Group 1: Hindustan Construction Company Limited (HCC) - HCC secured a railway contract valued at ₹577.89 crore from the Northeast Frontier Railway, awarded to the HCC-VCCL Joint Venture, where HCC holds a 65% stake [1] - The project scope includes construction of four tunnels (Tunnel No. 9: 600 m, Tunnel No. 11: 350 m, Tunnel No. 13: 400 m, Tunnel No. 16: 600 m), cut-and-cover works, earthwork for railway alignment, and ancillary works between Piphema and Zubza sections under the Dimapur–Kohima New BG Line Project [2] Group 2: Savita Oil Technologies Limited (SOTL) - SOTL signed a strategic multi-year partnership with Mahindra & Mahindra Limited Farm Equipment Business, enhancing a relationship built over 25 years [3] - This partnership aims to strengthen product quality, customer confidence, and long-term value creation for India's farming and rural mobility ecosystem [3] Group 3: AION-Tech Solutions Ltd - AION-Tech Solutions Ltd announced the appointment of Biju Mathews as President and CEO, marking a strategic step towards organizational growth and long-term value creation [4] Group 4: Aries Agro - Aries Agro inaugurated a manufacturing unit at GIDC Sayakha Industrial Estate, Bharuch, Gujarat, with an investment of ₹34.99 crore, expected to commence production by the end of March 2026 [5] - The company currently has a capacity of 95,400 taps, with a utilization rate of 76.32% [5] Group 5: Hindustan Aeronautics Limited (HAL) - The Ministry of Defence signed a contract with HAL for the acquisition of eight Dornier 228 Aircraft for the Indian Coast Guard at a cost of ₹2,312 crore under the Buy (Indian) category [6] Group 6: J Kumar Infraprojects - J Kumar Infraprojects received a Letter of Acceptance worth ₹615.53 crore from NBCC (India) for the redevelopment of the GPRA Colony at Netaji Nagar, New Delhi [7] Group 7: Ceigall India - Ceigall India secured a new road project from NHAI for the construction of a four-lane highway in Bihar, involving the four-laning of the Sahebganj–Areraj–Bettiah section of NH-139W, totaling 78.942 km [8]

Core Viewpoint - The adjustment of GAIL's futures and options contracts is due to extraordinary dividends, impacting strike prices and settlement procedures starting February 5, 2026 [1]. Adjustment for Futures Contracts - All futures positions will be marked-to-market on the last cum-dividend date, February 4, 2026, based on the daily settlement price [2]. - Open positions will be carried forward at the daily settlement price minus ₹5, reflecting the dividend amount [2]. - Normal daily mark-to-market settlement will resume on February 5, 2026, the ex-dividend date [2]. Example of Futures Contracts - If 1 lot (3150 quantities) of GAIL February futures is bought at ₹162 on February 4, 2026, and the daily settlement price is ₹165, a mark-to-market profit of ₹3 per share is realized [3]. - On February 5, 2026, the position will be carried forward at ₹160 (i.e., ₹165 - ₹5), and if the closing price is ₹163, a mark-to-market profit of ₹3 per share will still be achieved [3]. Adjustment for Options Contracts - The full dividend value of ₹5 will be deducted from all cum-dividend strike prices on the ex-dividend date [4]. - Existing positions in strike prices will continue in the corresponding new adjusted strike prices [4]. Example of Options Contracts - The strike price of the ₹140 Call Option will be reduced to ₹135 on February 5, 2026, with positions continuing in the ₹135 Call Option [5]. - The lot size of the F&O contracts will remain unchanged [5]. - Shareholders holding GAIL equity shares as of February 5, 2026, will receive the dividend credited to their primary bank account within 30 to 45 days from the record date [5].

