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

Will Semiconductor   Shan / Equity Bottom-Up

<ul><li>Will Semi announced better-than-expected 3Q results. Revenue came in at RMB6.2bn, representing 44.4% YoY growth and 37.6% QoQ growth, respectively.</li><li>3Q revenue marked the second-highest quarterly revenue in the company’s history. Net profit was RMB215mn, turning positive from 2Q.</li><li>We think the sound results were driven by: 1) better-than-expected recovery in consumer electronics, noticeably in domestic Android phone markets; and 2) strong growth in auto CIS as the company booked more orders across both existing and new manufacturers. </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.

Will Semi announced better-than-expected 3Q results. Revenue came in at RMB6.2bn, representing 44.4% YoY growth and 37.6% QoQ growth, respectively.3Q revenue marked the second-highest quarterly revenue in the company’s history. Net profit was RMB215mn, turning positive from 2Q.We think the sound results were driven by: 1) better-than-expected recovery in consumer electronics, noticeably in domestic Android phone markets; and 2) strong growth in auto CIS as the company booked more orders across both existing and new manufacturers. 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.

Willsemi (603501 CH) – Expect Strong 3Q Momentum to Continue; Upgrade to BUY

<ul><li>Willsemi’s 1H23 revenue and net profit were RMB8.9bn and RMB153mn, down 20% and 93% YoY, respectively.</li><li>Margin continued to contract in 2Q23, suggesting the Company is marking efforts to digest inventory.</li><li>2Q NP was negative again, failing to continue its profitability from 1Q. </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.

Willsemi’s 1H23 revenue and net profit were RMB8.9bn and RMB153mn, down 20% and 93% YoY, respectively.Margin continued to contract in 2Q23, suggesting the Company is marking efforts to digest inventory.2Q NP was negative again, failing to continue its profitability from 1Q. 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.

<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>On 10 Nov, AI Start up Humane, founded by ex-Apple engineers, has officially launched the AI Pin, an OpenAI-powered wearable.</li><li>We believe this is a promising catalyst for the imminent surge in AI-driven consumer products.</li><li>Tech giants are increasingly positioned to discover new revenue streams through integrating AI tech into consumer products, services, or in any financially sustainable manner. </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 10 Nov, AI Start up Humane, founded by ex-Apple engineers, has officially launched the AI Pin, an OpenAI-powered wearable.We believe this is a promising catalyst for the imminent surge in AI-driven consumer products.Tech giants are increasingly positioned to discover new revenue streams through integrating AI tech into consumer products, services, or in any financially sustainable manner. 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.

Will Humane’s AI-Powered Screenless Device Become the Successor to Smartphones?

<ul><li>CIS market revenue was US$21.3bn in 2022, stagnated with 0.2% YoY decline, according to Yole.</li><li>The sales from mobile segment (US$13.5bn) remained flat. Auto CIS sales grew 13.7% YoY to US$2.2bn, surpassing Security CIS, which experienced significant decline (42.8% YoY) in the past year.</li><li>Domestic CIS players took a strong hit by 1) the weak mobile/security demand, 2) slower-thanexpected inventory digestion and 3) intensified competition among overseas and domestic peers. </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.

CIS market revenue was US$21.3bn in 2022, stagnated with 0.2% YoY decline, according to Yole.The sales from mobile segment (US$13.5bn) remained flat. Auto CIS sales grew 13.7% YoY to US$2.2bn, surpassing Security CIS, which experienced significant decline (42.8% YoY) in the past year.Domestic CIS players took a strong hit by 1) the weak mobile/security demand, 2) slower-thanexpected inventory digestion and 3) intensified competition among overseas and domestic peers. 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.

Semi – China CIS sector – Solid auto CIS growth offset by weak mobile CIS demand

China

Will Semiconductor Co.,Ltd. Shanghai manufactures image sensor products and semiconductor products. The Company produces and sells complementary metal oxide semiconductors, protecting devices, power devices, power management integrated circuits, radio frequency devices, microphone sensors, and more. Will Semiconductor Shanghai markets its products worldwide.

Will Semiconductor Shan (603501 CH)

Willsemi (603501 CH) – Expect Strong 3Q Momentum to Continue; Upgrade to BUY

Will Semi announced better-than-expected 3Q results. Revenue came in at RMB6.2bn, representing 44.4% YoY growth and 37.6% QoQ growth, respectively.

CMB International

Willsemi (603501 CH)

Margin continued to contract in 2Q23, suggesting the Company is marking efforts to digest inventory. 2Q NP was negative again, failing to continue...

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

Will Humane’s AI-Powered Screenless Device Become the Successor to Smartphones?

On 10 Nov, AI Start up Humane, founded by ex-Apple engineers, has officially launched the AI Pin, an OpenAI-powered wearable.

CMB International

Semi – China CIS sector – Solid auto CIS growth offset by weak mobile CIS demand

The sales from mobile segment (US$13.5bn) remained flat. Auto CIS sales grew 13.7% YoY to US$2.2bn, surpassing Security CIS, which experienced...

CMB International