HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>While <a href="https://www.smartkarma.com/entities/cimc-enric-holdings-ltd" target="_blank" data-smartkarma-citation="entities:47:1" rel="noopener">CIMC Enric Holdings (3899 HK)</a>'s share price has lagged YTD, its 3Q25 and 9M25 results look decent with 6.2% and 12.9% YoY increase, respectively.</li>
<li>Its backlog orders amount of Rmb30.8bn, up by 10.9% YoY, is a record high. This is already enough to cover the full-year FY26 projected revenue.</li>
<li>With a 13.4% 3-year EPS CAGR, its PERs are inexpensive. Meanwhile, it is in an excellent position to thrive under China's 15th Five-Year Plan (2026-2030).</li>
</ul>


While CIMC Enric Holdings (3899 HK)'s share price has lagged YTD, its 3Q25 and 9M25 results look decent with 6.2% and 12.9% YoY increase, respectively.
Its backlog orders amount of Rmb30.8bn, up by 10.9% YoY, is a record high. This is already enough to cover the full-year FY26 projected revenue.
With a 13.4% 3-year EPS CAGR, its PERs are inexpensive. Meanwhile, it is in an excellent position to thrive under China's 15th Five-Year Plan (2026-2030).


CIMC Enric (3899 HK): A Laggard That Is Poised to Revive

Shanghai Electric Group / Equity Bottom-Up

<ul>
<li>With a 37.3% rally in <a href="https://www.smartkarma.com/entities/shanghai-electric-group-company-limited-d542164d-4d5a-4ce0-b33e-5fe6bc34722c" target="_blank" data-smartkarma-citation="entities:8777:1" rel="noopener">Shanghai Electric Group Company (2727 HK)</a>'s share price in the last 5 trading days, it is poised for a correction, which is a long-term opportunity. </li>
<li>Key positive drivers include its Fanuc Robots earnings, progress in China's nuclear fusion project, solid new order momentum, and speculation on asset acquisition.</li>
<li>PER valuations are not cheap, but this is understandable due to the company's transition. However, its 1.5x P/B multiple is not outrageously expensive relative to peers.</li>
</ul>


With a 37.3% rally in Shanghai Electric Group Company (2727 HK)'s share price in the last 5 trading days, it is poised for a correction, which is a long-term opportunity. 
Key positive drivers include its Fanuc Robots earnings, progress in China's nuclear fusion project, solid new order momentum, and speculation on asset acquisition.
PER valuations are not cheap, but this is understandable due to the company's transition. However, its 1.5x P/B multiple is not outrageously expensive relative to peers.


Shanghai Electric (2727 HK): High Risk, High Return

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Jilin Jiutai Rural Commercial Bank / Event-Driven

Jilin Jiutai Rural Commercial Bank (2JJ GR)

<ul>
<li>Back on the 3rd July 2025, Jilin Province Trust must a voluntary Offer at HK$0.70/share (~0.23x P/B!!) for troubled rural commercial bank <a href="https://www.smartkarma.com/entities/jilin-jiutai-rural-comm-bank" target="_blank" data-smartkarma-citation="entities:23735:1" rel="noopener">Jilin Jiutai Rural Comm Bank (6122 HK)</a>. </li>
<li>Shares have been suspended since 12th March. Jilin Jiutai have yet to publish their 2024 annual results. It's doubtful shares will resume trading. Ever. </li>
<li>
The Composite Doc Booklet is now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0910/2025091000391.pdf" target="_blank" rel="noopener">out</a>, with a H-share class meeting on the 24th October, the same day as the first close. The IFA (Gram) says "fair &amp; reasonable".</li>
</ul>


Back on the 3rd July 2025, Jilin Province Trust must a voluntary Offer at HK$0.70/share (~0.23x P/B!!) for troubled rural commercial bank Jilin Jiutai Rural Comm Bank (6122 HK). 
Shares have been suspended since 12th March. Jilin Jiutai have yet to publish their 2024 annual results. It's doubtful shares will resume trading. Ever. 

The Composite Doc Booklet is now out, with a H-share class meeting on the 24th October, the same day as the first close. The IFA (Gram) says "fair &amp; reasonable".


Jilin Jiutai Bank (6122 HK): Take The Offer. It Is What It Is

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dongfang-electric-corporation-limited" target="_blank" data-smartkarma-citation="entities:1251:1" rel="noopener">Dongfang Electric (1072 HK)</a>'s recent rally following the Yarlung Zangbo hydropower project announcement appears overdone, as it now trades more than 3SD above average. </li>
<li>We estimate that, even with generous assumptions, the project will add 11.5% of revenue of its annual revenue. This seems unmatched with the 52.7% share price jump.</li>
<li>1Q25 has performed well and deserves a re-rating, but the current extent is excessive. Fair value for the next three years is HK$18-22.8, at best.</li>
</ul>



Dongfang Electric (1072 HK)'s recent rally following the Yarlung Zangbo hydropower project announcement appears overdone, as it now trades more than 3SD above average. 
We estimate that, even with generous assumptions, the project will add 11.5% of revenue of its annual revenue. This seems unmatched with the 52.7% share price jump.
1Q25 has performed well and deserves a re-rating, but the current extent is excessive. Fair value for the next three years is HK$18-22.8, at best.


