Financials

• Swire Pacific (A) (19 HK) is proposing the spin-off and separate listing on the SET of non-wholly-owned ThaiNamthip Corporation Limited, a Coca-Cola franchise operator in Thailand, Cambodia and Laos.
• On the 30th September, Swire completed the 55.7% acquisition for THB42,615.7mn (HK$9,470.1mn). ThaiNamthip concurrently sought to acquire a 30% stake in Swire Coca-Cola’s operations in Vietnam and Cambodia for HK$2,114.6mn.
• At the time of the acquisition, ThaiNamthip had an extrapolative price tag of ~HK$17bn. Should the proposed spin-off complete, ThaiNamthip will remain a non-wholly owned subsidiary of Swire.

• Star Holdings (STHO) is structured as a liquidation vehicle, aiming to sell real estate and wind up operations by Q1 2027.
• STHO’s assets include $216m in SAFE shares and a monetizing portfolio with loans, land, and other properties.
• Management extended debt maturity to March 2028, and adjusted management fees, with liquidation incentives tied to asset sales.

• Niva Bupa Health Insurance (1226871D IN) (Niva Bupa) raised around US$260m in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
• Niva Bupa is a health insurance firm. Its portfolio consists of health (including retail and group), personal accident, and travel insurance.
• In this note, we will talk about the lockup dynamics, possible placement and updates since our last note.

• BoJ’s lower GDP growth forecasts add weight to the rate hike deferral; we focus on big-cap banks that have more in the tank than high gearing to rising benchmark rates
• An increasingly important factor, in our view, is the share of strategic equity holdings relative to market capitalization; Kyoto is top on this metric, followed by Shizuoka, Resona and Mizuho
• With the lack of the rate hike catalyst in the near term, we remove SMFG from the buy list and would look to lighten holdings selectively in other Japanese banks

• AUM decreased to JPY1.3tn (-6.8% YoY, -6.5% QoQ), while operating revenue rose to JPY11.4bn (+10.8% YoY).
• Operating expenses and G&A expenses increased to JPY9.4bn (+9.7% YoY), resulting in an operating profit of JPY2.1bn (+16.2% YoY).
• The company plans an annual dividend of JPY6.8 per share post an 8-for-1 stock split.

• Strategic planning and collaboration can create a win-win situation for both investors and occupants in real estate ventures.
• Scape has secured a significant commitment of $3.8 billion from CBRE IM for their student housing fund.
• Companies like Greystar, Warburg, Local, and Kio are sharing Australian living insights at a forum in Singapore.

• Institutional adoption accelerates with Deutsche Bank, UBS PoC, WonderFi, and Tradable building compliant solutions on ZKsyn9
• ZKsync is the second-largest blockchain for tokenized RWAs, capturing over 27% market share, trailing only Ethereum
• ZKsync Era dominates ZK rollups, leading in TVS, proof volume, and user activity

• Geely Auto (175 HK), China’s second-largest carmaker, has made an non-binding proposal for 65.7%-held Zeekr (ZK US), a premium Chinese electric vehicle manufacturer. 
• Geely is offering US$25.66/ADS, a paltry 13.6% premium. Or 12.3 newly issued shares. The Offer appears opportunistic after Zeekr’s 20% decline YTD (pre-Offer) in response to Trump tariffs.
• Should a definitive agreement be inked, this is done. The risk to the trade, as with many US-listed China plays, is timing. Trading tight at a 1.9% gross spread.

• With the review period complete, there could be two changes for the S&P BSE SENSEX Index (SENSEX INDEX) at the June rebalance.
• Trent Ltd (TRENT IN) and Bharat Electronics (BHE IN) are high probability inclusions while Indusind Bank (IIB IN) and Nestle India (NEST IN) are high probability deletions.
• Indusind Bank (IIB IN) is also a potential NIFTY Index (NIFTY INDEX) deletion in September and there will be continued pressure on the stock.

• Canara HSBC Life Insurance (2908709Z IJ) is looking to raise about US$354m in its upcoming India IPO with bookrunners HSBC, JM Fin, Motilal, BNP Paribas and SBI Caps.
• Canara HSBC Life Insurance is a private life insurer in India and promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited, a member of the HSBC group.
• According to CRISIL, it was ranked second amongst public sector bank-led life insurers in India based on the number of lives covered for FY24.

