Daily Brief Financials: Binjiang Service Group, Jingdong Property, Zenkoku Hosho, China Overseas Land & Investment, Standard Life UK Smaller Co Trust and more

• Binjiang Service Group (3316 HK) reported a solid earnings growth of 28% YoY, with revenue up 41%. Binjiang has outperformed its peers in the PMC space by a long way.
• Net cash on the balance sheet increased to 37% of the current market capitalization, led by the growth of operating profits and payables.
• The PE FY23e/24e now is a modest 11.2x FY23e/9.2x FY24e with dividend yield of 5.4%/6.5% FY23e/24e (assuming a 60% payout ratio).

• Jingdong 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 others in China and in Asia.
• As of Dec 22, the firm’s portfolio of Modern Infrastructure Assets has a total AUM of RMB93.7bn, occupying a total gross floor area (GFA) of 23.3m sqm. 

• The share price has declined by 15% from its March high, perhaps on misplaced concerns about its HTM bond book and capitalization. 
• We have little concern about a collapse in the Japanese housing market and see little impact from higher defaults on capitalization. 
• We see a modest 19% downside if management continues to build up excess capital.  Hibiki’s plan points to over 20% upside. 

• At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
• A large triple bottom in 2021/2022 has confirmed a likely multi-year base and evolving multi-year uptrend. Q1 2023 has delivered a correction within the evolving uptrend.
• A bullish weekly reversal pattern last week has confirmed that the 2023 correction is likely complete. Initial target at 23.20 (+11%), the break above which will target 27.35 (+30%).

abrdn UK Smaller Companies Growth Trust’s (AUSC’s) lead manager is Abby Glennie following the retirement of Harry Nimmo at the end of 2022. She had been the trust’s co-manager since mid-November 2020 and had worked closely with Nimmo since January 2016; Glennie manages the fund with investment director Amanda Yeaman. There is no change to the investment process, which has proved successful over multiple market cycles. Stocks are screened using the proprietary Matrix to highlight which companies fulfil the managers’ strict quality, growth and momentum criteria. They are confident that over the long term, investors will benefit from the high quality attributes of investee companies as they should have a greater ability to deliver against consensus earnings expectations, regardless of economic conditions.