Daily Brief Financials: Kasumigaseki Capital, Itausa , Nikkei 225, Yuexiu Property , Interlife General Insurance and more

• Kasumigaseki Capital is a small cap consulting real estate speculator/developer. They have an interesting, aggressive model. People will recognise the model from pre-GFC but this one is structured better.
• The company had planned explosive growth and in October, brought growth plans forward and guidance way up. Now there is an offering to fund that growth. 
• It appears to also be an offering to get a very large short position out of a risk of potential squeeze. For that, I expect this goes smoothly.

• Itausa’s equity value is predominantly composed of its core holding stake in big cap Latin American bank Itaú Unibanco whilst it has actively reduced its exposure to wealth tech XP
• Yet these two financials together account for over 90% of Itausa’s total equity value, with Itaú accounting for almost the entirety of that value
• Itausa is trading at a HoldCo NAV discount of over 25%, which is historically high; currently, Itausa is an excellent vehicle that provides indirect and discounted exposure to Itaú

• The Nikkei 225 (NKY INDEX) closed the week down (CC=-2) at 32307.86, it’s OVERSOLD, WEEKLY and MONTHLY.
• Our hypothesis is that this pullback is about to end (it could last maybe another week, or maybe it’s already over…), and will be followed by higher prices.
• Go LONG the Nikkei 225 in the support area between 31000 and 32000, this coming week.

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. Kawasan Industri Jababeka
2. China Jinmao Holdings
3. Vedanta Resources
4. Yanlord Land
5. Geely Auto

and more…

• Strong Insurance Revenue growth by 11.71% for 2023 (FH 2023: EUR 42,305,397 vs FH 2022: EUR 37,869,728) and robust Investments and Miscellaneous Income growth by 176.62% for 2023 (FH 2023: EUR 12,189,980 vs FH 2022: EUR (15,910,269)) were the key factors for INTERLIFE to return to profitability, posting an EBIT of 13,535,165 EUR, 223.83% increase compared to FY 2022 and an EPS at 0.591 EUR, +221.38% from the FH 2022.
• INTERLIFE holds twice the capital needed for severe disasters, with a Solvency Capital Requirement (SCR=Total eligible own funds / Solvency Capital Requirement) Ratio adequacy of 201.44%, surpassing the 180% Greek benchmark of 2022 and with a Minimum Capital Requirement (MCR= Total eligible own funds / Minimum Capital Requirement) Ratio of 707.87%.
• INTERLIFE does not possess proportional contracts but reinsurance contracts that can reach up to 1 million.