Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

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Event-Driven

<ul><li>We raise our fair value for Power Assets Holdings to HKD 75 from HKD 73 following a sweetened takeover offer from Cheung Kong Infrastructure Holdings.</li><li>The share swap will now be at a ratio of 1.066 Cheung Kong Infrastructure shares for each Power Assets Holdings share, up from its earlier offer of 1.04.</li><li>Our current fair value of Power Assets Holdings is based on a fair value estimate of Cheung Kong Infrastructure at HKD 70</li><li>We view the proposed merger as positive for Power Assets Holdings shareholders as Cheung Kong Infrastructure has wider acquisition opportunities than Power Assets Holdings and should be able to find better use for Power Assets Holdings' net cash of HKD 58 billion.</li><li>We think Cheung Kong Infrastructure will aim to close the dividend gap between the two companies going forward as well</li></ul>Analysts: Jennifer Song &amp; Mathew HodgeFull report below the fold...&nbsp;

We raise our fair value for Power Assets Holdings to HKD 75 from HKD 73 following a sweetened takeover offer from Cheung Kong Infrastructure Holdings.The share swap will now be at a ratio of 1.066 Cheung Kong Infrastructure shares for each Power Assets Holdings share, up from its earlier offer of 1.04.Our current fair value of Power Assets Holdings is based on a fair value estimate of Cheung Kong Infrastructure at HKD 70We view the proposed merger as positive for Power Assets Holdings shareholders as Cheung Kong Infrastructure has wider acquisition opportunities than Power Assets Holdings and should be able to find better use for Power Assets Holdings' net cash of HKD 58 billion.We think Cheung Kong Infrastructure will aim to close the dividend gap between the two companies going forward as wellAnalysts: Jennifer Song &amp; Mathew HodgeFull report below the fold...&nbsp;

Cheung Kong Infrastructure  Sweetens Power Assets Holdings Takeover Proposal

<ul><li>We are raising our fair value estimate for Power Assets Holdings, or PAH, to HKD 73, based on our anticipation of a successful takeover by Cheung Kong Infrastructure Holdings, or CKI.</li><li>In our view, the combined entity will derive efficiencies.</li><li>The proposal gives 1.04 CKI shares for each PAH share, and we estimate CKI's revised fair value estimate at HKD 70 per share.</li><li>As a sweetener, CKI is proposing a special dividend of HKD 5 for shareholders of the merged entity.</li><li>However, if the takeover fails, we anticipate PAH reverting to its intrinsic value of HKD 68 per share.</li></ul>Analyst: Jennifer SongSector Head: Mathew HodgeFull report below the fold...

We are raising our fair value estimate for Power Assets Holdings, or PAH, to HKD 73, based on our anticipation of a successful takeover by Cheung Kong Infrastructure Holdings, or CKI.In our view, the combined entity will derive efficiencies.The proposal gives 1.04 CKI shares for each PAH share, and we estimate CKI's revised fair value estimate at HKD 70 per share.As a sweetener, CKI is proposing a special dividend of HKD 5 for shareholders of the merged entity.However, if the takeover fails, we anticipate PAH reverting to its intrinsic value of HKD 68 per share.Analyst: Jennifer SongSector Head: Mathew HodgeFull report below the fold...

Proposed Takeover by Cheung Kong Infrastructure Leads to a Boost

CK Infrastructure Holdings / Event-Driven

<ul><li>Cheung Kong Infrastructure's, or CKI's, proposed takeover of Power Assets Holdings is positive.</li><li>CKI and Power Assets have significant stakes in common assets. The merger will simplify the ownership structure, remove a layer of costs and provide the firm with direct access to the underlying cash flows.</li><li>Power Assets also brings significant excess cash, which we we think will be better utilised within the combined and simplified structure, providing funds to increase earnings.</li></ul>Analyst: Jennifer SongRegional Director: Lorraine Tan, CFAFull report below the fold....

Cheung Kong Infrastructure's, or CKI's, proposed takeover of Power Assets Holdings is positive.CKI and Power Assets have significant stakes in common assets. The merger will simplify the ownership structure, remove a layer of costs and provide the firm with direct access to the underlying cash flows.Power Assets also brings significant excess cash, which we we think will be better utilised within the combined and simplified structure, providing funds to increase earnings.Analyst: Jennifer SongRegional Director: Lorraine Tan, CFAFull report below the fold....

