Investment Rating - The report maintains a "Buy" rating for OmniVision Technologies (豪威集团) due to its advantageous position in mobile terminals, automotive, and emerging markets, with expectations of further market share growth through new product introductions by 2025 [2]. Core Insights - The global CMOS image sensor market is expected to rebound in 2024, achieving a market size of $23 billion, reflecting a year-on-year growth of 6.4%. This recovery indicates a new phase of structural differentiation and sustained growth in the industry [2][4]. - The growth drivers for the industry are shifting from mobile terminals, which still contribute over 60% of revenue, to automotive applications driven by the acceleration of ADAS penetration and the emergence of new applications such as smart glasses and machine vision [2][3]. - The competitive landscape is characterized by strategic differentiation and consolidation, with technology leaders like Sony pushing performance boundaries through large pixels and advanced stacking processes, while scale manufacturers like Samsung and agile Chinese competitors drive high-resolution revolutions with cost-effective solutions [2][3]. Market Dynamics - The mobile terminal CMOS image sensor market is stabilizing, with growth primarily driven by an increase in average selling prices as consumers shift towards high-end models and generative AI smartphones. Despite a moderate growth forecast for device shipments, the average number of cameras per device is expected to remain stable [3][12]. - The automotive CMOS image sensor market is projected to maintain double-digit growth from 2025 to 2027, driven by increased camera penetration per vehicle due to ADAS, in-cabin monitoring, and ongoing resolution upgrades [3][25]. - Emerging applications such as smart glasses and machine vision are opening new growth avenues, requiring specialized sensors with ultra-low power consumption, miniaturization, and global shutter technology, providing high-value growth directions for technology-leading companies [3][31]. Competitive Landscape - Sony leads the market with nearly 50% share, further increasing its share by 1 percentage point in 2024, showcasing its technological advantages in mobile terminal CMOS image sensors and growth in the automotive sector [7][11]. - Samsung holds the second position, leveraging its IDM model and focusing on high-resolution, small pixel technology, while also re-entering the Apple supply chain, marking a significant strategic breakthrough [11][30]. - OmniVision ranks third with an 11% market share, experiencing a 23.5% year-on-year revenue growth in 2024 across all business lines, particularly in mobile terminals and automotive applications [11][30]. - Other notable competitors include GalaxyCore and SmartSens, with significant growth in their respective markets, driven by competitive pricing and technological advancements [6][11].

Report Industry Investment Rating - No information provided Core View of the Report - Maintain buy on VEDLN 9.475 07/24/30 due to its all-time high first half recurring EBITDA [3][7] Summary by Relevant Sections Trading Desk Comments - Yesterday, recent USD MEITUA 31 - 35s widened 2 - 4bps with RM selling; TW lifers SHIKON/FUBON/NSINTWs widened 2 - 5bps; BBLTB sub curve was 1 - 4bps wider; JP bank FRNs held up well, JP AT1s dropped by 0.3pt; JP insurance hybrids were marked lower; Yankee AT1s were down by 0.4pt then stabilized; NWDEVL Perps lowered 0.7 - 2.0pts, NWDEVL 27 - 31s were down by 0.6 - 1.3pts; LASUDE 26 was 1.4pts lower; MTRC perps lost up to 0.2pt; VNKRLE 27 - 29 recovered 2.7 - 2.9pts; GRNCH 28 fell by up to 0.5pt; Macau gaming stocks had mixed performance; HYNMTRs/HYUELEs traded 1 - 3bps wider; NTT curve was 1 - 3bps wider; PETMK curve was 2 - 4bps wider on the long end; SMCGL