Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

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Thematic (Sector/Industry)

<ul><li>Chinese and global airlines completed only 70% of their planned international flights to China in the three weeks through Monday, signaling that recent easing of some inbound travel restrictions didn’t boost travel demand.</li><li>From Oct. 30 to Nov. 21, 3,595 international flights reached Chinese cities, including Hong Kong, Macao and Taiwan.</li><li>Although that was up from the same period last year, the total was still just 6% of the pre-pandemic level in 2019.</li></ul>

Chinese and global airlines completed only 70% of their planned international flights to China in the three weeks through Monday, signaling that recent easing of some inbound travel restrictions didn’t boost travel demand.From Oct. 30 to Nov. 21, 3,595 international flights reached Chinese cities, including Hong Kong, Macao and Taiwan.Although that was up from the same period last year, the total was still just 6% of the pre-pandemic level in 2019.

Airlines Complete Only 70% of Planned International China Flights

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>China's twists in its COVID combating measures are positive to the economy as many quarantine requirements are relaxed and secondary contacts are not identified and traced.</li>
<li>The latest change should bring more spending confidence to the consumers, and this will benefit consumer discretionary companies in the retail and F&amp;B sectors. </li>
<li>Relaxed quarantine requirements are positive to the travel and hospitality companies. Chinese airlines and international air tickets have seen immediate demand surge after the announcement.  </li>
</ul>


China's twists in its COVID combating measures are positive to the economy as many quarantine requirements are relaxed and secondary contacts are not identified and traced.
The latest change should bring more spending confidence to the consumers, and this will benefit consumer discretionary companies in the retail and F&amp;B sectors. 
Relaxed quarantine requirements are positive to the travel and hospitality companies. Chinese airlines and international air tickets have seen immediate demand surge after the announcement.  


China's Latest COVID Policy: What Are the Plays?

Equity Bottom-Up

<ul>
<li>Despite record losses in 2Q22, share price of <a href="https://www.smartkarma.com/entities/air-china-ltd-h" target="_blank" data-smartkarma-citation="entities:8239:1" rel="noopener">Air China Ltd (H) (753 HK)</a> has rallied 14% YTD, outperformed the 23.9% decline in HSCEI and its Chinese peers. </li>
<li>Air China's stub value has returned to pre-pandemic level, but is primarily driven by the A-share. <a href="https://www.smartkarma.com/entities/cathay-pacific-airways-ltd" target="_blank" data-smartkarma-citation="entities:243:1" rel="noopener">Cathay Pacific (293 HK)</a> recovery is an important catalyst for narrowing H-A share discount.</li>
<li>News flow over the next 12 months, mostly related to further relaxation of quarantine requirements, will be positive. The surge in demand should support elevated passenger yield.  </li>
</ul>


Despite record losses in 2Q22, share price of Air China Ltd (H) (753 HK) has rallied 14% YTD, outperformed the 23.9% decline in HSCEI and its Chinese peers. 
Air China's stub value has returned to pre-pandemic level, but is primarily driven by the A-share. Cathay Pacific (293 HK) recovery is an important catalyst for narrowing H-A share discount.
News flow over the next 12 months, mostly related to further relaxation of quarantine requirements, will be positive. The surge in demand should support elevated passenger yield.  


Air China (753 HK): Can It Sustain the Outperformance?

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

China Tourism Group Duty Free Corp Ltd / Equity Capital Markets

<ul>
<li>China Tourism Group Duty Free Corporation Limited (CDF) aims to raise around US$2.5bn in its H-share listing in Hong Kong.</li>
<li>As per Frost &amp; Sullivan, CDF had 92.3% market share by retail revenue in China duty-free merchandise sales in 2020.</li>
<li>In this note, we talk about the deal pricing and run the deal through our ECM framework.</li>
</ul>


China Tourism Group Duty Free Corporation Limited (CDF) aims to raise around US$2.5bn in its H-share listing in Hong Kong.
As per Frost &amp; Sullivan, CDF had 92.3% market share by retail revenue in China duty-free merchandise sales in 2020.
In this note, we talk about the deal pricing and run the deal through our ECM framework.


