In today’s briefing:
- Quiddity Leaderboard CSI 300/500 Jun25: End of Reference Period Soon; ~US$6bn Total One-Way
- Giant Biogene Placement – Great Track Record but Previous Deal Didn’t Do Well
- StubWorld: Swire Is “Rich” To Cathay; And Cathay “Cheap” To Air China
- Anta (2020 HK): Acquired Jack Wolfskin, Still Financial Momentum, Upgrade to Buy
- Asia Real Estate Tracker (16-Apr-2025): Singapore’s LHN Group wants SGX listing for Coliwoo Co-Living.
- CR Beverage (2460 HK): Keep Calm Heading into the Lock-Up Expiry
- Canvest (1381 HK): 12th May Vote On Grandblue’s Offer
- China East Education (667 HK): In an Excellent Position
- Lucror Analytics – Morning Views Asia
- Manycore Pre-IPO: Losses Narrowed but Future Growth May Be Lower
Quiddity Leaderboard CSI 300/500 Jun25: End of Reference Period Soon; ~US$6bn Total One-Way
- CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500 names.
- In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in June 2025.
- Currently, we see 6 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index.
Giant Biogene Placement – Great Track Record but Previous Deal Didn’t Do Well
- Giant Biogene (2367 HK) aims to raise up to US$250m via a top-up placement.
- We have followed the company since listing and its recent performance has been great. Although it doesn’t seem to need the cash and the previous deal didn’t go well.
- In this note, we will run the deal through our ECM framework and talk about the recent updates.
StubWorld: Swire Is “Rich” To Cathay; And Cathay “Cheap” To Air China
- Swire Pacific (A) (19 HK) is coming up “rich” on my monitor vs. Cathay Pacific Airways (293 HK); and Cathay “cheap” to Air China Ltd (H) (753 HK).
- Preceding my comments on Swire and Cathay are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Anta (2020 HK): Acquired Jack Wolfskin, Still Financial Momentum, Upgrade to Buy
- The acquisition of Jack Wolfskin means the brand portfolio strategy still works.
- The financial potential is NOT as weak as the 2024 result looks.
- We conclude an upside of 40% and a price target of HK$122 for the next twelve months.
Asia Real Estate Tracker (16-Apr-2025): Singapore’s LHN Group wants SGX listing for Coliwoo Co-Living.
- LHN Group intends to list Coliwoo Co-Living on SGX, expanding their presence in the real estate market.
- C&W reports a significant 42% drop in office rents in Hong Kong, reflecting the changing landscape post-Q1 2019.
- PGIM Real Estate promotes David Fassbender to Deputy Head of APAC, indicating a shift in leadership within the company.
CR Beverage (2460 HK): Keep Calm Heading into the Lock-Up Expiry
- China Resources Beverage (2460 HK) trades 4.0% below its IPO of HK$14.50 per share. The first six-month lock-up period expires on 22 April.
- At the end of the first lock-up expiry, shares representing 727.1m (30.32% of outstanding) will be eligible for sale. However, there is a low risk of substantial sales.
- The fundamentals remain good, with margin improvement, beverage’s fast-paced growth, narrowing of the margin gap with Nongfu and undemanding valuation.
Canvest (1381 HK): 12th May Vote On Grandblue’s Offer
- On the 22 July 2024, waste-to-energy play Canvest Environmental (1381 HK)announced a pre-conditional Offer from Grandblue Environment (600323 CH) at $4.90/share (best & final), by way of a Scheme.
- On the 17th March 2025, all pre-conditions were (finally) satisfied.
- The Scheme Doc is now out, with a Court Meeting on the 12th May, with payment on or before the 10th June. The IFA (Somerley) says “fair & reasonable“.
China East Education (667 HK): In an Excellent Position
- China East Education (667 HK) remains well-positioned in the government’s support of vocational education, despite its YTD outperformance.
- Higher average tuition per student, better cost control, accelerating growth in the “Fashion and Beauty” segment, and new course introduction are the main profit drivers.
- Net cash equals 17.2% of the share price, while other peers are struggling with debt repayment. Coupled with stronger earnings CAGR, its premium PERs are justified.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Seazen Group
- In the US, the import price index slipped to negative 0.1% m-o-m (0.0% e / 0.2% revised p) in March. The index excludes tariff duties paid by importers to US Customs and Border Protection.
- Long-end treasury yields fell for a second day, supported by Deputy Treasury Secretary Michael Faulkender’s statements that officials are discussing easing the supplementary lending requirements to lower the costs of trading treasuries for banks.
Manycore Pre-IPO: Losses Narrowed but Future Growth May Be Lower
- Manycore Tech (KOOL US) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
- Manycore (MC) is a fast-growing, disruptive design and visualization platform powered by artificial intelligence (AI) technologies and purpose-built graphic processing unit (GPU) clusters.
- In this note, we look at the firm’s past performance.
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