Investment Rating - The report does not provide a specific investment rating for the company [2][8]. Core Insights - The company, Huaxian Optoelectronics (00334.HK), experienced a rebound in sales driven by the recovery in demand for mobile TFT LCD modules, with both sales and processing businesses recording positive growth in Q3 and Q4 of 2023 [39]. - In 2023, the company achieved a total revenue of 2.58 billion RMB, with a year-on-year decrease of 8.4% in the second half and 55.1% in the first half, primarily due to a rebound in sales volume in the latter half [3][12]. - The average selling price of TFT LCD modules increased significantly, reaching 85.9 RMB per unit in Q1 2024, supported by contributions from the tablet and smart home product segments [42][44]. Summary by Sections Revenue Performance - In 2023, the company reported total revenue of 2.58 billion RMB, with a significant drop in the first half but a recovery in the second half, particularly in non-bonded and bonded TFT LCD module sales [3][12]. - The sales volume for non-bonded TFT LCD modules reached approximately 4.1 million units in 2023, while bonded modules sold around 38.7 million units, showing a notable increase in the second half [3][12]. Product Segments - The tablet display module and other display modules saw a substantial increase in shipment volumes, with Q1 2024 shipments reaching 735,000 and 1,065,000 units, respectively, compared to the same period in 2023 [6]. - The company’s main customer base consists of mobile manufacturers, whose orders remained relatively stable during the previous year's industry downturn, contributing over half of the total revenue [15]. Financial Metrics - The gross profit margin for the second half of 2023 was 6.5%, a decline of approximately 1.4 percentage points from the first half, primarily due to changes in product mix [44]. - The company reported a net profit of 13.1 million RMB for the fiscal year 2023, reversing losses from the first half, attributed to effective cost control measures [21][44]. Market Outlook - The company is expected to maintain a low gross margin due to the anticipated increase in revenue contribution from lower-margin segments such as tablet and smart home products [44][22]. - The market for TFT LCD modules is highly mature, and while horizontal expansion may enhance profitability, the focus should be on long-term value drivers for sustainable investment [22].

Investment Rating - The report assigns a stock rating of NR (Not Rated) for CDOT (00334.HK) [27]. Core Insights - The company experienced a significant year-on-year revenue increase of 57.3% to RMB 931.7 million in 2024 Q1, driven by strong sales of tablet display modules and other display modules, which offset a decline in smartphone module sales [2]. - The gross margin for CDOT in FY 2023 dropped to 6.5%, primarily due to a change in product mix, which may continue to affect profitability [41]. - The company has seen a recovery in sales volume, particularly in the second half of 2023, with non-laminated and laminated module sales volumes reaching 4.1 million and 38.7 million respectively [7]. Summary by Relevant Sections Revenue and Profitability - CDOT reported RMB 2.6 billion in revenue for FY 2023, reflecting a year-on-year decline of 8.4% and a significant drop of 55.1% in the first half of 2023 [7]. - The company achieved a net profit of RMB 13.1 million and an operating profit of RMB 19.0 million in FY 2023, reversing from a loss in the first half of 2023 [20]. Sales Performance - The sales volume of tablet display modules and other display modules in 2024 Q1 reached 0.7 million and 1.1 million, representing increases of 22.7 times and 87.8 times compared to 2023 Q1 [11]. - The ASP (Average Selling Price) of non-laminated and laminated modules increased to RMB 28.5 and RMB 70.4 in 2023 Q4, marking a rebound from previous lows [15]. Market Dynamics - The order book from a major smartphone manufacturer remained stable, contributing significantly to revenue stability in 2024 Q1 [36]. - The company’s strategy includes leveraging support from CSOT to customize panel sizes, enhancing its ability to meet customer demands and expand into the tablet market [40]. Future Outlook - The report indicates that while there has been operational improvement, low gross margins remain a concern, limiting the company's ability to withstand market fluctuations [42]. - The company is expected to see further contributions from the tablet and smart home device segments, potentially driving ASP increases in 2024 [17][19].

