Daily Brief Financials: PICC Property & Casualty H, Yuexiu Property , Bitcoin, Hargreaves Lansdown, Mercuria Holdings and more

• The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
• The index changes and indicative weights for the September 2024 index rebal event is expected to be announced after market close on Friday 16th August 2024.
• In this insight, we take a look at our latest expectations for capping flows based on current prices.

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.

• Guangzhou R&F Properties
• JSW Steel Ltd
• Yuexiu Property

• As we noted in last week’s Crypto Crisp, we anticipated a gradual but steady recovery in the market to the levels seen before last weekend’s sharp decline.
• This prediction has proven accurate so far, with some recovery since last week, though we are still far from fully regaining those levels.
• We remain confident that it could take the rest of August to reach those levels again.

• The Board of Hargreaves Lansdown (HL/ LN) and the CVC consortium finally agreed on the terms proposed in June (1,110p cash consideration + 30p dividend). Premium is a decent 54%.
• The non-binding indications and irrevocable commitments from the founders representing 25.5%, create a strong foundation for reaching the 75% shareholder approval needed. I set my TP at 1,100p.
• Taking the closing share price on 13 August, gross spread (to the Cash Offer of 1,140p) is  c.3.6% and the annualised return is c.7.4%. Long.

• Operating revenue decreased JPY1.1bn (-33.3% YoY) to JPY2.3bn, with gross profit increasing JPY378mn (+24.2% YoY) to JPY1.9bn.
• Recurring profit increased JPY28mn YoY to JPY506mn, driven by a JPY378mn rise in gross profit and JPY166mn in foreign exchange gains.
• Assets under management (AUM) expanded to JPY329.7bn, mainly through fundraising for Buyout Fund No. 2.