Daily Brief Financials: SBI Sumishin Net Bank , Muthoot Microfin, Shanghai Rural Commercial Bank, China Merchants China Direct Investments, Hargreaves Lansdown, Office Properties Income Trust, Road King Infrastructure and more

• JPX has commenced a market consultation on changes to the TSE Tokyo Price Index TOPIX (TPX INDEX) including expansion of the universe and periodic stock selection.
• Based on current market cap/ liquidity, there could be 38 adds and 447 deletions for the TSE Tokyo Price Index TOPIX, though the changes only start in October 2026. 
• The deletions will be phased out of the index in 8 steps that will end in July 2028 and most of the stocks will move to the TOPIX Next-tier. 

• Muthoot Microfin (MUTHOOTM IN) raised around US$115m in its Indian IPO, after pricing the deal at the top end of its IPO range at INR291/share.
• Muthoot Microfin is a microfinance institution providing micro-loans to women customers with a focus on the rural regions of India.
• In this note, we will talk about the lock-up dynamics and updates since our last note.

• CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500.
• In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2024.
• Currently, we see 16 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index.

• While Elizabeth Kan barely survived the AGM vote, ASM has effectively mobilized minority shareholders.
• Lazard (owns 15% of CMCDI) probably voted alongside ASM (owns 9%). Other than China Merchants Group and Victor Chu, almost no “outside shareholders” voted in favor of Kan, .
• The next battleground is a vote in November when CMCDI needs to renew its investment management agreement. Intense behind-the-scene negotiations are expected, given the bargaining power ASM now demonstrated.

• The private equity consortium (CVC, Nordic Capital, and Abu Dhabi Investment Authority) has upped the possible offer to 1,140p/share in cash, including 30p final dividend, with a rollover equity alternative.
• The offer implied valuation of 17.2x NTM forward P/E and dividend yield of 4.25% are historically low for HL. An offer in line with peer’s multiples would imply 1,326p.
• The rollover equity alternative appears to be intended to give founders a means of sharing in HL’s future success. Gross spread is 0.5%.

• Buy long positions in OPI 4.5 2/1/25 bonds, currently trading at 83 with a 28% yield
• Company has 11 months to refinance bonds with Moelis assisting in debt restructuring
• With 5.3B in total assets and 1.74B already pledged as collateral, company has enough to secure upcoming 650M maturity

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.

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.

• Road King Infrastructure