Daily Brief Financials: Japan Post Bank, LIC Housing Finance, Nikkei 225, Payoneer Global , Tejon Ranch and more

• Japan Post Bank (7182 JP) saw its net profit surge from non-recurring gains, which was from the sale of stocks. 
• The company’s cost of funds worsened more than the improvement in its yields, and we believe this remains an issue related to hedging costs.
• Unrealized gains on foreign bonds remains significantly higher now than a year ago and this may again be the driver for earnings, but still with very low ROA.

• LICHF faced some teething issues with technology during past 1Y due to which growth and reported asset quality had been subdued. However, with strong Q4FY24, LICHF is back on track.
• LICHF reported strong growth in disbursements. Q4FY24 disbursements were INR 18200cr+, a growth of 20%+ QoQ. NIM came in higher than expected at 3.15%, despite spike in bond yields.
• Asset quality improved significantly with Stage 3 assets declining to 3.31% vs 4.26% QoQ and Stage 2 assets declining to 4.20% vs 4.54% QoQ.

• The Nikkei 225 INDEX has been rallying a bit last week and closed the week up. A rebound from the previous downtrend is underway.
• A temporary bottom may have been established in May, it is not clear if the index is about to go lower or higher, but our pattern model readings suggests higher.
• If the index continues to rally, the first major resistance area will be around 40k.

• Payoneer Global, Inc. is a leader in profitability in the fintech industry
• The company’s experienced management team has a clear vision for future growth
• Payoneer offers a unique and essential service for SMBs in the global marketplace, positioning it well for continued success and value creation for investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We believe results of the 2024 shareholder vote indicates rising investor sentiment that change is needed within the company’s top management & compensation structure, which we also believe has important implications for the search for a new CEO to replace the company’s outgoing CEO who announced his intention to retire on 12/31/24.
• In our view, TRC now has an opportunity now to strengthen its management team and improve its interaction with public shareholders, just as we believe it did with the 2023 appointment of new CFO Brett Brown.