20230508-招银国际-China_Technology_Sector_Apple_FY2Q23_beat_on_strong_iPhone_and_EM__Positive_on_resilient_performance_amid_headwinds_4页_978kb

Apple FY2Q23 Performance Summary

Apple reported first-quarter fiscal year 2023 (CY1Q23) earnings with EPS of $1.53 (-1% YoY) and revenue of $94.8 billion (-3% YoY), exceeding consensus expectations by 7% and 2%. Strong iPhone sales in emerging markets, including India, South Asia, Latin America, and the Middle East, coupled with record service revenue, were key drivers. However, weak Mac/iPad sales and FX headwinds partially offset these gains.

Outlook and Recommendations

Apple management expects similar revenue performance in the FY3Q23E (estimated -3% YoY) amid macroeconomic headwinds. The outlook remains positive, highlighting iPhone's share gains in a declining industry and upcoming catalysts such as potential MR device launches. Reiterate BUY for FIT Hon Teng / Luxshare due to expanding Apple exposure and non-smartphone opportunities, and maintain HOLD for BYD / Sunny Optical, citing high Android risk and fair valuation.

Additional Analyses

Focus on India as a growth area, with Apple opening stores. The technology sector faces uncertainties, including consumer electronics macro headwinds, leading to selective stock picking. Other companies covered include Xiaomi, BYD, Luxshare, and FIT Hon Teng, all analyzed for their positions in supply chains and market performances.

Valuation Overviews

Latest share prices, P/E and P/B ratios are provided for key firms: Apple (AAPL), Luxshare (002475 CH), and peers like Sunny Optical and Q-Tech, with ratings such as BUY or HOLD. DY comparison and growth expectations help assess investment risks and opportunities.