China Tourism Group A/H Listing - Discount Is Enticing at the Low-End

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<strong><a href="https://www.smartkarma.com/entities/swire-pacific-ltd-cl-a" target="_blank" data-smartkarma-citation="entities:10433:1" rel="noopener">Swire Pacific (19 HK)</a></strong> has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0811/2022081100273.pdf" target="_blank" rel="noopener">announced</a> a "small" buyback at HK$4bn, but it is a material portion of ADV.  </li>
<li>What remains unknown is how the buyback will be split.  The split will only be known once buyback volumes are announced. </li>
<li>Swire is trading cheap at a look-through forward P/B of 0.28x compared to its five-year average of 0.38x, and the two-year average pre-Covid of 0.48x. </li>
</ul>



Swire Pacific (19 HK) has announced a "small" buyback at HK$4bn, but it is a material portion of ADV.  
What remains unknown is how the buyback will be split.  The split will only be known once buyback volumes are announced. 
Swire is trading cheap at a look-through forward P/B of 0.28x compared to its five-year average of 0.38x, and the two-year average pre-Covid of 0.48x. 


Swire A/​​B (19 HK /​​ 87 HK)'s BIG Buyback Programme

China

Air China Limited provides passenger, cargo, and airline-related services in China.  The Company is primarily based in Beijing and a major hub for domestic and international air transportation.  Air China's airline-related services include aircraft maintenance, repair, overhaul service, ground services, and in-flight catering services.

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Air China Ltd (H) (753 HK)

Airlines Complete Only 70% of Planned International China Flights

Chinese and global airlines completed only 70% of their planned international flights to China in the three weeks through Monday

Caixin Global

China's Latest COVID Policy: What Are the Plays?

The refined COVID combating measures in China is welcoming and should benefit the consumer discretionary, travel and hospitality and airlines...

Osbert Tang, CFA

Air China (753 HK): Can It Sustain the Outperformance?

Air China's stub value (ex-Cathay Pacific) has returned to pre-pandemic level, driven primarily by the A-share. We expect discount of H-share to A...

Osbert Tang, CFA

China Tourism Group A/H Listing - Discount Is Enticing at the Low-End

China Tourism Group Duty Free Corporation Limited (CDF) aims to raise around US$2.5bn in its H-share listing in Hong Kong. In this note, we talk...

Sumeet Singh

Swire A/B (19 HK / 87 HK)'s BIG Buyback Programme

I continue to tilt bullish on Swire Pac. ~45% discount is unreasonably wide given its tendency to historically trade in the low-to-mid twenties....

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Airlines Complete Only 70% of Planned International China Flights

Chinese and global airlines completed only 70% of their planned international flights to China in the three weeks through Monday

Caixin Global

China's Latest COVID Policy: What Are the Plays?

The refined COVID combating measures in China is welcoming and should benefit the consumer discretionary, travel and hospitality and airlines...

Osbert Tang, CFA

Air China (753 HK): Can It Sustain the Outperformance?

Air China's stub value (ex-Cathay Pacific) has returned to pre-pandemic level, driven primarily by the A-share. We expect discount of H-share to A...

Osbert Tang, CFA

China Tourism Group A/H Listing - Discount Is Enticing at the Low-End

China Tourism Group Duty Free Corporation Limited (CDF) aims to raise around US$2.5bn in its H-share listing in Hong Kong. In this note, we talk...

Sumeet Singh

Swire A/​​B (19 HK /​​ 87 HK)'s BIG Buyback Programme

I continue to tilt bullish on Swire Pac. ~45% discount is unreasonably wide given its tendency to historically trade in the low-to-mid twenties....

David Blennerhassett

Swire A/B (19 HK / 87 HK)'s BIG Buyback Programme