reports
- Colin Lee
- Johnny Yum Chung Man
ZTE Corporation (763 HK): 1Q25: Solid revenue growth offset by mix det...
ZTE’s 1Q25 revenue beat the street’s expectations, with revenue growing 7.8% yoy. However, as the revenue growth was driven by the low-margin AI server business, product mix and hence margins deteriorated significantly, and net profit ended up largely in line. We expect contribution from the AI server business to remain elevated in the next few quarters, which will likely result in gross margin pressure in the near term. Maintain HOLD; trim target price to HK$24.30.
- Bella Lu Yifei
- Carol Dou Xiao Qin
- Colin Lee
- Greater China Research Team
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
- Sunny Chen
Greater China Daily: Thursday, April 24, 2025
KEY HIGHLIGHTS Results Guangzhou Tinci Materials Technology (002709 CH/BUY/Rmb17.19/Target: Rmb39.60) Tinci’s 1Q25 net profit came in above estimates at Rmb150m (+30.8% yoy/+2.7% qoq), due to higher-than-expected sales volume and ASP. Going forward, Tinci will sustain earnings growth through cost control measures, product upgrading and global capacity expansion. We raise our 2025-26 net profit forecasts by 119%/150% to Rmb887m/ Rmb967m respectively, and introduce our 2027 net profit forecast o...
- Benjaphol Suthwanish
- Benyamin Mikael
- Carol Dou Xiao Qin
- Chong Lee Len
- Colin Lee
- Jo Yee Ng
- Johnny Yum Chung Man
- Jonathan Koh
- Julia Pan Mengyao
- Kampon Akaravarinchai
- Ken Lee
- Ming San Soong
- Sunny Chen
- Tanaporn Visaruthaphong
Regional Morning Meeting Notes: Thursday, April 24, 2025
GREATER CHINA Results Guangzhou Tinci Materials Technology (002709 CH/BUY/Rmb17.19/Target: Rmb39.60) 1Q25: Earnings beat on revenue; raise target price from Rmb18.00 to Rmb39.60. Upgrade to BUY. New Oriental Education & Technology Group (EDU US/BUY/US$43.38/Target: US$60.00) 3QFY25: Earnings miss; subdued top-line but solid margin outlook in 4QFY25. Ping An Healthcare and Technology Company (1833 HK/BUY/HK$7.15/Target:HK$11.00) 1Q25: Results beat; maintains double-digit revenue growth target for...
N1U NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. SPONSORED ADR
TOP THAI OIL PUBLIC CO. LTD.
INCO VALE INDONESIA
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
KREIT KEPPEL REIT
IGBREIT IGB REAL ESTATE INVESTMENT T
0763 ZTE CORPORATION CLASS H
1833 PING AN HEALTHCARE AND TECHNOLOGY COMPANY LIMITED
WHA TB WHA CORP PCL
PEKAT PEKAT GROUP BHD
- 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
ZTE Corporation (763 HK): 4Q24: Results miss; cost control remains the...
ZTE’s 4Q24 results were again below our and market expectations, with revenue declining 10.3% yoy and earnings plunging 65.1% yoy. While the growth for overseas and G&C businesses remain robust, margins have taken a hit, especially for the G&C business, primarily due to a continued shift in product mix. Moving forward, we expect domestic telco capex to remain weak, while ZTE’s opex is likely to remain resilient. Maintain HOLD but raise target price to HK$26.50.
