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.

Thematic (Sector/Industry)

<ul><li>Nvidia (NVDA, NR) disclosed that the U.S. government informed on April 9 that H20 chips will require a license for export to China and other D:5 countries, and the new requirement will be in place indefinitely.</li><li>Driven by DeepSeek’s lowcost AI models since late Jan, we see accelerated deployments of H20 servers in China, and several server ODM/component suppliers also guided strong order demand from Chinese CSPs for H20-related products.</li><li>In terms of impact, we estimate Nvidia’s inventory writedown of US$5.5bn implies US$14bn sales (GPM 60%), 1.1mn H20 chips (ASP US$12.5k) and 138k H20 AI servers (8 chips/ server). </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.

Nvidia (NVDA, NR) disclosed that the U.S. government informed on April 9 that H20 chips will require a license for export to China and other D:5 countries, and the new requirement will be in place indefinitely.Driven by DeepSeek’s lowcost AI models since late Jan, we see accelerated deployments of H20 servers in China, and several server ODM/component suppliers also guided strong order demand from Chinese CSPs for H20-related products.In terms of impact, we estimate Nvidia’s inventory writedown of US$5.5bn implies US$14bn sales (GPM 60%), 1.1mn H20 chips (ASP US$12.5k) and 138k H20 AI servers (8 chips/ server). 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 - Implications of Nvidia H20 export restriction for AI server/component supply chain

<ul><li>The US's CBP published an updated guidance on 11 Apr to exempt 20 product categories (incl. smartphones, PCs, servers and tablets) from reciprocal tariffs (i.e. 125% China tariff and 10% global tariff).</li><li>However, the US commerce secretary stated on 13 Apr (link) that tariff exemptions for electronic devices were temporary and electronics will come under separate tariffs, along with semiconductors that will be imposed in a month or two.</li><li>Overall, while the upcoming electronics tariff remains an overhang in the near term, we believe 1) the new tariff (vs. 25% for other sectoral tariffs) will be lower than the 125% for China’s previous reciprocal tariff, and 2) recent sector correction has priced in the worst scenario for 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.

The US's CBP published an updated guidance on 11 Apr to exempt 20 product categories (incl. smartphones, PCs, servers and tablets) from reciprocal tariffs (i.e. 125% China tariff and 10% global tariff).However, the US commerce secretary stated on 13 Apr (link) that tariff exemptions for electronic devices were temporary and electronics will come under separate tariffs, along with semiconductors that will be imposed in a month or two.Overall, while the upcoming electronics tariff remains an overhang in the near term, we believe 1) the new tariff (vs. 25% for other sectoral tariffs) will be lower than the 125% for China’s previous reciprocal tariff, and 2) recent sector correction has priced in the worst scenario for 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: Reciprocal Tariff Exemptions for Smartphone /PC...

<ul><li>On 3 April, the US President announced 10% tariff on all imports, and additional reciprocal tariffs will be applied on 60 countries (34% on China, 46% on Vietnam, 26% on India, and 20% on the EU).</li><li>Overall, we believe the scale and pace of the new tariffs are larger and broader than market expected. Below we access the potential impact for component/ODM&amp;OEM/brand supply chain.</li><li>For component (SP/PC/server), we expect limited direct impact for suppliers since most do not export directly to the US. </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.

On 3 April, the US President announced 10% tariff on all imports, and additional reciprocal tariffs will be applied on 60 countries (34% on China, 46% on Vietnam, 26% on India, and 20% on the EU).Overall, we believe the scale and pace of the new tariffs are larger and broader than market expected. Below we access the potential impact for component/ODM&amp;OEM/brand supply chain.For component (SP/PC/server), we expect limited direct impact for suppliers since most do not export directly to the US. 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 - Implications of US reciprocal tariffs on supply chain

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Equity Bottom-Up

<ul><li>Wingtech sells ODM assets to Luxshare as they shift focus towards semiconductors, a strategic move for the Apple supplier.</li><li>India's PLI scheme falls short of goals, prompting a shift towards offering factory subsidies instead to incentivize growth in the industry.</li><li>Taiwan's IPC industry feels the impact of US tariffs, while Foxconn remains tight-lipped on potential collaboration with Mitsubishi Motors.</li></ul>

Wingtech sells ODM assets to Luxshare as they shift focus towards semiconductors, a strategic move for the Apple supplier.India's PLI scheme falls short of goals, prompting a shift towards offering factory subsidies instead to incentivize growth in the industry.Taiwan's IPC industry feels the impact of US tariffs, while Foxconn remains tight-lipped on potential collaboration with Mitsubishi Motors.

Tech Supply Chain Tracker (22-Mar-2025): Wingtech sells ODM assets to Luxshare.

<ul><li>Hon Hai (2317 TW, NR)'s 4Q24 revenue (+15% QoQ, +15% YoY) was in-line, but net profit (-6% QoQ, -13% YoY) missed consensus by -12% mainly due to non-op loss (FX &amp; investment loss).</li><li>For 2025, mgmt. guided 15%+ YoY sales growth, with Cloud/ Networking up 15%+, Components up 15%+, Consumer electronics flattish, and Computing down 5%+.</li><li>For AI server, mgmt. guided 1) 1Q25 sales to grow 100%+ QoQ/YoY, growing QoQ throughout in 2025, 2) GB200 rack yield reaching mass production level, and 3) CSP demand is not slowing down yet and capex will not peak in 2025. </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.

Hon Hai (2317 TW, NR)'s 4Q24 revenue (+15% QoQ, +15% YoY) was in-line, but net profit (-6% QoQ, -13% YoY) missed consensus by -12% mainly due to non-op loss (FX &amp; investment loss).For 2025, mgmt. guided 15%+ YoY sales growth, with Cloud/ Networking up 15%+, Components up 15%+, Consumer electronics flattish, and Computing down 5%+.For AI server, mgmt. guided 1) 1Q25 sales to grow 100%+ QoQ/YoY, growing QoQ throughout in 2025, 2) GB200 rack yield reaching mass production level, and 3) CSP demand is not slowing down yet and capex will not peak in 2025. 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.

Strong AI Server Outlook and Flattish Consumer Electronics in 2025

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)

Technology - Implications of Nvidia H20 export restriction for AI server/component supply chain

In terms of impact, we estimate Nvidia’s inventory writedown of US$5.5bn implies US$14bn sales (GPM 60%), 1.1mn H20 chips (ASP US$12.5k) and 138k...

CMB International

Technology - US Tariff Updates: Reciprocal Tariff Exemptions for Smartphone /PC...

The US's CBP published an updated guidance on 11 Apr to exempt 20 product categories (incl. smartphones, PCs, servers and tablets) from reciprocal...

CMB International

Technology - Implications of US reciprocal tariffs on supply chain

On 3 April, the US President announced 10% tariff on all imports, and additional reciprocal tariffs will be applied on 60 countries (34% on China,...

CMB International

Tech Supply Chain Tracker (22-Mar-2025): Wingtech sells ODM assets to Luxshare.

Wingtech sells ODM assets to Luxshare, PLI scheme misses goals in India, Taiwan IPC industry impacted by tariffs, Foxconn remains silent on...

Tech Supply Chain Tracker

Strong AI Server Outlook and Flattish Consumer Electronics in 2025

Hon Hai (2317 TW, NR)'s 4Q24 revenue (+15% QoQ, +15% YoY) was in-line, but net profit (-6% QoQ, -13% YoY) missed consensus by -12% mainly due to...

CMB International

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