In today’s briefing:
- SK Square Placement: Clean up by Kakao
- SBI Possible US$3bn QIP – Will Be One of the Largest Fund Raisings in India, Last One Didn’t Do Well
- U.S. Bancorp: Will The Management Focus On Payments Power & Precision Cost Control Pay Off?
- Shortlist of High Conviction Philippines Equity Ideas – July 2025
- Wells Fargo: Focus On Non-Interest Revenue & Critical Growth Levers!
- American International Group (AIG) Is Using AI To Add To Its Competitive Advantage In Underwriting Precision; But Is It Enough?
- Aflac Inc.: Expanding Product Portfolio in Japan to Capitalize On Demographic Shifts!
- Cincinnati Financial Delivers 14% Investment Income Surge—But Is It Enough To Warrant Optimism?
- DigiCo Infrastructure REIT – Rudi’s View: The Megatrend You Simply Cannot Ignore
- Lucror Analytics – Morning Views Asia
SK Square Placement: Clean up by Kakao
- Kakao Corp (035720 KS) is looking to raise US$316m from a clean-up sale in SK Square (402340 KS) .
- The deal is a small one, representing 5.4 days of the stock’s three month ADV, and 1.7% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
SBI Possible US$3bn QIP – Will Be One of the Largest Fund Raisings in India, Last One Didn’t Do Well
- As per news reports and company filings, State Bank Of India (SBIN IN) could soon look to raise around US$3bn (INR250bn) via a QIP.
- SBI raised around US$2.3bn (INR150bn) in 2017, but the deal didn’t end up doing well.
- In this note, we will talk about the possible fund raising and other deal dynamics.
U.S. Bancorp: Will The Management Focus On Payments Power & Precision Cost Control Pay Off?
- U.S. Bancorp reported first-quarter 2025 earnings with earnings per share of $1.03 and a return on tangible common equity of 17.5%.
- The company demonstrated progress on its strategic priorities, achieving a year-over-year positive operating leverage of 270 basis points on an adjusted basis.
- This improvement was driven by disciplined expense management, momentum across fee businesses, and modest margin expansion.
Shortlist of High Conviction Philippines Equity Ideas – July 2025
- We are gradually building a high-conviction coverage of ideas for mid and small-cap companies in the Philippines.
- We established metrics focusing on high ROCE, sustainable growth of 10-15% YoY, robust balance sheets, and prudent capital allocation, essential elements for identifying potential multi-bagger opportunities.
- Read our initiation on Asian Terminals Inc (ATI PM): Steady and Cheap Container Port Terminal Operator, and our recent update on DigiPlus Interactive (PLUS PM).
Wells Fargo: Focus On Non-Interest Revenue & Critical Growth Levers!
- The recent earnings call for Wells Fargo & Company presented a generally solid performance for the first quarter of 2025, reflecting progress against its strategic priorities amidst a challenging economic environment.
- With net income at $4.9 billion, or $1.39 per diluted common share, the company reported a 16% increase in earnings per share compared to the previous year.
- Despite a decline in revenue due to lower net interest income, Wells Fargo managed to grow fee-based revenue across various sectors, illustrating the benefit of its investment diversification strategy.
American International Group (AIG) Is Using AI To Add To Its Competitive Advantage In Underwriting Precision; But Is It Enough?
- American International Group (AIG) presented its first quarter of 2025 results, showcasing a mix of achievements and challenges that yield insights for potential investors.
- The company’s performance was framed by significant strategic moves, including the deconsolidation of Corebridge Financial in mid-2024, which has reorganized its financial statements to treat Corebridge’s historical results as discontinued operations.
- AIG reported an adjusted after-tax income of $702 million or $1.17 per diluted share for the period.
Aflac Inc.: Expanding Product Portfolio in Japan to Capitalize On Demographic Shifts!
- Aflac Incorporated reported its financial results for the first quarter of 2025 with mixed outcomes across its Japan and U.S. operations.
- For the quarter, Aflac achieved net earnings per diluted share of $0.05, notably impacted by net investment losses.
- Conversely, its adjusted earnings per diluted share stood at $1.66, remaining consistent with the previous year.
Cincinnati Financial Delivers 14% Investment Income Surge—But Is It Enough To Warrant Optimism?
- Cincinnati Financial Corporation’s first quarter of 2025 was marked by significant challenges and notable resilience in certain areas.
- Faced with widespread weather-related catastrophes, the company reported a net loss of $90 million, primarily driven by a substantial increase in catastrophe losses estimated at $356 million after taxes.
- Despite these setbacks, Cincinnati Financial saw growth in its property casualty premiums by 11%, demonstrating its ability to maintain momentum amidst adverse conditions.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Shui On Land, Vedanta Resources, JSW Steel, Nissan Motor
- UST yields declined yesterday (the first drop in a week), on the back of a solid auction of 10Y notes. The yield on the 2Y UST fell 5 bps to 3.84%, while the yield on the 10Y UST was down 7 bps at 4.33%. Equities rallied, led by gains in large tech stocks. The S&P 500 rose 0.6% to 6,263, while the Nasdaq climbed 0.9% to 20,611.
- US President Donald Trump has released more tariff-letter screenshots on Truth Social, outlining a 25% rate on the Philippines, 30% on Sri Lanka and 50% on Brazil, among others. In particular, the letter for Brazil highlighted the “witch hunt” on former Brazilian president Jair Bolsonaro, as well as the country’s “insidious attacks on free elections and the fundamental free speech rights of Americans”, citing the Brazilian Supreme Court’s censorship orders on US social media platforms.
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