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

Hua Hong Semiconductor / Equity Bottom-Up

<ul><li>Hua Hong released its 4Q25/FY25 results. 4Q25 revenue rose 22.4% YoY / 3.9% QoQ to US$660mn, a quarterly record, driven by high utilization and robust shipments.</li><li>GPM was 13.0% in 3Q, down from 13.5% in 3Q but in line with mgmt.’s guidance.</li><li>Net profit was US$17mn in 4Q, down 53.4% QoQ mainly due to higher labor costs.</li><li>For FY25, revenue increased 20% YoY to US$2.4bn (in line with our estimates and BBG consensus), while GPM was 11.8%, also in line with our estimates and BBG consensus, partly offset by higher depreciation. </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.

Hua Hong released its 4Q25/FY25 results. 4Q25 revenue rose 22.4% YoY / 3.9% QoQ to US$660mn, a quarterly record, driven by high utilization and robust shipments.GPM was 13.0% in 3Q, down from 13.5% in 3Q but in line with mgmt.’s guidance.Net profit was US$17mn in 4Q, down 53.4% QoQ mainly due to higher labor costs.For FY25, revenue increased 20% YoY to US$2.4bn (in line with our estimates and BBG consensus), while GPM was 11.8%, also in line with our estimates and BBG consensus, partly offset by higher depreciation. 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.

Hua Hong Semi (1347 HK) - Improving Mix and Scale, yet Valuation Stretches

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)

<ul><li>Sentiment improved during the session as AI-related optimism gained traction, with DeepSeek’s latest model performance reinforcing confidence in China’s progress in artificial intelligence and supporting expectations of rising demand for domestic computing hardware.</li><li>On the market, energy and metals stocks surged, with Yongxing Special Materials Technology (002756 CH) hitting the daily limit; agrochemicals stocks also rose, with Tianhe Agricultural Means Of Production (002999 CH) hitting the daily limit.</li><li>Investor sentiment was further dampened by White House accusations that China engaged in large-scale intellectual property theft from US AI labs, adding friction ahead of a planned leaders’ summit next month.</li></ul>

Sentiment improved during the session as AI-related optimism gained traction, with DeepSeek’s latest model performance reinforcing confidence in China’s progress in artificial intelligence and supporting expectations of rising demand for domestic computing hardware.On the market, energy and metals stocks surged, with Yongxing Special Materials Technology (002756 CH) hitting the daily limit; agrochemicals stocks also rose, with Tianhe Agricultural Means Of Production (002999 CH) hitting the daily limit.Investor sentiment was further dampened by White House accusations that China engaged in large-scale intellectual property theft from US AI labs, adding friction ahead of a planned leaders’ summit next month.

<ul><li>Major global semi foundries (TSMC/UMC/VIS/GF/SMIC/HH) reported in-line 3Q23 results but mixed 4Q23 outlook with shipment/ASP pressure and lower GPM given weak broad-based recovery, low UTR, depreciation and higher utility costs.</li><li>Looking into 2024, most fabs expected 2024 to be a year of growth driven by consumer/smartphone/PC recovery despite automotive inventory correction.</li><li>Overall, we expect global foundry industry to return to positive growth in 1H24. </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.

Major global semi foundries (TSMC/UMC/VIS/GF/SMIC/HH) reported in-line 3Q23 results but mixed 4Q23 outlook with shipment/ASP pressure and lower GPM given weak broad-based recovery, low UTR, depreciation and higher utility costs.Looking into 2024, most fabs expected 2024 to be a year of growth driven by consumer/smartphone/PC recovery despite automotive inventory correction.Overall, we expect global foundry industry to return to positive growth in 1H24. 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.

<ul><li>Both SMIC and Hua Hong Semi posted in-line 3Q23 results but GPM pressure continued on lower UTR and ASP.</li><li>Looking ahead, both companies expected stabilizing demand on smartphone/CE recovery, and highlighted concerns on high inventory in automotive market.</li><li>On mature nodes, both expected stable demand into 2024 but lack growth momentum, and SMIC guided 8-inch UTR to remain at 50-70% in 2024. </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.

Both SMIC and Hua Hong Semi posted in-line 3Q23 results but GPM pressure continued on lower UTR and ASP.Looking ahead, both companies expected stabilizing demand on smartphone/CE recovery, and highlighted concerns on high inventory in automotive market.On mature nodes, both expected stable demand into 2024 but lack growth momentum, and SMIC guided 8-inch UTR to remain at 50-70% in 2024. 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 – SMIC/Hua Hong Semi 3Q23: in-line revenue; ASP/GPM pressure to persist into 4Q23E

<ul><li>TSMC recorded in-line 3Q23 results and 4Q revenue guidance implies betterthan-expected FY23E outlook, driven by stabilised demand of smartphone &amp; PC and inventory restocking.</li><li>Auto segment may slow down in 2H23E, but it is set to rebound in 2024 driven by the NEV market.</li><li>Looking ahead, we expect market will react positively to 3Q23 results, demand stabilisation and inventory restocking. </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.

TSMC recorded in-line 3Q23 results and 4Q revenue guidance implies betterthan-expected FY23E outlook, driven by stabilised demand of smartphone &amp; PC and inventory restocking.Auto segment may slow down in 2H23E, but it is set to rebound in 2024 driven by the NEV market.Looking ahead, we expect market will react positively to 3Q23 results, demand stabilisation and inventory restocking. 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 – Implications of TSMC 3Q23: Cycle Nearing the Bottom

China

Hua Hong Semiconductor is a global pure-play semiconductor foundry specializing in embedded/standalone non-volatile memory, power discrete, analog & power management, and logic & RF technologies. The company provides diversified wafer fabrication and supporting services for various specialty process platforms. It is headquartered in Shanghai, China, and was founded in 2005.

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Hua Hong Semiconductor (1347 HK)

Hua Hong Semi (1347 HK) - Improving Mix and Scale, yet Valuation Stretches

Hua Hong released its 4Q25/FY25 results. 4Q25 revenue rose 22.4% YoY / 3.9% QoQ to US$660mn, a quarterly record, driven by high utilization and...

CMB International

Quam Morning Note (27 Apr)

Sentiment improved during the session as AI-related optimism gained traction, with DeepSeek’s latest model performance reinforcing confidence in...

Quam Securities

Technology – Global Foundry 3Q23 Wrap

Looking into 2024, most fabs expected 2024 to be a year of growth driven by consumer/smartphone/PC recovery despite automotive inventory correction

CMB International

China Technology – SMIC/Hua Hong Semi 3Q23: in-line revenue; ASP/GPM pressure to persist into 4Q23E

On mature nodes, both expected stable demand into 2024 but lack growth momentum, and SMIC guided 8-inch UTR to remain at 50-70% in 2024.

CMB International

China Technology – Implications of TSMC 3Q23: Cycle Nearing the Bottom

TSMC recorded in-line 3Q23 results and 4Q revenue guidance implies betterthan-expected FY23E outlook, driven by stabilised demand of smartphone &...

CMB International

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