La catena delle opzioni mostra i dati chiave delle opzioni azionarie di Patriot Battery Metals a vari prezzi di esercizio e date di scadenza. I trader utilizzano queste informazioni per analizzare potenziali operazioni e valutare il sentiment del mercato per Patriot Battery Metals..

Patriot Battery Metals (OTC:PMETF) Azioni, Catena delle Opzioni

Patriot Battery Metals Inc is a mineral exploration company focused on acquiring and developing mineral projects containing battery, base, and precious metals. The company's exploration assets include Corvette Property, Pontax Lithium-Gold Property, QC; the Golden Silica Property, BC; the Hidden Lake Lithium Property, and Eastmain Property among others. Geographically, the company operates in Canada and the United States.

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SGMA

Trading Halt: Halted at 7:57:50 a.m. ET - Trading Halt: Halt News Pending

Ecopetrol S.A. ((BVC: ECOPETROL, NYSE:<a href="https://www.benzinga.com/stock/EC#NYSE">EC</a>) announces that it executed an asset purchase purchase agreement with Statkraft European Wind and Solar Holding, AS ("Statkraft") on May 20, 2025, for the potential acquisition of its portfolio in Colombia. This portfolio includes one company dedicated to the development and operation of solar and wind assets, six special purpose entities owning solar projects (614 MW), and three special purpose entities owning wind projects (750 MW) (the "Portfolio"). The agreement is subject to the fulfillment of conditions precedent and other legal requirements, which, once met, is intended to allow Ecopetrol S.A. to acquire the Portfolio of up to 1.3 GW.
The companies are owned by Statkraft's subsidiaries: Enerfín Sociedad de Energía S.L.U and Enerfin Enervento Exterior S.L.
The Portfolio's &nbsp;projects are located in the departments of La Guajira, Sucre, Córdoba, Caldas, and Magdalena.
If completed, this acquisition would represent significant progress toward Ecopetrol S.A.'s decarbonization and energy transition goals, particularly the target of incorporating 900 MW of renewable self-generation capacity by 2025, in line with its 2040 Strategy. Additionally, the transaction would support the generation of low-emission energy under competitive conditions for the Ecopetrol Group's self-consumption, reducing exposure to spot market purchases and contributing to the diversification of the company's energy matrix.
Ecopetrol S.A. reaffirms its commitment to the country's energy future through the integration of renewable energy projects into its operations.

News

Ecopetrol Executes Asset Purchase Agreement With Statkraft European Wind And Solar Holding For Potential Acquisition Of Its Portfolio In Colombia

