Daily Brief Financials: SBI Sumishin Net Bank, Far East Hospitality Trust, Howard Hughes Corp, Record PLC, SES AI Corp, Banco Do Brasil Sa, The Diverse Income Trust PLC, Curve DAO Token and more

• SBI Sumishin Net Bank (7163 JP), an online bank in Japan, has revived its listing plans to raise up to US$440 million (vs the 2022 target of US$1 billion). 
• Founded in 2007, SBI Sumishin Net Bank is owned 50% by SBI Holdings (8473 JP) and 50% by Sumitomo Mitsui Trust Holdings (8309 JP).
• The investment case rests on market share gains, the rude health of the digital bank segment, the nascent BaaS segment turning profitable and ambitious medium-term goals. 

• 2H22 and FY22 DPU rose 13.1% and 24.3% YoY respectively
• 4Q22 hotels RevPAR reached 90% of 4Q19. 4Q22 SR RevPAU surpassed 4Q19 level by 15%
• Far East Hospitality Trust’s (FEHT) 2H22 distribution per unit (DPU) increased 13.1% year-on year (YoY) to 1.73 Singapore cents, bringing full year DPU to 3.27 Singapore cents (+24.3%).

• HHC highlighted its self-funding business style that should contribute to growing the scale of the Company’s commercial operations within its master planned communities (“MPC”)
• HHC reported revenue of $482 million in Q4, bringing full year 2022 revenue to $1.61 billion. The full year revenue increase was expected as HHC recognizes condo sales upon delivery
• Since the seventh tower, Victoria Place, will be completed in 2024, which means, condo sales in 2023 would be limited 

In its capital markets event in February, Record provided more detail on the progress it is making with its strategy and in particular on its diversification initiatives. This highlighted a range of partnerships to develop new products and, as a result, a promising sales pipeline pointing towards growth and potentially contributing to realisation of the target for FY25 revenue of £60m. Subsequently, signalling a further step in its succession planning, the group has announced that Neil Record, founder of the group in 1983 and currently non-executive chairman, is to retire from his role and the board following the AGM in July. David Morrison has been appointed as chair elect.

• SES announced it is unable to complete the preparation of its Annual Report on Form 10-K (the “Form 10-K”) and its audit in time for the fiscal year ending December 31, 2022.
• The Securities and Exchange Commission (SEC) has received the company’s form NT 10-K, which grants a 15-calendar day “grace period” for filing its Form 10-K.
• SES expects that its Form 10-K should be filed on or before March 16.

• Banco do Brasil S.A. is an emerging market banking stock that presents a cyclical opportunity to risk-seeking investors.
• The bank’s operational prowess and dominant market position allow it to monetize high-yielding credit.
• In addition, the bank’s fee-based business is head above shoulders.

The Diverse Income Trust (DIVI) is managed by Gervais Williams and Martin Turner at Premier Miton. They are very optimistic about the prospects for UK stocks, with Williams recently stating: ‘I am more bullish than I have been in the last 30 years’. UK equity valuations are looking very attractive versus other markets and their own history, while there is a historically wide discount between the valuation of DIVI’s portfolio and that of the UK market. The trust’s income is now higher than pre-COVID-19 levels, with the improvement exceeding that of UK stocks in aggregate, which Williams attributes to the success of its portfolio companies. He believes that DIVI’s shareholders will be rewarded with a higher level of income, while successful stock selection, which has been demonstrated in the past, could lead to outperformance versus the UK and global markets.

• It’s impossible to paint a full picture of Ethereum DeFi without an understanding of Curve.
• Its unique AMM mechanism enables large stablecoin swaps with extremely low price slippage and its governance and incentives make it a kingmaker for stablecoins; Terra founder Do Kwon touted the infamous 4pool – containing UST – as the thing that would catapult his stablecoin ahead of DAI.
• In the past, we have written on how Curve pools can be a useful barometer for stablecoin demand particularly during volatile market events.