Daily Brief Financials: Link REIT, GRP Ltd, Banco Do Brasil Sa, CIFI Holdings, DigiDaigaku, Triple Point Social Housing REIT and more

• Link REIT (823 HK) (LREIT) aims to undertake a 1 for 5 rights issue at a subscription price of HK$44.20/unit, to raise around US$2.4bn.
• After announcing a S$2.2bn acquisition in late Dec 2022, the company explicitly mentioned that it didn’t need to raise any new capital. Thus, the rights issue marks an abrupt turnaround.
• In this note, we talk about the right issue, its previous acquisition and the overall implications.

• Lula increased his verbal offensive against the Central Bank’s independence and its monetary policy; is this a storm in a teacup or a threat to the Central Bank’s status quo?
• With the appointment of Fernando Haddad as left-leaning finance minister, there is genuine concern regarding the scope for potential interference by the Lula administration in forthcoming monetary policy
• Government interference could lead to public sector banks offering more subsidized credit to lower income groups; although this is Caixa Economica Federal’s domain, this could increasingly include Banco do Brasil

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.

• CIFI Holdings

• Last year, Coinbase had marketers purring when they spent their 30 second allocated slot during the Super Bowl with a simple floating QR code which redirected a reported 60 million people to their platform.
• That’s pretty good cost-per-click and marketers worldwide were pointing to it as an incredibly simple but effective campaign.
• This year, unsurprisingly, we saw very few crypto ads during the Super Bowl. The market is down and crypto companies are protecting runway.

In its trading update, Triple Point Social Housing REIT (SOHO) sets out the path to restoring rent collection from two lessees in arrears. It also underlines the quality of its portfolio, the continuing performance of most lessees and their progress with addressing regulatory concerns. Until resolved, the arrears will have an impact on earnings and valuation, but SOHO remains committed to its FY22 DPS target of 5.46p. We will revise our forecasts when the FY22 results are published in March.