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>Innolight has recently released results for FY23 and 1Q24, exceeding both our and market’s expectations.</li><li>For FY23, the company's revenue grew by 11.2% YoY to RMB10.7bn, with net profit soaring by 77.6% YoY to RMB2.2bn.</li><li>1Q saw even more impressive growth, with revenue up by 163.6% YoY to RMB4.8bn and net profit increasing by an astonishing 303.8% YoY to RMB1.0bn. we attribute the impressive results largely to strong demand for its high-speed optical transceivers (esp. 400G &amp; 800G), making up over 90% of its total revenue in FY23. </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.

Innolight has recently released results for FY23 and 1Q24, exceeding both our and market’s expectations.For FY23, the company's revenue grew by 11.2% YoY to RMB10.7bn, with net profit soaring by 77.6% YoY to RMB2.2bn.1Q saw even more impressive growth, with revenue up by 163.6% YoY to RMB4.8bn and net profit increasing by an astonishing 303.8% YoY to RMB1.0bn. we attribute the impressive results largely to strong demand for its high-speed optical transceivers (esp. 400G &amp; 800G), making up over 90% of its total revenue in FY23. 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.

InnoLight (300308 CH) - 1Q24 Results Set Stage for Accelerated Growth in 2024

<ul><li>We think 2024 is set to be another solid year for both infrastructure investments and downstream demand continue to thrive.</li><li>According to Bloomberg's consensus, CSP3 (comprising Amazon, Google, and Microsoft) along with Meta, are projected to ramp up their capex by 16.6%/7.6% YoY in 2024/2025E.</li><li>We reaffirm our positive stance on optical transceiver players, specifically in light of their ongoing capacity expansion and production ramp-up of the high data rate optical modules, e.g., 400G/800G products. </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.

We think 2024 is set to be another solid year for both infrastructure investments and downstream demand continue to thrive.According to Bloomberg's consensus, CSP3 (comprising Amazon, Google, and Microsoft) along with Meta, are projected to ramp up their capex by 16.6%/7.6% YoY in 2024/2025E.We reaffirm our positive stance on optical transceiver players, specifically in light of their ongoing capacity expansion and production ramp-up of the high data rate optical modules, e.g., 400G/800G products. 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.

Innolight (300308 CH) – True Beneficiary in AI Value Chain

<ul><li>Innolight has released its 3Q23 results, with resilient growth in both revenue/NP at 14.9%/89.5% YoY and 39.7%/88.4% QoQ, respectively.</li><li>The strong revenue growth was driven by substantial global demand for 400G and 800G optical transceivers.</li><li>Notably, the Company's gross margin showed consistent improvement across the first three quarters of 2023, climbing from 29.5%/31.1% in 1Q/2Q to 33.5% in 3Q. </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.

Innolight has released its 3Q23 results, with resilient growth in both revenue/NP at 14.9%/89.5% YoY and 39.7%/88.4% QoQ, respectively.The strong revenue growth was driven by substantial global demand for 400G and 800G optical transceivers.Notably, the Company's gross margin showed consistent improvement across the first three quarters of 2023, climbing from 29.5%/31.1% in 1Q/2Q to 33.5% in 3Q. 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.

Innolight (300308 CH) – Strong 3Q Results on Accelerating AI Revenue

<ul><li>Since our downgrade report on 14 Aug, we have seen a continuous decline on Innolight’s share price by more than 23%.</li><li>Our current view on the stock is becoming increasingly favourable, driven by: 1) continuous strong momentum observed in building up AI infrastructure globally; and 2) quick uptake seen in downstream application market (e.g., AI-powered Ads adopted by Meta, Google and Amazon, GitHub copilot by Microsoft).</li><li>In addition, companies within the AI hardware value chain start to report strong earnings. </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.

Since our downgrade report on 14 Aug, we have seen a continuous decline on Innolight’s share price by more than 23%.Our current view on the stock is becoming increasingly favourable, driven by: 1) continuous strong momentum observed in building up AI infrastructure globally; and 2) quick uptake seen in downstream application market (e.g., AI-powered Ads adopted by Meta, Google and Amazon, GitHub copilot by Microsoft).In addition, companies within the AI hardware value chain start to report strong earnings. 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.

Innolight (300308 CH) – Expect Higher Contribution from AI Revenue in 3Q

<ul><li>Innolight released 1H23 results. Total revenue was RMB4,004mn (-5.4% YoY), mixed impacts from increasing demand for AI-related transceivers and deteriorated demand for traditional datacenter products.</li><li>NP was RMB613.8mn (24.6% YoY), mainly driven by higher GPM and operating cost optimization.</li><li>1H23 NP was close to the mid-point of the preliminary range. </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.

Innolight released 1H23 results. Total revenue was RMB4,004mn (-5.4% YoY), mixed impacts from increasing demand for AI-related transceivers and deteriorated demand for traditional datacenter products.NP was RMB613.8mn (24.6% YoY), mainly driven by higher GPM and operating cost optimization.1H23 NP was close to the mid-point of the preliminary range. 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.

Innolight (300308 CH) – Investors Focusing on 800G Transceivers Ramp-Up After 1H23 Results

China

Zhongji Innolight Co., Ltd. manufactures and distributes industrial machines and machine parts. The Company produces motor stator windings, insulating machines, coil winding equipment, automatic production lines, and more. Zhongji Innolight mainly conducts businesses domestically.

Zhongji Innolight (300308 CH)

InnoLight (300308 CH) - 1Q24 Results Set Stage for Accelerated Growth in 2024

We revise up our earnings forecasts and raise TP for Innolight to RMB183, corresponding to the same 30x 2024E P/E. Maintain BUY

CMB International

Innolight (300308 CH) – True Beneficiary in AI Value Chain

We think 2024 is set to be another solid year for both infrastructure investments and downstream demand continue to thrive.

CMB International

Innolight (300308 CH) – Strong 3Q Results on Accelerating AI Revenue

nnolight has released its 3Q23 results, with resilient growth in both revenue/NP at 14.9%/89.5% YoY and 39.7%/88.4% QoQ, respectively.

CMB International

Innolight (300308 CH) – Expect Higher Contribution from AI Revenue in 3Q

Our current view on the stock is becoming increasingly favourable, driven by: 1) continuous strong momentum observed in building up AI...

CMB International

Innolight (300308 CH) – Investors Focusing on 800G Transceivers Ramp-Up After 1H23 Results

NP was RMB613.8mn (24.6% YoY), mainly driven by higher GPM and operating cost optimization. 1H23 NP was close to the mid-point of the preliminary...

CMB International