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.

Event-Driven

Xiamen International Port H / Event-Driven

<ul>
<li>The pre-condition for <a href="https://www.smartkarma.com/entities/xiamen-international-port-h" target="_blank" data-smartkarma-citation="entities:5390:1" rel="noopener">Xiamen International Port H (3378 HK)</a>’s privatisation offer from Xiamen Port Holding is satisfied. The offer is HK$2.25 per H share. </li>
<li>The key conditions are approval by at least 75% of independent H Shareholders (&lt;10% of all independent H Shareholders' rejection). There is no minimum acceptance condition.</li>
<li>The offer is attractive. At last close and for a 21 October payment, the gross and annualised spread to the offer is 2.7% and 16.0%, respectively.</li>
</ul>


The pre-condition for Xiamen International Port H (3378 HK)’s privatisation offer from Xiamen Port Holding is satisfied. The offer is HK$2.25 per H share. 
The key conditions are approval by at least 75% of independent H Shareholders (&lt;10% of all independent H Shareholders' rejection). There is no minimum acceptance condition.
The offer is attractive. At last close and for a 21 October payment, the gross and annualised spread to the offer is 2.7% and 16.0%, respectively.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/xiamen-international-port-h" target="_blank" data-smartkarma-citation="entities:5390:1" rel="noopener">Xiamen International Port H (3378 HK)</a> announced a pre-conditional privatisation offer from Xiamen Port Holding at HK$2.25 per H share + final dividend of RMB0.021 per share (ex-div: 15 June). </li>
<li>The key conditions are approval by at least 75% of independent H Shareholders (&lt;10% of all independent H Shareholders' rejection). There is no minimum acceptance condition.  </li>
<li>The offer is attractive in comparison to historical share prices and multiples. We think that the privatisation proposal will likely succeed. At the last close, the gross spread is 55.2%.</li>
</ul>



Xiamen International Port H (3378 HK) announced a pre-conditional privatisation offer from Xiamen Port Holding at HK$2.25 per H share + final dividend of RMB0.021 per share (ex-div: 15 June). 
The key conditions are approval by at least 75% of independent H Shareholders (&lt;10% of all independent H Shareholders' rejection). There is no minimum acceptance condition.  
The offer is attractive in comparison to historical share prices and multiples. We think that the privatisation proposal will likely succeed. At the last close, the gross spread is 55.2%.


Xiamen Port’s Juicy HK$2.25 Per H Share Privatisation Offer

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

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

Thematic (Sector/Industry)

For investors who are not based in Singapore, the mini lockdown in Singapore has started again due to the sudden increase in the number of community cases which previously was relatively under control. Before one thinks that it is a too-harsh of a policy, the rate of the increase of unlinked community cases in Singapore is high. This matters a lot because every Singapore residents need to check in every establishment using either an Identification card, Trace Together app, or token which has proved to be very effective as for months, most of the COVID-19 cases can be traced and therefore allows the government to take the necessary actions. 
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This time is different. Alongside the third wave that has hit India and Thailand, Singapore, too, is hit. The Singapore government's response to this is very much like the first lock-down (Circuit Breaker), that they minimize public interactions so that the number of community cases does not increase and provide them with the time to perform contact tracing thoroughly. 
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In this report, we identify that <a href="https://www.smartkarma.com/entities/sheng-siong-group-ltd" target="_blank" data-smartkarma-citation="entities:6824:1" rel="noopener">Sheng Siong (SSG SP)</a> , <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> and <a href="https://www.smartkarma.com/entities/singapore-post-ltd" target="_blank" data-smartkarma-citation="entities:150:1" rel="noopener">Singapore Post (SPOST SP)</a>as winners while <a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP)</a> and <a href="https://www.smartkarma.com/entities/genting-singapore-ltd" target="_blank" data-smartkarma-citation="entities:439:1" rel="noopener">Genting Singapore (GENS SP)</a>as losers.

For investors who are not based in Singapore, the mini lockdown in Singapore has started again due to the sudden increase in the number of community cases which previously was relatively under control. Before one thinks that it is a too-harsh of a policy, the rate of the increase of unlinked community cases in Singapore is high. This matters a lot because every Singapore residents need to check in every establishment using either an Identification card, Trace Together app, or token which has proved to be very effective as for months, most of the COVID-19 cases can be traced and therefore allows the government to take the necessary actions. 

This time is different. Alongside the third wave that has hit India and Thailand, Singapore, too, is hit. The Singapore government's response to this is very much like the first lock-down (Circuit Breaker), that they minimize public interactions so that the number of community cases does not increase and provide them with the time to perform contact tracing thoroughly. 

In this report, we identify that Sheng Siong (SSG SP) , Sea Ltd (SE US) and Singapore Post (SPOST SP)as winners while Comfortdelgro Corp (CD SP) and Genting Singapore (GENS SP)as losers. 

