In today’s briefing:
- Bank of Jinzhou (416 HK) To Be Taken Private
- Evergrande’s Wind-Up Ruling Implications
- Postcard from Ranchi | The Wild Wild East
- IDFC First Bank (IDFCBK IN): Long-Term Guidance 2.0; Clarity of Thought Is a Source of Comfort
- EQD | ASX200 Rally: How Much Higher?
Bank of Jinzhou (416 HK) To Be Taken Private
- Back on the 20th January 2023, shares in Bank Of Jinzhou (416 HK) (BoJ) were suspended due to a delay in publishing its FY22 results.
- BoJ was previously bailed out in March 2020 by the PBOC and Liaoning Financial Holdings, owned by the finance authority of Liaoning province, via the placement of new domestic shares.
- Now Liaoning Financial is taking BoJ private at HK$1.38/share, or ~0.28x P/B.
Evergrande’s Wind-Up Ruling Implications
- Temporary implications of Evergrande’s court ruling on property sector sentiment and other troubled property developers’ restructuring plans
- Evergrande’s situation is more complicated than that of other troubled developers, as its founder is still under arrest and the company is unable to issue new debts.
- Cross-Border bankruptcy cases for Chinese companies are still relatively rare, making the recognition and enforcement of Hong Kong bankruptcy judgments by the PRC court uncertain
Postcard from Ranchi | The Wild Wild East
- With the “Postcard” series, our objective is to bring to our readers on-ground insights based on interactions across key channels located in tier 2 and tier 3 locations.
- For this Postcard, we travel to the east to the city of Ranchi, located in the heart of Jharkhand.
- Stocks in focus include Utkarsh Small Finance Bank (1639303D IN), Aditya Vision (AVL IN), Mahindra & Mahindra (MM IN), Vedant Fashions (MANYAVAR IN).
IDFC First Bank (IDFCBK IN): Long-Term Guidance 2.0; Clarity of Thought Is a Source of Comfort
- IDFC First Bank Limited (IDFCBK IN) management has provided long-term strategic guidance along with its 3Q24 results, which lays down a clear roadmap for the bank’s progress.
- The latest results are slightly below estimates but the medium-term factors for our thesis haven’t changed – viz. a strong franchise underscored by heavy retail footprint and incrementally improving unit-economics.
- We reiterate “Long-term Buy”, with 42% upside in near-term, as the bank continues to realize the benefits of its increasing scale on its earnings profile.
EQD | ASX200 Rally: How Much Higher?
- The S&P/ASX 200 INDEX started to go up again after just 1 week down, now starting the 2nd week up, we want to evaluate how far it can go.
- There are a number of Q2 resistance levels just above the 7600 price area for the next 2 weeks, so if the index goes up there it will be overbought.
- This pattern is bullish, you need to wait for at least 3 or 4 weeks up in a row before going SHORT, unless you love to take risks…
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