Financials

• One of the key takeaways of the Corporate Value Up disclosures on the KIND system is that it could potentially lead to alpha generating investing opportunities. 
• Since the last week of May, there have been 7 companies that provided specific Corporate Value up programs; (4 major financials) have outperformed KOSPI.
• Companies such as KB Financial and Shinhan Financial that provide more meaningful Corporate Value Up action plans are likely to have greater impact on their share prices. 

• Delinquency ratios continued to worsen into 2Q24, with a couple of the South Korean banks seeing accelerating growth in NPL ratios; despite this, there are buy opportunities
• Our bigger cap pick is Hana Financial for its very attractive valuations, PEG and equity risk premia, as well as its solid core capital ratio and strong credit quality credentials
• Among the smaller caps, Woori stands out in terms of valuation, PEG ratio, credit quality and it has registered improving post-provision returns

• August 1st marks the beginning of the final five months of 2024, a year that has already been extraordinary for the crypto industry.
• This year has been unforgettable, with the crypto sector making a significant entrance on Wall Street with the launch of the first U.S. Bitcoin and Ethereum spot ETFs. The U.S. regulatory stance has also become more favorable towards crypto, recognizing it as a pivotal factor in the 2024 U.S. Presidential Election.
• Over and above that, banks and other financial institutions are eagerly lining up to offer crypto services.

• Successful launch of bitcoin ETF’s led to the filing and approval of Ethereum ETF’s
• Ethereum is the second largest cryptocurrency after bitcoin, with distinct differences in technology and operation
• The purpose of an ether ETF is to provide investors with exposure to the growing cryptocurrency market and decentralized technology.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Moody’s Corporation reported strong financial results for the latest quarter, showcasing significant growth across key metrics while also acknowledging areas of uncertainty that could impact future performance.
• The company achieved 22% revenue growth and an adjusted operating margin of nearly 50%, reflecting the firm’s ability to leverage its strong market position and disciplined cost management to generate substantial operating leverage.
• Additionally, Moody’s adjusted diluted EPS grew by 43%, further demonstrating its profitability and financial health.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We view Agile Group’s ESG as “Adequate”, in line with its Environmental and Social scores. That said, Governance is “Weak”. Controversies are “Immaterial” and Disclosure is “Adequate”.

Edison Investment Research is terminating coverage on AGBA (AGBA) and Norcros (NXR). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

• Operating revenue: JPY5.5bn (+19.0% YoY), driven by full consolidation of SBI Estate Finance group, origination-related revenue decreased.
• Operating expenses: JPY4.7bn (+11.6% YoY), driven by finance costs increase, personnel expenses decrease, and commission expenses increase.
• Pre-tax profit: JPY795mn (+77.1% YoY), with a pre-tax profit margin of 14.5%, reflecting a one-off factor in personnel expenses.

• In Q1 FY03/25, consolidated sales were JPY1.6bn (+38.5% YoY), with an operating profit of JPY48mn (JPY182mn loss in Q1 FY03/24).
• Business Production segment reported sales of JPY1.1bn (+15.0% YoY) and an operating loss of JPY70mn (JPY107mn profit in Q1 FY03/24).
• Venture Capital segment reported sales of JPY520mn (+145.3% YoY) and an operating profit of JPY378mn (JPY17mn loss in Q1 FY03/24).

IP Group’s largest life sciences holding at end-2023, Oxford Nanopore (ONT), which developed a new generation of nanopore-based sensing technology, announced earlier today that it has successfully completed an issue of 66.7m ordinary shares (c 7.6% of its issued capital), raising £80m of gross proceeds (upsized from the initial £75m as the issue was multiple times oversubscribed). This includes a £50m strategic investment by Novo Holdings (the controlling shareholder of Novo Nordisk and Novozymes), with the remaining proceeds coming from institutional investors. As per the announcement, Novo Holdings currently intends (subject to availability and price, among others) to purchase another £10m worth of ONT shares over time in the market.

Picton Property Income’s Q125 trading update shows DPS, increased by 6% from Q423, fully covered by EPRA earnings. Our unchanged forecasts show continuing earnings growth, driven by positive leasing momentum and asset management initiatives underway. Net asset value has stabilised, supported by improving sentiment in the property market and the prospect of interest rate reductions.