• LIFENET is a pure-play online life insurance company with a solid track record, revamping its strategy to revitalize growth.
• The company has initiated a three-pronged strategy, encompassing tech & services, rebranding, and an ‘embedded’ strategy to integrate life insurance products seamlessly into partner digital ecosystems with engaged customers.
• Key partnerships with KDDI Group (9433) and SMBC Group provide a competitive advantage, and the group credit life insurance offered to mortgage customers of au Jibun Bank, KDDI Group’s online banking subsidiary, has the hallmarks of a new earnings pillar. 

• American Airlines Group recently reported its first quarter 2025 financial results amid challenging economic conditions which affected the overall industry demand.
• Throughout the conference call, management conveyed both challenges faced and strategic initiatives undertaken to navigate the difficult environment.
• The company reported a first-quarter GAAP net loss of $473 million, or an adjusted loss of $386 million excluding special items, marking a noteworthy setback.

• The Company posted muted revenue growth in Q1 2025, though margins showed improvement both YOY and sequentially.
• Block trades at a discount to peers with a P/E of 11.3x vs. peer average of 26.4x. However, its TTM EBITDA margins (13.1%) are lower than the peer group average.
• The guidance suggest focus on improving profitability as evident by improving margin outlook.

• AI-Powered strategy that shorts high-risk US companies and longs the S&P 500 outperformed the index by 2.5x since July 2021.
• Short position targets identified by the Transparently Risk Engine, a tool that assesses listed companies’ accounting quality.
• Strategy provided better Sharpe ratio, lower maximum drawdown, and negative beta, offering risk-adjusted gains and potential hedge benefits.

• Frasers REIT plans to sell a Melbourne office tower for $129M to an Australian tycoon, indicating a significant transaction in the real estate market.
• Industry leaders from Hilton, KKR, CREAL, and Pegasus are convening in Singapore to discuss strategies for the hospitality sector at a forum.
• Norges has appointed Alexander Knapp as the new Global Real Estate Head and Jason Leong as the new leader of Asia Fund following van den Berg’s departure.

• The report by Delphi Consulting presents USD.AI, a DeFi-based solution to fund AI and decentralized infrastructure by enabling short-term loans backed by real-world hardware.
• It introduces USDai, a synthetic dollar backed by collateralized hardware assets, offering scalable capital access through on-chain mechanisms.
• Legal enforceability is ensured via tokenized ownership under UCC laws, while risks are mitigated through conservative lending terms, insurance, and governance oversight.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: International Container, Pakuwon Jati
• In the US, the April ISM services index unexpectedly rose to 51.6 (50.2 e / 50.8 p). The new orders component expanded to 52.3 (50.3 e / 50.4 p), while employment increased to 49.0 (47.1 e / 46.2 p).
• The prices paid component jumped to 65.1 (61.4 e / 60.9 p), the highest level since 2022. Separately, the April (final) S&P services PMI declined to 50.8 (51.2 e / 54.4 p), below the preliminary reading of 51.4. The composite PMI fell to 50.6 (53.5 p).

• Revenue increased to JPY312.2bn (+1.2% YoY), with gross profit at JPY48.5bn (+6.5% YoY) and operating profit at JPY21.7bn (+3.4% YoY).
• Contract execution volume rose significantly in logistics facilities, with revenue at JPY9.9bn (+65.0% YoY) and operating profit at JPY2.1bn (+84.4% YoY).
• For FY03/26, the company forecasts revenue of JPY320.0bn (+2.5% YoY) and a dividend per share increase to JPY185.0.

• The last couple of days have seen the TWD increase value against the USD extremely sharply. This has caused the Shin Kong/Taishin risk arb spread to widen. 
• There is no expectation that the merger will be delayed, but the change in USDTWD rate introduces a new dynamic into the ShinKong-as-Taishin-vs Peers trade.
• Careful consideration of this trade going forward is worthwhile. What may have been the better trade may no longer be the better trade.

• Following an extended holiday beginning May 1st, the CSI 300 Index (SHSZ300 INDEX) resumes trading on May 6th.
• The WEEKLY close before the holiday—during a shortened trading week—was modestly negative. However, the index would need to decline to 3697 or lower to trigger a buy-the-dip opportunity.
• Since the index has already closed 1 week down, our time model suggests there is a good chance (62%) it could go up this week.

