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>We expect global smartphone market to remain sluggish into 4Q22E, given weak consumer demand, macro uncertainties and lack of major spec upgrade.</li><li>We estimate global/China smartphone market to decline 9%/15% YoY in FY22E. Recent reported data revealed that China smartphone sell-in/sell- through declined 31%/10% YoY in Jul (vs +9%/-8% in Jun), and global smartphone sell-through dropped 16.5% YoY in Jul (vs -16.1% in Jun).</li><li>For 4Q22E, we believe the only bright spot is iPhone supply chain restocking, and we prefer related names such as Luxshare for iPhone/Watch/AirPods OEM, Goertek for share gain in Watch/ AirPods, and FIT Hon Teng/Tongda for iPhone shipment upside. </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>

We expect global smartphone market to remain sluggish into 4Q22E, given weak consumer demand, macro uncertainties and lack of major spec upgrade.We estimate global/China smartphone market to decline 9%/15% YoY in FY22E. Recent reported data revealed that China smartphone sell-in/sell- through declined 31%/10% YoY in Jul (vs +9%/-8% in Jun), and global smartphone sell-through dropped 16.5% YoY in Jul (vs -16.1% in Jun).For 4Q22E, we believe the only bright spot is iPhone supply chain restocking, and we prefer related names such as Luxshare for iPhone/Watch/AirPods OEM, Goertek for share gain in Watch/ AirPods, and FIT Hon Teng/Tongda for iPhone shipment upside. 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 - China Smartphone: No Signs of Recovery in 4Q22E

Equity Bottom-Up

<ul><li>We spoke to mgmt. for business update post 1H23 results, and expect gradual recovery on track into 2H23/FY24E.</li><li>Despite 1H23 revenue miss on smartphone inventory correction, GPM improved 2.4ppts YoY due to rising Apple’s sales mix and improving operating efficiency.</li><li>Looking into 2H23E, we are positive on Android recovery, Apple’s casing material upgrade for better ASP/share gain and non-smartphone order wins. </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>

We spoke to mgmt. for business update post 1H23 results, and expect gradual recovery on track into 2H23/FY24E.Despite 1H23 revenue miss on smartphone inventory correction, GPM improved 2.4ppts YoY due to rising Apple’s sales mix and improving operating efficiency.Looking into 2H23E, we are positive on Android recovery, Apple’s casing material upgrade for better ASP/share gain and non-smartphone order wins. 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.

Tongda (698 HK) – Positive on Android Recovery, Apple Share Gain and Non-Smartphone Biz Order Wins

<ul><li>Tongda will announce its 1H23 results in late Aug. We expect 1H23 revenue decline of 26.4% YoY and flattish net profit due to smartphone weakness and inventory correction, but GPM will improve 3.5ppts QoQ on share gain of highermargin Apple business.</li><li>Looking into 2H23E, we are positive on smartphone recovery and Apple share gain to drive revenue growth and GPM improvement.</li><li>We revised down our FY23-24E EPS to reflect 1H23 weakness and higher opex, partly offset by improved GPM on better product mix. </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>

Tongda will announce its 1H23 results in late Aug. We expect 1H23 revenue decline of 26.4% YoY and flattish net profit due to smartphone weakness and inventory correction, but GPM will improve 3.5ppts QoQ on share gain of highermargin Apple business.Looking into 2H23E, we are positive on smartphone recovery and Apple share gain to drive revenue growth and GPM improvement.We revised down our FY23-24E EPS to reflect 1H23 weakness and higher opex, partly offset by improved GPM on better product mix. 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.

Tongda (698 HK) – 1H23 Preview: Weak Revenue Amid Industry Headwinds

<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>
<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>


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”

<ul><li>Tongda’s FY22 revenue/net profit declined 20%/40% YoY, below our/market expectations due to weak Android demand and macro headwinds, but GPM improved 2.5ppts YoY to 18.4% on better product mix.</li><li>Looking ahead, while Android market remains challenging in 1H23E, mgmt. is positive on Apple products to drive ASP &amp; GPM upside in 2H23E, and non-handset business will become major growth drivers in FY23-24E.</li><li>We revised down our FY23-24E EPS by 19-23% to reflect lower sales, better margins and dilution impact of award shares in FY22.</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>

Tongda’s FY22 revenue/net profit declined 20%/40% YoY, below our/market expectations due to weak Android demand and macro headwinds, but GPM improved 2.5ppts YoY to 18.4% on better product mix.Looking ahead, while Android market remains challenging in 1H23E, mgmt. is positive on Apple products to drive ASP &amp; GPM upside in 2H23E, and non-handset business will become major growth drivers in FY23-24E.We revised down our FY23-24E EPS by 19-23% to reflect lower sales, better margins and dilution impact of award shares in FY22.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.

Tongda (698 HK) – FY22 results below; GPM recovery on better product mix

Hong Kong

Tongda Group provides high-precision structural components for smart mobile communications and consumer electronic products. The company manufactures components for handset casings, panels for smart electrical appliances, network communications facilities, and household and sports goods. It was founded in 1978 and is headquartered in Wan Chai, Hong Kong.

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Tongda Group (698 HK)

China Technology - China Smartphone: No Signs of Recovery in 4Q22E

We expect global smartphone market to remain sluggish into 4Q22E, given weak consumer demand, macro uncertainties and lack of major spec upgrade.

CMB International

Tongda (698 HK) – 1H23 Preview: Weak Revenue Amid Industry Headwinds

Tongda will announce its 1H23 results in late Aug. We expect 1H23 revenue decline of 26.4% YoY and flattish net profit due to smartphone weakness...

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

Tongda (698 HK) – FY22 results below; GPM recovery on better product mix

Tongda’s FY22 revenue/net profit declined 20%/40% YoY, below our/market expectations due to weak Android demand and macro headwinds

CMB International

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China Technology - China Smartphone: No Signs of Recovery in 4Q22E

We expect global smartphone market to remain sluggish into 4Q22E, given weak consumer demand, macro uncertainties and lack of major spec upgrade.

CMB International

Tongda (698 HK) – Positive on Android Recovery, Apple Share Gain and Non-Smartphone Biz Order Wins

Despite 1H23 revenue miss on smartphone inventory correction, GPM improved 2.4ppts YoY due to rising Apple’s sales mix and improving operating...

CMB International

Tongda (698 HK) – 1H23 Preview: Weak Revenue Amid Industry Headwinds

Tongda will announce its 1H23 results in late Aug. We expect 1H23 revenue decline of 26.4% YoY and flattish net profit due to smartphone weakness...

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

Tongda (698 HK) – FY22 results below; GPM recovery on better product mix

Tongda’s FY22 revenue/net profit declined 20%/40% YoY, below our/market expectations due to weak Android demand and macro headwinds

CMB International