In today’s briefing:
- Jiangnan Group (1366 HK): Powering Up
- Top Asia Shorts
- Jiangnan Group (1366 HK): Is the Chairman/CEO Reattempting Privatisation?
- Meilan Airport (357 HK): Takeaway from Recent Passenger Throughput
- Weekly Wrap – 17 Feb 2023
Jiangnan Group (1366 HK): Powering Up
- Jiangnan (1366 HK), a manufacturer of wires and cables for power transmission and distribution systems, was suspended yesterday at lunchtime pursuant to Hong Kong’s Code on Takeovers and Mergers.
- But not before the share price gained 63% on clear news leakage.
- Chu Hui, the chairman, CEO, and major shareholder, mulled taking the private six years ago.
Top Asia Shorts
- After Asian indexes met targets we have now turned negative in a domino sequence.
- Our table pounding inflationary higher USD and higher yield thesis is seeing the dollar on the move with yield in hot pursuit.
- Bull divergence in yield and the USD warn or a multi month rise. This is just the beginning of the pain trade to unwind peak inflation and peak rate positioning.
Jiangnan Group (1366 HK): Is the Chairman/CEO Reattempting Privatisation?
- Jiangnan (1366 HK) entered a trading halt pending the release of an announcement under the Hong Kong Code on Takeovers and Mergers on 16 February.
- It is likely that Mr Chu Hui (Chairman and CEO), the largest shareholder representing 34.99% of outstanding shares is reattempting to privatise Jiangnan.
- The 83.9% share price run prior to the trading halt suggests that the offeror is very close to finalising a formal proposal at a hefty premium to the undisturbed price.
Meilan Airport (357 HK): Takeaway from Recent Passenger Throughput
- Strong passenger traffic year-to-date indicates that full-year passenger throughput for 2023 will be on par with 2019.
- Concerns that China resuming outbound travel could turn domestic tourists away from Hainan are overblown, overlooking the huge pent-up leisure travel demand over last three years.
- We expect investors will focus on pace and sustainability of the recovery when company announces 2022 results. Being eligible for Stock Connect Program in 2023 will be a key catalyst.
Weekly Wrap – 17 Feb 2023
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.
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