reports
- Sid Rajeev
Q3 Disappoints, But Consumer Demand Shifts to Affordable Competitors
This report provides an in-depth analysis of Zepp Health Corporation's (NYSE: ZEPP) Q3-2024 performance, highlighting a 4% QoQ revenue increase but a 49% YoY decline due to lower unit sales and product discontinuations. The report examines the launch of the T-Rex 3 smartwatch, supply chain constraints, and Zepp's competitive positioning in the global smartwatch market. It also discusses management's optimistic Q4 guidance, industry trends, and the valuation discrepancy between Zepp's market cap ...
- Pierre FerraguÊ
Bible 3Q24 - Smartphones: Sluggish demand; 5G cycle resumes; iPhone mi...
Demand is sluggish, with the 2024 and 2025 outlooks implying slight unit growth after 2022 & 2023 down 13% & 4% respectively. With saturation and elongating replacement cycles, we see that as a best case. The December quarter iPhone guide missed consensus expectations, and we expect further downside. Replacement cycles are elongating, share gains in China have stalled, and recent datapoints support our view (Apple lowering iPhone 16 production plans). Semi revenues are back to secular growth, dr...
- Colin Lee
- Johnny Yum Chung Man
Xiaomi Corp (1810 HK): 3Q24: Beat across the board; expect sustained g...
Xiaomi’s 3Q24 adjusted net profit is a slight beat at Rmb6.3b, as its EV business continued to deliver positive surprises on both product mix and margins. Going forward, Xiaomi is expected to deliver robust sales growth and margin expansion across its smartphones, IoT and EV businesses on the back of competitive product launches and solid execution. Raise target price to HK$33.50 based on higher sales and margins assumptions for its EV business. Maintain BUY and keep Xiaomi as our top pick.
- Colin Lee
- Greater China Research Team
- Johnny Yum Chung Man
Greater China Daily: Tuesday, November 19, 2024
KEY HIGHLIGHTS Results Xiaomi Corp (1810 HK/BUY/HK$28.80/Target: HK$33.50) Xiaomi’s 3Q24 adjusted net profit is a slight beat at Rmb6.3b, as its EV business continued to deliver positive surprises on both product mix and margins. Going forward, Xiaomi is expected to deliver robust sales growth and margin expansion across its smartphones, IoT and EV businesses on the back of competitive product launches and solid execution. Raise target price to HK$33.50 based on higher sales and margins assump...
- Benyamin Mikael
- Chong Lee Len
- Colin Lee
- Jack Lai Yuan Khai
- Johnny Yum Chung Man
- Kampon Akaravarinchai
- Kitpon Praipaisarnkit
- Roy Chen Chengzhi
Regional Morning Meeting Notes: Tuesday, November 19, 2024
GREATER CHINA Results Xiaomi Corp (1810 HK/BUY/HK$28.80/Target: HK$33.50) 3Q24: Beat across the board; expect sustained growth across all key segments. Maintain BUY and raise target price to HK$33.50. INDONESIA Update Indo Tambangraya Megah (ITMG IJ/SELL/Rp26,850/Target: Rp25,100) Expect profit to decline by 12% yoy in 2025, fuelled by lower ASP. MALAYSIA Results CelcomDigi (CDB MK/BUY/RM3.37/Target: RM4.50) 9M24: In line; stock offers 5% yiel...
- Pierre FerraguÊ
- Pierre FerraguÊ
- Colin Lee
- Johnny Yum Chung Man
Xiaomi Corp (1810 HK): 3Q24 results preview: Share gains and premiumis...
Xiaomi will report its 3Q24 earnings later this month. We expect adjusted net profit to reach Rmb6.0b, 7% above Bloomberg consensus estimates. The earnings beat will be primarily driven by strong sales and profitability in the IoT products segment, whereas the smartphone, internet services and EV businesses will be largely in line. Maintain BUY; raise target price to HK$31.70.
- Colin Lee
- Damon Shen
- Greater China Research Team
- Jieqi Liu
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Ming San Soong
Greater China Daily: Tuesday, November 5, 2024
KEY HIGHLIGHTS Strategy Hong Kong Developers And Landlords In Oct 24, the primary property market showed signs of recovery, with a notable increase in transaction volume. Nov 24 may see a pullback in transaction volume on lower high-quality new supply. However, we still expect a 3% recovery in property prices in 4Q24-1Q25, driven by rising rental yields and supportive macro factors. On the other hand, retail landlords continue to face challenges from GBA integration. Maintain MARKET WEIGHT and...
