Daily Brief Energy/Materials: CPMC Holdings, China National Building Material, SGX Rubber Future TSR20, Quadrise Fuels International, Mec Co Ltd, Condor Energies , Pan American Silver and more

• ORG Technology Co., Ltd. A (002701 CH)’s offer for CPMC Holdings (906 HK) has one remaining precondition: SAFE approval.
• Mr Wei’s irrevocable was terminated. Nevertheless, as a seller, he will accept the offer, as the shares trade below the offer price, and there is no competing offer. 
• The precondition long stop date is 6 January, sufficient time to satisfy the precondition. It would be highly unusual to secure MOFCOM and NDRC approval but not SAFE approval.

• China National Building Material (3323 HK) (CNBM), a leading PRC building materials company, is offering to buy back 841,749,304 H-shares at HK$4.03/share, a 15.1% premium to undisturbed.
• CNBM’s parent – the CNBM Parent Concert Group – will not participate in the tender, therefore elevating its stake to 50.01% of total shares from 45.02% currently. 
• That % increase necessitates a whitewash waiver so as to not make a mandatory general Offer. 

• NR prices stage a comeback but then undergo correction
• Rubber Board convenes series of producer meets to tackle challenges
• Rubber Board proposes a fee to issue NOC to import NR

Quadrise has made a significant step towards commercialisation, through which its innovative emulsion fuel technology will contribute to the decarbonisation of the marine sector. The company announced that it has signed a Collaboration and Operational Trial Agreement (the project agreement) with MSC Shipmanagement and Cargill, paving the way for the highly anticipated vessel trials on board the MSC Leandra. The market recognised the significance of this agreement, with Quadrise’s stock price rallying by approximately 50% on the day of the announcement.

• The +118.3% YoY growth in FY24 Q1~Q3 operating profit [OP] of ¥3,649mil on sales of ¥13,682mil (+37.1% YoY)] was due to easy comps, rather than a full recovery, especially in demand associated with PCs and servers used in general data centre.
• One of the growth drivers in FY24 is package demand associated with generative AI, to which MEC’s core products, CZ-8101 and CZ-8401 chemicals are used.
• MEC has maintained its FY24 guidance for a consolidated annual dividend payment of ¥45/share.

• • Condor has completed a C$19.4 mm equity financing priced at C$1.90 per share.
• This represents a C$2 mm increase compared the latest announcement.
• • The proceeds of the raise will allow the company to bring to Uzbekistan a third service rig in 1Q25 and a drilling rig in 2Q25 (4Q25 previously).

After a couple of transitional years, Pan American Silver (PAAS) is in a much better position to deliver more consistent operational and cost performance as the Yamana assets are integrated, La Colorada ventilation issues are resolved and the asset portfolio is largely streamlined. We are upgrading our estimates on higher commodity price assumptions and raising our valuation to US$26.0/share. The stock has been derated on improving earnings momentum and is now trading at below average historical multiples. The recent M&A provides additional valuation support.