In today’s briefing:
- Japan CorpGovReports: TSE “Mgmt Conscious of Capital Cost/Stock Price” Details (Feb25), TSE Updates
- Insignia Financial (IFL AU): Three’s A Crowd As Brookfield Joins Bain And CC Capital
- EQD | February Macro Vol Roadmap – Stay Alert to Trend Change in 2nd Half of Month
- €10bn Share Buyback
- SK Finance Ltd Pre-IPO – Strong AUM Growth Driven by Vehicle Financing
- Asia Real Estate Tracker (05-Feb-2025): CapitaLand buys Osaka site for $700M data centre.
- Lucror Analytics – Morning Views Asia
- Dream Incubator (4310 JP): Q3 FY03/25 flash update
- Ricoh Leasing (8566 JP): Q3 FY03/25 flash update
Japan CorpGovReports: TSE “Mgmt Conscious of Capital Cost/Stock Price” Details (Feb25), TSE Updates
- TSE-Listed companies are asked to file “Management Conscious of Capital Cost/Stock Price” awareness reports/policies. Many have. Some are still working on it. And policies change, and CGR reports are updated.
- 171 new CGRs were filed since 31-Dec-2024. Our tools show every report, links to every document, and now a new diff file tool. Input a name, see the changes.
- A surprising number of smaller companies have yet to file a MCoCC/SP Awareness report. As cross-holdings get sold down, I expect they will become activists targets in 2025.
Insignia Financial (IFL AU): Three’s A Crowd As Brookfield Joins Bain And CC Capital
- One exceptionally crowded data room as PE outfit Brookfield Capital joins Bain Capital and CC Capital with a matching A$4.60/share NBIO, via a Scheme, for Insignia Financial (IFL AU).
- Brookfield’s Offer may include a scrip alternative in an unlisted bid vehicle, subject to caps. As with Bain and CC Capital’s Offers, Brookfield’s Offer would ultimately require FIRB signing off.
- And similar to Bain and CC Capital, Brookfield has been afforded a limited period of access to certain non-public information on a non-exclusive basis.
EQD | February Macro Vol Roadmap – Stay Alert to Trend Change in 2nd Half of Month
- All markets surveyed here tend to see price weakness along with increased volatility in the second half of February.
- SP500 was the only market for which realized vol in January was greater than implied at the end of December.
- Gold, SP500 and SPASX200 have all gone over 450 days without a 10% correction. Nifty moving in opposite direction, 127 days without a 10% rally.
€10bn Share Buyback
- Strong 2024 Financial Performance: Santander reported a record €12.57 billion net profit, exceeding expectations, with 8% revenue growth (€62.2B) and 12% net income growth (€36.18B), boosting RoTE to 16.3%.
- The buyback 13.3% of market cap, could raise EPS, improve valuation, and support share price, as it represents 15% of ADTV over two years (or 80 days worth of ADTV).
- Santander maintains strong capital and profitability, with a CET1 ratio of 12.8%, RoTE of 16.3%, and an efficiency ratio of 41.8%, reinforcing sustained long-term value creation.
SK Finance Ltd Pre-IPO – Strong AUM Growth Driven by Vehicle Financing
- SK Finance Limited (0893736D IN) is planning to raise about US$260m through its upcoming India IPO.
- SK Finance Ltd (SFL) is a non-deposit non-banking finance company middle layer (NBFC ML) operating in two main verticals, vehicle financing and financing for micro, small and medium enterprises (MSMEs).
- As per CRISIL Report, the company was the fastest growing player in the vehicle and MSME financing segment among its peers, based on AUM growth over FY21-23.
Asia Real Estate Tracker (05-Feb-2025): CapitaLand buys Osaka site for $700M data centre.
- CapitaLand Investment secures Osaka site for $700M data centre project, expanding presence in Asia’s growing tech market.
- Singapore’s Temasek boosts investment in CenterSquare’s commercial real estate debt fund with $200M injection for growth.
- Gordon Tang faces setback as Suntec REIT buyout likely to fail with extended deadline, raising uncertainty in real estate market.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Greentown China, Health and Happiness (H&H)
- In the US, the December JOLTS job openings unexpectedly declined to 7.6 mn (8.0 mn e / 8.2 mn revised p). The JOLTS lay-off and quits rates were stable at 1.1% and 2.0%, respectively, in December.
- Treasuries rallied yesterday, with yields declining 4-5 bps across the curve, on account of the weaker-than-expected JOLTS report.
Dream Incubator (4310 JP): Q3 FY03/25 flash update
- In Q3 FY03/25, consolidated sales were JPY4.5bn (+19.8% YoY), with operating profit of JPY173mn and net income of JPY97mn.
- Business Production segment sales reached JPY3.8bn (+10.3% YoY), with operating profit of JPY568mn (+15.2% YoY).
- Venture Capital segment sales were JPY726mn (+117.4% YoY), with operating profit of JPY405mn, reversing prior losses.
Ricoh Leasing (8566 JP): Q3 FY03/25 flash update
- Revenue decreased by 2.1% YoY, while net income attributable to owners rose 50.0% YoY due to extraordinary gains.
- Contract execution volume increased significantly in real estate and capital investment domains, contributing to overall growth.
- SG&A expenses rose 8.6% YoY, driven by human resource investments; capital cost increased 89.0% YoY due to interest rates.
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