Daily Brief Financials: Credit Suisse, Nasdaq-100 Stock Index, SBI Sumishin Net Bank, Home First Finance, Yuzhou Group, Ping An Insurance (H), Alam Sutera Realty, Binance Coin, Shui On Land, Yanlord Land and more

• In this insight, we take a look at the names leading the race to become ADDs/DELs for the STX Europe 600 and EUROSTX Indices for the March 2023 Rebalance.
• STX Europe 600 members Credit Suisse (CSGN SW) and Vantage Towers (VTWR GR) could possibly get deleted in the next few months triggering intra-review ADDs.
• Separately, I see 3 more ADDs and DELs for the STX Europe 600 index in the regular review in June 2023.

• 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.
• Q1 2023 has confirmed that the material 2022 downward correction is likely complete. Subsequently, after a period of correction, the resumption of the Q4/Q1 uptrend was confirmed.
• Bullish price triggers combine with positive MT/LT momentum triggers to initially target 13740. A break above 13740 is increasingly likely and would present a far more bullish MT outlook.

• SBI Sumishin Net Bank (7163 JP) (SSNB) raised around US$370m 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 recent updates and trading dynamics.

• Home First Finance (HOMEFIRS IN) lends to a customer segment exposed to high income volatility.
• Soft bounces are used by customers to manage their cash flow, with bounce charge collection done on a best-effort basis, management attitude towards financial discipline warrants attention. 
• While there may not be any immediate asset quality issues, caution is warranted. 

• Yuzhou Properties Company Limited (Yuzhou) is a property developer that focuses on residential housing in West Strait Economic Zone and Yangtze River Delta.
• The company has moved its headquarters to Shanghai from Xiamen.
• The company has been listed on the Hong Kong Stock Exchange since November 2009. As of 31 Mar 2017, market capitalization of Yuzhou stands at HKD12.4b (USD1.6b).

• Interim results beat with strong results across most business lines
• Life insurance new business value growth reversed to positive growth in 2Q and should accelerate
• Fair value trimmed to HKD98 but headwinds abating in 2H

• Established in 1993, PT Alam Sutera Realty Tbk (Alam Sutera) is a small Indonesian property developer, focused on the development and management of large-scale townships of residential and commercial property.
• As of FY16, the company held total land bank of 1,898 hectares in gross area.
• Key source of earnings remain property development sales, with recurring income limited and derived from leases in its shopping malls.

• On March 22, Binance halted its no-fee trading promotion for 13 BTC spot trading pairs, reversing a move that helped boost the exchange’s market share by more than 20% relative to its competitors.
• The exchange also announced that it would be eliminating trading fees for the BTC-TUSD pair, which was mothballed in September and only recently re-listed.
• It is unclear why Binance has chosen to promote its TUSD pair, although it appears the exchange has selected the stablecoin as a successor to BUSD, which is being phased out because of regulatory actions in the U.S. 

Shui On Land’s FY 2022 results were acceptable, supported by reasonable contracted sales, along with a strong revenue recovery in H2 (following a poor H1, when revenue recognition was impacted by pandemic-related lockdowns in Shanghai). Going forward, we believe contracted sales could decrease meaningfully in FY 2023, owing to the thin sales pipeline and reduced land bank size. That said, revenue recognition might continue to rise on the back of past robust sales.

Negatively, the company’s financial profile weakened slightly, with net debt rising more than expected. Still, we believe that Shui On’s liquidity profile remains manageable and expect the company to repay the USD 500 mn SHUION 5.75 23 (due November) using cash on hand.

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.

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