Daily Brief Financials: Rakuten Bank , Yuexiu Property, Bank Mandiri Persero, Bank of Nova Scotia, Shui On Land, Bitcoin and more

• To look at the Rakuten Bank (5838 JP) IPO and how trading and pricing may occur, some are looking at SBI Sumishin Net Bank (7163 JP). 
• To understand the movements of SBI Sumishin Net Bank, it may help to look at other IPOs in Japan and how they trade post-IPO.
• I looked at the last 200+ IPOs in Japan to understand volume decay and price evolution. It leads to suggestions for investors regarding Rakuten Bank.

• After being halted this morning before the start of trade, post-close, Yuexiu Property (123 HK) announced a fully-underwritten Rights Offering. 
• The Rights Offering intends to raise HK$8.36bn issuing 30 Rights for every 100 Shares held, at a subscription price of HK$9.00, a 23.3% discount to TERP. 
• This will take a moderately-levered property/services/leaseco and add more capital to it. Not terribly bullish. Looks opportunistic. And one has to look through 3 capital actions to see dividends ahead.

• Yuexiu Property (123 HK) will raise US$1.1bn through a rights offering – 30 rights shares for every 100 existing shares. The subscription price is HK$9.00, a 23.3% discount to TERP.
• As Yuexiu is in no danger of breaching the three red lines, the rights issue is an opportunistic play on capitalising on the strong share price run.
• Rights shares will be entitled to the final and special dividend announced on 15 March. Shares go ex-rights on 2 May and the rights start trading on 15 May.

• Bank Mandiri (BMRI IJ) released a well-balanced set of results with some pressure on NIMs more than offset by higher loan yields, lower credit risk, and great cost efficiency.
• The rapid and widespread adoption of the Livin’ app for new customers and onboarding customers has positively impacted efficiencies and helped gather more CASA.
• Bank Mandiri Persero (BMRI IJ) is optimistic about the outlook for 2023 with loans expected to grow +10%-12% with table NIMs and lower credit costs. 

• This is our first report on the Bank of Nova Scotia, one of Canada’s Big Five multinational banking and financial service companies.
• Although banking revenues increased by a solid 11%, overall revenues were down 1% year over year due to reduced noninterest income.
• Mortgage lending increased by 7% while commercial loans increased by 22%, bringing loan growth to 9% year over year.

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.

• Renewable Energy Group
• Sands China
• Shui On Land
• Vedanta Resources
• Yuexiu Property

• The events of the last few months, namely the relentless regulatory enforcement and the banking crisis have upended crypto exchange market structure.
• During a bear market, consolidation among exchanges is expected.
• However, as the SEC targets specific exchanges and leave some cutoff from USD payment rails, many exchanges have been left at a competitive disadvantage.