固定收益部市场日报

PLEASE READ THE AUTHORCERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGEThe recent new KUB 28 tightened 1bp this morning. BABA/XIAOMI 30-35stightened 1-2bps.CCAMCL/CFAMCI 26-30s were under better selling andwidened 1-2bps. NIPLIF 54-55s were up 0.1-0.3pt.TENCNT:Further improvement in profit margins in 1Q25. See below.NWDEVL:Media reported NWD receives commitments from around 10lenders for HKD87.5bn (cUSD11.2bn) loan refinancing. NWDEVL 4.8 Perpdown 0.2pt this morning.Trading desk comments交易台市场观点Yesterday,UST 10yr, 20yr, 30yr yields tightened 3-5bps. The recent newissue KUB 28s tightened 2bps. KOLAHO 27s tightened 1bp. CDBALF 30swere1-2bpstighter.BABA/TENCNT/MEITUA/XIAOMI27-35s were 1-3bps tighter.WB 30stightened 2bps. See our comments on22 May’25. HKAA/MTRC 30-55s were2-3bpstighteronPBs/AMs/BanksTENCNT/CNOOC/YANTZE 39-61s were 0.7-1.0pt higher (unchanged to5bps tighter).In financials,BOCOHK/DAHSIN/UOBSP/OCBCSP 26-33sclosedunchanged to 3bps wider.In insurance hybrids,SUMILF5.875/FUKOKU 6.8 Perps were 0.3-0.4pt lower.In AT1s,INTNED7.25/HSBC 6/SOCGEN 7.875 Perps were down 0.2-0.3pt. In TH, BBLTB 34-40s tightened 1-4bps. TOPTB 30-50s tightened 2-8bps. In HK, NWDEVLPerps/27-31s were unchanged to 0.5pt lower. Media reported NWD hassecured commitments from about 10 banks for its HKD87.5bn (cUSD11.2bn)loan refinancing. In Chinese properties, VNKRLE 27-29s were down 0.2-0.3pt. In SE Asia, VEDLN 28-33s declined 0.3-1.6pts. UPLLIN 28-30s weredown 0.2-0.5pt despite S&P revised its outlook to stable from negative.GLPSP Perps declined 0.4-1.1pts.In LGFVs, there were two way interests on the recent new USD names suchas NCCIVG 6.5 28s/ANQYIX 7.6 28s and CNH papers such as CHDOHU 7.426s/SHAHEI 6.95 27s. In SOE perps, CHSCOI Perp was up 0.1pt, HUANENPerp down 0.1pt.CMBI Credit CommentaryFixed Income Daily Market Update固定收益部市场日报 InChineseandHKIGs,buying.Thelongendof (852) 3657 6235(852) 3900 0801JerryWang(852)3761 8919CMBI Fixed Incomefis@cmbi.com.hk LastTradingDay’s Top MoversTop PerformersPriceYANTZE 3.2 10/16/4971.1XIAOMI 4.1 07/14/5174.5TENCNT 4.525 04/11/4981.7TENCNT 3.94 04/22/6169.9TENCNT 3.29 06/03/6061.1MarcoNews Recap宏观新闻回顾Macro–S&P (-0.39%), Dow (-0.27%) and Nasdaq (-0.38%) were lower onTuesday. Long-term UST yieldwashigher Tuesday, 2/5/10/30 yield at 3.97%/4.07%/4.48%/4.96%.Desk Analyst Comments分析员市场观点TENCNT: Further improvement in profit margins in 1Q25In 1Q25, Tencent revenue grew by 13% yoy to RMB180bn across its major business segments.The adjustedEBITDA up 18% yoy and adjusted EBITDA margin improved to 45.3%.See Table 1. Tencent has been steepingup investments in AI, AI capabilities are contributing to its performance advertising and evergreen games.Tencentis also increasing investment in new AI initiatives such as Yuanbao application and rolling out AI inWeixin during 1Q25.The 1Q25 capex increased 91% yoy to RMB27bn.As a result, the 1Q25 free cash flowdropped by 15% yoy to RMB49bn under higher capex,and partly offset by higher operating cash inflows duringthe quarter. We expect Tencent to continue to fund its capex via its operating cash inflows without much adverseimpact to its credit profile. Moreover, we believe Tencent to maintain a solid creditprofile in line with its creditratings of A1/A+, with low total debt/adjusted EBITDA ratio of 1.4x at Mar’25, improving profit margins andstrong operating cash inflows.Amongst A-rated Chinese TMT, we prefer TENCNT 3.595 01/19/28 and TENCNT 3.975 04/11/29 for shortertenor given our preference for shorter-tenor plays in view of current UST level and volatility, as well as theirlower cash prices among the shorter tenor TENCNT bonds. In Chinese TMT space, we also have buyrecommendations on MEITUA 3.0510/28/30 and MEITUA 0 04/27/28 (CB), XIAOMI 3.375 04/29/30 andXIAOMI 2.875 07/14/31 and WB 3.375 07/08/30, we believe they are proxy plays on domestic consumption aswell as less sensitive to incremental sanction measures from the US.Table 1: Tencent’skey financialsRMB mnRevenue-Value added services (VAS)-Marketing services-Fintech and business services-OthersGrossprofitAdjusted EBITDANet profitOperating cash flowCapex 21Q241Q25Change159,501180,02213%78,62992,13317%26,50631,85320%52,30254,9075%2,0641,129-45%83,870100,49320%69,25981,55918%42,65149,72517%72,35076,8896%14,35927,47691.4% Offshore Asia New Issues (Priced)Issuer/GuarantorSize (USD mn)Jinjiang Road and Bridge Construction &DevelopmentOffshore Asia New Issues (Pipeline)Issuer/GuarantorCurrencyNo Offshore Asia New Issues Pipeline TodayNews and market colorRegarding onshore primary issuances, there were 105 credit bonds issued yesterday with an amount ofRMB183bn. As for month-to-date, 846 credit bonds were issued with a total amount of RMB1,111bnraised, representing a 38.2% yoy increase[ADSEZ]Adani Ports receives USD150mn loan for capex from DBS Group[AZUPOE]Azure Power scouting for JV partner for up to USD666mn of renewable assets in India[CFAMCI]China Citic Financial AMCbuys HKD1bn (cUSD130mn) h