Daily Brief Financials: Yes Bank, Klarna Group, Affirm Holdings , Chiba Kogyo Bank, Tokyu Fudosan Holdings, JDC Group AG, Longfor Properties, San In Godo Bank, Takara Leben, ALT Resources and more

• SMBC, a major Japanese bank, is buying a 20% stake in Yes Bank for INR 13,483 crore, marking a significant move towards strengthening Yes Bank’s recovery and future growth.
• It provides SMBC direct access to India’s growing banking sector and potential for strategic collaboration.
• The partnership enhances Yes Bank’s stability, governance, and access to global markets, positioning it for further growth. SMBC’s involvement could pave the way for future capital support and operational improvements.

• Klarna, a leading BNPL player in Europe, will try to push ahead with IPO in the second half of the year. The fintech unicorn plans to raise up to ~$1B.
• Klarna picked a not great time to take the company public, keeping in mind negative impact of Trump’s tariffs on BNPL players in the U.S. and European Union.
• I believe the company may price its IPO above last round valuation of ~$6.7B led by Sequoia Capital, Silver Lake, CPPIB, and Mubadala Investment Company, among others.

• AFRM posted solid Q3 2025 results with revenue growing of 35.9% YOY and in line with its stated guidance range. The adjusted operating income margin expanded by ~850 bps YOY.
• Q425 guidance was muted with implied revenue growth of 26% at the mid-point. This is much lower compared to 40.7%, 46.6% and 35.9% growth during Q1, Q2 and Q3 2025.
• AFRM’s valuation remains rich at 5.1x 2025E P/B and 25.2x 2025E P/E multiple, at a premium to the peer group average. This caps any meaningful upside from the current levels.

• Consolidated ordinary income reached JPY56.9bn (+4.3% YoY), with ordinary profit at JPY10.7bn (+4.2% YoY) for FY03/25.
• Non-consolidated core gross profit declined 5.4% YoY to JPY37.5bn, while expenses increased JPY597mn YoY to JPY25.3bn.
• The capital adequacy ratio improved to 9.18% non-consolidated and 9.19% consolidated, with risk-weighted assets declining.

• ESR, Tokyu Land, and Hulic have begun construction on a new shed in Singapore, helping to boost the real estate market in the region.
• Analysts predict that the drop in the Hong Kong interbank rate will have a positive impact on the market, leading to increased activity.
• China has cut housing loan rates to a record low in an effort to stimulate growth in the market, demonstrating proactive measures to support the economy.

JDC Group (JDC) reported strong Q125 results. Top-line growth was high at 16.7%, indicating that JDC is well on track to reach the 15.4% top-line growth management guided for (the midpoint of its FY25 range). Growth was driven by both the platform Advisortech division and Advisory activities. We believe JDC’s profile offers protection from global trade and economic issues that are prevalent in other sectors of the German economy. The financial position is strong and further M&A is on the agenda. Management reiterated FY25 guidance for revenue of €245–265m and EBITDA of €18.5–20.5m, along with mid-term guidance of €450–500m in turnover and EBITDA of €40–50m by 2030.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Longfor Group, Samvardhana Motherson
• The US and China have agreed to significantly roll back tariffs for 90 days, in a major but temporary de-escalation of trade tensions. The US will reduce tariffs on Chinese goods to 30% from 145% (comprising a 10% reciprocal tariff and 20% tariffs related to fentanyl imposed in February and March) by May 14th, while China will reduce its levies on American imports to 10% (from 125%).
• The two countries also agreed to establish a mechanism to continue discussions about economic and trade relations, led by Chinese VicePremier He Lifeng, US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, according to a joint statement published by the White House. US President Donald Trump said that China will also “suspend and remove all non-monetary barriers”, but offered no specific details.

• Consolidated ordinary income rose 12.6% YoY to JPY135.3bn, with ordinary profit up 8.0% YoY to JPY26.7bn.
• Non-consolidated ordinary income increased 14.9% YoY to JPY117.0bn, with core operating profit up 9.4% YoY to JPY40.6bn.
• For FY03/26, the bank projects consolidated ordinary profit of JPY30.4bn (+13.8% YoY) and plans to raise dividends.

• Revenue increased across segments, with notable growth in the new built-for-sale condominium business and energy business.
• Operating profit margins declined YoY, with the Real Estate and Energy segments experiencing notable decreases in profitability.
• MIRARTH Holdings announced a medium-term management plan focusing on sustainability, capital efficiency, and shareholder returns.

• Further to the announcement on 24 February 2025, the mining royalty and streaming company announced that the long stop date of 18 April 2025 to acquire a near-producing gold mining royalty has now passed.
• Therefore, the Company is no longer moving forward with the Proposed Acquisition.
• However, the Company is progressing other opportunities in its pipeline of activities.