Daily Brief Industrials: Kuang-Chi Technologies , Canvest Environmental Protection Group, Contemporary Amperex Technology (CATL), TAL Education, PostNL NV, Adani Ports & Special Economic Zone, Ads-Tec Energy and more

• There could be 8 changes at the June rebalance with the Industrials and Information Technology sectors gaining 3 index spots each and the Materials sector losing 4 spots.
• Estimated one-way turnover is 1.44% at the rebalance leading to a round-trip trade of CNY 32.55bn (US$4.5bn). There are 13 stocks with over 2x ADV to trade.
• The forecast adds have outperformed the forecast deletes over the last 6 weeks even though there have been large ETF creations. There could be more outperformance coming up.

• Ahead of the 12th May shareholder to vote on Grandblue’s Offer, recent price action in Canvest (1381 HK) has been odd, with considerable selling volume.
• By all accounts, a chunk of that selling was brought about by an event desk in Singapore shutting down. Elsewhere, via numerous inquiries, I see nothing deal specific. 
• In recent positive developments, AEP (3.62% of shares out) is supportive; there are no material updates in s329 announcements; and I see nothing of note when inspecting the shareholder register. 

• Contemporary Amperex Technology (CATL) (300750 CH), one of the world’s largest battery solutions providers, aims to raise around 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 and valuations in our earlier notes. In this note, we talk about its recent updates and provide updated thoughts on valuations.

• TAL Education Group’s latest quarter and fiscal year performance presents a mixed picture, with notable expansions alongside challenges in profitability.
• Key areas such as Learning Services and Content Solutions have shown significant revenue growth, demonstrating the company’s efforts to broaden its educational offerings.
• In fiscal 2025, TAL Education Group recorded a considerable increase in net revenues, reaching USD 2.3 billion, a 51% rise from the previous year.

• In this edition: • BE Semiconductor Industries | awarded follow-on order for five TCB Next systems • Philips | adjusts FY25 outlook on back of assumed impact of announced tariiffs • PostNL | 1Q25 broadly in line; FCF deviation mainly due to phasing • Triodos Bank | first ruling by Spanish Supreme Court: Triodos not liable

• Adani Ports and Special Economic Zone (APSEZ) has released FY 2024-25 results that were largely stable y-o-y.
• Although cargo volume growth underperformed expectations, revenue rose 14% in line with projections, while the 16% EBITDA increase exceeded guidance.
• APSEZ generated slightly positive FCF, and net adjusted leverage was stable at an acceptable 2.8x.

ADS-TEC Energy has been building a strong position in battery-buffered fast charging systems. To date the company has largely operated through unit sales with some additional services. The $50m gross fund raise will enable a shift to providing a complete system and service delivery model, enabling ADS-TEC to participate in longer-term revenues than its charging infrastructure currently offers, while customers will benefit from an outsourced business model. This should generate a more stable and longer-term revenue stream for the company and shareholders.