Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Back on the 8 March 2021, <a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson (JM SP)</a> made a cash acquisition for the 15% of <a href="https://www.smartkarma.com/entities/jardine-strategic-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15081:1" rel="noopener">Jardine Strategic (JS SP)</a>'s share capital it did not already own.</li>
<li>The US$33/share Offer price was arguably light. But with the amalgamation requiring 75% approval and Matheson providing an irrevocable to vote its 84.89% stake for the transaction, it was done.</li>
<li>On the 20 April 2022, the Bermuda Court dismissed Jardine's application to strike out dissenting shareholders who acquired shares after the Offer was announced. Last month, Jardine lost its appeal. </li>
</ul>


Back on the 8 March 2021, Jardine Matheson (JM SP) made a cash acquisition for the 15% of Jardine Strategic (JS SP)'s share capital it did not already own.
The US$33/share Offer price was arguably light. But with the amalgamation requiring 75% approval and Matheson providing an irrevocable to vote its 84.89% stake for the transaction, it was done.
On the 20 April 2022, the Bermuda Court dismissed Jardine's application to strike out dissenting shareholders who acquired shares after the Offer was announced. Last month, Jardine lost its appeal. 


Jardine Strategic's Dissentient Shareholders: The Sensible And Workable Approach

Equity Bottom-Up

Mandarin Oriental International / Equity Bottom-Up

<ul>
<li>Hong Kong is - very gradually - rolling back Covid restrictions</li>
<li>That's a welcome relief for tourists, and for hospitality companies dependent on tourism. </li>
<li>
<a href="https://www.smartkarma.com/entities/mandarin-oriental-international-ltd" target="_blank" data-smartkarma-citation="entities:4773:1" rel="noopener">Mandarin Oriental International (MAND SP)</a> is trading cheap at 0.7x P/B against 1.8x on average (five years) pre-Covid.</li>
</ul>


Hong Kong is - very gradually - rolling back Covid restrictions
That's a welcome relief for tourists, and for hospitality companies dependent on tourism. 

Mandarin Oriental International (MAND SP) is trading cheap at 0.7x P/B against 1.8x on average (five years) pre-Covid.


Mandarin Oriental (MAND SP): Life Is Suite

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jardine-cycle-carriage-ltd" target="_blank" data-smartkarma-citation="entities:347:1" rel="noopener">Jardine Cycle &amp; Carriage (JCNC SP)</a> is currently trading at a ~9% discount to NAV, around the narrowest since the post-Covid nadir in April 2020.</li>
<li>JCNC's recent results highlighted a marked improvement in its unlisted Vietnamese automotive ops. </li>
<li>Weakness in the Indonesian rupiah has taken some of the shine off <a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a>'s strong sales growth. </li>
</ul>



Jardine Cycle &amp; Carriage (JCNC SP) is currently trading at a ~9% discount to NAV, around the narrowest since the post-Covid nadir in April 2020.
JCNC's recent results highlighted a marked improvement in its unlisted Vietnamese automotive ops. 
Weakness in the Indonesian rupiah has taken some of the shine off Astra International (ASII IJ)'s strong sales growth. 


<ul>
<li>It's been a long-time coming. <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a> and parent <a href="https://www.smartkarma.com/entities/naspers-ltd" target="_blank" data-smartkarma-citation="entities:21085:1" rel="noopener">Naspers (NPN SJ)</a> will gradually sell down their stake in <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> to fund a share purchase program.</li>
<li>Preceding my comments on Prosus and Naspers, are the current setup/unwind tables for Asia-Pacific Holdcos. </li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % of market capitalisation greater than 20%.</li>
</ul>


It's been a long-time coming. Prosus (PRX NA) and parent Naspers (NPN SJ) will gradually sell down their stake in Tencent (700 HK) to fund a share purchase program.
Preceding my comments on Prosus and Naspers, are the current setup/unwind tables for Asia-Pacific Holdcos. 
These relationships trade with a minimum liquidity of US$1mn, and a % of market capitalisation greater than 20%.


StubWorld: Prosus & Naspers Gain On Buyback Funded By Tencent Share Sale

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Holdings (JM SP)</a>'s underlying net profit in FY21 was up 39% against 2020, and just 5% shy of 2019's level.</li>
<li>The latest US$250mn buyback program appears to have been completed.</li>
<li>Shares are down ~5% since the FY21 results. At a ~28% discount to NAV, JMH is inexpensive here. </li>
</ul>



Jardine Matheson Holdings (JM SP)'s underlying net profit in FY21 was up 39% against 2020, and just 5% shy of 2019's level.
The latest US$250mn buyback program appears to have been completed.
Shares are down ~5% since the FY21 results. At a ~28% discount to NAV, JMH is inexpensive here. 


Jardine Matheson (JM SP): Reloading The Buyback?

Singapore

Jardine Strategic Holdings Limited is a holding company with principal interests in Jardine Matheson, Dairy Farm, Hongkong Land, Mandarin Oriental, and Cycle and Carriage.  The Company, through its subsidiaries, operates auto distribution, food and retailing, property investment, property development, and hotel operations.

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Jardine Strategic Holdings (JS SP)

Jardine Strategic's Dissentient Shareholders: The Sensible And Workable Approach

In April 2022, Jardine's application to strike out dissenters who acquired shares after the Offer was announced was dismissed. Last month, Jardines...

David Blennerhassett

Mandarin Oriental (MAND SP): Life Is Suite

Mandarin Oriental is trading cheap at 0.7x P/B against 1.8x on average (5 years) pre-Covid. Business will continue to improve from here. The...

David Blennerhassett

JCNC Is Overstretched Vs. Astra

If you had set up the stub, I would be unwinding here. I'd look to reverse the stub as and when the current momentum reverses.

David Blennerhassett

Jardine Matheson (JM SP): Reloading The Buyback?

Given JMH's strong underlying performance and discount to NAV, another round of buybacks is feasible. Especially given management was consistently...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Jardine Strategic's Dissentient Shareholders: The Sensible And Workable Approach

In April 2022, Jardine's application to strike out dissenters who acquired shares after the Offer was announced was dismissed. Last month, Jardines...

David Blennerhassett

Mandarin Oriental (MAND SP): Life Is Suite

Mandarin Oriental is trading cheap at 0.7x P/B against 1.8x on average (5 years) pre-Covid. Business will continue to improve from here. The...

David Blennerhassett

JCNC Is Overstretched Vs. Astra

If you had set up the stub, I would be unwinding here. I'd look to reverse the stub as and when the current momentum reverses.

David Blennerhassett

StubWorld: Prosus & Naspers Gain On Buyback Funded By Tencent Share Sale

Buying a material percentage of Prosus' float at 40%+, translates to a significant lift in NAV/share accretion, even if Tencent remains static. Go...

David Blennerhassett

Jardine Matheson (JM SP): Reloading The Buyback?

Given JMH's strong underlying performance and discount to NAV, another round of buybacks is feasible. Especially given management was consistently...

David Blennerhassett