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>Sunny’s FY24 revenue/NP growth of 21%/146% YoY was largely in-line with its prior profit alert, driven by solid growth across all segments and improving GPM on a better product mix.</li><li>Although the stock corrected by 10% yesterday due to softerthan-expected HCM/HLS/VLS shipment guidance (+5-10%/+5%/+15-20% YoY) in our view, we believe Sunny’s strategic focus on HCM/HLS profitability over market share and accelerated expansion into automotive/XR/robotics segments will continue to drive earnings growth into 2025/26.</li><li>In the longer term, we believe Sunny is well-positioned to capture multiple growth opportunities in AI phone upgrade, ADAS penetration, AI glass product cycle and embodied intelligent robotics. </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 FY24 revenue/NP growth of 21%/146% YoY was largely in-line with its prior profit alert, driven by solid growth across all segments and improving GPM on a better product mix.Although the stock corrected by 10% yesterday due to softerthan-expected HCM/HLS/VLS shipment guidance (+5-10%/+5%/+15-20% YoY) in our view, we believe Sunny’s strategic focus on HCM/HLS profitability over market share and accelerated expansion into automotive/XR/robotics segments will continue to drive earnings growth into 2025/26.In the longer term, we believe Sunny is well-positioned to capture multiple growth opportunities in AI phone upgrade, ADAS penetration, AI glass product cycle and embodied intelligent robotics. 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) - 2H24 Earnings Recovery on Track

<ul><li>Sunny pre-announced net profit of RMB 2.64bn-2.75bn for 2024, up 140-150% YoY, with mid-point beating our/Bloomberg consensus estimates by 10%/10%, mainly due to smartphone market recovery, high-end/AI smartphone demand, strong NEV demand and rising adoption of intelligence driving.</li><li>For 2025, we believe Sunny will continue to benefit from China subsidies and AI spec upgrade, acceleration of intelligence driving, and booming edge AI devices (e.g. AI smart glasses).</li><li>We expect earnings upgrade cycle to continue into 1H25E, and we raise FY25/26E earnings by 17%/14% to reflect the AI smartphone upgrade, intelligence driving trend and proliferation of edge 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.

Sunny pre-announced net profit of RMB 2.64bn-2.75bn for 2024, up 140-150% YoY, with mid-point beating our/Bloomberg consensus estimates by 10%/10%, mainly due to smartphone market recovery, high-end/AI smartphone demand, strong NEV demand and rising adoption of intelligence driving.For 2025, we believe Sunny will continue to benefit from China subsidies and AI spec upgrade, acceleration of intelligence driving, and booming edge AI devices (e.g. AI smart glasses).We expect earnings upgrade cycle to continue into 1H25E, and we raise FY25/26E earnings by 17%/14% to reflect the AI smartphone upgrade, intelligence driving trend and proliferation of edge 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.

Sunny Optical (2382 HK) - Earnings Upgrade Cycle Has Just Begun; Raise TP to HK$102.89

<ul>
<li>Apple is widely expected to launch its long-awaited MR headset in WWDC 2023 this week.</li>
<li>We believe 2023 is set to be one of the best years in VR/AR ecosystem development as Apple’s first MR headset will set new standard for innovation.</li>
<li>We expect technology upgrade to accelerate in displays, optics/sensors and tracking/interaction for enhancing user experience. </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.


Apple is widely expected to launch its long-awaited MR headset in WWDC 2023 this week.
We believe 2023 is set to be one of the best years in VR/AR ecosystem development as Apple’s first MR headset will set new standard for innovation.
We expect technology upgrade to accelerate in displays, optics/sensors and tracking/interaction for enhancing user experience. 

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 Technology – Apple MR: Long-awaited next “iPhone moment”

Thematic (Sector/Industry)

<ul><li>Following our note last week, we received investor questions focused on 1) “20% US content rule” exemptions, 2) impact of China 34% tariff' on the US, 3) Vietnam proposed 0% tariff, 4) de-minimis rule removal, 5) bottom-fishing opportunities, and 6) company feedback/response on the new tariff. Below we offer perspectives on investor FAQs regarding the implications.</li><li>Despite sector valuation still being 15-20% away from the historical trough now, we would start to look for some quality names to accumulate on further weakness, including Xiaomi, AAC, Sunny Optical, BYDE and Q-tech.</li><li>“20% US content rule” exemptions in “Annex III” sub-document? The US White House published a sub-document, Annex II, for the US 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.

Following our note last week, we received investor questions focused on 1) “20% US content rule” exemptions, 2) impact of China 34% tariff' on the US, 3) Vietnam proposed 0% tariff, 4) de-minimis rule removal, 5) bottom-fishing opportunities, and 6) company feedback/response on the new tariff. Below we offer perspectives on investor FAQs regarding the implications.Despite sector valuation still being 15-20% away from the historical trough now, we would start to look for some quality names to accumulate on further weakness, including Xiaomi, AAC, Sunny Optical, BYDE and Q-tech.“20% US content rule” exemptions in “Annex III” sub-document? The US White House published a sub-document, Annex II, for the US 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: Addressing FAQs After a Volatile Day

<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

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) - 2H24 Earnings Recovery on Track

Sunny’s FY24 revenue/NP growth of 21%/146% YoY was largely in-line with its prior profit alert, driven by solid growth across all segments and...

CMB International

Sunny Optical (2382 HK) - Earnings Upgrade Cycle Has Just Begun; Raise TP to HK$102.89

Sunny pre-announced net profit of RMB 2.64bn-2.75bn for 2024, up 140-150% YoY, with mid-point beating our/Bloomberg consensus estimates by 10%/10%

CMB International

China Technology – Apple MR: Long-awaited next “iPhone moment”

We believe 2023 is set to be one of the best years in VR/AR ecosystem development as Apple’s first MR headset will set new standard for innovation.

CMB International

Technology - US Tariff Updates: Addressing FAQs After a Volatile Day

Following our note last week, we received investor questions focused on 1) “20% US content rule” exemptions, 2) impact of China 34% tariff' on the...

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

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