Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Hainan Meilan International Airport / Event-Driven

<ul>
<li>Given the change of control into <strong><a href="https://www.smartkarma.com/entities/hainan-meilan-international-airport-company-limited" target="_blank" data-smartkarma-citation="entities:12545:1" rel="noopener">Meilan Airport (357 HK)</a></strong>, was, in effect, a  re-arrangement of Meilan Airport shares under the same ultimate parent, the regulatory approval process curiously dragged.</li>
<li>Yesterday Meilan Airport announced all SPA conditions have now been satisfied, and that the SPA should complete in 20 business days. A Composite Doc will then be issued.</li>
<li>Trading almost at terms. This is a back-end proposition play. My peer basket is up 11%, on average, since the Offer was first announced. Asian peers are up 15%.</li>
</ul>


Given the change of control into Meilan Airport (357 HK), was, in effect, a  re-arrangement of Meilan Airport shares under the same ultimate parent, the regulatory approval process curiously dragged.
Yesterday Meilan Airport announced all SPA conditions have now been satisfied, and that the SPA should complete in 20 business days. A Composite Doc will then be issued.
Trading almost at terms. This is a back-end proposition play. My peer basket is up 11%, on average, since the Offer was first announced. Asian peers are up 15%.


Meilan Airport (357 HK)'s SPA (Finally) Done. Now For The HK$10.62/Share MGO

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>On 30 April, Haikou Meilan International Airport entered a SPA with <a href="https://www.smartkarma.com/entities/hainan-airport-infrastructure-co-ltd" target="_blank" data-smartkarma-citation="entities:1233:1" rel="noopener">Hainan Airport Infrastructure (600515 CH)</a> to sell its <a href="https://www.smartkarma.com/entities/hainan-meilan-international-airport-company-limited" target="_blank" data-smartkarma-citation="entities:12545:1" rel="noopener">Hainan Meilan International Airport (357 HK)</a> 50.19% stake at RMB9.85 (HK$10.62).</li>
<li>The SPA precondition is satisfied, and the SPA will be completed within 20 business days. Completion will trigger an unconditional MGO at HK$10.62.</li>
<li>Tendering is likely to be low as the offer is unattractive. At the last close and for a mid-February 2026 payment, the gross/annualised spread is 0.2%/1.1%.</li>
</ul>


On 30 April, Haikou Meilan International Airport entered a SPA with Hainan Airport Infrastructure (600515 CH) to sell its Hainan Meilan International Airport (357 HK) 50.19% stake at RMB9.85 (HK$10.62).
The SPA precondition is satisfied, and the SPA will be completed within 20 business days. Completion will trigger an unconditional MGO at HK$10.62.
Tendering is likely to be low as the offer is unattractive. At the last close and for a mid-February 2026 payment, the gross/annualised spread is 0.2%/1.1%.


Meilan Airport (357 HK): SPA Precondition Satisfied, Setting up an Unconditional MGO at HK$10.62

<ul>
<li>Back on the 30th April 2025, <strong><a href="https://www.smartkarma.com/entities/hainan-meilan-international-airport-company-limited" target="_blank" data-smartkarma-citation="entities:12545:1" rel="noopener">Hainan Meilan International Airport (357 HK)</a> ("Meilan Airport") </strong><a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0430/2025043004181.pdf" target="_blank" rel="noopener">announced</a> a potential change of control, via its domestic shares.</li>
<li>In principle, this situation involves the re-arrangement of Meilan Airport shares under the same ultimate beneficiary. Nevertheless, the share transfer will trigger an unconditional MGO at HK$10.62/share. </li>
<li>Yesterday, H-class shareholders <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/1106/2025110601740.pdf" target="_blank" rel="noopener">approved</a> a "Special Deal" at an EGM. And the share price closed above terms. That vote has nothing to do with the share transfer. Perhaps ...</li>
</ul>


Back on the 30th April 2025, Hainan Meilan International Airport (357 HK) ("Meilan Airport") announced a potential change of control, via its domestic shares.
In principle, this situation involves the re-arrangement of Meilan Airport shares under the same ultimate beneficiary. Nevertheless, the share transfer will trigger an unconditional MGO at HK$10.62/share. 
Yesterday, H-class shareholders approved a "Special Deal" at an EGM. And the share price closed above terms. That vote has nothing to do with the share transfer. Perhaps ...


