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.

Equity Bottom-Up

<ul><li>Intron, which is a provider of electronic solutions, mainly for vehicles, announced its 2022 annual result with a net profit growth of 107% on 52% growth in revenue and GPM expansion of 1.9 ppts to 21.5%.</li><li>The company has benefited from the strong growth in the NEV market in China as NEVs tend to packed with more electronic parts and components for many advanced features.</li><li>Although there is intense price competition in the auto market in China currently, this could offer more opportunities to the company as OEMs seek for more price competitive solutions from third-party suppliers. Intron is currently trading at 12x 2023 consensus P/E.</li></ul>

Intron, which is a provider of electronic solutions, mainly for vehicles, announced its 2022 annual result with a net profit growth of 107% on 52% growth in revenue and GPM expansion of 1.9 ppts to 21.5%.The company has benefited from the strong growth in the NEV market in China as NEVs tend to packed with more electronic parts and components for many advanced features.Although there is intense price competition in the auto market in China currently, this could offer more opportunities to the company as OEMs seek for more price competitive solutions from third-party suppliers. Intron is currently trading at 12x 2023 consensus P/E.

Intron (1760 HK, NR) - OEM Price War Could Be an Opportunity

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.

L.K. Technology Holdings / Equity Bottom-Up

<ul><li>Integrated die-casting solution continues to offer cost advantage to auto makers.</li><li>LK believes that the replacement of welding by die-casting will continue, as it helps auto makers achieve: (1) Cost reduction: 40% reduction in capex and 30% decrease in floor area taken by production line; (2) Lightweighting: 10-20% reduction in total car weight, translating into a 14% enhancement in driving range/charging for NEV; and (3) Production efficiency: production cycle is shortened substantially from 120mins to 110- 120s by applying integrated die-casting technology.</li><li>Estimated market size of ultra-large size die-casting machinery.</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>

Integrated die-casting solution continues to offer cost advantage to auto makers.LK believes that the replacement of welding by die-casting will continue, as it helps auto makers achieve: (1) Cost reduction: 40% reduction in capex and 30% decrease in floor area taken by production line; (2) Lightweighting: 10-20% reduction in total car weight, translating into a 14% enhancement in driving range/charging for NEV; and (3) Production efficiency: production cycle is shortened substantially from 120mins to 110- 120s by applying integrated die-casting technology.Estimated market size of ultra-large size die-casting machinery.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.

L.K. Technology (558 HK) – Key takeaways from plant visit in Shenzhen

Hong Kong

L.K. Technology Holdings Ltd. designs, manufactures, and markets hot chamber and cold chamber die-casting machines and plastic injection molding machines. The Company primarily sells its machines to customers in the People's Republic of China.

L.K. Technology Holdings (558 HK)

Intron (1760 HK, NR) - OEM Price War Could Be an Opportunity

The company has benefited from the strong growth in the NEV market in China as NEVs tend to packed with more electronic parts and components for...

Quam Securities

L.K. Technology (558 HK) – Key takeaways from plant visit in Shenzhen

LK believes that the replacement of welding by die-casting will continue, as it helps auto makers achieve: (1) Cost reduction: 40% reduction in...

CMB International