In today’s briefing:
- Hang Seng Biotech Index Rebalance: 1 Add & 21 Deletes as Methodology Changes
- [XPeng Inc. (XPEV US, BUY, TP US$28) Review]: When Margin and Cash Is Right, Growth Is Secondary
- Lucror Analytics – Morning Views Asia
Hang Seng Biotech Index Rebalance: 1 Add & 21 Deletes as Methodology Changes
- There is 1 add and 21 deletions for the Hang Seng Biotech Index (HSHKBIO Index) at the September rebalance.
- Estimated one-way turnover at the rebalance is 11.25% resulting in a round-trip trade of HK$1.77bn (US$226m).
- The deletes have underperformed the HSHKBIO Index since the start of the year with the gap opening up over the last two months following the announcement of the methodology change.
[XPeng Inc. (XPEV US, BUY, TP US$28) Review]: When Margin and Cash Is Right, Growth Is Secondary
- XPeng reported C2Q25 top line, non-GAAP operating loss and GAAP net loss (5.4%), 28% wider and 10% narrower than our estimate and (2.2%), 13% narrower and 49% narrower than consensus.
- Vehicle gross margin beat our estimate by 2.3ppt, consensus by 1.7ppt, and improved 14ppt YoY and 1.8% QoQ. XPEV guided for breakeven in C4Q25;
- We reiterate our TOP BUY on XPEV with TP unchanged.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Wynn Macau, AAC Technologies
- UST yields climbed yesterday, led by the front end, following hawkish comments from a few Fed officials and strong PMI data. The UST curve bear-flattened, with the yield on the 2Y UST rising 5 bps to 3.79%, while the yield on the 10Y UST increased 4 bps to 4.33%. Equities continued to retreat amid a rotation out of big tech stocks.
- The S&P 500 slipped for a fifth straight day, declining 0.4% to 6,370, while the Nasdaq fell 0.3% to 21,100.
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