Daily Brief Financials: Japan Post Bank, GK Goh Holdings, Nexus Select Trust, Barclays PLC, DBS, Law Debenture Corp Plc/Fund, China Jinmao Holdings, NFT, Supermarket Income REIT and more

• As expected, Japan Post Bank (7182 JP) has announced their ToSTNeT-3 buyback of ¥70 billion on Day 1 of the potential TN-3 Buyback period.
• Also as somewhat expected, investors and traders pushed up the stock price today after the news there would be a buyback, hoping to buy then sell, or short today’s close.
• Japan Post Holdings (6178 JP) will offer shares. Others obviously will too. How this works and what you have to watch out for discussed below.

• GK Goh Holdings (GKG SP) has disclosed a voluntary conditional offer from management at S$1.26 per share, a 38.5% premium to the undisturbed price (24 February).
• The offer price is final barring a competitive situation. The VGO has a 90%+ minimum acceptance condition which can be waived or lowered. Irrevocables represent 62.89% of outstanding shares.
• The offer price is attractive in comparison to historical trading ranges. The offer will remain open for at least 28 days which points to the earliest of 11 April close.

• Nexus Select Trust (NST IN)  is looking to raise up to US$500m in its upcoming India IPO. 
• NST is a REIT with a portfolio of 17 Grade A urban consumption centers. It is backed by Blackstone.
• In this note, we will talk about the positive aspects of the deal.

• Barclays PLC (Barclays; “the bank”) was established in 1690 and is headquartered in London. The bank has a strong presence in the UK.
• The bank has two principal business segments – Barclays UK and Barclays International. Barclays international is split into corporate and investment banking (CIB) and consumer, cards and payments (CCP).
• The bank has a global presence, with a focus on the UK, EU and the US.

• 2022 net profit up 20% YoY, beating expectations.
• Final dividend of 42 S cents/share and special dividend of 50 S cents/share proposed.
• Flags downside risks to 2023 peak group NIM guidance, while keeping guidance for mid-single digit loan and double-digit fee income growth.

In challenging conditions, The Law Debenture Corporation (LWDB) has reported robust 2022 results. IPS delivered its fifth consecutive year of growth, in line with its mid-to-high single-digit target. The extreme polarisation of equity market performance, with only a handful of large companies generating positive returns worked against the investment managers’ consistent, diversified, value-driven approach in 2022. Nonetheless, LWDB’s track record of outperformance over three, five and 10 years remains. The share price return was positive while DPS, held or increased for 44 years, rose 5.2% to 30.5p.

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.

• China Jinmao Holdings
• Vedanta Resources

• Last week there were headlines from media publishers that read something along the lines of; NBA-Branded ‘Top Shot Moments’ NFTs May Be Securities, Judge Rules in Dapper Labs Case
• This brewed discourse around 1) Top Shots themselves being securities and 2) NFTs as a thing being securities.
• Both 1) and 2) are wrong in my opinion, for a variety of reasons.

Ahead of interim results for the six months ended 31 December 2022 (H123), Supermarket Income REIT (SUPR) has reported its externally assessed property valuation. The like-for-like 13.3% decline is below the broad market decline of c 19% but above our assumption. We have reduced our FY23e EPRA NTA per share by c 10% to 91p but our forecasts for EPRA earnings, dividends and dividend cover are unchanged.