In today’s briefing:
- Specifics of Korea’s Official Short-Selling Regulations, Announced This Morning
- CNA Financial Corporation: Initiation of Coverage – What Are Their Major International Market Growth Strategies? – Major Drivers
- Jaccs Co Ltd (8584 JP): Announcement of 70th-anniversary commemorative dividend
- Kinsale Capital Group: Initiation of Coverage – A Tale of Harnessing Market Opportunities in Casualty and Property Segments! – Major Drivers
- Orient Corp (8585 JP): Full-year FY03/24 flash update
- NLOP: Debt Declining Affirms Valuation
- Cincinnati Financial Corporation: Initiation of Coverage – A Story Of Expansion and Diversification in Reinsurance and Global Operations! – Major Drivers
- Advance Create (8798 JP): 1H FY09/24 flash update
- Advance Create (8798 JP): 1H FY09/24 flash update
- Advance Create (8798 JP): 1H FY09/24 flash update
Specifics of Korea’s Official Short-Selling Regulations, Announced This Morning
- Limiting extensions to four times after a 90-day repayment and mandating repayment after 12 months increases short-selling costs. The revision omits limits on position-holding cycles, disappointing retail investors.
- Today’s release did not set a timeline for short-selling resumption. The ruling party has requested it after March 2025, with key officials present suggesting next year March resumption.
- Regarding the electronic system implementation, core content aligns with the draft, but newly revealed institution numbers add a new perspective. Uncertainties remain on integrating overseas stock borrowing into the system.
CNA Financial Corporation: Initiation of Coverage – What Are Their Major International Market Growth Strategies? – Major Drivers
- CNA Financial Corporation reported its first quarter 2024 results, showing positive dynamics in profitability, investment income, and top-line growth.
- The company achieved its highest first-quarter core income on record at $355 million, driven by a significant $84 million year-over-year increase in net investment income to $609 million.
- These results were bolstered by contributions from both the alternatives and the fixed income portfolios.
Jaccs Co Ltd (8584 JP): Announcement of 70th-anniversary commemorative dividend
- In FY03/24, operating revenue was JPY184.8bn (+6.5% YoY), operating profit JPY33.1bn (+4.6% YoY), recurring profit JPY33.1bn (+4.1% YoY), and net income attributable to owners of the parent JPY23.8bn (+9.8% YoY).
- The consolidated operating revenue grew due to an increase in transaction volume and accumulation of the balance of deferred installment income and the balance of credit guarantees.
- Since the company decided to pay a commemorative dividend (JPY10/share) to celebrate its 70th anniversary, the annual dividend was JPY220/share (representing payout ratio 32.1%; up 30.0 yen from the previous year). For FY03/25, JACCS forecasts consolidated operating revenue of JPY193.0bn (+4.4% YoY), operating profit of JPY28.0bn (-15.5% YoY), recurring profit of JPY28.0bn (-15.3% YoY), and net income attributable to owners of the parent of JPY19.5bn (-18.0% YoY).
Kinsale Capital Group: Initiation of Coverage – A Tale of Harnessing Market Opportunities in Casualty and Property Segments! – Major Drivers
- Kinsale Capital Group Inc. recently reported strong quarterly results, demonstrating robust growth and operational efficiency.
- The company’s operating earnings per share increased by 43.4%, and gross written premiums grew by 25.5% compared to the same quarter in the previous year.
- Kinsale’s combined ratio, an indicator of the profitability of its insurance operations, stood at an impressive 79.5%, highlighting an effective underwriting performance.
Orient Corp (8585 JP): Full-year FY03/24 flash update
- Operating revenue increased by JPY1.4bn to JPY229.1bn, driven by gains in business revenue and offset by declines in financial and other operating revenues.
- Operating expenses rose by JPY8.3bn YoY, with significant increases in SG&A and financing expenses, despite a decrease in other operating expenses.
- The company forecasts FY03/25 operating revenue of JPY263.0bn, driven by growth in Settlement and Guarantee business and contributions from newly consolidated subsidiaries.
NLOP: Debt Declining Affirms Valuation
- NLOP announced the sale of two more properties bringing the aggregate count of properties sold since fourth quarter 2023 to twelve.
- NLOP has been highly active in selling properties. We believe the motivation has more to do with the interest expense of its mortgage and mezzanine loans.
- The latest two properties sold were materially higher than the company-wide price per square foot NLOP is carrying on its balance sheet.
Cincinnati Financial Corporation: Initiation of Coverage – A Story Of Expansion and Diversification in Reinsurance and Global Operations! – Major Drivers
- Cincinnati Financial Corporation reported strong financial results for the first quarter of 2024, highlighting significant progress in underwriting profitability and growth in investment income.
- The net income reported was $755 million, which included a substantial gain of $484 million attributed to the increase in the fair value of equity securities.
- The non-GAAP operating income also showed a positive trend, nearly doubling from the previous year to $272 million, thanks to a reduction in catastrophe losses and robust operating performance.
Advance Create (8798 JP): 1H FY09/24 flash update
- Revenue decreased JPY1.4bn YoY (-22.5% YoY) to JPY5.0bn, with significant declines in Insurance Agency and Media businesses.
- Operating profit increased JPY419mn YoY to JPY343mn (-55.0% YoY), with notable declines in Insurance Agency and Media businesses.
- In the ASP business, revenue and profit increased YoY due to strong sales of Advance Create Cloud Platform (ACP).
Advance Create (8798 JP): 1H FY09/24 flash update
- Revenue decreased JPY1.4bn YoY to JPY5.0bn, with significant declines in Insurance Agency and Media businesses.
- Operating profit increased JPY419mn YoY to JPY343mn, with notable declines in Insurance Agency and Media businesses.
- Full-year company forecast remains unchanged despite YoY revenue and profit decreases in several business segments.
Advance Create (8798 JP): 1H FY09/24 flash update
- Revenue decreased 22.5% YoY to JPY5.0bn, with significant declines in Insurance Agency and Media businesses.
- Operating profit fell 55.0% YoY to JPY343mn, with notable decreases in Insurance Agency and Media businesses.
- Reinsurance business saw increased revenue and profit due to the reclassification of COVID-19 reinsurance payments.
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