ChinaDaily Briefs

China: Yashili International Holdings, SenseTime Group, JCET Group, Yunkang Group and more

In today’s briefing:

  • Yashili (1230 HK)’s Pre-Conditional Offer From Mengniu
  • Index Rebalance & ETF Flow Recap: KOSPI200, KQ150, CSI300, STAR50, SET50, China A50, HSCI, SenseTime
  • Yashili’s HK$1.20 Privatisation Offer from Mengniu
  • JCET (600584.CH): 2022 Outlook Should Be Better than Fear
  • Yunkang Group IPO – Futile to Try and Gauge Its Post-COVID Performance

Yashili (1230 HK)’s Pre-Conditional Offer From Mengniu

By David Blennerhassett


Index Rebalance & ETF Flow Recap: KOSPI200, KQ150, CSI300, STAR50, SET50, China A50, HSCI, SenseTime

By Brian Freitas


Yashili’s HK$1.20 Privatisation Offer from Mengniu

By Arun George

  • Danone SA (BN FP) will sell to China Mengniu Dairy Co (2319 HK) its 25% Yashili stake for HK$1.20 per share. Post-completion, Mengniu will launch a privatisation offer at HK$1.20.  
  • The privatisation is subject to several pre-conditions, which carry low risk in our view. The key conditions are the headcount test and rejections by <10% of all disinterested shareholders.
  • The offer for Yashili International Holdings (1230 HK) is attractive. At the last close, the gross spread to the offer is 30.4%. Buy up to HK$1.09 (implies an 85% deal probability).

JCET (600584.CH): 2022 Outlook Should Be Better than Fear

By Patrick Liao

  • JCET reported revenue/GM RMB$8,138mn/10.7% in 1Q22, which grew 21.2% YoY and 0.5% QoQ.
  • We expect that its growth would continue and likely reach to revenue/GM for about RMB$8,234.5mn/10.8% in 2Q22.
  • Although the mainland China insists in the Zero Policy against COVID-19, the GDP growth was targeting at ~5.5% in 2022. 

Yunkang Group IPO – Futile to Try and Gauge Its Post-COVID Performance

By Clarence Chu

  • Yunkang Group (2325 HK) is looking to raise US$139m in its Hong Kong IPO.
  • Yunkang Group has grown its on-site diagnostics centers and has grand plans to add new centers with the IPO proceeds.
  • However, its business performance had been largely impacted by COVID, where COVID-related tests amounted to 83.6% of total tests performed in FY21, while contributing 58.1% to total revenue.

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