Daily Brief Financials: Japan Post Bank, SBI Sumishin Net Bank, Country Garden Holdings Co, GK Goh Holdings, Groupe Bruxelles Lambert Sa, Sprott Physical Platinum and Palladium Trust and more

• Japan Post Bank (7182 JP) has announced that the offering price has been set at JPY 1131/share, a 2.08% discount to the closing price. Settlement is on 20 March.
• The buyback will run from 22 March to 12 May and at last prices will mop up 1.85% of shares outstanding or 4.62% of post-offering float.
• In the short-term, we expect buying from Topix (TPX INDEX), MSCI and other global trackers to support the stock price. 

• Japan Post Bank (7182 JP) priced its offer at JPY1,131, a discount of 2.1% to the last close. JPB’s on-market buyback period runs from 22 March to 12 May.
• Japan Post Holdings (6178 JP)/ JPH’s 2021 offering suggests that the share price will have support to trade above the offer price at delivery date and the on-market buyback period.
• The offer price’s forward P/B of 0.45x and yield of 4.42% are attractive vs peers. JPB’s price ratio at the offer price is undemanding vs TOPIX Banks ETF and JPH.

• SBI Sumishin Net Bank (7163 JP) (SSNB) is looking to raise around US$390m in its second listing attempt.
• SBI Sumishin Net Bank is a Japanese digital bank set up as a 50-50 joint venture between Sumitomo Mitsui Trust Bank, Japan’s largest trust bank, and SBI Group.
• In this note, we talk about implied valuations in the IPO price range

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.

• Adani Transmission
• Country Garden Holdings Co

• The Offer Document for GK Goh Holdings (GKG SP)‘s MBO has been dispatched. The Offer price of $1.26/share, which is final, is a 38.5% premium to last close. 
• The Offer is conditional on the Goh family holding 90%, which may be reduced to 50%. GKG Investment, with 62.89%, has given an irrevocable to tender. 
• There is no IFA opinion in the Offer Doc. This will be present in the Circular which is expected to be sent out by the 28th March, at the latest.

• NAV/Share down 19% for FY2022 in line with falls in the market. Private/alternative assets represented 36.3% of GAV and 39.86% of NAV. Discount to NAV was 35.8% as of YE2022.
• The discount to NAV was 36.7% as of 10 March. GBL is buying and cancelling its own shares, which creates value as it’s done at a deep discount to NAV.
• GBL has completed its transition towards a 40% of private/alternative assets in portfolio, but still needs to convince investors to lower its discount to levels closer to Investor AB. 

• Sprott Physical Platinum & Palladium Trust has a nearly equally-weighted portfolio of physical Platinum and Palladium.
• The closed-ended trust has an expense ratio of only 0.5% and is trading below its short and long-term moving averages.
• Platinum Group Metal (“PGM”) prices offer researchers an exciting topic, given the velocity of the recent shift in supply and demand-side variables that influence PGM prices.