Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: AAC Technologies, Vedanta Resources, Hanwha TotalEnergies</li>
<li>UST yields climbed on Friday in a holiday-shortened session, following the release of stronger than expected March nonfarm payroll numbers. The yield on the 2Y UST rose 4 bps to 3.84%, while that on the 10Y UST was up 3 bps at 4.34%.</li>
<li>Equities closed slightly higher on Thursday, as investors focused on the potential re-opening of the Strait of Hormuz. The S&amp;P 500 and Nasdaq advanced 0.1% and 0.2% to 6,583 and 21,879, respectively.</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: AAC Technologies, Vedanta Resources, Hanwha TotalEnergies
UST yields climbed on Friday in a holiday-shortened session, following the release of stronger than expected March nonfarm payroll numbers. The yield on the 2Y UST rose 4 bps to 3.84%, while that on the 10Y UST was up 3 bps at 4.34%.
Equities closed slightly higher on Thursday, as investors focused on the potential re-opening of the Strait of Hormuz. The S&amp;P 500 and Nasdaq advanced 0.1% and 0.2% to 6,583 and 21,879, respectively.


External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>AAC's FY25 revenue/net profit (+16%/+40% YoY) are broadly in-line with our/consensus estimates, driven by improving profitability in optics and robust growth in auto/thermal businesses, despite weaker GPM dragged by acoustics margin.</li><li>During earnings call, mgmt. provided detailed positive 2026 guidance, (16-17% YoY as in 2025, stable GPM), new growth drivers (thermal/auto/XR/AI hardware) and opportunity in AI server thermal M&amp;A, which should ease market concerns on 2026 growth outlook amid smartphone headwinds.</li><li>We adjusted our estimates to reflect FY25 results, industry headwinds and stronger thermal/ optics/auto business. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

AAC's FY25 revenue/net profit (+16%/+40% YoY) are broadly in-line with our/consensus estimates, driven by improving profitability in optics and robust growth in auto/thermal businesses, despite weaker GPM dragged by acoustics margin.During earnings call, mgmt. provided detailed positive 2026 guidance, (16-17% YoY as in 2025, stable GPM), new growth drivers (thermal/auto/XR/AI hardware) and opportunity in AI server thermal M&amp;A, which should ease market concerns on 2026 growth outlook amid smartphone headwinds.We adjusted our estimates to reflect FY25 results, industry headwinds and stronger thermal/ optics/auto business. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AAC Tech (2018 HK) - Auto/Thermal/Edge AI and Margin Recovery to Drive Earnings Growth in 2026-27E

Leonard Law, CFA

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: China Jinmao, AAC Technologies</li>
<li>The UST curve twisted slightly flatter yesterday. Long-end yields declined marginally, as oil prices stabilised after the US approved the sale of Russian crude and petroleum that were loaded on “any vessel” on or before March 12th. The yield on the 2Y UST rose 2 bps to 3.79%, while that on the 10Y UST fell 2 bps to 4.25%.</li>
<li>Equities ended lower, albeit steeper declines earlier in the day were pared alongside stabilising oil prices and after Israeli Prime Minister Benjamin Netanyahu said he sees the war “ending a lot faster than people think".</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: China Jinmao, AAC Technologies
The UST curve twisted slightly flatter yesterday. Long-end yields declined marginally, as oil prices stabilised after the US approved the sale of Russian crude and petroleum that were loaded on “any vessel” on or before March 12th. The yield on the 2Y UST rose 2 bps to 3.79%, while that on the 10Y UST fell 2 bps to 4.25%.
Equities ended lower, albeit steeper declines earlier in the day were pared alongside stabilising oil prices and after Israeli Prime Minister Benjamin Netanyahu said he sees the war “ending a lot faster than people think".


Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.</li>
<li>The official index changes and indicative weights for the December 2025 index rebal event will be announced publicly after the close on Friday 21st November 2025.</li>
<li>We continue to expect one index change for December 2025 and we estimate there to be capping flows of ~US$1.9bn one-way.</li>
</ul>


The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
The official index changes and indicative weights for the December 2025 index rebal event will be announced publicly after the close on Friday 21st November 2025.
We continue to expect one index change for December 2025 and we estimate there to be capping flows of ~US$1.9bn one-way.


Quiddity Leaderboard HSTECH Dec25: AAC Tech up 9% Vs Peer; ~US$1.9bn One-Way; Announcement Soon

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Oct 9th based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Xiaomi (1810 HK), J&amp;T Express (1519 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Bidu (9888 HK), Xiaomi (1810 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Oct 9th based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Xiaomi (1810 HK), J&amp;T Express (1519 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Bidu (9888 HK), Xiaomi (1810 HK).


Hong Kong Buybacks Weekly (Oct 9th): Tencent, Xiaomi, J&T Express

China

AAC Technologies is a leading provider of sensory experience solutions for smart devices. The company designs, develops, manufactures, and distributes miniaturized components, including acoustics products, haptic devices, optical lenses, camera modules, and micro electro-mechanical systems (MEMS). It primarily serves the consumer electronics market, with an expanding presence in intelligent vehicles, AR/VR, robotics, and IoT sectors. AAC Technologies was founded in 1993 and is headquartered in Shenzhen, People's Republic of China.

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AAC Technologies (2018 HK)

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: AAC Technologies, Vedanta Resources, Hanwha...

Lucror Analytics

AAC Tech (2018 HK) - Auto/Thermal/Edge AI and Margin Recovery to Drive Earnings Growth in 2026-27E

Our new SOTP-based TP of HK$55.27 implies 20.0x rollover FY26E P/E. Near-term catalysts include AI phone/glasses launch, AR optical waveguides ramp...

CMB International

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: China Jinmao, AAC Technologies

Lucror Analytics

Quiddity Leaderboard HSTECH Dec25: AAC Tech up 9% Vs Peer; ~US$1.9bn One-Way; Announcement Soon

We continue to expect AAC Technologies Holdings (2018 HK) to outperform Sunny Optical Technology Group (2382 HK) over the next few week until the...

Janaghan Jeyakumar, CFA

Hong Kong Buybacks Weekly (Oct 9th): Tencent, Xiaomi, J&T Express

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Tencent (700 HK),...

Ke Yan, CFA, FRM

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