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)

<ul><li>In our last report dated 17 October, we highlighted a list of 21 long ideas.</li><li>The basket (equal weighted) of these 21 stocks underperformed MSCI China index by 5.4ppt, delivering 0.2% return (vs MSCI China 5.6%).</li><li>China Meidong Auto and Innovent Biologics delivered over 20% of return, and 4 of our 21 long ideas outperformed the benchmark.</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.

In our last report dated 17 October, we highlighted a list of 21 long ideas.The basket (equal weighted) of these 21 stocks underperformed MSCI China index by 5.4ppt, delivering 0.2% return (vs MSCI China 5.6%).China Meidong Auto and Innovent Biologics delivered over 20% of return, and 4 of our 21 long ideas outperformed the benchmark.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.

CMBI Research Focus List (November Edition) – Our best high conviction stock ideas

Equity Bottom-Up

<ul><li>Wingtech released its 1Q25 earnings. Revenue declined by 19.4% YoY to RMB13.1bn, while net profit surged by 82.3% YoY to RMB261mn.</li><li>GPM recovered to 14.0% (vs. 9.1%/9.2% in 4Q24/1Q24). By segment, ODM/ semi accounted for 72%/28% of 1Q sales.</li><li>The company has entered a transformation phase following the divestment of its ODM business. </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.

Wingtech released its 1Q25 earnings. Revenue declined by 19.4% YoY to RMB13.1bn, while net profit surged by 82.3% YoY to RMB261mn.GPM recovered to 14.0% (vs. 9.1%/9.2% in 4Q24/1Q24). By segment, ODM/ semi accounted for 72%/28% of 1Q sales.The company has entered a transformation phase following the divestment of its ODM business. 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.

Wingtech (600745 CH) - Resilient 1Q Semiconductor Sales

<ul><li>Wingtech announced its preliminary FY24 results. The company expects a net loss to be around RMB3.5-4.55bn (vs. RMB1.1bn NP in FY23).</li><li>Mgmt. attributed the NL primarily to 1) impairment related to the sale of ODM business announced in Dec (link), 2) a write-down on deferred tax assets, and 3) further goodwill impairments (RMB600mn/RMB500mn in 2022/23, with RMB200mn to be fully impaired in 2024).</li><li>Despite short-term financial setbacks, we believe Wingtech is better-positioned for LT value creation as it moves forward with a lighter load as it transforms itself to a predominately semiconductor-focused company. Maintain BUY with TP unchanged at RMB52.</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.

Wingtech announced its preliminary FY24 results. The company expects a net loss to be around RMB3.5-4.55bn (vs. RMB1.1bn NP in FY23).Mgmt. attributed the NL primarily to 1) impairment related to the sale of ODM business announced in Dec (link), 2) a write-down on deferred tax assets, and 3) further goodwill impairments (RMB600mn/RMB500mn in 2022/23, with RMB200mn to be fully impaired in 2024).Despite short-term financial setbacks, we believe Wingtech is better-positioned for LT value creation as it moves forward with a lighter load as it transforms itself to a predominately semiconductor-focused company. Maintain BUY with TP unchanged at RMB52.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.

Wingtech (600745 CH) - Entering 2025 with a Clean Slate, with the Worst Left Behind

<ul><li>Wingtech released 3Q24 results and we attended the mgmt. call.</li><li>Q3 revenue was RMB19.6bn (a record quarterly revenue since 2020), up 28.7% YoY/12.9% QoQ, beating Bloomberg consensus by 16%.</li><li>GPM was 11% vs. 9.2%/9.7% in 1Q/2Q24, beating consensus of 10.5%. Net profit was RMB274mn, turning positive after Q2 loss (-RMB3mn). </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.

Wingtech released 3Q24 results and we attended the mgmt. call.Q3 revenue was RMB19.6bn (a record quarterly revenue since 2020), up 28.7% YoY/12.9% QoQ, beating Bloomberg consensus by 16%.GPM was 11% vs. 9.2%/9.7% in 1Q/2Q24, beating consensus of 10.5%. Net profit was RMB274mn, turning positive after Q2 loss (-RMB3mn). 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.

Wingtech (600745 CH) - Both Semi/ODM Segments Showed Turnaround Signals with Sequential Growth

<ul><li>Wingtech 1H24 sales were up 15% YoY to RMB33.6bn, driven by strong ODM sales (up 27% YoY), partially offset by weaker semiconductor sales (down 8% YoY).</li><li>NP declined 89% YoY to RMB140mn, as GPM deteriorated to 9.5% in 1H24 (vs. 17.6%/14.7% in 1H23/2H23).</li><li>Semi. GPM showed signs of recovery (up 7.7ppt in 2Q). We expect ODM GPM to improve in 2H24 to 5.0% from 2.5% in 1H24. </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.

Wingtech 1H24 sales were up 15% YoY to RMB33.6bn, driven by strong ODM sales (up 27% YoY), partially offset by weaker semiconductor sales (down 8% YoY).NP declined 89% YoY to RMB140mn, as GPM deteriorated to 9.5% in 1H24 (vs. 17.6%/14.7% in 1H23/2H23).Semi. GPM showed signs of recovery (up 7.7ppt in 2Q). We expect ODM GPM to improve in 2H24 to 5.0% from 2.5% in 1H24. 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.

Wingtech (600745 CH) - 1H24 Results Review: Challenging 1H; Looking for Recovery in 2H

China

Wingtech Technology Co.,Ltd manufactures communications equipment. The Company produces mobile phones, tablets, smart devices, and other equipment. Wingtech Technology also operates real estate development, hotel management, financing, and other businesses.

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Wingtech Technology (600745 CH)

CMBI Research Focus List (November Edition) – Our best high conviction stock ideas

In our last report dated 17 October, we highlighted a list of 21 long ideas.The basket (equal weighted) of these 21 stocks underperformed MSCI...

CMB International

Wingtech (600745 CH) - Resilient 1Q Semiconductor Sales

Wingtech released its 1Q25 earnings. Revenue declined by 19.4% YoY to RMB13.1bn, while net profit surged by 82.3% YoY to RMB261mn. GPM recovered to...

CMB International

Wingtech (600745 CH) - Entering 2025 with a Clean Slate, with the Worst Left Behind

Wingtech announced its preliminary FY24 results. The company expects a net loss to be around RMB3.5-4.55bn (vs. RMB1.1bn NP in FY23).

CMB International

Wingtech (600745 CH) - Both Semi/ODM Segments Showed Turnaround Signals with Sequential Growth

Q3 revenue was RMB19.6bn (a record quarterly revenue since 2020), up 28.7% YoY/12.9% QoQ, beating Bloomberg consensus by 16%.

CMB International

Wingtech (600745 CH) - 1H24 Results Review: Challenging 1H; Looking for Recovery in 2H

Wingtech 1H24 sales were up 15% YoY to RMB33.6bn, driven by strong ODM sales (up 27% YoY), partially offset by weaker semiconductor sales (down 8%...

CMB International

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