Daily Brief Financials: Country Garden Holdings Co, Jafco Co Ltd, Binjiang Service Group, Nippon Prologis Reit, Silvergate Capital, Tian Tu Capital and more

• Country Garden Holdings Co (2007 HK)  aims to raise around US$500m via a primary placement
• This will be the third placement by the company this year and the second one within a month’s time.
• In this note, we will run the deal through our ECM framework and talk about the recent updates.

• Late last month, JAFCO (8595) Yields to Murakami Greenmail – Big Asset Sale, Big Buyback and set the large buyback from Murakami-san to occur through a Tender Offer.
• The TOB price would be set at a 1% discount to the average 30 Nov – 7 Dec VWAP if VWAP was between ¥2,525 and ¥2,828/share. That’s not happening.
• So now we read the fine print, look at waive-ability of conditions, and look at contingencies.

• A recent rally in property management companies due to measures taken by the government has set Binjiang Service Group (3316 HK) for a big move upwards.
• The stock is cheap and trades at 10.5x/8.1x FY22/23e PE with 37% of the market cap in cash and a 5.8%/7.4% FY22e/23e dividend yield.
• Catalysts for the company are further loosening on the property by the government and a profit alert of 38-40% earnings growth for FY22.

• Nippon Prologis Reit (3283 JP) is looking to raise around US$175m in its global follow-on offering to acquire three logistics properties.
• Acquisitions are well flagged, having been in the REIT’s pipeline for some time now. Past offerings have performed well in the first month as well.
• In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Country Garden Holdings Co
• Times China

• SI US declined 78.5% from its August 2022 high of 108.11 to its November 2022 low of 23.20. 
• Our Trend Sustainability Score (TSS) methodology has triggered a TSS < 10, highlighting extreme short-term momentum failure.
• A new downtrend low, below 23.20, in the coming 1-2 days will likely fail quickly and deliver a 10% to 20% reversal in the coming 1-2 weeks.

• Tian Tu Capital (1390587D CH) is looking to raise US$300m in its upcoming Hong Kong IPO.
• Tiantu Capital (TTC) is a private equity/venture capital investor and fund manager with a focus on Chinese consumer brands and companies.
• The fund manages capital from investors including institutional investors, multinational corporations, financial institutions, and high net-worth individuals. It also directly invests through its own capital as well.