Author: Dean Kim

Dean Kim is an Executive Director, Research Analyst for William O’Neil + Co.. Mr. Kim joined the firm to establish equity research coverage of the financial technology (“fintech”) sector. He has unique insight into the industry’s growth drivers, with broad experience covering the financial sector as an analyst and overhauling corporate business processes as a management consultant. Most recently, Mr. Kim served as Chief Financial Officer of Jios Aerogel Limited, a leading producer of the aerogel nanotechnology-based insulation material. As CFO, he raised more than $5 million in capital and managed liquidity, budgeting, and forecasting. Previously, he was an equity analyst for more than a decade. From 2007–2011, Mr. Kim headed equity research for BNP Paribas’ Korea office and simultaneously covered the banking sector, for which he was ranked number one by the Thomson Reuters/Joong-Ang Daily poll. He was also an equity analyst on Lehman Brothers' proprietary trading desk in Hong Kong, and on an Institutional Investor-ranked small cap team at UBS. Earlier in his career, Mr. Kim, an engineer, worked as a business process redesign specialist at Deloitte Consulting, analyzing the organization-wide processes of utilities and manufacturing companies. Mr. Kim earned a Bachelor’s degree in Electrical Engineering at Yale University, and an MBA from Columbia Business School. Outside of work, Mr. Kim enjoys coaching his kids’ soccer teams and traveling with his family.

O’Neil Financial Sector Weekly

Posted on by Dean Kim

CaixaBank (CABK.ES) – market cap $29.9B – is the second largest bank in Spain in terms of market value and offers banking
and financial services to more than 20M customers through its 4,800 branches. In its latest quarterly results, the bank recorded a net income growth of 22% y/y, supported by operating leverage and lower impairments. Net interest income rose 30% y/y while ROE stood at 6.5%. Gross loans increased 0.1% y/y while the NPL ratio stood at 3.5% compared with 3.6% a year ago.
Technical Setup: The stock broke out of a stage-two flat base on higher volume. It has an RS Rating of 97 and an A/D Rating of
B+. Click here for the chart.

O’Neil Financial Sector Weekly

Posted on by Dean Kim

Embassy Office Park REIT (EOP.IN) – market cap $4.7B – is India’s first publicly listed Real Estate Investment Trust. The
company owns and operates a 43M square feet (msf) portfolio of eight infrastructure-like office parks and four city‑centre office
buildings in India’s best-performing office markets of Bengaluru, Mumbai, Pune, and the National Capital Region (NCR). Embassy
REIT’s portfolio comprises 33.8 msf of the completed operating area and is home to 203 of the world’s leading companies.

O’Neil Financial Sector Weekly

Posted on by Dean Kim

City Developments Limited (CITY.SG; CIT SP) – $5B market cap – is a property developer and owner, which invests,
develops, and manages office, hotel, retail, and residential properties in about 104 locations in nearly 29 countries. The company boasts an extensive network of more than 600 subsidiaries. Most of its revenues came from Singapore, accounting for nearly 45%. The company has three main operating segments: hotel operations (50% of sales), property development (30%), and investment properties (15%). Strategic Portfolio Management Initiatives: As part of its growth strategy and core focus on
enhancing recurring income, it continues to build on strategic portfolio management initiatives through a multi-pronged approach. Over the last three years, it has completed around $4B of strategic acquisitions and investments in Singapore and its key overseas markets of Australia, Japan, the U.K., and China. Its enlarged hospitality portfolio focuses on achieving synergies, cost efficiency, and driving profitability. Earnings Outlook: A recovery in its hotel operations could support City Developments’
earnings in 2022. The company expects revenue per available room to recover to 70–80% of 2019 numbers this year, driven by a pickup in the European and the U.S. markets, while Singapore and New Zealand could be slower to ramp up due to international travel restrictions. The segment made up 16% of the company’s EBITDA in 2021. A 131% increase in City Developments’ home sales in 2021 is set to fuel its earnings as the sales are progressively booked based on the pace of construction. Technical overview: The stock is currently forming the right side of a flat base and is trading above its key moving averages. RS line is trending higher with an RS Rating of 90 and A/D Rating of A-. Click here for the chart.

O’Neil Financial Sector Weekly

Posted on by Dean Kim

Progressive Corp Ohio (PGR) – market cap $70.4B – provides personal and commercial auto insurance, personal residential
and commercial property insurance, workers’ compensation insurance primarily for the transportation industry and other
specialty property-casualty insurance, and related services. In the March quarter, the company reported a net premium written
amount of $13.2B, up 12% y/y, while net premium earned was up 13% y/y. Net income declined 79% y/y to $313M, missing
estimates by 10%. The combined ratio for the quarter stood at 94.5% compared with 89.3% a year ago. Technical setup: The
stock is breaking out of a stage-two flat base with an RS Rating of 93 and an A/D Rating of B.