In today’s briefing:
- SBI Sumishin Net Bank IPO: An IPO Price Range in the Wake of the Bank Share Sell-Off
- Nikkei and Nifty Shorts Hitting Bear Targets
- New World Development(17 HK):High Leverage in HKRE but Likely the First to Rebound if Rate Peaks Out
- 10 in 10 with Centurion Corporation – Specialised Accomodations with a Heart
SBI Sumishin Net Bank IPO: An IPO Price Range in the Wake of the Bank Share Sell-Off
- SBI Sumishin Net Bank (7163 JP) has introduced a price range of JPY1,200-1,260 per share in the wake of a sell-off in bank shares. Offer shares and timelines are unchanged.
- We previously discussed the IPO in SBI Sumishin Net Bank IPO: The Investment Case and SBI Sumishin Net Bank IPO: Valuation Insights. The shares will be listed on 29 March.
- Our analysis suggests that SBI Sumishin Net Bank is fairly valued at the new IPO price range. We would participate in the IPO.
Nikkei and Nifty Shorts Hitting Bear Targets
- Japan became a top laggard short bet above 28,000 given our call for a domino roll. Nikkei 26,900 was our initial downside target with a primary target of 26,000.
- India’s short from 18,000 is meeting the overshoot target at 17,100 with 16,800 a level to cover if not look for a tradable bounce. 17,700-800 is fresh sell resistance.
- SPX weakness was the call from March 6-20 so we may be seeing up for some recovery actvity in Asia after the 20th but will face headwinds come June.
New World Development(17 HK):High Leverage in HKRE but Likely the First to Rebound if Rate Peaks Out
- NWD has the highest gearing among all HK real estate names. It has significantly underperformed since the rate hike cycle begun. Now it has the biggest potential to rebound
- The stock is trading at attractive valuation, 0.27x P/B, like a distressed Chinese developer. The major market concerns are potential earnings downgrade and dividend cut
- I am quite convicted on the stock for rebound given 1) company has clear de-leveraging plan 2) no plans for equity-raise 3) lots of corporate actions ahead to unlock value
10 in 10 with Centurion Corporation – Specialised Accomodations with a Heart
10 in 10 with Centurion Corporation – Specialised Accomodations with a Heart
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