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>Intron’s 1H25 revenue growth of 5% YoY was largely in-line with our estimate, but net profit dropped 49% YoY as a result of pricing pressure from downstream customers.</li><li>1H25 GPM came in at 13.5% (vs 16.9% in 1H24), and Intron maintained a high level of R&amp;D expenses at 7.4% ratio as order demand remained strong (volume up 30%+ YoY).</li><li>By segment, safety/powertrain/cloud revenue grew 27%/15%/135% YoY, offset by declines from new energy/body control/service segments (-1%/-26%/-13% 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.

Intron’s 1H25 revenue growth of 5% YoY was largely in-line with our estimate, but net profit dropped 49% YoY as a result of pricing pressure from downstream customers.1H25 GPM came in at 13.5% (vs 16.9% in 1H24), and Intron maintained a high level of R&amp;D expenses at 7.4% ratio as order demand remained strong (volume up 30%+ YoY).By segment, safety/powertrain/cloud revenue grew 27%/15%/135% YoY, offset by declines from new energy/body control/service segments (-1%/-26%/-13% 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.

Intron Tech (1760 HK) - 1H25 GPM Pressure Remained; Trim TP to HK$2.11

Thematic (Sector/Industry)

<ul><li>Following our note last week, we received investor questions focused on 1) “20% US content rule” exemptions, 2) impact of China 34% tariff' on the US, 3) Vietnam proposed 0% tariff, 4) de-minimis rule removal, 5) bottom-fishing opportunities, and 6) company feedback/response on the new tariff. Below we offer perspectives on investor FAQs regarding the implications.</li><li>Despite sector valuation still being 15-20% away from the historical trough now, we would start to look for some quality names to accumulate on further weakness, including Xiaomi, AAC, Sunny Optical, BYDE and Q-tech.</li><li>“20% US content rule” exemptions in “Annex III” sub-document? The US White House published a sub-document, Annex II, for the US Reciprocal Tariffs.</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.

Following our note last week, we received investor questions focused on 1) “20% US content rule” exemptions, 2) impact of China 34% tariff' on the US, 3) Vietnam proposed 0% tariff, 4) de-minimis rule removal, 5) bottom-fishing opportunities, and 6) company feedback/response on the new tariff. Below we offer perspectives on investor FAQs regarding the implications.Despite sector valuation still being 15-20% away from the historical trough now, we would start to look for some quality names to accumulate on further weakness, including Xiaomi, AAC, Sunny Optical, BYDE and Q-tech.“20% US content rule” exemptions in “Annex III” sub-document? The US White House published a sub-document, Annex II, for the US Reciprocal Tariffs.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 - US Tariff Updates: Addressing FAQs After a Volatile Day

<ul><li>BYD announced plans to offer its “God’s Eye” advanced intelligent driving system on all models priced above RMB100k and 3 models priced below 100k, during its “Vehicle Intelligent Strategy” event in Shenzhen on 10 Feb.</li><li>Initial rollout includes 21 models, all equipped with industry-leading specs with endto-end LLM, 5 mm-wave radars, 12 cameras and 12 ultrasonic radars.</li><li>We believe BYD’s acceleration of intelligent driving with strong new model pipeline will boost adoption of intelligent driving in China, and key beneficiaries include BYDE (ADAS/domain controller), Sunny Optical/Q-tech/Cowell (1415 HK, NR)/AAC (camera/LiDAR/radar), BOEVx (display), AAC Tech (acoustics) and Luxshare/FIT (connector).</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.

BYD announced plans to offer its “God’s Eye” advanced intelligent driving system on all models priced above RMB100k and 3 models priced below 100k, during its “Vehicle Intelligent Strategy” event in Shenzhen on 10 Feb.Initial rollout includes 21 models, all equipped with industry-leading specs with endto-end LLM, 5 mm-wave radars, 12 cameras and 12 ultrasonic radars.We believe BYD’s acceleration of intelligent driving with strong new model pipeline will boost adoption of intelligent driving in China, and key beneficiaries include BYDE (ADAS/domain controller), Sunny Optical/Q-tech/Cowell (1415 HK, NR)/AAC (camera/LiDAR/radar), BOEVx (display), AAC Tech (acoustics) and Luxshare/FIT (connector).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 - Intelligence Driving: Implications of BYD’s “vehicle Intelligence Strategy” Event

