【招银国际】Technology: Implications of China-US tariff reduction-250513（6页）.pdf

1、 PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG:RESP CMBR OR http:/.hk 1 13 May 2025 CMB International Global Markets|Equity Research|Sector Update Technology Implications of China-US tariff reduction On 12 May,China and the US issued a joint

2、 statement(link)that the US and China will lower tariffs for 90 days by 14 May,with the US reducing its tariff from 145%to 30%and China reducing its tariff from 125%to 10%.Overall,we believe this is a further relief on China technology supply chain after the US CBPs exemption from reciprocal tariffs

3、 for 20 product categories on 11 Apr(our note).Overall,we believe consumer technology(esp.Apple supply chain)with high US revenue exposure will benefit most from the China-US tariff deal.Taking into account three selection criteria:1)US/Apple sales exposure,2)earnings growth and 3)post-correction va

4、luation,we are positive on tech names in the near term including BYDE(iPad OEM/iPhone casing),AAC(iPhone/iPad components),Luxshare(iPhone/AirPods OEM/components)and FIT Hon Teng(iPhone components/AirPods OEM).China-US tariff deal is positive to consumer tech products,esp.TWS/smart speaker/TV.Overall

5、,we believe China consumer technology companies,especially the Apple supply chain,are most sensitive to tariff reduction,given their high sales exposure to US market.Following the US CBPs exemption on 11 Apr,smartphone(iPhone)/tablet(iPad)/NB(Macbook)were already exempted from the USs reciprocal tar

6、iff,implying that the US tariff is 20%for China.For smart watch/TWS(AirPods),the tariff rate is 27.5%/170%for China,and for TV,the tariff rate is 156%for China.Therefore,we believe TWS(AirPods),smart speaker/watch and TV will benefit most from this round of China-US tariff de-escalation.What will ha