Summary of Investor Presentation: Future of Energy | Asia Pacific Industry Overview - The presentation focuses on the energy sector in the Asia Pacific region, particularly the role of natural gas in meeting rising power demand driven by AI and onshoring trends [1][4][5]. Key Insights - **Power Consumption Growth**: Power consumption is expected to grow at a compound annual growth rate (CAGR) of approximately 4.5% through 2030, which is 25% faster than the previous decade. Natural gas is projected to meet 15% of the incremental power demand, supporting renewables and nuclear energy [13][16]. - **Natural Gas Supply**: There is a significant glut of natural gas, which is beneficial as Asia is set to absorb a large share of the upcoming supply. This situation is expected to support affordability for policymakers [1][4]. - **AI Demand Impact**: The demand for power is being significantly influenced by the rise of AI technologies, which is driving up power consumption expectations [1][4][9]. Competitive Landscape - **Gas vs. Coal and Renewables**: Natural gas is becoming increasingly competitive with coal and renewables, particularly in the ASEAN region. The cost of gas-based electricity generation is nearing parity with coal, making it a viable option for peak loads [101][107]. - **Market Dynamics**: The presentation highlights that tight power markets globally are leading to higher prices and margins for generators, which is making natural gas a more attractive option [53][57]. Data Center Power Demand - **Growth Projections**: Asia's data center power demand is expected to grow at a CAGR of approximately 23% from 2023 to 2030, driven by increased AI inference demand and significant investments in the region [30][33]. - **Capacity Additions**: The region is projected to see nearly 60GW of data center capacity additions by 2030, indicating a substantial increase in power requirements [33][41]. Regional Insights - **Country-Specific Demand Growth**: - China and India are expected to drive significant portions of data center growth in Asia, with China leading due to its focus on chip self-sufficiency and commercialization [41]. - Other countries like Japan, Thailand, and Malaysia are also highlighted as key players in the gas market [22][23]. Economic Considerations - **Power Prices and Market Tightness**: The presentation notes that electricity markets are experiencing tightness, leading to higher power spreads and making natural gas more competitive [51][53]. - **Elasticity of Demand**: The elasticity of LNG consumption is expected to increase, with estimates suggesting that for every US$1/mmbtu decrease in LNG price, there could be an incremental demand increase of 3-3.5 million tons per annum [63][99]. Conclusion - The overall outlook for the energy sector in Asia Pacific is positive, with natural gas playing a crucial role in meeting rising power demands driven by technological advancements and changing market dynamics. The competitive landscape is shifting, favoring gas as a key energy source in the region [1][4][5][13][16].

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **natural gas industry in Asia**, particularly the impact of the US shale revolution on energy consumption and infrastructure in the region [1][2][9]. Core Insights and Arguments - **Market Transformation**: The expansion of US shale gas is reshaping Asia's energy landscape, with a projected **US$220 billion** in market capitalization opportunities and a significant acceleration in AI adoption due to cheaper gas [1][2]. - **Gas Infrastructure Readiness**: Asia's gas infrastructure is better prepared than ever to absorb the upcoming gas glut, with **US$120 billion** invested in gas infrastructure over the past five years, complementing US export infrastructure [2][3]. - **LNG Price Forecasts**: Asian LNG price forecasts have been lowered by **25-30%** for 2026-2030, with expected costs dropping to **US$7/mmbtu**, which is near the average during the 2016-2020 expansion cycle [3][21]. - **Demand Elasticity**: Asia's consumption elasticity is expected to be **twice** that of the previous cycle, with consumer annual bills projected to drop by **US$100 billion** by 2030, significantly benefiting price-sensitive markets like India, China, Japan, and Vietnam [4][10]. - **New Demand Creation**: At **US$7/mmbtu**, an estimated **120 million tonnes per annum (mntpa)** of new demand for natural gas is anticipated in Asia, driven by competitive pricing against alternatives [4][48]. Investment Opportunities - **Preferred Stocks**: Recommendations include companies like **GAIL** in India, **Osaka Gas** and **Tohoku Electric** in Japan, and **Gulf Energy** in Thailand, which are expected to benefit from the multiyear theme of rising gas demand [5][52]. - **Sector Performance**: Gas midstream and power generation equities are expected to benefit the most from the gas glut, with potential earnings upside of **25%** across Asia [2][52]. Additional Important Insights - **Infrastructure Expansion**: An estimated **100 mntpa** of new natural gas import infrastructure and **30,000 kilometers** of new gas pipelines are expected to be operational by 2028, primarily in India and Southeast Asia [13][64]. - **AI and Power Needs**: The demand for power from AI and data centers is expected to drive the need for **20 GW** of new gas-based power generation in Asia, stabilizing power grids and supporting renewable energy adoption [11][16]. - **Risks**: A key risk to the outlook is potential delays in project start-ups, which could affect gas prices and market dynamics [17]. Conclusion - The natural gas market in Asia is poised for significant growth, driven by infrastructure investments, competitive pricing, and rising demand from various sectors, particularly AI and industrial applications. The strategic positioning of companies within this landscape will be crucial for capitalizing on the anticipated market changes.