Perps/GARUDA 31 were down by 0.1 - 0.2pt; VEDLN 28 - 33s were 0.3 - 1.1pts lower; onshore AAA - guaranteed LGFV papers were sought after [2] - This morning, new CDBFLC 35 widened 2bps, new QBEAU 37 tightened 3bps, new STANLN PerpNC10 was 0.2pt higher; JP insurance bonds and MTRC Perps were down by 0.1 - 0.3pt; NUFAU 30 rose 0.9pt, SOFTBK 61/65s and NWDEVL 30 were 0.6 - 0.7pt lower; TW lifers widened 2 - 4bps [3] Top Performers and Underperformers - Top performers include VNKRLE 3.975 11/09/27 (price 60.3, change 2.9), VNKRLE 3 1/2 11/12/29 (price 52.0, change 2.7), etc. - Top underperformers include NWDEVL 6 1/4 PERP (price 42.3, change - 2.0), NWDEVL 5 1/4 PERP (price 44.0, change - 1.9), etc. [4] Macro News Recap - On Tuesday, S&P (-1.17%), Dow (-0.53%) and Nasdaq (-2.04%) were lower; UST yield was lower, with 2/5/10/30 year yield at 3.58%/3.69%/4.10%/4.67% [6] Desk Analyst Comments on VEDLN - VEDLN's 2QFY26 recurring EBITDA reached INR116.1bn, up 12% yoy; 1HFY26 EBITDA rose to INR223.6bn, 42% of full - year target of USD6bn; prefer VEDLN 9.475 07/24/30 with YTW of 9.0% and 106bps yield pickup over NICAU 9 09/30/30 [7] - VEDLN's average borrowing cost declined to c9.0% in 1HFY26 from c9.7% in 1QFY26, expected to fall below 8% near - term; PAT dropped 26% yoy to INR79.4bn due to one - off losses [10] - 1HFY26 operating cash flow decreased 12% yoy to INR162.3bn; spent INR102.6bn in capex, 61 - 68% of FY26 target; estimated 1HFY26 FCF was INR59.7bn [11] - As of Sep'25, cash and equivalents increased to INR218.6bn; total debt/LTM EBITDA and net debt/LTM EBITDA rose slightly to 1.9x and 1.4x; aims to bring net leverage down to 1.0x near - term [12] - Deleveraging may face headwinds from JPA acquisition; demerger hearing postponed to 12 Nov'25, seen as moderately credit positive [13] Offshore Asia New Issues - Priced issues include Alinma Sukuk Limited (USD500mn, 10NC5, 5.792%, T + 210), China Development Bank Financial Leasing (USD500mn, 10NC5, 4.6%, T + 93), etc. - Pipeline issues include Gaoxin International Investment (unrated, 3yr, 5.0%), Korea Electric Power Corporation (Aa2/AA/-, 3yr/SOFR + 95, 5yr/T + 80), etc. [17][18] News and Market Color - 99 credit bonds issued yesterday onshore with RMB106bn; MTD, 206 credit bonds issued with RMB190bn, 19.2% yoy increase [20] - Adani Enterprises 1HFY26 EBITDA fell 11% yoy to INR76.9bn, plans to raise INR250bn via rights issue [20] - Adani Ports 1HFY26 EBITDA rose 20% yoy to INR110.5bn, Fitch changed outlook to stable and affirmed BBB - rating [20] - China to boost subsidies for Alibaba, Tencent to cut data center energy bills [20] - Moody's upgraded Bharti Airtel to Baa2 from Baa3, outlook to stable [20] - GLP China repurchased USD205mn of GLPCHI 2.95 03/29/26, USD495mn outstanding [20] - Nickel Industries to hold non - deal roadshow on 19 Nov'25 [20] - Petron 9M25 revenue fell 10% yoy to PHP594.9bn [20] - Pertamina Geothermal targets 6.1% revenue increase for FY26 [20] - SK Telecom plans full - scale AI infrastructure expansion [20]

Investment Rating - The report maintains a "Buy" rating for Microsoft (MSFT US), Amazon (AMZN US), Google (GOOG US), and Meta (META US) [7][12][13] Core Insights - Strong demand and easing supply constraints are driving accelerated revenue growth for cloud service providers, with a combined revenue growth rate of 25.7% year-on-year in Q3 2025 [6][21] - Capital expenditures (Capex) for cloud companies increased significantly to $93.1 billion, reflecting a 71% year-on-year growth, indicating robust investment to meet demand [6][9] - AI investments are impacting profit margins differently across sectors, with cloud-related Capex showing better-than-expected results, while advertising sectors may face longer return cycles [6][16] Summary by Sections Q3 2025 Performance - The revenue growth