Investment Rating - The report maintains a "BUY" rating for NetEase Cloud Music, indicating a potential return of over 15% over the next 12 months [14]. Core Insights - NetEase Cloud Music's total revenue for FY25 declined by 2% YoY to RMB7.76 billion, slightly below the Bloomberg consensus estimate of RMB7.91 billion. However, adjusted net profit increased by 68% YoY to RMB2.86 billion, aligning with consensus estimates [1]. - The company has slightly lowered its FY26 total revenue forecast by 1% due to a soft non-subscription business, but maintains a solid earnings growth outlook for FY26 [1][6]. - The target price has been adjusted to HK$245.00, down from HK$330.00, based on a 23x FY26E non-GAAP PE, reflecting a decline in sector valuation [1][9]. Financial Performance Summary - FY25 total revenue: RMB7.76 billion, down 2% YoY; adjusted net profit: RMB2.86 billion, up 68% YoY [2]. - FY26 revenue forecast: RMB8.42 billion, expected to grow by 8.5% YoY; adjusted net profit forecast: RMB2.14 billion, expected to decline by 25.3% YoY [2][7]. - Gross margin for FY26 is projected at 37.0%, with an operating profit margin of 22.9% [2][11]. Revenue Breakdown - Online music services revenue grew by 8% YoY to RMB3.0 billion in 2H25, while membership subscription revenue increased by 12% YoY to RMB2.6 billion [6]. - Non-subscription music revenue declined by 7% YoY in 2H25, primarily due to a drop in digital album sales [6]. - Social entertainment revenue fell by 17% YoY to RMB905 million in 2H25, although it stabilized with a 5% HoH growth [6]. Margin Analysis - Overall gross profit margin (GPM) increased by 2.7 percentage points YoY but declined by 1.4 percentage points HoH to 35.0% in 2H25 [6]. - Adjusted operating margin improved by 4.6 percentage points YoY to 21.1% in 2H25, driven by operating leverage and effective expense control [6]. Valuation Metrics - The current price of NetEase Cloud Music is HK$165.40, with an upside potential of 48.1% to the target price of HK$245.00 [3]. - The company is currently trading at a P/E of 15x for FY26E, which is considered attractive compared to the target P/E of 23x [1][9].

Group 1: Company Overview - NetEase Cloud Music reported FY25 revenue of 7.76 billion RMB, a 2% year-on-year decline, slightly below the consensus estimate of 7.91 billion RMB [2] - Adjusted net profit for FY25 increased by 68% to 2.86 billion RMB, in line with consensus expectations [2] - The adjusted operating profit rose by 32% to 1.73 billion RMB, excluding the impact of deferred income tax credits [2] Group 2: Performance Analysis - In 2H25, online music revenue growth slowed to 8% year-on-year, down from 16% in 1H25 [2] - Overall gross margin in 2H25 decreased by 1.4 percentage points compared to 1H25, primarily due to a decline in high-margin non-member business revenue [2] - Despite the slowdown in non-member business performance, the music membership business remained robust in 2H25 [2] Group 3: Future Outlook - The FY26 total revenue forecast has been slightly adjusted downwards by 1% due to the weaker performance of non-member business [2] - The target price for NetEase Cloud Music has been revised down to 245.0 HKD, based on a 23x FY26E non-GAAP PE, reflecting a downward adjustment in sector valuations [2] - The current valuation corresponds to a 15x FY26E PE, combined with a stable profit growth outlook for FY26, making the risk-reward ratio more attractive [2]

Employment Data - In January, the U.S. added 130,000 non-farm jobs, significantly exceeding the market expectation of 65,000[4] - Private sector job additions rose from 64,000 in December to 172,000 in January[4] - The unemployment rate decreased from 4.4% in December to 4.3% in January, better than the expected 4.4%[4] Structural Weakness - Job growth was primarily concentrated in public sectors like healthcare and education, while layoffs reached the highest level for January since 2009[4] - Job vacancies fell to a nearly five-year low, indicating weak labor demand[4] - The government sector saw a reduction of 42,000 jobs, with federal employment down by 34,000 since 2025, totaling a cumulative loss of 323,000 jobs[4] Wage Growth and Inflation - Monthly wage growth increased from 0.1% in December to 0.4% in January, with a year-on-year growth rate of 3.7%[4] - The QCEW benchmark revision reduced the projected job additions for April 2024 to March 2025 by 860,000, aligning with market expectations[4] Economic Outlook - The labor market is expected to stabilize with potential structural weaknesses due to AI integration replacing basic jobs[4] - Expansionary fiscal policies may support demand recovery, but the job market's recovery will be uneven[4] - Market anticipates two rate cuts in 2026, with the first cut now expected in July instead of June[4]

