In today’s briefing:
- Haitong Securities – Portugal Bank Goodwill Impairment Surge | Overall: High Costs, Poor Revenue
- Quiddity A/H Premium Tracker (To Sep28): Hs Suffer Vs As Despite Inflows
- UOB – Weaker Credit | Struggling Cost Base | Moving to Trading | A Changing Face
- EQD | S&P/ASX200 Index Stuck, But Could Bounce Soon
- DLocal Ltd: Does The Potential Sale Of The Fintech Player Present An Opportunity?
Haitong Securities – Portugal Bank Goodwill Impairment Surge | Overall: High Costs, Poor Revenue
- With the potential corporate action (see additional reading below) there is more interest in Haitong Securities but operationally it does not appear positive, for many reasons
- The company is seeing worse revenue growth in asset management, brokerage and investment banking, while its Haitong Bank can see far higher credit costs
- Total operating costs are now 63% of revenue, tax rate is a lot higher, litigation risks seem to be oversized, with potential impact to costs
Quiddity A/H Premium Tracker (To Sep28): Hs Suffer Vs As Despite Inflows
- The Brand-Spanking New (8 weeks old) A-H Monitor has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning in pairs over time, etc.
- We used to do it. We brought it back better, with lots of cool interactive tables, and charts, heat maps, and comparative data. And 47 Trade Recommendations.
- The last 7 weeks (since the start of the new Trcker and Portfolio 8 weeks ago) have seen net portfolio performance of +0.50%, +1.35%, +0.14%, +0.47%, +0.15%, +0.12%.
UOB – Weaker Credit | Struggling Cost Base | Moving to Trading | A Changing Face
- UOB can be harder hit than peers due to its greater SME focus. SME’s may be less able to absorb or pass on higher costs, or manage worse demand.
- Domestic credit growth is at -4.1% in July YoY, from -3.3% YoY in June and from 2.1% in May. This can represent risk-aversion, worse demand, deteriorating credit metrics in SG.
- UOB’s Greater China lending is SGD52bn, nearly identical to Thailand, Malaysia combined. Building & Construction NPLs rose from SGD1.1bn to SGD1.4bn HoH to 2Q23.
EQD | S&P/ASX200 Index Stuck, But Could Bounce Soon
- The S&P/ASX 200 INDEX is trading below the Q3 WEEKLY support at 7072 (OVERSOLD). It closed down 2 weeks in a row (CC=-2) and this week is also down (CC=-3).
- As previously discussed the index is stuck in a range since August 2021, but from a short-term tactical viewpoint it could bounce soon, still remaining in range.
- Current support range is 7072-6900, there is a good chance to see a bounce from this area within 2 weeks.
DLocal Ltd: Does The Potential Sale Of The Fintech Player Present An Opportunity?
- This is a special one-time report on DLocal, a company that has been a subject of intense scrutiny and intrigue, especially after reports by Bloomberg News about the company considering various future paths, including a potential sale.
- The speculation of its sale has set the financial markets abuzz, leading to a noticeable uptick in the company’s shares.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
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