Daily Brief Financials: Hang Lung Properties, Bakkt, JDC Group AG, Powerlong Real Estate Holdings and more

• Through operating luxury shopping malls in China, Hang Lung Properties is the only HK-listed stock that provides exposure to the China luxury consumption story.  It is trading at attractive valuation.
• Major concerns are 1) leakage of retail sales after re-opening and 2) impact on luxury consumption from negative wealth effect.  Most of the risks are priced in at current valuation.
• Short-Term, China consumption will recover post-COVID as consumer sentiment rebounds.  Long-term, the structural story of China consumption remains intact, supported by growing middle class and increasing disposable income and savings.

• 4Q22 revenue grew 14% Y/Y in a tough market. Transacting accounts grew 11% Y/Y and digital asset conversion volumes were up 19%.
• Opex, excluding goodwill and intangible assts impairments, was $73.2 million.
• While 2022 was a difficult year for crypto, President and CEO Gavin Michael highlighted the company “delivered on our product roadmap, worked closely with our partners to go-to-market, added leading industry players to our partner network, and announced our acquisition of Apex Crypto.”

JDC Group (JDC) reported preliminary FY22 results that were on the lower side of the guided range for revenues and on the higher end for EBITDA. FY22 revenue increased by 6.3%, compared to 18% in 2021, reflecting low German consumer confidence especially in December. This led to weaker demand especially for life insurance products. JDC expects FY23 revenue growth to accelerate, to 17% at the midpoint of guidance (€175–190m) based on cooperation agreements that are already signed. The EBITDA margin is also expected to increase based on a guided EBITDA range of €11.5–13.0m. We will review our valuation after the final results, which will be published on 31 March.

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. China SCE
2. Road King Infrastructure
3. Sino-Ocean Group
4. Greentown China
5. Anton Oilfield

and more…