Dim Sum Express

Tech Hardware: Leading CCM makers’ shipment growth slowed in Nov

    Online media reports have indicated that in Nov, several top domestic handset brands such asHuawei, OPPO, VIVO and Xiaomi, reduced component orders by 10%-20%, while it is expected thatin Dec, orders will be cut by up to 20%-30%. We believe that leading CCM makers, as the coresuppliers of CCMs for Chinese smartphone brands, are more sensitive to changes in the downstreamshipments of Chinese smartphone manufacturers. The slowdown in CCM shipment growth in Novwas likely attributable to a significant deceleration in YoY smartphone shipment growth downstream.

    Yuexiu Property (123HK, Buy): Management expects a contract sales CAGR of 30% during2018-20

    We had a conference call with management yesterday. Management’s targeted contract salesgrowth during 2018-20is higher than our expectation. In our view, the company is gradually shiftingfrom a Guangzhou-based regional developer into a nationwide player. We see its SOE backgroundas a positive factor in acquiring relatively cheap land banks in the future, which will improve its grossmargin. The new management has brought positive changes for the company, with improvingearnings visibility and more aggressive sales targets. We see several share price catalysts; maintainBuy and TP of HK$2.60.