Equity Research Analyst - Long-Short

Raj S, CA, CFA

Equity Bottom-Up

<ul>
<li>Recent developments materially improve the setup: H200 clarity reduces a major sector overhang and removes uncertainty around chip supply, clearing the way for continued AI-infrastructure expansion in China.</li>
<li>3Q25: VNET's strong result, 2026 outlook, advantaged power resources, and shareholder priorities (no equity dilution and defined leverage limits) reduce downside bottoms-up risk while increasing confidence on execution</li>
<li>None of this is reflected in today’s valuation. With 25–30% EBITDA CAGR and improved visibility on demand and execution, VNET is positioned for a material 2026 re-rating, implying 60-100% upside.</li>
</ul>


Recent developments materially improve the setup: H200 clarity reduces a major sector overhang and removes uncertainty around chip supply, clearing the way for continued AI-infrastructure expansion in China.
3Q25: VNET's strong result, 2026 outlook, advantaged power resources, and shareholder priorities (no equity dilution and defined leverage limits) reduce downside bottoms-up risk while increasing confidence on execution
None of this is reflected in today’s valuation. With 25–30% EBITDA CAGR and improved visibility on demand and execution, VNET is positioned for a material 2026 re-rating, implying 60-100% upside.


2026 High Conviction: VNET US - Thesis Strengthens Into 2026  (Chips, Demand, Execution)

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cross Asset Strategy

<ul>
<li>The time is right to increase exposure to the Hong Kong market</li>
<li>A confluence of factors and catalysts will drive the index higher</li>
<li>We suggest a few names that we believe will benefit.</li>
</ul>


The time is right to increase exposure to the Hong Kong market
A confluence of factors and catalysts will drive the index higher
We suggest a few names that we believe will benefit.


Tactical Trading – Increasing Hong Kong Exposure

Equity & Credit Research

Duncan Chan

Contemporary Amperex Technology / Equity Bottom-Up

Contemporary Amperex Technology (CATL-SR SP)

<ul>
<li>The market still largely values <a href="https://www.smartkarma.com/entities/contemporary-amperex-technology-co-limited-shs-unsp-singapore-depositary-receipt-repr-1-30-sh" target="_blank" data-smartkarma-citation="entities:48890:1" rel="noopener">Contemporary Amperex Technology (CATL-SR SP)</a> as a cyclical EV battery manufacturer, underestimating how AI-driven electricity demand shifts value toward storage integration and electricity infrastructure.</li>
<li>The VNET-related investment is unlikely to materially affect near-term earnings, but signals CATL positioning around AI-linked electricity infrastructure, storage integration and localized power resilience systems.</li>
<li>We remain constructive on CATL, with 12-month valuation outcomes ranging from HK$490 to HK$860+, depending on whether ESS achieves infrastructure-quality earnings, while our base-case valuation remains HK$720-750.</li>
</ul>


The market still largely values Contemporary Amperex Technology (CATL-SR SP) as a cyclical EV battery manufacturer, underestimating how AI-driven electricity demand shifts value toward storage integration and electricity infrastructure.
The VNET-related investment is unlikely to materially affect near-term earnings, but signals CATL positioning around AI-linked electricity infrastructure, storage integration and localized power resilience systems.
We remain constructive on CATL, with 12-month valuation outcomes ranging from HK$490 to HK$860+, depending on whether ESS achieves infrastructure-quality earnings, while our base-case valuation remains HK$720-750.


CATL: From Battery Supplier Toward Data Center Energy Infrastructure

Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Thematic (Sector/Industry)

<ul>
<li>Both GDS and VNET declined more than 70% from all time high.   We think both stocks are over-penalized by market from top-down macro-economic reasons and geo-political tensions</li>
<li>We think there is a dis-connect between the share price and solid company fundamentals.   The explosive growth in demand for AI and Cloud computing infrastructure remains strong</li>
<li>GDS is a mature, blue-chip name that offers sustainable profitability while on de-leveraging.  VNET is a high-growth, high-risk turnaround play with its wholesale offering higher short-term upside</li>
</ul>


Both GDS and VNET declined more than 70% from all time high.   We think both stocks are over-penalized by market from top-down macro-economic reasons and geo-political tensions
We think there is a dis-connect between the share price and solid company fundamentals.   The explosive growth in demand for AI and Cloud computing infrastructure remains strong
GDS is a mature, blue-chip name that offers sustainable profitability while on de-leveraging.  VNET is a high-growth, high-risk turnaround play with its wholesale offering higher short-term upside