for major U.S. internet companies in Q3 2025 showed an increase to 25.7% year-on-year, up from 23.1% in Q2 2025 [6][21] - Cloud service providers' operating profit grew by 24.1% year-on-year, indicating strong profitability despite increased Capex [6][9] AI Commercialization Progress - AI is driving rapid revenue growth in cloud computing and advertising sectors, with significant advancements in AI cloud infrastructure [16][17] - The return on investment for AI in advertising is slower compared to cloud services, leading to short-term profit margin pressures for companies like Meta [16][17] Company-Specific Analysis - **Microsoft**: Cloud revenue growth remains strong, with a 28.2% increase in Q3 2025, supported by robust demand and effective AI monetization strategies [12][21] - **Amazon**: Cloud revenue growth accelerated, benefiting from improved power supply conditions and increased order backlogs [12][13] - **Google**: AI is enhancing both cloud and core search business growth, with cloud revenue increasing by 34% year-on-year [12][13] - **Meta**: Increased AI investments are putting short-term pressure on profit growth, despite long-term revenue potential from AI-driven advertising [12][13] Capital Expenditure Trends - Total Capex for Microsoft, Google, Amazon, and Meta reached $112.4 billion in Q3 2025, reflecting a 77% year-on-year increase [9][25] - Approximately 50% of Capex is allocated to short-term assets, indicating a focus on immediate demand fulfillment [9][25]

2025 年 11 月 5 日 招银国际环球市场 | 睿智投资 | 公司更新 贝克微 (2149 HK) 贝克微 (2149 HK) - 纳入恒生半 整、四季度定价能力提升；重申 纳入恒生半导体指数、进行分销商战略性调整、四 "买入"评级 季度定价能力提升；重申"买入"评级 恒生指数正式将"恒生资讯科技业指数"更名为"恒生半导体行业主题指数"，并将 贝克微（2149 HK）纳入成份股，自 2025 年 11 月 7 日起生效。我们认为这将为 贝克微带来结构性利好，公司将有望受益于潜在被动资金流入提升市场流动性的 同时，吸引主动管理型基金的关注。重申"买入"评级；目标价维持 93 港元不变， 基于 26.6 倍 2025 年预测市盈率。 | (截至 12 月 31 日) | FY23A | FY24A | FY25E | FY26E | FY27E | | --- | --- | --- | --- | --- | --- | | 销售收入 (百万人民币) | 464 | 579 | 672 | 841 | 1,046 | | 同比增长 (%) | 31.6 | 24.8 | 16.1 | 25.1 | 24. ...

Market Overview - Global markets experienced a decline, with the Hang Seng Index falling by 0.79% and the S&P 500 down by 1.17% [1][3] - The A-share market is in a correction phase since October 2, with a potential drop of 15%-20% expected [3] - Defensive sectors are seeing capital inflows, while materials, healthcare, and consumer discretionary sectors are leading declines in Hong Kong stocks [3] Sector Performance - The Hang Seng Financial Index rose by 0.26%, while the Hang Seng Industrial and Commercial Index fell by 1.44% [2] - High-dividend sectors such as telecommunications and utilities are performing well amidst market volatility [3] Company Insights - Luxshare Precision (002475 CH) has its target price raised to 75.55 RMB, reflecting strong synergy from the Apple upgrade cycle and ODM integration [5] - The expected compound annual growth rate for Luxshare's earnings from FY25-27 is projected at 27%, driven by growth in consumer electronics, automotive, and communication sectors [5] Economic Indicators - The UK government is focusing on reducing inflation and managing national debt, hinting at potential tax increases in the upcoming budget [3] - The U.S. job vacancies have dropped to the lowest level since April 2021, indicating a tightening labor market [4]

整、四季度定价能力提升；重申 纳入恒生半导体指数、进行分销商战略性调整、四 "买入"评级 季度定价能力提升；重申"买入"评级 恒生指数正式将"恒生资讯科技业指数"更名为"恒生半导体行业主题指数"，并将 贝克微（2149 HK）纳入成份股，自 2025 年 11 月 7 日起生效。我们认为这将为 贝克微带来结构性利好，公司将有望受益于潜在被动资金流入提升市场流动性的 同时，吸引主动管理型基金的关注。重申"买入"评级；目标价维持 93 港元不变， 基于 26.6 倍 2025 年预测市盈率。 | (截至 12 月 31 日) | FY23A | FY24A | FY25E | FY26E | FY27E | | --- | --- | --- | --- | --- | --- | | 销售收入 (百万人民币) | 464 | 579 | 672 | 841 | 1,046 | | 同比增长 (%) | 31.6 | 24.8 | 16.1 | 25.1 | 24.4 | | 毛利率 (%) | 55.4 | 53.0 | 52.4 | 52.4 | 52.4 | | 运营利润 (百万人民币) | 113.4 | ...

