Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On the 14th May 2026, <a href="https://www.smartkarma.com/entities/ten-pao-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:27241:1" rel="noopener">Ten Pao (1979 HK)</a>, a power-supply and charging device manufacturer, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0514/2026051401480.pdf" target="_blank" rel="noopener">announced</a> the spin-off of its 92.4091%-held charging device arm via an A-share listing.</li>
<li>Shares gained 21% on the news - which were promptly given back, and then some, with shares now down 17% from undisturbed. </li>
<li>
<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0703/2026070302019.pdf" target="_blank" rel="noopener">A circular is now out</a>. A shareholder vote on the carve out has been waived. The transaction requires CSRC approval. </li>
</ul>


On the 14th May 2026, Ten Pao (1979 HK), a power-supply and charging device manufacturer, announced the spin-off of its 92.4091%-held charging device arm via an A-share listing.
Shares gained 21% on the news - which were promptly given back, and then some, with shares now down 17% from undisturbed. 

A circular is now out. A shareholder vote on the carve out has been waived. The transaction requires CSRC approval. 


On Ten Pao (1979 HK)'s Proposed A-Share Spin-Off

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

The appreciation of Rmb against the USD by 6.5% in 2020 has led to many companies recording exchange losses in their FY20 accounts. However, with the Rmb depreciating against USD so far by 0.2% YTD, we believe it is time to look at the victims in last year and see how they will be affected by a weaker Rmb in this year should the trend sustain.Within our coverage, <a href="https://www.smartkarma.com/entities/sinotrans-limited-h" target="_blank" data-smartkarma-citation="entities:1321:1" rel="noopener">Sinotrans (598 HK)</a>, <a href="https://www.smartkarma.com/entities/china-communications-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:265:1" rel="noopener">China Communications Construction (1800 HK)</a>, <a href="https://www.smartkarma.com/entities/shenzhen-intl-holdings" target="_blank" data-smartkarma-citation="entities:9:1" rel="noopener">Shenzhen Intl (152 HK)</a> and <a href="https://www.smartkarma.com/entities/cosco-shipping-energy-tran-h" target="_blank" data-smartkarma-citation="entities:646:1" rel="noopener">Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK)</a> are the key victims in last year with their exchange losses amounting to 5-11% of FY20 profit. Except <a href="https://www.smartkarma.com/entities/shenzhen-intl-holdings" target="_blank" data-smartkarma-citation="entities:9:1" rel="noopener">Shenzhen Intl (152 HK)</a>, we believe the remaining three names will be the beneficiaries under a scenario of weaker Rmb/USD exchange rate.

The appreciation of Rmb against the USD by 6.5% in 2020 has led to many companies recording exchange losses in their FY20 accounts. However, with the Rmb depreciating against USD so far by 0.2% YTD, we believe it is time to look at the victims in last year and see how they will be affected by a weaker Rmb in this year should the trend sustain.Within our coverage, Sinotrans (598 HK), China Communications Construction (1800 HK), Shenzhen Intl (152 HK) and Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK) are the key victims in last year with their exchange losses amounting to 5-11% of FY20 profit. Except Shenzhen Intl (152 HK), we believe the remaining three names will be the beneficiaries under a scenario of weaker Rmb/USD exchange rate. 

A Look on Some Victims of Rmb Appreciation in FY20: How Will They Fare in FY21 if Rmb Stays Weak?

<ul>
<li>Priced at RM10.11/share, <a href="https://www.smartkarma.com/entities/china-resources-new-energy-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:50306:1" rel="noopener">China Resources New Energy (001248 CH)</a> (CRNE) appeared fairly priced on a trailing P/B; to possibly "cheap" on a trailing PER metric, depending on your forecast viewpoint. </li>
<li>However, at ~700x oversubscribed, and given CRNE is part of the vast SOE China Resources Holdings, a pop on debut was a safe bet. CRNE is now up 109%.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-resources-power-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5385:1" rel="noopener">China Resources Power (836 HK)</a>'s 81.8% stake in CRNE accounts for 307% of its market cap. And places the discount to NAV at ~74%,  That's not sustainable. </li>
</ul>


Priced at RM10.11/share, China Resources New Energy (001248 CH) (CRNE) appeared fairly priced on a trailing P/B; to possibly "cheap" on a trailing PER metric, depending on your forecast viewpoint. 
However, at ~700x oversubscribed, and given CRNE is part of the vast SOE China Resources Holdings, a pop on debut was a safe bet. CRNE is now up 109%.

China Resources Power (836 HK)'s 81.8% stake in CRNE accounts for 307% of its market cap. And places the discount to NAV at ~74%,  That's not sustainable. 


Buy CR Power (836 HK) As CRNE (More Than) Doubles On Debut

<ul>
<li>Back on the 15th May 2026, the CSRC approved SOE-backed power play <a href="https://www.smartkarma.com/entities/china-resources-power-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5385:1" rel="noopener">China Resources Power (836 HK)</a>'s A-share listing of its renewable energy unit, China Resources New Energy Group (CRNE).</li>
<li>CRNE's prospectus was lodged on the 10th June, with a tentative listing early July. CRNE's 1Q26 profit was down 28%, with a forecast drop of at least 19% in 1H26E. </li>
<li>
CRNE has been priced at RM10.11/share, raising US$3.8bn, with a post-money market cap of US$20.8bn. CRNE's peer basket is down 21% in the past month. CRP is down 10%.</li>
</ul>


Back on the 15th May 2026, the CSRC approved SOE-backed power play China Resources Power (836 HK)'s A-share listing of its renewable energy unit, China Resources New Energy Group (CRNE).
CRNE's prospectus was lodged on the 10th June, with a tentative listing early July. CRNE's 1Q26 profit was down 28%, with a forecast drop of at least 19% in 1H26E. 

