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>We spoke to TK Group’s mgmt. post 1H25 results, and we reiterate our positive view on TK’s client wins (Meta, Insta360, Xiaomi), product pipeline (AI glasses, 360-cam, auto) and recent technology partnership (TactoTek).</li><li>1H25 revenue/net profit growth of 4.3%/8.8% YoY is largely in-line with our/Bloomberg consensus estimates, mainly driven by strong higher-margin mold fabrication business (+30% YoY), better GPM and improved operating efficiency.</li><li>For 2025, mgmt. remained positive on stable sales growth with improving GPM thanks to solid order backlog, new project rampup and Vietnam capacity expansion. </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 spoke to TK Group’s mgmt. post 1H25 results, and we reiterate our positive view on TK’s client wins (Meta, Insta360, Xiaomi), product pipeline (AI glasses, 360-cam, auto) and recent technology partnership (TactoTek).1H25 revenue/net profit growth of 4.3%/8.8% YoY is largely in-line with our/Bloomberg consensus estimates, mainly driven by strong higher-margin mold fabrication business (+30% YoY), better GPM and improved operating efficiency.For 2025, mgmt. remained positive on stable sales growth with improving GPM thanks to solid order backlog, new project rampup and Vietnam capacity expansion. 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.

TK Group (2283 HK) - 1H25 In-Line; Positive on Client Wins and Product Pipeline in AI Glasses...

<ul><li>TK Group’s FY24 revenue/net profit growth of 21%/28% YoY is largely in-line with our/consensus estimates, mainly driven by CE demand recovery, brand customers’ product launches, communications recovery, rising utilization and operating efficiency.</li><li>Mgmt. reiterated its positive view on 2025 outlook and strong order backlogs focusing on smart wearable/AI glasses, AR/VR and highend earphones.</li><li>In addition, TK announced special dividend of HK$0.1 per share, and 2024 payout ratio reached 73%. </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.

TK Group’s FY24 revenue/net profit growth of 21%/28% YoY is largely in-line with our/consensus estimates, mainly driven by CE demand recovery, brand customers’ product launches, communications recovery, rising utilization and operating efficiency.Mgmt. reiterated its positive view on 2025 outlook and strong order backlogs focusing on smart wearable/AI glasses, AR/VR and highend earphones.In addition, TK announced special dividend of HK$0.1 per share, and 2024 payout ratio reached 73%. 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.

TK Group (2283 HK) - Solid FY24 with Special Dividend

<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>We reiterate our positive view on the booming AI glasses cycle, and we believe ongoing strength of Ray-Ban Meta glasses (+200% in 1H25), Xiaomi AI glasses’ bullish shipment target of 500k, strong product pipeline (Meta/Xiaomi/Rokid/ RayNeo/Quark) and improving ecosystem with more AI features/use cases will continue to pave wave for the AI glasses supply chain into 2H25E.</li><li>Looking ahead, global/China smart glasses market is set to continue robust growth of 43%/121% YoY in 2025, based on IDC.</li><li>As more tech players are entering the AI smart glass market, we expect cost optimization and more gen-AI use cases will continue to drive demand in the next few years. </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 reiterate our positive view on the booming AI glasses cycle, and we believe ongoing strength of Ray-Ban Meta glasses (+200% in 1H25), Xiaomi AI glasses’ bullish shipment target of 500k, strong product pipeline (Meta/Xiaomi/Rokid/ RayNeo/Quark) and improving ecosystem with more AI features/use cases will continue to pave wave for the AI glasses supply chain into 2H25E.Looking ahead, global/China smart glasses market is set to continue robust growth of 43%/121% YoY in 2025, based on IDC.As more tech players are entering the AI smart glass market, we expect cost optimization and more gen-AI use cases will continue to drive demand in the next few years. 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 -  Ray-Ban Meta Upbeat in 1H25, Xiaomi 500k Target and Quark Glasses Launch

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lens-technology" target="_blank" data-smartkarma-citation="entities:45390:1" rel="noopener">Lens Technology (6613 HK)</a>, an industry-leading integrated one-stop precision manufacturing solution provider, has launched an H Share listing to raise US$600 million.     </li>
<li>In terms of revenue in 2024, Lens is a global leader in precision structural parts and modules integrated solutions for both consumer electronics and smart vehicle interaction systems.</li>
<li>The investment case is based on a well-performing core business, limited tariff impact, reduced reliance on Apple, strong margins, and robust cash generation. </li>
</ul>



Lens Technology (6613 HK), an industry-leading integrated one-stop precision manufacturing solution provider, has launched an H Share listing to raise US$600 million.     
In terms of revenue in 2024, Lens is a global leader in precision structural parts and modules integrated solutions for both consumer electronics and smart vehicle interaction systems.
The investment case is based on a well-performing core business, limited tariff impact, reduced reliance on Apple, strong margins, and robust cash generation. 


Lens Technology H Share Listing (6613 HK): The Investment Case

Hong Kong

TK Group (Holdings) Limited manufactures plastic products and components. The Company engages in the design and fabrication of plastic injection molds and the mechanical design and manufacturing of plastic components.

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TK Group (Holdings) (2283 HK)

TK Group (2283 HK) - 1H25 In-Line; Positive on Client Wins and Product Pipeline in AI Glasses...

Trading at 7.1x/5.5x FY25/26E P/E with 6.4% yield and net cash of HK$1,067mn, we think the stock is attractive. Reiterate BUY.

CMB International

TK Group (2283 HK) - Solid FY24 with Special Dividend

Mgmt. reiterated its positive view on 2025 outlook and strong order backlogs focusing on smart wearable/AI glasses, AR/VR and highend earphones.

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 - Ray-Ban Meta Upbeat in 1H25, Xiaomi 500k Target and Quark Glasses Launch

We reiterate our positive view on the booming AI glasses cycle, and we believe ongoing strength of Ray-Ban Meta glasses (+200% in 1H25), Xiaomi AI...

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

TK Group (2283 HK) - 1H25 In-Line; Positive on Client Wins and Product Pipeline in AI Glasses...

Trading at 7.1x/5.5x FY25/26E P/E with 6.4% yield and net cash of HK$1,067mn, we think the stock is attractive. Reiterate BUY.

CMB International

TK Group (2283 HK) - Solid FY24 with Special Dividend

Mgmt. reiterated its positive view on 2025 outlook and strong order backlogs focusing on smart wearable/AI glasses, AR/VR and highend earphones.

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 - Ray-Ban Meta Upbeat in 1H25, Xiaomi 500k Target and Quark Glasses Launch

We reiterate our positive view on the booming AI glasses cycle, and we believe ongoing strength of Ray-Ban Meta glasses (+200% in 1H25), Xiaomi AI...

CMB International

Lens Technology H Share Listing (6613 HK): The Investment Case

Lens Technology has launched an H Share listing to raise US$600 million. The H Shares will be listed on 9 July. In this note, I discuss the...

Arun George