• American Tower is a leading owner, operator, and developer of communications real estate with a large portfolio in the US
• The author sees the current trading in American Tower as an attractive entry point for investors
• The tower business is described as having valuable real estate, organic growth driven by data consumption, and strong demand for communication infrastructure

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Operating revenue: JPY5.5bn (+19.0% YoY), driven by full consolidation of SBI Estate Finance group, origination-related revenue decreased.
• Operating expenses: JPY4.7bn (+11.6% YoY), driven by finance costs increase, personnel expenses decrease, and commission expenses increase.
• Pre-tax profit: JPY795mn (+77.1% YoY), with a pre-tax profit margin of 14.5%, reflecting a one-off factor in personnel expenses.

• The Bank of Japan has raised its short-term interest rate to 0.25% from 0.1% ahead of the core of consensus expectations, and BoJ plans to pare back purchases of JGBs
• We focus on those big-cap Japanese banks that are well geared into higher domestic rates through loan books and BoJ deposits, that also have lesser exposure to rising JGB yields
• We stay broadly positive on Japanese bank shares, despite their performance; we add Chiba to the buy list of Resona, Mizuho, SMFG and Concordia, whilst keeping Kyoto as a sell

• Bank Central Asia (BBCA IJ) booked another set of impressive results in 2Q2024, with continuing momentum behind loan growth driven by corporate and consumer loans, with credit quality under control.
• The bank continued to grow its deposits with CASA growth outpacing overall deposits, which helped underpin an increase in net interest margin to 5.8%, with credit costs at 0.2%
• BCA remains a top pick amongst Indonesian banks, with a long-term track record of producing sector returns, with a strong risk management but dynamic management culture. 

• Revenue: JPY12.9bn (+15.4% YoY), Gross profit: JPY4.4bn (+12.2% YoY), Operating profit: JPY2.5bn (+15.3% YoY).
• Self-Storage segment: Revenue JPY10.0bn (+17.2% YoY), Gross profit JPY3.7bn (+17.8% YoY), Operating profit JPY2.7bn (+17.5% YoY).
• Land Rights Consolidation: Revenue JPY2.1bn (+9.6% YoY), Gross profit JPY538mn (-18.1% YoY), Operating profit JPY340mn (-9.3% YoY).

• We are trading the newly launched U.S. Ethereum spot ETFs.We have decided to allocate ten percentage points of our Crypto Portfolio from our Bitcoin holdings to purchase more Ether for a short-term trade.
• We are buying Ethereum (ETH) at $3,315.18 and selling part of our Bitcoin (BTC) position at $66,203.95.
• This trade will be reflected on the Crypto Portfolio page later today.

• Revenue increased 45.3% YoY to JPY13.3bn, driven by a rise in deals closed and large-scale projects.
• Cost of revenue grew 51.1% YoY to JPY4.7bn, influenced by higher incentive salaries and personnel costs.
• SG&A expenses rose 16.6% YoY to JPY3.6bn due to increased rent expenses from headquarters expansion in March 2023.

• Consolidated ordinary income was JPY21.9bn (-12.7% YoY), ordinary profit JPY3.7bn (-58.8% YoY), and profit attributable to owners JPY2.4bn (-63.8% YoY).
• Consolidated gross profit was JPY8.1bn (-13.5% YoY), with net interest income up JPY196mn, net fees and commissions up JPY418mn, and net other operating income down JPY1.9bn.
• Hokkoku Bank’s core gross profit was JPY9.2bn (+8.1% YoY), core operating profit JPY1.9bn (+41.3% YoY), and ordinary profit JPY3.3bn (-62.8% YoY).

• Revenue increased 67.5% YoY to JPY15.0bn, operating profit rose 92.8% YoY to JPY6.2bn.
• Operating Lease business revenue grew 64.4% YoY, with equity sales reaching JPY61.4bn, up 82.9% YoY.
• Foreign exchange gain of JPY2.2bn recorded, contributing to increased recurring profit and net income in 1H.

• Operating revenue increased 9.3% YoY to JPY63.1bn, driven by core business growth and newly consolidated subsidiaries.
• Operating expenses rose 7.0% YoY to JPY58.0bn, with SG&A and financing expenses contributing significantly to the increase.
• Recurring profit surged 45.3% YoY to JPY5.1bn, with a progress rate of 25.4% against the revised forecast.

