Daily Brief Financials: Seoul Guarantee Insurance, Triple Point Social Housing REIT, Bank of Jiangsu , IREDA, HDFC Bank and more

• Seoul Guarantee Insurance (031210 KS) is looking to raise around US$270m in its Korean IPO.
• Seoul Guarantee Insurance (SGI) is a guarantee insurance firm operating predominantly in Korea.
• We have looked at the firm’s past performance in earlier notes. In this note, we undertake a peer comparison.

Triple Point Social Housing (SOHO) reported solid H123 results. With borrowing costs fixed, growth in indexed rental income partly offset the impact of credit loss provisions against its two unperforming tenants. Progress is being made in resolving these issues, and as there is no read-across to the wider portfolio, we forecast full dividend cover through FY24. Meanwhile, with the demand for specialised supported housing remaining strong, SOHO has entered a partnership with one of the leading providers in the sector.

• Fee income is down 33% in the most recent quarter which may have prompted the bank to realize gains up 63% in the period to preserve profit growth
• Quality of earnings is not strong, with more than half of the bank’s pre-tax income delta driven by realized and unrealized gains, with credit cost decline the other key driver
• Loss NPLs are now 26% of total NPLs, from 11% a few year ago, suggesting worsening credit metrics. Declining credit costs seem at odds with economy, NPL distribution.

• IREDA (1845911D IN) is looking to raise at least US$100m in its upcoming India IPO. The deal will be run by IDBI Capital, SBI Capital and Bob Capital.
• Indian Renewable Energy Development Authority (IREDA) is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE). 
• It is registered with the Reserve Bank of India (RBI) as a Systemically Important Non-Deposit-taking Non-Banking Finance Company (NBFCND-SI), with Infrastructure Finance Company (IFC) status.

• The markets closed below our stop of 19,900, primarily driven by weakness in global market sentiments. 
• For HDFC Bank (HDFCB IN) while the street seems to be worried about asset quality, trends in whistle-blower complaints and the timing of the merger also raise alarms.  
• Other names discussed this week include Delta Corp Ltd (DELTA IN) and Godrej Properties (GPL IN).