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="600" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/21071014/YY.jpeg" alt="" class="wp-image-13211" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/21071014/YY.jpeg 900w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/21071014/YY-300x200.jpeg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/21071014/YY-768x512.jpeg 768w" sizes="(max-width: 900px) 100vw, 900px" /></figure>
The shoemaker's profit fell 24% in the first quarter on falling margins, as it continues taking preemptive hedging measures against geopolitical risk
<h4 class="wp-block-heading">Key Takeaways:</h4>
<ul class="wp-block-list">
<li>Leading shoemaker Yue Yuen's revenue grew 1.3% in the first quarter, but its profit dropped 24.2%</li>
<li>Rising labor costs in Southeast Asia are squeezing the company's margins as it diversifies beyond China to hedge against geopolitical risk</li>
</ul>
"Made-in-China" sneakers are continuing to trek across the Pacific to U.S. consumers, even as key changes in the supply chains behind their trans-continental journey shift dramatically. Despite receiving some temporary relief in the China-U.S. tariff wars from the two countries' recent trade deal, shoe giant&nbsp;Yue Yuen Industrial&nbsp;(Holdings) Ltd.&nbsp;(0551.HK) is hardly breathing easy. The company recently reported its gross margin and profit both fell sharply&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0512/2025051200601.pdf">in the first quarter</a>, highlighting some of the challenges original equipment manufacturers (OEMs) are facing as their supply chains shift around them.
Yue Yuen, whose customers include global giants like Nike, Adidas and Puma, managed to eke out some revenue growth in the first quarter, with the figure up 1.3% year-on-year to $2.03 billion. But its profit sprinted downward, sinking 24.2% to $75.8 million. Its gross and operating profit margins also suffered, with the former falling by 2.2 percentage points year-on-year to 22.9% in the quarter, and the latter down by a similar 1.9 percentage points to 5.4%.
The company blamed escalating turbulence in the global economy for its rising unit costs, and added its overall efficiency is taking a hit from uneven capacity utilization across different factories, surging labor costs and delays in a new factory opening.
<h4 class="wp-block-heading">Rising costs, client conservatism</h4>
Among the many factors eroding its margins, rising labor costs in countries such as Indonesia and Vietnam are having some of the most significant impact on Yue Yuen. The company's Indonesian factories raised wages earlier this year, according to a BofA Securities note. Despite gradually passing on the higher costs to clients in the second quarter, the company's gross profit margin will remain under pressure in the near term and is expected to stay in 18% to 19% range, down significantly from 2024 levels, BofA said.
Yue Yuen's second-quarter orders have been relatively stable so far, BofA added, but management is concerned about shipments falling year-on-year in the third quarter due to both a high base from last year and clients becoming more conservative with their inventory strategies. That could dampen the company's momentum over the short term as its clients become more cautious in their ordering at a time when demand from the important China market has been slow to recover.
The company is also facing external pressure driven by geopolitical uncertainties. Facing such headwinds, Yue Yuen began redistributing its capacity as early as 2018 in a bid to diversify its manufacturing base, with a particular focus on goods bound for the U.S. The company has lowered the share of its products made in China for export to the U.S. from 85% at an earlier peak to just 15% now. On a geographic basis, shoes produced in Indonesia, Vietnam and China accounted for 54%, 31% and 11% of its total shipments in 2024, respectively, showing the center of gravity for its manufacturing has shifted to Southeast Asia.&nbsp;
The reality is that OEMs like Yue Yuen have always been "nomads" when it comes to where they set up their shops. The company was founded in 1988, but its parent,&nbsp;Pou Chen Corp.&nbsp;(9904.TW), has roots dating back to 1969 with its establishment in Taiwan's Zhanghua county. It started out producing and exporting rubber shoes and later shifted its focus to designing and manufacturing sneakers and casual footwear.
<h4 class="wp-block-heading">Seeking profits while diversifying risk</h4>
In the 1980s, as Taiwan tightened its land and environmental protection laws and regulations and local labor cost rose, Pou Chen looked for new, more cost-effective places to produce. It initially set its sights on Southeast Asia, but later pivoted to the Chinese mainland as the government began allowing private enterprises and made other market-oriented reforms. It was part of a larger tide of Taiwan companies that "moved west" to the mainland.
Officially based in Hong Kong, Yue Yuen went public on the Hong Kong Stock Exchange in 1992 and expanded into the mainland as a Hong Kong-funded company. It built shoe factories in nearby Pearl River Delta cities such as Dongguan and Huizhou in Guangdong province, and in Kunshan, near Shanghai, in Jiangsu province. As its output grew and it became more active on the mainland, Yue Yuen quickly expanded by landing premier brands such as Nike and Adidas as their most important OEM partner in Asia. At its peak, it was churning out more than 300 million pairs of athletic shoes every year.
The company has a publicly listed subsidiary,&nbsp;Pou Sheng International&nbsp;(3813.HK), in charge of the retail sales and distribution of sportswear products on the mainland and in Southeast Asia. In terms of division of duties, Yue Yuen is responsible for manufacturing, while Pou Sheng handles sales. The pair have built out a manufacturing and sales network spanning China, Vietnam, Indonesia and Cambodia.
While its geographic diversification may help to protect it against geopolitical risks, the move is unlikely to produce cost advantages in the near term. To the contrary, it might lead to higher operating costs and lower efficiency as new facilities ramp up and labor costs rise. Other risks remain as well, including changing labor market conditions and tariff dynamics in Southeast Asia, as well as unclear prospects for China's economic recovery and growing conservatism among its clients.
Yue Yuen's stock has hovered in the HK$12 to HK$18 range for most of the last five years and currently trades at feeble price-to-earnings (P/E) ratio of around 6.5 times, well behind peers like&nbsp;Stella International&nbsp;(1836.HK) at 10.3 times, and&nbsp;Rich Peace&nbsp;(9910.TW) at 20.8 times, speaking to concerns about its diversification pains and broader outlook.
Despite solid fundamentals and strong connections with established brands, the company seems to lack growth potential at the moment – especially on its bottom line – and has yet to reveal any new steps it might take beyond waiting for market conditions to improve and orders to increase. While it's certainly no high-tech maven, perhaps it might explore breakthroughs with digital transformation, automated manufacturing or technological upgrades to win back investors.&nbsp;

