Daily Brief Financials: Tian An China Investment, Stylam Industries, Hopson Development, RHB Capital Bhd, Rothschild & Co, Dalian Wanda Commercial Properties, Bancolombia Pref and more

• Allied (373 HK) took Allied Properties (H.K.) (56 HK) private in 2020, followed by SHK Hong Kong Industries (666 HK) in 2021. Now it’s Tian An China (28 HK)‘s turn.
• Preceding my comments on Tian An and AGL are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• Stylam Industries (SYIL IN) is a play on the Indian laminate space with a 25% CAGR growth predicated on growth in both international and domestic markets.
• The stock trades at 23.6x/19x FY24e/25e. While this is not cheap by any stretch of the imagination, the company is a high grower/best in class amongst its competitors. 
• Stylam Industries (SYIL IN)  is completing an expansion to increase capacity by 40% in FY24 and expanding in a new segment that can double its revenue over FY23-25e. 

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. China SCE
2. China Hongqiao
3. Times China
4. Greentown China
5. Seazen (Formerly Future Land)

and more…

• Of the six Malaysian banks screened, we maintain RHB Bank and CIMB on the buy list; we add funding and liquidity metrics to our screens
• RHB Bank is our top pick for its strong post-provision profitability, its high CET1 ratio understating its ROE, and it is attractive valuations on PE multiples and PBV ratios
• CIMB remains our deep value pick as we believe it has potential to improve post-provision returns; the constructive return outlook combines positively with CIMB’s modest valuations, including its PEG ratio

• Concordia has filed the draft offer memorandum and started acquiring Rothschild & Co (ROTH FP) shares in the market (limit c.8.2 million) to ensure success. All regulatory approvals have been obtained.
• The adjusted offer price is €46.6/share, or €38.6/share (ex-extraordinary distribution, 7.6x NTM Fwd P/E, rather cheap, in my view), which will enable the concert to partly finance the offer. 
• For comparison, Greenhill is being taken at 18.5x Fwd P/E. Nevertheless, I believe the offer will be accepted. Spread is 0.75%/2.78% (gross/annualised).

• Dalian Wanda Group Co.’s property management unit expects to scrape up enough cash to pay off a 2 billion yuan ($281 million) note due this Saturday, the company said.
• But with 8.9 billion yuan of domestic notes and offshore bond due within two months, Dalian still needs to dump some of its shopping malls and hotels.
• The troubled property-to-entertainment conglomerate was reported to be considering such moves earlier this week.

• The agreement between Grupo Gilinski and the Grupo Empresarial Antioqueño (GEA) grants Gilinski control of food company Nutresa, whilst Gilinski exits from stakes in Grupo Sura and affiliate Grupo Argos
• This deal implies the end of Grupo Gilinski’s ambition to control BanColombia and even marks the end of Gilinski exerting activist shareholder influence over the bank’s management
• BanColombia’s fundamental outlook, having improved to 1Q23, now looks tougher, not least due to the heightened political risk of the populist Petro administration; use the share price bounce to sell