Daily Brief Financials: Jafco Co Ltd, Tian Tu Capital, Chainlink, Sunshine Insurance, Korea Stock Exchange Kospi 200 Index, BOC Hong Kong (BOC HK), Credicorp Ltd, INR, CIFI Holdings and more

• Jafco Co Ltd (8595 JP) announced the reference period VWAP for the Tender Offer Buyback was ¥2,362.4136 vs target ¥2,525. Murakami-san refused to play, so the Tender Offer is cancelled.
• This is good news and bad news. The announcement wording doesn’t make JAFCO look good, but they will continue discussions with City Index Eleventh. But there is potential.
• I shall now therefore humbly propose my own thoughts, which I hope will not be liable to the least objection (Jonathan Swift, 1729)

• 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.

• Chainlink provides essential data-feeding services for blockchains, providing a bridge between blockchains and real-world information and data sources for both crypto and non-crypto use cases.
• LINK token captures Chainlink’s network value, and new tokenomics 2.0 introduce staking further improve the supply & demand dynamic.
• LINK price is supported by the growing usage of Chainlink network as onchain activity continues growing despite the bear market.

• Sunshine Insurance (6963 HK) priced its IPO at HK$5.83 per share to raise net proceeds of HK$6.4 billion (US$824 million). The shares will start trading tomorrow.
• We previously discussed the IPO in Sunshine Insurance Group IPO: The Bull Case, Sunshine Insurance Group IPO: The Bear Case and Sunshine Insurance Group IPO: Valuation Insights. 
• Peers have modestly re-rated and the IPO price continues to imply a premium to the median peer CY2022 P/EV and P/B multiples. Therefore, the IPO price remains unattractive.

• KOSPI2 Index failed to break above the 200dma and has retreated
• The index has now fallen back towards the 50dma and we see an short-term opportunity to play the upside
• Use weekly options to play a short-term bounce and get the best risk-reward

• Credit costs at present are only 20bps of loans, these can move to 100bps or higher
• Population data even before 2H22 shows contraction, with negative implications
• Property prices are turning down even faster, which is banks’ loan collateral

• The ousting of Peruvian President Pedro Castillo follows his failed attempt to dissolve Congress; Vice-President Dina Boularte was sworn in yesterday as the new first female Peruvian President
• Political instability is not uncommon in Peru, but an end to Castillo’s chaotic, market-unfriendly administration with its high turnover in ministerial posts should improve investor sentiment and encourage increased FDI
• When we screen Peruvian bell-weather Credicorp against its LatAm peers, we conclude that, although it is not deep value, it is attractive versus its own history and selected peers

• After a 50 bp hike three times a row, RBI softened and increased the repo rate by 35 basis points to 6.25%.
• Consequently, the standing deposit facility (SDF) rate stands adjusted to 6%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.50%
• The basic facts on the ground have not changed much since the last policy in September-end: global headwinds, inflationary pressures arising from both exogenous and endogenous sources, and adverse terms of trade balanced against an economy exhibiting nascent growth with all the growth engines – industrial, agricultural and service sectors – in early stages of combustion.

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.

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