Daily Brief Financials: Dear Life, National Storage REIT, SBI Shinsei Bank, Priority Technology Holdings I, China International Capital Corporation, NS Group, Bajaj Housing Finance, Grayscale Investments, Shinyoung Securities and more

• Today after the close, Tokyo-based Dear Life (3245 JP) announced a primary offering to raise approximately ¥7bn through 15% dilution. Implying a 13+% price drop to protect PER.
• But the company plans on growing earnings. It has some projects in inventory, but it obviously plans a lot of turnover this year and needs to replenish.
• The MTMP “slogan” is “2028 – Ride the Wave!”  This is a bit what investing in Tokyo real estate is like now. So one rides it until one doesn’t.

• Reportedly, Brookfield and Singapore’s GIC will make an Offer for National Storage REIT (NSR AU), Australia and New Zealand’s largest landlord of self-storage sites .
• The AFR is reporting that Brookfield/GIC are on the cusp of launching a bid around NTA.  NSR entered into a trading halt this morning. 
• Earlier this year, key peer Abacus Storage King (ASK AU) fielded an NBIO from Ki Corporation/Public Storage (PSA US) at a ~3% premium to NTA; however, Ki/PSA ultimately walked. 

• SBI Shinsei Bank (8303 JP), a Japanese financial institution, aims to raise around US$2bn in its Japan listing
• SBI Shinsei Bank (SBISB) is a Japanese financial institution providing a range of financial products and services to both individual and institutional customers.
• We have looked at past performance in our earlier notes. In this note, we talk about valuations.

• Priority Technology received a non-binding privatization offer from founder Thomas Priore at $6-$6.15/share, with Priore owning 58%.
• Activists Buckley Capital and Steamboat Capital oppose the bid, claiming it undervalues PRTH, suggesting a fair value of $10-$17/share.
• The company’s segments include Merchant Solutions, Payables, and Treasury Solutions, with 64% of adjusted gross profit from recurring revenues.

• CICC (3908 HK)‘s announced merger with Dongxing Securities (601198 CH) and Cinda Securities (601059 CH) will elevate it to the 3rd largest HK-listed Chinese securities company.
• Based on our assumptions, its EPS will be diluted by 7.1%, BPS enhanced by 12.2%, and ROE lowered by 1pp for FY26, before accounting for synergy.
• Its presence in Fujian (+616.7%), Liaoning (+500%), and Beijing (+100%) will be significantly enlarged. Additionally, it will open up potential benefits from optimisation.

• NS Group (471A JP) (NSG) is one of Japan’s leading rent guarantee service providers, offering payment guarantee and rent collection solutions to property owners and management companies.
• NSG aims to raise around US$256m in its Japan IPO via an entirely secondary offering, marking Bain Capital’s full exit from the company.
• In our previous note, we looked at the firm’s past performance. In this note, we talk about the peer comparison and IPO valuations.

• Bajaj Housing Finance (BHF IN) is a priced to perfection narrative.
• The current valuation (37.3x P/E, 4.2x P/B) prices the stock for absolute perfection in an environment that is distinctly imperfect and rapidly deteriorating.
• A critical red flag highlighted in the Q2 transcript is the elevated annualized attrition rate.

• Priority Technology (PRTH) received a non-binding privatization offer from its founder at $6-$6.15/share, with activist opposition.
• KNOT Offshore Partners (KNOP) received a non-binding privatization offer at $10/unit, with expectations of a bumped offer.
• Lennar Corporation (LEN) completed a tender offer, with a final exchange ratio of 4.1367x and oversubscription.

• Grayscale positions for a 2025 IPO as the largest U.S. digital-asset investment platform with $35 billion AUM and broad institutional-grade product coverage.
• The firm targets a $4 trillion digital-asset market, leveraging diversified ETPs and strong investor adoption to expand regulated access and long-term growth potential.
• Despite sector volatility, Grayscale aims to capitalize on rising institutional demand, product innovation, and its scale advantages to drive future public-market performance.

• Shinyoung Securities demonstrates a compelling value proposition with a low price-to-book ratio and a consistent, high dividend yield, appealing to value and income-oriented investors.
• Despite strong multi-year growth in net income and EPS, the company exhibits significant top-line volatility and deeply negative operating cash flows, raising concerns about the quality and sustainability of its earnings.
• The firm operates in the highly competitive and cyclical South Korean securities industry, facing pressures on margins and earnings streams that are heavily influenced by macroeconomic conditions and market trading volumes.

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