What if the EV slowdown were not a headwind on auto semi growth?

EV adoption is slowing in the West, but to the benefit of hybrids. Is this well understood by those investing in auto semi stocks?

Initial FY:25 Guide Could Miss Given Switch 2 Silence; PT to ¥8,750

Midea Group (000333 CH): 1Q24: Core net profit grew 20% yoy; great eff...

In 1Q24, Midea’s smart home solutions business recorded revenue growth of 11% yoy, with overseas business expansion making great efforts through new channels and in new markets. We are in favour of Midea’s overseas expansion achievements, and we believe the still robust AC production planning data for 2Q24 will boost the sentiment of AC makers. Maintain BUY with an unchanged target price of Rmb76.20.

Greater China Daily: Tuesday, April 30, 2024

KEY HIGHLIGHTS Results China Merchants Bank (3968 HK/BUY/HK$34.95/Target: HK$44.00) CMB’s 1Q24 earnings were slightly below our expectations due to disappointing fee income and higher cost ratio, partly offset by strong trading gains and lower credit impairment. 1Q24 NIM performance beat our expectation with a 2bp qoq decline and we expect it to hit its bottom by 2024 if there is another round of deposit rate cuts. Besides that, asset quality remains largely stable. Maintain BUY. Target price:...

Infineon: Near-term downside priced in. Attractively valued for the lo...

As a follow-up to the work we published two weeks ago, which called for a downcycle in the auto semiconductor market, we review our expectations for Infineon. In summary, we expect Infineon to outperform the broader market, driven by a favorable exposure to xEVs and microcontroller share gains. We still see downside to expectations over the next 12 months, but from a stock perspective, we find the company attractively valued ahead of another leg of strong secular growth beyond this year.