Daily Brief Financials: Abacus Property, HomeCo Daily Needs REIT, Hailan Holdings , JD Property, DBS, HDFC Bank, Binance Coin, Intercontinental Exchange, Sino-Ocean Group and more

• Back in February with the H1 results announcement, Abacus Property (ABP AU) announced an intention to spin off an ASX-Listed Self Storage REIT with A$3bn in total assets.
• The stock popped 7.4% to A$3.06 but is -16% since. In April they dropped their equity holding in National Storage REIT (NSR AU), in May they updated again.  
• Last week they had a big new Investor Presentation saying they would go ahead. There’s a trade in here. 

• The upcoming rebalance of the MVIS Australia A-REIT Index will be implemented at the close on 16 June. There are no constituent changes, but there are float and capping changes.
• Estimated one-way turnover at the rebalance is 2.7% resulting in a one-way trade of A$16.6m. There is limited impact on the index constituents.
• The largest inflows are on Scentre Group, HomeCo Daily Needs REIT and Region Re, while the largest outflows are on Stockland, Mirvac Group, Dexus Property and Goodman Group.

• Hailan Holdings (2278 HK)‘s voluntary conditional offer from its controlling shareholder at HK$3.36 per share is open. The IFA opines that the offer is fair and reasonable.
• The offer is subject to a 90% minimum acceptance condition – the offeror holds at least 90% of the offer shares and the disinterested shares.
• The acceptance condition is daunting due to the high hurdle rate and the lack of a bump. The current gross spread of 5.0% equals the premium to the undisturbed price.  

• JD Property (JDP HK)/JDP, a leading modern infrastructure provider in Asia, has filed for a US$1 billion HKEx IPO. JD.com Inc (ADR) (JD US) owns a 74.96% stake.
• JDP is the third and second largest modern infrastructure provider in Asia and China, respectively, in terms of GFA, according to JLL.
• The key elements of the bull case rest on large addressable markets, market share gains, reducing dependence on JD Group, core business’ accelerating organic growth and improving margin.

• Oil is down dramatically from USD83.26 in April this year to USD67.37 now
• DBS saw a surge in NPLs in FY16 from the oil price decline in that time
• There appears to be some correlation between DBS and oil prices

• Obnoxious video of bank official abusing staff for not meeting unrealistic sales targets
• Issue is widely prevalent in the private sector financial system demonstrating poor leadership, communicational and motivational training
• Setting aggressive sales target results in mis-selling, undermines confidence in the financial system and regulatory intervention may impact profitability.

• Binance.US is bleeding. One week after the SEC lawsuit, market makers and traders have fled the exchange en masse.
• Liquidity, as measured by aggregated market depth for 17 tokens on the exchange, has fallen nearly 80% over the past week.
• On June 4, the day before the SEC lawsuit, market depth was $34mn. Today, market depth is just $7mn.

• JD Property (JDP HK) is looking to raise about US$1bn in its upcoming Hong Kong IPO.
• JD Property (JDP) develops and manages modern infrastructure, consisting primarily of logistics parks, as well as business parks and other assets in China and in Asia.
• We have looked at the company’s past performance in our earlier notes, in this note we will undertake a peer comparison.

• Intercontinental Exchange managed to exceed analyst expectations in terms of revenue as well as earnings.
• Their interest rate markets also saw volume rise in the first quarter due to increased hedging activity from central bank activities and banking concerns.
• Intercontinental Exchange also had significant volumes in its SONIA contract, up 12% from the previous year.

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.

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