Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The new CHIFEN 7.4 02/13/29 was 0.8-1.0pt lower this morning from RO atpar amid light flows. Japanese AT1s traded 0.1pt higher. Asian IGspacewas overall 1-2bps wider. VNKRLE 27’ and 29’ rose another 2.8-2.9pts.LASUDE 26 was 0.8pt higher. HYSAN 4.85 Perp/ACPM 4.85 Perp/VLLPM29 were 0.7-0.8pt lower. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk PTTGC:Debt reduction continues, leverage up on lower EBITDA. Seebelow. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk JD: JD.com unveiled a new express delivery service, JoyExpress, to expandits European presence. It will support Joybuy, the company’s new onlineretail business in Europe, which is scheduled to launch next month. JD 26-50s were unchanged this morning. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Trading desk comments交易台市场观点 Yesterday,in Greater China IG space, MEITUA 32-35s/KUAISH 36 widened2-4bps, and LINREI/HKE 36s traded 1-2bps wider. As for higher-beta credits,FRESHKs closed 1-3bps wider.EHICAR’27 lost 4.2pts while EHICAR’26gained 0.5pt.Media reported that EHICAR will extend the maturity forEHICAR with 20pts upfront cash repayment.As per our discussion withEHICAR, it is yet to have a finalized refinancing plan for EHICAR’26.InChinese/HK properties, VNKRLE ’27 and ‘29 rallied another 3.0-3.1pt. TheNWDEVL/VDNWDL complex overall gained 0.2-1.3pts.FUTLAN 28/FTLNHD 26-27 increased by 0.1pt. DALWAN 28s/HYSANs were 0.1-0.4pthigher. CHJMAO 26-29 closed 0.1pt lower. Jinmao plans to issue offshorebonds after Chinese New Year to refinance its USD600mn of CHJMAO04/09/26.In SE Asian space, PTTGC 31-52s tightened 3-7bps, while PTTGCPerps closed unchanged. See comments on PTTGC below. ADSEZ 27-41ssurged 0.2-0.9pt after Adani Ports and Special Economic Zone launched atender offer to purchase up to USD345.137mn of ADSEZ 4 07/30/27 and upto USD150mn of ADSEZ 3.1 02/02/31. In contrast, VLLPM 27-29 wereanother 0.5-1.8pts lower. VLLPMs have dropped c15.0pts since the end ofJan’26, when the Philippines SEC filed a criminal complaint against VistaLand’s sister company Villar Land Holdings and former senator Manuel B.Villar, who is also Vista Land’s chairman. In KR space, SKBTAM 29 was 1bptighter amid mixed two-way exchanges. On the other hand, belly to longercorporate notes were weaker: POHANG 36 widened 2bps, and HYNMTRcurve and longer than 5yrs FRNs widened 2-3bps. In JP space, NOMURA 7Perp was 0.1pt higher.Yankee AT1s gained 0.1pt driven by Chinese/AsianAMs buying on-the-run and front end issues, but the strength faded into theLondon session.In the Middle East,BSFRs/FABUHs edged 0.1-0.2pt higher.Seeour comments on BSFR on Monday,and on FABUH yesterday.ARAMCO 30-56s rose 0.2-1.1pts. Long-end KSAs gained 0.1-0.6pt. In LGFV space, we saw sporadic buyingacross AAA-guaranteed, IG rated, as well as short dated papers.Meanwhile, non-LGFV CNH issues like CHGRID 35/RLCONS 35 traded 0.1-0.2pt higher. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-0.33%), Dow (+0.10%) and Nasdaq (-0.59%) were mixed on Tuesday. UST yield was lower onTuesday. 2/5/10/30 year yield was at 3.45%/3.70%/4.16%/4.78%. Desk Analyst Comments分析员市场观点 PTTGC:Debt reduction continues, on lower EBITDA We maintain buy on PTTGC 6.5 Perp and PTTGC 7.125 Perp for attractive carry in PTTGC curve. At 101.3,PTTGC 6.5 Perp (first coupon rest in Dec’30) is tradingat 6.2% YTC, offering a yield pick-up of c130bps vs itssenior PTTGC 2.98 03/18/31 with 3 months shorter in “tenor”, as well as c20bps over TOPTB 6.1 Perp (firstcoupon reset in Apr’31). At 102.9, PTTGC 7.125 Perp (first coupon reset in Sep’35) is tradingat 6.7% YTC,and is the highest yielding paper in the PTTGC curve. Despite the perps’ coupon will only be reset with minimalstep-ups, we believe that PTTGC remains incentivized to call and replace the perps to preserve the hybridmarket access and equitycredit recognition. In FY25, PTTGC’s total revenue fell 20% yoy to THB484.9bn, primarily due to lower upstream sales revenueas prices of petroleum and aromatics productdeclined amid global trade tensions, alongside lower salesvolumes. The volume decline largely reflected the planned maintenance at the MEG plant during 1H25 andshutdowns at the Refinery and the Aromatics unit 2 in the 4Q25. Following the Vencorex Group restructuring since end-2024 and tighter cost control, variable cost, fixedoverheads, and SG&A were lower in FY25. These savings were offset by higher stock losses and lower otherrevenue, resulting in a 46% yoy drop in EBITDA to THB18.3bn. Asset impairment declined to THB2.5bn fromTHB7.9bn in FY24, and the net loss was narrowed to THB15.6bn from THB30.0bn in FY24. On cash flow,PTTGC generated 26% yoy higher in operating cash inflow of THB40.8bn while capex declined11% yoy to THB14.0bn.As of Dec’25, PTTGC had cash and cash equivalent of THB18.9bn, down fromTHB32.7bn as ofDec’24, reflecting net debt repayments. Total debts decreased to