- Adrian Loh Tzum Yung
- Benjaphol Suthwanish
- Benyamin Mikael
- Colin Lee
- Damon Shen
- Jack Goh Tooan Orng
- Jieqi Liu
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Ming San Soong
- Stevanus Juanda
- Tanaporn Visaruthaphong
Regional Morning Meeting Notes: Tuesday, November 05, 2024
GREATER CHINA Strategy Hong Kong Developers And Landlords Top developer leads strong sales rebound in Oct 24; landlords continue to face challenges from GBA integration. Sector Internet - China Encouraging monetisation visibility from adtech and LLM upgrades. Update Xiaomi Corp (1810 HK/BUY/HK$27.30/Target: HK$31.70) 3Q24 results preview: Robust growth in IoT se...
00823 LINK REAL ESTATE INVESTMENT TRUST
PTT PTT PUBLIC COMPANY LIMITED
00014 HYSAN DEVELOPMENT CO. LTD.
BSDE PT BUMI SERPONG DAMAI TBK
00700 TENCENT HOLDINGS LTD.
01997 WHARF REAL ESTATE INVESTMENT CO. LTD.
01810 XIAOMI CORP. CLASS B
MYEG MY EG SERVICES BHD
PROP PROPNEX LTD
09988 ALIBABA GROUP HOLDING LTD.
00017 NEW WORLD DEVELOPMENT CO. LTD.
BUKA BUKALAPAK.COM PT TBK
01024 KUAISHOU TECHNOLOGY CLASS B
09888 BAIDU INC
GOTO GOJEK TOKOPEDIA TBK PT
Z29 029 GROUP SE
- Pierre FerraguÊ
- Pierre FerraguÊ
Tesla: Deep dive into Chinese competition - Existential threat?
Multiple media reports make it sound like Tesla is under threat in China, from local manufacturers. Is it true? In this note we assess the competitive landscape with an analysis of the cost structure of Tesla relative to peers and its market position by segment.
- Colin Lee
- Johnny Yum Chung Man
China IT Hardware: Smartphone supply chain recovery on track; China st...
Our recent checks across the supply chain indicates high visibility of a specs upgrade trend in the coming two quarters, which can offset any potential moderation in shipment volume. For investors, while there are still concerns over iOS’ demand and the sustainability of this recovery cycle, interest in the smartphone supply chain is gradually improving thanks to recent launches which come with more exciting new features. Maintain OVERWEIGHT.
ASM PACIFIC TECHNOLOGY LIMITED
SXC SUNNY OPTICAL TECHNOLOGY (GROUP) CO. LTD.
00285 BYD ELECTRONIC (INTERNATIONAL) CO. LTD.
A2XN AAC TECHNOLOGIES HOLDINGS INC.
01478 Q TECHNOLOGY (GROUP) CO. LTD.
01810 XIAOMI CORP. CLASS B
601138 FOXCONN INDUSTRIAL INTERNET CO. LTD. CLASS A
- Colin Lee
- Johnny Yum Chung Man
China IT Hardware: Takeaways from recent company visits; maintain OVER...
We recently visited UBTech and BYDE in Shenzhen. Both companies are actively developing AI-driven products for industrial use cases, and both are starting to see real demand for AI-driven applications with small-batch shipments from clients or for internal uses. However, the development of humanoid robots and industrial GenAI will likely take a couple of years before it becomes more viable, due to reliability issues and constraints on hardware.
ASM PACIFIC TECHNOLOGY LIMITED
SXC SUNNY OPTICAL TECHNOLOGY (GROUP) CO. LTD.
00285 BYD ELECTRONIC (INTERNATIONAL) CO. LTD.
A2XN AAC TECHNOLOGIES HOLDINGS INC.
01478 Q TECHNOLOGY (GROUP) CO. LTD.
01810 XIAOMI CORP. CLASS B
601138 FOXCONN INDUSTRIAL INTERNET CO. LTD. CLASS A
- Johnny Yum Chung Man
China IT Hardware: Maintain preference for the more defensive AI-devic...
