Daily Brief Financials: Swire Pacific (A), Star Asia Investment, National Australia Bank, Wharf Real Estate Investment C, NZD, Hero FinCorp, JDC Group AG and more

• The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
• Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
• The key stocks mentioned in this regular insight include: Swire Pacific (19/87 HK)/Swire Properties (1972 HK) and Hang Lung (10 HK)/Hang Lung Properties (101 HK).

• Star Asia Investment (3468 JP) is looking to raise around US$118m in its primary follow-on offering to acquire four hotels. The acquisition will amount to a total of JPY34.7bn (US$237.5m). 
• The deal is a somewhat large one to digest, at 83 days of three month ADV and 13.3% of TSO .
• In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

• NAB reported its 3Q24 results with slightly lower profit, but major divergence inside the figures
• The bank shows a staggering decline in credit costs in 3Q24, which means the results were flattered
• This is despite a very sharp rise in bad loans in major segments, corporate and residential mortgages, up around 50% YoY annualized in 3Q24

• Wharf REIC reported 2% yoy core earnings growth, the first earnings increase since 2019. The results also show Hong Kong retail business is more resilient than expected
• The upcoming catalysts include 1) lower interest rates, 2) weakening currency environment and 3) bottoming out of HK retail market
• Market is forward-looking and we think the worst is behind us.  Valuation is very compelling.  The stock is a beta play.  BUY

• Market pricing reflects less Fed cuts than previously expected, with uncertainty surrounding the impact on the dollar
• RBNZ rate cut delivered as expected, leading to potential further kiwi weakness
• Labor market data and rate pricing are key factors to watch for potential future movements in FX markets

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Hero FinCorp (HF) is looking to raise around US$438m in its upcoming India IPO.
• HF is a non-deposit taking NBFC. It offers a suite of financial products catering primarily to the retail segment and the MSME customer segment in India.
• In this note, we talk about the positive aspets of the deal.

JDC Group’s (JDC’s) H124 results were strong, with organic revenue growth close to 20% and an EBITDA margin of 6.5% (H123: 6%). Management reiterated its FY24 guidance of €205–220m of revenue and €14.5–16m for EBITDA. Given JDC’s H124 performance, we have increased our estimates to the high end of the range. With an FY25e EV/EBITDA multiple of 11.9x (based on our estimates), we believe our valuation is undemanding, certainly compared to platform peers. Our discounted cash flow (DCF) values JDC at €38.20 per share (€34.04/share previously).