In today’s briefing:
- Henlius (2696 HK): Interesting Shareholder Movements with the Vote on 22 January
- Ping An Healthcare and Technology (1833 HK) – Cash Dividend Or Scrip Dividend?
- Vesync (2148 HK): A Potential Privatisation?
- EQD | Hong Kong Index Options Weekly – HSI and HSCEI December 16-20
- Monthly Chinese Express Tracker | November Volume, ASPs | Review of YTD Performance (December 2024)
Henlius (2696 HK): Interesting Shareholder Movements with the Vote on 22 January
- Shanghai Henlius Biotech (2696 HK)’s IFA opines that Shanghai Fosun Pharmaceutical (Group) (2196 HK)’s HK$24.60 offer is fair and reasonable. The vote is on 22 January.
- The key condition is approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders rejection). There are recent movements in H Share substantial shareholders.
- Key shareholders should be supportive of the cash/scrip offer. At the last close and for a 15 February payment, the gross/annualised spread is 2.9%/16.9%.
Ping An Healthcare and Technology (1833 HK) – Cash Dividend Or Scrip Dividend?
- Hopson Development (754 HK) is cash-strapped and it will most likely choose cash dividend, which would increase the likelihood that Glorious Peace’s shareholding ratio will increase to more than 50%.
- If PAGD’s share price is higher than HK$6.12, there is arbitrage opportunity. Since Ping An may hope other shareholders to choose cash dividends, future stock price may fall below HK$6.12
- A risk point is Ping An can actually wait for other shareholders to make their choices before making the final decisions based on the stock price situation at that time.
Vesync (2148 HK): A Potential Privatisation?
- Vesync (2148 HK)‘s suspension may suggest privatisation by the Yang family (68.8% stake). With US$192m public float and US$216m net cash, out-of-pocket cash needed is limited.
- 1H24 is decent with a 37.5% earnings growth and 3.3pp margin expansion. The consensus forecast of 4.8% growth in 2H24 is conservative, providing a good opportunity for privatisation.
- Benchmarking the take-out price to the 3-year average P/B will mean a 33% upside while the sector’s average PER multiple implies ~70% higher than the pre-suspension price.
EQD | Hong Kong Index Options Weekly – HSI and HSCEI December 16-20
- Sleepy week highlighted by small closing price ranges that were among the 3-5 quietest of the year.
- Volumes across both indexes were down about 1/3 from the prior week.
- Despite low volumes open interest expanded across out-of-the-money options for both Puts and Calls.
Monthly Chinese Express Tracker | November Volume, ASPs | Review of YTD Performance (December 2024)
- Volume growth & price declines both moderated in November vs preceding months
- We believe most express companies should be experiencing margin expansion in Q424
- We finish with a review 2024’s winners and losers in China’s ecomm fulfillment space
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