1H24 results are mixed. AI infrastructure-related businesses remain robust, with solid guidance for 2H24-25, but the market’s high expectations, mounting geopolitical tensions and a lack of long-term visibility have capped upside in the near term. As such, we continue to prefer AI-device names as we expect more meaningful developments in the edge-AI ecosystem throughout 2H24 thanks to new hardware and OS launches. Maintain OVERWEIGHT. Top picks: Xiaomi and Lenovo.
ASM PACIFIC TECHNOLOGY LIMITED
SXC SUNNY OPTICAL TECHNOLOGY (GROUP) CO. LTD.
00285 BYD ELECTRONIC (INTERNATIONAL) CO. LTD.
A2XN AAC TECHNOLOGIES HOLDINGS INC.
01478 Q TECHNOLOGY (GROUP) CO. LTD.
01810 XIAOMI CORP. CLASS B
0763 ZTE CORPORATION CLASS H
601138 FOXCONN INDUSTRIAL INTERNET CO. LTD. CLASS A
- Anas Fitri Bin Ahmad
- Heidi Mo Jinghui
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Kasemsun Koonnara
- Keith Wee Teck Keong
- Malaysia Research Team
- Posmarito Pakpahan
- Tham Mun Hon
Regional Morning Meeting Notes: Wednesday, September 11, 2024
GREATER CHINA Economics Trade Exports rebounded in August but outlook remains challenging. Sector IT Hardware Maintain preference for the more defensive AI-device plays as uncertainty remains high. Maintain OVERWEIGHT. INDONESIA Update Bank Mandiri (BMRI IJ/HOLD/Rp7,250/Target: Rp7,760) 7M24: Strong ...
LH LAND & HOUSES PUBLIC CO. LTD.
ORI ORIGIN PROPERTY
00992 LENOVO GROUP LIMITED
ASM PACIFIC TECHNOLOGY LIMITED
1023 CIMB GROUP HOLDINGS BHD
544 CSE GLOBAL LTD.
QH QUALITY HOUSES
1295 PUBLIC BANK BHD
SXC SUNNY OPTICAL TECHNOLOGY (GROUP) CO. LTD.
00285 BYD ELECTRONIC (INTERNATIONAL) CO. LTD.
A2XN AAC TECHNOLOGIES HOLDINGS INC.
SPALI SUPALAI PCL
1155 MALAYAN BANKING BHD.
BMRI PT BANK MANDIRI (PERSERO) TBK
AP AP THAILAND
01478 Q TECHNOLOGY (GROUP) CO. LTD.
01810 XIAOMI CORP. CLASS B
RHBBANK RHB BANK BHD
SOP SARAWAK OIL PALMS BERHAD
HLFG HONG LEONG FINANCIAL GROUP
KIML KIM LOONG RESOURCES BHD
LPN LPN DEVELOPMENT PCL
IOI IOI CORP BHD
KLK KUALA LUMPUR KEPONG BHD
AMM AMMB HOLDINGS BHD
ABMB ALLIANCE BANK MALAYSIA BHD
HLBANK HONG LEONG BANK BHD
0763 ZTE CORPORATION CLASS H
GENP GENTING PLANTATIONS BHD
ABANK AFFIN BANK BHD
PSH PRUKSA HOLDING PCL
HAPL HAP SENG PLANTATIONS HOLDINGS BHD
601138 FOXCONN INDUSTRIAL INTERNET CO. LTD. CLASS A
123F 123FAHRSCHULE SE
BCOW 1895 BANCORP OF WISCONSIN INC
BIMB BANK ISLAM MALAYSIA BHD
Z29 029 GROUP SE
SDG SD GUTHRIE BHD
- Blair Levin
- Dan Salmon
NSR Tech Policy: Google and the Antitrust State of Play
Last week and this week there was and will be significant activity in two antitrust cases against Google. In this note, we provide an update of what happened, what will happen, various outcomes investors should be thinking about and other cases involving Google and Antitrust.
- Jonathan Chaplin
- Pierre FerraguÊ
- William Nestuk
PSA Industrials / Capital Goods: Fujikura (5803 JT) Riding the AI Them...
Fujikura’s share price performance has been impressive, surging three-old YTD, boosted by AI-related data centre demand. Analyst William Nestuk reviews the FY24 Q1 performance, flags where there is upside but also notes capacity contraints.
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