Daily Brief Financials: Futu Holdings Ltd, OCBC, Arthur J Gallagher & Co, Bell Financial, Intercontinental Exchange, Monmouth Re. Inv. Corp., Picton Property Income, Powerlong Real Estate Holdings, Ameriprise Financial, Square Inc and more

• We think FUTU is stepping into a stagnant phase in 2024. Japan is not a game changer.
• Client asset inflow from overseas is not meaningful, and growth from mainland is frozen by regulation.
• We downgrade the stock into SELL rating and cut TP to US$46/ADS, mainly due to slow progress in overseas expansion and difficulty in monetization.

• OCBC has seen its mkt cap RISE by ~4% YTD. This is stark contrast to the ~6.5% lower mkt cap at DBS and around 10% lower mkt cap at UOB.
• Net interest income had been strong, and this likely slows, a lot. Other areas are far from strong. Credit costs are up 103% YoY at 9M23.
• Profit from insurance is down 12% YoY and down 16% QoQ, in 3Q23 (Great Eastern). Profit from associates is -1% YoY in the quarter and only +1% YoY

• Arthur J.
• Gallagher & Co. delivered an all-around beat in the previous quarter, delivering impressive results in various segments.
• In the retail brokerage operations, the US P/C business showed strong underlying organic growth of around 8%.

• Bell Financial Group Ltd (ASX:BFG) is a diversified provider of financial products and software solutions within, and increasingly outside, its traditional full-service stockbroking business.
• Since our initiation in October 2023 there have been some positive developments across a number of divisions.
• Against our forecast of $550m in equity raisings over H2 FY23 we now estimate $800m with a spike in activity over October and November. 

• Intercontinental Exchange, Inc. managed to exceed analyst expectations in terms of revenue as well as earnings, with adjusted earnings per share reaching a historic high at $1.46, marking an 11% increase from the previous year.
• Net revenues also soared to $2 billion, exhibiting a 4% pro forma increase, primarily fueled by a substantial double-digit surge in the Exchange segment.
• Transaction revenues, notably in energy, surged by 13%, with a significant 42% growth in energy revenues, particularly in global natural gas.

• Mach Natural Resources is an independent upstream oil and gas company with a neutral investment outlook.
• One of the primary drivers for Mach Natural Resources is its substantial inventory of over 2,000 identified horizontal drilling locations, with a significant emphasis on the Oswego formation.
• Additionally, Mach Natural Resources holds a competitive edge with its ownership of midstream assets, including gathering systems, processing plants, and water infrastructure.

In a challenging market environment, Picton Property Income (PCTN) produced a resilient H124 financial performance, supporting fully covered DPS. This was underpinned by continued portfolio outperformance of the MSCI UK Quarterly Property Index, building on a long-term track record of upper quartile performance since inception. Rents continued to grow, asset management initiatives are in place, aimed at capturing reversionary income potential, and borrowings are mostly long term and fixed rate.

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.

• Azure Power Global Ltd
• Powerlong Commercial Management Holdings
• Road King Infrastructure
• Yanlord Land

• Ameriprise Financial, Inc. managed to surpass the revenue and earnings expectations of Wall Street.
• Despite external pressures, Ameriprise has successfully guided clients with high-quality advisory solutions and services, yielding positive results.
• Ameriprise manages $587 billion in assets in the Asset Management segment, emphasizing improving flows and investment performance.

• Block, Inc. surpassed the revenue expectations as well as the earnings expectations of Wall Street, elevating profitability expectations for the remainder of the year.
• The quarter saw the highest-ever adjusted EBITDA of $477 million, reflecting a 25% margin on gross profit.
• Square and Cash App played pivotal roles in this success, with Square generating $899 million in gross profit, up 15% year-over-year, and Cash App yielding $984 million in gross profit, a notable 27% year-over-year increase.