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>Microsoft reported (26 Apr BJT) better-than-expected 3QFY24 (June year-end) results: revenue was US$61.9bn, up 17% YoY (2QFY24: +18% YoY; 3QFY23: +7% YoY), 2% better than Bloomberg consensus driven by better-thanexpected revenue growth in Intelligent Cloud (IC) and More Personal Computing (MPC) business; net income was up 20% YoY to US$21.9bn, 4% ahead of consensus estimates, thanks to stringent cost control and improvement in operating leverage.</li><li>Management highlighted that AI related demand remained strong, and guided to further increase investments in capex to fulfil the unmet demand.</li><li>Although the incremental investments and consolidation of Blizzard are likely to weigh on margin, management still expects at least 2pp YoY OPM expansion for FY24, aided by operating efficiency improvement. </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.

Microsoft reported (26 Apr BJT) better-than-expected 3QFY24 (June year-end) results: revenue was US$61.9bn, up 17% YoY (2QFY24: +18% YoY; 3QFY23: +7% YoY), 2% better than Bloomberg consensus driven by better-thanexpected revenue growth in Intelligent Cloud (IC) and More Personal Computing (MPC) business; net income was up 20% YoY to US$21.9bn, 4% ahead of consensus estimates, thanks to stringent cost control and improvement in operating leverage.Management highlighted that AI related demand remained strong, and guided to further increase investments in capex to fulfil the unmet demand.Although the incremental investments and consolidation of Blizzard are likely to weigh on margin, management still expects at least 2pp YoY OPM expansion for FY24, aided by operating efficiency improvement. 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.

Microsoft (MSFT US) - AI Related Demand Remained Strong

<ul><li>Microsoft is the consensus AI thematic pick among the global tech companies.</li><li>Its cohesive product portfolio, exclusive partnership with OpenAI, large consumer user base and business customer base, as well as R&amp;D leadership all present new business development opportunities amid the generative AI wave.</li><li>We are constructive on Microsoft’s long-term growth potential, and believe that Microsoft is poised for further market share gains for all its key product portfolio with the empowerment of generative AI. </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.

Microsoft is the consensus AI thematic pick among the global tech companies.Its cohesive product portfolio, exclusive partnership with OpenAI, large consumer user base and business customer base, as well as R&amp;D leadership all present new business development opportunities amid the generative AI wave.We are constructive on Microsoft’s long-term growth potential, and believe that Microsoft is poised for further market share gains for all its key product portfolio with the empowerment of generative AI. 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.

Microsoft (MSFT US) - AI and Copilot Unlocking Growth Potential

Thematic (Sector/Industry)

<ul>
<li>Amazon, Microsoft, Google and Meta, collectively known as Hyperscaler 3 &amp; Meta, have recently announced their CY4Q23 results, unanimously claiming to increase investments in AI-related infrastructure from the current levels.</li>
<li>Per Bloomberg consensus, the capex of Hyperscaler 3 &amp; Meta will grow 22.6% in 2024, higher than prior forecasts of 16.6%.</li>
<li>This capex boost further confirms our perspective on the ongoing AI momentum into 2024, driven by strong demand for building computing capacity.</li>
</ul>


Amazon, Microsoft, Google and Meta, collectively known as Hyperscaler 3 &amp; Meta, have recently announced their CY4Q23 results, unanimously claiming to increase investments in AI-related infrastructure from the current levels.
Per Bloomberg consensus, the capex of Hyperscaler 3 &amp; Meta will grow 22.6% in 2024, higher than prior forecasts of 16.6%.
This capex boost further confirms our perspective on the ongoing AI momentum into 2024, driven by strong demand for building computing capacity.


Semi - Hyperscalers’ FY23 Results Review

<ul><li>Microsoft unveiled two major custom-designed chips for cloud computing at its Ignite developer conference on 15 Nov 2023, Maia 100 AI accelerator and Cobalt 100 CPU.</li><li>Maia 100 was specifically designed with consideration of Azure hardware. It will be mainly used for AI tasks and generative AI for maximized utilization of hardware.</li><li>It will power some of Microsoft’s largest internal AI workloads running on Azure. </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.

Microsoft unveiled two major custom-designed chips for cloud computing at its Ignite developer conference on 15 Nov 2023, Maia 100 AI accelerator and Cobalt 100 CPU.Maia 100 was specifically designed with consideration of Azure hardware. It will be mainly used for AI tasks and generative AI for maximized utilization of hardware.It will power some of Microsoft’s largest internal AI workloads running on Azure. 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>Post 3Q earnings, investors have regained confidence in AI capital spending for the next few quarters. Amazon/Microsoft/Alphabet/Meta (“CSP3 &amp; Meta”) all announced QoQ increases in their 3Q capex.</li><li>The aggregate number topped US$37bn, representing the fourth highest quarterly spending in history.</li><li>These companies are committed to ramping up spending to remain competitive at the AI front line</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.

Post 3Q earnings, investors have regained confidence in AI capital spending for the next few quarters. Amazon/Microsoft/Alphabet/Meta (“CSP3 &amp; Meta”) all announced QoQ increases in their 3Q capex.The aggregate number topped US$37bn, representing the fourth highest quarterly spending in history.These companies are committed to ramping up spending to remain competitive at the AI front lineContent 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 (Hardware/Semi): CSP3 & Meta Ramp up Spending to Stay at the AI Front Line

United States

Microsoft Corporation operates as a software company. The Company offers applications, extra cloud storage, and advanced security solutions. Microsoft serves customers worldwide.

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Microsoft Corp (MSFT US)

Microsoft (MSFT US) - AI and Copilot Unlocking Growth Potential

Our DCF valuation method values Microsoft at US$473.6 per share, which translates into 39.7x/33.3x FY24/25E PE. Initiate at BUY.

CMB International

Semi - Hyperscalers’ FY23 Results Review

This capex boost further confirms our perspective on the ongoing AI momentum into 2024, driven by strong demand for building computing capacity.

CMB International

Technology (Hardware/Semi)

Microsoft unveiled two major custom-designed chips for cloud computing at its Ignite developer conference on 15 Nov 2023, Maia 100 AI accelerator...

CMB International

Technology (Hardware/Semi): CSP3 & Meta Ramp up Spending to Stay at the AI Front Line

Post 3Q earnings, investors have regained confidence in AI capital spending for the next few quarters. Amazon/Microsoft/Alphabet/Meta (“CSP3 &...

CMB International

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Microsoft (MSFT US) - AI Related Demand Remained Strong

Microsoft reported (26 Apr BJT) better-than-expected 3QFY24 (June year-end) results: revenue was US$61.9bn, up 17% YoY (2QFY24: +18% YoY; 3QFY23:...

CMB International

Microsoft (MSFT US) - AI and Copilot Unlocking Growth Potential

Our DCF valuation method values Microsoft at US$473.6 per share, which translates into 39.7x/33.3x FY24/25E PE. Initiate at BUY.

CMB International

Semi - Hyperscalers’ FY23 Results Review

This capex boost further confirms our perspective on the ongoing AI momentum into 2024, driven by strong demand for building computing capacity.

CMB International

Technology (Hardware/Semi)

Microsoft unveiled two major custom-designed chips for cloud computing at its Ignite developer conference on 15 Nov 2023, Maia 100 AI accelerator...

CMB International

Technology (Hardware/Semi): CSP3 & Meta Ramp up Spending to Stay at the AI Front Line

Post 3Q earnings, investors have regained confidence in AI capital spending for the next few quarters. Amazon/Microsoft/Alphabet/Meta (“CSP3 &...

CMB International