Daily Brief Financials: Soundwill Holdings, Aviva , Indusind Bank, Anicom Holdings, Molten Ventures , M&A Capital Partners, Matsui Securities, Record PLC, Arealink Co Ltd and more

• Soundwill Holdings (878 HK)’s IFA opines that the Foo family’s HK$8.50 offer is fair and reasonable. The vote is on 23 May. 
• Key conditions include approval by at least 75% of independent shareholders (<10% of independent shareholders’ rejection) and a headcount test. No shareholder holds a blocking stake. 
• The offer is attractive compared to historical trading ranges. The vote risk is low. At the current price and for a June 11 payment, the gross/annualised spread is 4.3%/44.0%. 

• Aviva’s (AV/ LN) £3.7B acquisition of Direct Line Insurance Group Pl (DLG LN) combines two major insurers, with £125M in expected annual synergies by year three.
• Direct Line Insurance Group Pl (DLG LN) shareholders to receive 0.2867 new Aviva (AV/ LN) shares, 129.7p in cash, and up to 5p in pre-completion dividends per share held.
• The acquisition is expected to impact major UK and European indices on an intra-quarter basis.

• Indusind Bank (IIB IN) , one of India’s prominent private-sector banks, recently disclosed a significant accounting discrepancy related to its derivatives portfolio.
• The estimated adverse impact of these lapses is INR 1,959 crore (~2.27% of the bank’s net worth), which will be accounted for in Q4FY25, likely resulting in a net loss.
• The resignations of the CEO and Deputy CEO raise concerns on potential unidentified issues, including regulatory scrutiny, other accounting lapses and potential slowdown in business post top management rejig.

• Japanese pet insurance company with 40-50% market share thanks to its OTC settlement system and a network of pet shop/veterinary clinic partners
• The stock trades at around 13x current-year earnings, a modest multiple given the secular growth that’s ahead of it. The pet/human population ratio is low. Pet insurance is still unusual.
• Well-Regarded investor Hikari Tsushin just took a 5.2% position in the company, highlighting the value in the company at the current 1.5x book. 

Molten’s FY25 trading update (to end-March 2025) showed a positive uptick in portfolio valuations in the second half of the company’s financial year, resulting in a c 4% increase in NAV per share to 671p in H225, and in turn a marginally positive NAV per share total return for FY25 of 1.4%. Molten delivered a strong level of realisation proceeds in FY25 of c £135m (above original management guidance of £100m) and has seen continued traction in recent months with further expected proceeds of £30m (despite the overall soft European VC exit market in Q125), supporting its share buybacks. Molten’s cash balance at end-March 2025 stood at £89m (which further improved to £110m as of 23 April 2025 following the receipt of Freetrade proceeds). Together with its undrawn revolving credit facility of up to £60m and limited near-term funding requirement across its portfolio for FY25 (up to £20m according to management’s previous statements), this provides it with a good balance sheet position for new and follow-on investments (Molten invested £73m in FY25).

• Revenue reached JPY11.5bn, a 58.2% YoY increase, with a progress rate of 48.5% against the full-year target.
• Operating profit increased by 154.3% YoY to JPY4.2bn, with a progress rate of 52.3% versus the full-year forecast.
• Net income attributable to owners rose 158.5% YoY to JPY2.9bn, with a progress rate of 52.4% against forecasts.

• Net operating revenue was JPY8.8bn, a decrease of 11.4% YoY and 1.6% QoQ, with operating profit at JPY3.2bn.
• Total commissions were JPY4.8bn, down 23.8% YoY but up 3.6% QoQ; brokerage commissions were JPY4.5bn.
• SG&A expenses totaled JPY5.7bn, increasing 1.1% YoY and 5.2% QoQ, with transaction-related expenses at JPY1.9bn.

Record has reported robust assets under management (AUM) for Q425. Against a background of increased volatility in currency markets, the company’s core risk management services continue to demonstrate their value to both existing and potential clients, while providing opportunities in asset management products. An additional £0.3m of performance fees in the quarter has taken the FY25 total to £3.2m and we have slightly lifted our FY25 earnings forecast. FY25 results will be reported on 20 June.

• Self-Storage segment revenue was JPY7.5bn (+9.3% YoY), with a gross profit of JPY2.5bn (+4.9% YoY).
• Land Rights Consolidation segment revenue declined to JPY777mn (-42.3% YoY) due to business scaling down policy.
• Asset management and rental office segment revenue increased to JPY388mn (+4.4% YoY), with stable occupancy rates.