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Asia Oil & Gas** sector, particularly the dynamics of **natural gas supply and demand in China** and the implications of increased Russian gas imports through the **Power of Siberia 2 (PoS-2)** pipeline [1][2][3][10]. Core Insights and Arguments - **Gas Demand Projections**: China's gas demand is projected to peak at **563 bcm/y by 2035**, which is **5 years earlier** than the estimates from state-owned oil and gas majors, who expect it to peak at **620 bcm/y** [2][25]. - **Slowing Demand Growth**: The growth rate of gas demand in China may slow due to a shift towards electrification and a peak in the coal-to-gas transition. The apparent consumption of natural gas dropped **0.3% year-on-year** in the first ten months of 2025, with LNG imports declining by **16% year-on-year** [2][16]. - **Russian Gas Influx**: By 2035, it is estimated that **68 bcm** of natural gas could be delivered to China from Russia, representing a **62% increase** from the **42 bcm** expected in 2024. This would account for **26%** of China's total gas imports [3][4][10]. - **Impact on Pricing**: The influx of Russian gas, particularly through PoS-2, could exert downward pressure on regional gas prices, as China consumes **28%** of all LNG imports in Asia [4][10]. - **Utilities and Infrastructure Benefits**: Improved gas supply sufficiency could benefit downstream utilities by lowering input costs, enhancing margins, and increasing competitiveness against alternative fuels. Target prices for companies like **ENN** have been raised from **HKD 74** to **HKD 79** based on lower debt costs [5][10]. Additional Important Insights - **Supply-Demand Scenarios**: The report examines various scenarios for gas demand and supply, considering factors such as industrial output and the development of green liquid hydrocarbons. A potential supply glut in 2026 and beyond is anticipated, leading to moderation in pricing [2][10]. - **Long-term Outlook**: The report suggests that if energy transition and piped imports from Russia ramp up quicker than expected, the availability of gas could become looser after 2030, reducing reliance on LNG imports [2][10]. - **Investment Recommendations**: The report recommends buying stocks of **ENN**, **Kunlun**, **PetroChina**, and **GAIL**, which are expected to benefit from the evolving gas supply landscape [5][10]. Conclusion - The evolving dynamics of China's natural gas market, influenced by increased Russian imports and a shift towards electrification, suggest a potential oversupply scenario in the coming years. This could lead to lower prices and create opportunities for utilities and infrastructure operators in the region [2][10].

Core Viewpoint - Petronet LNG Ltd has secured a ₹12,000-crore term loan from a consortium of banks to finance its petrochemicals project, following a competitive bidding process [2]. Group 1: Financial Details - The loan is provided by a consortium comprising State Bank of India and Bank of Baroda, with each bank sanctioning ₹6,000 crore [2]. - The financing will also support other capital expenditure requirements beyond the petrochemicals project [2]. Group 2: Company Overview - Petronet LNG Ltd is India's largest liquefied natural gas (LNG) importer and is a joint venture involving GAIL, Indian Oil, and Bharat Petroleum Corporation, each holding a 12.5% stake [2]. - The company operates LNG regasification terminals located in Dahej, Gujarat, and Kochi, Kerala, with a total regasification capacity of 22.5 million metric tonnes per annum [2].

Core Insights - The event emphasized the concept of "energy addition" rather than "energy transition," highlighting the need for increased energy production to meet future demands [1][3] - There is a strong long-term demand forecast for all forms of energy, with significant growth expected in renewables, LNG, and oil [3][8] - Investment in energy infrastructure is critical, with a projected need for $18.2 trillion in oil-related investments from 2025 to 2050 [8][11] Energy Demand and Supply - Electricity demand is expected to quadruple due to the growth of data centers, urbanization, and the addition of 2 billion air conditioners by 2040 [2][3] - Oil demand is projected to remain above 100 million barrels per day beyond 2040, with a forecast of 123 million barrels per day by 2050 [3][8] - The global airline fleet is expected to double by 2040, contributing to increased energy demand [2] Investment Landscape - There is a consensus among industry leaders that capital investment has been insufficient, particularly in the oil sector, leading to potential supply challenges [9][11] - The need for deregulation to respond to price signals and ensure long-term demand satisfaction was emphasized [10] - Investment in renewables and lower carbon technologies accounted for nearly two-thirds of the $3 trillion invested last year, indicating a shift in capital allocation [12] Natural Gas Market - Natural gas is being reframed as a "destination fuel" rather than a transitional one, with expectations of rising demand despite new supply coming online [13][14] - The global gas market is experiencing a shift, with Europe and Asia competing and complementing each other in LNG contracts [17] Data Centers and Renewable Energy - The MENA region is being positioned as a prime location for sustainable data centers, leveraging low-cost renewable energy and favorable policies [23][24] - A report highlighted the potential for exporting data center capacity from the Gulf region, focusing on areas with existing renewable energy infrastructure [25][26]