CRNE has been priced at RM10.11/share, raising US$3.8bn, with a post-money market cap of US$20.8bn. CRNE's peer basket is down 21% in the past month. CRP is down 10%.


Update On CR Power (836 HK)'s Clean Energy Spin-Off

We see the joint announcement by five ministries/departments on the development of postal and express industry in the Guangdong-Hong Kong-Macau Greater Bay Area has positive implications on many of the logistics operators in China in the medium to long term. The supporting initiatives range from the strengthening of the strategic hubs of Guangzhou and Shenzhen airports to encouraging more industry consolidations.While many companies are expected to benefit from these GBA postal and express policies, we highlight some of the most important ones in this Insight - <a href="https://www.smartkarma.com/entities/guangzhou-baiyun-international-airport" target="_blank" data-smartkarma-citation="entities:10819:1" rel="noopener">Guangzhou Baiyun International Airport (600004 CH)</a> (GBIA) and <a href="https://www.smartkarma.com/entities/shenzhen-airport-co-ltd" target="_blank" data-smartkarma-citation="entities:15522:1" rel="noopener">Shenzhen Airport Co A (000089 CH)</a>, <a href="https://www.smartkarma.com/entities/china-southern-airlines-co-ltd" target="_blank" data-smartkarma-citation="entities:1078:1" rel="noopener">China Southern Airlines (1055 HK)</a>, <a href="https://www.smartkarma.com/entities/sinotrans-limited-h" target="_blank" data-smartkarma-citation="entities:1321:1" rel="noopener">Sinotrans (598 HK)</a>, <a href="https://www.smartkarma.com/entities/kerry-logistics-network-ltd" target="_blank" data-smartkarma-citation="entities:367:1" rel="noopener">Kerry Logistics Network (636 HK)</a>, <a href="https://www.smartkarma.com/entities/shenzhen-intl-holdings" target="_blank" data-smartkarma-citation="entities:9:1" rel="noopener">Shenzhen Intl (152 HK)</a> and <a href="https://www.smartkarma.com/entities/maanshan-dingtai-rare-a" target="_blank" data-smartkarma-citation="entities:4128:1" rel="noopener">S.F. Holding (002352 CH)</a>.

We see the joint announcement by five ministries/departments on the development of postal and express industry in the Guangdong-Hong Kong-Macau Greater Bay Area has positive implications on many of the logistics operators in China in the medium to long term. The supporting initiatives range from the strengthening of the strategic hubs of Guangzhou and Shenzhen airports to encouraging more industry consolidations.While many companies are expected to benefit from these GBA postal and express policies, we highlight some of the most important ones in this Insight - Guangzhou Baiyun International Airport (600004 CH) (GBIA) and Shenzhen Airport Co A (000089 CH), China Southern Airlines (1055 HK), Sinotrans (598 HK), Kerry Logistics Network (636 HK), Shenzhen Intl (152 HK) and S.F. Holding (002352 CH).

China Logistics: Key Beneficiaries of China's Greater Bay Area Postal and Express Development

Hong Kong

Shenzhen International Holdings Limited invests in, constructs, and operates logistics infrastructure facilities, including logistics parks, toll roads, and ports. The company also provides third-party logistics services, logistics information services, and general environmental protection businesses, offering value-added services like intelligent warehousing and integrated cold chain solutions. The company is headquartered in Hong Kong.

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Shenzhen International (152 HK)

A Look on Some Victims of Rmb Appreciation in FY20: How Will They Fare in FY21 if Rmb Stays Weak?

We expect Sinotrans, CCCC and CSET to be the beneficiaries of weaker Rmb against USD in this year. However, due to its ownership in Shenzhen...

Osbert Tang, CFA

Buy CR Power (836 HK) As CRNE (More Than) Doubles On Debut

CRP has barely registered CRNE's bigly price gain on debut. The question is whether it will. CRP is totally misproced versus its holding in CRNE....

David Blennerhassett

Update On CR Power (836 HK)'s Clean Energy Spin-Off

CR Power is a BUY after 81.81%-held (after over-allotment) China Resources New Energy Group (001248 CH) opened at RMB21.60 versus an IPO price of...

David Blennerhassett

China Logistics: Key Beneficiaries of China's Greater Bay Area Postal and Express Development

China's support of postal and express industry development in the Greater Bay Area has positive implications on many logistics companies. We...

Osbert Tang, CFA

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On Ten Pao (1979 HK)'s Proposed A-Share Spin-Off

If illiquid, long-dated, events are your thing, keep tabs on this stock. The spin-off may be worth upward of HK$7.6bn - or ~160% of Ten Pao's...

David Blennerhassett

A Look on Some Victims of Rmb Appreciation in FY20: How Will They Fare in FY21 if Rmb Stays Weak?

We expect Sinotrans, CCCC and CSET to be the beneficiaries of weaker Rmb against USD in this year. However, due to its ownership in Shenzhen...

Osbert Tang, CFA

Buy CR Power (836 HK) As CRNE (More Than) Doubles On Debut

CRP has barely registered CRNE's bigly price gain on debut. The question is whether it will. CRP is totally misproced versus its holding in CRNE....

David Blennerhassett

Update On CR Power (836 HK)'s Clean Energy Spin-Off

CR Power is a BUY after 81.81%-held (after over-allotment) China Resources New Energy Group (001248 CH) opened at RMB21.60 versus an IPO price of...

David Blennerhassett

China Logistics: Key Beneficiaries of China's Greater Bay Area Postal and Express Development

China's support of postal and express industry development in the Greater Bay Area has positive implications on many logistics companies. We...

Osbert Tang, CFA