1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints - The Chinese/HK properties performed strongly overall, especially VNKRLE bonds due to the reported SZ government rescue plan for Vanke. The deflationary pressure in China continued to ease in early 2026, and mild price reflation is expected in 2026, which should improve corporate profitability and support the capital - market performance of materials and cyclical sectors [2][3][12]. 3. Summary by Relevant Catalogs Trading Desk Comments - Yesterday, the new CHIFEN 7.4 02/13/29 lowered by up to 1.0pt from RO at par. Chinese AMC space was firm, while HK bank T2s BNKEA/NANYAN widened 5 - 6bps, and Chinese TMTs KUAISH/MEITUA widened 2 - 5bps. Higher - beta names FRESHK 26 - 29s/ZHOSHK 28 closed 7 - 13bps wider. EHICAR 27 dropped 2.1pts, and EHICAR 26 closed 0.3pt lower. VNKRLE 27' and 29' surged 8.0 - 8.8pts on the SZ government rescue plan report. LNGFOR 27 - 32s/FUTLAN 28/FTLNHD 26 - 27 edged 0.1 - 0.4pt higher. Seazen Group raised HKD472.3mn (cUSD60.4mn) through a private share placement. LASUDE 26 rose 1.5pts, NWDEVL/VDNWDL complex gained 0.2 - 0.9pt, and FAEACO 12.814 Perp closed 0.8pt higher. In SE Asian space, PTTGC 31 - 52s widened 1 - 5bps, PTTGC Perps leaked 0.1 - 0.2pt, VLLPM 27 - 29 were down 1.0 - 1.8pts, and SMCGL Perps were 0.1pt higher. In KR space, POHANG/SKBTAM/HYNMTR/LGENSO stabilized. In JP space, there were selling flows on 10yr bank papers, Japanese insurance subs edged 0.1pt firmer, and Yankee AT1s leaked 0.1 - 0.3pt. In the Middle East, BSFRs were 0.1pt lower to 0.1pt higher, and long - end KSAs traded up to 0.4pt higher [2]. - This morning, MEITUA/KUAISH recovered to 3 - 5bps tighter. There was better selling on FRESHKs, FAEACO 12.814 Perp gained 1.6pts higher, EHICAR 26 dropped 2.3pts, and ACPM 4.85 Perp/HYSAN 4.85 Perp were 0.6 - 0.8pt lower. VNKRLE 27' and 29' edged 0.1 - 0.2pt higher after yesterday's jump [3]. - In the LGFV space, there was deployment demand from institutions, lifting offers and driving yields tighter. Non - LGFV CNH papers remained afloat due to cross - border account demand [4]. Last Trading Day's Top Movers | Top Performers | Price | Change | Top Underperformers | Price | Change | | --- | --- | --- | --- | --- | --- | | VNKRLE 3.975 11/09/27 | 43.4 | 8.8 | EHICAR 12 09/26/27 | 53.3 | - 2.1 | | VNKRLE 3 1/2 11/12/29 | 41.5 | 8.0 | VLLPM 7 1/4 07/20/27 | 51.9 | - 1.8 | | TTMTIN 4.35 06/09/26 | 99.4 | 1.9 | NICAU 9 09/30/30 | 103.4 | - 1.2 | | LASUDE 5 07/28/26 | 78.4 | 1.5 | HAOHUA 5 1/2 03/14/48 | 99.9 | - 1.0 | | NWDEVL 10.131 PERP | 80.9 | 0.9 | VLLPM 9 3/8 07/29/29 | 41.5 | - 1.0 | [5] Marco News Recap - On Wednesday, S&P (-0.00%), Dow (-0.13%), and Nasdaq (-0.16%) were lower. The US Jan'26 Nonfarm Payrolls were +130k (higher than the market expectation of +66k), the Unemployment Rate was 4.3% (lower than the forecast of 4.4%), the Average Hourly Earnings in Jan'26 was +0.4% mom (a touch higher than the forecast of +0.3%), and the Crude Oil Inventories was +8.53mn (higher than the market expectation of -0.2mn). UST yield was higher, with 2/5/10/30 - year yield at 3.52%/3.75%/4.18%/4.82% [6]. Desk Analyst Comments - VNKRLE 27' and 29' jumped 8.0 - 8.8pts yesterday and edged 0.1 - 0.2pt higher this morning on the media reports of the SZ government's RMB80bn rescue plan for Vanke, including a RMB20bn share placement. Whether the equity injection is sufficient is under discussion, and the new share issue for a loss - making company needs special regulatory approval. The rescue plan is in line with the view that the central government doesn't want another high - profile default in the property sector. The SZ government, through