Daily Brief Financials: Woori Financial Group , S&P/ASX 200, Yuexiu Real Estate Investment Trust, Vista Land & Lifescapes and more

• NPS is concerned that aggressive value-up measures by bank holding companies and ongoing cancellations might quickly use up their room up to the 10% ownership limit.
• With their stake already at mid-8%, they may not buy as much as the index suggests, creating new trading opportunities in the four major bank holding companies.
• Woori Financial has more room for buying, so as the year ends, NPS’s skewed-buying could give it a better price impact than other bank holding companies.

• The S&P/ASX 200 has been quietly rallying since its (modest) -11% correction in 2023, mostly unaffected by global turmoils, even the latest sell-off in US, Asia and Europe was “non-damaging”.
• The index has already recovered a large part of the losses suffered for only 1 week, very brief if we consider that the SPX INDEX had corrected for 4 weeks.
• Now that the S&P/ASX 200 has rallied strongly we want to analyze its pattern model, to identify the area where it could pull back again (or slow down).

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.

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Vista Land & Lifescapes’ (VLL) H1/24 results were acceptable, with improved earnings and margin expansion. That said, cash flows stayed negative and debt continued to rise. Hence, leverage remained moderately weak.

VLL maintains a sizeable portfolio of securities investment and investment properties, which generate recurring income and support the balance sheet. The investments could also be monetised if needed, albeit their market value is unclear. We expect the company’s liquidity needs to be manageable, given VLL’s reasonable access to funding.

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.

• Lenovo
• Citicore Renewable Energy
• Vedanta Resources