• Bright Smart Securities (1428 HK) will benefit from Ant Financial’s technology innovation capabilities, customer group, digitalisation, and cross-selling to over 640m of Alipay users.
• With Futu Holdings Ltd (FUTU US) having an average PER of 19x for 2020-2025, we use 15x for BSS after a conservative estimate of 50% earnings growth in 5 years. 
• We value BSS at HK$8.13, but this is a conservative estimate. Its earnings growth is likely to be faster than our forecast, given its better leverage on the new parent.  

• As HIT continues to expand services and enhance its platform, the company aims to broaden its target market, as it believes that organizations of all sizes can benefit from its AI-driven technology platform, which is designed to streamline and facilitate the process of researching and obtaining healthcare insurance.
• HIT began development of a large-group third-party AI-powered underwriting solutions for mid-sized and larger businesses and, in 1Q25, delivered solutions to large employers, including one that employs 1k+ people.

• To broaden its TAM, HIT began beta testing a large-group 3rd-party AI-powered underwriting platform in 4Q24 & is optimistic about its prospects, based on interest generated to-date.
• In 1Q25, the company delivered solutions to large employers, including one with 1k+ employees.
• HIT believes the infrastructure it has established position it for strong growth, as it broadens its TAM and expands its offerings, often via collaborations such as one formed recently with DialCare to integrate DialCare’s virtual primary care, therapy, and psychiatry services into Health In Tech’s self-funded health plan offerings.

• According to our sources,  the deal is oversubscribed with a good amount of accounts still to hear from.
• Management has strong numbers as of year-end 2024 and have gained even more momentum in Q1 2025. 
• While smaller in size, this company has a sustainable expansion plan and a profitable balance sheet with a tailwind from a growing Florida market.

• According to guidance that the deal is multiple-times oversubscribed with high-quality 1-on-1 conversions.
• Aspen is selling itself at or slightly below the $30.73 per share book value of comps.
• Apollo Global has done a fair job of cleaning up Aspen and making it increasingly more profitable while reducing exposure to reinsurance and property in vulnerable areas.

• CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500 names.
• In this insight, we have presented our final expectations for ADDs and DELs for the upcoming semiannual index rebal event in June 2025.
• We expect 6 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index during this index review based on the latest available data.

• S&P Global (SPGI) announced on April 29, 2025, its intention to spin off its Mobility division into a standalone publicly traded company.

• This strategic move aims to streamline operations and allow S&P Global to concentrate on its core businesses: Market Intelligence, Ratings, Commodity Insights, and Dow Jones Indices.

• The Mobility division, which provides data and analytics to the automotive industry, generated $1.6 billion in revenue in fiscal year 2024, marking an 8% year-over-year increase.

• We remain near-term bullish since our 4/22/25 Compass when we discussed SPX 5110-5120 as a bounce spot and a level to trade [long] against.
• Possible that major lows are in at 4800-4820 SPX and $402-$412 on the Nasdaq 100 (QQQ), as discussed in 4/10/25 Int’l Compass. For now we want to remain near-term bullish
• 200-Day MAs on ACWI-US and SPX are spots where they could roll over. This is just a lean; if we see no reason to sell at those levels, we won’t.

• Aside from Trump’s tariff policies, Mexican banks are under pressure from government to deliver on more competitive lending rates, with fintech challengers Nubank and MercadoLibre’s MercadoPago gaining traction in Mexico
• Despite these challenges, 1Q25 results were sound and the bank sector participated in Mexican bolsa rally in April; yet we believe there is selective attractive value there
• We apply our scorecard – which assesses balance sheet strength, returns, credit quality and valuations – that is weighted to arrive at our investment picks; BanBajio and BanRegio stand out

• Institutions net sold S$73M in Singapore stocks, with STI Banks experiencing S$701M in net institutional outflow in April.
• Singtel recorded the highest net institutional inflow, with the Telecommunications Sector booking S$522M net inflow in April.
• REITs saw S$74M net institutional outflow, but Frasers Centrepoint Trust led net inflow relative to market cap.

