Main subsidiaries' 1Q15 results:

• AVIC International Maritime Holdings (O2I SP): Sales up 33% to 140mn, NP drop from -4.7mn to -12.4mn.
• Fiyta (000026 CH): holds 41.5% share. sales up 8.8% to RMB894 mn, NP up 1.7% to RMB45 mn
• Tianma (000050 CH): holds 45.6% share. Sales up 15.4% to RMB1.44 bn, NP up 5% to RMB129 mn.

Ka-shing Li (李嘉诚) has bought 20.58% of 161's share. (The last one was in Apr 14, bought 27.5mn @6.3)

USD510 mn revenue for 1Q15, beats consensus by 1.7%. GM is 29.4%, beating consensus by 1.6%, OPM exceeded consensus by 5 percentage points. Margin beat is attributed to higher utilization and lower depreciation expense. Communication and consumer applications were the biggest segments. Revenue from China rose to 47%.

Guidance: 2-5% growth QoQ (4.6% growth expected by consensus).

Compare: TSMC guided down 7-8%, UMC down 3% QoQ.

28nm: will start risk production at the end of 2015 and should have more than one customer this year.

Valuation: 1.2X P/B (vs. Hua Hong 0.93X P/B, TSMC 3.37X P/B, UMC 0.78X P/B). It is fair. Watch on its progress on 28nm and demand from China.

USD166 mn revenue for 1Q15, +12.5% yoy. GM is 30.5% (4Q14 29.1%, 1Q14 25.5%), NP goes to USD24.8 mn, +22.3% yoy. Utilization is 96.1%. Revenue from China accounts for 56.5%, and demand mainly comes from discrete components and smart card.

Guidance: revenue +2% QoQ.

Will have conf call in Monday.

Close AAC & Merry Electronics, add Cowell & Tongda.

AAC: 1Q15 result inline. Acoustic's growth is stable as handset's growth decelerated. Haptics in Apple has problem. It is guided 30% of total revenue in 2015 will come from haptics. I think it is hard to maintain high gross margin as acoustic. Neutral rating.

Merry Electronics: net profit dropped 76% yoy in 1Q15, due to weak demand & higher labor cost in China. It will spend 700mn NTD in Tailand to construct a new plant. Whether demand can recover need watching. 12%+ sales growth in 2015. If can recover, current price is cheap.

Cowell (1415 HK): camera module supplier (flip-chip front CCM for apple and COB CCM for Samsung & LG). Stable growth. 10X+ 15F P/E.

Tongda (698 HK): +41% yoy growth in 1Q15 due to Xiaomi (enter Xiaomi's supply chain since 2Q14). Metal casing accounts for 5% total revenue in 2014. 11X 15F P/E.