reports
- Colin Lee
- Ejann Hiew
- Johnny Yum Chung Man
Q Technology Group (1478 HK) - 1H25 Profit Alert: Strong Earnings Grow...
1H25 Profit Alert: Strong Earnings Growth Thanks To Product Mix Improvements In Q Tech’s profit alert overnight, it expected net profit to grow 150-180% yoy to Rmb288m-323m, surpassing our and market expectations. The strong results were attributed to increased sales volume for the FRM business and product mix improvements across CCM and FRM. This also indicates that the spec upgrades for smartphones across the mid-range and mid-to-high-end markets are better-thanexpected, leading to ASP/margin ...
- Colin Lee
- Johnny Yum Chung Man
China IT Hardware: AI devices and AI robots to remain as key investmen...
The IT hardware sector registered corrections in share price in the past two weeks as market realised that contribution from the exciting GenAI-driven applications are unlikely to be meaningful in 2025. Nevertheless, the potential cost savings and efficiency boost facilitated by AI are clear and we expect investments into applications development to remain high. Maintain OVERWEIGHT and expect downstream AI applications to remain a key investment focus through 2025.
00992 LENOVO GROUP LIMITED
ASM PACIFIC TECHNOLOGY LIMITED
SXC SUNNY OPTICAL TECHNOLOGY (GROUP) CO. LTD.
00285 BYD ELECTRONIC (INTERNATIONAL) CO. LTD.
A2XN AAC TECHNOLOGIES HOLDINGS INC.
300124 SHENZHEN INOVANCE TECHNOLOGY CO. LTD CLASS A
002472 ZHEJIANG SHUANGHUAN DRIVELINE (A)
01478 Q TECHNOLOGY (GROUP) CO. LTD.
01810 XIAOMI CORP. CLASS B
0763 ZTE CORPORATION CLASS H
2747 ESTUN AUTOMATION
601138 FOXCONN INDUSTRIAL INTERNET CO. LTD. CLASS A
- Colin Lee
- Johnny Yum Chung Man
Q Technology Group (1478 HK): 2024: Earnings in line; growth opportuni...
Q Tech’s 2024 earnings soared 241% yoy to Rmb241m, in line with estimates and the midpoint of its profit alert range. The strong performance was due to ASP and margin expansion across both the CCM and FRM businesses. In particular, FRM segment margins turned positive for the first time since 2021, thanks to an improved product mix. With a trifurcation of growth drivers in the smartphones, automotive and IoT spheres, we are upgrading to BUY with a higher target price of HK$10.00.
- Claire Wang Kelai
- Colin Lee
- Damon Shen
- Greater China Research Team
- Jieqi Liu
- Johnny Yum Chung Man
- Tham Mun Hon
- Ziv Ang Sze Champ
Greater China Daily: Tuesday, March 18, 2025
KEY HIGHLIGHTS Economics Economic Activity Industrial production growth remained resilient in 2M25, rising 5.9% yoy, beating expectations of 5.3% yoy. FAI growth jumped to 4.1% yoy (+2.0ppt), with property FAI growth improving from -10.6% yoy in Dec 24 to -9.8% yoy in 2M25. Retail sales growth also climbed to 4.0% yoy, beating expectations. Overall, 2M25’s data is market positive. Sector Property According to the latest NBS data, national sales were stronger than expected but new starts rem...
- Claire Wang Kelai
- Colin Lee
- Damon Shen
- Heidi Mo Jinghui
- Jieqi Liu
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Posmarito Pakpahan
- Tanaporn Visaruthaphong
- Tham Mun Hon
- Ziv Ang Sze Champ
Regional Morning Notes - Tuesday, March 18, 2025
GREATER CHINA Economics Economic Activity: Stronger-than-expected 2M25 data amid property sector challenges. Sector Property: Faster-than-expected destocking progress; higher 2025 national residential sales forecast. Initiate Coverage Kerry Properties (683 HK/BUY/HK$18.28/Target: HK$21.70): Luxury home expert; mega investment in Shanghai CBD bearing fruit from 2025. Results China Resources Building Materials Tech (1313 HK/BUY/HK$1.88/Target: HK$2.30): 2024: In line; gross margin expands to 16.5%...
