Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

Electrical and mechanical (“E&amp;M”) engineering service provider <a href="https://www.smartkarma.com/entities/analogue-holdings-ltd" target="_blank" data-smartkarma-citation="entities:28661:1" rel="noopener">Analogue Holdings Ltd (1977 HK)</a> ("ATAL") has been on a tear lately, up 33% in the past three weeks, and up 58% YTD.
This small-cap company ticks some interesting boxes:
<ul>
<li>The profit attributable to shareholders was up 23% to HK$301.4mn in FY20, despite Covid challenges.</li>
<li>ATAL has net cash of HK$1.1bn vs its market cap of HK$2.8bn.</li>
<li>It is trading at a trailing PER and P/B of 9.2x and 1.4x.</li>
<li>It boasts an excellent payout ratio - 50.3% in FY20. The dividend per share of HK$0.0892 was up 21.3% yoy. That backs out a ~5.1% yield currently.</li>
<li>Despite its size, it has a detailed <a href="https://www.atal.com/" target="_blank" rel="noopener">website</a>, together with a comprehensive <a href="https://doc.irasia.com/listco/hk/analogue/cpresent/pre210401.pdf" target="_blank" rel="noopener">corporate presentation</a>. </li>
<li>It holds a 24.44% stake in <a href="https://www.smartkarma.com/entities/nanjing-canatal-data-centr-a" target="_blank" data-smartkarma-citation="entities:26605:1" rel="noopener">Nanjing Canatal Data Centr-A (603912 CH)</a>. That is held at cost of HK$116.6mn under interests in associates, however, the market value is currently ~HK$1.04bn.</li>
</ul>
Oh...  and David Webb holds <a href="https://di.hkex.com.hk/di/NSForm1.aspx?fn=IS20210520E00305&amp;sa2=ns&amp;sid=246673&amp;corpn=Analogue+Holdings+Ltd.&amp;sd=10%2f06%2f2020&amp;ed=10%2f06%2f2021&amp;cid=0&amp;sa1=cl&amp;scsd=10%2f06%2f2020&amp;sced=10%2f06%2f2021&amp;sc=1977&amp;src=MAIN&amp;lang=EN&amp;" target="_blank" rel="noopener">7.01%</a>.
More below the fold.

Electrical and mechanical (“E&amp;M”) engineering service provider Analogue Holdings Ltd (1977 HK) ("ATAL") has been on a tear lately, up 33% in the past three weeks, and up 58% YTD.
This small-cap company ticks some interesting boxes:

The profit attributable to shareholders was up 23% to HK$301.4mn in FY20, despite Covid challenges.
ATAL has net cash of HK$1.1bn vs its market cap of HK$2.8bn.
It is trading at a trailing PER and P/B of 9.2x and 1.4x.
It boasts an excellent payout ratio - 50.3% in FY20. The dividend per share of HK$0.0892 was up 21.3% yoy. That backs out a ~5.1% yield currently.
Despite its size, it has a detailed website, together with a comprehensive corporate presentation. 
It holds a 24.44% stake in Nanjing Canatal Data Centr-A (603912 CH). That is held at cost of HK$116.6mn under interests in associates, however, the market value is currently ~HK$1.04bn.

Oh...  and David Webb holds 7.01%.
More below the fold.

