President Donald Trump signed an executive order implementing his trade agreement with Japan, under which the US will impose a maximum 15% tariff on most of its products, including automobiles and parts https://t.co/SRjakzImoz ...

Financial Data and Key Metrics Changes - The company reported approximately $145 million in revenues from traditional energy infrastructure markets last year, with EV thermal barrier business growing from about $7 million in 2021 to over $300 million last year [7][10] - The company targets gross margins of over 35% and aims for at least 25% EBITDA margins, achieving slightly more than that last year [8][10] - For the current year, the company expects to generate just over $300 million in revenues across both segments while maintaining meaningful EBITDA [10] Business Line Data and Key Metrics Changes - The energy industrial business has three main applications: Pyrogel for hot processes, Cryogel for cryogenic processes, and pipe-in-pipe insulation for subsea pipelines [13][14] - The company has an installed base of about $1.5 billion worth of products, with a maintenance cycle that drives a healthy base load of business [15][16] - Long-term growth for the energy industrial segment is projected between 10% and low teens, with opportunities for niche applications [17][18] Market Data and Key Metrics Changes - The company has secured business with several major automotive manufacturers, including GM, Toyota, Audi, Scania, Volvo Trucks, and Mercedes Benz, indicating a strong market presence [29][30][31] - GM has invested heavily in EV capacity and has gained significant market share, with the Chevy Equinox being the second best-selling EV in the U.S. [36][37] - The company is positioned to benefit from increasing incentives for U.S.-made EVs and components, which may enhance its market opportunities [40][41] Company Strategy and Development Direction - The company is focused on leveraging its advanced materials platform and extensive patent portfolio to maintain a competitive edge in the aerogel market [8][12] - There is an emphasis on expanding applications beyond the current segments, with plans to assess additional opportunities over the next 12 to 18 months [18] - The company aims to maintain its gross margin targets while navigating supply chain challenges and increasing production capacity [43][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of recent policy changes on EV volumes but remains optimistic about long-term consumer preferences for EVs [9][10] - The company is confident in its ability to return to 35% gross margins, citing improvements in cost structure and fixed cost absorption [45][46] - Management believes that the investments made by GM and other OEMs in EVs will continue to drive demand for their products [39][42] Other Important Information - The company has developed a method to encapsulate aerogel to address concerns about silica dust in battery pack plants, enhancing its product offering for EV applications [22] - The company has been proactive in securing external manufacturing partnerships to scale production while maintaining quality control [12][44] Q&A Session Summary Question: What is the long-term growth target for the energy industrial segment? - The company expects growth between 10% and low teens, focusing on developing niche applications [17] Question: How does the company differentiate its aerogel products from competitors? - The company emphasizes its unique chemistry and manufacturing process that results in superior mechanical properties and thermal isolation [11] Question: What is the current status of GM's EV production forecast? - GM has invested significantly in EV capacity and is gaining market share, with the Chevy Equinox being a strong performer [36][37] Question: How does the company plan to maintain its gross margin targets? - The company is focused on improving fixed cost absorption and has shown progress in achieving its margin goals [45][46]