BlackRock Latin American Investment Trust’s (BRLA’s) managers Sam Vecht (lead) and Christoph Brinkmann (deputy) remain upbeat about the prospects for the trust and the region, even though FY23 was a year when the MSCI Emerging Markets Index surpassed the performance of most other global indices and BRLA’s results were even better. Latin American central banks have been proactive in raising interest rates to combat inflation and are now lowering rates, which should support both economic activity and asset prices. The region has distanced itself from rising geopolitical conflicts across the globe, a stance that the managers believe will attract both foreign direct investment and increasing interest from regional investors.

• Consolidated ordinary profit increased 83.7% YoY to JPY6.6bn, achieving 58.2% of the 1H target.
• Non-consolidated profit rose 557.4% YoY to JPY4.6bn, driven by higher net interest income and consulting division earnings.
• Loans outstanding grew 10.4% YoY to JPY4.8tn, while deposit balance increased 17.0% YoY to JPY6.6tn.

• Companies in India have disclosed their shareholding pattern as of end-June in July. There are companies with significant float changes from end-December and/or end-March.
• The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in action from passive trackers.
• Depending on the date that the shareholding was published, there could be 12 stocks with passive inflows from global trackers while 5 could see passive outflows in August.

• On 30 July, it was reported that IMM Private Equity (PE) sold a 2.3% stake (16.78 million shares) of Woori Financial Group (WFG), which was worth 264 billion won. 
• Block deal sale price was 15,737 won (0.4% higher than current price). Today’s block deal sale represents a second block deal sale of Woori Financial by IMM PE in 2024. 
• Under the mid-to-long term Value Up program, Woori Financial Group aims to achieve a sustainable ROE of 10% and total shareholder returns of 50%.

• The size of the offering is expected to trigger intra-quarter implementations for both main global indices to be announced on 30 July and become effective 1 August.
• Free float increase is estimated to take place due to Thoma Bravo – Nasdaq’s major strategic shareholder – offering almost half of its stake equivalent to ~$2.7bn. 
• Total forecasted passive fund demand is ~5.3m shares, ~$368m and ~1.8 ADV. It is expected to materialize at close of 1 August 2024. 

• Historical analysis suggests that previous lows in yen or highs in dollar yen may be difficult to recapture after significant technical damage.
• The yen strength is influenced by wide US minus Japan real policy rate differentials, skewing historical results in a more yen bearish direction.
• Expectations for the upcoming BOJ meeting include a 15 basis point rate hike and a halving of bond purchases, leading to dispersion of views among investors on the timing of rate hikes.

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• Net operating revenue: JPY9.4bn (+14.8% YoY; -5.0% QoQ), Operating profit: JPY4.2bn (+17.8% YoY; -2.8% QoQ).
• Total commissions: JPY5.2bn (+7.6% YoY; -16.7% QoQ), Brokerage commissions: JPY4.9bn (+7.2% YoY; -17.4% QoQ).
• SG&A expenses: JPY5.2bn (+12.4% YoY; -6.7% QoQ), Personnel expenses: JPY976mn (+12.2% YoY; +4.8% QoQ).

• In recent weeks, Bitcoin has shown signs of life, almost reaching $70,000 this morning.
• In our view, it is only a matter of time before we break through this psychological level.
• Enough about Bitcoin. As promised in last week’s Crypto Moves #36, this Crypto Crisp will focus on Ethereum ETFs.

• BTC’s July surge highlights market volatility and potential Q3 consolidation.
• Spot ETF launches drive significant crypto inflows, influencing market dynamics.
• Upcoming token unlocks could impact market liquidity and trading conditions.

• Moon River recently announced a highly economic PEA on its Davidson Project in B.C., the highest-grade molybdenum project outside of China.
• The acquisition of a 25% stake in the Endako Project reduces single asset risk, providing MOO with $2M in working capital, $40M for maintenance and reclamation costs, as well as providing interest income to cover corporate G&A, offering substantial upside for the Company.
• Moon River looks to take advantage of a booming molybdenum market.

