Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/keppel-corp-ltd" target="_blank" data-smartkarma-citation="entities:12:1" rel="noopener">Keppel Corp (KEP SP)</a> shareholders vote next week. <a href="https://www.smartkarma.com/entities/sembcorp-marine-ltd" target="_blank" data-smartkarma-citation="entities:11:1" rel="noopener">Sembcorp Marine (SMM SP)</a> shareholders are awaiting their Circular. Expect both sets of shareholders will approve. The optics and performance look good.</li>
<li>
<a href="https://www.smartkarma.com/entities/carbon-revolution-ltd" target="_blank" data-smartkarma-citation="entities:29071:1" rel="noopener">Carbon Revolution Ltd (CBR AU)</a>  SPAC Offer is a high-cost red-herring. Management who support this takeover should be fired.</li>
<li>Nintendo Founder Family Office "YFO" bought 25+% of <a href="https://www.smartkarma.com/entities/toyo-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:1176:1" rel="noopener">Toyo Construction (1890 JP)</a>, then offered to buy it out. Negotiations are ongoing. We still don't really know what is going on. </li>
</ul>



Keppel Corp (KEP SP) shareholders vote next week. Sembcorp Marine (SMM SP) shareholders are awaiting their Circular. Expect both sets of shareholders will approve. The optics and performance look good.

Carbon Revolution Ltd (CBR AU)  SPAC Offer is a high-cost red-herring. Management who support this takeover should be fired.
Nintendo Founder Family Office "YFO" bought 25+% of Toyo Construction (1890 JP), then offered to buy it out. Negotiations are ongoing. We still don't really know what is going on. 


Last Week in Event SPACE: Keppel/Sembcorp, Carbon Revolution, Toyo Construction, Fuji Oil, Toshiba

<ul>
<li>The data in this insight is collated from the "shareholding disclosure" link on the HKEx website.</li>
<li>Often there is a corresponding HKEx announcement on the increase - or decrease - in the shareholding by directors. However, such disclosures are by no means an absolute. </li>
<li>These insights may flag those companies where shares have been pledged. Stocks mentioned include: <a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a>, <a href="https://www.smartkarma.com/entities/hong-kong-aerospace-technology-group-limited" target="_blank" data-smartkarma-citation="entities:33813:1" rel="noopener">Hong Kong Aerospace Technology (1725 HK)</a>, and <a href="https://www.smartkarma.com/entities/esr-group-limited" target="_blank" data-smartkarma-citation="entities:27983:1" rel="noopener">ESR Group (1821 HK)</a>.</li>
</ul>


The data in this insight is collated from the "shareholding disclosure" link on the HKEx website.
Often there is a corresponding HKEx announcement on the increase - or decrease - in the shareholding by directors. However, such disclosures are by no means an absolute. 
These insights may flag those companies where shares have been pledged. Stocks mentioned include: Perfect Medical Health (1830 HK), Hong Kong Aerospace Technology (1725 HK), and ESR Group (1821 HK).


Hong Kong CEO & Director Dealings (2 Dec): Perfect Medical, Hong Kong Aerospace, ESR Group, Tian An

Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

Perfect Medical Health / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a> showed a resilient set of numbers for H1 2023, with profits down only 30% despite losing a month in HK and more in China.</li>
<li>With over 700 mn HKD in cash (18% of market capitalization), PE of 12.4x FY23e/8.5x FY24e, and dividend yields of 8.5%FY23e/12.4%FY24e it trades on an exciting yield/valuation.</li>
<li>Catalysts for the company include the reopening of China (&gt;20% of revenue), the recovery of HK(70% of revenue), and expansion into newer business lines and geographies.</li>
</ul>



Perfect Medical Health (1830 HK) showed a resilient set of numbers for H1 2023, with profits down only 30% despite losing a month in HK and more in China.
With over 700 mn HKD in cash (18% of market capitalization), PE of 12.4x FY23e/8.5x FY24e, and dividend yields of 8.5%FY23e/12.4%FY24e it trades on an exciting yield/valuation.
Catalysts for the company include the reopening of China (&gt;20% of revenue), the recovery of HK(70% of revenue), and expansion into newer business lines and geographies.


