In today’s briefing:
- Poon Moves On Dickson Concepts (113 HK)’s Cash Hoard?
- Pop Mart (9992 HK): Eye-Popping Growth. Is It the Next Pokémon for Kidults?
- Dickson Concepts (113 HK): Controlling Shareholder to Privatise a Negative EV Play?
- Wanda Hotel (169 HK) To Offload Hotel Management Arm
- CiDi Pre-IPO – Promising Company Amid Strong Industry Tailwinds & Narrowing Losses
- Lucror Analytics – Morning Views Asia
- Asia Real Estate Tracker (24-Apr-2025): Lone Star buys Yokohama block for hotel project.
Poon Moves On Dickson Concepts (113 HK)’s Cash Hoard?
- Dickson Concepts Intl (113 HK) (DC), which is principally engaged in the sale of luxury goods business, is suspended pursuant to the Takeovers Code.
- DC’s Chairman, Dickson Poon (& spouse), hold 60.5%. Super-net-cash rich DC is trading in sync with historical metrics. 1H25 (Mar Y/E) net profit dropped 40.1%. Shares are roughly flat yoy.
- Given DC’s cash hoard, taking the company private makes sense. I doubt Poon is seeking to exit his stake.
Pop Mart (9992 HK): Eye-Popping Growth. Is It the Next Pokémon for Kidults?
- Pop Mart International Group L (9992 HK) ’s stock has nearly doubled in three months, fueled by surging revenue and the breakout popularity of its Labubu dolls.
- Driven by strong international expansion and solid omni-channel demand in its home market, Pop Mart reported over 165% revenue growth in 1Q2025 compared to the same period last year.
- Investors remain split on whether Pop Mart’s unconventional products and marketing are driven by lasting fandom or just a passing trend.
Dickson Concepts (113 HK): Controlling Shareholder to Privatise a Negative EV Play?
- Dickson Concepts Intl (113 HK) has entered a trading halt “pending the release of an announcement pursuant to The Code on Takeovers and Mergers, which constitutes inside information of the Company.”
- The controlling shareholder (Sir Poon) is likely seeking to launch a privatisation through a Bermuda scheme, particularly as the shares trade below net cash.
- While no disinterested shareholder holds a blocking stake, the headcount test and a decent AGM participation rate necessitate an attractive offer. The potential offer price range is HK$5.60-9.24.
Wanda Hotel (169 HK) To Offload Hotel Management Arm
- Wanda Hotel Development (169 HK), 65.05% held by Wang Jianlin, is selling its hotel property arm to Tencent (700 HK) and Trip.com (9961 HK)-backed Tongcheng Travel Holdings (780 HK).
- Wang Jianlin’s cash-strapped Dalian Wanda Group has been offloading assets such as the $8.3bn sale of its mall management business to a PAG-led consortium in March last year.
- Wanda Hotel proposes distributing all or part of the proceeds from the sale. Given Wang’s controlling shareholding, I’d tilt towards the former.
CiDi Pre-IPO – Promising Company Amid Strong Industry Tailwinds & Narrowing Losses
- CiDi Inc. is looking to raise about US$200m in its upcoming Hong Kong IPO.
- CiDi is a leading autonomous driving technology provider for commercial vehicles in China, with a strong foothold in the autonomous mining segment.
- The company stands to benefit from sustained industry tailwinds. While still in its early stages, CiDi has made progress in narrowing its losses.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: China Hongqiao, Softbank Group, Vedanta Resources, China Oil & Gas, Biocon Biologics
- In the US, new home sales jumped 7.4% m-o-m (1.3% e / 3.1% revised p) to an annualised 724 k units in March, driven by a surge in home sales in the South. The March (final) building permits rose 0.5% to an annualised 1.47 mn units.
- Separately, the S&P manufacturing PMI edged up to 50.7 (49.0 e / 50.2 p), while the services PMI fell to 51.4 (52.6 e / 54.4 p). The composite PMI declined to 51.2 (52.0 e / 53.5 p).
Asia Real Estate Tracker (24-Apr-2025): Lone Star buys Yokohama block for hotel project.
- Lone Star acquires Yokohama apartment block from Mapletree for hotel project, expanding their investment portfolio in the real estate sector.
- Former executives from BlackRock and CapitaLand, including Simon Treacy, are taking on leadership roles in the energy startup PolarBlue.
- It is important to stay positive and keep moving forward in the face of challenges, as success is attainable with perseverance and determination.
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