Daily Brief Financials: Judo Capital, Huafa Property Services Group, DGB Financial Group, Samsung Life Insurance, Agile Property Holdings, American Capital Agency Corp, Bakkt, ICG Enterprise Trust plc, Defi Technologies , NET Lease Office Properties and more

• In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run-up to the June 2024 index rebal event.
• We expect one ASX 20 change and two ASX 100 changes during the regular rebalance event.
• For the ASX 200 index, there could be two intra-review changes in the month of June 2024 and one of those names could be a surprise.

• Huafa Property Services Group (982 HK) is currently suspended pursuant to the Takeovers Code. 
• This SOE-backed property management play recently announced its highest-ever earnings.
• Shares have gained ~32% in the past fortnight, touching a three-year high. IF an Offer were to unfold, expect an Offer Price ~10% above the last close. 

• On 16 May, it was reported that the Korean financial regulators have approved DGB Daegu Bank to become the 7th commercial bank in Korea. 
• DGB Daegu Bank is the core entity of DGB Financial Group (139130 KS) which currently has a market cap of 1.4 trillion won (US$1.0 billion).
• This change will allow the company to expand in the more lucrative metropolitan Seoul and other regions in Korea. We have a positive view of DGB Financial Group (139130 KS).

• Talks circulate that E-Mart may sell its 5% stake in Samsung Life Insurance, valued around ₩1T, due to fundraising needs linked to SSG.com investors’ put options.
• Initially, Starbucks Korea was a potential sale, but U.S. HQ approval makes it unfeasible. Shinsegae L&B and Food weren’t enough to raise funds, leading E-Mart to focus on Samsung Life.
• E-Mart’s block deal timing is uncertain due to potential legal disputes over unmet put option conditions, yet recent local market discussions suggest E-Mart may avoid legal battles.

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.

• Medco Energi

• Author discusses high-return opportunity in mortgage REIT preferreds, focusing on AGNC Investment Corp’s Series F preferred
• Systematic mispricing allows for 13-20% IRRs over 12-36 months with fairly safe investment
• Emphasis on safety and high yield of mREIT preferreds, highlighting potential for significant returns while minimizing borrower credit risk

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• President and CEO Andy Main focused on Bakkt’s three key priorities for 2024 as the company saw strong 1Q24 crypto trading activity with notional traded volume up 324% sequentially.
• The company is cutting costs, and it expects to have between $42 million and $57 million in cash at the end of 2024.
• Objectives for 2024 include broadening client networks, expanding products, and expense management.

• The key message from ICGT’s FY’24 results (to January) is the continued strength of the operating companies, which keep delivering mid-teen EBITDA growth.
• Despite challenging markets, margins have widened, which should help allay some concerns over the impact of the higher-rate environment.
• Target returns are “broadly unchanged”.

• Key 1Q24 takeaways include: 1) stepped up earnings power following recent deleveraging that cuts interest expense and unlocks higher-yielding AUM 2) sustainable demand for Valour’s ETPs despite near-term crypto volatility and 3) ongoing product development focused on innovative and differentiated offerings that facilitate access and exposure to digital assets via secure, liquid, and yield-bearing vehicles.
• We are raising our 2024 and 2025 EPS estimates from $0.08/$0.40 to $0.12/$0.51 reflecting higher trading/staking fees, as DEFTF’s revenue model continues to evolve, combined with lower interest expense.
• Stepping back, we believe DEFTF remains well positioned for accelerating growth driven by the firm’s diversified digital assets platform, rising demand for crypto ETPs more broadly, ongoing product development, durable regulatory competitive advantages, and an increasingly potent earnings profile.

• NLOP has continued to reduce the number of properties it owns through further dispositions during the first quarter and so far through the second quarter. 
• The pace of selling is likely to continue until NLOP has reduced its mezzanine and senior secured mortgage debt to zero. 
• AFFO was $20.0 million, in the first quarter, which was more than we were expecting.