SZ Metro, has been incentivized to support Vanke's refinancing and maturity extension [7]. - In late Jan'26, Vanke secured consents on onshore bonds. SZ Metro provided a 3 - year loan of up to RMB2.4bn to Vanke. Fitch upgraded China Vanke to CC from RD and affirmed Vanke HK's CC rating [8]. - Vanke can turn to alternative funding channels like long - term operating loans or CBICL - guaranteed bonds secured by IPs. As of Jun'25, the book value of Vanke's IPs was cRMB152bn, and c48% of IPs remained unencumbered, which could secure additional financing of cRMB36bn. The total o/s onshore and offshore bonds of Vanke is cRMB27bn [9][10]. - There are hold recommendations on VNKRLEs. The total outstanding amount of Vanke's USD bonds is USD1.3bn, and the next offshore maturity is VNKRLE 3.975 11/09/27 in Nov'27. Estimated NPVs for VNKRLEs are low - 60 to high - 70 and high - 50 to low - 70, respectively [11]. China Economy - China's deflationary pressure continued to ease in early 2026. CPI slowed to 0.2% YoY in Jan due to a high base effect and volatile food pricing. Core inflation remained robust driven by durable goods, tourism, and jewellery prices. PPI beat market expectation as price relation in upstream sectors passed through, while PPI of consumer goods remained subdued. Mild price reflation is expected in 2026, and CPI and PPI are expected to reflate from 0.1% and - 2.6% in 2025 to 0.9% and 0.5% in 2026. Further demand - side policies are expected to address the imbalance [12]. - Food price dynamics and base effects drove the shift in headline CPI. CPI YoY moderated to 0.2% in Jan from 0.8% in Dec, slightly below the market expectation. Sequentially, CPI remained flat at 0.2% MoM. Food prices showed weaker - than - normal seasonality, pork prices had 1.2% MoM growth, fresh vegetable prices dropped - 4.8% MoM, and vehicle fuel prices declined 1.2% MoM. Headline CPI is expected to rebound to 1.1% in Feb [13]. - Core CPI remained robust as durable goods price reflated. Core inflation edged down to 0.8% YoY in Jan from 1.2% in Dec due to the base effect, while its MoM expanded to 0.3%. Durable goods saw notable price reflation, other supplies and services including gold jewellery surged 2.7% MoM, service price growth edged up to 0.2% MoM, medical services continued reflation, and housing rent dropped 0.1% MoM [14]. - PPI sustained its recovery momentum. The YoY contraction of PPI narrowed to - 1.4% in Jan from - 1.9% in Dec, beating market expectations. The MoM growth reached 0.4%, the highest in 28 months. The extraction sector dropped 1.7% MoM, raw materials and processing sectors rose 0.7% and 0.5% MoM, AI - related and anti - involution sectors saw price increases, while downstream sectors remained subdued [15][16]. Offshore Asia New Issues - There were no offshore Asia new issues priced or in the pipeline today [19][20]. News and Market Color - Yesterday, 72 credit bonds were issued onshore with an amount of RMB50bn. Month - to - date, 858 credit bonds were issued with a total amount of RMB690bn, a 615.7% yoy increase. Sales of New Energy Vehicles (NEVs) in China slumped 18.9% yoy in Jan'26. First Pacific's Meralco will spend USD4.65bn on network upgrades and service expansion. Fosun - owned insurer weighs Lisbon listing at more than USD3.6bn valuation [21]. Company - Specific News - Seazen Group raised HKD472.3mn (cUSD60.4mn) through a private share placement to help repay FTLNHD 4.5 05/02/26 [26]. - Medco Energi Internasional's arm was awarded the operatorship of Cendramas offshore field in Malaysia by Petronas [26]. - Moody's affirmed Meituan's Baa1 ratings and revised outlook to negative from stable due to competition in the food delivery business [26]. - Petron Malaysian unit flagged a potential financial hit due to tropical storm Senyar [26]. - Petronas launched a bidding round for nine exploration blocks across Malaysia [26]. - Samsung Heavy won a USD321mn deal to build two containerships for an African buyer [26]. - AIIB will provide up to USD250mn on - lending facility to Shriram Finance [26]. - Santos flagged a USD137mn impairment loss in 2025 [26]. - West China Cement settled tender offer for WESCHI 4.95 07/08/26, with USD51.976mn remaining outstanding [26].