- Colin Lee
- Johnny Yum Chung Man
China IT Hardware: Solid 2024 shipment data; sustained growth in 2025 ...
2024 shipment data has remained solid for both Sunny and Q Tech, with significant improvements in profitability on the back of specs upgrades and better product mix. In 2025, we expect a low-to-mid single-digit shipment growth for both companies, and a sustained product mix improvement as the specs upgrade trend extends from premium phones to lower-end (Rmb2,000-4,000) products. Maintain OVERWEIGHT.
- Anas Fitri Bin Ahmad
- Benyamin Mikael
- Colin Lee
- Johnny Yum Chung Man
- Jonathan Koh
- Keith Wee Teck Keong
- Kitpon Praipaisarnkit
- Lester Siew
- Thailand Research Team
- Thanawat Thangchadakorn
Regional Morning Meeting Notes: Monday, January 13, 2025
GREATER CHINA Sector IT Hardware Solid 2024 Shipment Data; recovery in 2025 remains intact. Maintain OVERWEIGHT . INDONESIA Small/Mid Caps Highlights Bukit Asam (PTBA IJ/NOT RATED/Rp2,690) Strong production outlook towards 2029. MALAYSIA Sector Banking Malaysian banks are likely to take a cautious and gradual approach to capital managemen...
CK CH. KARNCHANG PCL
1023 CIMB GROUP HOLDINGS BHD
KTB KRUNG THAI BANK PUBLIC CO. LTD.
2488 ALLIANCE BANK MALAYSIA BHD.
AMATA AMATA CORP
SXC SUNNY OPTICAL TECHNOLOGY (GROUP) CO. LTD.
PTBA PT BUKIT ASAM TBK
KBANK KASIKORNBANK PUBLIC CO. LTD.
01478 Q TECHNOLOGY (GROUP) CO. LTD.
TRUE TRUE CORP. PUBLIC CO. LTD.
PBBANK PUBLIC BANK BERHAD
SAWAD SRISAWAD CORPORATION PUBLIC COMPANY LTD
AOT AIRPORTS OF THAILAND PUBLIC CO. LTD.
RHBBANK RHB BANK BHD
SOP SARAWAK OIL PALMS BERHAD
HLFG HONG LEONG FINANCIAL GROUP
MTC MUANGTHAI CAPITAL PCL
KIML KIM LOONG RESOURCES BHD
KTB-R KRUNG THAI BANK PCL NVDR
IOI IOI CORP BHD
KLK KUALA LUMPUR KEPONG BHD
AMM AMMB HOLDINGS BHD
CPALL TB CP ALL
HLBK HONG LEONG BANK BERHAD
BNII PT BANK MAYBANK INDONESIA TBK
GENP GENTING PLANTATIONS BHD
ABANK AFFIN BANK BHD
HAPL HAP SENG PLANTATIONS HOLDINGS BHD
OXMU PRIME US REIT
TIDLOR NGERN TID LOR PCL
KORE KEPPEL PACIFIC OAK US REIT
BCOW 1895 BANCORP OF WISCONSIN INC
BIMB BANK ISLAM MALAYSIA BHD
Z29 029 GROUP SE
SDG SD GUTHRIE BHD
STECON STECON GROUP PUBLIC COMPANY LIMITED
- 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
- Johnny Yum Chung Man
Q Technology Group (1478 HK): 1H24: Earnings in line; handset business...
Q Tech’s 1H24 earnings surged 453.9% yoy to Rmb115m, driven by a low base, and a solid recovery in shipment and margins for both the CCM and FRM businesses. Going forward, despite limited visibility, Q Tech remains confident about delivering yoy shipment growth and margin expansion, on the back of demand recovery, robust growth in non-handset products, specs upgrades, and share gains in the high-end segment. Maintain BUY and lower target price to HK$6.00.
