Daily Brief Financials: BFI Finance Indonesia, Agile Property Holdings, Bajaj Finance Ltd, Kwg Property Holding, Bank of Kyoto, Krung Thai Bank Pub and more

• BFI Finance Indonesia continued to see rapid momentum behind its recovery with new bookings in 2Q2022 hitting all time highs and spreads improving to 13.5% with NPFs declining.
• The company’s growth is driven by the non-dealer used vehicle market with new bookings coming mainly through agents and repeat customers, and digital initiatives in place to improve origination.
• BFIN is the best quality multifinance player in Indonesia, with an ROE now above 21%. There will be more collaboration and synergies with Bank Jago going forward further driving growth.

The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days.

• Bajaj Finance Ltd (BAF IN) [“BAF”] reported Q1FY23 PAT of approx. INR 2600cr which puts it on track to post INR 11,000cr+ PAT in FY23, in line with our projections. 
• BAF is back on its pre-COVID growth trajectory as also highlighted in our prior note. Q1FY23 AUM growth came in at 6.2% QoQ and annualized ROE is back to 20%+.
• The strong Q1FY23 earnings is despite elevated competition in the marketplace which led BAF to forgo business where margin profile was not attractive.

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. Lifestyle International Holdings
2. Vedanta Resources
3. Tata Motors Ltd
4. China South City
5. Seazen (Formerly Future Land)

and more…

• The current shareholder structure of Kyoto Bank, where domestic financial institutions are the top shareholders and still continue to hold cross-shareholdings, will make it difficult to pass the shareholder proposal.
• In environment of continued sluggish bank earnings, the dividend income from policy shareholdings and the huge unrealized gains on stocks are valuable assets for weathering this difficult business environment.
• Kyoto Bank’s policy will change when the interest rate environment changes and earnings are expected to improve, or when the shareholder structure changes due to a significant reduction in cross-shareholdings.

• The six Thai banks that we cover all have relatively healthy credit quality, NPL coverage and sound capital adequacy ratios; also, positive cost of risk trends support the earnings outlook
• Of these, Krung Thai Bank stands out, with its low cost of risk, healthy post-provision profitability versus peers and its undemanding valuation multiples along with its low PEG ratio
• TMBThanchart is one to watch in the deep value category, especially given its attractive cost of risk trends to 2Q22