Asia

Global

Opinion

Yue Yuen Stumbles On High Labor Costs, Geopolitical Uncertainty

Despite the overvalued nature of the stock based on its price-to-earnings metric, Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)&#8217;s CEO, Elon Musk, has defended the company&#8217;s growth, citing its stock prices, shrugging off the fundamental worries surrounding the carmaker as highlighted by experts.
What Happened: During the Qatar Economic Forum on Monday, Musk highlighted that Tesla&#8217;s share price was the measure of its business&#8217;s success. 
&#8220;You can just look at the stock price if you want the best inside information,&#8221; he said as per <a href="https://finance.yahoo.com/news/elon-musk-tells-investors-teslas-stock-price-shows-company-is-in-a-good-place-dont-worry-about-it-143940828.html">a</a> Yahoo Finance report.
&#8220;The stock market analysts have that, and a stock wouldn&#8217;t be trading near all-time highs if it was not, if things weren&#8217;t in good shape. They&#8217;re fine, don&#8217;t worry about it.&#8221;
According to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>, Tesla shares are trading at a price nearly 158.730 times its 2026 earnings. At the same time, the average forward price-to-earnings of its peers stood at 25.75 times, implying that Tesla was 6.16 times more expensive than its industry's average.
However, Gordon Johnson, the CEO and founder of GLJ Research, countered Musk&#8217;s statement with examples. In an X post, he highlighted that &#8220;If: high stock price = good underlying business fundamentals, then WorldComm + HealthSouth + Enron + Tyco + etc. would never have gone bankrupt.&#8221;
He explained that the stock prices were simply a reflection of a stock&#8217;s demand, which could be influenced by factors like CEO comments and pump-and-dump Wall Street analysts.
Taking a dig at the Federal Reserve and Treasury Secretary Scott Bessent, Johnson further stated that the Fed&#8217;s purchase of Treasuries by printing money was also a reason for the artificially created demand for stocks.
&#8220;Were the Federal Reserve to immediately pull out all the money it printed into existence from COVID, we&#8217;d QUICKLY have REAL price discovery in stocks,&#8221; he warned.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I was going to comment on this&#8230; but <a href="https://twitter.com/FredericLambert?ref_src=twsrc%5Etfw">@FredericLambert</a> NAILS it. If: high stock price = good underlying business fundamentals, then WorldComm + HealthSouth + Enron + Tyco + etc. would never have gone bankrupt. Stock price simply = demand for the stock (and demand for a stock can… <a href="https://t.co/LmKs67YUH1">https://t.co/LmKs67YUH1</a>
&mdash; Gordon Johnson (@GordonJohnson19) <a href="https://twitter.com/GordonJohnson19/status/1924865321078276238?ref_src=twsrc%5Etfw">May 20, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
As of the <a href="https://www.benzinga.com/25/04/44937440/tesla-q1-earnings-highlights-revenue-miss-eps-miss-tariff-landscape-and-changing-political-sentiment-cloud-guidance">first quarter,</a> Tesla&#8217;s revenue fell 9% year-over-year to $19.34 billion, missing the Street&#8217;s consensus estimate of $21.35 billion, and its EPS declined 40% year-over-year to 27 cents, which was below the 31 cents consensus.
See Also: <a href="https://www.benzinga.com/news/25/05/45533521/charlie-munger-once-said-the-first-rule-of-compounding-is-to-never-interrupt-it-unnecessarily-now-hi">Charlie Munger Once Said, &#8216;The First Rule Of Compounding Is To Never Interrupt It Unnecessarily&#8217; — Now His Wisdom Rings True As The S&amp;P 500 Surges 220% Over 10 Years</a>
Why It Matters: When compared to a few of its industry peers, Tesla had the highest trailing P/E ratio among them.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Stocks</td>
<td>Trailing P/E</td>
</tr>
<tr>
<td>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td>
<td>196.469</td>
</tr>
<tr>
<td>Toyota Motor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>)</td>
<td>0.05</td>
</tr>
<tr>
<td>General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>)</td>
<td>6.96</td>
</tr>
<tr>
<td>Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>)</td>
<td>8.54</td>
</tr>
<tr>
<td>Honda Motor Co Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HMC#NYSE">HMC</a>)</td>
<td>0.06</td>
</tr>
</tbody>
</table>
</figure>
However, when compared to the forward P/E ratios of the Magnificent 7 stocks, Tesla shares remain the most expensive with the highest ratio of forward price-to-earnings in comparison with its industry average.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Stocks</td>
<td>Forward P/E</td>
<td>Industry Average</td>
</tr>
<tr>
<td>Tesla Inc. </td>
<td>158.73</td>
<td>25.75</td>
</tr>
<tr>
<td>Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>31.153</td>
<td>37.03</td>
</tr>
<tr>
<td>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)</td>
<td>28.818</td>
<td>20.23</td>
</tr>
<tr>
<td>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td>
<td>30.488</td>
<td>81.74</td>
</tr>
<tr>
<td>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</td>
<td>31.646</td>
<td>32.14</td>
</tr>
<tr>
<td>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)</td>
<td>17.575</td>
<td>125.77</td>
</tr>
<tr>
<td>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>)</td>
<td>25.189</td>
<td>125.77</td>
</tr>
</tbody>
</table>
</figure>
TSLA shares were down 9.35% year-to-date, but it has returned by 51.13% just in the last month. The shares were up 84.26% over the year. On Tuesday, it ended 0.51% lower and advanced 0.015% in after-hours and on Wednesday, it was up 0.46%.
Benzinga Edge Stock Rankings shows that Tesla had a stronger price trend over the short, medium, and long term. Its momentum ranking was solid, however, its value ranking was poor at the 8.57th percentile. The details of other metrics are <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">available here</a>. 
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="143" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21034750/EDGE-TESLA-1024x143.png" alt="" class="wp-image-922346" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21034750/EDGE-TESLA-1024x143.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21034750/EDGE-TESLA-300x42.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21034750/EDGE-TESLA-768x107.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21034750/EDGE-TESLA.png 1224w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell in premarket on Wednesday. The SPY was down 0.70% to $588.69, while the QQQ declined 0.76% to $516.31, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/general/market-summary/25/05/45515900/mstrs-new-bitcoin-accounting-standard-to-drive-financial-swings-make-earnings-volatile-says-expert-after-lawsuit-hits-strategy">MSTR&#8217;s New Bitcoin Accounting Standard To Drive &#8216;Financial Swings,&#8217; Make Earnings &#8216;Volatile,&#8217; Says Expert After Lawsuit Hits Strategy</a></li>
</ul>
Image Via Shutterstock