Singapore Mini Lockdown: Winners and Losers

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/360" target="_blank" data-smartkarma-citation="entities:360:1">COSCO Shipping Ports Ltd (1199 HK)</a> will become <a href="https://www.smartkarma.com/entities/19462" target="_blank" data-smartkarma-citation="entities:19462:1">Qingdao Port International Co Ltd (6198 HK)</a>'s second-largest shareholder following the subscription of shares amounting to a 16.8% stake. We think the acquisition will strengthen CSP’s operation in northeast Asia, given QPI’s well-located assets: a major hub in the region, which is ranked No. 4 and No. 6 in container and bulk handling volumes domestically.However, the pricey valuation reduces the attractiveness of the deal, and the consideration of CNY 5.71 per share implying 2.2 times price/book, compared with only 0.6 times for CSP’s existing assets, as well as a 40% premium to QPI’s current trading level. The deal is subject to regulatory and independent shareholders’ approvals, and we maintain both our earnings forecasts and our fair value estimate of HKD 10.00 per share pending additional details, but expect 3%-4% earnings upside upon completion of deal.Analyst: Jennifer Song

COSCO Shipping Ports Ltd (1199 HK) will become Qingdao Port International Co Ltd (6198 HK)'s second-largest shareholder following the subscription of shares amounting to a 16.8% stake. We think the acquisition will strengthen CSP’s operation in northeast Asia, given QPI’s well-located assets: a major hub in the region, which is ranked No. 4 and No. 6 in container and bulk handling volumes domestically.However, the pricey valuation reduces the attractiveness of the deal, and the consideration of CNY 5.71 per share implying 2.2 times price/book, compared with only 0.6 times for CSP’s existing assets, as well as a 40% premium to QPI’s current trading level. The deal is subject to regulatory and independent shareholders’ approvals, and we maintain both our earnings forecasts and our fair value estimate of HKD 10.00 per share pending additional details, but expect 3%-4% earnings upside upon completion of deal.Analyst: Jennifer Song

Acquisition of QPI Favors CSP's Long-Term Strategic Position, But Valuation Is Unattractive

Portfolio Manager,  Equity Long Short Fund, Thirdrock Capital 

Shawn Tan

Portfolio Manager,  Equity Long Short Fund

Thirdrock Capital 

Qingdao Port International / Equity Bottom-Up

A well run deep water port in a good location is a stable and attractive business as competition tends to be muted.  Qingdao Port continued to raise prices and volumes in the last couple of years despite weak global trade volumes.  This speaks to the strength of its franchise.  Own a piece of this well placed and resilient port operator at a fantastic price.

A well run deep water port in a good location is a stable and attractive business as competition tends to be muted.  Qingdao Port continued to raise prices and volumes in the last couple of years despite weak global trade volumes.  This speaks to the strength of its franchise.  Own a piece of this well placed and resilient port operator at a fantastic price.

China

Qingdao Port International Co., Ltd. engages in providing a wide range of port related services, ranging from basic port services, such as stevedoring and  storage services, to ancillary and extended services such  as logistics service sand financing-related services.

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Qingdao Port International (6198 HK)

Xiamen Port’s Pre-Condition Satisfied

The pre-condition is satisfied. Interims are on 26 August. At last close and for a 21 October payment, the annualised spread to the offer is 16.0%....

Arun George

Singapore Mini Lockdown: Winners and Losers

In this report, we identify that Sheng Siong (SSG SP) , Sea Ltd (SE US) and Singapore Post (SPOST SP)as winners while Comfortdelgro Corp (CD SP)...

Henry Soediarko

Acquisition of QPI Favors CSP's Long-Term Strategic Position, But Valuation Is Unattractive

COSCO Shipping Ports Ltd (1199 HK) will become Qingdao Port International Co Ltd (6198 HK)'s second-largest shareholder following the subscription...

Morningstar, Inc.

A Valuable Find in Qingdao

A well run deep water port in a good location is a stable and attractive business as competition tends to be muted. Qingdao Port continued to...

Shawn Tan

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Xiamen Port’s Pre-Condition Satisfied

The pre-condition is satisfied. Interims are on 26 August. At last close and for a 21 October payment, the annualised spread to the offer is 16.0%....

Arun George

Xiamen Port’s Juicy HK$2.25 Per H Share Privatisation Offer

Xiamen Port Holding will offer HK$2.25 per H share + a final dividend of RMB0.021 per share. The offer is attractive in comparison to historical...

Arun George

Singapore Mini Lockdown: Winners and Losers

In this report, we identify that Sheng Siong (SSG SP) , Sea Ltd (SE US) and Singapore Post (SPOST SP)as winners while Comfortdelgro Corp (CD SP)...

Henry Soediarko

Acquisition of QPI Favors CSP's Long-Term Strategic Position, But Valuation Is Unattractive

COSCO Shipping Ports Ltd (1199 HK) will become Qingdao Port International Co Ltd (6198 HK)'s second-largest shareholder following the subscription...

Morningstar, Inc.

A Valuable Find in Qingdao

A well run deep water port in a good location is a stable and attractive business as competition tends to be muted. Qingdao Port continued to...

Shawn Tan