Smartkarma Daily Briefs

• Melco Resorts and Entertainment’s Q4/24 results remained soft, owing to a decline in the EBITDA margin, and despite GGR outperforming that of peers.
• In addition, the company’s debt reduction and deleveraging continued to lag peers, as FCF generation was constrained by the soft earnings, ongoing share repurchases, as well as capex requirements (including for the development project in Sri Lanka).

• Japfa Comfeed has reported strong FY 2024 results, with profitability surging to the best levels for the past four years, driven by stable poultry prices.
• The company generated good FCF, which we note positively was mostly used for debt repayment.
• Leverage was halved on the back of lower debt and higher earnings.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Yanlord Land, Lenovo
• In the US, January personal spending unexpectedly declined 0.2% m-o-m (0.2% e / 0.8% revised p), driven by an outsized drop in motor vehicle purchases, as well as decreases in categories such as recreational goods amid the harsh winter weather. Meanwhile, personal income rose 0.9% m-o-m (0.4% e / 0.4% p).
• Separately, the PCE inflation data for January was in line with estimates, showing a slight deceleration on a y-o-y basis. The PCE price index rose 2.5% y-o-y (2.5% e / 2.6% p) and 0.3% m-o-m (0.3% e / 0.3% p) in January, while the core PCE price index (the Fed’s preferred measure of inflation) advanced 2.6% y-o-y (2.6% e / 2.9% revised p) and 0.3% mo-m (0.3% e / 0.2% p).

• New World Development’s (NWD) H1/24-25 results were weak.
• The company reported another large net loss of HKD 6.6 bn (after a HKD 19.7 bn loss in FY 2023-24), mainly driven by impairment losses.
• Moreover, the underlying business performance remained soft, as operating profit (excluding one-off items) fell 18% y-o-y.

Perusahaan Listrik Negara (PLN) is a vertically integrated state-owned electricity utility responsible for generating, transmitting and distributing power in Indonesia. The company dominates Indonesia’s upstream power generation sector, and holds a monopolistic position in the country’s electricity transmission and distribution networks. It is the sole retail provider of electricity to end-consumers. PLN is 100% owned by the Indonesian government.