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

Rikki Malik

Cross Asset Strategy

<ul>
<li>A review of recent events/data impacting our investment themes and outlook</li>
<li>What are major global bond markets telling us about the world?</li>
<li>We look at potential beneficiaries  of the next wave of inflation </li>
</ul>


A review of recent events/data impacting our investment themes and outlook
What are major global bond markets telling us about the world?
We look at potential beneficiaries  of the next wave of inflation 


Overview #27 – The Big Beautiful Tragi-Comedy Continues

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>We believe the share price pullback since Feb has, to a certain extent, priced in the policy change in Kazakhstan uranium industry as well as the high sulphur price arising from the Middle East conflict.</li><li>We see several near-term positive catalysts: (1) a resilient trend of spot uranium price, supported by strong contract price; (2) the easing tension in the Middle East to help stabilize the price of sulphur; (3) the commencement of Kazatomprom’s (KAP LN, NR) sulphuric acid plant in early 2027 will help reduce the cost of sulphuric acid.</li><li>We continue to like the favourable demand/supply profile of uranium, driven by tight mine output but higher nuclear power demand fuelled by AI. </li></ul>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.

We believe the share price pullback since Feb has, to a certain extent, priced in the policy change in Kazakhstan uranium industry as well as the high sulphur price arising from the Middle East conflict.We see several near-term positive catalysts: (1) a resilient trend of spot uranium price, supported by strong contract price; (2) the easing tension in the Middle East to help stabilize the price of sulphur; (3) the commencement of Kazatomprom’s (KAP LN, NR) sulphuric acid plant in early 2027 will help reduce the cost of sulphuric acid.We continue to like the favourable demand/supply profile of uranium, driven by tight mine output but higher nuclear power demand fuelled by AI. 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.

CGN Mining (1164 HK) - Buying opportunity supported by near-term catalysts

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Global uranium demand is escalating quickly as China doubles its nuclear power plants by 2030 and the U.S. increases its inventory for its energy independence and growing energy needs.</li>
<li>
<a href="https://www.smartkarma.com/entities/cgn-mining-co-ltd" target="_blank" data-smartkarma-citation="entities:6426:1" rel="noopener">CGN Mining (1164 HK)</a> is China's largest uranium trading company, with partnerships with the Kazakhstan government in some of the largest uranium mines in the world.
</li>
<li>CGN secured an off-take contract with China General Nuclear Power Group at prices that are 50% higher than previous contract.  Approximately 60% of CGN's revenue is from EU and U.S.</li>
</ul>


Global uranium demand is escalating quickly as China doubles its nuclear power plants by 2030 and the U.S. increases its inventory for its energy independence and growing energy needs.

CGN Mining (1164 HK) is China's largest uranium trading company, with partnerships with the Kazakhstan government in some of the largest uranium mines in the world.

CGN secured an off-take contract with China General Nuclear Power Group at prices that are 50% higher than previous contract.  Approximately 60% of CGN's revenue is from EU and U.S.


CGN Mining (1164 HK) - THE NUCLEAR OPTION!

<ul>
<li>Hong Kong Alpha portfolio gained 8.45% in September and 60.89% and 62.80% YTD and since launch one year ago.  The portfolio has outperformed Hong Kong indexes by more than 40%.</li>
<li>The portfolio has a Sharpe ratio of 3.23 YTD and has generated more than 40% of its returns from stock-picking (alpha).  Its beta is low at only 1.17.</li>
<li>At the end of September, we increased exposure to AI and robotics and sold positions in the consumer and finance sectors.</li>
</ul>


Hong Kong Alpha portfolio gained 8.45% in September and 60.89% and 62.80% YTD and since launch one year ago.  The portfolio has outperformed Hong Kong indexes by more than 40%.
The portfolio has a Sharpe ratio of 3.23 YTD and has generated more than 40% of its returns from stock-picking (alpha).  Its beta is low at only 1.17.
At the end of September, we increased exposure to AI and robotics and sold positions in the consumer and finance sectors.


HONG KONG ALPHA PORTFOLIO: (September 2025)

<ul><li>What’s new? According to news report (link), the draft by Kazakhstan lawmakers to tighten the control of uranium mining JVs has been passed by the lower house and await Senate review. </li><li>The draft requires Kazatomprom (KAP LN, NR), the state-owned and world largest uranium producer in terms of production volume, to receive 90% stake in JV upon contract renewal.</li><li> KAP has long been having a number of JVs with different foreign partners in uranium mining in Kazakhstan.</li></ul>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.

What’s new? According to news report (link), the draft by Kazakhstan lawmakers to tighten the control of uranium mining JVs has been passed by the lower house and await Senate review. The draft requires Kazatomprom (KAP LN, NR), the state-owned and world largest uranium producer in terms of production volume, to receive 90% stake in JV upon contract renewal. KAP has long been having a number of JVs with different foreign partners in uranium mining in Kazakhstan.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.

CGN Mining (1164 HK) - Newly Proposed Policy in Kazakhstan...

Hong Kong

CGN Mining Company Limited engages in the development and trading of natural uranium resources for nuclear power plants. It also invests in natural uranium resources and operates through Natural Uranium Trading and Other Investments segments. The company was founded in 1998 and is headquartered in Wan Chai, Hong Kong.

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CGN Mining (1164 HK)

Overview #27 – The Big Beautiful Tragi-Comedy Continues

More positive news for the Uranium Sector. Jefferies upgraded the Australian uranium miners yesterday with $PDN, $BOE and $DLY rallying 15-20% & up...

Rikki Malik