Analyst Color

Earnings

Equities

Market Summary

Broad U.S. Equity ETFs

Futures

Federal Reserve

Markets

Analyst Ratings

ETFs

General

AAPL

AMZN

GOOG

MSFT

NVDA

TSLA

Tesla Is 6X More Expensive Than Its Peers And The Most Overvalued Mag 7 Stock: Gordon Johnson Questions Fundamentals As Elon Musk Shrugs Off Concerns

Jefferies analyst David Chiaverini initiates coverage on Comerica (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>) with a Underperform rating and announces Price Target of $47.

Price Target

Initiation

Jefferies Initiates Coverage On Comerica with Underperform Rating, Announces Price Target of $47

WIIM

V.F. Corporation shares are trading lower following the company's Q4 earnings report. The company slightly missed revenue estimates and guided for a Q1 revenue decline of 3-5%.

OpenAI&#8216;s Texas-based data center has reportedly secured an additional $11.6 billion in funding.
What Happened: The funding, a combination&nbsp;of debt and equity, would be used to expand the data center from two to eight buildings.&nbsp;According to Crusoe, this will bring the project&#8217;s total funding to $15 billion. Both Crusoe and the investment firm Blue Owl Capital are participating in the latest funding round, according to a report by&nbsp;<a href="https://www.wsj.com/tech/ai/openai-data-center-funding-microsoft-75e879b6">The Wall Street Journal</a>&nbsp;on Wednesday.
Set to be completed next year, the data center will be OpenAI&#8217;s largest, housing up to 50,000 Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) Blackwell chips per building for training large language models.
The development of this site in the city of Abilene is a crucial&nbsp;step in minimizing OpenAI's reliance&nbsp;on&nbsp;Microsoft Corp.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>). OpenAI had previously relied exclusively on Microsoft for its computing power. However, last spring, OpenAI struck a deal with&nbsp;Oracle&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NASDAQ">ORCL</a>) to use the Abilene site&nbsp;after Microsoft gave its approval.
OpenAI did not immediately respond to Benzinga&#8217;s request for comment.
SEE ALSO:&nbsp;<a href="https://benzinga.com/markets/cryptocurrency/25/05/45533976/mr-wonderful-kevin-o-leary-says-elizabeth-warren-taking-an-un-american-position-by-challen" target="_blank" rel="noreferrer noopener">Mr Wonderful Kevin O&#8217;Leary Says Elizabeth Warren Taking An &#8216;Un American&#8217; Position By Challenging Crypto Law: &#8216;Bill Has Nothing To Do With Trump&#8217;</a>
Why It Matters:&nbsp;This development comes in the wake of OpenAI&#8217;s ongoing efforts to reduce its dependence on Microsoft. Earlier this month, OpenAI had <a href="https://www.benzinga.com/25/05/45244190/microsoft-faces-fresh-revenue-hit-as-openai-plans-to-reduce-payouts-by-2030-report">plans to cut</a> the share of revenue it pays to Microsoft by at least half by the end of the decade.
Moreover, another report suggested that the ChatGPT-maker was in <a href="https://www.benzinga.com/25/05/45340216/openais-ipo-ambitions-hang-in-the-balance-as-microsoft-negotiates-equity-report">high-stakes</a> negotiations with Microsoft to revise the terms of their multibillion-dollar partnership, with a key point of contention being the equity Microsoft would receive in the restructured OpenAI entity.
OpenAI plans to develop its own data center network as part of a long-term strategy. Earlier this year, CEO Sam Altman also announced a $500 billion infrastructure project called Stargate, in partnership with SoftBank and Oracle.
The new funding and expansion of the Texas data center signify a critical step in OpenAI&#8217;s strategic move towards self-reliance and its ambitious long-term infrastructure project, Stargate.
<ul class="wp-block-list">
<li>READ MORE:&nbsp;<a href="https://benzinga.com/25/05/45532747/a-completely-man-made-crisis-fox-news-host-comments-on-walmarts-price-hikes-due-to-trumps-tariffs" target="_blank" rel="noreferrer noopener">&#8216;A Completely Man-Made Crisis&#8217;—Fox News Host Comments On Walmart&#8217;s Price Hikes Due To Trump&#8217;s Tariffs</a></li>
</ul>
Image via Shutterstock
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Tech

