Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

Greentown Service Group / Equity Bottom-Up

<ul>
<li>As China's property market melts down, shares of property management companies are following suit.</li>
<li>And there are increasing governance issues attached to these management units as a slew of questionable parent/subsidiary transactions unfold. </li>
<li>Valuations for property management companies are trading at multi-year lows. That trend is likely to continue.</li>
</ul>


As China's property market melts down, shares of property management companies are following suit.
And there are increasing governance issues attached to these management units as a slew of questionable parent/subsidiary transactions unfold. 
Valuations for property management companies are trading at multi-year lows. That trend is likely to continue.


China Property Management: Lacking Independence

Event-Driven

<ul>
<li>Back on the 27th September 2022, Boyu Group launched a HK$12/share VGO for PRC-incorporated property management play <strong><a href="https://www.smartkarma.com/entities/jinke-smart-services-group-co" target="_blank" data-smartkarma-citation="entities:29214:1" rel="noopener">Jinke Smart Services (9666 HK)</a></strong>, a 33.04% premium to last close.</li>
<li>Boyu and concert parties held 53.05%, and the Offer was contingent on regulatory approvals and 7.71% of shares out tendering. 4.79% tendered. Boyu also acquired 7.15% in the market.</li>
<li>Two days after announcing very ordinary FY24 results, Jinke shares were suspended pursuant to the Takeovers Code. Presumably Boyu is on the acquisition path again. Another VGO or a privatisation?</li>
</ul>


Back on the 27th September 2022, Boyu Group launched a HK$12/share VGO for PRC-incorporated property management play Jinke Smart Services (9666 HK), a 33.04% premium to last close.
Boyu and concert parties held 53.05%, and the Offer was contingent on regulatory approvals and 7.71% of shares out tendering. 4.79% tendered. Boyu also acquired 7.15% in the market.
Two days after announcing very ordinary FY24 results, Jinke shares were suspended pursuant to the Takeovers Code. Presumably Boyu is on the acquisition path again. Another VGO or a privatisation?


Jinke Smart (9666 HK): Boyu Returns To The Well?

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jinke-smart-services-group-co" target="_blank" data-smartkarma-citation="entities:29214:1" rel="noopener">Jinke Smart Services (9666 HK)</a> is in a trading halt “<em>pending the release of an announcement pursuant to the Hong Kong Code on Takeovers and Mergers which constitutes inside information</em>.”</li>
<li>It is likely that Boyu, the largest shareholder, is seeking to privatise Jinke. The privatisation of PRC-incorporated entities is usually done through a merger by absorption.</li>
<li>I use several methods to triangulate the likely offer price, which suggests a price range of HK$10.00-16.86, with an average of HK$12.47, a 45% premium to the last close.</li>
</ul>



Jinke Smart Services (9666 HK) is in a trading halt “pending the release of an announcement pursuant to the Hong Kong Code on Takeovers and Mergers which constitutes inside information.”
It is likely that Boyu, the largest shareholder, is seeking to privatise Jinke. The privatisation of PRC-incorporated entities is usually done through a merger by absorption.
I use several methods to triangulate the likely offer price, which suggests a price range of HK$10.00-16.86, with an average of HK$12.47, a 45% premium to the last close.


Jinke Smart Services (9666 HK): Boyu to Launch a Privatisation Offer?

Founder-CEO & Chief Analyst, Real Estate Foresight

Robert Ciemniak

Founder-CEO & Chief Analyst

Real Estate Foresight

Since 2012, REF has been helping investors with market research, project due diligence, and strategy development. This has ranged from detailed assessments and estimates on distressed developers' project portfolios to market due diligence on specific projects to macro-level questions linked to demand for commodities. The unique combination of the housing markets and developer data from data partner China Index Academy in Beijing, primary research, and technology-powered alternative data collection from public sources result in a valuable content set used in REF analytics and reports.

Predictive Analytics for China Property

Thematic (Sector/Industry)

<ul>
<li>This note is a weekly curated selection of Chinese news articles and company announcements focused on developers in distress</li>
<li>We look for their deals, updates, specific project progress news ('local signals'), as well as relevant local research commentaries about the market</li>
<li>We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to sources</li>
</ul>


This note is a weekly curated selection of Chinese news articles and company announcements focused on developers in distress
We look for their deals, updates, specific project progress news ('local signals'), as well as relevant local research commentaries about the market
We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to sources


China Property Developers In Distress - Weekly News & Announcements Tracker | July 4-11, 2024

China Property Developers In Distress - Weekly News & Announcements Tracker | Apr 26-May 3, 2024

China

Jinke Properties Group Company Ltd. develops and manages property.

Price Gauge
52-week Range	0.00 - 0.00
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Jinke Property Group (000656 CH)

China Property Management: Lacking Independence

Property management units are unlikely to be shielded from risks as their parent face funding issues. Valuations for property management companies...

David Blennerhassett

Jinke Smart (9666 HK): Boyu Returns To The Well?

Boyu may want to take the concert group stake up to 76.6% via another VGO before breaching the free float. If Boyu offers a similar premium as the...

David Blennerhassett

Jinke Smart Services (9666 HK): Boyu to Launch a Privatisation Offer?

I use several methods to triangulate the likely offer price, which suggests a price range of HK$10.00-16.86, with an average of HK$12.47, a 45%...

Arun George

China Property Developers In Distress - Weekly News & Announcements Tracker | July 4-11, 2024

This note is a weekly (July 4-11, 2024) curated selection of Chinese news articles and company announcements focused on developers in distress.

Robert Ciemniak

China Property Developers In Distress - Weekly News & Announcements Tracker | Apr 26-May 3, 2024

This note is a weekly (Apr 26 - May 3, 2024) curated selection of Chinese news articles and company announcements focused on developers in distress.

Robert Ciemniak

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)