• ABG’s 1H’24 results showed the group’s continued evolution to optimise its franchise value.
• 2023 saw the peak benefits from ABG’s relationship deposit franchise in the recent rising rate environment.
• Margins could be widened while still giving customers competitive products.

• Value-Up plan announcements had a significant immediate price impact, especially for Woori Financial and Shinhan Financial, amplified by recent dividend tax reductions.
• We should target companies likely to announce value-up disclosures soon, focusing on those with prior notices. Notably, KB Financial and DB HiTek have issued prior notices.
• Both companies hold many treasury shares. KB Financial is a dividend stock, with value-up disclosures likely during their Q3 and Q4 earnings announcements.

• A new tax support framework for Korea’s value-up policy was introduced, but local markets argue that proportionate protection for minority shareholders is crucial for a significant market value increase.
• Korean political leaders are united in supporting this amendment to the Commercial Act, with recent events increasing the likelihood of bipartisan support for this crucial change.
• Given the administration’s commitment to the value-up and recent negative sentiment towards recent restructurings at Doosan and SK, there’s growing potential for minority shareholder protection to take root in Korea.

• Murakami’s entity, City Index Eleventh, and daughter reported a 5.05% position in Heiwa Real Estate (8803 JP). The shares were purchased from 24 May to 22 July.
• Murakami’s average buy-in price is JPY3,907.38, a 6.7% discount to the last close price. Recently, Simplex (the previous largest shareholder) sold its entire stake to Taisei Co Ltd (4649 JP).
• Murakami’s disclosure suggests two possibilities: the start of an activist campaign or a short-term pump-and-dump play. Recent precedents indicate the latter.

• Implied Volatilities (IVs) sold off dramatically post Budget Event – in spite of weaker underlying indices. Larger break of trading ranges likely needed to stall the slide in IVs.
• Wait-And-See approach to tactical decisions justified. Vol-Regime avoids a switch from “High & Down” state. Protracted grind lower in IVs projected.
• Vol Surface Smile has compressed alongside lower IVs. Skew remains unaffected by change in IV levels. Vol Term-structure has flattened.

• Shinhan Financial announced that it plans to increase shareholder return ratio to 50%, improve ROE to 10%, and reduce outstanding shares by 50 million+ by 2027.
• Shinhan Financial Group’s new, outstanding shareholder return policy has been one of the most impressive since the roll-out of the Corporate Value Up program in Korea a few weeks ago.
• The improved corporate governance policy is likely to lead to Shinhan Financial Group outperforming other financial stocks in Korea and KOSPI overall in the next 6-12 months. 

• Lot’s of confusion for me around Lufax (LU).
• I took my dividend in shares being under the impression the scrip price was $2.15 (1 ADR is 2 shares):“Option 2: Elect Stock – You may elect to receive the dividend paid in new ADRs of LUFAX HLDG LTD at rate USD 1.073647 per share held on record date.”
• But apparently it is actually $2.25? Did IBKR make a mistake, will I get my shares at $2.15 or did I misread the above? 

• Consolidated net operating revenue: JPY17.0bn (-16.0% YoY; -2.7% QoQ), with commissions received at JPY8.7bn (-11.5% YoY; +10.0% QoQ).
• US segment: Net operating revenue USD74.1mn (+4.5% YoY; +0.7% QoQ), SG&A expenses USD59.4mn (-1.1% YoY; -4.5% QoQ).
• Crypto Asset segment: Net operating revenue JPY3.1bn (+164.3% YoY; -29.6% QoQ), SG&A expenses JPY2.5bn (+55.3% YoY; +22.4% QoQ).

Record reported steady progress in its Q125 trading update. Assets under management (AUM) grew $0.5bn in the quarter to $102.7bn, driven by market and other movements of +$1bn offset by a modest net $0.5bn outflow. The AUM progression is in line with our end-FY25 estimate of $104.7bn. Performance fees surprised positively at £1.6m in the quarter, not much below our £2m estimate for the full year. We are not changing our estimates at this stage.

