In today’s briefing:
- Kalbe Farma (KLBF IJ) – Rebalancing Growth
- Zhenro Plans Asset Sale of up to $644mn
- Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
- YC-Backed Fazz Financial Eyes Series C Funding
- United Tractors (UNTR IJ) – Despite slow in January, February operationals should be higher
Kalbe Farma (KLBF IJ) – Rebalancing Growth
- Kalbe Farma (KLBF IJ) released a reassuring set of results with sales growing +13.6% and net profit by +12.5% in 2021, with growth coming from prescription drugs and distribution
- 2022 should see growth picking up across all of its divisions with recovery for consumer health and nutritionals plus its digital strategies are starting to make a difference.
- Kalbe Farma trades in 22.8x FY22E PER and 21.0x FY23E PER versus its 5-year average forward PER of 26.3x forward PER, making it look attractive at current levels.
Zhenro Plans Asset Sale of up to $644mn
Zhenro Properties plans to sell assets worth up to RMB 4bn ($632.7mn) in H2 2021 and extend maturity of other onshore and offshore debt, including debt bank loans and asset-backed securities (Term of the Day, explained below) , as per three sources. The developer is already asking holders of its $200mn 14.724% Perp callable on March 5 to waive claims against the company if it does not redeem the bond. It is also seeking to extend the maturity of five bonds due 2022 that have a total amount outstanding of $1.05bn to be exchanged for new 8% bonds due March 6, 2023. Zhenro is said to be in talks with state-owned firms to sell the assets.
Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
US equity markets dropped again on Wednesday with the S&P and Nasdaq down 1.8% and 2.6% with sectoral losses led by Consumer Discretionary and IT down over 2.5-3.5%. The US 10Y Treasury yields are down 10bp this morning to 1.89% on the back of Russia’s “military operation” in Ukraine (scroll below for details) this morning . European markets were relatively steady yesterday – DAX was down 0.4%, CAC was down 0.1% and FTSE was up 0.1%. Brazil’s Bovespa closed 0.8% lower. In the Middle East, UAE’s ADX was flat and Saudi TASI was down 0.3%. Asian markets have dropped sharply – Shanghai, HSI, STI and Nikkei are down 0.9%, 2.8% 2.7% and 2.3% respectively. US IG CDS spreads widened 1.2bp and HY spreads were 5.7bp wider. EU Main CDS spreads were 0.7bp tighter and Crossover CDS spreads were 1.6bp wider. Asia ex-Japan CDS spreads were 2.8bp tighter.
YC-Backed Fazz Financial Eyes Series C Funding
- Fazz Financial Group is looking to raise a series C funding round this year, and it has already drawn the interest of several “top-tier US tech investors.”
- The Southeast Asian fintech firm also said that its monthly revenue jumped 2x to US$2.6 million in December 2021
- Its monthly transactions also hit over US$800 million, a threefold increase from the same period the previous year.
United Tractors (UNTR IJ) – Despite slow in January, February operationals should be higher
Despite slow in January, February operationals should be higher
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