Smartkarma Daily Briefs

• SBI Shinsei Bank (8303 JP), a Japanese financial institution, is looking to relist by raising about US$2 billion. The primary/secondary split is 40%/60%. 
• In December 2021, Shinsei Bank was privatised by SBI Holdings (8473 JP) through a contentious tender offer at JPY2,800 per share. 
• The investment case rests on growth in accounts/deposits, robust loan book growth, accelerating revenue growth, rising margins and improving asset quality.

• November 21st marks the close of the review period for the S&P/ASX 200 (AS51 INDEX) December rebalance. Changes will be announced on December 5th. 
• Implementation of changes begins December 19th, read Brian Freitas‘ recent insight to learn about the 7 possible modifications to the ASX 200.
• Passive tracker flows can significantly move markets around index rebalance dates. In this insight, we leverage our models to identify critical support and resistance zone (the index is very OVERSOLD).

• We upgrade BolsaMex to a buy rating; we believe that it is too cheap to ignore and that it has sound growth credentials with its healthy share of post-trade revenues
• We downgrade B3 Exchange to a neutral from buy, after its strong share price performance since mid-October lows; we feel it is still attractive but not as compelling as BolsaMex
• We upgrade BSE to a neutral rating from sell despite it trading on rich fundamental valuations; India’s strong IPO pipeline is one major factor in de-railing our sell recommendation

• We forecast 7 stocks moving from MidCap to LargeCap, 10 stocks moving from LargeCap to MidCap, 3 stocks from SmallCap to MidCap, and 11 stocks from MidCap to SmallCap.
• From the new listings, 13 stocks are expected to be added to Large Cap, 5 stocks are expected to be added to Mid Cap, and multiple stocks to Small Cap.
• With the review period nearing completion, there could still be more outperformance given the momentum, but we would look to take profit on the stocks as the divergence gets wider.

• Sify Infinit Spaces Ltd (2026850D IN) is looking to raise US$484m in its upcoming India IPO.
• Sify Infinit Spaces Ltd is a provider of data center colocation services in India.
• In this note, we look at the company’s past performance.

Halyk Bank today announced the launch of a fully marketed offering and bookbuilding process for international and domestic investors for at least 12m global depository receipts (GDRs), representing c 4% of Halyk’s outstanding common shares. The GDRs are offered for sale by Halyk’s majority shareholder (ALMEX Holding Group), which currently holds a 69.5% stake (the remaining 30.5% is considered free float). Therefore, Halyk will not issue any new shares nor raise fresh capital in the process. The announcement follows an earlier declaration by ALMEX that, following feedback received from the investment community, it is evaluating ways to improve the liquidity of Halyk’s shares and GDRs, including a potential partial sale of its stake. The offering should also help diversify Halyk’s shareholder base. ALMEX will retain a majority stake in Halyk and remain fully committed to the bank’s long-term success.

• Top Pick Among GEM Exchanges with Deep Value: Bolsa Mexicana de Valores (BMV) stands out as a premier investment choice among emerging market exchanges, primarily due to its attractive valuation and significant growth potential in post-trade revenues. The company’s integrated business model, encompassing trading, clearing, settlement, and data services, provides a resilient and diversified revenue base.
• Dominant Market Position Facing New Competition: As Mexico’s long-standing primary exchange, BMV enjoys a deeply entrenched market position. However, the emergence of the Bolsa Institucional de Valores (BIVA) in 2018 has introduced competition, creating a new dynamic in the Mexican capital markets landscape that requires strategic adaptation.
• Macroeconomic and Political Headwinds: The company’s performance is intrinsically linked to the health of the Mexican economy and investor sentiment, which faces uncertainty from domestic political reforms, potential US tariff policies, and global market volatility. These factors represent the most significant risks to the company’s near-term growth and profitability.

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• Strong Financial Performance and Growth: UBL has demonstrated a robust growth trajectory with significant year-over-year increases in revenue and net income, driven by a high-interest-rate environment and expansion in its investment portfolio. The bank’s profitability is expected to remain strong, supported by a large deposit base and unrealized gains on government securities.
• Digital Transformation Leader: The bank is a recognized leader in digital banking in Pakistan, with a continuously growing base of digitally registered customers. This focus on technology provides a competitive edge, enhances operational efficiency, and positions UBL to capitalize on the growing trend of financial inclusion and digital adoption in the country.
• Significant Macroeconomic and Regulatory Risks: UBL operates in a challenging environment characterized by Pakistan’s economic and political instability. Key risks include high inflation, potential currency devaluation, and evolving regulatory changes from the State Bank of Pakistan, which could impact profitability and operational stability.

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• CPKF’s results were impressive.
• Third quarter net earnings increased $1.9 million, or 74%, to $5.2 million year over year, while 2025’s third quarter diluted EPS rose $0.41, or 74%, to $0.96, excluding a $0.3 million one-time aftertax gain, or $0.07 per diluted share, on the sale of a building, but including a $0.7 million aftertax gain, or $0.16 per diluted share, from adjustments on SBIC fund investments.
• We note the SBIC gains are a recurring item, though typically not as large as occurred in 2025’s third quarter.

• As the UK’s largest listed residential landlord, Grainger is well-positioned to capitalize on the structural undersupply of rental housing and growing demand, particularly in the build-to-rent (BTR) sector.
• The company’s integrated business model of originating, investing, and operating provides a competitive advantage, enabling control over asset quality and operational efficiencies, which should support long-term rental and net asset value growth.
• Despite a challenging macroeconomic environment with higher interest rates and inflation, Grainger’s focus on mid-market rentals and a strong development pipeline are expected to drive future earnings and dividend growth, though recent net income has been volatile due to valuation movements.

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