Report Industry Investment Rating - Not provided Core Viewpoints - The secondary IG market in Japan faced pressure due to heavy supply, with new issues widening and perpetuals under pressure. Chinese IG also widened, while some Chinese property and Macau gaming bonds showed mixed performance. Fosun's new bond issuance and tender offer are part of its debt management, and its credit profile is improving [2][8][11] Summary by Relevant Catalogs Trading Desk Comments - Yesterday, there were 6 Japanese and 1 Indian bond in the IG new issuance pipeline, pressuring the Japanese secondary IG market. New issues like JERA/HOKKEL/MITSCO widened 2 - 4bps, and perpetuals were pressured by the bear - steepening USD yield curve. Japanese insurance hybrids/AT1s and Yankee AT1s/insurance hybrids declined. China IG widened 2 - 4bps, with better selling on TMT names. Some bonds like FOSUNI 26 - 28s and DALWAN 11 02/13/26 rose. In Chinese properties and Macau gaming, bonds had mixed performance. TW lifers tightened, Korea IG widened, and SEA space had various movements [2] - This morning, new bonds like MUFG 31 - 36/MUFG 6.35 Perp had different price changes. FOSUNI 6.8 09/09/29 was 0.3pt higher, and ADANEM 30 - 31s were 0.2 - 0.5pt higher [3] - In the LGFV space, there was a mixed two - way session with more selling, and bonds repriced 30 - 50bps wider from YTD tights [4] - The top performers included BIMLVN 7 3/8 05/07/26 with a 1.3 price increase, while top underperformers like GLPSP 4 1/2 PERP dropped 2.3 [5] Macro News Recap - On Tuesday, S&P (-0.69%), Dow (-0.55%), and Nasdaq (-0.82%) were lower. US Aug'25 S&P Global Manufacturing PMI was 53.0 (lower than expected), and ISM Manufacturing PMI/Prices were 48.7/63.7 (lower than expected). UST yield was higher, with 2/5/10/30 - year yields at 3.66%/3.74%/4.28%/4.97% [7] Desk Analyst Comments - Analysts are neutral on the new FOSUNI 6.8 09/09/29. Fosun priced the bond at 6.8% (vs IPT of 7.2%), with an issue size capped at USD400mn on an order book over USD2.5bn. The bond has a 4 - year tenor with a 2.5 - year non - call period. Analysts view its valuation as fair, and for Chinese HY, they prefer BTSDF 9.125 07/24/28 and EHICARs [8] - Fosun announced a tender offer for USD500mn FOSUNI 5 05/18/26, to be financed by the new bond issue and/or internal resources. The offer expires on 10 Sep'25 4pm (GMT) and will be settled around 16 Sep'25. Participation in the tender offer doesn't provide priority allocation for the new bond [9] - The new issuance and tender offer are part of Fosun's debt maturity management. In 2025, Fosun has repurchased bonds via tender offers and called the remaining amount. As of Jun'25, it held RMB16bn cash and RMB89.2bn total debt at holdco level, with a plan to deleverage further [10] - Fosun's credit profile is improving due to asset disposals, debt maturity management, and better access to funding channels onshore and offshore. It has issued bonds and raised loans in 2024 - 2025 [11] Offshore Asia New Issues (Priced) - Multiple issuers including Arab National Bank, Ares Capital, Credit Agricole, etc., have priced new bonds with different sizes, tenors, coupons, and issue ratings [12] Offshore Asia New Issues (Pipeline) - Fubon Life, PTT Global Chemical, and Sumitomo Life Insurance have bonds in the issuance pipeline with specified tenors, pricing, and issue ratings [13] News and Market Color - Yesterday, 37 onshore credit bonds were issued with an amount of RMB25bn. Month - to - date, 99 credit bonds were issued, raising RMB68bn, a 10.8% yoy decrease. NIO's 2Q25 revenue rose 9% yoy to RMB19bn. India regulator approved SMBC's acquisition of 20% shareholding in YES Bank, and the US revoked TSMC waiver for shipping chipmaking tools to China [14]

Company Performance - Nio reported fiscal second-quarter revenue of 19.01 billion Chinese yuan ($2.65 billion), representing a year-over-year increase of 9.0% and a sequential growth of 57.9% [2] - The company reported an adjusted loss per share of 1.85 yuan (25 cents), an improvement from a loss of 2.21 yuan in the same quarter last year, and better than analysts' expectations of a 30 cents loss [3] - For Q3 2025, Nio expects vehicle deliveries to be between 87,000 and 91,000 units, indicating a growth of approximately 40.7% to 47.1% compared to the same period in 2024 [3] Stock Movements - Cytokinetics, Incorporated shares surged 38% to $48.74 following positive clinical trial results for Aficamten [8] - Carisma Therapeutics, Inc. saw a 90% increase in shares to $0.4088 after announcing a $5 million investment from Ocugen [8] - United Therapeutics Corporation shares rose 39% to $422.36 after its TETON-2 study met primary efficacy endpoints [8] - CleanCore Solutions, Inc. shares dropped 58% to $2.8800 due to a PIPE agreement announcement [8] - Canopy Growth Corporation shares fell 16% to $1.5095 following a $200 million offering disclosure [8] - Celularity Inc. shares decreased by 37% to $2.4500 after receiving a Nasdaq notification regarding Form 10-Q [8] Market Overview - U.S. stocks traded lower, with the Dow Jones index down 1.08% to 45,052.65, NASDAQ down 1.60% to 21,111.52, and S&P 500 down 1.32% to 6,374.93 [1] - European shares also declined, with the eurozone's STOXX 600 falling 1.17% and major indices in Spain, London, Germany, and France also experiencing losses [7] - Asian markets closed mostly lower, with Japan's Nikkei 225 gaining slightly while other major indices in Hong Kong, China, and India fell [9]

