Index Performance - The Hang Seng Index (HSI) closed at 24,911, with a year-to-date increase of 24.2% [1] - The Hang Seng China Enterprises Index (HSCEI) decreased by 0.2% to 8,933, with a year-to-date increase of 22.5% [1] - The MSCI China index rose by 0.3% to 80, reflecting a year-to-date increase of 23.5% [1] Commodity Price Performance - Brent Crude oil price decreased by 1.0% to US$67 per barrel, with a year-to-date decline of 7.5% [2] - Gold prices fell by 0.3% to US$3,369 per ounce, but showed a year-to-date increase of 28.4% [2] - The Baltic Dry Index (BDI) remained stable at 1,970, with a significant year-to-date increase of 97.6% [2] Key Macro and Earnings Releases - US unit labor costs increased by 6.6% as of August 7, 2025, significantly above the consensus of 1.5% [3] - Initial jobless claims in the US were reported at 222,000, slightly lower than the previous week's 218,000 [3] - The US Consumer Price Index (CPI) for urban consumers showed a month-on-month increase of 0.3% and a year-on-year increase of 2.7% as of August 12, 2025 [3] Company-Specific Insights ADNOC Gas - ADNOC Gas reported a 16% year-on-year increase in Q2 2025 earnings to US$1,385 million, exceeding forecasts by 16% [5][7] - The company has upgraded its full-year guidance for sales volume and margin, leading to a 5-6% increase in earnings forecasts for 2025-2027 [5][7] - The target price for ADNOC Gas has been raised to AED3.86, maintaining a BUY rating [6][7] Uni-President China - Uni-President China (UPC) reported a 10.6% increase in revenue and a 33.2% increase in net profit for the first half of 2025, both slightly above expectations [8][11] - Management anticipates a long-term revenue growth rate of 6%-8%, although demand for instant noodles and beverages may fluctuate in the second half due to competition in food delivery [9][11] - The target price for UPC remains at HK$10.40, implying a P/E ratio of 18.2x for 2025 and 16.2x for 2026, with a BUY rating maintained [10][11] Automotive Sector Update - The automotive sector is focusing on Q2 2025 results and sales outlook for the second half of the year, alongside potential policy changes in 2026 [14][17] - There is a consensus regarding the reduction of NEV purchase tax benefits from 10% to 5%, and the continuation of local government subsidies [15][17] - Short-term trading opportunities are expected in the automotive sector, particularly for stocks like Geely and BYD, influenced by seasonal demand and new model launches [16][17]

Core Insights - Linde plc reported second-quarter 2025 adjusted EPS of $4.09, exceeding the Zacks Consensus Estimate of $4.03 and improving from $3.85 in the prior year [1][10] - Total revenues for the quarter reached $8,495 million, surpassing the Zacks Consensus Estimate of $8,353 million and increasing from $8,267 million year-over-year [1][10] Revenue and Profit Drivers - Strong quarterly results were driven by higher pricing and increased volumes, particularly from the Americas segment, with additional contributions from the EMEA segment [2] - The Americas segment's operating profit rose 4.3% to $1,209 million, aided by higher pricing and increased volumes in chemicals and energy markets, exceeding the Zacks Consensus Estimate of $1,188 million [3][10] - EMEA segment profit increased approximately 10.8% year-over-year to $780 million, driven by higher pricing despite lower volumes in metals and manufacturing, beating the Zacks Consensus Estimate of $726 million [4][10] - The APAC segment's profit grew from $474 million to $490 million, surpassing the Zacks Consensus Estimate of $475 million, supported by stable pricing [5] - Operating profit in the Engineering segment declined to $90 million from $96 million year-over-year, missing the Zacks Consensus Estimate of $100 million [5] Backlogs and Capital Investment - At the end of the second quarter, Linde's project backlog amounted to $10.3 billion, including a sale-of-gas backlog of $7.1 billion [6] - Capital expenditures for the second quarter were reported at $1.26 billion, with cash and cash equivalents of $4.8 billion and long-term debt of $19.7 billion [7] Future Guidance - For Q3 2025, Linde estimates adjusted EPS to be in the range of $4.10-$4.20, and for the full year 2025, it expects adjusted EPS to be between $16.30-$16.50 [8] - The company reiterated its full-year capital expenditure guidance to be between $5 billion and $5.5 billion [8]

Geopolitics and Energy Security - Europe is accused of softening its stance on Azerbaijan [1] - The alleged reason is to avoid purchasing natural gas from Russia [1]

Production & Demand - Russia's gas output declined in the first half of the year [1] - Increased domestic demand and higher exports to China could not compensate for lost flows to Europe via Ukraine [1]

Supply Strategy - Slovensky plynarensky priemysel (SPP), Slovakia's state-owned energy supplier, aims to source up to 100% of its gas needs from Russia next year [1]

Mozambican President Daniel Chapo said he expects to complete talks with TotalEnergies next month over the restart of a $20 billion gas project https://t.co/es5CesfMx1 ...

The EU assured Slovakia that it would take measures to soften the impact of a bloc-wide ban on Russian gas supplies from 2028 after Prime Minister Robert Fico demanded safeguards https://t.co/mdqMiKEfPV ...

New President Daniel Chapo sees hope for long-delayed gas projects that can transform Mozambique. https://t.co/kjvZDE05tW ...

Core Viewpoint - The EPSO-G energy group is set to enhance its responsibilities in facilitating the green energy transition, improving international interconnections, and ensuring the resilience and flexibility of the electricity system [1]. National Security - The Ministry of Energy emphasizes the importance of resilience in critical infrastructure, with plans to bolster physical and cyber protection against military and hybrid threats [2]. - EPSO-G is involved in the Lithuanian-German artillery factory project, indicating its role in national security and defense industry investments [3]. International Connections and Networks - Key projects include the Harmony Link electricity interconnection with Poland and strengthening interconnections with Latvia, as well as plans for the Baltic Hub offshore interconnection with Germany [4]. - There are expectations to increase gas flows from the Klaipėda LNG terminal to Central Europe and Ukraine, alongside developing a hydrogen network in the Nordic and Baltic regions [5]. Energy Green Transformation and System Flexibility - By 2028, Lithuania aims for at least 8 GW of electricity generation capacity from renewable sources, with EPSO-G expected to lead in integrating renewable energy and managing energy flows [7]. - The Group will assess dynamic transmission tariffs and explore long-term energy storage possibilities [7]. Financial Expectations - EPSO-G's adjusted average return on equity must meet or exceed government benchmarks, and investment returns should align with those of mature Western European economies [9]. - The Group is required to maintain an investment-grade credit rating of no lower than Baa2 and manage net debt to adjusted EBITDA ratios effectively [10]. Operational and Sustainability Principles - EPSO-G must adhere to high standards of transparency, governance, and social responsibility, following best practices as per Lithuanian laws and OECD recommendations [12]. - The Group is committed to achieving net-zero greenhouse gas emissions by 2050 and supporting the United Nations Sustainable Development Goals [13]. Company Structure - The EPSO-G Group comprises the management company EPSO-G and six subsidiaries, with the Ministry of Energy acting as the sole shareholder [14].

Canada LNG is the first sign of a tidal wave of new production that could transform the global gas market, writes @sstapczynski https://t.co/zkm6JclOg0 ...