Macro Commentary - In 2026, China's deflationary pressure continues to ease, with January CPI growth slowing to 0.2% due to the impact of the Spring Festival and food price fluctuations. Core inflation remains strong, driven by price increases in durable goods, travel services, and gold jewelry [2] - PPI exceeded market expectations again, with upstream price increases beginning to transmit to midstream and downstream sectors, particularly in the non-ferrous metals industry, while consumer goods PPI remains relatively weak [2] - It is anticipated that price levels will continue to rise moderately in 2026, driven by antitrust movements, AI-related investments, and rising global commodity prices, which will enhance corporate profitability and boost capital market performance in raw materials and cyclical industries [2] - CPI and PPI are expected to rebound from 0.1% and -2.6% in 2025 to 0.9% and 0.5% in 2026, respectively [2] Market Performance - The Hang Seng Index closed at 27,266, up 0.31% for the day and 6.38% year-to-date. The Hang Seng Tech Index rose nearly 1% [2] - The Shanghai Composite Index slightly increased to 4,132, marking a "seven consecutive days" rise [4] - The performance of various sectors in the Hong Kong stock market showed mixed results, with the Hang Seng Property Index up 20.44% year-to-date [3] Company Commentary - NetEase (NTES US) reported 4Q25 earnings with total revenue growing 3% year-on-year to 27.5 billion RMB, which was 4% lower than Bloomberg consensus expectations, primarily due to slower-than-expected growth in gaming revenue and extended revenue recognition periods [5] - Operating profit increased by 6% year-on-year to 8.3 billion RMB, falling short of consensus expectations by 6% [5] - Despite the revenue miss, the outlook for FY26E revenue growth remains positive, supported by a 34% year-on-year increase in contract liabilities in 4Q25 and the anticipated launch of several major new products in FY26 [5] - The target price for NetEase has been adjusted to $161.5 from $164.0, maintaining a "Buy" rating [5]

Investment Rating - The report maintains a BUY rating for NetEase, indicating a potential return of over 15% over the next 12 months [19]. Core Insights - NetEase reported a total revenue increase of 3% year-over-year to RMB 27.5 billion in 4Q25, which was 4% below Bloomberg consensus estimates due to slower-than-expected games revenue growth and a prolonged revenue recognition period [1]. - Operating income grew by 6% year-over-year to RMB 8.3 billion, also falling short of consensus estimates by 6% [1]. - Contract liabilities increased by 34% year-over-year in 4Q25, suggesting a positive outlook for revenue growth in FY26, supported by several highly anticipated game launches [1][8]. - The target price for NetEase has been slightly adjusted to US$161.5 from the previous US$164.0, reflecting a 30.7% upside from the current price of US$123.52 [3][12]. Financial Performance - For FY26E, total revenue is projected to reach RMB 120.8 billion, with adjusted net profit expected at RMB 41.4 billion, reflecting a growth of 10.5% year-over-year [2][9]. - Gross margin is expected to improve to 64.8% in FY26E, while operating margin is projected to be 33.0% [9][10]. - The company has maintained a decent shareholder return of RMB 14.5 billion in 2025, which is approximately 3% of its market capitalization [8]. Business Segments - The online games segment is valued at US$142.1 billion, accounting for 88% of the total valuation, based on a 17x EV/EBIT multiple for FY26E [12]. - Youdao and NetEase Cloud Music are valued at US$0.7 billion and US$3.4 billion, respectively, based on industry-average multiples [12]. - The innovative businesses segment is valued at US$1.5 billion, with net cash contributing an additional US$13.8 billion to the overall valuation [12]. Market Position - NetEase's market capitalization stands at approximately US$78.7 billion, with an average trading volume of US$92.3 million over the past three months [4]. - The stock has experienced a decline of 11.3% over the past month and 13.2% over the past three months, indicating some volatility in its performance [5]. Future Outlook - Several highly anticipated game launches are scheduled for FY26, including "Sea of Remnants" and "YaoYaoQi," which are expected to drive revenue growth [1][8]. - The integration of AI into various phases of game development is expected to enhance quality and efficiency, positioning the company favorably in the competitive landscape [8].

