In today’s briefing:
- Cayman Islands: Headcount To Be Decapitated On 31 August
- Nikkei 225 Index Rebalance Preview: Consultation Conclusions & Potential Changes in Sep & March
- Hong Kong CEO & Director Dealings – 1st August 2022
- Miniso’s Word Against Short Seller Blue Orca’s Facts
- HS Holdings (8699 JP) – Huge Q1, Even Better Q2 Ahead, The 2nd To Last Asset Sale… And a Pawnshop?
- KT Corp: Close to Selling Its Subsidiary KT Submarine to LS Cable & System
- Minority Shareholders Go Activist on DB Hitek
Cayman Islands: Headcount To Be Decapitated On 31 August
- The Companies (Amendment) Act 2021 of the Cayman Islands (Amendment Act), which will come into force on 31 August 2022, will abolish the current ‘headcount test’.
- Those companies incorporated in the Cayman Islands, and subject to a members’ Scheme of Arrangement, were previously required to satisfy the headcount test under section 86 of the Companies Act.
- This development clarifies previous uncertainty/ambiguity which could arise, with ‘take private’ deals of Cayman-incorporated, Hong Kong-listed companies, where a Scheme is the favoured privatisation path.
Nikkei 225 Index Rebalance Preview: Consultation Conclusions & Potential Changes in Sep & March
- With the review period for the September rebalance of the Nikkei 225 (NKY INDEX) complete, we take a look at the potential inclusions and exclusions for the index.
- The conclusions of the market consultation have been announced and that will mean we switch to a semi-annual rebalance. So we take a look at potential changes in March 2023.
- The announcement of the changes for the next rebalance should be made in the first week of September and will be implemented at the close on 30 September.
Hong Kong CEO & Director Dealings – 1st August 2022
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. However, such disclosures are by no means an absolute.
- These insights also flag those companies where shares have been pledged, both recently and ongoing.
Miniso’s Word Against Short Seller Blue Orca’s Facts
- Blue Orca issued a damning short-seller report on Miniso (MNSO US) on the 25th of July 2022, stating that the company’s asset-light and high-margin franchise business is mostly a lie.
- Miniso responded rather quickly but its response lacks evidence and does not do anything to contradict the facts presented by the short seller.
- Thus, it is Miniso’s word against Blue Ocra’s facts and it is quite obvious which side investors should take.
HS Holdings (8699 JP) – Huge Q1, Even Better Q2 Ahead, The 2nd To Last Asset Sale… And a Pawnshop?
- Thursday post-close, HS announced Q1 earnings, and Khan Bank Q2 earnings. Both magnificent. Book Value is up HUGE, and combined HS Q1-Khan Q2 is ¥7.7bn – 20% of mkt cap.
- On Friday 29 July, HS Holdings (8699 JP) announced it had sold HS Debt Collection Agency – the last “earning asset” except for the 55% stake in Khan Bank.
- This lifts shadow book value even higher… Deep value with a catalyst. BUT… in an otherwise unannounced postscript to Q1 earnings, HS announced it bought a stake in a… pawnshop?
KT Corp: Close to Selling Its Subsidiary KT Submarine to LS Cable & System
- Hankyung Business Daily reported today that KT Corp (030200 KS) is close to selling its 36.9% controlling stake in Kt Submarine (060370 KS) to LS Cable & System.
- Once the KT Submarine deal is completed, this could positively impact KT Corp’s dividends.
- KT Corp’s selling of its controlling stake in KT Submarine would fit along its restructuring plans to sell off some businesses that are considered non-core.
Minority Shareholders Go Activist on DB Hitek
- The minority shareholders of DB Hitek have started to go activist on the company. They are initially requesting the company to get access to its shareholder list.
- Many minority shareholders are suspicious that DB Inc may be trying to intentionally lower the share price of DB Hitek through a physical division split off.
- DB Hitek’s share price has declined nearly 48% since its 52 week highs in January 2022. The valuation multiples of the company have declined to more attractive levels.
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