Daily Brief Financials: Axis Bank Ltd, HSBC Holdings, S&P 500 INDEX, Yanlord Land, Prudential , LuxUrban Hotels , Freshworks, Picton Property Income and more

• Axis Capital is a 100% subsidiary of Axis Bank Ltd (AXSB IN) and one of its businesses is structured finance
• The Sojo Infotel is a high-risk transaction undertaken by Axis Capital which was underwritten by the company with the implicit support of the bank as per the credit rating agency
• When the transaction was done it was 50% of Axis Capital’s equity and default risk is high as the redemption date is on March 25, 2024

• HSBC holds 19% of BoCom and still carries it with a value of USD23.3bn despite the stock market valuation putting it closer to USD8.1bn on YE22 figures.
• The bank cites its Value In Use testing as the justifiable reason for this gap, and this testing will include major assumptions like discount rates and long term growth rates.
• Goodwill and other intangible charges were USD10.6bn in FY08, USD3.4bn in FY16, and USD7.4bn in FY19 for HSBC.

• The S&P 500 INDEX at the moment has lost its momentum and is pulling back towards the Q2 (4751) and Q3 (4713) support levels, where it would be DAILY OVERSOLD.
• A DAILY reversal could happen today or tomorrow from prices between 4750 and 4700.
• This trade is a quick scalp, the goal is to profit from a 1-bar reversal, after that we cannot predict the market direction, so caution is advised.

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.

• Yanlord Land

• PICC P&C’s Q3 underwriting profitability deteriorated due to typhoon/catastrophe-related losses in both motor and non-motor business.
• Samsung Life’s new business growth momentum continued in Q3’23; new business CSM margin slightly improved QoQ.
• Prudential disclosed limited details in its Q3 results but we can see the growth trend of new business volume and profits continuing in the quarter.

• LuxUrban Hotels (NASDAQ: LUXH) is a Miami-based hotel lessee and operator.
• Founded in 2017, LuxUrban (then called CorpHousing Inc) initially focused on the short-term corporate housing market, leasing and then re-leasing houses to business travelers.
• The pandemic severely impacted demand in that market and in 2021 LuxUrban exited the corporate rentals space.

• This is our first report on Freshworks Inc, a renowned customer service software player.
• Increased free cash flow along with a rise in the free cash flow margin to 14% likewise surpassed estimates.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Having previously updated on Picton Property Income’s H124 results, we are re-instating forecasts following the cessation of merger discussions with UKCM. In a challenging environment, H124 financial performance was resilient, supporting fully covered DPS. Meanwhile, the company continues to believe that there are strategic and financial benefits to combining complementary businesses, particularly within an internal management structure, including economies of scale and enhanced earnings.