• As HIT continues to expand services and enhance its platform, the company aims to broaden its target market, as it believes that organizations of all sizes can benefit from its AI-driven technology platform, which is designed to streamline and facilitate the process of researching and obtaining healthcare insurance.
• HIT began development of a large-group third-party AI-powered underwriting solutions for mid-sized and larger businesses and, in 1Q25, delivered solutions to large employers, including one that employs 1k+ people.

• What you need to know: • The metals and mining market showed a fourth straight month of strong gains in April on the back of the escalating trade tensions.
• • In April, gold was up 5.6%, silver was down 4.2%, and copper was down 9.6%.
• The equities outperformed the commodities, with the GDX up 6.5%, GDXJ up 7.3%, and SIL up 3.3%.

• CNMC approved BBVA’s bid with mild SME lending and branch access commitments. The offer now enters Phase 3, with government review and CNMV filing expected by late Q2 2025.
• Sabadell shares trade 6.7% above the offer value, suggesting market expectation of an improved bid or deal failure. The gross spread is negative despite regulatory momentum.
• BBVA’s CET1 would drop to 11.99% under current terms. It can raise the cash offer by €0.12–0.17/share and still stay above 11.5%, allowing room to improve the deal.

• Revenue for FY09/25 was JPY9.0bn, a 3.0% YoY decline, with operating profit at JPY2.4bn, down 34.2%.
• Cost of revenue increased 14.2% YoY to JPY3.7bn, driven by higher personnel and referral fees.
• Dividend payout ratio target increased to 50%, with annual dividend forecast raised to JPY180.0 per share.

• Consolidated ordinary income decreased by 1.4% YoY to JPY89.6bn, while gross profit increased by 39.3% YoY.
• Hokkoku Bank’s core operating profit rose 87.8% YoY, driven by increased net interest income and operating income.
• For FY03/26, the company forecasts a 46.4% YoY increase in consolidated ordinary profit to JPY18.0bn.

• Q1 revenue increased 22.3% YoY, driven by a 19.5% rise in Operating Lease business revenue, reaching JPY11.0bn.
• Operating profit margin rose 9.9pp to 63.3% in Q1, despite foreign exchange losses of JPY448mn.
• Total value of operating lease deals arranged in Q1 was JPY79.3bn, with significant growth in vessel arrangements.

• SES AI, a leader in AI-powered battery research, released the first version of Molecular Universe MU- 0 on April 29.
• The live demo explained MU-0’s features and pricing structures. Molecular Universe is for mass- produced material discovery and development services, SES AI’s largest and most profitable revenue component.
• The company expects the platform to deliver commercially practical winning solutions that help users compete.

• Soundwill Holdings (878 HK)’s IFA opines that the Foo family’s HK$8.50 offer is fair and reasonable. The vote is on 23 May. 
• Key conditions include approval by at least 75% of independent shareholders (<10% of independent shareholders’ rejection) and a headcount test. No shareholder holds a blocking stake. 
• The offer is attractive compared to historical trading ranges. The vote risk is low. At the current price and for a June 11 payment, the gross/annualised spread is 4.3%/44.0%. 

• Aviva’s (AV/ LN) £3.7B acquisition of Direct Line Insurance Group Pl (DLG LN) combines two major insurers, with £125M in expected annual synergies by year three.
• Direct Line Insurance Group Pl (DLG LN) shareholders to receive 0.2867 new Aviva (AV/ LN) shares, 129.7p in cash, and up to 5p in pre-completion dividends per share held.
• The acquisition is expected to impact major UK and European indices on an intra-quarter basis.

• Indusind Bank (IIB IN) , one of India’s prominent private-sector banks, recently disclosed a significant accounting discrepancy related to its derivatives portfolio.
• The estimated adverse impact of these lapses is INR 1,959 crore (~2.27% of the bank’s net worth), which will be accounted for in Q4FY25, likely resulting in a net loss.
• The resignations of the CEO and Deputy CEO raise concerns on potential unidentified issues, including regulatory scrutiny, other accounting lapses and potential slowdown in business post top management rejig.

