In today’s briefing:
- Aequitas 2024 Asia IPO Pipeline – ASEAN and ANZ
- HDFC Bank: Growth Trajectory Remains Intact Despite Short-Term Headwinds
- Japanese Regional Banks – Three Key Positive Picks
- Japan Governance | Will Reforms Unlock Valuations
- Crypto Moves #11 – One Week Into the ETFs
Aequitas 2024 Asia IPO Pipeline – ASEAN and ANZ
- In this note, we will look at the Asia Pacific IPO pipeline for 2024, following up with ASEAN and ANZ after having looked at other regions earlier.
- This list has been compiled on a best effort basis from tracking the company filings and through various other sources
- The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.
HDFC Bank: Growth Trajectory Remains Intact Despite Short-Term Headwinds
- HDFC Bank’s (HDFCB) stock was down over -8% yesterday and is down over -3% today. The stock seems to have reacted to low deposit growth (~2% QoQ) in Q3FY24 .
- Post the merger with HDFC Ltd that completed in Jun 2023, HDFCB needs to grow its deposits at a fast pace to support its loan growth.
- We think HDFCB is well placed to do so. It also has an option to raise capital through affordable housing bonds which have good economics, similar to term deposits.
Japanese Regional Banks – Three Key Positive Picks
- We explore twelve Japanese regional banks to look for key beneficiaries of the improving interest rate outlook, along with valuations, credit quality and capital adequacy
- The global interest rate outlook is in some flux, with the Fed’s and ECB’s prospects of near-term easing being tempered; this should support Japanese JGB yields and domestic bank valuations
- We are positive on three banks that are big beneficiaries of rising domestic interest rates; top pick Tokyo Kiraboshi Financial, Gunma Bank and higher risk option Suruga Bank
Japan Governance | Will Reforms Unlock Valuations
- Reforms Drive Improvement: Japan’s corporate reforms, catalyzed by governance codes and TSE pressure, are fostering capital efficiency, shareholder value, and long-term equity gains.
- “Name and Shame” Initiative Impact: TSE’s disclosure initiative reveals 54% of Topix 500 companies enhancing capital efficiency, with early indications suggesting positive longer-term performance trends.
- Future Alpha Opportunities: Expectation of increased disclosure in the coming months, particularly from proactive companies; potential for market surprises from obstructive firms trading below book value.
Crypto Moves #11 – One Week Into the ETFs
- The cryptocurrency industry is still buzzing with excitement after the recent approval of 11 Bitcoin spot ETFs last week.
- As these ETFs have been trading for a week now, their current performance and net inflows are now available for our consumption.
- This analysis will focus more on visual charts and less on text, a departure from my usual style, as the market seems to have had its fill of lengthy discussions on ETFs, which now feels akin to listening to a repetitive story from a friend or, even more tiresome, your mother-in-law.
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