In today’s briefing:
- Shin Kong (2888 TT) / Taishin (2887 TT) – Waiting on the FSC
- Bank Mandiri (BMRI IJ) – Well-Set for 2025 Returns
- Asia Real Estate Tracker (07-Feb-2025): KKR & Gaw negotiating $660M sale of Hyatt Regency Tokyo.
- Jaccs Co Ltd (8584 JP): Q3 FY03/25 flash update
- Sun Frontier Fudousan (8934 JP): Q3 FY03/25 flash update
- Aruhi Corp (7198 JP): Q3 FY03/25 flash update
- Japan Investment Adviser Co (7172 JP): Full-year FY12/24 flash update
- Aon: What’s Next After the Willis Towers Watson Merger Fallout?
Shin Kong (2888 TT) / Taishin (2887 TT) – Waiting on the FSC
- The TFTC approved in early January, The TFTC said market power would be limited and competition unrestricted. Another CNA article suggested the two FHCs were completing employee placement plans.
- Apparently, as of a month ago, only the Shin Kong Bank employee settlement plan had not been completed but the FSC has rules about that. Consideration likely proceeds.
- There are specific rules about how these things are dealt with. In the meantime, the spread – still wide – is narrowing.
Bank Mandiri (BMRI IJ) – Well-Set for 2025 Returns
- Bank Mandiri saw a slower finish to the year despite strong loan growth and solid CASA growth, as expenses rose in 4Q2024 and slower recoveries impacted non-interest income.
- Strong loan growth was driven by corporate and commercial lending with diverse sector exposure, as it continues to exploit wholesale relationships rather than increase risk, supported by CASA growth.
- The recent correction looks overdone given the outlook for 2024 looks positive, with loans expected to follow deposit growth in 2025, with credit costs under control. Valuations below historic levels.
Asia Real Estate Tracker (07-Feb-2025): KKR & Gaw negotiating $660M sale of Hyatt Regency Tokyo.
- KKR and Gaw are in talks for a $660M sale of Hyatt Regency Tokyo to Japan Hotel REIT, potentially reshaping the hospitality market.
- Singapore worker housing rents have surged by 10.8% in the second half of 2024, attributed to a significant increase in labor influx.
- Despite falling rent trends in APAC office markets, Australia and Japan have shown resistance, according to Knight Frank’s report.
Jaccs Co Ltd (8584 JP): Q3 FY03/25 flash update
- Operating revenue increased by JPY4.3bn YoY, driven by deferred installment income, despite a decline in transaction volume.
- Consolidated operating expenses rose JPY8.4bn YoY due to higher bad-debt expenses and finance costs amid interest rate hikes.
- Overseas business saw a segment loss of JPY2.5bn, with increased bad debt expenses and declining transaction volumes in Vietnam and Indonesia.
Sun Frontier Fudousan (8934 JP): Q3 FY03/25 flash update
- Revenue and profit declined YoY due to the absence of large property sales and hotel sales in FY03/24.
- The company expects to achieve its full-year forecast, with significant property sales concentrated in Q4 FY03/25.
- Hotel operation business saw a significant YoY increase in revenue and profit due to rising occupancy rates and ADR.
Aruhi Corp (7198 JP): Q3 FY03/25 flash update
- Operating revenue increased to JPY16.5bn, driven by origination-related, recurring, and assets and other revenue growth.
- Operating expenses rose to JPY14.2bn due to finance costs, personnel, and commission expenses, despite cost-cutting measures.
- Pre-tax profit reached JPY2.3bn, with a 14.0% margin, as revenue and profit rose year-over-year.
Japan Investment Adviser Co (7172 JP): Full-year FY12/24 flash update
- FY12/24 revenue increased 42.7% YoY, with operating profit up 120.5% and recurring profit up 217.2%.
- Operating Lease business revenue rose 47.5% YoY, contributing 90.8% of total revenue, with equity sales at JPY113.1bn.
- FY12/25 forecast includes revenue of JPY36.9bn, operating profit of JPY18.1bn, and a 50% dividend payout ratio.
Aon: What’s Next After the Willis Towers Watson Merger Fallout?
- Aon plc’s performance in the fourth quarter of 2024 reflects a period of strategic execution and financial growth.
- The company reported a 6% organic revenue growth for the full year and a notable 17% total revenue increase, driven significantly by its successful 3×3 Plan.
- Operating income saw a robust 17% rise, contributing to a 10% increase in adjusted earnings per share.
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