In today’s briefing:
- CATL: Launch of Book Building for Hong Kong Listing
- Rare Arb Opportunity from ATS Breakout in Korea: Day-Night Spread
- Quiddity Leaderboard T50/100 Jun25: Some Changes to Expectation; Three Weeks to Base Date
- A Pair Trade of Hanwha Aerospace and Hanwha Ocean
- Shilchar Technologies Q4FY25 : Full Capacity Utilization Achieved Ahead of Schedule.
- TWI: Titan reports 1st quarter 2025 financial and operating results which showed revenue growth above our expectations. The company also commented on the effects of global tariffs on its business.
- TWI: Titan reports 1st quarter 2025 financial and operating results which showed revenue growth above our expectations. The company also commented on the effects of global tariffs on its business.
CATL: Launch of Book Building for Hong Kong Listing
- According to Reuters, CATL plans to launch its Hong Kong listing process including book building during the week of 12 May.
- We estimate CATL to generate revenue of 423.6 billion RMB (up 17% YoY) and net profit of 55.6 billion RMB (up 13.1% YoY) in 2025.
- Our base case valuation of CATL is implied market cap of 1.3 trillion CNY which is 32% higher than current market cap. We believe CATL’s shares are undervalued.
Rare Arb Opportunity from ATS Breakout in Korea: Day-Night Spread
- Local traders are targeting the spread between day and NXT’s after-hours, a classic arb play similar to what Japanese instos used when ATS first launched, now emerging in Korea.
- The gap persists because institutional flow on NXT is still minimal, with recent data showing instos accounting for just 1-2% of total turnover.
- NXT’s night session is seeing heavy retail flow, providing instos with the liquidity to trade. This creates a rare opportunity to capitalize on early inefficiencies before others catch on.
Quiddity Leaderboard T50/100 Jun25: Some Changes to Expectation; Three Weeks to Base Date
- The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
- In this insight, we take a look at the potential ADDs and DELs for the June 2025 index rebal event.
- Currently, we see one change for T50 and one change for T100.
A Pair Trade of Hanwha Aerospace and Hanwha Ocean
- In this insight, we discuss a pair trade between Hanwha Aerospace (012450 KS) (go long) and Hanwha Ocean (042660 KS) (go short).
- Hanwha Ocean faces bigger overhang risk of KDB continuing to sell additional shares of the company as compared to Hanwha Aerospace’s rights offering shares dilution risk.
- Hanwha Aerospace/Hanwha Ocean price ratio (5 year period) is near the 2 standard deviation (STD) mark which could suggest a reversion to the mean.
Shilchar Technologies Q4FY25 : Full Capacity Utilization Achieved Ahead of Schedule.
- Shilchar achieved full capacity utilization ahead of FY26 guidance, delivering record quarterly and annual profitability.
- The early ramp-up boosts earnings visibility, positioning Shilchar to benefit from strong domestic and export transformer demand.
- Near-Term growth outlook strengthens with a INR 750–800 crore revenue guidance for FY26, while medium-term capex plans are under evaluation.
TWI: Titan reports 1st quarter 2025 financial and operating results which showed revenue growth above our expectations. The company also commented on the effects of global tariffs on its business.
- Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
- The company serves the agricultural, earthmoving / construction, and consumer markets.
- Long-term secular tailwinds exist in the global agricultural, infrastructure and construction markets.
TWI: Titan reports 1st quarter 2025 financial and operating results which showed revenue growth above our expectations. The company also commented on the effects of global tariffs on its business.
- Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
- The company serves the agricultural, earthmoving / construction, and consumer markets.
- Long-term secular tailwinds exist in the global agricultural, infrastructure and construction markets.
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