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to 591 RMB, reflecting a potential upside of 23.1% from the current price of 480 RMB [1][3][8]. Core Insights - The company's quarterly performance reached a new high, with Q3 revenue of 10.2 billion RMB, representing year-on-year and quarter-on-quarter growth of 57% and 26%, respectively. The gross margin significantly increased to 42.8%, up 9.2 and 1.3 percentage points from the same period last year and the previous quarter [1][8]. - Net profit surged to 3.1 billion RMB, marking a historical peak with year-on-year and quarter-on-quarter growth of 125% and 30%. The net profit margin improved to 30.7%, compared to 21.4% and 29.7% in the same period last year and the previous quarter [1][8]. - The demand for 800G optical modules and the increased adoption of silicon photonics solutions contributed to the scale effect and improved profitability. The management expects continued growth in 800G optical module demand and anticipates large-scale production of 1.6T silicon photonics products to begin in early 2026 [1][8]. Financial Summary - For FY23A, the company reported sales revenue of 10.7 billion RMB, with a year-on-year growth of 11.2%. Projections for FY24A, FY25E, FY26E, and FY27E are 23.9 billion RMB, 37.9 billion RMB, 73.4 billion RMB, and 105.7 billion RMB, respectively, with significant growth rates of 122.6%, 59.0%, 93.5%, and 44.0% [2][15]. - The gross margin is expected to improve from 33.0% in FY23A to 41.6% in FY25E, peaking at 44.3% in FY26E before slightly declining to 43.5% in FY27E [2][15]. - Net profit is projected to grow from 2.2 billion RMB in FY23A to 5.2 billion RMB in FY24A, reaching 10.8 billion RMB in FY25E, and further increasing to 23.2 billion RMB and 33.4 billion RMB in FY26E and FY27E, respectively [2][15]. Market Position and Outlook - The company is positioned as a leader in the optical module market, which is expected to mitigate supply chain risks. The management has secured long-term capacity with key suppliers to address potential supply chain challenges [1][8]. - The expansion of capital expenditures by major cloud service providers for AI infrastructure is anticipated to drive further sales growth for the company. Notable increases in capital expenditure forecasts from companies like Google, Meta, and Microsoft reinforce this positive outlook [1][8].

Market Overview - The Hang Seng Index closed at 26,158, up 0.97% for the day and 30.40% year-to-date [1] - The Shanghai Composite Index rose 0.55% to 3,977, with a year-to-date increase of 18.64% [1] - The US markets showed mixed results, with the Dow Jones down 0.48% and the S&P 500 up 0.17% [1] Sector Performance - The Hang Seng Financial Index increased by 2.09%, with a year-to-date rise of 33.73% [2] - The Hang Seng Property Index rose by 1.53%, reflecting a year-to-date increase of 22.48% [2] - The energy, financial, and consumer staples sectors led the gains in the Hong Kong market, while materials and consumer discretionary sectors declined [3] Economic Indicators - The 7-day reverse repo rate in China decreased to 1.4%, while the 10-year government bond yield is at 1.79% [3] - The US manufacturing PMI fell to 48.7, indicating economic contraction for eight consecutive months [3] - The dollar index reached a three-month high, reflecting a strengthening dollar [3] Company Insights: Haier Smart Home - Haier's management maintains a cautious outlook for FY26, projecting mid to high single-digit sales growth and over 10% net profit growth [4] - The air conditioning segment is expected to see over 10% sales growth in the next 3-5 years, driven by enhanced R&D and digital inventory management [5] - The Casa Di brand aims for over 15% sales growth in FY26, focusing on innovation and expansion of high-end experience stores [6] Company Insights: China Life - China Life reported a nearly doubled net profit in Q3 FY25, reaching 1,260 million RMB, a 92% year-on-year increase [9] - The company benefited from rising market interest rates and a strong performance in investment services, with total investment income increasing by 41% year-on-year [9] - The new business value growth forecast has been raised to 38% for the year [9] Company Insights: China Pacific Insurance - China Pacific Insurance's Q3 FY25 net profit grew by 91.5% to 158 million RMB, driven by improved underwriting and investment income [10] - The company achieved a combined ratio improvement, with the car insurance and non-car insurance ratios both showing positive trends [10] - The investment service performance saw a significant