Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Hainan Meilan International Airport / Event-Driven

<ul>
<li>Given the change of control into <strong><a href="https://www.smartkarma.com/entities/hainan-meilan-international-airport-company-limited" target="_blank" data-smartkarma-citation="entities:12545:1" rel="noopener">Meilan Airport (357 HK)</a></strong>, was, in effect, a  re-arrangement of Meilan Airport shares under the same ultimate parent, the regulatory approval process curiously dragged.</li>
<li>Yesterday Meilan Airport announced all SPA conditions have now been satisfied, and that the SPA should complete in 20 business days. A Composite Doc will then be issued.</li>
<li>Trading almost at terms. This is a back-end proposition play. My peer basket is up 11%, on average, since the Offer was first announced. Asian peers are up 15%.</li>
</ul>


Given the change of control into Meilan Airport (357 HK), was, in effect, a  re-arrangement of Meilan Airport shares under the same ultimate parent, the regulatory approval process curiously dragged.
Yesterday Meilan Airport announced all SPA conditions have now been satisfied, and that the SPA should complete in 20 business days. A Composite Doc will then be issued.
Trading almost at terms. This is a back-end proposition play. My peer basket is up 11%, on average, since the Offer was first announced. Asian peers are up 15%.


Meilan Airport (357 HK)'s SPA (Finally) Done. Now For The HK$10.62/Share MGO

<ul>
<li>Back on the 30th April 2025, <strong><a href="https://www.smartkarma.com/entities/hainan-meilan-international-airport-company-limited" target="_blank" data-smartkarma-citation="entities:12545:1" rel="noopener">Hainan Meilan International Airport (357 HK)</a> ("Meilan Airport") </strong><a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0430/2025043004181.pdf" target="_blank" rel="noopener">announced</a> a potential change of control, via its domestic shares.</li>
<li>In principle, this situation involves the re-arrangement of Meilan Airport shares under the same ultimate beneficiary. Nevertheless, the share transfer will trigger an unconditional MGO at HK$10.62/share. </li>
<li>Yesterday, H-class shareholders <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/1106/2025110601740.pdf" target="_blank" rel="noopener">approved</a> a "Special Deal" at an EGM. And the share price closed above terms. That vote has nothing to do with the share transfer. Perhaps ...</li>
</ul>


Back on the 30th April 2025, Hainan Meilan International Airport (357 HK) ("Meilan Airport") announced a potential change of control, via its domestic shares.
In principle, this situation involves the re-arrangement of Meilan Airport shares under the same ultimate beneficiary. Nevertheless, the share transfer will trigger an unconditional MGO at HK$10.62/share. 
Yesterday, H-class shareholders approved a "Special Deal" at an EGM. And the share price closed above terms. That vote has nothing to do with the share transfer. Perhaps ...


Meilan Airport (357 HK)'s Special Deal And Tardy MGO

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Bottom-Up

<ul>
<li>Combined January-February activity indicates demand growth continues to slow down</li>
<li>Similarly, capacity restoration &amp; load factors on outbound flights appear to have stagnated </li>
<li>We expect shares of Chinese airlines to continue to outperform travel platform Trip.com</li>
</ul>


Combined January-February activity indicates demand growth continues to slow down
Similarly, capacity restoration &amp; load factors on outbound flights appear to have stagnated 
We expect shares of Chinese airlines to continue to outperform travel platform Trip.com


Monthly Chinese Tourism Tracker | Growth of Travel Demand Slowed in January-February (March 2025)

<ul>
<li>January air cargo activity moderated; timing of LNY holiday also made for tough comps</li>
<li>January Int'l air cargo tons at US gateways grew far less than inbound (ocean) TEUs</li>
<li>Data from Asian carriers &amp; US gateways indicates low utilization, softening growth</li>
</ul>


January air cargo activity moderated; timing of LNY holiday also made for tough comps
January Int'l air cargo tons at US gateways grew far less than inbound (ocean) TEUs
Data from Asian carriers &amp; US gateways indicates low utilization, softening growth


Monthly Air Cargo Tracker | January: Soft Demand, Low LFs | Ocean Growth > Air Growth (March 2025)

<ul>
<li>December numbers from Taiwanese carriers suggest balanced air freight market conditions</li>
<li>Cathay, SIA, &amp; three Chinese carriers reported solid volume growth, but low load factors</li>
<li>A range of leading air cargo hubs disclosed moderating volume growth in December</li>
</ul>


December numbers from Taiwanese carriers suggest balanced air freight market conditions
Cathay, SIA, &amp; three Chinese carriers reported solid volume growth, but low load factors
A range of leading air cargo hubs disclosed moderating volume growth in December


Monthly Air Cargo Tracker | Inaugural Edition | Low Cargo Load Factors and Moderating Demand Growth

China

Hainan Airlines Co., Ltd. provides passenger and freight air transportation. The Company also provides charter flight services. 

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Hainan Airlines Co (600221 CH)

Meilan Airport (357 HK)'s Special Deal And Tardy MGO

The SPA/MGO is a clean deal for Meilan Airport. I previously mused this may trade through terms given the change of control. I have no strong...

David Blennerhassett

Monthly Chinese Tourism Tracker | Growth of Travel Demand Slowed in January-February (March 2025)

The growth of Chinese travel demand appeared to slow in the first two months of 2025. We believe the Chinese airlines can continue to outperform...

Tracking Traffic

Monthly Air Cargo Tracker | January: Soft Demand, Low LFs | Ocean Growth > Air Growth (March 2025)

Air cargo demand in January 2025 softened, although some of this may be attributed to timing of the LNY holiday. Air cargo utilization is low (and...

Tracking Traffic

Monthly Air Cargo Tracker | Inaugural Edition | Low Cargo Load Factors and Moderating Demand Growth

Air cargo demand growth appears to be moderating, and most carriers reported low (sub-70%) load factors in December. In short, we see few signs of...

Tracking Traffic

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52-week Range

Market Cap (USDm)

P/E

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Meilan Airport (357 HK)'s SPA (Finally) Done. Now For The HK$10.62/Share MGO

The MGO is unconditional. I have no strong conviction on the back-end. The Offer Price was only a 10.6% premium to undisturbed. Expect this to...

David Blennerhassett

Meilan Airport (357 HK)'s Special Deal And Tardy MGO

The SPA/MGO is a clean deal for Meilan Airport. I previously mused this may trade through terms given the change of control. I have no strong...

David Blennerhassett

Monthly Chinese Tourism Tracker | Growth of Travel Demand Slowed in January-February (March 2025)

The growth of Chinese travel demand appeared to slow in the first two months of 2025. We believe the Chinese airlines can continue to outperform...

Tracking Traffic

Monthly Air Cargo Tracker | January: Soft Demand, Low LFs | Ocean Growth > Air Growth (March 2025)

Air cargo demand in January 2025 softened, although some of this may be attributed to timing of the LNY holiday. Air cargo utilization is low (and...

Tracking Traffic

Monthly Air Cargo Tracker | Inaugural Edition | Low Cargo Load Factors and Moderating Demand Growth

Air cargo demand growth appears to be moderating, and most carriers reported low (sub-70%) load factors in December. In short, we see few signs of...

Tracking Traffic