Daily Brief Financials: Bank Jago Tbk PT, Gunma Bank, Wanda Hotel Development, SAMHI Hotels , HSBC Holdings, Jafco Co Ltd, Kobo Resources , Utilico Emerging Markets Ltd, Blackrock Inc and more

• There is 1 constituent change for the IDX30 Index and 2 changes for the IDX80 Index to be implemented at the close on 30 April.
• The largest passive flows are expected in Bank Rakyat Indonesia, Bank Jago Tbk PT, Bank Mandiri Persero, Bank Tabungan Negara Persero, Adaro Energy and Bukalapak.com PT Tbk.
• There are only 4 days to implementation, so there could be relatively big moves on the changes to the IDX30 Index.

• Gunma Bank (8334 JP) and Daishi Hokuetsu Financial Group (7327 JP)/DHFG have announced an MoU to establish one of the largest regional banks in Japan by 1 April 2027.
• The transaction involves delisting Gunma through a share exchange with DHFG. A definitive agreement is expected around March 2026. 
• The plan is long-dated. The lack of a controlling shareholder necessitates a “fair” exchange ratio. My estimated Gunma/DHFG exchange ratio range is 0.38-0.39x.

• Wanda Hotel Development (169 HK), 65.05% held by Wang Jianlin, is selling its hotel property arm to Tencent (700 HK) and Trip.com (9961 HK)-backed Tongcheng Travel Holdings (780 HK).
• Wang Jianlin’s cash-strapped Dalian Wanda Group has been offloading assets such as the $8.3bn sale of its mall management business to a PAG-led consortium in March last year.
• Wanda Hotel proposes distributing all or part of the proceeds from the sale. Given Wang’s controlling shareholding, I’d tilt towards the former.

• SAMHI Hotels (SAMHI IN) has entered into a strategic partnership with GIC, a global institutional investor, to establish a joint venture platform for upscale and higher hotel assets in India.
• This transaction will significantly reduce SAMHI’s debt, enhance its financial flexibility, and provide access to up to $300 million in future capital for further expansion in high-demand upscale hotel sector.
• The partnership with GIC strengthens SAMHI’s growth outlook, boosts profitability through debt reduction, and positions the company to capitalize on the rapidly expanding upscale hospitality market in India.

• HSBC has rallied 19.8% from the April low and is up > 13% year-to-date. Against this backdrop we analyze implied vol, implied jump and post-earning price patterns. 
• Q1 is typically HSBC’s least volatile earnings quarter, with most moves falling short of current jump expectations.
• We suggest a short-vega hedge structure that benefits from elevated implied vol.

• Revenue increased by 21.4% YoY to JPY29.7bn, with operating profit rising 53.1% YoY to JPY12.5bn.
• Capital gains reached JPY12.7bn, a 60.0% YoY increase, driven by IPO-related share sales and unlisted shares.
• Total assets under management stood at JPY458.4bn, with JPY198.5bn subject to management fees as of end-March 2025.

• What you need to know: • Kobo announced the commencement of its 2025 diamond drill program at its 100% owned Kossou Gold Project in Côte d’Ivoire.
• • The 2025 program will consist of between 20,000-30,000m of diamond drilling, the largest program on the project since initial discovery.
• • Kobo is a gold exploration company with a focus in Côte d’Ivoire, a country getting increasing attention from the mid-tier and major firms.

Utilico Emerging Markets Trusts (UEM) now has two portfolio managers: Charles Jillings (since launch) and Jacqueline Broers (former deputy manager) following her promotion at the beginning of 2025. They are both highly impressed with the quality of the trust’s portfolio companies and their management teams. However, the managers consider it wise to take a cautiously optimistic shorter-term view given the risks to global growth from US President Trump’s trade policies. In an uncertain macroeconomic environment, UEM looks relatively well positioned given its focus on high-quality, cash-generative utility and infrastructure assets. The favourable prospects for emerging markets remain intact with above-average growth potential and equity valuations that are at a substantial discount to those in developed markets. UEM has a long-term record of outperformance versus the MSCI Emerging Markets Index, which is used as a reference and, since inception in 2005 until the end of March 2025, the trust’s NAV total return has compounded at 8.8% per year.

• Lone Star acquires Yokohama apartment block from Mapletree for hotel project, expanding their investment portfolio in the real estate sector.
• Former executives from BlackRock and CapitaLand, including Simon Treacy, are taking on leadership roles in the energy startup PolarBlue.
• It is important to stay positive and keep moving forward in the face of challenges, as success is attainable with perseverance and determination.