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>Tongda’s 1H25 net profit growth of 394% YoY is in-line with prior positive profit alert, mainly driven by lower finance costs and less R&amp;D/depreciation expenses following business disposal in 1H24.</li><li>We spoke to mgmt. post 1H25 results, and we expect earnings recovery will continue into 2H25E/2026, backed by 1) glass fiber casing upgrade and ASP hike, 2) Smart Tech’s strong growth with client wins and Malaysia capacity ramp-up, and 3) networking biz’s Vietnam plant expansion.</li><li>We slightly adjusted our earnings forecasts to reflect 1H25 results and better operating leverage. </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.

Tongda’s 1H25 net profit growth of 394% YoY is in-line with prior positive profit alert, mainly driven by lower finance costs and less R&amp;D/depreciation expenses following business disposal in 1H24.We spoke to mgmt. post 1H25 results, and we expect earnings recovery will continue into 2H25E/2026, backed by 1) glass fiber casing upgrade and ASP hike, 2) Smart Tech’s strong growth with client wins and Malaysia capacity ramp-up, and 3) networking biz’s Vietnam plant expansion.We slightly adjusted our earnings forecasts to reflect 1H25 results and better operating leverage. 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) - 1H25 Earnings Recovery In-Line

<ul><li>We expect Tongda to deliver earnings recovery in 1H25E with revenue/net profit of HK$2,802mn/59mn (-6%/+359% YoY), following business disposal and impairment provisions in 2024.</li><li>Excluding disposed business, we estimate Tongda revenue will grow 13% YoY in 1H25E backed by consumer electronics /household &amp; sports goods (+10%/25% YoY) and GPM will improve to 15.7% in 1H25E (vs 15% in 1H24).</li><li>We remain positive on Tongda’s turnaround efforts to focus on investments in new business opportunities with enhanced balance sheet. </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 expect Tongda to deliver earnings recovery in 1H25E with revenue/net profit of HK$2,802mn/59mn (-6%/+359% YoY), following business disposal and impairment provisions in 2024.Excluding disposed business, we estimate Tongda revenue will grow 13% YoY in 1H25E backed by consumer electronics /household &amp; sports goods (+10%/25% YoY) and GPM will improve to 15.7% in 1H25E (vs 15% in 1H24).We remain positive on Tongda’s turnaround efforts to focus on investments in new business opportunities with enhanced balance sheet. 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) - 1H25 Preview: Expect Earnings Turnaround on Track

<ul><li>We spoke to Tongda mgmt. post results, and we believe FY24 earnings were mainly dragged by disposal of Apple biz and non-cash impairment provisions.</li><li>Excluding Apple biz, FY24 revenue grew 17.8% YoY, backed by consumer electronics (+17.5%) and household &amp; sports goods (+19%).</li><li>For 2025, mgmt. believes growth drivers include Android demand recovery, high-margin smarttech business, and GPM recovery to 15-16% after 2 years of restructuring. </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 Tongda mgmt. post results, and we believe FY24 earnings were mainly dragged by disposal of Apple biz and non-cash impairment provisions.Excluding Apple biz, FY24 revenue grew 17.8% YoY, backed by consumer electronics (+17.5%) and household &amp; sports goods (+19%).For 2025, mgmt. believes growth drivers include Android demand recovery, high-margin smarttech business, and GPM recovery to 15-16% after 2 years of restructuring. 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) - Android Demand and Smart-Tech to Drive Earnings Recovery; Maintain BUY

<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>2Q25 results were largely in-line with market expectations, but 3Q25E guidance is mixed with strength in premium smartphones and sluggish mainstream demand post order pull-in and China subsidies in 1H25.</li><li>Qualcomm (QCOM US, NR) guided 15% YoY growth in non-Apple QCT revenue in FY25, while MediaTek (2454 TT, NR) expected 40% YoY growth in flagship revenue in FY25.</li><li>New form factors (XR, Trifold, AI glasses) have become emerging growth drivers. </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.

2Q25 results were largely in-line with market expectations, but 3Q25E guidance is mixed with strength in premium smartphones and sluggish mainstream demand post order pull-in and China subsidies in 1H25.Qualcomm (QCOM US, NR) guided 15% YoY growth in non-Apple QCT revenue in FY25, while MediaTek (2454 TT, NR) expected 40% YoY growth in flagship revenue in FY25.New form factors (XR, Trifold, AI glasses) have become emerging growth drivers. 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 - Smartphone: Samsung/MTK/QCOM Results Takeaways

Hong Kong

Tongda Group Holdings Limited is a supplier of high-precision components of consumer electronic products. The Company uses its in-mould lamination ("IML") technology for customers in the in the PRC.   The Group has established a solid presence in handset, electrical appliance and notebook computer casings and related products.

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Tongda Group Holdings (698 HK)

Tongda (698 HK) - 1H25 Earnings Recovery In-Line

Our new TP of HK$0.135 is based on higher 7.2x FY25E P/E (vs 6.0x prior) for earnings turnaround and better order visibility into 2026.

CMB International

Tongda (698 HK) - 1H25 Preview: Expect Earnings Turnaround on Track

We remain positive on Tongda’s turnaround efforts to focus on investments in new business opportunities with enhanced balance sheet.

CMB International

Tongda (698 HK) - Android Demand and Smart-Tech to Drive Earnings Recovery; Maintain BUY

We spoke to Tongda mgmt. post results, and we believe FY24 earnings were mainly dragged by disposal of Apple biz and non-cash impairment provisions.

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 - Smartphone: Samsung/MTK/QCOM Results Takeaways

2Q25 results were largely in-line with market expectations, but 3Q25E guidance is mixed with strength in premium smartphones and sluggish...

CMB International

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