Report Industry Investment Rating - Not provided Core Views - PX has limited downside space, and it is a short - term volatile market. After PXN rises to $250/ton, factories are advised to hedge appropriately. The supply and demand of PX are slightly tight [1][8][9]. - PTA has limited downside space, with demand expected to improve marginally. It is a volatile market, and short positions should be reduced [1][9]. - MEG has a better demand expectation and may rebound in the short - term. Short positions should be reduced [1][10]. Summary by Related Content Market Data - **Futures Data**: The closing prices of PX, PTA, MEG, PF, and SC futures on the previous trading day were 6332, 4414, 4004, 6070, and 437.7 respectively, with daily changes of 64, 30, 1, 42, and 1.9, and daily change rates of 1.02%, 0.68%, 0.02%, 0.70%, and 0.44% respectively. The month - spreads of PX1 - 5, PTA1 - 5, MEG1 - 5, PF12 - 1, and SC11 - 12 also had corresponding changes [2]. - **Spot Data**: The previous trading day's spot prices of PX CFR China, PTA in East China, MEG, naphtha MOPJ, and Dated Brent were $784.33/ton, 4325 yuan/ton, 4090 yuan/ton, $540/ton, and $61.09/barrel respectively, with corresponding price changes [2]. - **Spot Processing Fee**: The previous trading day's PX - naphtha spread, PTA processing fee, short - fiber processing fee, bottle - chip processing fee, and MOPJ naphtha - Dubai crude oil spread were $246.17/ton, 144.83 yuan/ton, 380.77 yuan/ton, 154.12 yuan/ton, and - $4.34/ton respectively, with corresponding changes [2]. Market Dynamics - **PX**: The naphtha price was stagnant at the end of the session. PX price was also stagnant, with no transactions in the negotiations. The PX price was estimated at $784/ton CFR, up $1 from last Friday. Some market participants believe that the price increase is driven by sentiment or a natural rebound. The operating rate of Chinese PX factories decreased from about 87.5% to about 85% in the week ending October 17. Market participants suggest reducing PX production due to low PTA activity [2][3][5]. - **Toluene and Mixed Xylene**: In the week ending October 17, the prices of toluene and mixed xylene increased slightly. Refinery shutdowns and supply limitations continued to support the market. The overall tightness is expected to last until the end of October [5]. - **PTA**: The PTA futures fluctuated and consolidated, and the spot market negotiation atmosphere was average, with a weak spot basis [7]. - **MEG**: From October 20 to October 26, the arrival quantities at Zhangjiagang, Taicang, and Shanghai ports were about 17,000 tons, 36,000 tons, and 0 tons respectively, and the planned arrival quantity at some main ports was about 53,000 tons [7]. - **Polyester**: The sales of polyester yarn in Jiangsu and Zhejiang increased locally, with an estimated average sales rate of 160 - 170% by 3:30 pm. The sales of direct - spun polyester staple fiber were average, with an average sales rate of 66% by 3:00 pm [8]. Trends and Suggestions - **PX**: It is a short - term volatile market. After PXN rises to $250/ton, factories are advised to hedge appropriately. Pay attention to the impact of Yulong Petrochemical's possible reduction in CDU load on aromatic hydrocarbon production. PX supply and demand are slightly tight, and oil prices have recovered recently [8][9]. - **PTA**: Demand is expected to improve marginally, and it is a volatile market. Short positions should be reduced. Pay attention to the commissioning of Xin凤鸣's new PTA device and the progress of India's new PTA device GAIL. The profit of the polyester sector has recovered, and overall consumption in the industry chain is expected to improve [9]. - **MEG**: Short positions should be reduced. Pay attention to the commissioning and maintenance of relevant devices and the possible planned - out maintenance of coal - based devices due to coal price changes [10].

