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)

<div><div><div><ul><li>Hikvision and Dahua both reported worse than expected 3Q22 results as macro headwinds surge. </li><li>However, the diverging performance implies that Hikvision is more resilient than Dahua amid macro fluctuations. In particular, Hikvision revenue was up +3% YoY while that of Dahua was down -11% YoY in 3Q22. </li><li>We are surprised to see Dahua’s QoQ decline in revenue, considering the lockdown impact in 2Q22. </li></ul></div></div></div>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.

Hikvision and Dahua both reported worse than expected 3Q22 results as macro headwinds surge. However, the diverging performance implies that Hikvision is more resilient than Dahua amid macro fluctuations. In particular, Hikvision revenue was up +3% YoY while that of Dahua was down -11% YoY in 3Q22. We are surprised to see Dahua’s QoQ decline in revenue, considering the lockdown impact in 2Q22. 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 AI – Margin under pressure amid weakening demand

<ul><li>Number of China public security projects bidding remained weak in 3Q22 at -7% YoY (vs. -4% YoY in 2Q22) as Sep number deteriorated (-9% YoY).</li><li>Meanwhile, the US has broadened the restrictions from targeting specific companies (Entity List) to specific products (semiconductors/ equipment above certain computing threshold). </li><li>Our channel checks suggested that the new rules have limited impact to existing commercial AI applications.</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.

Number of China public security projects bidding remained weak in 3Q22 at -7% YoY (vs. -4% YoY in 2Q22) as Sep number deteriorated (-9% YoY).Meanwhile, the US has broadened the restrictions from targeting specific companies (Entity List) to specific products (semiconductors/ equipment above certain computing threshold). Our channel checks suggested that the new rules have limited impact to existing commercial AI applications.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 AI – Public Security Demand Remained Weak in 3Q22

<ul><li>Reuters reported that the U.S. may publish new regulations next month to broaden curbs on 1) AI chips, 2) chipmaking equipment and 3) products that contain targeted chips exports to China. </li><li>This could cover more U.S. companies and will disallow export of servers containing advanced GPU. </li><li>Under the new rules, China can still design sub-14nm (not sub-3nm) AI chips but the production has to be taken place outside of China. </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.

Reuters reported that the U.S. may publish new regulations next month to broaden curbs on 1) AI chips, 2) chipmaking equipment and 3) products that contain targeted chips exports to China. This could cover more U.S. companies and will disallow export of servers containing advanced GPU. Under the new rules, China can still design sub-14nm (not sub-3nm) AI chips but the production has to be taken place outside of China. 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 AI – U.S. May Broaden AI Chips Export Restrictions

China

Zhejiang Dahua Technology Co., Ltd. researches, designs and manufactures security and surveillance equipments. It also modular-designs both hardware and software with flexibility for different configurations, various scales of applications and future expansion.

Zhejiang Dahua Technology A (002236 CH)

China AI – Margin under pressure amid weakening demand

We are surprised to see Dahua’s QoQ decline in revenue, considering the lockdown impact in 2Q22. Innovative businesses growth (Hikvison +18% YoY/...

CMB International

China AI – Public Security Demand Remained Weak in 3Q22

Number of China public security projects bidding remained weak in 3Q22 at -7% YoY (vs. -4% YoY in 2Q22) as Sep number deteriorated (-9% YoY).

CMB International

China AI – U.S. May Broaden AI Chips Export Restrictions

Under the new rules, China can still design sub-14nm (not sub-3nm) AI chips but the production has to be taken place outside of China.

CMB International