China: Ausnutria Dairy Corp, China Infrastructure & Logistics Group , China Merchants Bank H, China Longyuan Power Group Corp, Mitsubishi UFJ Financial (MUFG), Huitongda, Beijing Chunlizhengda Medical Instruments, Shimao Property Holdings and more

• China’s NDRC approval, a key condition to the Share Purchase Agreement, has been obtained.  SAMR clearance had previously been fulfilled, leaving MoC and SAFE approvals yet to be secured.
• The turnout at Ausnutria Dairy Corp (1717 HK)‘s recent EGM would suggest there is a sufficient number of shares for the MGO to turn unconditional. 
• Provided the Offer becomes unconditional, trading at a gross/annualised spread of 4.4%/22.1%, assuming late 1Q22 completion.

• After shares were halted midday on the 30 December pursuant to the Takeovers Code, China Infrastructure & Logistics Group (1719 HK) (“CILG”) has announced a possible MGO from Hubei Ports.
• Hubei Ports has entered into a SPA with co-chairman Yan Zhi to acquire his 74.81% stake in CILG. Upon completion, this will trigger an unconditional MGO. The price is HK$1.15/share.
• A key condition to the SPA is approval from SASAC of Wuhan, which is turn controls 82.8571% of Hubei Ports. This transaction is done.

• Competitor Call Reveals Numerous Additional Risks Which Will Weigh On Results. 
• No Clarity On Go Forward Core Bottom-Line, Especially Gains and Loss Provisions.
• Reserve to NPLs Looks Overstated, as WMP and Securities Are Included In Loan Reserves.

• Nov and Dec wind generation continue to accelerate on a YoY basis, and it is also noteworthy that other renewable energy generation surged 346% MoM and 992% YoY in Dec.
• SASAC’s latest guidance for the centrally-owned SOEs on installed renewable capacity target of over 50% of total by 2025 is another signal of strong government support on wind power.
• Acceptance by Shenzhen Stock Exchange of Inner Mongolia PingZhuang Energy Resources (000780 CH) listing withdrawal application marks another step towards China Longyuan Power Group Corp (916 HK) return to A-share.

• Huitongda (1566215D CH) is looking to raise up to US$500m in its upcoming Hong Kong IPO.
• While the numbers from the growth of member stores look promising, it did not translate to stronger revenue from member stores and HTD did not give a clear explanation.
• In this note, we look at PHIP updates and competitive landscape.

• Last year end, Beijing Chunlizhengda Medical Instruments (1858 HK) was listed on the SSE STAR Market, but fell on debut. 
• The major concerns include performance slowdown, loss of bidding in centralized procurement, problematic sales model, poor gross profit margin, single products risk and weak innovation capability and international business.
• Our view is that there is no immediate prospect of significant improvement. With too many uncertainties and concerns, we are conservative about Chunlizhengda’s outlook despite the large A/H premium.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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