Daily Brief Financials: New World Development, Shinhan Financial, Bajaj Finance Ltd, UBS Group , Eastern Bankshares , Greentown China and more

• Despite the lifting of the “spicy” property cooling measures last week, New World Development (17 HK) has plumbed fresh P/B lows after a (very) brief respite. 
• Preceding my comments on NWD are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• EQT (EQT SS) , via Supreme, is looking to raise US$311m from selling its stake in Shinhan Financial (055550 KS).
• Momentum on the stock has been strong over the past few months, and the recent selldowns in the stock have held up by the end of the week.
• The share sale here will be a cleanup one, and a small one to digest at just 5.3 days of ADV. 

• India’s Credit Landscape has changed and is facing structural and regulatory challenges.
• The Indian regulator (RBI), particularly in its oversight of underwriting practices and the behavior of Non-Banking Financial Companies (NBFCs), is commendably proactive, positioning it ahead of the curve.
• We expect more such steps in other parts of the credit funnel. The recent crack down along with the stock underperformance is here to stay and possibility intensify. 

• EQT Partners announced that it is selling all of its remaining shares in Shinhan Financial for about 400 billion won in a block deal sale.
• The block deal sale price range is expected to be 43,776 won to 44,688 won, representing 2% to 4% discount to the closing price on 6 March (45,600 won).
• We would take the deal. The block deal discount is reasonable and Shinhan Financial continues to have attractive valuations and dividend yield despite recent share price appreciation. 

• Former professional football player turned banker/trader
• Helped build up Swiss franc capital market operation for Merrill Lynch
• Witnessed UBS acquisition of Credit Suisse in 2023, highlighting lack of sustainable business model for Credit Suisse

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• Merger with Cambridge Bancorp seen as strategic move to bolster asset management business
• Market initially reacted negatively to merger announcement
• Both EBC and CATC stocks have started to bounce back, reflecting overall recovery of bank stocks; Eastern Bankshares remains significant player in industry with strong asset base

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.

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.

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