Proposed Takeover of Power Assets Holdings is Positive

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Sino American Silicon Products / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/sino-american-silicon-products-inc" target="_blank" data-smartkarma-citation="entities:3441:1" rel="noopener">Sino American Silicon Products (5483 TT)</a>  is a Taiwan-based company mainly engaged in the research, development, design, manufacture, and distribution of semiconductor wafer products with subsidiaries in both listed and unlisted companies including <a href="https://www.smartkarma.com/entities/globalwafers-co-ltd" target="_blank" data-smartkarma-citation="entities:17916:1" rel="noopener">Globalwafers (6488 TT)</a> , <a href="https://www.smartkarma.com/entities/parade-technologies-ltd" target="_blank" data-smartkarma-citation="entities:6987:1" rel="noopener">Parade Technologies (4966 TT)</a> , <a href="https://www.smartkarma.com/entities/actron-technology-corp" target="_blank" data-smartkarma-citation="entities:4989:1" rel="noopener">Actron Technology (8255 TT)</a> and <a href="https://www.smartkarma.com/entities/advanced-wireless-semiconduc" target="_blank" data-smartkarma-citation="entities:16559:1" rel="noopener">Advanced Wireless Semiconduc (8086 TT)</a> with only in Globalwafers - SAS owns more than 51%.
The large discount between SAS and its subsidiaries could be due to 1) lack of bulge-bracket coverage, 2) higher polysilicon price 3) and 3) weak 1H demand from the solar and the semiconductor from COVID-19 plague which caused investors to care less about the value dislocation between SAS and its subsidiaries.
With a somewhat certain 28-30% gain in the earning as early Q1 2022, investors should start slowly building positions in SAS as the risk-off beast may disturb the confidence in the equity market much longer than what investors would like. The second scenario of increasing stake in Parade Tech should be treated as a call option as when it happens, it is a bonus of another 24%. Thus the total upside could be around 54%. 
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Besides the above-mentioned reasons, <a href="https://www.smartkarma.com/entities/sino-american-silicon-products-inc" target="_blank" data-smartkarma-citation="entities:3441:1" rel="noopener">Sino American Silicon Products (5483 TT)</a> remains a smart way to gain exposure in Globalwafers which trades at 24x PER, compared to SAS that trades at 13x PER. The other factor is that Globalwafers dividend yield is 2.28% while SAS is 5.22%. 
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Sino American Silicon Products (5483 TT)  is a Taiwan-based company mainly engaged in the research, development, design, manufacture, and distribution of semiconductor wafer products with subsidiaries in both listed and unlisted companies including Globalwafers (6488 TT) , Parade Technologies (4966 TT) , Actron Technology (8255 TT) and Advanced Wireless Semiconduc (8086 TT) with only in Globalwafers - SAS owns more than 51%.
The large discount between SAS and its subsidiaries could be due to 1) lack of bulge-bracket coverage, 2) higher polysilicon price 3) and 3) weak 1H demand from the solar and the semiconductor from COVID-19 plague which caused investors to care less about the value dislocation between SAS and its subsidiaries.
With a somewhat certain 28-30% gain in the earning as early Q1 2022, investors should start slowly building positions in SAS as the risk-off beast may disturb the confidence in the equity market much longer than what investors would like. The second scenario of increasing stake in Parade Tech should be treated as a call option as when it happens, it is a bonus of another 24%. Thus the total upside could be around 54%. 

Besides the above-mentioned reasons, Sino American Silicon Products (5483 TT) remains a smart way to gain exposure in Globalwafers which trades at 24x PER, compared to SAS that trades at 13x PER. The other factor is that Globalwafers dividend yield is 2.28% while SAS is 5.22%. 


Sino American Silicon (5483): Entry to Globalwafers and Others

Hong Kong

Power Assets Holdings Limited invests in power generation, transmission and distribution as well as gas distribution. The Company has investments in Hong Kong, Australia, Canada, China, New Zealand and Thailand.

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Power Assets Holdings (6 HK)

Cheung Kong Infrastructure Sweetens Power Assets Holdings Takeover Proposal

We raise our fair value for Power Assets Holdings to HKD 75 from HKD 73 following a sweetened takeover offer from Cheung Kong Infrastructure...

Morningstar, Inc.

Proposed Takeover by Cheung Kong Infrastructure Leads to a Boost

We are raising our fair value estimate for Power Assets Holdings, or PAH, to HKD 73, based on our anticipation of a successful takeover by Cheung...

Morningstar, Inc.

Proposed Takeover of Power Assets Holdings is Positive

Cheung Kong Infrastructure's, or CKI's, proposed takeover of Power Assets Holdings is positive. CKI and Power Assets have significant stakes in...

Morningstar, Inc.

Sino American Silicon (5483): Entry to Globalwafers and Others

Sino American Silicon remains a smart way to gain exposure in Globalwafers (24x PER), compared to SAS (13x PER). The other factor is that...

Henry Soediarko

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