Group 1 - News Corporation (NWS) has been added to the Zacks Rank 5 (Strong Sell) List, with a 10.2% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Baldwin Insurance Group, Inc. (BWIN) is also on the Zacks Rank 5 List, experiencing a nearly 6.2% downward revision in its current year earnings estimate over the last 60 days [2] - Honda Motor Co. (HMC) has seen a nearly 5.5% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days, and is recognized as a leading automobile manufacturer and the largest motorcycle producer globally [2]

1. Report Industry Investment Rating - No information provided on the report industry investment rating 2. Core Viewpoints of the Report - The report provides a comprehensive update on the fixed - income market, including bond price movements, macroeconomic news, and company - specific analyses. It also offers insights into the Chinese economy and makes predictions on future policy adjustments [2][7][20] - In the fixed - income market, different bonds show various price changes, influenced by factors such as market sentiment, company performance, and macroeconomic conditions [2][4] - Regarding the Chinese economy, there are signs of mild reflation in upstream sectors, but the economic growth may face slowdown pressure in Q4 2025, which could lead to demand - side stimulus and supply - side capacity reduction policies [20][23] 3. Summary by Relevant Catalogs 3.1 Trading Desk Comments - Last Friday, recent IG new issues were overall unchanged to 1bp wider. There were buying flows on HOKKEL 4.587 09/04/30 and two - way flows on OCBCSP 4.55 35s. Some bonds widened, tightened, or remained unchanged. In Chinese properties, some bonds were 0.1 - 0.6pt higher. There were selling flows on front - end Chinese banks/leasing names. Korean corps widened, and S&P changed SAMTOT rating outlook to negative. In Japan, there were selling flows on MUFG/NOMURA curves, and Japanese insurance hybrids edged up. In SEA, GLPSP bonds continued to grow [2] - This morning, there were selling flows for HSBC/MIZUHO/SUMIBK 5 - 6yr floaters. PTTGC 51 - 52s and TOPTB 49 were 0.7 - 2pts higher. FAEACO 12.814 Perp was 1.1pts lower. There were buyers for CNH short - term bonds in LGFVs, and ZHOSHK 28 was largely unchanged [4] 3.2 Macro News Recap - Last Friday, S&P (-0.64%), Dow (-0.20%), and Nasdaq (-1.15%) were lower. The US Jul'25 Core PCE Price Index was +0.3% mom/+2.9% yoy, in line with market expectations. UST yield was lower while 10/30 yr UST yield was higher, with 2/5/10/30 yield at 3.59%/3.68%/4.23%/4.92% [7] 3.3 Desk Analyst Comments - Fubon Life proposes to issue 10.25yr USD T2 bond. The fair value of the new FUBON is considered to be T + 95 - 100, adjusted for tenor and new issue premiums compared to its peers. Fubon Life's credit profile is slightly better than CATLIF in terms of profitability and capital strength [8][9][12] - ZHOSHK's credit profile remains solid. Despite the negative gross margin of new car sales in 1H25, it has consistent positive FCF generation, reducing debts, and low near - term refinancing pressure. The report maintains a buy on ZHOSHK 5.98 01/30/28 [17][18] 3.4 China Economy - China's manufacturing PMI edged higher in August, with improvements in production and demand. There is mild reflation in upstream sectors due to the anti - involution campaign. Non - manufacturing PMI picked up as the service sector recovered, but construction extended its weakness. The economic growth may face slowdown pressure in Q4 2025, and the report expects a 10 bps LPR and 50 bps cut, along with possible transfer payment policies [20][21][23] 3.5 Offshore Asia New Issues - There were no offshore Asia new issues priced or in the pipeline today [25][26] 3.6 News and Market Color - Last Friday, 56 credit bonds were issued onshore with an amount of RMB30bn. In Aug'25, 2,193 credit bonds were issued with a total amount of RMB1,833bn, an 8.9% yoy decrease. There are also various company - specific news such as Alibaba's adjusted EBITDA fall, Bank of China's net interest income drop, etc. [27][31]

