Daily Brief Energy/Materials: CNOOC Ltd, Asian Paints, Huadian New Energy Group, CNGR Advanced Material , Riley Exploration Permian, Electra Battery Materials , Southern Copper, Spanish Mountain Gold, Noble Corp Plc, Ecolab Inc and more

• Big Beautiful Skew was again a no-show. But the SFC’s expectation of dual counter eligibility for Connect by year-end approaches its endgame.
• The GAC (2238 HK) reco 2wks ago worked well. One extra week was bad. Last week’s reco on CNOOC Ltd (883 HK) was a disaster. H underperformed A by 8.4%.
• The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Pairs Monitor are both there – free – for all SK readers.

• Companies in India have disclosed their shareholding pattern as of end-September in October. There are companies with significant float changes from end-June and/or end-March.
• The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in flow from passive trackers.
• Depending on the date that the shareholding was published, there could be 20 stocks with passive inflows from global trackers while 6 could have passive outflows in November.

• CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500 names.
• In this insight, we have presented our final expectations for ADDs and DELs for the upcoming semiannual index rebal event in December 2025.
• We expect 11 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index during this index review based on the latest available data. US$11bn total flows.

• CNGR Advanced Material (300919 CH), a new energy materials company, has filed its PHIP for an H Share listing to raise US$700 million.     
• CNGR ranked first globally in 2024 in terms of sales value for all cathode active material precursors (pCAM) products, with a market share of 21.8%.
• The fundamentals are solid, with good growth, a relatively stable margin profile, declining cash burn, manageable leverage, and an undemanding valuation. 

• Riley’s solid cash flow profile provides management with the flexibility to navigate the current commodity price environment. 
• Management’s latest (August 6, 2025) FY25 total capital spending plan totaled $113-146 million, which included $84-100 million of upstream capex and $29-46 million of midstream capex.
• An additional $15-18 million investment is planned in the company’s power joint venture. 

• Electra Battery Materials is strategically positioned to become a key player in the North American electric vehicle (EV) supply chain by establishing the continent’s first cobalt sulfate refinery.
• The company’s integrated battery materials park concept, which includes cobalt refining, battery recycling, and potential nickel sulfate production, offers a localized and environmentally sustainable solution, reducing reliance on foreign supply chains, particularly China’s dominance in the sector.
• Strong government support from both Canada and the U.S., coupled with a key offtake agreement with LG Energy Solution, provides a solid foundation for the company’s growth, though execution risks and market volatility remain key considerations.

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• Southern Copper Corporation’s third quarter and nine-month results for 2025 present a nuanced picture of the company’s financial and operational status.
• The company marked notable achievements with record net sales, adjusted EBITDA, and net income for the quarter, underscoring effective strategic execution and favorable market conditions.
• The boosts in these financials were substantially driven by increased production of by-products like zinc, silver, and molybdenum, and elevated metal prices.

• This morning, SPA announced assay results for its first two drill holes as part of its 9,000-10,000m fall drill program.
• The results confirm strong grades over wide intervals within the proposed pit (in areas previously modeled as lower-grade and/or waste), including 0.77 g/t Au over 112m and 0.64 g/t over 102m.
• Drilling supports advancement toward a 2027 construction decision, building on a PEA with $1.03B NPV5% and 18% IRR at US$2,450/oz.

• Noble Corporation’s third-quarter 2025 earnings report presents a mixed picture for investors, with some positive developments and notable challenges on the horizon.
• The company generated an adjusted EBITDA of $254 million and a free cash flow of $139 million, which was bolstered by net disposal proceeds of $87 million.
• This financial performance underscores Noble’s operational efficiency, as highlighted by the company’s successful execution in technically demanding deepwater drilling operations.

• Ecolab’s third-quarter 2025 performance presents a mixed bag of achievements and challenges, underscoring the company’s maneuvering through a fluctuating global economic environment.
• On the positive side, Ecolab reported double-digit earnings growth, buoyed by increased pricing strategies and a 1% increase in volumes.
• This growth momentum was particularly pronounced in its high-performing segments like Pest Elimination, Life Sciences, Global High-Tech, and Ecolab Digital, which all saw double-digit organic growth.