• Discover Financial Services is a successful business with strong financial performance and ownership of the Discover Network and Pulse debit card scheme in the US
• DFS focuses on prime customers and has a high-quality deposit base, remaining profitable during challenging economic times
• A merger announcement with Capital One Financial Corp. could reshape the financial services industry, with DFS set to be acquired at a significant premium to its undisturbed price

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Krung Thai is our sole best value pick among the Thai banks, having solid post-provision profitability, near double digit ROE, a sound balance sheet and attractive PBV and PE ratios
• We downgrade Kasikorn from buy to neutral, as it has an unattractive PEG and we believe it is more exposed to credit quality deterioration and potential cost of risk reversal
• Bank Ayudhya is suffering from further credit quality deterioration which led to spike in its cost of risk; it now has the lowest NPL coverage relative to the peer group

• Credit metrics continue to improve, with NPLs down to INR404bn in 1Q25 from INR458bn YoY and from INR407bn QoQ
• Net loan growth continues to rise by about INR1tr each quarter, with net loans at INR9,465bn in 1Q25 up from INR8,554bn YoY and INR9,318bn QoQ
• There are pressures on costs and margins, so the story is not all perfect, with NIM pressure potentially to reverse as LDR expands

• Mr. Cooper has seen impressive growth in the past 5 years, with shares up around 392%
• The market often misunderstands Mr. Cooper as cyclical, volatile, and rate-sensitive, but the company’s business model is “naturally hedged”
• The current low-rate environment and undersupply of housing in the US present growth opportunities for Mr. Cooper, making it a recommended investment according to the author’s detailed analysis.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• SK Hynix

• Waaay back in June 2023, MUFG (8306 JP) and 92.7%-held Adira Dinamika (ADMF IJ) entered into SPAs with key shareholders to acquire an 80.6% stake in Mandala Multifinance (MFIN IJ).
• MFIN’s shareholders overwhelmingly approved the change of control at the 13th Feb EGM. OJK signing off was the next hurdle.
• The Tender Offer is now open, at the (expected) price of  IDR 3,297/share. The close of the Offer is the 21st August, with payment on the 28th August. 

Molten Ventures has recently completed the exits from Perkbox, Endomag and Graphcore. This translates into more than £70m realisation proceeds, which means Molten is on track to reach the £100m that management expects for FY25. As a result, Molten has announced a £10m buyback programme (starting on 26 July), in line with its recently updated capital allocation policy of earmarking at least 10% of realisation proceeds for share repurchases. Molten has also agreed a new £180m debt facility that replaces the previous £150m facility maturing in September 2024.

• Among bigger cap GEM banks, we pick five longs and two shorts as our conviction calls; we add country-based equity risk premia to our screening process
• Our core buys are Bank Mandiri from Indonesia, Hana Financial from South Korea, CIMB Group from Malaysia, Bradesco from Brazil and CCB from China; four of these are value picks
• Our sells are Kotak Mahindra Bank and ICICI Bank from India, both richly valued larger cap banks that have benefited from past economic and political tailwinds with headwinds now emerging

• Marsh McLennan, a global professional services firm reported strong financial results for the second quarter of 2024.
• The results demonstrated the company’s ability to deliver growth in the short term while simultaneously investing for long-term sustainability.
• Marsh McLennan posted a 6% increase in underlying revenue growth on top of 11% in the same period last year, reflecting strong execution across Risk and Insurance Services (RIS) and Consulting.

• Market consolidation signals opportunity, not the end: we’re just in the 2nd or 3rd inning of the crypto cycle.
• Bitcoin and Ethereum ETFs bring unprecedented demand, setting the stage for significant market movements.
• Solana’s on-chain activity and retail adoption make it the standout trade of this cycle.

• The highest dividend tax rate drops from 49.5% to 25%, leading the local capital market to view the reform as more shareholder-focused than company-focused.
• The top inheritance tax rate drops from the 60% range to 40%, a meaningful reduction for conglomerates like Hyundai and Hanwha, though below initial expectations.
• Tax incentives in the reform are less aggressive than expected, with modest corporate and inheritance tax cuts. However, this compromise increases the likelihood of its passage, boosting short-term market expectations.