Company Insights - Geekplus (2590 HK, Buy, Target Price: HKD 26.7) has officially launched Gino 1, the world's first general-purpose robot designed specifically for warehouse scenarios, which is expected to open up more application areas in warehouse automation [1] - Gino 1 is capable of performing multiple warehouse tasks including picking, moving boxes, packing, and inspection, and will be offered to customers as a solution alongside existing Autonomous Mobile Robot (AMR) products before mass production [1] - Datadog (DDOG US, Buy, Target Price: USD 196.90) reported Q4 2025 revenue of USD 953.2 million, a year-on-year increase of 29.2%, driven by accelerated revenue growth from non-AI customers and strong demand from AI-native clients [1] - Datadog's non-GAAP net profit for Q4 2025 was USD 217.4 million, up 22.5% year-on-year, exceeding both internal and market expectations due to better-than-expected revenue and operational leverage [1] - For the full year 2025, Datadog expects total revenue to grow by 27.7% to USD 3.4 billion, with a non-GAAP operating margin of 22.4% [1] - Management indicated that the trend of accelerating revenue growth from non-AI customers continued into January 2026, guiding for Q1 2026 revenue growth of 25%-26% [1] - The revenue growth forecast for 2026 is set at 18%-20%, with a non-GAAP operating margin of 20%-22%, reflecting a cautious approach towards AI-native customer revenue growth assumptions [1] - The target price for Datadog has been adjusted to USD 196.90 based on a 16.3x EV/Sales for 2026, which is at a level one standard deviation above the two-year average [1]

Investment Rating - The report maintains a "BUY" rating for Datadog (DDOG US), indicating a potential return of over 15% over the next 12 months [20]. Core Insights - Datadog reported total revenue of US$953.2 million for 4Q25, reflecting a 29.2% year-over-year growth, which is 4% above both the forecast and Bloomberg consensus [1] - The company experienced strong revenue growth from both non-AI customers and AI-native customers, with non-GAAP net income after tax adjustments reaching US$217.4 million, up 22.5% year-over-year [1] - For 2025, total revenue is projected to grow by 27.7% year-over-year to US$3.4 billion, with a non-GAAP operating profit margin (OPM) of 22.4% [1] - Management has guided for 1Q26 revenue growth of 25-26% year-over-year, with a conservative full-year revenue growth forecast of 18-20% for 2026 [1] Financial Performance - Datadog's platform had over 32,700 customers by the end of 4Q25, a 9% increase year-over-year, with significant growth in large customers [8] - The company reported a remaining performance obligation (RPO) of US$3.46 billion, up 52% year-over-year, indicating strong future revenue visibility [8] - The net dollar-based retention rate was approximately 120% in 4Q25, consistent with the previous quarter and up from high-110% in 4Q24 [8] Revenue Forecasts - Revenue projections for FY26E are set at US$4.1 billion, representing a year-over-year growth of approximately 18-20% [10] - Adjusted net profit for FY26E is expected to be between US$779.2 million and US$792.7 million, with an adjusted EPS of US$2.08-2.16 [10] Target Price and Valuation - The target price for Datadog has been adjusted to US$196.9 from US$203.7, based on a valuation of 16.3x 2026E EV/sales [1][2] - The current price of Datadog is US$114.01, indicating a potential upside of 72.7% to the target price [2]

