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

Sunny Optical Technology Group / Equity Bottom-Up

<ul><li>We hosted a NDR for investors with Sunny Optical on 27 Mar.</li><li>Mgmt. reiterated 2023 shipment guidance with gradual recovery but ASP/GPM of handset-related products were under pressure in 1H23E given camera de-spec trend.</li><li>Looking ahead, mgmt. is positive on 1) demand recovery in 3Q23E on smartphone replacement cycle, 2) AR/VR growth of 30% YoY in FY23E and 3) rising ADAS adoption to drive ASP/GPM upside in FY24-25E. Trading at 28.1x/24.3x FY23/24E P/E, we think the stock is fairly valued. Maintain HOLD with SOTPbased TP of HK$86.75.</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.

We hosted a NDR for investors with Sunny Optical on 27 Mar.Mgmt. reiterated 2023 shipment guidance with gradual recovery but ASP/GPM of handset-related products were under pressure in 1H23E given camera de-spec trend.Looking ahead, mgmt. is positive on 1) demand recovery in 3Q23E on smartphone replacement cycle, 2) AR/VR growth of 30% YoY in FY23E and 3) rising ADAS adoption to drive ASP/GPM upside in FY24-25E. Trading at 28.1x/24.3x FY23/24E P/E, we think the stock is fairly valued. Maintain HOLD with SOTPbased TP of HK$86.75.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.

Sunny Optical (2382 HK) – NDR Takeaways: A Bumpy 1H23 Ahead

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 24th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We estimate that the total inflows were USD3.3bn last week and highlight flows for Meituan, Tencent, Bilibili.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 24th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We estimate that the total inflows were USD3.3bn last week and highlight flows for Meituan, Tencent, Bilibili.


Hong Kong Connect Flows (Mar 24th): Meituan, Tencent, Bilibili

<ul><li>We are incrementally more positive on the stock after earnings call, as we believe market is too bearish on HCM/HLS outlook and underestimate automobile/XR potential upside in FY23E.</li><li>However, we believe a bumpy 1H23 will remain the major overhang for the stock given sluggish HCM/HLS shipment/GPM, and we trimmed FY23-24E EPS by 10-14% to reflect weaker margins.</li><li>Our new EPS are 14-21% below consensus. Trading at 27.4x/23.7x FY23/24E P/E, we think the stock is fairly valued. Maintain HOLD with lowered SOTP-based TP of HK$86.75.</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.

We are incrementally more positive on the stock after earnings call, as we believe market is too bearish on HCM/HLS outlook and underestimate automobile/XR potential upside in FY23E.However, we believe a bumpy 1H23 will remain the major overhang for the stock given sluggish HCM/HLS shipment/GPM, and we trimmed FY23-24E EPS by 10-14% to reflect weaker margins.Our new EPS are 14-21% below consensus. Trading at 27.4x/23.7x FY23/24E P/E, we think the stock is fairly valued. Maintain HOLD with lowered SOTP-based TP of HK$86.75.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.

Sunny Optical (2382 HK) – Strong  auto/XR pipeline to weather smartphone headwinds

<ul><li>Sunny’s 2H22 net profit decline of 54% YoY is in-line with expectations, while revenue exceeds our/consensus estimates by 25%/9%, mainly due to better ASP and product mix.</li><li>2H22 GPM came in at 19.0%, vs 20.8% in 1H22 due to lower HCM/HLS/VLS GPM.</li><li>We expect 1H23E outlook will remain under pressure given on-going inventory correction, smartphone demand recovery uncertainty and global EV sales slowdown. </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.

Sunny’s 2H22 net profit decline of 54% YoY is in-line with expectations, while revenue exceeds our/consensus estimates by 25%/9%, mainly due to better ASP and product mix.2H22 GPM came in at 19.0%, vs 20.8% in 1H22 due to lower HCM/HLS/VLS GPM.We expect 1H23E outlook will remain under pressure given on-going inventory correction, smartphone demand recovery uncertainty and global EV sales slowdown. 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.

Sunny Optical (2382 HK) – 2H22 first take: weakness in-line; awaiting recovery

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 17th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Tencent, China Mobile, ICBC, Bilibili, Meituan, Xiaomi.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 17th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Tencent, China Mobile, ICBC, Bilibili, Meituan, Xiaomi.


Hong Kong Connect Flows (Mar 17th): Tencent, China Mobile, ICBC, Bilibili, Meituan, Xiaomi

China

Sunny Optical Technology Group Co., Limited designs and manufactures optical and optical related products. The Company's products include glass/plastic lenses, prisms, mobile phone camera modules, microscopes, surveying instruments, and other analytical instruments.

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Sunny Optical Technology Group (2382 HK)

Sunny Optical (2382 HK) – NDR Takeaways: A Bumpy 1H23 Ahead

Mgmt. reiterated 2023 shipment guidance with gradual recovery but ASP/GPM of handset-related products were under pressure in 1H23E given camera de...

CMB International

Hong Kong Connect Flows (Mar 24th): Meituan, Tencent, Bilibili

We analyzed the Hong Kong Connect Scheme for last week and highlight flows for Meituan (3690 HK), Tencent (700 HK), and Bilibili (9626 HK).

Ke Yan, CFA, FRM

Sunny Optical (2382 HK) – Strong auto/XR pipeline to weather smartphone headwinds

We are incrementally more positive on the stock after earnings call, as we believe market is too bearish on HCM/HLS outlook and underestimate...

CMB International

Sunny Optical (2382 HK) – 2H22 first take: weakness in-line; awaiting recovery

Sunny’s 2H22 net profit decline of 54% YoY is in-line with expectations, while revenue exceeds our/consensus estimates by 25%/9%, mainly due to...

CMB International

Hong Kong Connect Flows (Mar 17th): Tencent, China Mobile, ICBC, Bilibili, Meituan, Xiaomi

We analyzed the Hong Kong Connect Scheme for last week and highlight flows for Tencent, China Mobile, ICBC, Bilibili, Meituan, Xiaomi.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)