Daily Brief Financials: KB Financial, Bitcoin, Target Healthcare REIT PLC, Alpha Bank AE, Uniti Group , American Coastal Insurance, Mitsubishi UFJ Financial (MUFG), Tejon Ranch and more

• The Mirae Asset Tiger Top 10 ETF (292150 KS) tracks the FnGuide Top 10 Index and has an AUM of around US$1.2bn.
• We currently forecast two potential changes at the next rebalance in June – one change is high probability while one could change depending on price moves over the next week.
• The trade has performed well historically with positive performance till implementation followed by reversion post implementation.

• It comes as no surprise that we have been bearish on the crypto market in recent weeks.
• However, the market seems indifferent to our stance.
• The softer-than-expected US Consumer Price Index (CPI) report last Wednesday boosted risk-on assets, particularly cryptocurrencies, while the prospect of improved liquidity conditions in the economy is also set to benefit the crypto market.

Target Healthcare REIT’s Q324 update shows a fifth successive quarter of positive NAV total return, with indexed rent reviews driving increased earnings and property values. Tenant profitability continues to strengthen, reflected in a high level of rent cover and rent collection. Dividends are well covered by adjusted earnings and we expect further DPS growth.

Alpha Bank’s Q124 profit after tax reached a record €211m, up by 90% y-o-y, 75% q-o-q and 8% above consensus. The beat was driven by better trading gains and impairment losses, with net interest income (NII) and operating expenses largely in line. Adjusted return on tangible equity (RoTE) was 13.5%, ahead of the full-year target of 13%. Alpha also announced a change in proposed FY23 profit distribution. The previously indicated €0.05 dividend (€122m distribution) is now proposed to be split 50:50 into a €0.025 dividend and €61m buy-back, subject to regulatory approval. Any buy-back would be value enhancing as the shares trade at only 60% of tangible book value per share (TNAV).

• Thesis for pitching Uniti unsecured bonds based on hidden catalyst for potential deal with Windstream
• Late Friday night headline confirms talks of potential merger between Uniti and Windstream
• Windstream’s motivation to resolve lease issue before federal broadband subsidy program ramps up drives likelihood of deal, increasing confidence in trade recommendation

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.

• ACIC is a high-quality insurer with an attractive forward P/E of around 5.5x
• Specializes in providing windstorm insurance policies to garden-style condos in Florida
• frostybluebird’s research on ACIC has been praised for forming the foundation of subsequent analysis, positioning the company as a promising investment opportunity

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.

• Following up on our earlier cross-shareholding notes, in this note we look at Mitsubishi UFJ Financial (MUFG) (8306 JP)’s cross-shareholding.
• MUFG had a stake over US$100m in at least 47 listed Japanese stocks, amounting to a total of around US$19bn.
• In this note, we take a look at its stakes in various companies to see which ones could possibly be candidates for further selldowns.

• We believe results of the 2024 shareholder vote indicate 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 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.