Event-Driven

Activist and value investor David Webb has the uncanny ability to move stocks.
So much so, after a decade of picking a Xmas stock he liked - and was suitably invested - he abandoned the practice in <a href="https://webb-site.com/articles/pick2009.asp" target="_blank" rel="noopener">December 2009</a>. But not before his stock picks had out-performed the index by 552.8% in the preceding 10 years.
Webb's endorsement of stock, via announcing a substantial interest under Hong Kong Stock Exchange guidelines - i.e. ≥  5% of shares out - still carries significant weight today.
Most recently, he cleared 5% in <a href="https://www.smartkarma.com/entities/analogue-holdings-ltd" target="_blank" data-smartkarma-citation="entities:28661:1" rel="noopener">Analogue Holdings Ltd (1977 HK)</a> on the <a href="https://di.hkex.com.hk/di/NSForm1.aspx?fn=IS20201023E00391&amp;sa2=ns&amp;sid=246673&amp;corpn=Analogue+Holdings+Ltd.&amp;sd=10%2f06%2f2020&amp;ed=10%2f06%2f2021&amp;cid=0&amp;sa1=cl&amp;scsd=10%2f06%2f2020&amp;sced=10%2f06%2f2021&amp;sc=1977&amp;src=MAIN&amp;lang=EN&amp;" target="_blank" rel="noopener">20 October 2020</a>, and currently holds 7.01% as at <a href="https://di.hkex.com.hk/di/NSForm1.aspx?fn=IS20210520E00305&amp;sa2=ns&amp;sid=246673&amp;corpn=Analogue+Holdings+Ltd.&amp;sd=10%2f06%2f2020&amp;ed=10%2f06%2f2021&amp;cid=0&amp;sa1=cl&amp;scsd=10%2f06%2f2020&amp;sced=10%2f06%2f2021&amp;sc=1977&amp;src=MAIN&amp;lang=EN&amp;" target="_blank" rel="noopener">14 May</a>. I looked at the company in <a href="https://skr.ma/7H7sE" target="_blank" rel="noopener">Analogue Holdings (1977 HK): Lift-Off!</a>. Despite the share price run-up (+88%), no doubt largely pivoting off Webb's interest, the stock still looks cheap. 
According to the HKEx, Webb <a href="https://di.hkex.com.hk/di/NSSrchPersonList.aspx?sa1=pl&amp;scsd=21/06/2017&amp;sced=21/06/2021&amp;pn=webb&amp;src=MAIN&amp;lang=EN&amp;g_lang=en" target="_blank" rel="noopener">holds</a> another 21 stocks with a 5% interest or more. 
This insight takes a look at those stocks and analyses how long the "Webb-halo of outperformance" persists.

Activist and value investor David Webb has the uncanny ability to move stocks.
So much so, after a decade of picking a Xmas stock he liked - and was suitably invested - he abandoned the practice in December 2009. But not before his stock picks had out-performed the index by 552.8% in the preceding 10 years.
Webb's endorsement of stock, via announcing a substantial interest under Hong Kong Stock Exchange guidelines - i.e. ≥  5% of shares out - still carries significant weight today.
Most recently, he cleared 5% in Analogue Holdings Ltd (1977 HK) on the 20 October 2020, and currently holds 7.01% as at 14 May. I looked at the company in Analogue Holdings (1977 HK): Lift-Off!. Despite the share price run-up (+88%), no doubt largely pivoting off Webb's interest, the stock still looks cheap. 
According to the HKEx, Webb holds another 21 stocks with a 5% interest or more. 
This insight takes a look at those stocks and analyses how long the "Webb-halo of outperformance" persists. 

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

The Venerable David Webb just increased his position in <a href="https://www.smartkarma.com/entities/analogue-holdings-ltd" target="_blank" data-smartkarma-citation="entities:28661:1" rel="noopener">Analogue Holdings Ltd (1977 HK)</a> as the company is transforming from a traditional E&amp;M player into a smart city and high tech building management company that has won a contract from the HK Housing Authority. <div class="content-highlight">The company is trading at a deep discount to its peers in various valuation multiples but with the amount of cash in the balance sheet, the ex-cash PER is even lower at 5.2x. It has a 5.5% dividend yield that is quite enviable for a small-cap with a growth prospect. What not to like?</div>

The Venerable David Webb just increased his position in Analogue Holdings Ltd (1977 HK) as the company is transforming from a traditional E&amp;M player into a smart city and high tech building management company that has won a contract from the HK Housing Authority. The company is trading at a deep discount to its peers in various valuation multiples but with the amount of cash in the balance sheet, the ex-cash PER is even lower at 5.2x. It has a 5.5% dividend yield that is quite enviable for a small-cap with a growth prospect. What not to like?

Analogue Holding (1977): From E&M to Smart City

Hong Kong

Analogue Holdings Limited operates as an investment holding company. The Company, through its subsidiaries provides building services, environmental engineering building, software development, escalators installation and maintenance services. Analogue Holdings provides services worldwide.

Analogue Holdings Ltd (1977 HK)

Analogue Holdings (1977 HK): Lift-Off!

This is a small-cap company with big ambitions, together with strong corporate governance. I think there is easily 50% upside from here or a HK$3+...

David Blennerhassett

David Webb's Greatest Hits

The sweet spot, on a relative basis, is to remain invested up to around six months after Webb has declared his 5%+ holding. Beyond that, the...

David Blennerhassett

Analogue Holding (1977): From E&M to Smart City

The company is trading at a deep discount to its peers' multiples but the ex-cash PER is even lower at 5.2x. It has a 5.5% dvd yield that is quite...

Henry Soediarko