Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

<ul>
<li>Four years ago, almost to the day, Bloomberg ran an article, "China Merchants Group Ltd. is exploring taking China Merchants Port Holdings private". <a href="https://www.smartkarma.com/entities/china-merchants-port-holdings-company-ltd" target="_blank" data-smartkarma-citation="entities:15155:1" rel="noopener">China Merchants Ports (144 HK)</a> popped 23%.</li>
<li>CMP gave back (most) of that gain a month later. Shares are up just ~10% since. </li>
<li>CMP's implied stub is bouncing around a multi-year low; and the simple ratio (CMP/ <a href="https://www.smartkarma.com/entities/shanghai-international-port-group-co-ltd" target="_blank" data-smartkarma-citation="entities:14806:1" rel="noopener">Shanghai International Port Group (600018 CH)</a>) is around an all-time low.</li>
</ul>


Four years ago, almost to the day, Bloomberg ran an article, "China Merchants Group Ltd. is exploring taking China Merchants Port Holdings private". China Merchants Ports (144 HK) popped 23%.
CMP gave back (most) of that gain a month later. Shares are up just ~10% since. 
CMP's implied stub is bouncing around a multi-year low; and the simple ratio (CMP/ Shanghai International Port Group (600018 CH)) is around an all-time low.


Revisiting China Merchants Ports (144 HK)

Event-Driven

<ul>
<li>
<a href="https://skr.ma/SRsXc" target="_blank" rel="noopener">StubWorld: GMO Internet (4784) Remains An Avoid. Get Involved With GMO Internet Group (9449 JP)</a> flagged <a href="https://www.smartkarma.com/entities/hang-lung-group-ltd" target="_blank" data-smartkarma-citation="entities:50:1" rel="noopener">Hang Lung (10 HK)</a> as coming up "expensive" to <a href="https://www.smartkarma.com/entities/hang-lung-properties-ltd" target="_blank" data-smartkarma-citation="entities:49:1" rel="noopener">Hang Lung Properties (101 HK)</a>.</li>
<li>Back in January 2024 HLP offered a scrip dividend option, and HLG has taken full advantage, increasing its stake by 4%.</li>
<li>As HLG adds more HLP, long-term deep value play Dodge &amp; Cox gradually sells HLG. That makes things interesting. And HLG's P/B is inexpensive.</li>
</ul>



StubWorld: GMO Internet (4784) Remains An Avoid. Get Involved With GMO Internet Group (9449 JP) flagged Hang Lung (10 HK) as coming up "expensive" to Hang Lung Properties (101 HK).
Back in January 2024 HLP offered a scrip dividend option, and HLG has taken full advantage, increasing its stake by 4%.
As HLG adds more HLP, long-term deep value play Dodge &amp; Cox gradually sells HLG. That makes things interesting. And HLG's P/B is inexpensive.


Hang Lung (10 HK) Is Inexpensive As Dodge & Cox Sells (A Little)

<ul>
<li>Back in January 2024, <a href="https://www.smartkarma.com/entities/hang-lung-properties-ltd" target="_blank" data-smartkarma-citation="entities:49:1" rel="noopener">Hang Lung Properties (101 HK)</a> (HLP) offered a scrip dividend option for FY23, a first for the company. Scrip dividends have been afforded ever since.</li>
<li>HLP's major shareholder, <a href="https://www.smartkarma.com/entities/hang-lung-group-ltd" target="_blank" data-smartkarma-citation="entities:50:1" rel="noopener">Hang Lung (10 HK)</a>, has taken full advantage of this option, increasing its stake by 4%; and potentially up to 5% when factoring in FY25 dividends.</li>
<li>Interestingly, the implied stub has widened since the commencement of scrip dividends, with the market assigning HK$600mn less for the stub ops. </li>
</ul>


Back in January 2024, Hang Lung Properties (101 HK) (HLP) offered a scrip dividend option for FY23, a first for the company. Scrip dividends have been afforded ever since.
HLP's major shareholder, Hang Lung (10 HK), has taken full advantage of this option, increasing its stake by 4%; and potentially up to 5% when factoring in FY25 dividends.
Interestingly, the implied stub has widened since the commencement of scrip dividends, with the market assigning HK$600mn less for the stub ops. 