- Adrian Loh Tzum Yung
- Benjaphol Suthwanish
- Chong Lee Len
- Claire Wang Kelai
- Colin Lee
- Damon Shen
- Ejann Hiew
- Heidi Mo Jinghui
- Jieqi Liu
- John Cheong Ming Chern
- Johnny Yum
- Johnny Yum Chung Man
- Kampon Akaravarinchai
- Kasemsun Koonnara
- Keith Wee Teck Keong
- Lester Siew
- Llelleythan Tan Tan
- Philip Wong
- Roy Chen Chengzhi
- Shirley Wang Xueyi
- Stella Guo Yuting
- Tanaporn Visaruthaphong
- Tham Mun Hon
- Ziv Ang Sze Champ
Regional Morning Notes - Monday, March 03, 2025
GREATER CHINA Economics PMI: Uptick in February. Sector Macau Gaming: Feb 25 GGR beat thanks to tail-end effect post CNY; switch top pick to Galaxy. Results New World Development (17 HK/HOLD/HK$4.82/Target: HK$4.45): 1HFY25: Net loss in line with profit warning and primarily caused by inventory impairment; refinancing progress to be the key. Xinyi Solar Holdings (968 HK/HOLD/HK$3.29/Target: HK$3.60): 2024: Below expectations; industry coordination and production discipline crucial to restore mar...
1023 CIMB GROUP HOLDINGS BHD
0968 XINYI SOLAR HOLDINGS LTD.
PLANB PLAN B MEDIA
AWX AEM HOLDINGS
C52 COMFORTDELGRO CORPORATION LIMITED
5347 TENAGA NASIONAL BHD
PTTGC PTT GLOBAL CHEMICAL PUBLIC COMPANY LTD
CPN CENTRAL PATTANA PUBLIC CO. LTD.
BCH BANGKOK CHAIN HOSPITAL PCL
KLK KUALA LUMPUR KEPONG BHD
0763 ZTE CORPORATION CLASS H
FRKN FRENCKEN GROUP LTD
00017 NEW WORLD DEVELOPMENT CO. LTD.
9CI CAPITALAND INVESTMENT LTD
FFB FARM FRESH BHD
- Claire Wang Kelai
- Colin Lee
- Damon Shen
- Ejann Hiew
- Greater China Research Team
- Jieqi Liu
- Johnny Yum Chung Man
- Roy Chen Chengzhi
- Shirley Wang Xueyi
- Stella Guo Yuting
- Tham Mun Hon
- Ziv Ang Sze Champ
Greater China Daily: Monday, March 3, 2025
KEY HIGHLIGHTS Economics PMI Manufacturing PMI rebounded to expansionary territory at 50.2 (+1.1pt mom) while non-manufacturing PMI stabilised at 50.4 (+0.2pt mom). Construction activity improved to 52.7 (+3.4pt mom), offsetting weakness in services at 50.0 (-0.3pt mom). Large enterprises led the recovery at 52.5 (+2.6pt mom), while small and medium-sized firms continued to struggle as the former are usually the first to benefit from government-led economic projects. Sector Macau Gaming Maca...
- Colin Lee
- Johnny Yum Chung Man
ZTE Corporation (763 HK): 3Q24: Results miss, expect stringent cost co...
Dragged by a sluggish domestic carrier network business, ZTE’s 3Q24 results were below our/market expectations, with revenue registering a surprising 3.9% yoy fall despite a low base. On the bright side, the growth of overseas and G&C businesses remained solid, while margins and opex remained resilient. Going forward, we expect domestic telco spending to remain weak through 2025, and as such cost controls will likely provide key support to earnings growth through 2025. Downgrade to HOLD with a t...
- Colin Lee
- Greater China Research Team
- Johnny Yum Chung Man
- Kenny Yong Hui Lim
- Shirley Wang Xueyi
- Stella Guo Yuting
- Ziv Ang Sze Champ
Greater China Daily: Tuesday, October 22, 2024
KEY HIGHLIGHTS Results Ping An Insurance Group (2318 HK/BUY/HK$49.05/Target: HK$69.00) Ping An delivered robust 3Q24 results with OPAT rising 22% yoy, driven by a strong performance in the life and P&C segments. The asset management business turned red due to impairment but reversal is possible if China’s economy improves further. NBV grew 1.1x in 3Q24, mainly supported by strong life premium growth and margin expansion. Although share price rose 30% mom, the strong earnings turnaround could...
