CMB International Global Markets | Equity Research | Company Update PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG: RESP CMBR OR http://www.cmbi.com.hk1 PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE 2 Taobao and Tmall Group (38.5% of 4QFY24 revenue) In 4QFY24, revenue generated from Alibaba International Digital Commerce Group (AIDC) was RMB27.4bn, up 45.1% YoY, among which international commerce retail revenue was up ...

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M N 14 May 2024 CMB International Global Markets | Equity Research | Company Update Huya (HUYA US) Fundamentals to bottom out Target Price US$6.8 Huya’s 1Q24 results beat on margin, with topline/bottom line 1%/84% (Previous TP US$6.8) above consensus. Looking into 2Q24E, we expect revenue to achieve 5% Up/Downside 44.5% QoQ growth, in which livestreaming would bottom out and others revenue Current Price US$4.73 +25% OoQ. We are positive on Huya’s game-related business monetization and expect upside from mul ...

h 股 c r 票 a e s e R 研 y 究 tiu [ CTa ob mle_ pT ait nle y] Report: FIT Hon Teng (06088 HK) Gin Yu 余劲同 q E (852)2509 2113 公司报告： 鸿腾精密 (06088 HK) gin.yu@gtjas.com.hk 13 May 2024 1[T Qab 2le 0_S 2u 4m m Ra ery s] ults Were in Line with Expectations; 3+3 Strategy to Bring Continuous Increment, "Buy" tr 公 o p e 司 R  We maintain the investment rating as "Buy" and set TP to HK$2.42. We y [RTaabtlien_gR:a nk] Buy 报 n a forecast 2024-2026 EPS to be US$0.025/ US$0.034/ US$0.042, Maintained 告 p m respectively. Consider ...

M N 14 May 2024 CMB International Global Markets | Equity Research | Company Update TME (TME US) 1Q24 beat on strong music business growth and GPM expansion Target Price US$16.00 TME reported 1Q24 results: total revenue declined by 3% YoY to RMB6.77bn, (Previous TP US$12.50) beating consensus estimate by 3% on strong online music revenue growth; non-IFRS Up/Downside 19.9% net income grew by 21% YoY to RMB1.70bn, 7% ahead of consensus estimate, Current Price US$13.34 primarily attributable to the solid GPM e ...

M N 14 May 2024 CMB International Global Markets | Equity Research | Company Update SANY International (631 HK) Expect an unexciting set of results in 1Q24E, potential recovery in 2H24E SANYI is set to report 1Q24E financial data on 16 May (this Thu). We forecast Target Price HK$8.00 SANYI to deliver a ~15% YoY decrease in net profit from a high base, due to (1) (Previous TP HK$8.00) miners’ disciplined capex as a result of the decline in domestic coal production Up/Downside 24.8% in 1Q24; (2) keen competit ...

M N 13 May 2024 CMB International Global Markets | Equity Research | Company Update GigaCloud (GCT US) Embracing continued outperformance Target Price US$46.00 GCT delivered a solid start in 1Q24, with strong topline and guidance. 1Q24 Up/Downside 23.2% net margin was temporarily diluted by new fulfilment centers expenses Current Price US$37.35 and FX fluctuation, but will gradually pick up in 2H24E (with improving warehouse utilization and annual freight contracts), in our view. We are China Entertainment ...

M N 13 May 2024 CMB International Global Markets | Equity Research | Company Update Xtep (1368 HK) Huge boost in short run growth with high yield Overall, we find the arrangement accretive (thus revising up FY24E-26E NP by Target Price HK$7.63 2% to 5%) for Xtep in the short run and turn more positive on its near-term (Previous TP HK$6.31) outlook. With its rather undemanding valuation (10x FY24E P/E and 14% yield), Up/Downside 40.4% we maintain BUY with a new TP of HK$7.63, based on 14x FY24E P/E. Current ...

Investment Rating - FIT Hon Teng maintains a BUY rating with a new target price of HK$2 40 based on 11x FY24E P/E [2][13] Core View - FIT Hon Teng's 1Q24 results were in line with expectations driven by recovery in PC/server markets solid Voltaira business and strong Networking segment [2] - The company is expected to benefit from AirPods ramp-up integration of Voltaira auto electronics business and AI server/networking products in 2H24E [2] - Revenue and net profit are forecasted to rebound 12% and 52% YoY respectively in FY24E [2] - The stock's recent correction is attributed to profit-taking after a 101% rally in the past three months [2] Financial Performance - 1Q24 revenue reached US$965mn a 12% YoY increase while net profit was US$10 2mn compared to a loss of US$9 3mn in 1Q23 [2] - Gross profit margin improved by 450bps YoY to 20 3% due to a better product mix [2] - EV segment revenue surged 205% YoY driven by the Voltaira merger while Computing and Networking segments grew 6% and 9% YoY respectively [2] - FY24E revenue is projected at US$4 715mn with a 12 4% YoY growth and net profit is expected to reach US$199 6mn a 51 4% YoY increase [3][9] Segment Analysis - EV Mobility segment revenue jumped 205% YoY in 1Q24 due to the Voltaira merger [7] - Networking segment grew 9% YoY driven by AI demand and new CPU-related products [2] - Computing segment increased 6% YoY supported by market recovery [2] AI Server Opportunity - FIT Hon Teng expects US$500-1 000 content value per compute tray for AI servers in FY24E [2] - AI revenue share is projected to be 7-9% in FY24E up from 1% in FY23 [2] Valuation - The stock is trading at 8 9x/6 7x FY24/25E P/E which is considered attractive given multiple growth drivers [2][13] - The new target price of HK$2 40 is based on 11x FY24E P/E reflecting accelerated growth and profitability recovery [13] Growth Drivers - Key catalysts include AirPods shipments AI server product updates and continued revenue upside from auto business consolidation [13] - The company's "3+3 Strategy" is expected to drive accelerated growth and profitability recovery [13]

M N 10 May 2024 CMB International Global Markets | Equity Research | Company Update BeiGene (BGNE US) Consistently exceeding expectations  Product sales continued beating expectation. In 1Q24, BeiGene recorded total Target Price US$269.73 product sales of US$747mn (+18% QoQ, +82% YoY), representing 25.7% of our (Previous TP US$248.52) previous FY24 estimate. Zanubrutinib (zanu) maintained strong sales momentum, Up/Downside 59.9% with sales increasing 18% QoQ or 131% YoY to US$489mn. The strong Current Pric ...