Dongfang Electric (1072 HK): Is There Any Room Left After the Rally?

<ul>
<li>Three for three. Three low-balled Hong Kong Offers, by way of Schemes, have now lapsed over the past ten weeks. </li>
<li>Both <a href="https://www.smartkarma.com/entities/goldlion-holdings-ltd" target="_blank" data-smartkarma-citation="entities:12359:1" rel="noopener">Goldlion Holdings (533 HK)</a> and <a href="https://www.smartkarma.com/entities/soundwill-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19318:1" rel="noopener">Soundwill Holdings (878 HK)</a> spectacularly failed back in May.</li>
<li>Now <a href="https://www.smartkarma.com/entities/dickson-concepts-intl-ltd" target="_blank" data-smartkarma-citation="entities:5052:1" rel="noopener">Dickson Concepts Intl (113 HK)</a> has followed suit. But the vote was (much) closer than it should have been.</li>
</ul>


Three for three. Three low-balled Hong Kong Offers, by way of Schemes, have now lapsed over the past ten weeks. 
Both Goldlion Holdings (533 HK) and Soundwill Holdings (878 HK) spectacularly failed back in May.
Now Dickson Concepts Intl (113 HK) has followed suit. But the vote was (much) closer than it should have been.


Dickson Concept (113 HK): More Minority Teeth Bared As Another Scheme Fails

China

Harbin Electric Company Limited is primarily engaged in the manufacturing and sales of power-generation equipment. Its core activities include manufacturing complete sets of large-scale thermal, hydro, and nuclear power generation equipment, providing turnkey engineering for power plant projects, and developing marine propulsion systems and electric drive units. The company was founded in October 1994 and is headquartered in Harbin, China.

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Harbin Electric (1133 HK)

CIMC Enric (3899 HK): A Laggard That Is Poised to Revive

CIMC Enric has just suspended its trading. The company is expected to make a placement of 79.7m new shares at HK$9.79 (4.5% discount to the share...

Osbert Tang, CFA

Shanghai Electric (2727 HK): High Risk, High Return

Shanghai Electric is set for a correction after the recent rally, but a long-term opportunity is seen. Positive drivers include Fanuc Robots'...

Osbert Tang, CFA

Jilin Jiutai Bank (6122 HK): Take The Offer. It Is What It Is

Jilin Jiutai is suspended, so there is nothing to be done, if not in. If you hold shares, vote for the Offer, then tender. It is what it is. The...

David Blennerhassett

Dongfang Electric (1072 HK): Is There Any Room Left After the Rally?

DEC's rally post Yarlung Zangbo hydropower project announcement seems excessive as it trades over 3SD above average, with project revenue...

Osbert Tang, CFA

Dickson Concept (113 HK): More Minority Teeth Bared As Another Scheme Fails

This is a consistently profitable company. The undisturbed price was $4.78. Yet the HSI is up ~12.8% since the Offer was announced, so perhaps...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

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CIMC Enric (3899 HK): A Laggard That Is Poised to Revive

CIMC Enric has just suspended its trading. The company is expected to make a placement of 79.7m new shares at HK$9.79 (4.5% discount to the share...

Osbert Tang, CFA

Shanghai Electric (2727 HK): High Risk, High Return

​Shanghai Electric is set for a correction after the recent rally, but a long-term opportunity is seen. Positive drivers include Fanuc Robots'...

Osbert Tang, CFA

Jilin Jiutai Bank (6122 HK): Take The Offer. It Is What It Is

Jilin Jiutai is suspended, so there is nothing to be done, if not in. If you hold shares, vote for the Offer, then tender. It is what it is. The...

David Blennerhassett

Dongfang Electric (1072 HK): Is There Any Room Left After the Rally?

​DEC's rally post Yarlung Zangbo hydropower project announcement seems excessive as it trades over 3SD above average, with project revenue...

Osbert Tang, CFA

Dickson Concept (113 HK): More Minority Teeth Bared As Another Scheme Fails

This is a consistently profitable company. The undisturbed price was $4.78. Yet the HSI is up ~12.8% since the Offer was announced, so perhaps...

David Blennerhassett

Shanghai Electric is set for a correction after the recent rally, but a long-term opportunity is seen. Positive drivers include Fanuc Robots'...

DEC's rally post Yarlung Zangbo hydropower project announcement seems excessive as it trades over 3SD above average, with project revenue...