Daily Brief Financials: Jinke Smart Services, S&P 500, Groupe Bruxelles Lambert Sa, Five Star Business Finance, China SCE, NFT and more

• Jinke Smart Services (9666 HK)’s VGO from Boyu Capital at HK$12.00 per share has been declared unconditional. Boyu has waived the 7.71% valid acceptances condition. 
• Boyu has likely two aims for the unusual VGO – secure anti-trust approval and a re-rating by becoming the largest shareholder. Anti-trust approval was received on 8 November.  
• Acceptances of 0.0081% of outstanding shares reflect the unattractive offer. The final closing date is 22 November. At the last close price, the spread to the offer is 2.7%. 

• RTY long is falling short of our 1,850 PT. SPX met the 3,820/40 tactical top target outlined last week (rally from SPX 3,700). A C-wave decline is expected to 3,650.
• DXY near support while yield remains elevated is at odds. DXY rally due from 110/109.50 and if yield push higher will see equities buckle.
• NDX is the U/P short to add back to below 11,300. SPX long support zone rests at 3,650/20 with 3,600 the critical pivot to spur a fresh rise.

• Back on the 27th of September, PRC-incorporated property management play Jinke Smart Services (9666 HK) announced a voluntary cash offer from Boyu at HK$12/share, a 33.04% premium to last close.
• The Offer was contingent on SAMR and 7.71% of shares out tendering. Matters were somewhat complicated by Boyu buying 7.15% of shares out before dispatching the Composite Document. 
• Jinke has now announced SAMR approval and waiving the acceptance condition. The Offer is unconditional. The final closing date is the 22nd of November. This may trade through terms. 

• GBL released Q3 results. NAV/share was down -3.6% to €112.39 QoQ (vs. €116.5 at 30 June) and -20% YTD. The discount to NAV was 36.0% as of 30 September.
• The portfolio could do with some rebalancing: Pernod Ricard and SGS represent 18% and 16% of GAV. GBL is creating value by purchasing its shares at a large discount.
• Discount to NAV is 35.3%, which seems high. BUY, with €87.35 TP, or play the discount: Long GBL / Short main listed assets (SGS, Pernod Ricard, Adidas and Umicore).

• Five Star Business Finance (0958461D IN) is looking to raise around US$250m in its upcoming India IPO. 
• Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.
• We have looked at various aspects of the deal in our previous note, in this note, we talk about valuations.

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.

• China SCE
• Country Garden Holdings Co
• Kawasan Industri Jababeka

• If you’re bored of reading FIFA-related stories – I’m sorry. The World Cup is on the horizon, after all!
• This project by the team over at Visa is probably the most interesting Web3 x World Cup project I’ve seen so far, however.
• Visa have created a generative art project where the art represents five iconic moments in World Cup history.