In today’s briefing:
- ESR (1821 HK) Chips Away At Pre-Cons
- Asia Real Estate Tracker (11-Mar-2025): Singapore buying Sydney office for $70M.
- Goldlion Holdings (533 HK) Privatization – The Offer Price Is Acceptable
- RERE: 4Q24 Earnings – EPS as Expected Investing for Growth to Keep Pace with Accelerating Demand
- QuantaSing Group Limited: EPS Beat on Higher Revenues/Operating Income
- Lucror Analytics – Morning Views Asia
ESR (1821 HK) Chips Away At Pre-Cons
- When the Starwood/Warburg Pincus Consortium announced a firm offer on the 4th December, it was pre-conditional on a raft of regulatory approvals from no less than eight countries/jurisdictions.
- We’re half way there, with four approvals now squared away, leaving Australia, China, Hong Kong and New Zealand still to give the go ahead.
- Irrevocables comprising 34.26% of the register (and 57.01% of disinterested shares) are now in the bag. This is a done deal. It’s just a question of timing.
Asia Real Estate Tracker (11-Mar-2025): Singapore buying Sydney office for $70M.
- Cambridge, a Singapore-based firm, purchases a Sydney office block for $70M from a former Tysan boss, expanding its real estate portfolio
- Hong Kong Land reports a significant increase in losses, totaling $1.4B, attributed to challenges within its Central Portfolio
- M&G Real Estate invests $62M in student housing in Melbourne, Australia, highlighting their focus on the Australian real estate market. Warburg Pincus forms a partnership with SK Group to develop Korean senior living facilities, tapping into the growing demand for elderly care in South Korea.
Goldlion Holdings (533 HK) Privatization – The Offer Price Is Acceptable
- In recent years, Goldlion is facing performance headwinds. Both revenue and net profit have shown a downward trend due to declining consumption, real estate crisis and unfavorable external factors.
- In short term, the weak consumer confidence and market momentum are unlikely to improve. Goldlion’s performance may gradually pick up in 2026 and 2027 but is still in downward trend.
- Considering the low trading liquidity, weak fundamentals, uncertainties on performance brought by Goldlion’s potential strategic transformation and the concerns on the outlook, we think the Cancellation Price is acceptable.
RERE: 4Q24 Earnings – EPS as Expected Investing for Growth to Keep Pace with Accelerating Demand
- Key 4Q24 takeaways include: 1) real-time step ups in trade-in activity and consumer demand for high-quality preowned products on the heels of recently introduced government subsidies and ongoing growth in the supply of new smartphone shipments continue to drive accelerating revenue growth 2) in response to building demand trends, management plans to continue to expand the company’s footprint (800 new store openings planned for this year), branding initiatives via new social media content/channels, and fulfillment capabilities and 3) while we assume adjusted operating income margins hold steady this year, our model calls for material margin expansion looking out to 2026, as revenue growth momentum continues to build and expense inflation moderates.
QuantaSing Group Limited: EPS Beat on Higher Revenues/Operating Income
- Key F2Q25 takeaways include: 1) senior executives remain focused on continually realigning/improving the online learning course catalog, and increasingly leveraging QSG’s existing online platform and customer base
- 2) steady cash flows from the legacy online learning services platform continue to fund the strategic transition, with a focus on higher-quality products/services geared toward the silver demographic
- 3) management continues to launch new health/wellness related products and services aimed at the silver demographic, while exploring opportunities across the consumer sector to enhance growth
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Yuexiu Property, Adani Energy Solutions
- In the US, treasuries climbed on safe-haven demand and increased expectations of Fed rate cuts, amid growing concerns over the US economy. The UST curve bull-steepened, with the yield on the 2Y UST declining 12 bps to 3.89%, while the yield on the 10Y UST fell 9 bps to 4.22%. Fed-dated OIS were pricing in 81 bps of rate cuts this year, with the first decrease expected in June.
- Equities sank on rising economic uncertainty, given rising trade tensions and after US President Donald Trump’s comments that the economy is facing a “period of transition” this year. The S&P 500 fell 2.7% to 5,615, while the Nasdaq slid 4.0% to 17,468.
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