Daily Brief Financials: China Galaxy Securities (H), COG Financial Services, Intercontinental Exchange, Lippo Karawaci, The International Stock Exchange and more

• Everything changed this past week. China has launched major public stimulus programs which seem open-ended. They are less about money and more about greasing the wheels of risk.
• It still requires that OTHER PEOPLE take risk. Shorts covered. New speculative longs made. Better financing but still the same recourse. 
• But everything is going up. And believe it or not, Hs are outperforming As. Broker and Bank Hs seem like the right place to be.

• Following on from my decision to pass on Euroz another company I looked further into was COG Financial Services.
• Unitholders may be well familiar with this already as the second bidder for Diverger, and substantial shareholder of Centrepoint Alliance (Given I invested in both this says something about their capital allocation).
• COG is another financial services business operating predominately in the space of asset finance brokering and lending. 

• Intercontinental Exchange’s second quarter 2024 financial results demonstrate a dynamic performance with several growth facets tempered by areas needing attention.
• The company reported record net revenues totaling $2.3 billion, reflecting a 7% increase on a pro forma basis compared to the previous year.
• This growth is supported by acquisition synergies, notably from the acquisition of Black Knight, which has been integrated within its operations to bolster revenue streams.Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

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.

• Bharti Airtel
• Lippo Karawaci
• Softbank Group

• The International Stock Exchange (TISE) had an excellent half year to June 2024: revenue was up 22% to £6.4m and fully diluted EPS +27% to 105p.
• The second interim dividend was raised 67% to 75p, reflecting the new, higher payout, dividend policy.
• The performance, once again, demonstrates the strength of the business, this time against a background of more active markets.