- Colin Lee
- Heidi Mo Jinghui
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Kenny Yong Hui Lim
- Kong Ho Meng
- Paula Ruth
- Philip Wong
- Shirley Wang Xueyi
- Stella Guo Yuting
- Thanawat Thangchadakorn
- Ziv Ang Sze Champ
Regional Morning Meeting Notes: Tuesday, October 22, 2024
GREATER CHINA Results Ping An Insurance Group (2318 HK/BUY/HK$49.05/Target: HK$69.00) 3Q24: Bountiful harvest after prolonged dry spell. ZTE Corporation (763 HK/HOLD/HK$21.05/Target: HK$19.00) 3Q24: Results miss, expect stringent cost controls before next capex cycle. Downgrade to HOLD. Zijin Mining (2899 HK/BUY/HK$17.40/Target: HK$21.90) 3Q24: In line; mining entities’ gross margin down 1.2ppt qoq on lower copper ASP. Update Jiumaojiu In...
KBANK KASIKORNBANK PUBLIC CO. LTD.
ERAA ERAJAYA SWASEMBADA
2318 PING AN INSURANCE (GROUP) COMPANY OF CHINA LTD. CLASS H
2899 ZIJIN MINING GROUP CO. LTD. CLASS H
WPRTS WESTPORTS HOLDINGS BHD
0763 ZTE CORPORATION CLASS H
TXG 10X GENOMICS INC CLASS A
CVL CIVMEC
09922 JIUMAOJIU INTERNATIONAL HOLDINGS LTD.
SCB SCB X PUBLIC COMPANY LIMITED
0303 ALPHA IVF GROUP
- 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
ZTE Corporation (763 HK): 2Q24: Product mix deterioration offset by co...
ZTE’s 2Q24 results were mixed, with revenue and gross margins missing expectations due to a worse-than-expected carrier network business. This was, however, offset by better-than-expected operating expenses and higher non-core income. Going forward, we expect the decline in domestic telco capex to continue weighing down on revenue growth, but the recovery in corporate spending in China may partially offset the sluggish telco business. Maintain BUY. Cut target price to HK$19.00.
- Greater China Research Team
- Jo Yee Ng
- Johnny Yum Chung Man
- Kenny Yong Hui Lim
- Shirley Wang Xueyi
- Stella Guo Yuting
Greater China Daily: Monday, August 19, 2024
KEY HIGHLIGHTS Sector Banking The PBOC reiterated it will reduce its focus on quantitative targets and elevate the importance of interest rates in its quarterly report. According to NAFR, Chinese banks delivered a muted earnings growth in 2Q24 due to a slowdown in balance sheet growth, but NIM and asset quality pressures are easing. Upside surprise could come from non-interest income due to a bullish bond market. Maintain OVERWEIGHT. Top pick: CMB. Results Li Ning (2331 HK/BUY/HK$13.10/T...
- Adrian Loh Tzum Yung
- Benjaphol Suthwanish
- Jo Yee Ng
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Kampon Akaravarinchai
- Kenny Yong Hui Lim
- Llelleythan Tan Tan
- Shirley Wang Xueyi
- Stella Guo Yuting
- Stevanus Juanda
- Tanaporn Visaruthaphong
- Thanawat Thangchadakorn
- Wei Xiang Ku
Regional Morning Notes - Monday, August 19, 2024
GREATER CHINA Sector Banking: 2Q24 results preview: Shifting away from volume to price. Results Li Ning (2331 HK/BUY/HK$13.10/Target: HK$19.90): 1H24: Better-than-expected results; trim revenue guidance but maintain margin expectation for 2024. Upgrade to BUY. ZTE Corporation (763 HK/BUY/HK$16.76/Target: HK$19.00): 2Q24: Product mix deterioration offset by cost controls. INDONESIA Update Bukalapak.com (BUKA IJ/BUY/Rp120/Target: Rp270): Sustainable positive adjusted EBITDA. MALAYSIA Small/Mid C...
