In today’s briefing:
- China Vanke: Should Investors Be Worried?
- Sasseur REIT (SGX: CRPU) – A Play On China Consumption Via The Operations-Focused Outlet Sector
- HK RE Series (2): Market Is Still Bearish but Bottom Is Near, Few Things Needed for Re-Rating
- EQD | Nikkei 225 Pullback: Buy-The-Dip Opportunity
- Malaysian Banks Screener; Value Pick CIMB Has Momentum, Maybank Is the Quality Pick
- Crypto Moves #18 – The Least Speculative Crypto Bull Market
- NB Private Equity Partners (NBPE): Value creation in a higher-rate environment
- Bancorp Inc (TBBK) – Thursday, Dec 7, 2023
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China Vanke: Should Investors Be Worried?
- China Vanke has caused jitters as it was reported to be closely watched by some insurers as it seeks to rollover some of its debt with insurers.
- It is reported that it has sufficient funding to repay its bond due on March 11th and is lining up a HK$1.5 billion syndication loan.
- Vanke warrants close monitoring as there is no sign of turning in its reducing contract sales, deteriorating cash position, shrinking financing ability.
Sasseur REIT (SGX: CRPU) – A Play On China Consumption Via The Operations-Focused Outlet Sector
- The Smartkarma Corporate Webinar | Sasseur REIT: A Glimpse into China’s Outlet Industry on Feb 29 explored the Oulet sector with Sasseur REIT, a Singapore REIT focused on China Outlets.
- Sasseur REIT is 57.85% owned by the Sasseur Group operating China outlets since 2008, with 4 outlets in 3 major Tier-2 cities currently in the REIT, with room for expansion.
- Sasseur REIT is a play on China consumption and outlet operations. 2023 EMA rental income +10.7% Y/Y. The 9.1% dividend yield stands out, at a relatively low aggregate leverage.
HK RE Series (2): Market Is Still Bearish but Bottom Is Near, Few Things Needed for Re-Rating
- Markets continue to be extremely bearish on HK/China, we look at the latest property market fundamentals and macro indicators, as well as company updates of our top picks
- In the latest budget, the HK government just announced to scrap all spicy measures on property market and eased mortgage policy
- With government support, we view the bottom of physical market is near. For further re-rating, we need interest rate to go down, as well as resumed fund flows.
EQD | Nikkei 225 Pullback: Buy-The-Dip Opportunity
- The Nikkei 225 INDEX is initiating a pullback that should be a buy-the-dip opportunity.
- The first buyable area for a LONG trade, this week, is 39600 and 39300 (this week) and down to 38100 (next week).
- The index should restart its rally after the pullback, and there is a good chance the pullback won’t last for more than 1-2 weeks.
Malaysian Banks Screener; Value Pick CIMB Has Momentum, Maybank Is the Quality Pick
- Of the six Malaysian banks screened, we keep quality play Maybank on the buy list and switch our prior buy RHB for CIMB
- CIMB is our value pick for its undemanding PE and PBV whilst second from top in post-provision profitability; its credit quality is improving, a positive trend we expect will continue
- We maintain quality pick Maybank as a buy for its relatively undemanding valuations, and strong balance sheet credentials in terms of credit quality and capital adequacy
Crypto Moves #18 – The Least Speculative Crypto Bull Market
- The cryptocurrency market is probably the most speculative, largely because it has not had enough time for price discovery, lacks consistent and measurable metrics, and has seen minimal institutional involvement.
- The crypto market is unique for its overwhelming number of retail investors compared to institutional ones, a rarity in most other markets where institutions lead the way.
- This dynamic has led to significant volatility, primarily driven by the emotional reactions of retail investors, more so than in any other market.
NB Private Equity Partners (NBPE): Value creation in a higher-rate environment
- In this note, we explore how the sources of value creation have evolved and how NBPE’s GP partners are expected to organically and inorganically generate incremental EBITDA growth to offset higher interest costs.
- Long-term target returns for new deals on the NB platform are unchanged, despite the short-term interest rate noise.
- This note builds on the drivers of historical superior EBITDA (see 2023 CMD: value creation from growing companies).
Bancorp Inc (TBBK) – Thursday, Dec 7, 2023
- Author recommends shorting TBBK due to stretched valuation, unsustainable earnings, vulnerable loan book, and signs of aggressive accounting
- TBBK benefits from a cheap deposit base and generates revenue through transaction fees on prepaid cards and interest income from lending activities
- TBBK competes with various financial institutions in specialty lending lines such as real estate bridge loans, SBLOC, IBLOC, advisor financing, small business loans, and direct lease financing
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.