| 研究報告 2024年4月5日 贏家時尚 | 03709.HK 更新報告 來年平穩發展，具備新的催化劑 敖曉風, Brian, CFA 高級分析師 評級 目標價 brianngo@westbullsec.com.hk 買入 HK$ 16.78 +852 3896 2965 贏家時尚(03709.HK)於 2023 年實現 69.1 億元人民幣總收入，毛利率微升至 香港上環德輔道中199號無限極廣場2701 – 2703室 75.3%，帶動集團淨利潤按年增長1.2x。集團同時宣布派發每股0.7港元股息， 贏家時尚 (03709.HK) 相當於~52%派息比率。 評級 (前評級) 買入 (買入) 目標價 (前目標價) HK$ 16.78 (HK$ 16.78) 資訊披露更為詳細: 我們對贏家時尚(03709.HK)提供更詳細營運資訊的做法感 現價 HK$ 13.10 到正面，按渠道劃分的毛利率及推廣開支的訊息披露分別有利於協助投資者理 52-周波幅 HK$ 9.50 – HK$ 15.48 解集團不同渠道的銷售策略及未來的品牌策略。此外，集團有意從2024年首 市值 (港元, 十億) HK$ 9.2 季度起公告 ...

| RESEARCH 5 Apr, 2024 EEKA Fashion | 03709.HK COMPANY UPDATE Stable development with new catalysts H F NGO, Brian, CFA STOCK RATING TARGET PRICE SENIOR ANALYST BUY HK$ 16.78 brianngo@westbullsec.com.hk EEKA Fashion (03709.HK) reported a YoY 22.1% growth in revenue to RMB 6.9bn, and its gross +852 3896 2965 margin slightly surged to 75.3%, leading to a YoY 121.8% increment in the bottom-line. The Group 2701 – 2703, 27/F, Infinitus Plaza, 199 Des Voeux Rd also announced a dividend of HKD 0.7/share, amounting ...

◼ Unable to achieve breakeven / monetize the new games or social networking APPs Newborn Town (09911.HK) 52-Week Range HK$ 1.33 – 2.76 | RESEARCH Target Price (Previous TP) HK$ 3.31 (HK$ 3.78) Market cap. (HKD, bn) HK$ 3.1 Revenue 3,307.8 4,190.7 4,542.0 4,880.5 Gross Margin 52.1% 51.3% 51.1% 50.9% EPS 0.447 0.377 0.396 0.419 Absolute 45.0% 37.4% 26.7% 55.4% 3 Apr, 2024 Strong outlook, but vague on details BUY Strong performance of Sugo, TopTop and other APPs offset the sluggish contribution from Mico: The ...

展望理想，惟缺清晰細節 更新報告 brianngo@westbullsec.com.hk | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|---------------------------------------------|-----------------------|----------------------------------|-----------------------| | | | | | | | | | 香港上環德輔道中 | 199 | 號無限極廣場 | 2701 – | 2703 室 | | 到 33.1 億元人民幣及 5.1 億元人民幣， ( 扣除公允值收益後)略優於我們 ...

