Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Watch accessory play <a href="https://www.smartkarma.com/entities/hengdeli-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15178:1" rel="noopener">Hengdeli Holdings (3389 HK)</a> is currently<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0617/2024061700059.pdf" target="_blank" rel="noopener"> suspended</a> pursuant to the Takeovers Code.</li>
<li>Potentially founder Zhang Yuping (holding 17%), CEO Tony Cheung (16%) and/or <a href="https://www.smartkarma.com/entities/swatch-group-ag" target="_blank" data-smartkarma-citation="entities:22591:1" rel="noopener">Swatch Group (UHR SW)</a> (9.94%) may table an Offer. My money is on Zhang.</li>
<li>This is a very illiquid name. What is interesting is that Hengdeli has net cash of HK$1.3bn - as at 31 December 2023 - against a market cap of HK$0.59bn.</li>
</ul>


Watch accessory play Hengdeli Holdings (3389 HK) is currently suspended pursuant to the Takeovers Code.
Potentially founder Zhang Yuping (holding 17%), CEO Tony Cheung (16%) and/or Swatch Group (UHR SW) (9.94%) may table an Offer. My money is on Zhang.
This is a very illiquid name. What is interesting is that Hengdeli has net cash of HK$1.3bn - as at 31 December 2023 - against a market cap of HK$0.59bn.


Hengdeli Holdings (3389 HK): Negative EV Play Halted

Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

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

Equity Bottom-Up

<ul><li><a href="https://www.smartkarma.com/entities/19950" target="_blank" data-smartkarma-citation="entities:19950:1">Oriental Watch Holdings (398 HK)</a> is a HK/China watch retailer listed in HK since 1993</li><li>Rental prices in HK have dropped sharply and consumer sentiment in HK is improving</li><li>Oriental reached peak valuation of 6.2 HKD in July 2011</li><li>Oriental bottomed at 0.9 HKD in July 2016</li><li>With shares recently around 1.75 HKD they have doubled from last year but are still very cheap</li><li>Market cap is 1B HKD (128M USD) but EV only 221M HKD (28M USD)</li><li>First Half results showed turnaround, Second Half to be even better</li><li>Management moving to 90% payout as expansion plans are on hold: potential 10% yield in 2018</li><li>Fair Value: should trade at least at 0.75x book (2.9 HKD), or 65% upside </li></ul>

Oriental Watch Holdings (398 HK) is a HK/China watch retailer listed in HK since 1993Rental prices in HK have dropped sharply and consumer sentiment in HK is improvingOriental reached peak valuation of 6.2 HKD in July 2011Oriental bottomed at 0.9 HKD in July 2016With shares recently around 1.75 HKD they have doubled from last year but are still very cheapMarket cap is 1B HKD (128M USD) but EV only 221M HKD (28M USD)First Half results showed turnaround, Second Half to be even betterManagement moving to 90% payout as expansion plans are on hold: potential 10% yield in 2018Fair Value: should trade at least at 0.75x book (2.9 HKD), or 65% upside 

Oriental Watch: 0.45x Book, 2x 2018 Ex-Cash P/E, 78% of Mkt Cap Is Cash; 10% Dividend Likely in 2018

Hong Kong

Hengdeli Holdings Limited primarily engages in the manufacturing and sale of high-end consuming accessories for watches, jewelry, and cosmetics. The company also provides commercial space design and decoration services, and is involved in international commodity trading of iron ore, thermal coal, and coking coal, along with related supply chain services. It is headquartered in Hong Kong and was founded in 1957.

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Hengdeli (3389 HK)

Hengdeli Holdings (3389 HK): Negative EV Play Halted

Shares are currently suspended, so there is nothing to be done yet. My bet is founder Zhang makes an Offer. And Cheung (CEO) and Swatch give...

David Blennerhassett

Oriental Watch: 0.45x Book, 2x 2018 Ex-Cash P/E, 78% of Mkt Cap Is Cash; 10% Dividend Likely in 2018

Oriental Watch Holdings (398 HK) is a HK/China watch retailer listed in HK since 1993 Rental prices in HK have dropped sharply and consumer...

Nicolas Van Broekhoven

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