CMBI Credit Commentary Summary
Core Content Overview
This document provides a Fixed Income Daily Market Update from the CMBI Credit Department, highlighting key market movements, company-specific updates, macroeconomic news, and analyst comments. It also includes new issue information and important disclosures regarding the use and distribution of the report.
Market Movements
Fixed Income Market Summary
- BABATENCNT 27-35s tightened by 1-2 bps.
- HYNMTRs were under better selling and closed unchanged to 2 bps wider.
- NWDEVLs were unchanged to 0.7 pt higher.
Trading Desk Comments
- LGFV flows were mixed, with tactical holders taking profit on in-the-money positions and switching to higher-yielding new issues.
- CPDEV reduced outstanding amount to cUSD63.2mn after the tender offer.
- CPDEV/ZHHFGR 25s were up 0.1 pt, while SDECDI/BCDHGR 26s increased 0.2 pt.
- SOE perps such as CHSCOI/CHPWCN/CHCOMU were up 0.1-0.2 pt.
- In JP insurance hybrids, MYLIFE 54-55s and FUKOKU Perp were up 0.1 pt.
- In EU AT1s, Deutsche Bank decided to call DB 7.5 Perp but not DB 4.789 Perp; the latter’s coupon was reset to CT5+4.358 (c8.47%) on 30 Apr '25.
- BACR/LLOYDS/INTNED Perps declined by 0.2-0.4 pt.
- In Chinese IGs, TENCNTs long end was unchanged to 3 bps tighter.
- In Chinese properties, YUEXIUs/CHIOLI 28s closed 0.1-0.2 pt higher.
- In HK, NWDEVVL Perps/27-31s dropped 0.2-1.2 pts.
- CKINF/CKPH Perps declined another 0.3-0.7 pt and closed 2.6-4.2 pts lower WoW.
- In India, GRNKEN 7.25 '28 was 0.2 pt lower from RO at par; others were unchanged.
- ADSEZs/ARENRJs/ADGREGs were down 0.1-0.5 pt.
Top Movers
Top Performers
| Security Name |
Price |
Change |
| GUAMET 2.31 09/17/30 |
88.2 |
+0.4 |
| SDECDI 2.4 06/03/26 |
96.4 |
+0.3 |
| TAISEM 2 1/4 04/23/31 |
87.9 |
+0.3 |
| BCDHGR 3 1/4 07/15/26 |
96.6 |
+0.2 |
| EXIMCH 4 11/28/47 |
88.3 |
+0.2 |
Top Underperformers
| Security Name |
Price |
Change |
| CCAMCL 5 02/08/48 |
89.8 |
-1.2 |
| NWDEVL 4 1/8 PERP |
45.0 |
-1.2 |
| CHGRID 4 05/04/47 |
88.8 |
-0.9 |
| MUFG 4.7 03/10/44 |
93.2 |
-0.9 |
| NWDEVL 4 1/2 05/19/30 |
61.1 |
-0.8 |
Macro News Recap
- S&P, Dow, and Nasdaq rose by 0.08%, 0.08%, and 0.52% respectively on last Friday.
- UST yields steepened, with 2/5/10/30 yields at 3.94%/4.00%/4.25%/4.59%.
Desk Analyst Comments
AAC Technologies (AACTEC)
- Strong FY24 results with solid revenue and profit growth, and margin expansion.
- Maintain buy recommendations on AACTECs.
- YTD performance moved 0.7-2.2 pts higher, and 7-12 pts higher in 2024.
- Better risk-return profile than peers like SUNOTG 5.95 07/17/26 (Baa1, YTM 4.7%, Z-spread 73 bps).
- Potential for early redemptions via repurchases and tender offers.
Key Financials (RMB mn)
| Item |
FY23 |
FY24 |
Change |
| Revenue |
20,419 |
27,328 |
+33.8% |
| Gross profit |
3,452 |
6,042 |
+75.1% |
| EBITDA |
4,183 |
5,553 |
+32.8% |
| Net profit |
571 |
1,764 |
+209.1% |
| Operating cash flow |
4,633 |
5,203 |
+12.3% |
| Capex |
1,364 |
2,071 |
+51.8% |
| Gross profit margin |
16.9% |
22.1% |
+5.2 pct pt |
| Net profit margin |
2.8% |
6.5% |
+3.7 pct pt |
| Total debt/EBITDA |
2.3x |
1.9x |
- |
Offshore Asia New Issues (Pipeline)
| Issuer/Guarantor |
Currency |
Size (USD mn) |
Tenor |
Pricing |
Issue Rating(M/S/F) |
| AVIC International Leasing |
USD |
- |
3yr/5yr |
T+110/SOFR+135 |
-/-/A- |
| Fujian Jinshang Holding Group |
USD |
- |
3yr |
6.3% |
Unrated |
| Hanrui Overseas Investment Co |
USD |
- |
3yr |
6.3% |
Unrated |
| Korea National Oil Corporation |
USD |
- |
3yr/5yr |
SOFR Equiv/T+105 |
Aa2/AA/- |
| Marubeni Corporation |
USD |
- |
10yr |
T+135 |
Baa1/BBB+/- |
| SMBC Aviation Capital Finance |
USD |
500 |
5yr |
T+130 |
-/-/A-/BBB+ |
| Zhengzhou Jinshui Holding Group |
USD |
- |
3yr |
7.5% |
Unrated |
News and Market Color
- Onshore primary issuances: 124 credit bonds issued last Friday totaling RMB102bn; month-to-date total of RMB1,239bn raised, a 21.3% yoy decrease.
- Korean lawmakers to draft bill offering direct subsidies to battery makers.
- Moody's changed Sammaan Capital outlook to positive from stable, B2 rating affirmed.
- Lai Sun Development 1HFY25 adjusted EBITDA declined 4.9% yoy to HKD494mn (cUSD64mn).
- LVGEM terminates consent solicitation on three guaranteed bonds.
- Road King Infrastructure revenue slumped 57.7% yoy to HKD5.5bn (cUSD713mn).
- Shui On consortium seeks USD396mn-equivalent loan for Shanghai office complex refinancing.
- Sinopec FY24 revenue declined 4.3% yoy to RMB3.1tn (cUSD424bn).
Important Disclosures
- The report is for informational purposes only and not an offer to buy or sell securities.
- CMBIGM does not provide individually tailored investment advice.
- The information is not guaranteed for accuracy, completeness, or timeliness.
- No liability is assumed for any losses or damages resulting from reliance on the report.
- The report may be subject to change without notice.
- CMBIGM may have investment banking relationships with referenced companies, potentially affecting objectivity.
- Distribution restrictions apply based on jurisdiction:
- UK: Only for persons under Article 19(5) or 49(2) of the Financial Promotion Order.
- US: Only for major US institutional investors.
- Singapore: Distributed by CMBISG, an exempt financial adviser.
Author Certification
- The primary author certifies that:
- All views reflect personal opinions.
- No compensation was tied to the report's content.
- No trading occurred in the past 30 days or will occur within 3 days of report release.
- No direct financial interest in referenced companies.
Contact Information
- Fixed Income Department
- Tel: 852 3657 6235 / 852 3900 0801
- Email: fis@cmbi.com.hk
Analysts