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HK$ 2.85, down from a previous target of HK$ 6.13 [2][11]. Core Insights - The company, 英恒科技 (01760.HK), experienced a decline in gross margin by 2.9 percentage points year-on-year to 18.7%, which was below expectations and significantly lower than the average gross margin [2]. - The slowdown in revenue growth was noted across various business segments, with the new energy segment remaining the primary revenue contributor, while the intelligent driving network was identified as the main growth driver [2]. - The company has faced intense competition, leading to a shift in pricing strategy to cope with market pressures, resulting in a gross margin of only 17.1% for the second half of the fiscal year 2023 [2]. - The report indicates a significant reduction in profit forecasts by approximately 51% to 58% due to the challenges faced, including low gross margins and high R&D expenditures [2]. Financial Summary - For the fiscal year 2023, the company achieved total revenue of RMB 5.8 billion, representing a year-on-year growth of 20.1% [11]. - The projected revenues for the upcoming years are RMB 6.84 billion in 2024, RMB 7.52 billion in 2025, and RMB 8.17 billion in 2026, with respective growth rates of 17.9%, 10.0%, and 8.6% [15]. - The net profit for 2023 is projected to decline by 24.0%, with further reductions expected in 2024 and 2025 [15]. Operational Challenges - The company is experiencing increased operational capital pressure due to rising financing costs and a longer cash conversion cycle, which has led to a higher net debt-to-equity ratio of 48.1% [2][14]. - The report highlights that the company has not seen signs of improvement in the first quarter of 2024 amidst ongoing price wars in the downstream market [2]. Market Position - The company is positioned within a highly competitive landscape, with significant pressure on product pricing and profit margins due to aggressive competition in the automotive sector [4][22]. - The report notes that the company’s pricing strategy has been adjusted to "cost + ~20%" but has not yielded significant changes in market conditions [2]. Conclusion - Overall, the report reflects a cautious outlook on the company's performance, emphasizing the need for strategic adjustments to navigate the challenging market environment while maintaining a "Buy" rating based on potential recovery and growth opportunities [2].

Investment Rating - The report maintains a "BUY" rating for Intron (01760.HK) with a target price of HKD 2.85 per share, down from HKD 6.13 [2][10]. Core Insights - Intron reported a year-on-year revenue increase of 20.1% to RMB 5,802.3 million for FY 2023, but the gross margin fell by 2.9 percentage points to 18.7%, which was lower than estimates [3][4]. - The company experienced a significant decline in net profit, retreating by 23.0% year-on-year, attributed to increased R&D expenses and a competitive pricing environment [4][10]. - The revenue growth was driven primarily by NEV Solutions, but competition led to manufacturers opting for lower-cost solutions, impacting growth in advanced driver-assistance systems (ADAS) [4][10]. - A shift in pricing strategy was noted, with a gross margin of 17.1% in the second half of 2023, indicating adjustments to cope with market pressures [4][10]. - The report anticipates continued challenges in 2024, with profit margins expected to remain under pressure due to lower gross margins and high R&D expenses [4][10]. Financial Summary - Revenue projections for the next few years are as follows: RMB 6,840.5 million in 2024, RMB 7,524.0 million in 2025, and RMB 8,174.4 million in 2026, reflecting a year-on-year growth rate of 17.9%, 10.0%, and 8.6% respectively [15]. - The gross profit is projected to increase from RMB 1,083.6 million in 2023 to RMB 1,247.8 million in 2024, with gross margins expected to stabilize around 18.8% in 2026 [15][17]. - The net profit is forecasted to decline significantly in 2024, with estimates of RMB 219.4 million, before recovering to RMB 301.3 million in 2025 and RMB 398.7 million in 2026 [15]. Operational Outlook - The report indicates a cautious operational outlook, with estimates cut by 51% to 58% due to ongoing difficulties, including lower gross margins and increased financial expenses [4][10]. - The company is expected to face a tightening working capital situation due to a longer cash conversion cycle and high R&D expenses [13][17].

| --- | --- | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------------------|-------------------------|-------------------------------------------------------------------|---------------------------------------------|---------------------------------------------|----------------------------------| | | Central, Sheung Wan, HK | | | | | | medical segment boomed YoY 75.2% to MYR 148.2mn. Thanks to the growing contribution | Pentamaster (01665.HK) ...

檳傑科達 | 01665.HK 評級 敖曉風, Brian, CFA | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------------|----------------------|-------------------------------------------------------------------|--------------------------------------------------------|---------------------------------------------|----------------------------------| | | | | | | | | | 香港上環德輔道中 | 199 | 號無限極廣場 | 2701 – | 2703 室 | | 潤較去年同期上升約 6.7% ，與我們預期相乎。汽車業務分部繼續成為集團主要的貢獻業 | 檳傑科達 | ( ...