Report Industry Investment Rating No relevant content provided. Core Views of the Report - PX is expected to enter a short - term volatile market with expanding profits, and it is recommended to hold long PXN positions [3]. - PTA shows a weak trend, and it is advisable to hold long PTA and short PX positions and 1 - 5 backwardation [4]. - MEG has a weak trend due to cost collapse, and it is recommended to reduce short positions below 4000 yuan/ton and maintain 1 - 5 backwardation [5]. - The polyester industry's consumption is expected to improve as the weather turns cold and with the marginal increase in Double Eleven orders, but the long - filament segment still faces pressure [3][4][5]. Summary by Relevant Catalogs PX Valuation and Profit - PXN is at 246 dollars/ton (+16), and the PX - MX Korea FOB spread is 102 dollars (+3). The decline in crude oil prices has led to the expansion of PX profits again [3]. - The unilateral PX price has been continuously decreasing due to negative demand feedback and weak cost support. The PX outer - market monthly spread is generally stable, while PXN has weakened significantly [19][25]. - Overseas oil product cracking spreads are strong, supporting overseas aromatic hydrocarbon valuations. The PX - MX spread has weakened significantly, and the Asian MX blending oil market has recovered [29][42]. Supply and Demand, Inventory - This week, the domestic PX plant operating rate is 84.9% (-3.5%), and the Asian overall load operating rate is 78% (-1.9%). Multiple overseas plants are scheduled for maintenance, and the supply - demand situation is slightly tight [3][55]. - In August, the PX import volume was 880,000 tons, and the import volume from South Korea increased significantly. The estimated import volume in September is 850,000 tons [56]. - In September, the PX monthly inventory in Longzhong dropped to 3.92 million tons (+30,000 tons) [70]. PTA Valuation and Profit - The 1 - 5 monthly spread of PTA is in backwardation. The processing fee is at a low level, weakening the plant's willingness to start operations [76][82]. - The PTA basis has declined due to negative demand feedback, sufficient supply in East China, and the planned commissioning of new plants [77]. Supply and Demand, Inventory - The PTA operating rate is maintained at around 76.7% (+2.3%). The new Fengming PTA plant is planned to start operation this week, and the production volume this week is 1.45 million tons. Attention should be paid to the commissioning progress of the new Indian PTA plant GAIL [4][86]. - In August, the PTA export volume was 300,000 tons, and the export profit has decreased [90]. - The PTA inventory is at a low level [103]. MEG Valuation and Profit - The MEG basis is maintained at around 70 yuan/ton. MEG's valuation relative to ethylene oxide, styrene, and plastics has rebounded to the highest level this year [119][124]. - The profit of coal - based MEG plants is 47 yuan/ton (-171), while oil - based plants continue to operate at a loss [127]. Supply and Demand, Inventory - The MEG operating rate has reached a new high this year. This week, the operating rate continued to rise, and some plants will undergo maintenance and shutdown next week, which may cause a slight decline [129][130]. - In August, the MEG import volume was about 590,000 tons, and it is expected to recover in September [131]. - Multiple overseas MEG plants are under maintenance, and the European arbitrage window is gradually closing [138][141]. - The MEG port inventory has increased marginally [146]. Polyester Segment Valuation and Profit No relevant content provided. Supply and Demand, Inventory - The polyester operating rate is 91.4% (-0.1%). The profit of the polyester segment has been repaired, and the bottle - chip segment with successful inventory management is expected to increase its load, but the long - filament segment still faces pressure [150][153]. - The polyester production volume has increased by 8% year - on - year [157].

Market Sentiment and Support - Indian markets are positioned well amid global uncertainties, with Asia and GEM funds increasing their positions in India[1] - Domestic policy support is strong, with government capital expenditure reaching a record high in Q1 2025 and the central bank cutting benchmark rates by 50bps and cash reserve ratio by 100bps[2] Earnings Growth Outlook - Q1 2025 earnings for FTSE India (excluding commodities) showed a 10% year-on-year increase, a recovery from previous quarters[3] - Despite the positive Q1 results, a sustained recovery in earnings growth is expected to take several more quarters, with consensus estimates for 2025 earnings growth at 11%[4] Sector Performance - Strong growth was reported in industrials, healthcare, and telecom, while consumer discretionary saw a 14% EPS growth driven by retail and services[3] - FMCG companies faced challenges with weak demand and increased competition, leading to low single-digit growth in that sector[3] Investment Strategy - The report recommends five stocks: Godrej Consumer Products (GCPL), United Phosphorus Limited (UPL), GAIL, Ujjivan Small Finance Bank, and HDFC Life, focusing on those with good growth potential[5] - GCPL is noted for its innovation and market share gains in home insecticides, while UPL is expected to recover due to improved margins and lower debt[6] Valuation and Risks - The Sensex index target for the end of 2025 is set at 82,240, indicating a neutral stance on Indian equities from an Asian perspective[7] - Elevated valuations and concerns about growth outlook remain, despite recent market rebounds[5]