Perfect Medical: Double From Here, Recovery, 8% Div Yield, and 20+% CAGR Growth

<ul>
<li>Post the massive correction in the China market, <a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a> trades at 9.6x/6.9x PE FY23e/24e with a 10.4%/14.6% dividend yield assuming a 100% payout ratio.</li>
<li>From interactions with the management, HK's operations are in good health, with Q2 revenues normalizing to precovid levels. China has yet to recover as intermittent lockdowns plague its operations. </li>
<li>With cash and financial investments over 550 mn HKD ( 16% of market capitalization ), the company has the opportunity to make accretive acquisitions to grow its business.</li>
</ul>


Post the massive correction in the China market, Perfect Medical Health (1830 HK) trades at 9.6x/6.9x PE FY23e/24e with a 10.4%/14.6% dividend yield assuming a 100% payout ratio.
From interactions with the management, HK's operations are in good health, with Q2 revenues normalizing to precovid levels. China has yet to recover as intermittent lockdowns plague its operations. 
With cash and financial investments over 550 mn HKD ( 16% of market capitalization ), the company has the opportunity to make accretive acquisitions to grow its business.


Perfect Medical: Correction Provides An Opportunity For Entry

<ul>
<li>
<a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a> is a recovery play for HK/China beauty trading at 11.8x PE FY23, with a dividend yield of 8.5% (assuming a 100% payout).</li>
<li>With net cash (including investments) of 565 mn HKD ( &gt; 10% of market cap ), the company is primed for M&amp;A in an environment where restrictions have weakened competitors.</li>
<li>The chairman's recent buying of shares ( representing a 0.41% stake ) and the company share repurchase ( representing 0.08%)  indicate the company's confidence in its prospects. </li>
</ul>



Perfect Medical Health (1830 HK) is a recovery play for HK/China beauty trading at 11.8x PE FY23, with a dividend yield of 8.5% (assuming a 100% payout).
With net cash (including investments) of 565 mn HKD ( &gt; 10% of market cap ), the company is primed for M&amp;A in an environment where restrictions have weakened competitors.
The chairman's recent buying of shares ( representing a 0.41% stake ) and the company share repurchase ( representing 0.08%)  indicate the company's confidence in its prospects. 


Perfect Medical 1830 HK: The Perfect HK Recovery Play

Hong Kong

Perfect Medical Health Management (previously Perfect Shape Medical Limited) offers slimming and beauty treatments. The Company provides fat softens and dissolves services, laser freckle services, and other services. Perfect Shape Medical offers services in China.

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Perfect Medical Health (1830 HK)

Last Week in Event SPACE: Keppel/Sembcorp, Carbon Revolution, Toyo Construction, Fuji Oil, Toshiba

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Hong Kong CEO & Director Dealings (2 Dec): Perfect Medical, Hong Kong Aerospace, ESR Group, Tian An

The data in this insight is collated from the "shareholding disclosure" link on the HKEx website. These insights also flag those companies where...

David Blennerhassett

Perfect Medical: Double From Here, Recovery, 8% Div Yield, and 20+% CAGR Growth

With over 700 mn HKD in cash (18% of market capitalization), PE of 12.4x FY23e/8.5x FY24e, and dividend yields of 8.5%FY23e/12.4%FY24e Perfect...

Sameer Taneja

Perfect Medical: Correction Provides An Opportunity For Entry

Post the massive correction in the China market, Perfect Medical Health (1830 HK) trades at 9.6x/6.9x PE FY23e/24e with a 10.4%/14.6% dividend...

Sameer Taneja

Perfect Medical 1830 HK: The Perfect HK Recovery Play

Perfect Medical Health (1830 HK) is a recovery play for HK/China beauty trading at 11.8x PE FY23, with a dividend yield of 8.5% (assuming a 100%...

Sameer Taneja

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