Daily Brief China: Vesync, Qingdao Haier Biomedical Lt, China Southern Airlines and more

In today’s briefing:

Vesync (2148 HK): The Yang Family’s Scheme Offer Is Light but Likely Done
China Healthcare Weekly (Dec.29) – Haier Biomedical Plans to Merge with and Absorb Shanghai RAAS
Monthly Chinese Tourism Tracker | Outbound, Domestic Both Solid | TCOM: 2024’s Best (December 2024)

Vesync (2148 HK): The Yang Family’s Scheme Offer Is Light but Likely Done

Vesync (2148 HK) disclosed a Cayman scheme privatisation offer from the Yang family at HK$5.60, a 33.3% premium to the last close price of HK$4.20. The offer is final.
While the offer is marginally above the IPO price, it is light compared to sell-side price targets, peer multiples and historical trading ranges.
Nevertheless, the scrip option, irrevocables and no disinterested shareholder holding a blocking stake facilitate the scheme vote. The offer could be completed by May.

Haier Biomedical plans to merge with and absorb Shanghai RAAS through the issuance of shares, and both parties have signed a letter of intent for the potential merger.
Haier’s acquisition of RAAS helps connect the software and hardware of the blood industry and strengthen the company’s dominant position in the entire industry chain in the blood products industry.
The market value/financial performance of these two are far apart. If the acquisition is completed, it will help Haier improve financial performance, which is obviously more beneficial for Haier.

Almost two years into China’s travel recovery, November outbound activity grew strongly
Domestic air travel demand also showed solid growth, has accelerated since Spring ’24
Trip.com best performing stock in this group in ’24, but it no longer offers much value

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