14 August 2025 Asia EV Battery Equities Turning the tide – supply-side boost Asia From demand fatigue to supply-driven revival: While weak demand for electric vehicles (EV) has long been priced in, supply-driven price movements, such as a recent surge in lithium prices, could inject fresh momentum into the sector. Over the past three years, a deeper slump with the reversal of policy tailwinds has caused broad-based cuts to earnings, production, and investment guidance across battery supply chains. We now se ...

Group 1 - Public Storage (PSA) and Ki Corporation have made a revised, non-binding offer to acquire Abacus Storage King at A$1.65 per stapled security, up from A$1.47 [1][8] - The consortium aims to acquire all outstanding stapled securities of Abacus not held by Ki Group, with each party set to own a 50% stake if the acquisition is completed [2] - Abacus Storage King operates around 126 properties, 21 development sites, and 75 managed or licensed locations, making it a leading self-storage operator in Australia and New Zealand [2] Group 2 - Public Storage plans to leverage its collaboration with Shurgard Self Storage Limited to enhance Abacus's customer experience, optimize operations, and accelerate portfolio expansion [3] - The self-storage market in Australia and New Zealand is characterized by strong population growth and stable economic conditions, presenting attractive opportunities for market consolidation [4] Group 3 - Public Storage has acquired 195 facilities with 14.5 million net rentable square feet for $3.1 billion from the beginning of 2023 through the first quarter of 2025, contributing a net operating income of $35.8 million in Q1 2025 [6] - The company is well-positioned to capitalize on potential opportunities due to solid access to capital [6] Group 4 - Despite the growth prospects, the industry faces challenges such as soft demand and lower occupancy rates, with expectations for a decline in the 2025 weighted average square foot occupancy to 91.8% [7] - High supply in the market is increasing competition, which affects pricing power and margins [7]

Core Viewpoint - Telenor has announced the acquisition of GlobalConnect's consumer business in Norway for NOK 6.0 billion, aiming to strengthen its position in the Norwegian fibre market [1][3]. Group 1: Strategic Importance - The acquisition includes fibre infrastructure and approximately 140,000 fibre customers, serving as a key component in Telenor's long-term strategy to enhance its fibre footprint in Norway [3][5]. - Telenor's market share of fibre subscriptions is expected to increase from 22% to 29% as a result of this transaction, based on 2024 NKOM data [7]. Group 2: Customer and Employee Benefits - Customers will gain access to a variety of services, including advanced digital security and premium home networks, supported by Telenor's high-quality connectivity [4][5]. - Telenor emphasizes its commitment to continued investments in fraud prevention, secure WiFi, and digital protection, enhancing the overall customer experience [4]. Group 3: Financial Aspects - GlobalConnect's consumer portfolio generated revenues exceeding NOK 0.6 billion in 2024, with Telenor expecting an EBITDA of around NOK 0.3 billion in each of the first two years post-integration [8]. - Annual post-integration cost savings are estimated at approximately NOK 0.15 billion, driven by efficiencies in sales, operations, and maintenance [9]. - Integration capital expenditures are projected to be around NOK 0.3 billion from 2026 to 2028, primarily incurred in the first two years [9].

Company Overview - Cal-Maine Foods is the 1 U S producer and distributor of fresh eggs with approximately 20% retail egg market share[6,11] - The company sold 11 billion dozens of eggs in fiscal year 2022[11] - Cal-Maine Foods has a significant presence in the southern U S [11] Financial Performance - The company's revenue for fiscal year 2022 was $18 billion[11] - EBITDA for fiscal year 2022 was $235 million[11] - In the second quarter of fiscal year 2023, revenue reached $802 million and EBITDA was $283 million[34] Market Trends and Production - Specialty egg sales accounted for 39% of category sales in fiscal year 2022[11] - Cal-Maine Foods' produced-to-sold ratio improved to 93% in fiscal year 2022 from 84% in fiscal year 2019[71] - Approximately 34%-35% of the company's flock is currently housed in cage-free conditions[57] Strategic Initiatives - The company has committed approximately $685 million to expand cage-free capabilities since 2008[58,91] - Cal-Maine Foods aims to align sales with cage-free uptake and meet retailer commitments[60,138] - The largest customer represents 25% of revenue and the top-3 customers represent 42% of revenue[63]

Summary of the Conference Call on China Healthcare: Medical Devices Industry Overview - The report focuses on the **China Healthcare** sector, specifically the **Medical Devices** industry, and discusses the impact of **Volume-Based Procurement (VBP)** policies on various product categories from 2025 onwards [1][2]. Key Points and Arguments VBP Expansion and Product Coverage - VBP has expanded significantly since its initiation in 2020, now covering a majority of product categories including medical consumables, IVD, insulin, and TCM products [2][11]. - The **6th batch of national VBP** is set to launch in the second half of 2025, which may include high-value consumables and TCM products [2][11]. Policy Maturity and Pricing Impact - The VBP policy has matured, with established rules for initial coverage and renewals, including grouping, ceiling prices, and revival mechanisms [3][14]. - The impact on ex-factory prices for consumables is expected to be largely one-time, focusing on regulating channel markups rather than ongoing price erosion [3][19]. Market Dynamics and Consolidation - Leading domestic players are positioned to consolidate market share post-VBP, benefiting from increased hospital coverage and better alignment with incentives compared to multinational corporations (MNCs) [4][31]. - Smaller players are likely to lose market share due to the competitive pressures from larger domestic firms [4][31]. Stock Implications - Preference is given to companies where the VBP impact is already priced in, with expectations of normalized growth and market share gains, such as **Eyebright**, **SNIBE**, **AK Medical**, and **Weigao** [5]. Earnings Volatility and Inventory Management - Near-term earnings volatility is anticipated for products with high channel inventory, particularly in categories like artificial joints [21]. - Companies like **AK Medical** have issued profit warnings due to inventory destocking and impairment losses [21]. Pricing Trends and Margin Stability - Historical data shows that pricing cuts from VBP have become more moderate over time, with average cuts decreasing from 76% in 2020 to 41% in 2023 for drug-eluting stents [19][30]. - Post-VBP margins for Chinese players have stabilized at 15-20%, comparable to global peers [20][30]. Product Upgrades and Market Share Changes - There is a trend towards product upgrades post-VBP, with higher-end products gaining market share due to increased affordability and reimbursement coverage [32][34]. - MNCs have seen a decline in market share across various product categories, while domestic players have gained significantly [34][36]. Future Considerations - The report highlights the need for clarity on the impact of VBP on large-scale imaging equipment and the upcoming DRG/DIP rules set to roll out in 2025 [46][49]. - Potential savings from VBP are estimated at **Rmb 80 billion** for the insurance fund, contributing to overall healthcare expense reductions [50][53]. Additional Important Insights - The report emphasizes the importance of strategic shifts by MNCs, such as J&J's move to direct sales, which has not yielded expected results [31]. - Companies are advised to monitor the evolving landscape of VBP and its implications for pricing strategies and market positioning [59][64]. This summary encapsulates the critical insights from the conference call regarding the current state and future outlook of the medical devices sector in China, particularly in relation to VBP policies and their implications for market dynamics and company performance.