Hang Lung (10 HK) Is Still Inexpensive. Lack Of Liquidity Not Helping

Asia Real Estate News Tracker, Asia Real Estate Tracker

Asia Real Estate Tracker

Asia Real Estate News Tracker

Tracking developments across Asia's regional real estate markets

Thematic (Sector/Industry)

<ul>
<li>Cbus Property plans to acquire a stake in an Australian shopping mall for $919 million from Lendlease.</li>
<li>Samsung SRA has sold the Gangnam Tower in South Korea to a non-profit organization for $314 million.</li>
<li>IOI Properties has received conditional approval for a substantial $1.9 billion REIT in the latest updates.</li>
</ul>


Cbus Property plans to acquire a stake in an Australian shopping mall for $919 million from Lendlease.
Samsung SRA has sold the Gangnam Tower in South Korea to a non-profit organization for $314 million.
IOI Properties has received conditional approval for a substantial $1.9 billion REIT in the latest updates.


Asia Real Estate Tracker (11-Aug-2026): Cbus Property buys Aussie mall for $919M from Lendlease.

<ul><li>IOI Properties has secured conditional approval for a $1.9 billion Real Estate Investment Trust, marking a significant development in the APAC real estate market.</li><li>Japan's Government Pension Investment Fund reported a record $152 billion gain due to a stock market rally, showcasing the financial strength in the region.</li><li>UAE's Mubadala is pursuing a $6.3 billion data center project in Japan, indicating robust investment activity in the real estate sector across Asia.</li></ul>

IOI Properties has secured conditional approval for a $1.9 billion Real Estate Investment Trust, marking a significant development in the APAC real estate market.Japan's Government Pension Investment Fund reported a record $152 billion gain due to a stock market rally, showcasing the financial strength in the region.UAE's Mubadala is pursuing a $6.3 billion data center project in Japan, indicating robust investment activity in the real estate sector across Asia.

Asia Real Estate Tracker (10-Aug-2026): IOI Properties Secures Approval for $1.9B REIT Deal

Hong Kong

Hang Lung Group is an investment holding company primarily engaged in property leasing, development, and sales. It develops and manages a diversified portfolio of world-class properties, including large-scale commercial complexes, office towers, retail outlets, residential units, and serviced apartments across Hong Kong and Mainland China. The company is headquartered in Hong Kong and was founded on September 13, 1960.

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Hang Lung Group (10 HK)

Revisiting China Merchants Ports (144 HK)

For now, I would expect CMG to continue to chip away at CMP (144 HK)'s minorities - it currently holds 72.02%, up from 63.09% when the...

David Blennerhassett

Hang Lung (10 HK) Is Inexpensive As Dodge & Cox Sells (A Little)

HLG remains dirt cheap at 0.23x P/B, albeit illiquid. Expect HLG to continue to chip away at HLP minorities. I'd be getting some exposure in HLG.

David Blennerhassett

Hang Lung (10 HK) Is Still Inexpensive. Lack Of Liquidity Not Helping

HLG's implied stub has widened since the commencement of the scrip dividends in 2024, with the market assigning HK$600mn less for the stub ops.

David Blennerhassett

Asia Real Estate Tracker (11-Aug-2026): Cbus Property buys Aussie mall for $919M from Lendlease.

Cbus Property will buy a stake in an Australian mall for $919M, Samsung SRA sold Gangnam Tower for $314M, and IOI Properties got conditional...

Asia Real Estate Tracker

Asia Real Estate Tracker (10-Aug-2026): IOI Properties Secures Approval for $1.9B REIT Deal

IOI Properties has secured conditional approval for a $1.9 billion REIT, amid significant APAC real estate developments, including Japan's GPIF's...

Asia Real Estate Tracker

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