Daily Brief Financials: Aditya Birla Capital Ltd, HDFC Bank, KakaoBank , Wealthfront Corporation, Mercia Asset Management, Nexi SpA, Realgate , Target Healthcare REIT PLC, Central Reinsurance and more

• There could be 19 constituent changes for the Nifty200 Momentum 30 Index that will be implemented at the close on 30 December.
• If all changes are on expected lines, one-way turnover is estimated at 64.2% and that will result in a round-trip trade of INR 163bn (US$1.8bn).
• The adds have outperformed the deletes in the short-term. With the index based on momentum, there could be further gains over the next couple of weeks.

• Brian Freitas has discussed in a recent insight the methodology changes for the NSE Nifty Bank Index that will be implemented starting from December 30.
• HDFC Bank (HDFCB IN) is one of the two stocks that passive trackers need to sell (the other is ICICI Bank Ltd).
• HDFC Bank (HDFCB IN) is falling this week, so we analyze our model’s WEEKLY support entry zones, to evaluate how much HDFC Bank can fall, for hedging or re-entry purpose. 

• KakaoBank is a dominant digital-only bank in South Korea, leveraging the vast user base of the KakaoTalk messenger platform to achieve significant market penetration and rapid growth. Its branchless model provides a structural cost advantage over traditional incumbents.
• The bank is pursuing an aggressive growth strategy focused on expanding its customer base to 30 million and total assets to KRW 100 trillion by 2027. Key initiatives include diversifying into new loan products, enhancing platform services (e.g., advertising, loan comparison), and expanding internationally into markets like Indonesia and Thailand.
• While growth has been robust, the company faces significant risks from intense competition from other digital banks (K-Bank, Toss Bank) and traditional banks’ digital offerings. Furthermore, regulatory uncertainty, particularly concerning its largest shareholder, Kakao Corp., and potential government measures to manage household debt, presents a material headwind.

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• Wealthfront targets digital-native high earners, with 1.3 million funded clients and $88.2 billion in platform assets, driving strong client retention and organic growth.
• The IPO offers 34.6 million shares at $12–$14, raising $255.2 million, with proceeds supporting working capital, debt repayment, and potential acquisitions.
• The company demonstrates robust financial performance: 26% year-over-year revenue growth, 36% net income margins, and a proven product-led growth strategy supported by strong client engagement.

• H1-26 (to 30 Sep 25) saw EBITDA jump 14% y-o-y to £4.2m and EBITDA margin up from 20.8% to 24.6%.
• Impressively, this was achieved in a muted period for portfolio activity, with revenue slightly down from £17.6m to £17.2m.
• AUM was marginally up at £2.0bn.

• Our key picks for 1H 2026 are driven by fundamental valuations, margin and growth prospects; top of our buy list is Nexi, with PagSeguro in second place
• Our key sell is Affirm; the increasingly competitive BNPL market is a potential “banana skin” for its premium growth forecasts, coupled with potentially worsening consumer credit delinquency
• Klarna is one to watch in 1H 2026, but it is not there yet; the share price’s underwhelming performance post-IPO reflects the competitive BNPL market, especially in the US

Key points (machine generated)

• Realgate, listed on the Tokyo Stock Exchange under code 5532, reported an operating profit over 1 billion yen for the fiscal year ending September 2025.
• Founded in 2009 and led by President Yutaka Iwamoto, Realgate focuses on revitalizing old buildings in urban areas into flexible workspaces.
• The company has shown consistent revenue growth for 16 periods and became a consolidated subsidiary of CyberAgent in July 2021, leading to its listing in June 2023.

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Target Healthcare REIT has acquired three operational care homes and one new development for a total of £45m, deploying more than half the proceeds of its recent nine-home portfolio disposal. The high-quality homes, let to a strong new but established tenant, have been acquired at an accretive blended net initial yield of more than 6%. With significant remaining available capital, and a strong pipeline of similarly attractive opportunities, we expect acquisitions, in combination with indexed rent reviews, to drive continuing earnings and DPS growth.

• Dominant Market Position with a Wide Moat: As the sole domestic reinsurance company in Taiwan, Central Reinsurance holds a significant competitive advantage, benefiting from strong relationships with local clients and a deep understanding of the domestic market.
• Strong Financial Performance and Shareholder Returns: The company has demonstrated robust growth in net income and has a track record of attractive dividend payouts, underscored by a very strong capital and earnings position.
• Exposure to Catastrophe Risk and Geographic Concentration: The company’s earnings are inherently volatile due to its exposure to natural catastrophes, particularly earthquakes and typhoons in its geographically concentrated Taiwanese market.

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