Xinhua Winshare (811 HK): On Track to Sustain Stable & Secured Yield

Xinhua Winshare (811 HK): Manageable Impact in 1Q20 and Good Recovery on Track

Xinhua Winshare (811 HK): Revisiting a Solid Yield Play Fully Backed by Net Cash

Xinhua Winshare (811 HK): We like the Net Cash Cushion - 68% of Share Price

China Analyst - Equity Long-Short, Onshore Credit

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>Despite solid outperformance, share price of <a href="https://www.smartkarma.com/entities/xinhua-winshare-publishing-media-co-ltd" target="_blank" data-smartkarma-citation="entities:15072:1" rel="noopener">Xinhua Winshare (811 HK)</a> is more than 100% covered by net cash of Rmb7.6bn. DPS has also risen uninterruptedly in the last 3 years. </li>
<li>1Q23 result demonstrated operating resilience as recurring profit soared 48.5%. Its franchise in textbook publication and distribution stayed well protected, securing profitability outlook.</li>
<li>We like XW's boring businesses in the current depressed market. It trades on 4.5x PER with secured 6.6% dividend yield. The HA discount has widened to 10pp deeper than average. </li>
</ul>


Despite solid outperformance, share price of Xinhua Winshare (811 HK) is more than 100% covered by net cash of Rmb7.6bn. DPS has also risen uninterruptedly in the last 3 years. 
1Q23 result demonstrated operating resilience as recurring profit soared 48.5%. Its franchise in textbook publication and distribution stayed well protected, securing profitability outlook.
We like XW's boring businesses in the current depressed market. It trades on 4.5x PER with secured 6.6% dividend yield. The HA discount has widened to 10pp deeper than average. 


Xinhua Winshare (811 HK): We Love the Boredom