Daily Brief Financials: M&A Research Institute, Bitcoin Pro, Shui On Land and more

• Yesterday, M&A Research Institute (9552 JP) announced it would list on the TSE Prime section on 29 August, which means it will join TOPIX at the close of 28-Sep-2023.
• This is NOT a surprise. On 27 June, the company announced a secondary offering of 1.631mm shares (by the founder/CEO), and said it had applied for TSE Prime transfer. 
• I take a look at how this could play out. 

• The recent 7% drop in Bitcoin’s value coincided with SpaceX’s announcement of selling off its entire $375 million worth of holdings.
• This event highlighted two crucial factors: the lack of liquidity in the market and the end of the bear flag counter-trend rally.
• Additionally, Binance Coin was already showing signs of breaking down, which could decrease the overall crypto market cap.

Shui On Land’s (SOL) H1/23 results were acceptable in our view, as the company reported improved revenue recognition from property sales and largely stable rental income. SOL’s operations remained strong, with robust demand for its project launches. Still, management retained its guidance for a 52% y-o-y decline in FY 2023 contracted sales, largely due to the timing of sale launches. Negatively, net debt climbed 8% from FYE 2022, as the company acquired a project in Shanghai during April.

SOL has tight liquidity. That said, it will likely have sufficient resources to repay the USD 500 mn bond coming due in November 2023. The company does not appear to be in immediate financial distress overall, despite negative news about its bondholder identification exercise last month.