Daily Brief Financials: HDFC Bank, HgCapital Trust, Jaccs Co Ltd, Shizuoka Financial Group , Urbanet Corp and more

• Context: The HDFC Bank (HDFCB IN) vs. Union Bank Of India (UNBK IN) price-ratio has deviated more than two standard deviations from its average, presenting a potential relative value opportunity.
• Highlights: Going long HDFC Bank (HDFCB IN) and short Union Bank of India (UNBK IN) targets an 8% return. 
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

HgT has reported its Q325 results with a 2.4% increase in NAV per share, which marks a continuation of the rebound seen in Q225 following the negative impact of a weaker public market environment in Q125. HgT’s NAV total return (TR) for the first nine months (9M25) was therefore 1.9%. A continued positive contribution from portfolio earnings growth (4.3pp positive impact on portfolio valuation in Q325) and 1.4pp of fx tailwinds were partly offset by lower valuation multiples and higher net debt across HgT’s portfolio. Last 12-month revenue and EBITDA growth to end-September 2025 across HgT’s portfolio remains consistently in double-digit territory at 18% and 19%, respectively (of which 11% and 16% are organic growth). This is coupled with a sustained strong average EBITDA margin of 33%. Hg’s head of research highlighted that the 13% increase in Q325 earnings forecasts for listed software businesses only partially flowed into prices, leading to an 8% contraction in public market multiples. HgT maintained a strong long-term track record with five- and 10-year NAV TR to end-September 2025 of 14.5% and 17.8%, respectively. Based on the last closing price, HgT’s shares trade at a 13.6% discount to end-September 2025 NAV.

• Operating revenue increased to JPY97.1bn (+1.4% YoY), while operating profit and recurring profit decreased by 17.4% and 18.6% YoY, respectively.
• Domestic transaction volume rose 2.6% YoY to JPY2.90tn, with operating revenue at JPY85.8bn (+4.1% YoY).
• Overseas transaction volume fell 26.5% YoY to JPY30.4bn, with operating revenue at JPY11.2bn (-14.6% YoY).

• Shizuoka’s has healthy gearing to rising interest rates and its ratio of equity holdings value to market cap is attractive; yet we feel that it is time to take profits
• Shizuoka’s valuations are no longer compelling, with PE multiples and PEG ratios at the less attractive end relative to peers; it also has the highest LDR of the peer group
• In addition, Shizuoka has relatively high unrealized losses on its JGB portfolio and these have grow QoQ to September-end 2025

• Q1 FY06/26 sales were JPY14.2bn (+697.1% YoY), with operating profit at JPY2.6bn and net income at JPY1.7bn.
• Real Estate business sales reached JPY14.2bn (+720.3% YoY), driven by urban rental apartments and high-margin properties.
• Total assets rose to JPY63.8bn, liabilities decreased to JPY44.4bn, and net assets increased to JPY19.4bn.