Meilan Airport (357 HK)'s Special Deal And Tardy MGO

Greater China Equity Long/Short Analyst

Eric Chen

Equity Bottom-Up

Hainan Meilan International Airport / Equity Bottom-Up

<ul>
<li>A slew of bad news from weak China consumption, depreciating RMB to negative progress in an arbitration sent Meilan Airport stock down to below book value.</li>
<li>Yet when it comes to the fundamental of the company itself, we believe concerns are over-blown and very much priced in.</li>
<li>Meilan Airport is the most under-valued major airport in China airport space in our view. Patience will pay off.</li>
</ul>


A slew of bad news from weak China consumption, depreciating RMB to negative progress in an arbitration sent Meilan Airport stock down to below book value.
Yet when it comes to the fundamental of the company itself, we believe concerns are over-blown and very much priced in.
Meilan Airport is the most under-valued major airport in China airport space in our view. Patience will pay off.


Meilan Airport (357 HK): Positive on The Only China Airport Trading Below Book Value

<ul>
<li>Meilan Airport is both a strategic asset and a key beneficiary in China’s blueprint for Hainan. The hub holds an indispensable yet underappreciated position in Hainan’s DFS market.</li>
<li>While jump in depreciation and plunging passenger traffic in 2022 dealt heavy blow to the company, they also pave the way for a strong turnaround as re-opening revives travel demand.</li>
<li>We expect the company’s net profit to reach RMB600 million in 2023 and further double to RMB1.2 billion by 2025, driving share price to double in three years.</li>
</ul>


Meilan Airport is both a strategic asset and a key beneficiary in China’s blueprint for Hainan. The hub holds an indispensable yet underappreciated position in Hainan’s DFS market.
While jump in depreciation and plunging passenger traffic in 2022 dealt heavy blow to the company, they also pave the way for a strong turnaround as re-opening revives travel demand.
We expect the company’s net profit to reach RMB600 million in 2023 and further double to RMB1.2 billion by 2025, driving share price to double in three years.


Meilan Airport (357 HK): A Strategic Asset to Ride on Hainan DFS Investment Theme

China

Hainan Meilan International Airport Company Limited provides airfield services, terminal facilities, ground handling services, passenger and cargo handling services. The Company also leases commercial and retail space at the Meilan Airport, operates airport-related business franchising, advertising, car parking, tourism services, and sells duty-free and consumable goods.

Hainan Meilan International Airport (357 HK)

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Hainan Meilan International Airport (357 HK)

Meilan Airport (357 HK): SPA Precondition Satisfied, Setting up an Unconditional MGO at HK$10.62

Tendering is likely to be low as the offer is unattractive. At the last close and for a mid-February 2026 payment, the gross/annualised spread is...

Arun George

Meilan Airport (357 HK)'s Special Deal And Tardy MGO

The SPA/MGO is a clean deal for Meilan Airport. I previously mused this may trade through terms given the change of control. I have no strong...

David Blennerhassett

Meilan Airport (357 HK): Positive on The Only China Airport Trading Below Book Value

50% market cap wiped off left Meilan Airport as the only China airport trading below book value. We believe the airport's fundamentals are not as...

Eric Chen

Meilan Airport (357 HK): A Strategic Asset to Ride on Hainan DFS Investment Theme

As a strategic asset, Meilan airport is an indispensable yet underappreciated play on Hainan DFS investment theme. We see 100% upside in return as...

Eric Chen

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Meilan Airport (357 HK)'s SPA (Finally) Done. Now For The HK$10.62/Share MGO

The MGO is unconditional. I have no strong conviction on the back-end. The Offer Price was only a 10.6% premium to undisturbed. Expect this to...

David Blennerhassett

Meilan Airport (357 HK): SPA Precondition Satisfied, Setting up an Unconditional MGO at HK$10.62

Tendering is likely to be low as the offer is unattractive. At the last close and for a mid-February 2026 payment, the gross/annualised spread is...

Arun George

Meilan Airport (357 HK)'s Special Deal And Tardy MGO

The SPA/MGO is a clean deal for Meilan Airport. I previously mused this may trade through terms given the change of control. I have no strong...

David Blennerhassett

Meilan Airport (357 HK): Positive on The Only China Airport Trading Below Book Value

50% market cap wiped off left Meilan Airport as the only China airport trading below book value. We believe the airport's fundamentals are not as...

Eric Chen

Meilan Airport (357 HK): A Strategic Asset to Ride on Hainan DFS Investment Theme

As a strategic asset, Meilan airport is an indispensable yet underappreciated play on Hainan DFS investment theme. We see 100% upside in return as...

Eric Chen