Daily Brief Financials: Shizuoka Financial Group, Ohmyhome, Country Garden Holdings Co, Grupo Financiero Banorte, National Retail Properties and more

• Credit costs in September quarter are showing steep delta YoY and QoQ
• Accelerated credit growth in past six months may mean there is more to come
• Funding cost surge is keeping net interest income growth near zero despite swelling loans

• Singapore-based Ohmyhome has filed for an initial public offering (IPO) in the US at about US$88 million valuation, according to multiple reports.
• The property-tech company seeks to raise up to US$16.25 million and offer 3.25 million shares at a price range of US$4-5 apiece.
• Spartan Capital Securities is the lead managing underwriter and book-runner for the IPO.

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.

• Country Garden Holdings Co

• We analyse key trends to October 2022 for Banorte and Banco del Bajio, two of the top three ROE generating banks in Mexico which also trade on premium PBV ratios
• For both, the challenges are funding costs that rise faster than loan yields, crimping credit spreads, as well as the indications that cost of risk may have bottomed out
• Although the operating expenses ratio is well controlled so far, it seems unlikely that it can improve much more; these data trends add weight to our cautious view on Banorte

• The Gordon’s Growth Model suggests National Retail Properties is severely undervalued.
• In addition, a seasonal ARIMA model indicates the REIT’s dividend yield might be sustainable.
• The REIT could be an outlier in 2023, according to the Gordon’s growth model.