Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

<ul>
<li>SoftBank group (SBG) relies mainly on Arm re-rating further for NAV growth, yet Arm’s valuation already discounts, in our view, much growth potential; SBG and Arm shares are highly correlated</li>
<li>JPY-USD FX has weakened recently, but the potential for BoJ monetary tightening could reverse this trend impacting SBG, given the high skew of USD assets relative to USD liabilities</li>
<li>The Vision Funds are hampered by few private company exits; SBG’s NAV discount remains high, but its dependence on Arm is a major risk; we turn negative on SBG</li>
</ul>


SoftBank group (SBG) relies mainly on Arm re-rating further for NAV growth, yet Arm’s valuation already discounts, in our view, much growth potential; SBG and Arm shares are highly correlated
JPY-USD FX has weakened recently, but the potential for BoJ monetary tightening could reverse this trend impacting SBG, given the high skew of USD assets relative to USD liabilities
The Vision Funds are hampered by few private company exits; SBG’s NAV discount remains high, but its dependence on Arm is a major risk; we turn negative on SBG


Softbank (9984 JP): The Importance of Arm Is More a Curse than a Blessing

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<ul>
<li>USTs were sold off across the curve yesterday. The yield on the 10Y UST increased 12 bps to 4.42%.</li>
<li>Open interest rose for the fourth consecutive session on the 2Y notes contract, with traders building up bearish positions following the US presidential election.</li>
<li>Traders are pricing in just over a 50% chance that officials will deliver another quarter-point rate cut in December, and are now pricing in about two US rate cuts through June 2025 (vs. almost four projected at the start of last week).</li>
</ul>


USTs were sold off across the curve yesterday. The yield on the 10Y UST increased 12 bps to 4.42%.
Open interest rose for the fourth consecutive session on the 2Y notes contract, with traders building up bearish positions following the US presidential election.
Traders are pricing in just over a 50% chance that officials will deliver another quarter-point rate cut in December, and are now pricing in about two US rate cuts through June 2025 (vs. almost four projected at the start of last week).


Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Further tech weakness in the US as markets brace for a more inflationary outlook.</li>
<li>Isetan Mitsukoshi numbers and new MTP should end recent underperformance.</li>
<li>Excessive Nintendo weakness on PIF cutting holdings a chance to buy ahead of new NSW announcement.</li>
</ul>


Further tech weakness in the US as markets brace for a more inflationary outlook.
Isetan Mitsukoshi numbers and new MTP should end recent underperformance.
Excessive Nintendo weakness on PIF cutting holdings a chance to buy ahead of new NSW announcement.


Japan Morning Connection: Softbank Further Consolidating Its AI Focus

Japan Specialist

Mark Chadwick

<ul>
<li>The S&amp;P 500 closed nearly unchanged on Wednesday, as traders digested the in-line October consumer price index report (+2.6%)</li>
<li>SoftBank has unveiled plans for an ambitious AI grid in Japan, aiming to deploy 200,000 mini data centers across the country.</li>
<li>Seven &amp; i Holdings, owner of Japan's 7-Eleven convenience stores, is exploring a potential management buyout valued at over ¥6 trillion</li>
</ul>


The S&amp;P 500 closed nearly unchanged on Wednesday, as traders digested the in-line October consumer price index report (+2.6%)
SoftBank has unveiled plans for an ambitious AI grid in Japan, aiming to deploy 200,000 mini data centers across the country.
Seven &amp; i Holdings, owner of Japan's 7-Eleven convenience stores, is exploring a potential management buyout valued at over ¥6 trillion


Ohayo Japan | US Stocks Flatline as Post-Election Rally Loses Steam

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Kansai Electric Power / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kansai-electric-power-co-inc" target="_blank" data-smartkarma-citation="entities:18907:1" rel="noopener">Kansai Electric Power (9503 JP)</a> plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans.</li>
<li>This will be a large deal for the stock to digest and doesn’t appear to have been particularly well flagged.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



Kansai Electric Power (9503 JP) plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans.
This will be a large deal for the stock to digest and doesn’t appear to have been particularly well flagged.
In this note, we will talk about the placement and run the deal through our ECM framework.


Kansai Electric Placement - A US$3.5bn Raising Which Doesn’t Appear Well Flagged

Japan

SoftBank Group Corp provides telecommunication services.  The Company also operates ADSL (Asymmetric Digital Subscriber Line) and fiber optic high-speed Internet connection, e-Commerce businesses, and Internet based advertising and auction businesses.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Softbank Group (ADR) (SFTBY US)

Softbank (9984 JP): The Importance of Arm Is More a Curse than a Blessing

SoftBank's reliance on Arm for NAV growth is a significant risk, given Arm's rich valuations, with potential risks from a JPY-USD FX reversal and...

Victor Galliano

Lucror Analytics - Morning Views Asia

Open interest rose for the fourth consecutive session on the 2Y notes contract, with traders building up bearish positions following the US...

Lucror Analytics

Japan Morning Connection: Softbank Further Consolidating Its AI Focus

Tech weaknes continues in the US, new numbers from Isetan Mitsukoshi should end recent underperformance and Nintendo weakness offer opportunities...

Andrew Jackson

Ohayo Japan | US Stocks Flatline as Post-Election Rally Loses Steam

S&P 500 closes flat after in-line CPI report, SoftBank plans AI grid in Japan, Seven & i Holdings considers management buyout.

Mark Chadwick

Kansai Electric Placement - A US$3.5bn Raising Which Doesn’t Appear Well Flagged

Kansai Electric Power (9503 JP) plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans. In this note, we...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Softbank (9984 JP): The Importance of Arm Is More a Curse than a Blessing

​SoftBank's reliance on Arm for NAV growth is a significant risk, given Arm's rich valuations, with potential risks from a JPY-USD FX reversal and...

Victor Galliano

Lucror Analytics - Morning Views Asia

Open interest rose for the fourth consecutive session on the 2Y notes contract, with traders building up bearish positions following the US...

Lucror Analytics

Japan Morning Connection: Softbank Further Consolidating Its AI Focus

Tech weaknes continues in the US, new numbers from Isetan Mitsukoshi should end recent underperformance and Nintendo weakness offer opportunities...

Andrew Jackson

Ohayo Japan | US Stocks Flatline as Post-Election Rally Loses Steam

​S&P 500 closes flat after in-line CPI report, SoftBank plans AI grid in Japan, Seven & i Holdings considers management buyout.

Mark Chadwick

Kansai Electric Placement - A US$3.5bn Raising Which Doesn’t Appear Well Flagged

Kansai Electric Power (9503 JP) plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans. In this note, we...

Sumeet Singh

SoftBank's reliance on Arm for NAV growth is a significant risk, given Arm's rich valuations, with potential risks from a JPY-USD FX reversal and...

S&P 500 closes flat after in-line CPI report, SoftBank plans AI grid in Japan, Seven & i Holdings considers management buyout.