Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Equity Bottom-Up

Luxshare Precision Industry / Equity Bottom-Up

<ul><li>Potential Huawei sanctions under a reelected Trump administration could spell trouble for Chinese tech companies.</li><li>Luxshare's acquisition of nine Wingtech ODM subsidiaries indicates a consolidation trend in the tech manufacturing industry.</li><li>The 2025 semiconductor boom is expected to be fueled by AI technology, but could face volatility due to Trump-era policies.</li></ul>

Potential Huawei sanctions under a reelected Trump administration could spell trouble for Chinese tech companies.Luxshare's acquisition of nine Wingtech ODM subsidiaries indicates a consolidation trend in the tech manufacturing industry.The 2025 semiconductor boom is expected to be fueled by AI technology, but could face volatility due to Trump-era policies.

Tech Supply Chain Tracker (01-Jan-2025): Trump could bring back Huawei sanctions 2.0

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Thematic (Sector/Industry)

<ul><li>Several companies in China’s semiconductor supply chain said new U.S. export restrictions aimed at crippling the country’s ability to produce advanced chips would have limited impact on their operations.</li><li>The U.S. Department of Commerce on Monday added 140 companies, including 136 Chinese firms, to its Entity List, effectively banning them from accessing U.S. advanced chip and AI-related technology.</li><li>The<a href="https://www.caixinglobal.com/2024-12-04/backlash-from-key-chinese-industries-as-us-expands-chip-export-restrictions-102264222.html" target="_blank" rel="noopener"> new rules</a> also restrict exports of high-bandwidth memory, a core component for AI development.</li></ul>

Several companies in China’s semiconductor supply chain said new U.S. export restrictions aimed at crippling the country’s ability to produce advanced chips would have limited impact on their operations.The U.S. Department of Commerce on Monday added 140 companies, including 136 Chinese firms, to its Entity List, effectively banning them from accessing U.S. advanced chip and AI-related technology.The new rules also restrict exports of high-bandwidth memory, a core component for AI development.

Chinese Chip Firms Play Down Impact of New U.S. Export Curbs   

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.

<ul><li>Wingtech released its 3Q23 results with revenue/NP growth of 11.9%/11.4% YoY and 2.9%/5.5% QoQ, respectively.</li><li>The Company’s gross margin remained consistent while improving slightly from 17.3% in 2Q23 to 17.4% in 3Q23.</li><li>We continue to see strength in Company’s legacy business, which alleviated market concerns on its legacy business’ competitiveness and new business’ integration and growth as we previously expected.</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 3Q23 results with revenue/NP growth of 11.9%/11.4% YoY and 2.9%/5.5% QoQ, respectively.The Company’s gross margin remained consistent while improving slightly from 17.3% in 2Q23 to 17.4% in 3Q23.We continue to see strength in Company’s legacy business, which alleviated market concerns on its legacy business’ competitiveness and new business’ integration and growth as we previously expected.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) – 3Q Results Confirmed ODM Back on Track

<ul><li>Wingtech released its 1H23 results, posting revenue and NP growth of 2.5% and 7.2% YoY.</li><li>By segment, ODM/semi sales (accounted for 71%/26% of the total business) grew 6.2%/-0.3% YoY.</li><li>Overall GPM was 17% amid soft consumer electronic consumption. </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 1H23 results, posting revenue and NP growth of 2.5% and 7.2% YoY.By segment, ODM/semi sales (accounted for 71%/26% of the total business) grew 6.2%/-0.3% YoY.Overall GPM was 17% amid soft consumer electronic consumption. 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) – Strong 2Q23 Results on ODM Business Turning Profitable

<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

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)

Tech Supply Chain Tracker (01-Jan-2025): Trump could bring back Huawei sanctions 2.0

Potential Huawei sanctions if Trump remains in office, Luxshare acquisition of Wingtech ODM subsidiaries, 2025 semiconductor growth driven by AI,...

Tech Supply Chain Tracker

Chinese Chip Firms Play Down Impact of New U.S. Export Curbs

Several companies in China’s semiconductor supply chain said new U. S. export restrictions aimed at crippling the country’s ability to produce...

Caixin Global

Wingtech (600745 CH) – 3Q Results Confirmed ODM Back on Track

We continue to see strength in Company’s legacy business, which alleviated market concerns on its legacy business’ competitiveness and new...

CMB International

Wingtech (600745 CH) – Strong 2Q23 Results on ODM Business Turning Profitable

Wingtech released its 1H23 results, posting revenue and NP growth of 2.5% and 7.2% YoY. By segment, ODM/semi sales (accounted for 71%/26% of the...

CMB International

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

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