• Japanese pet insurance company with 40-50% market share thanks to its OTC settlement system and a network of pet shop/veterinary clinic partners
• The stock trades at around 13x current-year earnings, a modest multiple given the secular growth that’s ahead of it. The pet/human population ratio is low. Pet insurance is still unusual.
• Well-Regarded investor Hikari Tsushin just took a 5.2% position in the company, highlighting the value in the company at the current 1.5x book. 

Molten’s FY25 trading update (to end-March 2025) showed a positive uptick in portfolio valuations in the second half of the company’s financial year, resulting in a c 4% increase in NAV per share to 671p in H225, and in turn a marginally positive NAV per share total return for FY25 of 1.4%. Molten delivered a strong level of realisation proceeds in FY25 of c £135m (above original management guidance of £100m) and has seen continued traction in recent months with further expected proceeds of £30m (despite the overall soft European VC exit market in Q125), supporting its share buybacks. Molten’s cash balance at end-March 2025 stood at £89m (which further improved to £110m as of 23 April 2025 following the receipt of Freetrade proceeds). Together with its undrawn revolving credit facility of up to £60m and limited near-term funding requirement across its portfolio for FY25 (up to £20m according to management’s previous statements), this provides it with a good balance sheet position for new and follow-on investments (Molten invested £73m in FY25).

• Revenue reached JPY11.5bn, a 58.2% YoY increase, with a progress rate of 48.5% against the full-year target.
• Operating profit increased by 154.3% YoY to JPY4.2bn, with a progress rate of 52.3% versus the full-year forecast.
• Net income attributable to owners rose 158.5% YoY to JPY2.9bn, with a progress rate of 52.4% against forecasts.

• Net operating revenue was JPY8.8bn, a decrease of 11.4% YoY and 1.6% QoQ, with operating profit at JPY3.2bn.
• Total commissions were JPY4.8bn, down 23.8% YoY but up 3.6% QoQ; brokerage commissions were JPY4.5bn.
• SG&A expenses totaled JPY5.7bn, increasing 1.1% YoY and 5.2% QoQ, with transaction-related expenses at JPY1.9bn.

Record has reported robust assets under management (AUM) for Q425. Against a background of increased volatility in currency markets, the company’s core risk management services continue to demonstrate their value to both existing and potential clients, while providing opportunities in asset management products. An additional £0.3m of performance fees in the quarter has taken the FY25 total to £3.2m and we have slightly lifted our FY25 earnings forecast. FY25 results will be reported on 20 June.

• Self-Storage segment revenue was JPY7.5bn (+9.3% YoY), with a gross profit of JPY2.5bn (+4.9% YoY).
• Land Rights Consolidation segment revenue declined to JPY777mn (-42.3% YoY) due to business scaling down policy.
• Asset management and rental office segment revenue increased to JPY388mn (+4.4% YoY), with stable occupancy rates.

• On the 7th March, small-cap property developer Soundwill (878 HK) announced an Offer from Grace Foo (ED) and her family, controlling 74.97% of shares out, by way of a Scheme.
• The Offer Price of  $8.50/share, including a $1.00/share dividend, was a 62.84% premium to undisturbed. But a 87.66% discount to the (then) most recent NAV. Terms were final.
• The Scheme Doc is now out, with a Court Meeting on the 23rd May, and payment on or before the 11th June. The IFA (Altus Capital) says “fair & reasonable”.

• Consistent declines in fund ownership in ICBC finally hit a floor.
• Over the past six-months, 8 new positions — led by Goldman Sachs and Heptagon — have outpaced 3 closures, with 29 buyers versus 18 sellers.
• ICBC is the 6th most widely owned stock in the China & HK Financials sector, ahead of Bank Of China Ltd but behind China Merchants and China Construction Bank.

• Link has appointed a former Nuveen executive to lead its expansion into Japan, signaling the company’s commitment to growing its presence in the region.
• Amara Chairman is spearheading a $392 million bid to privatize a Singapore hotel group, demonstrating a growing trend of investments in the hospitality industry.
• ANREV reports a significant decline of over 50% in global real estate capital raising from its peak in 2022, highlighting challenges in the current market environment.