Investment Rating - The report maintains a "BUY" rating for Geekplus, indicating potential for over 15% return in the next 12 months [1][17]. Core Insights - Geekplus has officially launched Gino 1, the world's first general-purpose robot designed for warehousing, which is expected to enhance its position in the warehouse automation market [1]. - The company is projected to experience significant revenue growth, with estimates of RMB 2,409 million for FY24, RMB 3,176 million for FY25, and RMB 4,316 million for FY26, reflecting year-on-year growth rates of 12.4%, 31.9%, and 35.9% respectively [2]. - The revenue from AMR solutions is expected to grow significantly, with a projected increase of 70.3% in FY24 and 32.0% in FY25 [13]. Financial Summary - For FY23, Geekplus reported revenue of RMB 2,143 million, with a year-on-year growth of 47.6% [2]. - Adjusted net profit is expected to turn positive by FY25, reaching RMB 112 million, and further increasing to RMB 401.6 million in FY26 [2]. - The company’s gross profit margin is projected to improve from 30.8% in FY23 to 39.0% by FY27 [15]. Market Position and Strategy - Geekplus is positioned to capitalize on the increasing penetration of warehouse fulfillment AMRs, with 80% of its revenue coming from overseas markets in the first half of FY25 [7]. - The company aims to expand its solutions offering by integrating embodied intelligence, which includes AI-powered robotic arms for picking and packaging tasks [7]. Share Performance - The stock has shown strong performance, with a 1-month increase of 11.3% and a 6-month increase of 50.2% [6]. - The current market capitalization of Geekplus is approximately HK$ 37.88 billion [4]. Target Price - The target price for Geekplus is set at HK$ 26.70, indicating a downside of 4.4% from the current price of HK$ 27.94 [3].

Report Industry Investment Rating - No specific industry investment rating is provided in the report. Core Viewpoints - Yesterday, real - money and PB accounts showed buying interests in Australian, Chinese, European, Japanese and Korean bank/corporate FRNs before the Chinese New Year holiday. The report maintains a buy recommendation on BSFR 6.375 Perp and BSFR 35 [2]. - FABUH's FY25 net profit surged 24% year - on - year to AED21.1bn, and the report maintains a buy on FABUH 6.32 04/04/34 and FABUH 5.804 01/16/35 [3][7]. - Fitch upgraded China Vanke to CC from RD on completion of distressed debt exchange and affirmed Vanke HK's CC rating [2][17]. Summary by Directory Trading Desk Comments - Buying interests in FRNs: Real - money and PB accounts sought to lock in yields on Australian, Chinese, European, Japanese and Korean bank/corporate FRNs before the Chinese New Year holiday [2]. - Middle East bonds: BSFR 6.375 Perp and BSFR 35 edged 0.1pt higher; FABUH 34 - 35s were unchanged to 0.2pt higher [2]. - Global sales: Global real - money and PB accounts sold long - end KSAs and long - dated China TMT papers (maturities > 20 years) [2]. - Greater China higher - yielding space: WESCHI 28/LIFUNG 5.25 Perp closed 0.3 - 0.4pt higher; FAEACO 12.814 Perp/EHICAR 26 - 27 were down by 0.1 - 0.3pt [2]. - Chinese properties: VNKRLE '27 and '29 led the space and rose 1.3 - 1.6pts; YTD, VNKRLEs have surged 10.4 - 11.0pts, supported by loans and upfront cash payments. FUTLAN 28/FTLNHD 27 were unchanged to 0.2pt higher, FTLNHD 26 was 0.2pt lower. Seazen expects to get an offshore - debt quota before Chinese New Year and could launch a USD bond offering. DALWAN 28s were unchanged to 0.1pt higher [2]. - SE Asian space: VLLPM 27 - 29 dropped 1.0 - 1.6pts; ACPM 3.9 Perp