Daily Brief Financials: China Merchants China Direct Investments, Edelweiss Financial Services, Burford Capital, Bitcoin, Migalo Holdings, Korea Stock Exchange KOSPI 200, IP Group PLC and more

• At the AGM yesterday, China Merchants China Direct Investments (133 HK)‘s director Elizabeth Kan was re-appointed, but by a wafer-thin margin: 29.97% of shares out FOR, and 29.44% AGAINST.
• Stripping out Victor Chu’s stake (~2%?) and China Merchant’s (27.6%), or collectively ~29.6% of shares out, it’s fair to say the remainder of the shareholder register wants her out. 
• CMCDI is currently trading at a 55% discount to the latest NAV (as at 31st May 2024) of HK$30.42/share.  Argyle continues to add to its position. 

• Edelweiss reported a strong Q4FY24 led by robust performance across businesses. The asset management business continues to be the lead performer. Insurance businesses are also growing at an industry-leading pace.
• Most notably, the credit business seems to be gaining momentum now, led by co-lending. MSME co-lending disbursements tripled while housing finance (HFC) co-lending disbursements doubled in FY24. 
• To unlock value and reduce debt at the corporate level, Edelweiss is planning a minority stake sale in the Alternative Asset Management business.

• Burford Capital is a leading provider of litigation finance with a market capitalization of $2.5bn and strong revenue and profit figures
• The company, led by innovative founders, has received positive assessments from customers, ex-employees, law firms, and peers
• Burford has a proven track record of competitive advantage in revenue, market share, innovation, customer service, and underwriting skill, with potential for improved returns on capital and vast growth opportunities.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Today’s edition of Crypto Moves builds on this week’s Crypto Crisp, where we advocated a bullish outlook on the crypto market.
• I have examined all of our charts to find every reason to maintain a long position in the current crypto market. Let us dive in.
• From this week onwards, we anticipate a significant increase in liquidity over the next few months. This liquidity forecast model has been highly accurate in recent months.

• On May 9, 2024, Migalo Holdings Inc. (hereafter, the Company) announced its full- year FY2024/3 earnings results.
• Sales rose 14.5% YoY to ¥42,672 mn, and operating profit fell 14.4% YoY to ¥2,500 mn, largely in line with the Company’s full-year forecast calling for sales to rise 12.7% YoY to ¥42,000 mn and operating profit to drop 14.4% YoY to ¥2,500 mn.
• The Company will pay a year-end dividend of ¥45 per share, including a commemorative dividend of ¥5 per share to celebrate the 20th anniversary of the founding of its predecessor, Property Agent, Inc.

• After 3 weeks up in a row the KOSPI 200 is ripe for a pullback.
• The reversal is probably going to begin this coming week.
• If the index goes higher, look at 391 resistance targets to initiate SHORT trades or to cover your LONGs.

On 12 June IP Group announced that Garrison Technology, one of its key deeptech holdings, is being acquired by US-based cybersecurity company Everfox (formerly Forcepoint Federal), which has been Garrison’s partner for several years. IP Group highlighted that it would receive a cash consideration upon deal completion for its 23.6% stake in Garrison and that the valuation of Garrison implied by the deal will not result in any meaningful uplift to last carrying value. Based on this, we understand that IP Group will sell its stake at a price, which is broadly in line with the £31.6m fair value as at end-December 2023 (or c 2.7% of its end-2023 NAV). This is an indication of IP Group’s prudent approach to valuing the business (it had been valued in line with its £15.5m funding round in 2023). Further exits in line with or above last carrying value should assist a narrowing of the current wide discount to NAV of c 61%.