• Mediobanca’s €6.3bn all-share offer for Banca Generali transforms its strategic profile, shifting focus to wealth management while creating a strong industrial partnership with Generali through a stake divestment.
• The deal offers a 4.6% gross spread and an estimated 9.4% annualized return over a six-month timeline, underpinned by €660 million synergies that exceed the acquisition premium.
• Shareholder approval remains uncertain due to opposition from major investors Delfin and Caltagirone, making institutional support critical as Mediobanca fends off BMPS’s competing, state-aligned hostile bid.

• A total of 11.0mm shares are being offered with the entirety being offloaded by the sponsor, Apollo Global Securities.
• This company was acquired by private-equity titan Apollo Global in a transaction announced in August 2018 and closing in February 2019.
• For the three months ended March 31, 2025, Aspen Insurance had gross written premiums of $1.287b vs. $1.231b in the same period in 2024 for an increase of 4.5%.

• American Integrity Insurance Group (AII US) was one of two insurance companies to set terms for an IPO on Tuesday morning for a debut next week.
• Gross premiums written increased 43.9% to $212.2 million for the three months ended March 31, 2025, compared to $147.5 million for the three months ended March 31, 2024. 
• The underwriting lineup on this sector, led by Keefe Bruyette & Woods, has a strong track record of pricing and placing transactions in this sector.

• SES AI, a leader in AI-powered battery research, announced its 1Q25 revenue came in at the high end of its preannounced range at $5.8 million.
• SES AI’s gross margin for 1Q25 came in at 79%, with the company guiding to long-term gross margins in the 60% range as manufacturing, software licenses, and services mix stabilize. The company also reiterated 2025 revenue guidance of $15-25 million.
• SES AI’s announcement of a $30 million share buyback was accompanied by expectations of more than $200 million liquidity at the end of 2025. 

• Back on 27th March, the family trust of the Widjaja Family made a voluntary unconditional general Offer for the 29.7% in Sinarmas Land (SML SP) not held.
• Pricing was uninspiring: the S$0.31 cash Offer (not final) for the (mainly) Indo property play was a 12.9% premium to undisturbed; and a 73.9% discount to the 1H24 S$1.19/share NAV.
• The IFA agreed and said “Not Fair but Reasonable”, with an estimated fair value range of S$0.350 to S$0.361/share. This (still) needs a bump. But that is looking less likely.

• Bank Central Asia booked a strong set of numbers in 1Q2025, driven by strong loan growth and healthy growth in CASA and despite an increase in provisions. 
• The bank booked loan growth across its key segments, with corporate, SME, and consumer lending driving growth, with its transactional banking continuing to grow as it expands its customer base.
• Bank Central Asia‘s digital offerings continue to be a core driver for both business and consumer banking, as well as for onboarding new customers. Valuations are attractive versus history. 

• CARE Ratings has emerged stronger post-IL&FS through board reconstitution, governance reforms, and renewed focus on ESG-linked services.
• With India’s credit market entering a capex-led upcycle and ESG regulations tightening, CRAs like CARE are structurally well-placed to benefit.
• Despite lagging CRISIL and ICRA in tech-enabled analytics, CARE’s high share of rating revenue (~90%) and clean balance sheet provide room for re-rating, supported by industry tailwinds.

• Aspen Insurance Holdings filed for its IPO in December 2023 and saw its filing refreshed in December 2024 and once again on March 20th, 2025.
• This company was acquired by private-equity titan Apollo Global in a transaction announced in August 2018 and closing in February 2019. 
• For the twelve months ended December 31, 2024, they wrote $4,609 million in gross written premiums marking a 16.2% increase from the same period in 2023. 

• IVs rise as markets return from holiday-truncated week, moving from 14.2% to 15.8%. Monthly contracts benefit most as they capture multiple tier-1 event risks.
• “High & Up” vol-state persists. Though there is a high probability of switching to “High & Down” with slight IV stabilization.
• TACTICAL IMPLICATIONS: Avoid negative Gamma/ Smile/ Vega exposure. Wait for vol-regime shift before initiating new risk-premia harvesting structures

• In 1H FY09/25, revenues increased by 25.2% YoY, while operating profit decreased by 3.6% YoY.
• The Leasing Fund Business saw a 7.1% YoY revenue decline, with a segment profit margin decrease of 5.3pp YoY.
• The International Real Estate Fund Business achieved a 134.6% YoY revenue increase, with a gross profit margin rise of 6.5pp YoY.