Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of May 12th.</li>
<li>We estimate the weekly inflows to be US$1,581.0 million, led by financials, industrials, communication services sectors, and offset by consumer staples, information technology.</li>
<li>We highlight flows for Contemporary Amperex Technology, China Construction Bank, Kweichow Moutai, Luxshare Precision Industry, Han's Laser Technology Industry.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of May 12th.
We estimate the weekly inflows to be US$1,581.0 million, led by financials, industrials, communication services sectors, and offset by consumer staples, information technology.
We highlight flows for Contemporary Amperex Technology, China Construction Bank, Kweichow Moutai, Luxshare Precision Industry, Han's Laser Technology Industry.


Northbound Flows (May 12th): CATL, CCB, Moutai, Luxshare Precision, Han's Laser

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

Novatek Microelectronics Corp / Equity Bottom-Up

<ul>
<li>Novatek reported earnings ahead of expectations where margins rose thanks to recovery in pricing for its products in inventory. Inventory metrics improved as well.</li>
<li>Key industry readthrough -- Novatek seeing strongest demand for DDICs (display driver chips) coming from the small/medium form factor and highlighted mass production of VR as a cause.</li>
<li>Apple could be quietly preparing for mass production of AR/VR headset ahead of announcement at June's WWDC. Combined with Novatek's comments, could AR/VR will be going mass market this year?</li>
</ul>


Novatek reported earnings ahead of expectations where margins rose thanks to recovery in pricing for its products in inventory. Inventory metrics improved as well.
Key industry readthrough -- Novatek seeing strongest demand for DDICs (display driver chips) coming from the small/medium form factor and highlighted mass production of VR as a cause.
Apple could be quietly preparing for mass production of AR/VR headset ahead of announcement at June's WWDC. Combined with Novatek's comments, could AR/VR will be going mass market this year?


Novatek: Volume Production of VR Driving Strongest Segment; AR/VR Finally Going Mass Market in 2023?

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of May 5th.</li>
<li>We estimate the weekly outflows to be US$75.1 million, led by information technology, materials, and offset by financials, consumer staples, health care.</li>
<li>We highlight flows for Kweichow Moutai, Foxconn Industrial Internet, Gree Electric Appliances.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of May 5th.
We estimate the weekly outflows to be US$75.1 million, led by information technology, materials, and offset by financials, consumer staples, health care.
We highlight flows for Kweichow Moutai, Foxconn Industrial Internet, Gree Electric Appliances.


Northbound Flows (May 5th): Kweichow Moutai, Foxconn Industrial Internet, Gree Electric Appliances

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.

Luxshare Precision Industry / Equity Bottom-Up

<ul><li>Luxshare posted FY22 revenue/NP growth of 39%/30% YoY, largely in-line with expectations, and it also pre-announced 1H23 earnings growth of 10-20% YoY, which we believe is resilient given weakness in smartphone/ consumer electronics market.</li><li>Given challenging macro headwinds, Luxshare delivered impressive operating efficiency and cost synergies.</li><li>Looking forward, following multiple strategic M&amp;As in 2020/21, we believe Luxshare is well-positioned to gain share in iPhone/Macbook/iPad/Watch OEM/components, and capture opportunities in automobile tier-1 biz and AR/VR product cycle. </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>

Luxshare posted FY22 revenue/NP growth of 39%/30% YoY, largely in-line with expectations, and it also pre-announced 1H23 earnings growth of 10-20% YoY, which we believe is resilient given weakness in smartphone/ consumer electronics market.Given challenging macro headwinds, Luxshare delivered impressive operating efficiency and cost synergies.Looking forward, following multiple strategic M&amp;As in 2020/21, we believe Luxshare is well-positioned to gain share in iPhone/Macbook/iPad/Watch OEM/components, and capture opportunities in automobile tier-1 biz and AR/VR product cycle. 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.

Luxshare (002475 CH) – Resilient FY22/1H23 despite industry headwinds

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of March 24th.</li>
<li>We estimate the weekly inflows to be US$1,685.1 million, led by industrials, information technology, health care sectors, and offset by energy, financials.</li>
<li>We highlight flows for Boe Technology, Contemporary Amperex Technology, Kweichow Moutai, Shenzhen Inovance Technology, Luxshare Precision Industry, Hithink Royalflush Information Network, China Shenhua Energy, Foxconn Industrial Internet, Ping An Insurance.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of March 24th.
We estimate the weekly inflows to be US$1,685.1 million, led by industrials, information technology, health care sectors, and offset by energy, financials.
We highlight flows for Boe Technology, Contemporary Amperex Technology, Kweichow Moutai, Shenzhen Inovance Technology, Luxshare Precision Industry, Hithink Royalflush Information Network, China Shenhua Energy, Foxconn Industrial Internet, Ping An Insurance.


Northbound Flows (Mar 24th): Boe, CATL, Moutai, Shenzhen Inovance, Luxshare

China

Luxshare Precision Industry Co., Ltd. researches, manufactures and sells connectors. The Company's products are widely used in computers, communication devices, consumer electronics products and automobiles.

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Luxshare Precision Industry (002475 CH)

Northbound Flows (May 12th): CATL, CCB, Moutai, Luxshare Precision, Han's Laser

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for CATL, CCB, Moutai, Luxshare Precision, Han's Laser.

Ke Yan, CFA, FRM

Novatek: Volume Production of VR Driving Strongest Segment; AR/VR Finally Going Mass Market in 2023?

Apple could be quietly preparing for mass production of AR/VR headset ahead of announcement at June's WWDC. Combined with Novatek's comments, could...

Vincent Fernando, CFA

Northbound Flows (May 5th): Kweichow Moutai, Foxconn Industrial Internet, Gree Electric Appliances

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Kweichow Moutai, Foxconn Industrial Internet, Gree...

Ke Yan, CFA, FRM

Luxshare (002475 CH) – Resilient FY22/1H23 despite industry headwinds

Luxshare posted FY22 revenue/NP growth of 39%/30% YoY, largely in-line with expectations, and it also pre-announced 1H23 earnings growth of 10-20% YoY

CMB International

Northbound Flows (Mar 24th): Boe, CATL, Moutai, Shenzhen Inovance, Luxshare

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Boe, CATL, Moutai, Shenzhen Inovance, Luxshare.

Ke Yan, CFA, FRM

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52-week Range

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