increase, with total investment income reaching 359 million RMB, a 33% year-on-year growth [10] Company Insights: BYD Electronics - BYD Electronics is optimistic about revenue growth in 2026, driven by upgrades in North American client products and expansion in the automotive sector [11] - The company anticipates a 50% increase in revenue from foldable smartphones and a 20% increase from automotive business [11] - The AI server business is projected to generate sales of 5 billion RMB [11] Company Insights: Baker Hughes - Baker Hughes has been included in the newly named Hang Seng Semiconductor Industry Index, which is expected to enhance market liquidity and attract investor attention [12] - The strategic optimization of the index aims to improve the investability of Hong Kong's semiconductor companies [12]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to 90 RMB, reflecting strong growth momentum driven by AI [1][8]. Core Insights - The company's Q3 2025 performance shows significant growth, with revenue reaching 7.9 billion RMB, a year-on-year increase of 55% and a quarter-on-quarter increase of 12%. The gross margin improved to 28.1%, up from 22.9% a year ago and 26.9% in the previous quarter. Net profit surged by 131% year-on-year and 18% quarter-on-quarter to 1 billion RMB, resulting in a net profit margin of 12.8% [1][8]. - The report forecasts revenue growth of 41% and 38% for 2025 and 2026, respectively, with net profit expected to grow by 102% and 79% in the same periods [1][8]. Financial Summary - **Sales Revenue (Million RMB)**: - FY23A: 16,586 - FY24A: 20,388 - FY25E: 28,775 - FY26E: 39,631 - FY27E: 50,221 - **Year-on-Year Growth (%)**: - FY24A: 22.9% - FY25E: 41.1% - FY26E: 37.7% - FY27E: 26.7% [2] - **Gross Margin (%)**: - FY23A: 19.2% - FY24A: 22.0% - FY25E: 27.3% - FY26E: 30.5% - FY27E: 32.3% [2] - **Net Profit (Million RMB)**: - FY23A: 1,164 - FY24A: 1,738.7 - FY25E: 3,508.5 - FY26E: 6,272.3 - FY27E: 8,786.4 - **Year-on-Year Growth (%)**: - FY24A: 49.4% - FY25E: 101.8% - FY26E: 78.8% - FY27E: 40.1% [2] Market Position and Growth Drivers - The company is positioned as a core supplier in the AI infrastructure sector, benefiting from strong demand for AI servers. Its subsidiary, Shengyi Electronics, reported a record quarterly revenue of 3.1 billion RMB, reflecting a year-on-year increase of 154% and a quarter-on-quarter increase of 40% [1][8]. - The copper-clad laminate business achieved revenue of 4.9 billion RMB, with a year-on-year growth of 23%. Despite facing cost pressures from rising copper prices, the company expects price adjustments to mitigate most of the cost inflation [1][8]. Valuation Metrics - The target price of 90 RMB represents a potential upside of 40% from the current price of 64.30 RMB [3]. - The report adjusts the earnings forecast upwards to reflect the company's strong growth and improving profit margins, with a projected P/E ratio of 35 times for 2026 [1][8].

Market Overview - Global markets showed mixed performance, with the Hang Seng Index down 1.43% and the Shanghai Composite Index down 0.81%, while the US markets saw slight gains, particularly the Nasdaq which rose by 0.61% [1][3] - Southbound capital saw a net inflow of HKD 8.719 billion, with Xiaomi, Meituan, and 3SBio leading in net purchases, while Tencent and SMIC experienced significant net sales [3] Economic Insights - China's manufacturing PMI fell to its lowest level since 2008, indicating a further slowdown in economic activity for Q4, with expectations of policy easing from the central bank [4] - The real estate sector continues to face challenges, with a 16.3% year-on-year decline in sales for the top 100 property companies from January to October, and a further drop in second-hand housing prices [4] Industry Analysis - The CIS market is expected to grow by 6.4% in 2024, reaching USD 23 billion, driven by the adoption of automotive ADAS and emerging applications like smart glasses [4][5] - The competitive landscape in the CIS industry is becoming more concentrated, with leaders like Sony pushing technological boundaries while competitors like Samsung focus on high-resolution solutions [5] Company Performance - Amazon reported Q3 2025 revenue of USD 180.2 billion, a 13.4% year-on-year increase, with AWS revenue exceeding expectations [6] - Coinbase's Q3 2025 revenue grew by 59% year-on-year to USD 1.79 billion, driven by strong trading performance [6] - Zhongji Xuchuang achieved record quarterly revenue of RMB 10.2 billion, a 57% year-on-year increase, supported by strong demand for 800G optical modules [7]