In today’s briefing:
- Shandong Hi-Speed New Energy (1250 HK)’s Unconditional MGO Now Open
- The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (January 25)
- Dada Nexus (DADA US): JD.Com’s US$2/ADS Non-Binding Offer
- Azeus Systems (AZEUS SP): Defensive B2B SaaS Developer with Accelerating Growth
- EQD | Tactically Overbought HSI May Start Pulling Back After Lunar New Year
- Lucror Analytics – Morning Views Asia
- Asia Real Estate Tracker (28-Jan-2025): SC Capital buys Fukuoka Hilton from Mizuho for $420M
- Goertek Microelectronics Pre-IPO Tearsheet
Shandong Hi-Speed New Energy (1250 HK)’s Unconditional MGO Now Open
- Back on the 27 December, Shandong Hi-Speed Holdings (412 HK) completed two SPAs, elevating its stake in Shandong Hi-Speed New Energy (1250 HK) to 56.97% from 43.45%, triggering an unconditional MGO.
- The Composite Doc is now out, and the Offer is open for tendering. The close of the Offer is the 18th Feb, 21 days out. Don’t expect an extension.
- The IFA has declared the terms fair & reasonable. Which is probably true.
The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (January 25)
- The HSTECH index is trading higher on higher breadth and momentum in January, up 6% so far. Analysts project an upside of 23% over 12 months.
- China’s semiconductor sector is advancing this year from AI enthusiasm and accelerated localization in the chip industry. Semiconductor Manufacturing International Corp (SMIC) (981 HK) shares have benefited from this trend.
- Sunny Optical Technology Group (2382 HK) benefits from China’s announcement that it will subsidize more consumer products, including smartphones and new vehicles.
Dada Nexus (DADA US): JD.Com’s US$2/ADS Non-Binding Offer
- On the 27th January, Dada Nexus (DADA US), a Chinese on-demand retail and delivery platform, announced a preliminary non-binding proposal from JD.com (9618 HK).
- JD.com, a 63.2% shareholder, is offering US$0.50/share (US$2.00/ADS), a 42% premium to last close. Should a definitive agreement be inked, this is done.
- DADA has formed a committee to evaluate the proposal. The risk to the trade, as with many US-listed China plays, is one of timing. Trading at a 11.1% gross spread.
Azeus Systems (AZEUS SP): Defensive B2B SaaS Developer with Accelerating Growth
- Azeus Systems Holdings Ltd. (SGX: AZEUS SP) is a leading global IT solutions provider with over 30 years of experience, specializing in board governance and digital transformation solutions. The company’s flagship product, Convene, serves boardrooms and executive teams across more than 100 countries, with additional offerings like Convene AGM, Convene Records, and Convene ESG, tailored to meet specific enterprise needs.
- Two Business Segments: Azeus Products and IT Services. These segments cater to a diverse clientele with tailored solutions that address specific operational and strategic needs of Azeus’s clients. Azeus Products account for the lion’s share of revenue, at 81% as shown below.
- Convene Flagship Product: Convene is a leading board governance solution for boardrooms and executives, offering secure document sharing, real-time collaboration, voting tools, analytics, and workflow automation to streamline decision-making. Its user-friendly interface and mobile compatibility make it popular among enterprises and governments. Azeus also offers additional Convene-branded products for specific use cases.
EQD | Tactically Overbought HSI May Start Pulling Back After Lunar New Year
- In our previous, Jan 11th. insight, we said the HSI INDEX could find support between 18.8K and 17.5K, and rally, and so it did (the bottom was at 18671).
- Since there the index has been rallying for 3 weeks, >8% returns so far.
- This insight is focused on tactical strategy: the Hang Seng Index may be readying for a new pullback, starting next week, so we are going to look at resistance levels.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Energy Solutions, China Water Affairs, Anton Oilfield, Tata Steel, China Vanke
- In the US, December 2024 new-home sales rose 3.6% m-o-m (1.7% e / 9.6% revised p) to an annualised 698 k units. Full-year newhome sales were up 2.5% y-o-y at 683 k units, with the median sale price rising 2.1% to USD 427 k.
- Treasuries rallied on haven demand amid a sell-off in equities, as well as on the back of a strong 5Y notes auction. The yield on the 2Y UST declined 7 bps to 4.20%, while the yield on the 10Y UST fell 9 bps to 4.54%.
Asia Real Estate Tracker (28-Jan-2025): SC Capital buys Fukuoka Hilton from Mizuho for $420M
- SC Capital purchased the Fukuoka Hilton in Japan from Mizuho Leasing for $420M in a significant Hotel REIT transaction.
- GIC has divested its stake in a London office project to Modon, a move that indicates strategic restructuring for the company.
- Despite a rise in revenue, CapitaLand Ascott Trust’s 2H 2024 payout decreased by 7%, reflecting potential challenges in the market.
Goertek Microelectronics Pre-IPO Tearsheet
- Goertek Inc A (002241 CH) is looking to raise up to US$400m in its upcoming Hong Kong IPO. The deal will be run by CICC, CSI, CMB and UBS.
- It is a world-leading provider of smart sensing interaction solutions.
- Anchored by its robust one-stop smart sensing interaction platform, the firm is dedicated to driving the transformation of next-generation smart sensing interactions in collaboration with global ecosystem partners.
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