<ul><li>We talked to Intron’s mgmt. post FY24 results. While Intron posted solid revenue growth of 15% YoY driven by new energy/automated &amp; connected vehicles/ body control segments (+24%/27%/11% YoY), GPM declined to 14.5% in FY24 (vs 18.7% in FY23), mainly due to OEM pricing competition.</li><li>Looking into FY25E, mgmt. is positive on revenue outlook and resilient GPM, especially new energy and automated &amp; connected vehicles segments benefiting from NEV, smart driving and client overseas expansion trend.</li><li>We trim FY25/26E EPS forecasts by 33%/32% to factor in lower GPM and higher sales. Our new TP of HK$2.34 is based on rollover 9.0x FY25E P/E (vs prior 10x FY24 P/E), in-line with 1-sd below 8-yr hist. avg. P/E of 9.5x, given near-term industry headwinds.</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 talked to Intron’s mgmt. post FY24 results. While Intron posted solid revenue growth of 15% YoY driven by new energy/automated &amp; connected vehicles/ body control segments (+24%/27%/11% YoY), GPM declined to 14.5% in FY24 (vs 18.7% in FY23), mainly due to OEM pricing competition.Looking into FY25E, mgmt. is positive on revenue outlook and resilient GPM, especially new energy and automated &amp; connected vehicles segments benefiting from NEV, smart driving and client overseas expansion trend.We trim FY25/26E EPS forecasts by 33%/32% to factor in lower GPM and higher sales. Our new TP of HK$2.34 is based on rollover 9.0x FY25E P/E (vs prior 10x FY24 P/E), in-line with 1-sd below 8-yr hist. avg. P/E of 9.5x, given near-term industry headwinds.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.

Intron Tech (1760 HK) - 2024 Revenue In-Line

<ul><li>Intron Tech reported 1H24 revenue of RMB 2.84bn (+8% YoY) and net profit of RMB 97.7mn (-37% YoY), both below our/consensus estimates, mainly due to the GPM decline to 15.9% (-4.7ppts YoY) on intensified competition and price pressure from auto OEM customers.</li><li>Looking ahead to 2H24E, mgmt. guided net profit margin to recover HoH on new order wins in new energy/ADAS and overseas customer expansion.</li><li>We trim FY24-25E EPS by 43-49% to factor in the 1H24 miss, margin pressure and weaker topline growth. </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.

Intron Tech reported 1H24 revenue of RMB 2.84bn (+8% YoY) and net profit of RMB 97.7mn (-37% YoY), both below our/consensus estimates, mainly due to the GPM decline to 15.9% (-4.7ppts YoY) on intensified competition and price pressure from auto OEM customers.Looking ahead to 2H24E, mgmt. guided net profit margin to recover HoH on new order wins in new energy/ADAS and overseas customer expansion.We trim FY24-25E EPS by 43-49% to factor in the 1H24 miss, margin pressure and weaker topline growth. 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.

Intron Tech (1760 HK) - 1H24 Below on Weaker Margin

Hong Kong

Intron Technology is a fast-growing automotive electronics solutions provider, manufacturing and supplying electrical and electronic components to original equipment manufacturers (OEMs). The company focuses on critical automotive electronic components for new energy vehicles (NEV), body control, safety, and powertrain systems, also offering engineering services such as product development and testing. Intron Technology is headquartered in Sha Tin, Hong Kong, and was founded in 2001.

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Intron Technology (1760 HK)

Intron Tech (1760 HK) - 1H25 GPM Pressure Remained; Trim TP to HK$2.11

Intron’s 1H25 revenue growth of 5% YoY was largely in-line with our estimate, but net profit dropped 49% YoY as a result of pricing pressure from...

CMB International

Technology - US Tariff Updates: Addressing FAQs After a Volatile Day

Following our note last week, we received investor questions focused on 1) “20% US content rule” exemptions, 2) impact of China 34% tariff' on the...

CMB International

Technology - Intelligence Driving: Implications of BYD’s “vehicle Intelligence Strategy” Event

BYD announced plans to offer its “God’s Eye” advanced intelligent driving system on all models priced above RMB100k and 3 models priced below 100k

CMB International

Intron Tech (1760 HK) - 2024 Revenue In-Line

While Intron posted solid revenue growth of 15% YoY driven by new energy/automated & connected vehicles/ body control segments (+24%/27%/11% YoY)

CMB International

Intron Tech (1760 HK) - 1H24 Below on Weaker Margin

Intron Tech reported 1H24 revenue of RMB 2.84bn (+8% YoY) and net profit of RMB 97.7mn (-37% YoY), both below our/consensus estimates, mainly due...

CMB International

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