In today’s briefing:
- CATL A/H Listing – Thoughts on A/H Premium
- HONG KONG ALPHA PORTFOLIO (March 2025)
- [Atour Lifestyle (ATAT US, BUY, TP US$37) Review]: Higher-Quality Growth Extending into 2025
- Asia Real Estate Tracker (02-Apr-2025): Warburg Pincus buys Japan living sector.
- Lucror Analytics – Morning Views Asia
CATL A/H Listing – Thoughts on A/H Premium
- Contemporary Amperex Technology (CATL) (300750 CH), one of the world’s largest battery solutions providers, aims to raise at least US$5bn in its H-share listing.
- CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
- We have looked at the company’s past performance in our earlier notes. In this note, we talk about its recent updates and provide our thoughts on valuations.
HONG KONG ALPHA PORTFOLIO (March 2025)
- The Hong Kong Alpha simulated portfolio returned 0.97% in March outperforming its benchmark by 1.1%. Since inception the portfolio has outperformed Hong Kong indexes by 8% to 11%.
- The portfolio has generated alpha while maintaining a correlation of 0.8 and a beta of 1.05. The HK Alpha portfolio has a Sharpe ratio of 2.19 YTD.
- On 3/31/25 we sold Shanghai Electric Group Company (2727 HK) , Citic Securities (H) (6030 HK) , Sands China (1928 HK) , and Sunny Optical Technology Group (2382 HK)
[Atour Lifestyle (ATAT US, BUY, TP US$37) Review]: Higher-Quality Growth Extending into 2025
- Atour (ATAT) reported C4Q24 revenue 0.7%/5.8% higher than our estimate/consensus, which translate to 0.5%/4.7% higher in non-GAAP net income, thanks to hotel supply chain consolidation and pillow retail sales.
- Management’s guidance for a steeper-than-consensus decline in 2025’s RevPAR are conservative in our view. We see a “low-before-high” RevPAR pattern in 2025, supported by tightened hotel supply and government stimuli.
- We keep the TP at US$37/ADS and maintain as travel sector TOP BUY
Asia Real Estate Tracker (02-Apr-2025): Warburg Pincus buys Japan living sector.
- Warburg Pincus invests in Japan living sector by acquiring a 16,000-room portfolio.
- Proprium Capital beats out Ho Bee Land with a $228M bid for an Australian homebuilder.
- Hillhouse’s Rava secures majority stake in Dash Living with $150M investment; Ex-Macquarie exec Robson to advise on ESR privatization.
Lucror Analytics – Morning Views Asia
- In the US, the JOLTS job openings decreased to 7.57 mn (7.66 mn e / 7.76 mn p) in February.
- The job openings rate fell slightly to 4.5% (4.6% e / 4.7% revised p), while the layoffs rate was stable at 1.1% (1.1% revised p).
- Separately, the March ISM manufacturing index declined to 49.0 (49.5 e / 50.3 p). This was driven by a drop in the new orders and employment components, while the prices paid component increased.
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