- Anas Fitri Bin Ahmad
- Benjaphol Suthwanish
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Kampon Akaravarinchai
- Malaysia Research Team
- Ming San Soong
- Paula Ruth
- Tanaporn Visaruthaphong
- Thanawat Thangchadakorn
Regional Morning Meeting Notes: Tuesday, August 13, 2024
GREATER CHINA Results KE Holdings Inc (2423 HK/BUY/HK$35.85/Target: HK$53.00) 2Q24: Solid earnings beat; new home recovery and pressured margins in 3Q24. Q Technology Group (1478 HK/BUY/HK$4.05/Target: HK$6.00) 1H24: Earnings at midpoint of profit alert; handset business recovering gradually. INDONESIA Results Dayamitra Telekomunikasi (MTEL IJ/BUY/Rp675/Target: Rp790) 2Q24: Core profit up 29% yoy; accelerating the expansion of fibre optic n...
01478 Q TECHNOLOGY (GROUP) CO. LTD.
SOP SARAWAK OIL PALMS BERHAD
KIML KIM LOONG RESOURCES BHD
IOI IOI CORP BHD
KLK KUALA LUMPUR KEPONG BHD
GENP GENTING PLANTATIONS BHD
TGIF 1933 INDUSTRIES
HAPL HAP SENG PLANTATIONS HOLDINGS BHD
WHA TB WHA CORP PCL
FRKN FRENCKEN GROUP LTD
TIDLOR NGERN TID LOR PCL
123F 123FAHRSCHULE SE
02423 KE HOLDINGS INC.
MTEL IJ PT DAYAMITRA TELEKOMUNIKASI
Z29 029 GROUP SE
BTG BETAGRO PUBLIC COMPANY LIMITED
1737144D TB BETAGRO GROUP
SDG SD GUTHRIE BHD
- Greater China Research Team
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Ming San Soong
Greater China Daily: Tuesday, August 13, 2024
KEY HIGHLIGHTS Results KE Holdings Inc (2423 HK/BUY/HK$35.85/Target: HK$53.00) Beike’s 2Q24 results beat expectations. 2Q24 revenue grew 20% yoy to Rmb23.4b, 8.5% above consensus estimates and better than the previously guided 10% yoy. Non-GAAP net profit rose 13% yoy to Rmb2.7b due to stringent cost control, 48% above consensus estimates. Non-GAAP net margin inched down 1ppt yoy to 11.5% in 2Q24. Beike guided for 3Q24 revenue to remain intact at Rmb22.5b-24.0b, up 26-35% yoy, in line with c...
- Greater China Research Team
- Johnny Yum Chung Man
Greater China Daily: Monday, July 22, 2024
KEY HIGHLIGHTS Sector IT Hardware: AI investments to remain elevated but edge AI plays are more attractive. Maintain OVERWEIGHT. We are shifting our preference to edge AI picks, as we see an improved visibility on the recovery in global smartphone and PC shipment in 2H24. With this, coupled with the pick-up in AI device shipment towards year-end and a more undemanding valuation, we expect edge AI plays to outperform the AI infrastructure supply chain, which is now under pressure from profit-tak...
ASM PACIFIC TECHNOLOGY LIMITED
000063 ZTE CORPORATION CLASS A
SXC SUNNY OPTICAL TECHNOLOGY (GROUP) CO. LTD.
00285 BYD ELECTRONIC (INTERNATIONAL) CO. LTD.
A2XN AAC TECHNOLOGIES HOLDINGS INC.
01478 Q TECHNOLOGY (GROUP) CO. LTD.
601138 FOXCONN INDUSTRIAL INTERNET CO. LTD. CLASS A
XIAOMI XIAOMI CORP
- Johnny Yum Chung Man
China IT Hardware: AI Investments To Remain Elevated But Edge AI Plays...
We are shifting our preference to edge AI picks, as we see an improved visibility on the recovery in global smartphone and PC shipment in 2H24. With this, coupled with the pick-up in AI device shipment towards year-end and a more undemanding valuation, we expect edge AI plays to outperform the AI infrastructure supply chain, which is now under pressure from profit-taking, and mounting geopolitical risks. Maintain OVERWEIGHT. Top picks: Lenovo and BYDE.
