China: PC Partner, Tencent, Jinchuan Group International Resources, Guangzhou R&F Properties and more

• PC Partner (1263 HK) issued a positive profit alert 15/12/2021.
• Company will report FY21 results in 60 days which will be the best ever. 1H22 is on track to show growth YoY. 
• Forecast exceptional dividend to celebrate 25-yr since founding and 10-yr since IPO. 

• In December, Tencent announced that its board of directors has resolved to declare a special dividend by way of a distribution of its Class A ordinary shares of JD.com. 
• This seems to be in line with regulators’ aim of bringing down walled gardens; however, we think these steps are aimed more towards restructuring Tencent’s fintech business.
• Tencent’s fintech arm has been benefitting from its partnerships with JD.com and Pinduoduo which has helped face competition from closest rival AliPay.

• Shares have declined ~9% since copper/cobalt miner Jinchuan Group International Resources (2362 HK) said it was unaware Jinchuan Group, its largest shareholder, was proposing a privatisation plan.
• As the world moves towards alternative energy sources, copper will remain in high demand. Jinchuan is also China’s third-largest cobalt refiner, whose output is used in lithium-ion batteries.
• Jinchuan is not expensive. And taking the company private is not a significant outlay for Jinchuan Group. Especially ahead of the copper/cobalt Musonoi project coming online next year.

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. Yuzhou Group
2. Agile Property Holdings
3. Central China Real Estate
4. Logan Property Holdings
5. Times China

and more…