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>1H23 result was far more than good, with industry leading sales and net profit growth, plus a declining inventory.</li><li>And we do think the turnaround is not just here but solid.</li><li>With such an undemanding valuation of 7x FY23E P/E, backed by a 20% sales CAGR during FY22-25E, we maintain BUY.</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.

1H23 result was far more than good, with industry leading sales and net profit growth, plus a declining inventory.And we do think the turnaround is not just here but solid.With such an undemanding valuation of 7x FY23E P/E, backed by a 20% sales CAGR during FY22-25E, we maintain BUY.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.

Vesync (2148 HK) – An All-Rounded Beat and a Bullish Outlook

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>The weak share price performance of <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home Co Ltd (6690 HK)</a> is unwarranted given the healthy earnings trend, solid net cash position and undemanding valuations.</li>
<li>The 15.9% 1Q23 recurring earnings growth showed its low correlation with the property market while demonstrated the achievement in cost control and rising premium product contribution.</li>
<li>It is set to benefit from government's push for higher penetration of household appliances in rural areas. Meanwhile, recent Rmb depreciation may bring exchange gain for 1H23.</li>
</ul>


The weak share price performance of Haier Smart Home Co Ltd (6690 HK) is unwarranted given the healthy earnings trend, solid net cash position and undemanding valuations.
The 15.9% 1Q23 recurring earnings growth showed its low correlation with the property market while demonstrated the achievement in cost control and rising premium product contribution.
It is set to benefit from government's push for higher penetration of household appliances in rural areas. Meanwhile, recent Rmb depreciation may bring exchange gain for 1H23.


Haier Smart Home (6690 HK): Value Emerging

<ul><li>After a fairly disappointing FY22 (sales dragged by Amazon’s de-stocking and net profit hurt by products recall and shipping costs etc.), there are signs of turnaround (sell-in growth had finally picked up and GP margin expansion begins) in 1Q23 for Vesync.</li><li>With undemanding valuation, we maintain BUY.</li><li>1Q23 gross sales growth was at 24%, inline with guidance but way faster than the industry.</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.

After a fairly disappointing FY22 (sales dragged by Amazon’s de-stocking and net profit hurt by products recall and shipping costs etc.), there are signs of turnaround (sell-in growth had finally picked up and GP margin expansion begins) in 1Q23 for Vesync.With undemanding valuation, we maintain BUY.1Q23 gross sales growth was at 24%, inline with guidance but way faster than the industry.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.

Vesync (2148 HK) – Signs of turnaround are forming in 1Q23

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>There are 35 adds and 28 deletes for the Hang Seng Composite Index (HSCI) at the March rebalance to take the number of index constituents up to 527.</li>
<li>We expect 29 of the 35 inclusions to the HSCI will be added to Stock Connect, while 20 of the 28 HSCI deletions will be removed from Southbound Stock Connect.</li>
<li>19 stocks could be deleted from Stock Connect only since their average market cap has dropped below HK$5bn- unless the new threshold of HK$4bn is approved in the next week.</li>
</ul>


There are 35 adds and 28 deletes for the Hang Seng Composite Index (HSCI) at the March rebalance to take the number of index constituents up to 527.
We expect 29 of the 35 inclusions to the HSCI will be added to Stock Connect, while 20 of the 28 HSCI deletions will be removed from Southbound Stock Connect.
19 stocks could be deleted from Stock Connect only since their average market cap has dropped below HK$5bn- unless the new threshold of HK$4bn is approved in the next week.


HSCI Index Rebalance: 35 Adds, 28 Deletes & Changes to Southbound Stock Connect

<ul><li>Some peers like Helen of Troy raised its guidance for the first time since Jan 2022.</li><li>We believe cycle bottom for the industry is likely to be in 2023 and some brands could recover faster.</li><li>Therefore, we upgrade Vesync to BUY and raise TP to HK$6.23, based on 16x FY23E P/E (up from 13x), similar to industry’s average of 17x.</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.

Some peers like Helen of Troy raised its guidance for the first time since Jan 2022.We believe cycle bottom for the industry is likely to be in 2023 and some brands could recover faster.Therefore, we upgrade Vesync to BUY and raise TP to HK$6.23, based on 16x FY23E P/E (up from 13x), similar to industry’s average of 17x.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.

Vesync (2148 HK) – Some brands may turn around faster than the industry

China

Vesync Co Ltd develops smart home platform that connect air quality, health monitoring, kitchen, lighting, and outlet systems.The Company helps users to manage home, save energy, and bring remote items within handheld reach.

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Vesync (2148 HK)

Vesync (2148 HK) – An All-Rounded Beat and a Bullish Outlook

1H23 result was far more than good, with industry leading sales and net profit growth, plus a declining inventory. And we do think the turnaround...

CMB International

Haier Smart Home (6690 HK): Value Emerging

Weak share price is unjustified given healthy earnings, net cash position and undemanding valuations. It will benefit from government's push to...

Osbert Tang, CFA

Vesync (2148 HK) – Signs of turnaround are forming in 1Q23

With undemanding valuation, we maintain BUY.1Q23 gross sales growth was at 24%, inline with guidance but way faster than the industry.

CMB International

HSCI Index Rebalance: 35 Adds, 28 Deletes & Changes to Southbound Stock Connect

There are 35 adds & 28 deletes for the HSCI in March leading to 29 adds & 20 deletes for Stock Connect. 19 index constituents could be dropped from...

Brian Freitas

Vesync (2148 HK) – Some brands may turn around faster than the industry

Some peers like Helen of Troy raised its guidance for the first time since Jan 2022. We believe cycle bottom for the industry is likely to be in...

CMB International

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