Daily Brief Financials: Resona Holdings, S&P Global , Hang Lung Properties, PrimeTime Property Holdings, Aon , RDC Properties, Greentown China, Westaim Corporation, Anicom Holdings, Chiba Kogyo Bank and more

• The sharp Japanese market correction has hit the banks hard, and heightened market volatility is likely to remain a feature, at least in the very near term
• Nonetheless, the big five’s results in the first quarter to June-end paint a reassuring picture, and we see that BoJ is pausing on rate rises in these unsettled markets
• Among the big five Japanese bank shares, we highlight Resona and Mizuho in particular for their strong gearing to higher interest rates; we are also positive on SMFG and Concordia

• S&P Global demonstrated a robust performance in the second quarter of 2024, marking significant milestones and strategic advancements, achieved amidst a backdrop of market variability.
• The company reported a 16% increase in total revenue, adjusted for divestitures, with highlights including a notable spike in transaction revenue in the Ratings division by over 60%.
• This division’s success was propelled by increased activity in the public and private markets, notably a 70% boost in private market rating services.

• HLP malls, which focus on China luxury retail consumption, is facing headwind from slowing China economy and weaker consumption
• The retail sales in its malls slowed down and recorded -13% yoy growth for 1H 2024.  Dividend cut was a negative surprise
• However, market is forward looking and stock valuation is too cheap to ignore, we recommend long-term investors can look at this name

• PrimeTime Property Holdings operates a diversified portfolio of thirty properties, spread across Botswana, South Africa, and Zambia.
• The company is currently Botswana’s smallest listed property company in market capitalisation terms, despite having the fourth largest portfolio by asset value, but the company’s intrinsically fully let portfolio offers professionally managed, superior quality buildings, in desirable locations at a currently attractive valuation.
• Latest interim results have seen revenues increased by 6% compared to the prior year’s interim period.

• Aon plc has delivered a robust performance for the second quarter of 2024, marked by a clear focus on delivering on its three-dimensional, three-year strategic plan known as the “3×3 plan.” This approach underscores Aon’s commitment to strengthening offerings across risk capital and human capital solutions, all promoted through its Aon client leadership model.
• The acquisition of NFP, welcoming 7,700 new colleagues, has played a pivotal role, adding substantial scale and extending Aon’s capabilities in critical business areas.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• RDC Properties Limited is a variable loan stock company listed on the Botswana Stock Exchange.
• The company is currently Botswana’s second largest listed property company in market capitalisation terms, despite having the largest portfolio by asset value.
• It currently operates in Botswana, South Africa, Madagascar, Mozambique, Zambia, Croatia, and the United States of America.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Greentown China’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”. 

• Westaim aims to create value for shareholders through a recent secondary offering and potential sale of remaining shares in Skyward Specialty
• The company is set to increase its cash position and reduce its discount to intrinsic value, providing an attractive investment opportunity
• Investors can capitalize on Westaim’s near-cash assets and potential upside in the future.

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.

• Recurring revenue rose 11.1% YoY to JPY16.5bn, driven by increases in underwriting, investment, and other recurring revenue.
• Recurring profit increased 34.9% YoY to JPY1.6bn, aided by cost control and streamlined operations, with a 9.8% profit margin.
• E/I loss ratio increased 1.5pp YoY to 61.1%, while the operating expense ratio improved by 1.0pp YoY to 32.8%.

• Consolidated ordinary income was JPY14.0bn (-8.2% YoY), with ordinary profit at JPY2.8bn (-18.5% YoY) and profit attributable to owners at JPY2.2bn (-9.4% YoY).
• Non-consolidated core gross profit increased to JPY9.7bn (+0.9% YoY), and core operating profit rose to JPY3.3bn (+3.0% YoY).
• Loans outstanding increased 0.6% YoY, while the loan-to-deposit ratio decreased to 77.5% from 77.8% a year ago.