In today’s briefing:
- National Securities Depository Limited (NSDL) IPO – Peer Comparison and Thoughts on Valuation
- China Citic Financial (2799 HK): Global Index Inclusion as Valuation Blows Out
- Kasumigaseki Hotel REIT IPO: Lags in Size but Priced at a Discount
- A Disappointment in the Works for New Dividend Tax Policy in Korea?
- Japanese Midcap Banks – Iyogin Holdings (5830 JP) Is Our Top Pick
- UniCredit: Drops BPM Bid, Targets 29% Stake in Commerzbank – Index Moves Ahead
- Credit Corp (CCP AU) Vs. Magellan Financial (MFG AU): Mean Reversion Meets Momentum
- S&P/ASX 200 Tactical Outlook Ahead of Australia’s Earnings Season Kickoff
- Matsui Securities (8628 JP): Q1 FY03/26 flash update
- Regal Partners Recovers Performance Fee Mojo
National Securities Depository Limited (NSDL) IPO – Peer Comparison and Thoughts on Valuation
- NSDL (NSDL IN) is looking to raise around US$460m in its upcoming India IPO.
- It is the largest depository in India in terms of number of issuers, number of active instruments, market share in demat value of settlement volume and value of assets.
- In this note, we undertake a peer comparison and talk about valuations.
China Citic Financial (2799 HK): Global Index Inclusion as Valuation Blows Out
- A doubling of the stock price over the last 4 months could lead to China Huarong Asset Management (2799 HK)‘s inclusion in a global index in August.
- China Huarong Asset Management (2799 HK) has outperformed its closest peer and trades at a much higher price to book.
- China Huarong Asset Management (2799 HK) was added to Southbound Stock Connect in March and investors have been buying the stock via the link.
Kasumigaseki Hotel REIT IPO: Lags in Size but Priced at a Discount
- Kasumigaseki Hotel REIT (401A JP) is looking to raise up to US$192m in its upcoming Japan IPO.
- It is a REIT with hotel assets sponsored by affiliated developer, Kasumigaseki Capital (3498 JP).
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
A Disappointment in the Works for New Dividend Tax Policy in Korea?
- There is a brewing disagreement among many members of the National Assembly in Korea regarding the new dividend tax policy.
- A key controversial issue is dividend taxes on dividends exceeding 300 million won. There is a room for some disappointment in the works regarding tax reductions on dividends.
- Instead of 25% tax rate for this dividend income bracket (exceeding 300 million won), there has been an increasing pressure by the ruling party to raise this rate to 35%.
Japanese Midcap Banks – Iyogin Holdings (5830 JP) Is Our Top Pick
- We update our views on ten Japanese midcap banks focusing on those with large strategic shareholdings relative to market value, as well as beneficiaries of the improving interest rate outlook
- Our top-rated pick is Iyogin Holdings (5830 JP), with its constructive mix of large strategic holdings, attractive valuations including PTBV ratio and healthy gearing to higher interest rates
- We also retain Hokuhoku Financial and Hachijuni Bank as buys; Hokuhoku has yet to realize its large strategic holdings whilst Hachijuni has reached its target level for cross-holdings reduction
UniCredit: Drops BPM Bid, Targets 29% Stake in Commerzbank – Index Moves Ahead
- UniCredit SpA (UCG IM) has formally withdrawn its bid for Banco BPM SpA (BAMI IM), following sustained political resistance from the Italian government.
- In parallel, UniCredit SpA (UCG IM) has increased its direct ownership in Commerzbank AG (CBK GR) from approx. 9% to 20%, with plans to reach 29% in total.
- The resulting reduction in Commerzbank’s free float may lead to index adjustments in phases, with further passive flows expected once the remaining exposure is converted.
Credit Corp (CCP AU) Vs. Magellan Financial (MFG AU): Mean Reversion Meets Momentum
- Context: The Credit Corp (CCP AU) vs. Magellan Financial (MFG AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: This Insight challenges the typical mean-reversion narrative—strong momentum, company fundamentals, and catalysts suggest the pair could set up either way.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and statistical signals supporting this relative value play.
S&P/ASX 200 Tactical Outlook Ahead of Australia’s Earnings Season Kickoff
- The Australian Earnings Season will begin in early August. The S&P/ASX 200 (AS51 INDEX) suffered a minor setback last week, closed the week down but it’s already rallying higher.
- Our profit target for this rally is 8824 (Q2 resistance target). It could go a bit higher than that but we think it will not reach Q3 resistance at 8996.
- If for some reason the index returns below last week’s Close, the next support level to watch is 8605 (Q2).
Matsui Securities (8628 JP): Q1 FY03/26 flash update
- Net operating revenue increased to JPY10.7bn (+13.4% YoY; +21.6% QoQ), with operating profit at JPY4.7bn (+10.2% YoY; +47.7% QoQ).
- Total commissions rose to JPY5.2bn (+0.5% YoY; +9.9% QoQ), with brokerage commissions at JPY5.0bn (+1.1% YoY; +10.9% QoQ).
- SG&A expenses increased to JPY6.0bn (+16.0% YoY; +7.0% QoQ), with personnel expenses up 25.7% YoY and 25.3% QoQ.
Regal Partners Recovers Performance Fee Mojo
- Auguring well for upcoming interim results, Regal Partners has provided a positive quarterly update showing a rebound for funds under management and performance fees.
- -Regal Partners’ positive June quarter update -FUM and performance fees rebound -Management raises normalised profit guidance -Share price undervalued, suggests Bell Potter
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