Daily Brief Financials: SAMHI Hotels , Hong Kong Hang Seng Index, Rakuten Securities, Sino-Ocean Group, Ally Financial, The Diverse Income Trust PLC and more

• SAMHI Hotels (SAMHI IN)  plans to raise around US$200m (estimated) in its Indian IPO.
• Samhi is India’s third-largest hotel asset owner, by number of keys, with a portfolio of 25 operating hotel assets comprising 3,839 keys, as of Feb 2023.
• In this note, we look at its updated filings and discuss the changes since its last filing in 2019.

• The Hong Kong Hang Seng Index (HSI) last week closed strongly up. This week it’s pulling back, but MRM pattern readings forecast a very short-lived pullback (-1 to -2 weeks).
• The suggested strategy is: let the index play out its pullback (warning: it can be volatile) and then enter LONG trades when the probability is good.
• Suggested support price areas are between 18965 (Q2) and 18732 (Q3) – or this Friday at Close (as long as the close is negative).

• Rakuten Securities (RAKUSEC JP), the online securities arm of Rakuten, aims to raise around US$500m (estimated) in its Japan listing.
• It is the largest online securities firm in Japan with a 33.7% market share. In FY22, it had over 8.64m accounts, with around JPY18.2tn (US$131bn) of assets under custody.
• In this note, we talk about the positive aspects of the deal.

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.

• Shui On Land
• Sino-Ocean Service

• Ally Financial is about to release its Q2 2023 earnings tomorrow as tightening within the auto loans market continues.
• The deposit mix will be a key area to watch as it will have a major impact on the company’s return on tangible common equity.
• The company is expected to report its second quarter of 2023 on Thursday.

The Diverse Income Trust (DIVI) has two co-managers, Gervais Williams and Martin Turner at Premier Miton, who employ a genuine all-cap UK equity income strategy. DIVI’s long-term total returns are a function of its income and above-average income growth and although valuations can vary, over time they become less important as they trade in a range. While the trust’s performance has been disappointing over the last two years as stocks have derated and AIM stocks have underperformed, its income profile remains robust; hence, the managers are anticipating an improvement in DIVI’s performance. The trust has delivered a rising level of regular annual dividends throughout a range of market conditions.