PTT PTT PUBLIC COMPANY LIMITED
02331 LI NING COMPANY LIMITED
COM7 COM7
CENT CENTRAL GARDEN & PET COMPANY
SAWAD SRISAWAD CORPORATION PUBLIC COMPANY LTD
SPOST SINGAPORE POST LTD
0763 ZTE CORPORATION CLASS H
FRKN FRENCKEN GROUP LTD
BUKA BUKALAPAK.COM PT TBK
ITMAX ITMAX SYSTEMS BHD
- Johnny Yum Chung Man
ZTE Corporation (763 HK): Stronger Overseas Growth In 1Q24 Offsets Slo...
ZTE registered a mild 3.7% yoy net profit growth in 1Q24, in line with estimates. The growth was primarily driven by the overseas, G&C and consumer businesses, coupled with excellent control over operating expenses. Going forward, we expect ZTE to continue benefitting from China’s cloud infrastructure buildout and digitalisation efforts, but near-term headwinds from declining telco capex and geopolitical tensions will likely weigh on its valuation. Maintain BUY and trim target price to HK$21.00.
- Johnny Yum Chung Man
ZTE (763 HK): 4Q23: Revenue beat, but earnings missed on product mix a...
ZTE’s 4Q23 revenue exceeded expectations thanks to a better-than-expected performance of its carrier networking business, but margins missed due to a belowexpectation product mix and higher opex. This resulted in net profit coming in below our expectations. Going forward, we expect margins to remain elevated thanks to the optimisation of cost mix, and we see 5GA and investment into AI and digitalisation as potential growth drivers. Maintain BUY. Target: HK$28.40.
- Ceilica Su Rui
- Damon Shen
- Greater China Research Team
- Jieqi Liu
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Ming San Soong
- Tham Mun Hon
Greater China Daily: Monday, March 11, 2024
KEY HIGHLIGHTS Economics Inflation Feb 24 CPI up 0.7% on CNY seasonality. Sector Internet Looming US import ban amid encouraging growth trajectory. Results ZTE (763 HK/BUY/HK$17.92/Target: HK$28.40) 4Q23: Revenue beat, but earnings missed on product mix and opex. Update Longfor (960 HK/BUY/HK$9.38/Target: HK$12.71) Profit warning for 2023: Expect core net profit to drop by 45-50% yoy; debt reduction and optimisation on track. HSI AND HS TECH INDEX OUTLOOK
- Adrian Loh Tzum Yung
- Ceilica Su Rui
- Chong Lee Len
- Damon Shen
- Jieqi Liu
- Johnny Yum Chung Man
- Jonathan Koh
- Julia Pan Mengyao
- Jun Sian Tan
- Kasemsun Koonnara
- Ming San Soong
- Tham Mun Hon
- Wei Xiang Ku
Regional Morning Notes - Monday, March 11, 2024
GREATER CHINA Economics Inflation: Feb 24 CPI up 0.7% on CNY seasonality. Sector Internet: Looming US import ban amid encouraging growth trajectory. Results ZTE (763 HK/BUY/HK$17.92/Target: HK$28.40): 4Q23: Revenue beat, but earnings missed on product mix and opex. Update Longfor (960 HK/BUY/HK$9.38/Target: HK$12.71): Profit warning for 2023: Expect core net profit to drop by 45-50% yoy; debt reduction and optimisation on track. MALAYSIA Sector Telecommunications: 4Q23 results review: Mixed ba...
- Johnny Yum Chung Man
ZTE Corporation (763 HK): 3Q23: Results missed on weak revenue growth;...
ZTE’s 3Q23 results were below expectations, with revenue declining 12.4%. The weakness was due to a combination of delayed revenue recognition, weak recovery in the G&C and consumer businesses, and deterioration in GP server tenders. Sales growth should accelerate in 4Q and margins should remain strong at >40%, but fullyear revenue will likely miss our previous estimates and geopolitical risks will remain an overhang on share price. Maintain BUY but cut target price to HK$28.40.
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