GDS and VNET – Recent Pullback Provides Entry Opportunity, Long-Term AI Growth Solid and Strong

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ly-corp" target="_blank" data-smartkarma-citation="entities:19603:1" rel="noopener">LY (4689 JP)</a>'s ¥3,232/share bid for <a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com (2371 JP)</a>, contingent on DD being granted and passed. should be enough to get <a href="https://www.smartkarma.com/entities/digital-garage-inc" target="_blank" data-smartkarma-citation="entities:13747:1" rel="noopener">Digital Garage (4819 JP)</a> triggered. There's more to come.</li>
<li>Concurrent with dispatching its Bidder's Statement for <a href="https://www.smartkarma.com/entities/atlas-arteria-ltd" target="_blank" data-smartkarma-citation="entities:14430:1" rel="noopener">Atlas Arteria (ALX AU)</a>, IFM lodges its own Panel application, specifically centred on Chicago Skyway's right of first offer involving Ontario Teachers</li>
<li>
<a href="https://www.smartkarma.com/entities/strike-energy-ltd" target="_blank" data-smartkarma-citation="entities:12473:1" rel="noopener">Strike Energy (STX AU)</a>, who's upstream transiton has proved challenging, announced CEO, non-executive chair, and NED changes/retirements; and following an independent review, a move towards a smaller board.</li>
</ul>



LY (4689 JP)'s ¥3,232/share bid for Kakaku.com (2371 JP), contingent on DD being granted and passed. should be enough to get Digital Garage (4819 JP) triggered. There's more to come.
Concurrent with dispatching its Bidder's Statement for Atlas Arteria (ALX AU), IFM lodges its own Panel application, specifically centred on Chicago Skyway's right of first offer involving Ontario Teachers

Strike Energy (STX AU), who's upstream transiton has proved challenging, announced CEO, non-executive chair, and NED changes/retirements; and following an independent review, a move towards a smaller board.


Last Week In Event SPACE: Kakadu, Atlas Arteria, Strike Energy, New World Development

China

VNET Group, Inc. provides carrier-neutral Internet data center services. The Company hosts its customers' servers and networking equipment, as well as provides interconnectivity to enable customers to deliver data across the Internet. VNET Group conducts business in Beijing, China.

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VNET Group (VNET US)

2026 High Conviction: VNET US - Thesis Strengthens Into 2026 (Chips, Demand, Execution)

VNET benefits most as H200 clarity lifts chip risk and 3Q results resolve major investor concerns. We see VNET as one of the strongest 2026E calls...

Raj S, CA, CFA

Tactical Trading – Increasing Hong Kong Exposure

Now is an opportune time to increase investments in the Hong Kong market, as various factors are aligning to propel the index upward. We discuss...

Rikki Malik

CATL: From Battery Supplier Toward Data Center Energy Infrastructure

AI-driven electricity demand is shifting value toward storage integration and infrastructure economics, potentially changing how CATL’s earnings...

Duncan Chan

GDS and VNET – Recent Pullback Provides Entry Opportunity, Long-Term AI Growth Solid and Strong

Both GDS and VNET has declined >70% from all time high, providing a golden entry oppportunity. GDS is a mature blue-chip play offering...

Jacob Cheng

Last Week In Event SPACE: Kakadu, Atlas Arteria, Strike Energy, New World Development

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

2026 High Conviction: VNET US - Thesis Strengthens Into 2026 (Chips, Demand, Execution)

VNET benefits most as H200 clarity lifts chip risk and 3Q results resolve major investor concerns. We see VNET as one of the strongest 2026E calls...

Raj S, CA, CFA

Tactical Trading – Increasing Hong Kong Exposure

​Now is an opportune time to increase investments in the Hong Kong market, as various factors are aligning to propel the index upward. We discuss...

Rikki Malik

CATL: From Battery Supplier Toward Data Center Energy Infrastructure

AI-driven electricity demand is shifting value toward storage integration and infrastructure economics, potentially changing how CATL’s earnings...

Duncan Chan

GDS and VNET – Recent Pullback Provides Entry Opportunity, Long-Term AI Growth Solid and Strong

Both GDS and VNET has declined >70% from all time high, providing a golden entry oppportunity. GDS is a mature blue-chip play offering...

Jacob Cheng

Last Week In Event SPACE: Kakadu, Atlas Arteria, Strike Energy, New World Development

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Now is an opportune time to increase investments in the Hong Kong market, as various factors are aligning to propel the index upward. We discuss...