Daily Brief Financials: Invincible Investment, Hysan Development Co, USD, Yibin City Commercial Bank Co Ltd, Gresham House PLC, Greenland Holdings Corp, Rakuten Securities and more

• Invincible Investment (8963 JP) plans to raise around US$230m to fund the acquisition of six hotel assets in Japan.
• The stock has done well over the past year and so have most of its deals which we have covered in the past.
• In this note, we talk about the deal dynamics and run the deal through our ECM framework.

• In this insight, we conducted fundamental analysis and look at major share price drivers for Hysan Development, who is a major landlord in Hong Kong
• Hysan Development has a simple business model and owns a retail/office portfolio in Causeway Bay, Hong Kong.  Its retail properties are largely tourist-centric
• Despite trading at attractive valuation, the stock has low trading liquidity.  Also there is no visible catalyst which means there is little chance for re-rating for the stock

• Welcome to the second research piece in our “Business Cycle Week”.
• In this edition of the series on the business cycle, we will focus on whether FX markets sniff out the cycle ahead of other asset markets.
• Is the USD a bellwether of global trends or is it just a saying?

• Yibin City Commercial Bank Co Ltd (1315463D CH) is looking to raise around US$300m in its upcoming Hong Kong IPO. The bookrunners on the deal are CCBI and ICBC.
• Yibin City Commercial Bank (YCCB) is a city commercial bank in Yibin, Sichuan Province of China.
• As per CBIRC Yibin Office, it was the largest bank in Yibin in terms of total assets as of Dec 22.

• Searchlight agreed to acquire via scheme of arrangement UK asset manager Gresham House PLC (GHE LN) for 1,105p/share in cash, c.£470 million, 12.6x EV/Fwd NTM EBITDA, 17.6x Fwd P/E. Terms are final.
• Irrevocables plus letters of intent total 33%. Although the consensus median TP is 1,170p/share (c. 5.8% higher), it seems difficult to argue with a 63% premium.
• Taking 680p break, the shares are pricing an 89% probability of completion. Spread is 4.3%/10.3% (gross/annualised), which explains why the shares have been liquid since the offer announcement. Long.

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.

• Greenland Holdings Corp
• Sunny Optical Technology Group

• Rakuten Securities, the online securities arm of Rakuten, aims to raise around US$500m (estimated) in its Japan listing.
• It is the largest online securities firm in Japan with a 33.7% market share. In FY22, it had over 8.64m accounts, with around JPY18.2tn (US$131bn) of assets under custody.
• In this note, we talk about the not-so-positive aspects of the deal.