ORCL

Sam Altman's OpenAI Raises $11.6 Billion For Texas Data Center As It Moves To Reduce Reliance On Microsoft: Report

Jefferies analyst David Chiaverini initiates coverage on Cullen/Frost Bankers (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFR#NYSE">CFR</a>) with a Underperform rating and announces Price Target of $105.

Jefferies Initiates Coverage On Cullen/Frost Bankers with Underperform Rating, Announces Price Target of $105

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="600" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/21070741/Sunshine-0521-900x600-1.png" alt="" class="wp-image-13208" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/21070741/Sunshine-0521-900x600-1.png 900w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/21070741/Sunshine-0521-900x600-1-300x200.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/21070741/Sunshine-0521-900x600-1-768x512.png 768w" sizes="(max-width: 900px) 100vw, 900px" /></figure>
The insurer plans to set up a subsidiary that will run a 20 billion yuan fund investing in stocks and fixed-income instruments
<h4 class="wp-block-heading">Key Takeaways:</h4>
<ul class="wp-block-list">
<li>Sunshine's asset management unit will set up a wholly owned subsidiary that will run an investment fund using 20 billion yuan from the company's life insurance business</li>
<li>The move will allow the insurer to gain from movements in financial markets without directly exposing it to short-term volatility or bringing additional capital charges</li>
</ul>
Sunshine Insurance Group Co. Ltd.&nbsp;(6963.HK) is building a shelter in financial markets to prop up its fortunes as a cloudy economy rains on its core insurance business in China.
Last Friday, the insurer&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0516/2025051601071.pdf">said</a>&nbsp;its asset management unit will set up a wholly owned subsidiary that will run a 20 billion yuan ($2.8 billion) fund using money from Sunshine's life insurance business. The 10-year fund will buy stocks of Chinese companies listed in Hong Kong, Shanghai and Shenzhen, as well as fixed-income instruments. The new subsidiary will earn management and other fees from and distribute returns to Sunshine Life.
The move gives Sunshine a new channel for indirect exposure to financial markets, in addition to direct investments in stocks and bonds it already makes. Although this setup may just look like a scheme to exchange money among Sunshine's own entities, it can offer some practical benefits for the company. For one, by creating an investment vehicle this way, Sunshine won't have to take capital charges on its own balance sheet for risky assets like stocks held by the fund. This is critical as regulators are imposing increasingly stringent capital requirements on insurers.
The move also eliminates the need for Sunshine to incorporate changes in the values of the fund's investments directly into its own net profit, which can lead to painful paper-based losses during a down market. It "is conducive to reducing the impact of fluctuations in the market value of equity assets on the net profit of the company, and improving the ability of the company to invest in the capital market," Sunshine said in its disclosure.
Insurers invest premiums they collect from their policyholders to generate returns as one of their major revenue sources. Such income is particularly crucial for Sunshine right now as margins on its insurance underwriting aren't that great. The company's insurance revenue increased a little less than 7% last year to 64 billion yuan. But associated expenses erased more than 90% of that sum. And that's before accounting for other costs like fees the company paid to reinsurers. By comparison, its investment income, including paper gains and losses on assets, jumped more than 145% to 13 billion yuan.
Now, as China's frail economy makes consumers and businesses cautious about spending on non-essential items, it's becoming even more difficult for insurers like Sunshine to grow profits from their core insurance business. This makes investment income all the more important, even though such a revenue source is inevitably volatile.
To boost returns, the company would want to buy more high-risk assets. But that creates a dilemma, since doing that would raise its capital requirements and could also result in losses. By using an off-balance sheet fund, Sunshine can avoid increased capital requirements and short-term paper losses created by volatility in financial markets, though any disposal of investments at a loss would ultimately hit the company.
Insurers also have to worry about matching the durations of their investments and liabilities with their customers' requirements for funds. In an extreme case, for example, if an insurer has more money locked in long-term investments than what it needs to service its policyholders, it wouldn't be able to honor its obligations.
<h4 class="wp-block-heading">Tricky investment strategies</h4>
All that means devising investment strategies for insurers can be quite tricky. Sunshine's investment portfolio is heavily focused on fixed income assets, which are typically safer than stocks. Such instruments accounted for more than 70% of its investment assets at the end of last year. A large proportion of them were government bonds, considered one of the safest assets, and most of the corporate bonds it invests in also have high credit ratings, suggesting the company is relatively conservative in its risk-taking.
By establishing a separate entity solely dedicated to operating an investment fund, Sunshine can have more leeway to dabble in risky assets that it might otherwise avoid. The 20 billion yuan the company plans to commit to the fund is not a huge amount for Sunshine. But it's not peanuts either, considering the company had 12 billion yuan in cash and cash equivalents at the end of 2024. Sunshine will provide capital for the fund in installments.
Unless the new subsidiary makes a loss, it can contribute to Sunshine's bottom line by returning any profits it makes to the company. But this plan also hints at limited opportunities for insurers to expand their real-world businesses. At the end of the day, the earmarked 20 billion yuan is large enough to fund a sizable acquisition or other initiatives that could lead to meaningful growth for Sunshine's insurance and other businesses.
Sunshine actually made an acquisition recently, but that effort may have left many scratching their heads. Last November, it agreed to buy about 40% of JC International Finance &amp; Leasing Co. Ltd., which leases equipment and other assets to small businesses in areas like manufacturing and energy conservation, for about 1.3 billion yuan.
From a business diversification perspective, that deal made sense. But the target company was barely profitable, and it's not clear if Sunshine's can change that for the better. So, whether the investment is really worthwhile is questionable, and the move also suggests that attractive acquisition targets are rare these days.
Sunshine shares have lost more than 40% of their value since the company's IPO in 2022. They currently trade at a trailing price-to-earnings (P/E) ratio of 6.5 and a price-to-sales (P/S) ratio of 0.47. The P/S is in line with the 0.5 for online insurer&nbsp;ZhongAn&nbsp;(6060.HK), which, however, commands a much loftier P/E ratio of 28. Among related companies, insurance distributor&nbsp;Yuanbao&nbsp;(YB.US), which went public this month in New York, trades at a lofty P/E ratio of 67 and P/S of 8.9. That could reflect investor preference for companies like Yuanbao that provide services for actual policy underwriters like Sunshine and ZhongAn.
Sunshine shares have fallen further since its investment fund announcement, indicating investors weren't impressed with the plan. For the company to shine among insurance companies in the current gloomy Chinese economy, it will need to spark better growth. Its latest move may provide some fuel for that, but it looks more like an admission that its core insurance business isn't going anywhere fast.

