Daily Brief Financials: China Vanke (H), SBI Sumishin Net Bank, Srisawad Power 1979, Nexus Select Trust, Taiwan Stock Exchange Weighted Index, Appreciate Group, Yanlord Land, Emirates NBD PJSC and more

• China Vanke aims to raise around US$500m in its H-share primary placement.
• Vanke had recently stated that it aimed to raise around US$2bn via an A-share private placement, so a placement was expected for sure.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• News reports indicate that China Vanke (H) (2202 HK) is looking to place 300m shares at a price range of HK$12.93-13.20/share to raise around US$500m.
• The 300m shares is nearly 33 days of ADV, but around 11-12% of the new shares will be bought by passive trackers early next week and provide near-term support.
• China Vanke (H) (2202 HK) trades cheaper than its peers on EV/Sales, EV/EBITDA and forward PE. Shorts have ticked higher in the last couple of weeks.

• In February 2022, SBI Holdings (8473 JP) and Sumitomo Mitsui Trust Holdings (8309 JP) announced they would IPO SBI Sumishin Net Bank (7163 JP) but that got cancelled by Ukraine.
• Yesterday, they announced they were going to try again. This time, with a reduced price and reduced aspirations. Given the way banks have performed in the last year… 👀
• That changes – completely – the picture of index demand. But it also changes the fundamental picture. 

• Srisawad Power 1979 (SAWAD TB) has been added to the SET50 INDEX following the Total Access Communication (DTAC TB) / True Corp Pcl (TRUE TB) merger.
• Passive SET50 INDEX trackers will need to buy 9.7m shares (THB 534m; 1x ADV) of Srisawad Power 1979 (SAWAD TB) at the close of trading today.
• There could be two more changes in June with relatively new listings, Thai Life Insurance (TLI TB) and Betagro (BTG TB), being added to the SET50 INDEX.

• Nexus Select Trust (NST IN)  is looking to raise up to US$500m in its upcoming India IPO. 
• NST is a REIT with a portfolio of 17 Grade A urban consumption centers. It is backed by Blackstone.
• In this note, we will talk about the not-so-positive aspects of the deal.

• SBI Sumishin Net Bank (SSNB) is now looking to raise around US$380m in its second listing attempt.
• SBI Sumishin Net Bank is a Japanese digital bank set up as a 50-50 joint venture between Sumitomo Mitsui Trust Bank, Japan’s largest trust bank, and SBI Group.
• In this note, we talk about the updates from the latest filings.

• A tale of two very different tapes with the HSI our top short on this bounce and Taiwan holds firm with trendline buy support as our top long in Asia.
• At this juncture Asia remains mixed but increasing downside pressure will emerge after the SPX bounce terminates and brings into play a harder down leg.
• HSI 21k resistance to short. Taiwan trend, price and dual moving average support lies at 14,900/700 with RSI buy support to align.

• On 1 March the shares of Appreciate were cancelled from AIM and the new shares of Paypoint were admitted to trading on the LSE.
• In my previous insight, I mentioned that although the offer price did not seem generous and liquidity limited, the risk/reward was favourable. 
• In the end, shareholders saw a good opportunity to cash in after a sluggish performance since the pandemic outbreak.

Yanlord Land’s FY 2022 results were acceptable, given its robust contracted sales and cash collection despite the challenging industry environment. In addition, its net debt and leverage metrics were largely stable. We also view positively that the company has not declared any dividend, in order to conserve cash.

Going forward, we expect Yanlord’s liquidity risk profile to remain manageable, despite a reduction in the company’s proportion of freely available cash at FYE 2022. We also anticipate that the company will continue to limit new land acquisitions, in favour of an asset-light approach towards property development. For FY 2023, management has guided for a moderate y-o-y decline in contracted sales. This could reflect its expectation for the property sector to remain subdued. 

• Powerful UAE franchise owned by the government of Dubai 
• Strong profitability, underpinned by robust operating metrics. Earnings have recovered strongly since pandemic lows of FY20/21.
• We are residual buyers of the EBIUH 4.25% Perpetual, up to par