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)

<div><div><div><div><ul><li>A non-eventful 3Q. While earnings cuts and de-ratings have taken place and reset market expectation across 1H results, in our view, earnings volatility for 3Q is unlikely to be drastic.</li><li>For items that we monitored, our channel checks suggested that sales momentum was largely on track to us - low-teen growth for CRB, double-digit growth for Nongfu, and particularly sequential double- digit recovery for Mengniu and Feihe.</li><li>Separately, the lockdown of Hainan since August could mean downside revision potential for CTGDF despite a well-maintained GPM.</li></ul></div></div></div></div><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>

A non-eventful 3Q. While earnings cuts and de-ratings have taken place and reset market expectation across 1H results, in our view, earnings volatility for 3Q is unlikely to be drastic.For items that we monitored, our channel checks suggested that sales momentum was largely on track to us - low-teen growth for CRB, double-digit growth for Nongfu, and particularly sequential double- digit recovery for Mengniu and Feihe.Separately, the lockdown of Hainan since August could mean downside revision potential for CTGDF despite a well-maintained GPM.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.

China Consumer – Addressing Recent Investors’ Concerns

<ul><li>1H ended with 3 beats, 3 misses and 5 in-lines. The wrap-up of 1H/ 2Q earnings season has largely reset market expectation with latest earnings forecasts, management guidance and hence a refreshed 2H outlook.</li><li>In the near term, in our view, when the PPI-CPI scissor gap continues to narrow, market likely refocuses on the legitimation of any GPM expansion for staple players.</li><li>Meanwhile, lockdown risks prompt us to reside with plays that enjoy high online sales mix, and more importantly, relevant to the upcoming Double 11 campaign.</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>

1H ended with 3 beats, 3 misses and 5 in-lines. The wrap-up of 1H/ 2Q earnings season has largely reset market expectation with latest earnings forecasts, management guidance and hence a refreshed 2H outlook.In the near term, in our view, when the PPI-CPI scissor gap continues to narrow, market likely refocuses on the legitimation of any GPM expansion for staple players.Meanwhile, lockdown risks prompt us to reside with plays that enjoy high online sales mix, and more importantly, relevant to the upcoming Double 11 campaign.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.

China Consumer Staples – A diverging 1H; mix upgrade and cost savings were keys to stay relevant

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

<ul><li>We recommend selling MSFT80, NONGFU80, and BKNG80 with returns of 4.6%, -0.3%, and -3.0%, respectively.</li><li>At the same time, we recommend initiating investment positions in MITSU19 and SONY80, which are DRs referencing leading companies in Japan.</li><li>The average price of the underlying securities in the portfolio rose 0.60%, supported by gains in AVG080, LOREAL80, and NONGFU80, amid mixed movements in global equity markets.</li></ul>

We recommend selling MSFT80, NONGFU80, and BKNG80 with returns of 4.6%, -0.3%, and -3.0%, respectively.At the same time, we recommend initiating investment positions in MITSU19 and SONY80, which are DRs referencing leading companies in Japan.The average price of the underlying securities in the portfolio rose 0.60%, supported by gains in AVG080, LOREAL80, and NONGFU80, amid mixed movements in global equity markets.

KTX Tactical DR Picks - August 8, 2025 (Eng.)

<ul><li>The company’s FY24 revenue/net profit stood flat YoY at RMB 42.9bn/RMB 16bn, 10%/3% below CMBI estimates, mainly due to public-opinion-related headwinds, fiercer competition, and weak consumer sentiment hitting its packaged water market share.</li><li>Growth in tea and juice segments partially offset the impact. The company projects a recovery for packaged water in FY25E, with tea biz set to keep &gt;20% growth, driving double-digit overall revenue growth.</li><li>Juice may emerge as the third growth driver in recent years. Overseas expansion began in Hong Kong and will continue. </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>

The company’s FY24 revenue/net profit stood flat YoY at RMB 42.9bn/RMB 16bn, 10%/3% below CMBI estimates, mainly due to public-opinion-related headwinds, fiercer competition, and weak consumer sentiment hitting its packaged water market share.Growth in tea and juice segments partially offset the impact. The company projects a recovery for packaged water in FY25E, with tea biz set to keep &gt;20% growth, driving double-digit overall revenue growth.Juice may emerge as the third growth driver in recent years. Overseas expansion began in Hong Kong and will continue. 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.

Nongfu Spring (9633 HK) - Flat FY24 Earnings, with FY25 Set for Double-Digit Growth

<ul><li>Nongfu’s 1H24 revenue missed company’s guidance given its market share loss in the packaged water segment.</li><li>We expect low single digit revenue growth for the segment since market share recovery takes time.</li><li>Tea beverage revenue grew 59% YoY and delivered revenue share close to water of 38%, with a 10ppt higher in OPM than water segment. </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>

Nongfu’s 1H24 revenue missed company’s guidance given its market share loss in the packaged water segment.We expect low single digit revenue growth for the segment since market share recovery takes time.Tea beverage revenue grew 59% YoY and delivered revenue share close to water of 38%, with a 10ppt higher in OPM than water segment. 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.

Nongfu Spring (9633 HK) - 1H24 Missed, Tea Became Top Profit Contributor

China

Nongfu Spring is a leading Chinese company primarily engaged in the production and sale of packaged drinking water and a diverse range of beverages. Its product portfolio includes natural packaged drinking water, ready-to-drink teas, functional beverages, and fruit juices. The company was founded in 1996 and is headquartered in Hangzhou, China.

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Nongfu Spring (9633 HK)

China Consumer – Addressing Recent Investors’ Concerns

A non-eventful 3Q. While earnings cuts and de-ratings have taken place and reset market expectation across 1H results, in our view, earnings...

CMB International

China Consumer Staples – A diverging 1H; mix upgrade and cost savings were keys to stay relevant

In the near term, in our view, when the PPI-CPI scissor gap continues to narrow, market likely refocuses on the legitimation of any GPM expansion...

CMB International

KTX Tactical DR Picks - August 8, 2025 (Eng.)

We recommend selling MSFT80, NONGFU80, and BKNG80 with returns of 4.6%, -0.3%, and -3.0%, respectively. At the same time, we recommend initiating...

Krungthai XSpring