Daily Brief Financials: Korea Stock Exchange KOSPI 200, Xinyi Glass Holdings, Mankind Pharma, Chang Hwa Commercial Bank, China Vanke , American International Group, Metlife Inc and more

• Local institutional investors were disappointed Kiwoom omitted COE from their value-up disclosure. They seek clearer plans to address low-yield assets and reduce COE.
• Rapidly rising interest in COE among local institutional investors is now shaping the screening criteria for the Korea Exchange’s value-up index, possibly using COE as a primary factor for inclusion.
• Competition likely centers on selecting and weighting stocks, including those beyond KOSPI 200. Key metric: COE linked with ROE.

• The majority of its revenue comes from selling float glass, which is used in buildings and construction. 
• The Chinese government has started home ownership relaxation that will reinvigorate the real estate market. 
• It is still trading at 67% lower to 3 years ago. 

• With Indian capital markets booming, companies are tapping capital markets regularly for fundraising even though they have recently raised funds.
• There are also cases where company after concluding IPO in recent years are going for fund raise
• The market are jittery about possible equity dilution and unclear fund raising objectives

• April monthly data on pre-tax income shows slowing YoY growth compared with YTD growth
• NIM pressure was severe in past six months and this can be a key driver of less profit growth
• Credit costs in decline supported net profit delta, but this may not longer be sustainable

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess China Vanke’s ESG as “Adequate”. The company has “Adequate” scores for all three pillars. Controversies are “Immaterial” and Disclosure is “Strong”.

• American International Group Inc. (AIG) reported a solid performance for the first quarter of 2024, showing significant improvements.
• Peter Zaffino, the company’s Chairman and CEO, remarked on the steady growth witnessed this year, with the report indicating a 9% year-on-year increase in adjusted after-tax income, seeing it to $1.2 billion or $1.77 per diluted common share.
• Some key factors driving this growth include the expansion of AIG’s operations, particularly via its General Insurance underwriting segment, which experienced a 19% year-over-year increase, translating to underwriting income of $596 million in Q1 2024.

• MetLife Inc. delivered solid financial results for the first quarter of 2024 with strong top-line growth, consistent execution, and sustained momentum.
• The company reported adjusted earnings of $1.3 billion or $1.83 per share, up 20% per share from the prior year period, reflecting a partial rebound in variable investment income led by private equity gains.
• Net income for the first quarter was $800 million, taking a sharp rise from $14 million from the prior year period.