Insurance

Sunshine Chases Investment Income Amid Tepid Demand For Its Insurance

Jefferies analyst David Chiaverini initiates coverage on Citizens Financial Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>) with a Buy rating and announces Price Target of $50.

Jefferies Initiates Coverage On Citizens Financial Group with Buy Rating, Announces Price Target of $50

WOLF: -65% &#x7C; <a href="https://www.benzinga.com//node/45532307">Wolfspeed shares are trading lower amid reports that the company is preparing to file for bankruptcy within weeks.</a>
&nbsp;
PANW: -5% &#x7C; <a href="https://www.benzinga.com//node/45529629">Palo Alto Networks shares are trading lower following Q3 reported financial results.</a>
&nbsp;
TGT: -5% &nbsp;&#x7C; <a href="https://www.benzinga.com//node/45539024">Target shares are trading lower after the company missed Q1 earnings estimates and lowered its FY25 EPS guidance.</a>

Movers

Trading Ideas

PANW

WOLF

Market-Moving News for May 21st

Jefferies analyst David Chiaverini initiates coverage on BankUnited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKU#NYSE">BKU</a>) with a Hold rating and announces Price Target of $39.

Jefferies Initiates Coverage On BankUnited with Hold Rating, Announces Price Target of $39

Target shares are trading lower after the company missed Q1 earnings estimates and lowered its FY25 EPS guidance.

Bernstein analyst Zhihan Ma maintains Home Depot (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) with a Market Perform and raises the price target from $380 to $398.