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
BCOW 1895 BANCORP OF WISCONSIN INC
- Johnny Yum Chung Man
Q Technology Group (1478 HK): 1H24 Profit Alert: Robust earnings growt...
Q Tech announced a profit alert overnight, expecting net profit to grow 400-500% yoy to Rmb108m-130m, surpassing our and market expectations. The strong results were likely driven by solid shipment numbers and a better-than-expected profit mix. This likely indicates that the handset value chain is well on track for a recovery in both shipment and profitability. Upgrade Q Tech to BUY and raise target price to HK$6.50.
- Johnny Yum Chung Man
Q Technology Group (1478 HK): 2023: Earnings miss due to non core item...
Q Tech’s 2023 earnings plunged 52% yoy to Rmb82m, below its profit warning range of a 35-45% yoy decline. The decline was due to poor global smartphone demand in 2023 and unfavourable forex rates, while the disappointment was due to non-core items. Nevertheless, its margins still outperformed its peers in 2H23, and the worst is likely over, as top- and bottom lines should resume growth in 2024. Maintain HOLD for now and keep target price at HK$3.30.
- Carol Dou Xiao Qin
- Ceilica Su Rui
- Greater China Research Team
- Jo Yee Ng
- Johnny Yum Chung Man
- Shirley Wang Xueyi
- Stella Guo Yuting
- Sunny Chen
- Ziv Ang Sze Champ
Greater China Daily: Tuesday, March 26, 2024
KEY HIGHLIGHTS Results ENN Energy Holdings (2688 HK/HOLD/HK$61.45/Target: HK$69.21) 2023: In line; challenging path ahead. Downgrade to HOLD. Jiumaojiu International Holdings (9922 HK/BUY/HK$5.60/Target: HK$8.20) 2023: Results in line; store opening and SSSG to decelerate in 2024. Q Technology Group (1478 HK/HOLD/ HK$3.03/Target: HK$3.30) 2023: Earnings miss due to non core items, but the worst is over. Sinopharm Group (1099 HK/BUY/HK$20.40/Target: HK$25.00) 2023: Results in line; expe...
- Carol Dou Xiao Qin
- Ceilica Su Rui
- Chong Lee Len
- Heidi Mo Jinghui
- Jo Yee Ng
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Kampon Akaravarinchai
- Kong Ho Meng
- Paula Ruth
- Philip Wong
- Shirley Wang Xueyi
- Stella Guo Yuting
- Sunny Chen
- Ziv Ang Sze Champ
Regional Morning Notes - Tuesday, March 26, 2024
GREATER CHINA Results ENN Energy Holdings (2688 HK/HOLD/HK$61.45/Target: HK$69.21): 2023: In line; challenging path ahead. Downgrade to HOLD. Jiumaojiu International Holdings (9922 HK/BUY/HK$5.60/Target: HK$8.20): 2023: Results in line; store opening and SSSG to decelerate in 2024. Q Technology Group (1478 HK/HOLD/ HK$3.03/Target: HK$3.30): 2023: Earnings miss due to non core items, but the worst is over. Sinopharm Group (1099 HK/BUY/HK$20.40/Target: HK$25.00): 2023: Results in line; expecting s...
XGH ENN ENERGY HOLDINGS LIMITED
5218 SAPURA ENERGY BHD
X2S SINOPHARM GROUP CO. LTD. CLASS H
01478 Q TECHNOLOGY (GROUP) CO. LTD.
2899 ZIJIN MINING GROUP CO. LTD. CLASS H
PTI TELEKOMUNIKASI INDONESIA TBK PT (ADR)
SSG SHENG SIONG GROUP LTD
GMB GAS MALAYSIA BHD
MNHB MYNEWS HOLDINGS BHD
09922 JIUMAOJIU INTERNATIONAL HOLDINGS LTD.
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