoY to US$ 4,578mn/185mn, 1%/15% above consensus, mainly driven by strong smartphone/audio sales, solid EV segment, and margin recovery across all segments.By segment, we expect smartphone /networking/computing/EV/system product to grow 13%/-15%/-7%/20%/13% YoY in FY22E.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) – FY22 Preview: Strong Execution of “3+3 Strategy”

<ul><li>Apple reported a FY1Q (CY4Q22) with EPS of US$1.88 (-10% YoY) and revenue of US$117.2bn (-5% YoY), which are 3.1% and 3.3% below consensus, largely due to weak macro and iPhone 14 Pro/Max supply chain constraints on COVID-19 in China.</li><li>Looking into FY2Q23, mgmt. expected revenue to perform similarly to FY1Q23 (-5% YoY) with iPhone to accelerate and Mac/iPad to decline double digit YoY.</li><li>Given the challenging revenue outlook, we expect near-term profit taking on slower iPhone/Mac/iPad, but we remain positive on Apple supply chain over Android camp in 2H23E, given iPhone replacement cycle and share gain from Samsung/Android camp. </li></ul><p><em>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.</em></p>

Apple reported a FY1Q (CY4Q22) with EPS of US$1.88 (-10% YoY) and revenue of US$117.2bn (-5% YoY), which are 3.1% and 3.3% below consensus, largely due to weak macro and iPhone 14 Pro/Max supply chain constraints on COVID-19 in China.Looking into FY2Q23, mgmt. expected revenue to perform similarly to FY1Q23 (-5% YoY) with iPhone to accelerate and Mac/iPad to decline double digit YoY.Given the challenging revenue outlook, we expect near-term profit taking on slower iPhone/Mac/iPad, but we remain positive on Apple supply chain over Android camp in 2H23E, given iPhone replacement cycle and share gain from Samsung/Android camp. 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 Sector – Apple FY1Q23 Miss on Macro and Supply Chain Issues

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
P/E	0.00
Dividend (Yield)	0.00

FIT Hon Teng (6088 HK)

Smartphone – Global Vs China Decelerated Downtrends

Despite shipment continued to fall y/y, all major markets experienced deceleration in decline. DMs like US & W Europe did better with more material...

Quam Securities