Bernstein Maintains Market Perform on Home Depot, Raises Price Target to $398

Editor's Note: This article has been updated to reflect the accurate yields for the 2-year and 10-year Treasury bonds.
U.S. stock futures dipped on Wednesday after ending lower on Tuesday. Futures of major benchmark indices were trading lower in premarket.
The S&amp;P 500 index snapped its six-day winning streak on Tuesday, which was followed by the U.S.-China 90-day tariff truce.
Donald Trump&#8216;s &#8216;<a href="https://www.benzinga.com/markets/equities/25/05/45536595/big-beautiful-bill-will-explode-the-deficit-and-make-the-rich-richer-congressional-budget-office-estimates-4-income-fall-for-lowest-decile-of-americans-by-2033">One Big, Beautiful Bill</a>&#8216; was the center of discussion among experts as the Congressional Budget Office released its estimates for the distributional effects of the Act.
It estimated a 4% drop in the household incomes of the lower decile of Americans by 2033 and a 2% rise in the income of the highest decile.
Meanwhile, the 10-year Treasury bond yielded 4.53% and the two-year bond was at 3.9%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing a 94.6% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Futures</td>
<td>Change (+/-)</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>-0.65%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-0.60%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>-0.61%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-0.86%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell in premarket on Wednesday. The SPY was down 0.58% to $589.40, while the QQQ declined 0.65% to $516.91, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Cues From Last Session:
On Tuesday, most S&amp;P 500 sectors closed lower, with energy, consumer discretionary, and communication services stocks seeing the steepest declines.
In contrast, utilities and healthcare stocks moved higher, defying the broader market trend.
Meanwhile, Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) stock edged up after CEO Elon Musk reaffirmed his five-year commitment to the company. Home Depot Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) reported better-than-expected first-quarter sales but missed EPS estimates. Amer Sports Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AS#NYSE">AS</a>) also posted strong first-quarter results.
Economically, the U.S. Redbook Index increased 5.4% year-over-year for the week ending May 17.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>-0.38%</td>
<td>19,142.72</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-0.39%</td>
<td>5,940.46</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>-0.27%</td>
<td>42,677.24</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>0.054%</td>
<td>2,105.58</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
Senior economist at WisdomTree, Jeremy Siegel, said that he was &#8220;clear-eyed&#8221; about the tariff impact.
&#8220;These tariffs aren't good for the market. Stocks would be higher without them, but the market's current pricing suggests it can absorb the expected hit at current rates.&#8221;
While there was criticism around the One Big, Beautiful Bill on proposed tax cuts, Siegel said, &#8220;While tariffs remain a headwind, the tax cut and a potential easing of tensions in the Middle East could propel equities closer to all-time highs.&#8221;
Meanwhile, quoting the <a href="https://www.benzinga.com/markets/equities/25/05/45536595/big-beautiful-bill-will-explode-the-deficit-and-make-the-rich-richer-congressional-budget-office">CBO estimates</a>, Craig Shapiro of the Bear Traps Report, said, the new Bill will &#8220;explode the deficit while enriching the highest decile of Americans at the expense of the lowest decile.&#8221; 
&#8220;Another opportunity squandered and further proof that the Republican Party continues to cater to the wealthiest Americans time and time again,&#8221; he added.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Nice job by the Admin and House Republicans getting ready to try to pass a &quot;Big Beautiful Bill&quot; that will explode the deficit while enriching the highest decile of Americans at the expense of the lowest decile. Another opportunity squandered and further proof that the… <a href="https://t.co/66cJwNwE8m">https://t.co/66cJwNwE8m</a>
&mdash; Craig Shapiro (@ces921) <a href="https://twitter.com/ces921/status/1925005561180942458?ref_src=twsrc%5Etfw">May 21, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Economist Peter Schiff was also not enamoured by the Bill as he stated that the tax cuts just boost GDP at the "expense of larger budget and trade deficits and higher inflation, and long-term interest rates."
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Tax cuts that boost spending on consumer goods rather than promote higher savings, capital investment, and increased productivity, do not grow the economy. They merely boost GDP at the expense of larger budget and trade deficits and higher inflation and long-term interest rates.
&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1924968734491373978?ref_src=twsrc%5Etfw">May 20, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>
Upcoming Economic Data
Here&#8217;s what investors will keep an eye on Wednesday:
<ul class="wp-block-list">
<li>Richmond Fed President Tom Barkin and Fed Governor Michelle Bowman will take part in the &#8216;Fed Listens&#8217; event at 12:15 p.m. ET.</li>
</ul>
Stocks In Focus:
<ul class="wp-block-list">
<li>Target Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) was 0.37% lower in premarket on Wednesday as analysts expect it to report quarterly earnings of $1.65 per share on revenue of $24.32 billion, before the opening bell.</li>
<li>Lowe&#8217;s Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>) declined 0.28% as Wall Street expects it to report earnings before the opening bell. It is expected to post earnings of $2.88 per share on revenue of $20.96 billion.</li>
<li>TJX Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TJX#NYSE">TJX</a>) fell 0.69% as analysts expect it to report quarterly earnings of 90 cents per share on revenue of $12.99 billion, before the opening bell.</li>
<li>VF Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFC#NYSE">VFC</a>) was up 0.14% as Wall Street expects it to report earnings before the opening bell. It is expected to post a quarterly earnings loss of 14 cents per share on revenue of $2.17 billion.</li>
<li>Palo Alto Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>) dropped 3.85% despite posting better-than-expected earnings for its third quarter and raising its full-year 2025 guidance on Tuesday.</li>
<li>Toll Brothers Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) jumped 5.88% after posting stronger-than-expected earnings and sales results for the second quarter.</li>
<li>CFSB Bancorp Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CFSB#NASDAQ">CFSB</a>) surged 67.89% as it announced that Hometown Financial Group will acquire the company for a total transaction value of approximately $44 million.</li>
<li>Accenture PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACN#NYSE">ACN</a>) was up 0.41% after collaborating with Dell Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>) and Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) to accelerate enterprise AI transformation with AI refinery.</li>
</ul>
Commodities, Gold, And Global Equity Markets:
Crude oil futures were trading higher in the early New York session by 1.72% to hover around $63.10 per barrel.
Gold Spot US Dollar rose 0.55% to hover around $3,308.30 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.39% at the 99.7300 level.
Asian markets were mixed on Tuesday as South Korea's Kospi and India's S&amp;P BSE Sensex index declined. Japan's Nikkei 225 was flat, and Australia's ASX 200, Hong Kong's Hang Seng, and China&#8217;s CSI 300 indices advanced. European markets were higher in early trade.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/equities/25/05/45536595/big-beautiful-bill-will-explode-the-deficit-and-make-the-rich-richer-congressional-budget-office-estimates-4-income-fall-for-lowest-decile-of-americans-by-2033">Big Beautiful Bill Will &#8216;Explode The Deficit,&#8217; And Make The Rich Richer: Congressional Budget Office Estimates 4% Income Fall For Lowest Decile Of Americans By 2033 </a></li>
</ul>
Photo courtesy: Shutterstock

