ChinaDaily Briefs

China: Kerry Logistics Network, Nature Home Holding Company, Tam Jai International, China Education Group, AIM Vaccine, Hyundai Motor Co, Biel Crystal, Shui On Land and more

In today’s briefing:

  • Kerry Logistics (636 HK): Sell Here As Opposed To Tendering
  • Nature Home (2083 HK): Scheme Doc Out. Court Meeting On 6 Oct. Evergrande Overhang
  • Tam Jai International IPO: A Big Appetite For Growth Under Toridoll’s Control
  • China Education (839 HK): More Flows of Positive Development
  • Pre-IPO AIM Vaccine – Insights on Key Products, Pipeline and Concerns
  • 10 New Deals incl. Seazen, Hyundai, OUE; Macro; Rating Changes; New Issues; Talking Heads; Top Ga…
  • Biel Crystal (伯恩光学) Pre-IPO – Industry Landscape & Peer Comparison –  Auto Is the Wildcard
  • Morning Views Asia: Fantasia Holdings Group Co, Ronshine China Holdings, Shui On Land

Kerry Logistics (636 HK): Sell Here As Opposed To Tendering

By David Blennerhassett

The Partial Offer for Kerry Logistics Network (636 HK), announced on the 9 February, closes on the 16 September.

The record date for the interim dividend (HK$0.211/share) was the 13 September. The record date for the special dividend (HK$7.28/share) is the 15 September.

Shares are now trading ex- both dividends.

You can still tender into the Offer – but not buy and tender.

If you tender, you still receive the special dividend.

But if you intend to tender into the Offer, with a minimum pro-ration of 76.02%, you should simply sell in the market here at HK$18.60 and get 100% filled.

More below the fold.


Nature Home (2083 HK): Scheme Doc Out. Court Meeting On 6 Oct. Evergrande Overhang

By David Blennerhassett

Following its suspension “pursuant to the Code of Takeovers and Mergers” on the 19 July, wood flooring manufacturer Nature Home Holding Company (2083 HK) announced on the 27 July an Offer from its founding shareholders, by way of a Scheme, at HK$1.70/share, bang in line with my earlier estimate. The Offer Price will not be increased. Nature Home does not intend to declare any dividends during the Offer period.  Dehua Tb New Decoration A (002043 CH) has given an irrevocable rollover undertaking for its 19.6% stake. 

The Scheme Document was despatched last night. The Court Meeting is scheduled for the 6 October and provided all resolutions pass, cheques are expected to be despatched on or before the 26 October.

This Offer still looks done. The IFA considers the terms to be fair and reasonable, but also flags uncertainty as to Nature Home’s financial position and operating cash flow on account of its outstanding trade receivables with Evergrande. 

More below the fold.


Tam Jai International IPO: A Big Appetite For Growth Under Toridoll’s Control

By Oshadhi Kumarasiri

  • Rice noodle chain operator, Tam Jai International (TJI HK) completed its listing hearing and received approval for the proposed US$100.0m IPO on the Hong Kong Stock Exchange on 13th September 2021.
  • TORIDOLL Holdings Corporation (3397 JP), the biggest operator of noodle shops in Japan, took control of stagnating TamJai and SamGor restaurant chains in 2018 from its founder to restructure and turn around the noodle chains to fast growth and highly profitable businesses.
  • We like Tam Jai International under Toridoll’s management as Toridoll seems capable of taking the popular TamJai and SamGor restaurant brands global while continuing to expand TamJai’s and SamGor’s presence in the domestic market (Hong Kong).

China Education (839 HK): More Flows of Positive Development

By Osbert Tang, CFA

We take the recent newsflow on business development at China Education Group (839 HK) positively. While the market may still skeptical towards the company due to the sector’s regulatory worries, CEG is standing in a better position than many of its peers given its focus on the vocational and higher education segment. In our view, the beaten-down performance of CEG’s share price is not justified, and it is an interesting time to look at its long-term promising outlook now.   

The 58% increase in approval higher education enrollment quota for 2021/2022 academic year, upside from contribution of the newly added Chengdu Jincheng College, support from banks and IFC through provisions of seven-year loan facilities at low pricing, rapid execution of M&A and further potential pipeline acquisitions all lend support to CEG’s business prospects amid a turbulent time. Our belief is that at 13.5x PER for FY22, CEG is inexpensively priced relative to growth.


Pre-IPO AIM Vaccine – Insights on Key Products, Pipeline and Concerns

By Xinyao (Criss) Wang

The global spread of COVID-19 has given the vaccine industry unprecedented attention. With the increasing prosperity of the industry, many vaccine companies are increasingly enthusiastic about going public. On Sep 12, 2021, AIM Vaccine (AIM HK) submitted its listing application to the HKEX and officially started its IPO process. AIM is a leading vaccine company that covers the full value chain from R&D to manufacturing and to commercialization. This insight mainly analyzed AIM in terms of the industry characteristics, the key vaccine products, the vaccine pipeline and related concerns of the Company.


10 New Deals incl. Seazen, Hyundai, OUE; Macro; Rating Changes; New Issues; Talking Heads; Top Ga…

By BondEvalue

US markets ended the day mixed – S&P was up 0.2% snapping a week-long losing streak while tech heavy Nasdaq slid 0.1% lower making a fourth straight day of losses. Energy and Financials up 2.9% and 1.1% respectively stood out among the gainers while Healthcare was the prominent loser, down 0.6%. European stocks reversed some of last week’s losses – FTSE and DAX gained 0.6% each and CAC added 0.2%. Brazil’s Bovespa surged 1.9% to start the week. Major stock markets in the Gulf ended mixed, with UAE’s ADX falling 0.7% while Saudi’s TASI reversed early losses to close 0.4% higher. Asian markets have started the day in the green – Nikkei was up more than 0.6%, Shanghai and Singapore’s STI were up more than 0.3% and HSI was broadly flat. US 10Y Treasury yields were flat at 1.33%. US IG and HY CDX spreads tightened 0.6bp and 2.1bp respectively. EU Main CDS spreads were 0.1bp wider and Crossover CDS spreads widened 0.5bp. Asia ex-Japan CDS spreads widened 0.3bp. US inflation will be keenly watched out for with the CPI release due today. It’s a rather busy day for the Asian primary markets with 10 new bond deals launched this morning.

Biel Crystal (伯恩光学) Pre-IPO – Industry Landscape & Peer Comparison –  Auto Is the Wildcard

By Zhen Zhou, Toh

Biel Crystal (0924581D HK) is looking to raise up to US$2bn in its upcoming Hong Kong IPO. 

Biel Crystal (BC) is the largest smart device enclosure and module solution provider in terms of shipment value in 2020 with a market share of 17.6%, according to Frost & Sullivan (F&S). BC’s products are used in end products such as smartphones, tablets, smart watches, AR, and VR glasses as well as automobiles.

In this note, we will look at the industry landscape and compare BC to other Apple suppliers.

We covered the IPO previously in:


Morning Views Asia: Fantasia Holdings Group Co, Ronshine China Holdings, Shui On Land

By Charles Macgregor

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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