• Reconstructed board of Yes Bank implemented an ill-conceived, poorly executed retail strategy to revive the bank
• Structural problem of low net interest margin and high overheads not resolved
• Retail assets strategy characterised by low yield, high operating cost and rising credit cost which the bank has finally acknowledged

• Ashford Inc. has approved a going dark transaction offering $5.00 cash per share to common stockholders with fewer than 10,000 shares
• Potential profits of $2,300 using 9,999 shares represent a 4.8% return, annualizing to 19.2% due to a projected July closing
• AINC is a hotel management company led by Monty Bennett, and the transaction is subject to a stockholder vote and IRA Waiver Proposal, with directors and executive officers expressing their support.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• P10 is an alternative asset manager providing access to private markets, charging fees on committed capital over a 10-to-15-year period.
• Recent decrease in cash margins due to factors like strategy mix shift and CEO transition has led to P10 trading at a highly discounted multiple of AUM and revenue.
• Valuation uncertainty and disappointing growth forecasts for 2024 may be offset by potential for growth and re-rating of equity with new CEO focused on improving FPAUM and margins.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• The U.S.-based Ethereum spot ETFs were launched on Tuesday, concluding their second trading session yesterday.
• Since the launch, Ethereum has declined slightly both in dollar terms and relative to Bitcoin.
• Despite this situation, there is nothing to fear – in fact, quite the opposite, as we will demonstrate in today’s Crypto Moves.

• The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
• In this insight, we take a look at the upcoming constituent changes in the run up to the September 2024 index rebal event.
• We expect two regular changes during September. More interestingly, a couple of SP500 members are working on spin-offs which could trigger some high-impact deletions over the next few months.

• FSS’s leaked IPO guidelines include new, highly attention-grabbing additions: specifically, the disclosure of extra information from the bookbuilding and lockup results not mentioned in May.
• Institutions submitting prices outside the indicative band must be disclosed by KRX investor type. Additionally, average placed price information for lockup-pledged investors must be disclosed.
• FSS will distribute new IPO guidelines this week and apply them from next month. Major IPOs like K Bank must disclose more detailed bookbuilding and lockup results, impacting trading dynamics.

• With the review period nearly complete, Canara Bank (CBK IN) should replace Bandhan Bank Ltd (BANDHAN IN) in the NSE Nifty Bank Index (NSEBANK INDEX) in September.
• Passive trackers will need to buy over 2 days of ADV in Canara Bank (CBK IN) while selling over 1 day of ADV in Bandhan Bank Ltd (BANDHAN IN).
• There is a strong possibility of Bandhan Bank Ltd (BANDHAN IN) being deleted from a global index in August and that could put the stock under even more pressure.

• Banco de Sabadell’s Q2 2024 results highlight strong performance, strategic progress, and effective capital management.
• Sabadell is currently trading at a 0.89x P/TBV (vs. 5-y 0.41x average), accurately representing its profitability and RoTE outlook. It is also trading at 7.5x Fwd P/E.
• BBVA’s takeover bid is unlikely to succeed unless BBVA enhances the share exchange ratio or includes some cash. Gross spread (1 BBVA x 4.83 SAB) is just 3.4%.

• Breadth has expanded significantly in recent weeks with the Russell 2000 (IWM) breaking above major 2.5-year resistance at $210; $210 is now critical support moving forward.
• Technology/Large-Cap growth/Nasdaq 100 (QQQ) has consolidated after getting extended, and with June 12 gap support on QQQ getting filled/breaking today, it appears this pullback is likely to continue.
• The SPX is breaking its 20-day MA. June 12th gap at 5375-5409 is potential support, but it appears a pullback in the SPX and QQQ may be headed to 5191/$449.

• Credit spreads have traded in a tight range despite various market events
• High yield spreads have tightened throughout the month
• Macro factors like growth, inflation, and Fed policies are more important for credit markets than the political environment

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Primary Health Properties’ (PHP’s) H124 results show continuing earnings and dividend growth, driven by rental income and underpinned by a low cost ratio and significantly fixed borrowing costs. With open market rental growth, covering two-thirds of rent roll, accelerating further, we forecast this to continue through FY26, which would mark 30 years of unbroken dividend growth.

• Revenue increased to JPY5.1bn (+7.3% YoY), with operating profit at JPY1.6bn (+171.7% YoY) and net income at JPY1.1bn (+32.6% YoY).
• Capital gains reached JPY2.5bn (+33.2% YoY), with JPY570mn from listed shares and JPY1.9bn from unlisted shares.
• Total investment in Q1 FY03/25 was JPY9.9bn, with JPY5.7bn for domestic VC investments and JPY4.2bn for the US.