Treasuries

Economics

Pre-Market Outlook

CFSB

DELL

US Stocks Likely To Open Lower, Expert Says 'Tariffs Remain A Headwind,' But 'Tax Cut' And 'Easing Of Tensions' In Middle East 'Could Propel Equities Closer To All-Time Highs' (CORRECTED)

GOOS

Canada Goose shares are trading higher following better-than-expected Q4 financial results.

The Company's second quarter and full year Fiscal 2026 guidance below assumes that the current level of tariffs on imports into the U.S. from China and other countries as of May 21, 2025 will stay in place for the remainder of the year. The Company's full year Fiscal 2026 guidance assumes that it can offset the significant incremental pressure it has experienced and continues to expect from tariffs.&nbsp;

Guidance

TJX Q2 Outlook Assumes Current Level Of Tariffs On Imports To US From China And Other Countries As Of May 21, 2025 Will Stay For Remainder Of The Year

TJX Companies shares are trading lower after the company issued soft Q2 guidance.

MediWound (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDWD#NASDAQ">MDWD</a>) sees FY2025 sales of $24.000 million vs $23.97 million analyst estimate.

MDWD

MediWound Sees FY2025 Sales $24.000M vs $23.97M Est

Jefferies analyst David Chiaverini initiates coverage on Cathay General (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CATY#NASDAQ">CATY</a>) with a Buy rating and announces Price Target of $53.

CATY

Jefferies Initiates Coverage On Cathay General with Buy Rating, Announces Price Target of $53

Small Cap

Press Releases

PATRIOT ANNOUNCES CLOSING OF C$69 MILLION STRATEGIC INVESTMENT, OFFTAKE AND STRATEGIC PARTNERSHIP WITH VOLKSWAGEN AND POWERCO

Patriot Battery Metals Commences 2025 Winter Drill Program at the Shaakichiuwaanaan Property

Multiple Wide, High-Grade Intercepts at the CV5 Pegmatite, including 153.8 m at 2.00% Li2O, Completes Drill Dataset for Upcoming Feasibility Study and Ore Reserve in Q3-2025

Patriot Announces Discovery of a Large Cesium Zone at Shaakichiuwaanaan

Patriot Provides Progress Update on the Feasibility Study at the Shaakichiuwaanaan Property

New Spodumene Pegmatite Cluster Discovered ~20 km from the CV5 Deposit

Senior Mining Executive - Frederic Mercier-Langevin to Join Patriot Battery Metals

Large, High-Grade Cesium Discovery Confirmed at Shaakichiuwaanaan, Canada

Patriot Provides Permitting Progress Update on the Shaakichiuwaanaan Lithium Project

Significant Mineral Resource Upgrade at Shaakichiuwaanaan Lithium Project to Underpin Impending Feasibility Study

PMETF

TSX:PMET

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