was 0.7pt lower; INDYIJ 29/IHFLIN 27 - 30/VEDLN 28 - 33s and the ReNew Energy complex were unchanged to 0.2pt higher; GLPSPs traded 0.2 - 0.3pt higher; Yankee AT1s recovered by 0.1 - 0.4pt; LGFVs were stable [2]. Market Data in the Morning - Asian IG credits were unchanged to 2bps wider. There was better selling on MEITUA and Korean IG names. NWDEVL 4.8 Perp was 0.8pt higher. YPCORP 29/VLLPM 29 were 0.6pt lower. HYSAN 4.85 Perp leaked 0.5pt [3]. - FABUH's FY25 net profit surged 24% yoy to AED21.1bn from higher income across all segments [3]. - ADSEZ's committee approved a tender offer to purchase up to USD345.137mn of ADSEZ 4 07/30/27 and up to USD150mn of ADSEZ 3.1 02/02/31. ADSEZ 27 - 29 edged 0.3pt higher [3]. Top Performers and Underperformers - Top Performers: VNKRLE 3.975 11/09/27 rose 1.6pts to 31.6; VNKRLE 3 1/2 11/12/29 rose 1.3pts to 30.3; PMBROV 11 1/2 02/18/30 rose 0.7pts to 97.5; HCELEC 4.65 12/29/26 rose 0.6pts to 66.8; LOGPH 5 1/4 02/23/23 rose 0.6pts to 11.1 [4]. - Top Underperformers: VLLPM 9 3/8 07/29/29 dropped 1.6pts to 43.0; VLLPM 7 1/4 07/20/27 dropped 1.0pts to 55.5; GARUDA 6 1/2 12/28/31 dropped 1.0pts to 91.5; CHGRID 4.85 05/07/44 dropped 0.8pts to 99.9; ACPM 3.9 PERP dropped 0.7pts to 66.4 [4]. Macro News Recap - On Monday, S&P (+0.47%), Dow (+0.04%) and Nasdaq (+0.90%) were higher. The 2/5 - year UST yield was lower. The 2/5/10/30 - year yield was at 3.48%/3.75%/4.22%/4.85% [6]. Desk Analyst Comments - FABUH's FY25 net profit surged 24% yoy to AED21.1bn from higher income across all segments. The report maintains a buy on FABUH 6.32 04/04/34 and FABUH 5.804 01/16/35, which offer c60bps yield pick - up over its senior unsecured bonds for similar tenor. The likelihood of FAB calling its T2s on their first call dates is high [7]. FAB's Financial Performance - Operating income: In FY25, FAB's operating income rose 16% yoy to AED36.7bn, mainly driven by a 36% yoy increase in non - interest income to AED16.4bn. Net interest income increased by 4% yoy to AED20.3bn [10]. - Cost - to - income ratio: It dropped to 22.4% in FY25 from 24.6% in FY24 [11]. - Net impairment charges: They fell 17% yoy to AED3.3bn, and net profit rose 24% yoy to AED21.1bn. ROTE improved to 19.2% from 16.8% in FY24 [11]. - Asset quality: NPL ratio declined to 2.2% as of Dec '25 from 3.4% as of Dec '24, while NPL coverage ratio increased to 108% from 96% [12]. - Capital adequacy: CET1 pre - dividend ratio was 14.5% as of Dec '25, CET1 post - dividend ratio was 13.3% (down from 13.7% as of Dec '24, still above the regulatory minimum of 11.6%). FAB guided CET1 ratio to be above 13.5% in FY26 [12][13]. Offshore Asia New Issues - Priced: No offshore Asia new issues were priced today [14]. - Pipeline: Central Nippon Expressway Co Ltd plans a 5 - year USD bond with pricing of MS + 64 and an issue rating of A1/ - / - ; Xingye Gold (Hong Kong) Mining plans a 3 - year USD bond with a 7.7% coupon and an unrated issue [15]. News and Market Color - Onshore primary issuances: 80 credit bonds were issued yesterday with an amount of RMB61bn. Month - to - date, 687 credit bonds were issued with a total amount of RMB580bn, a 4998.2% yoy increase [17]. - Other news: Adani Energy Solutions secured a loan from Japanese banks; Mirae Asset Securities' FY25 operating revenue rose 22% yoy; Seazen expects an offshore - debt quota; HD Hyundai Heavy won an order; Minmetals Land privatization offer was approved; NIO recalls EVs; PTT Global Chemical's 2025 adjusted EBITDA fell 34.4%; Fitch upgraded China Vanke [17].