固定收益信用评论

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 This morning, the new MIZUHO 30-47s and the new SUMIBK 32-47s wereunchanged to 2bps wider from ROs. Chinese IG were unchanged to 1bpwider. We saw front-end buyers for AT1s and two-way flows for LGFVs.GLPSP 7.865 Perp edged 0.3pt higher, while GLPSP 4.6Perp lost 0.6pt. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk Jerry Wang王世超(852) 3761 8919jerrywang@cmbi.com.hk CWAHK:Weaker FY26 performance due to slower installation, maintenance,and construction activities. Maintain buy on CWAHK 5.875 10/22/30, which Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk SUNOTG:Sunny Optical priced 5yr senior unsecured Dim Sum bond at2.15%, tightened from IPT at 2.65%. The issue size is RMB2.7bn on an orderbook of over RMB7.5bn. See our comment on the new issue in our dailyyesterday. The new SUNOTG 2.15 07/07/31 rose 0.1pt this morning. Trading desk comments交易台市场观点 Yesterday,JP financial IG credits widened 2-3bps ahead of the new MIZUHOand SMFG USD issues.JP insurance subs and European AT1s closedlargely unchanged amid light two-way flows, mainly in the front end of thecurve among AMs and PBs.The KR IG space was largely unchanged inspreadsamid better selling in front-end HYNMTRs.Chinese TMT As for higher-yielding papers, NWDEVLs continued to lead the space androse up to 3.5pts. There were chatters NWD will launch a right issue, but thecompany still has not responded to this matter. CWAHK 30 was unchanged.ChinaWater Affairs FY26 EBITDA dropped 10.4%yoy to HKD4.2bn(cUSD539.4mn).See comments below.On the other hand,FTLNHD29/NDPAPE 14 Perp lost 0.6pt. Nine Dragons Paper received USD74.3mnof the principal amount of NDPAPE 14 Perp validly tendered in the tenderoffer, representing c18.6% of the outstanding principal amount. WESCHI 28- CMBI Fixed Incomefis@cmbi.com.hk Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (+1.18%), Dow (+0.59%) and Nasdaq (+2.07%) were higher on Monday. 2/5 yearUSTyield werehigher on Monday. 2/5/10/30 year yield was at 4.10%/4.14%/4.38%/4.86%. Desk Analyst Comments分析员市场观点 CWAHK:Weaker FY26 performance due toslower installation, maintenance, and construction activities Yesterday, China Water Affairs Group (CWAHK) reported its FY26 results. Its operating performance weakenedcompared to FY25, primarily due to slower installation, maintenance, and construction activities amid thecontinued softness in China’s real estate market. That said, we take comfort in CWAHK’s stable funding accessacross both onshore and offshore markets. We maintain buy on CWAHK 5.875 10/22/30, in view of its utility-type business profile and diversifying funding access.At 95.7, CWAHK 30 is trading at YTM of 7.0%.We view In FY26, CWAHK’s revenue declined 11.9% yoy to HKD10.3bn, reflecting weaker activity in installation,maintenance and construction. Gross profit fell 19.2% yoy to HKD3.6bn, with gross margin narrowed to 34.4%from 37.8% in FY25.EBITDA decreased 9.7% yoy to HKD4.2bn, while EBITDA margin remained broadly As of Mar’26, CWAHK had cash and cash equivalent of HKD4.2bn, increased from HKD4.0bn as of Sep’25.Total debt increased 6.9% yoy to HKD26.6bn, while net debt rose 7.3% yoy to HKD22.4bn, over the sameperiod. Total debt/EBITDA rose to 6.3x from 5.9x as per our calculation, driven by lower EBITDA and higherdebt levels.Cash to short-term debts down to 0.6x from 0.9x as of Sep’25. We view CWAHK’s funding access as well supported across both onshore and offshore markets. Besides, webelieve CWAHK’s near-term refinancing pressure has eased notably following the redemption of CWAHK 26,in view of the next major maturity is RMB500mn onshore MTN due in Aug’27.Recalled that CWAHK tappedUSD150mn CWAHK 30 in Apr’26 to fund thetender offerfor its USD350mn CWAHK 26 maturingin May’26.CWAHK also issued RMB500mn onshore MTN in Jan’26 at a 3.2% coupon, and Dim Sum bond issue of News and market color Regardingonshoreprimary issuances, there were 67 credit bonds issued yesterday with an amount ofRMB41bn. As for month-to-date, 2,384 credit bonds were issued with a total amount of RMB2,332bn Indonesia’s government will increasefunds infusion into state-owned banks to support economicacceleration [CHIOLI]S&P revised the outlook of China Overseas Land & Investment to negative from stable following [GLMTMO]Moody’s upgraded Golomt Bank by one notch to B1 from B2 on improvement in asset quality,capitalization, liquidity metrics; outlook stable [GRNCH]Greentown China onshore unit plans to raise RMB9bn via onshore bonds [HYUELE]SK Hynix plans to invest KRW1,100tn (cUSD713bn) to build new semiconductor clusters [JD]JD.com ventures into robot repair business in Europe amid rising sales [NDPAPE]Nine Dragons Paper received USD74.3mnof the principal amount of NDPAPE 14 Perp validlytendered in the tender offer, representing c18.6% of the outstanding principal amount. Final tender [NWDEVL]Joint owners New World Development and Ares Mana