Summary of Key Points from Conference Call Records Industry or Company Involved - **AIA Group Ltd (1299)** [3] - **Tata Consultancy Services (TCS)** [5] - **DongFeng Motor Co., Ltd. (0489)** [6] - **Copa Holdings** [10] - **Opsimex** [11] - **Guzman Y Gomez** [14] - **Japan Equity Strategy** [7] - **Asia Tech Strategy** [2] Core Insights and Arguments AIA Group Ltd (1299) - Transition from a growth stock to a value stock with a focus on dividend yield and capital management [3] - Returned US$22 billion of excess capital to shareholders since 2022 [3] - Management aims to reinvigorate growth by leveraging strong balance sheet compounding and cash growth [3] - New business value per dollar spent is at a decade high of US$4.1 [3] - Current P/EV is 1.2x for FY26E, with a price target of HK$105 [3] Tata Consultancy Services (TCS) - Underperformed NIFTY by 29% YTD due to earnings cuts and margin issues [5] - Anticipates growth recovery from 2HFY26, with margin improvements expected [5] - Adjusted growth expectations to 0%/5% for FY26/27, with a 2/3% upgrade to FY26-28 EPS [5] - Current trading at 19.7x 2-year forward PE, indicating value [5] - Price target raised to Rs 3,800 [5] DongFeng Motor Co., Ltd. (0489) - Announced unexpected corporate restructuring to delist from HKSE and spin off its EV business [6] - Trading at a significant discount to book value (0.25x PB) [6] - Cash and equivalents are nearly double its market cap [6] - Upgraded to OW with a price target of HK$11, indicating a 100% upside potential [6] Copa Holdings - Projected EBIT margin of 23-24% for the current and next year, outperforming local peers [10] - Expected cash flow yield of 8% in 2H25 and 12% in 2026 [10] - Trading at 4.5x EV/EBITDA, a 38% discount to historical levels [10] Opsimex - Updated estimates based on solid operational performance and increased tower build guidance [11] - Adjusted expectations for tower adds to 950 for 2025 [11] - Price target established at Ps 26, up from Ps 23 [11] Guzman Y Gomez - Weak trading update led to recalibration of near-term sales and earnings potential [14] - Long-term outlook remains positive, but short-term guidance is viewed as overly optimistic [14] - Downgraded EPS estimates significantly for FY26, FY27, and FY28 [14] Japan Equity Strategy - Over 90% of TSE Prime Market companies reported results, with a focus on tariff impacts [7] - Companies may begin to lower tariff impact estimates and raise earnings guidance [7] - Weak results expected due to tariffs, but potential for recovery as tariffs decrease [7] Asia Tech Strategy - Concerns about AI capex growth peaking in 2026, but no signs of excesses in the AI trade [2] - AI capex expected to grow at least 20% in 2026, driven by increased adoption of reasoning models [2] - Positive outlook on core AI leaders and new opportunities in substrates and OSAT [2] Other Important but Possibly Overlooked Content - AIA's shift in narrative towards growth could lead to a re-rating of the stock [3] - TCS's margin recovery and cost control measures are critical for future performance [5] - DongFeng's restructuring is seen as a positive move to unlock hidden value [6] - Copa's operational results and cash flow generation are key strengths in a competitive market [10] - Opsimex's tower build guidance reflects a positive operational outlook despite revenue adjustments [11] - Guzman Y Gomez's long-term potential remains intact despite short-term challenges [14]

Core Insights - ECARX announced that its Antora® 1000 Pro computing platform and Cloudpeak® software stack will be used in the intelligent cockpit of the new Volvo XC70 hybrid SUV, which began pre-sales on August 27, 2025 [1][4] - The collaboration between ECARX and Volvo focused on various aspects of the XC70's design and development, including hardware, system architecture, and user experience enhancements through AI-powered features [2][4] - The XC70 features a minimalist design aimed at providing a more intuitive user experience, setting it apart from more complex interfaces in premium vehicles [3] Company Overview - ECARX is a global automotive technology provider that offers comprehensive solutions for next-generation smart vehicles, including system on a chip (SoC) and central computing platforms [5] - Founded in 2017 and listed on Nasdaq in 2022, ECARX has over 1,600 employees across 13 locations worldwide and collaborates with major automotive brands, including Volkswagen Group and FAW Group [6] - ECARX's products are currently integrated into over 9.3 million vehicles globally, showcasing its significant market presence [6]

Corporate News - Remy Cointreau expects a 20 million euro ($23 million) impact on operating profit due to U.S. tariffs, revised down from a previous estimate of 35 million euros after a trade deal between the U.S. and EU set baseline duties at 15% [5] - The EU has formally proposed the removal of tariffs on U.S. industrial goods, which is a condition set by the White House for reducing rates on automobiles for the bloc [5]

How significant then, Jill, is this move both politically and economically for Mexico. Yes. Good morning, Tom.I think it's very significant. Right. So we're still obviously waiting on the details.This hasn't been entirely finalized, according to people familiar with the matter. But what this would ultimately aim to do is target imports specifically of textiles and also automobiles, which I think is pretty key considering that Mexico has really become a top destination for Chinese cars, I believe, overtaking ...