In today’s briefing:
- BEA – Far Worse Deterioration in Hong Kong than Other Regions & Sharply Lower HFD Centa City Index
- Korea’s New Retail Pool Borrow Fee Calculation & Disclosure Rules: Impacts on Flow Trading
- Asirvad Micro Finance Pre-IPO – Accelerating Profitability Growth but with a Litany of Legal Cases
- Quiddity Leaderboard SET50 Dec 24: 4 Changes Possible; Reference Period Starts on 1st Sep
- Back to Jafco- Continues to Be in the Right Place and at the Right Time
- Sansiri – Hyatt Acquires Standard International
- Kalpataru Pre-IPO Tearsheet
- CPKF: Increasing 2024 and 2025 Estimates
BEA – Far Worse Deterioration in Hong Kong than Other Regions & Sharply Lower HFD Centa City Index
- Data from Bank of East Asia (23 HK) is just out with poor 1H24 results YoY
- Notable in its release are its Hong Kong overdue exposure by over three months
- Hong Kong region income is the worst affected by credit costs, this does not seem to be over
Korea’s New Retail Pool Borrow Fee Calculation & Disclosure Rules: Impacts on Flow Trading
- The new rule mandates that retail pool fees be tied to the fees paid by institutional borrowers, and this information must be publicly disclosed.
- This rule ensures faster, more accurate market release of stock-specific borrow fees, which are now tied to actual fees received, replacing the arbitrarily set rates by brokerages.
- With short-selling resuming next April, this rule could drive new flow trading strategies and significantly influence target screening in the short-selling market.
Asirvad Micro Finance Pre-IPO – Accelerating Profitability Growth but with a Litany of Legal Cases
- Asirvad Micro Finance Limited (1053198D IN) is looking to raise around US$183m in its upcoming India IPO.
- Asirvad Micro Finance Limited (Asirvad) is a non-banking finance company (NBFC), and a microfinance institution (MFI) offering small loans to low-income women in India.
- In this note, we talk about the company’s historical performance.
Quiddity Leaderboard SET50 Dec 24: 4 Changes Possible; Reference Period Starts on 1st Sep
- The SET50 index tracks the performance of the top 50 largest and most liquid names listed on the Stock Exchange of Thailand (SET).
- In this insight, we take a look at the potential ADDs/DELs for SET 50 during the index rebal event in December 2024.
- Currently, we see 4 expected ADDs/DELs but the 3-month reference period used for average market cap rankings starts on 1st September and only after that the rankings will become stable.
Back to Jafco- Continues to Be in the Right Place and at the Right Time
- Its portfolio of Japanese investments should benefit from the change in investor focus to domestic names.
- Has shown strong outperformance since the sell-off presaging future relative strength
- The business itself progressing as planned for increased shareholder returns
Sansiri – Hyatt Acquires Standard International
- We maintain an Outperform rating on SIRI, holding a positive view on the sale of hotel management rights to the Hyatt Group, which is favorable to both the firm’s earnings and financial position.
- SIRI’s fundamental valuation is attractive, while the tactical factors are viewed neutrally. This should help offset the slower EPS growth expected due to the high base in 2023.
- The 1H24 dividend yield is 4.0% from the DPS of Bt0.07, with the XD date scheduled for August 28, 2024.
Kalpataru Pre-IPO Tearsheet
- Kalpataru Limited (KTARU IN) is looking to raise about US$189m in its upcoming India IPO. The deal will be run by ICICI, JM Fin and Nomura.
- Kalpataru is an integrated real estate development company involved in activities associated with real estate development, including identification and acquisition of land, planning, designing, execution, sales, and marketing of projects.
- It is a prominent real estate developer in the Mumbai Metropolitan Region (MMR) and is present across all micro-markets in MMR, as per an Anarock Report.
CPKF: Increasing 2024 and 2025 Estimates
- We are increasing our diluted EPS estimate for 2024 by $0.11, from $2.19 to $2.30, a 7% gain from 2023’s actual diluted EPS of $2.15 and raising our diluted EPS estimate for 2025 from $2.35 per share to $2.40 per share, a 4% gain over our 2024 estimate.
- We expect good gains in net interest income in 2024 and 2025 as solid loan growth, estimated at 10% in 2024 and 8% in 2025, will be aided by improving prospects for CPKF’s net interest margin (NIM).
- We have raised our NIM estimate for 2024 by 13 basis points from 3.32% to 3.45%, down 5 basis from 3.50% in 2023, and for 2025 by 15 basis points from 3.35% to 3.50%, up 5 basis points from our 2024 estimate.
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