In today’s briefing:
- Prosus X Naspers: Discounts Catch Bid on China Stimulus, Trip.com Stake Fully Exited
- High Dividend Yield HK-Listed Apparel & Footwear Screener: Adding JNBY 3306 HK
- HK CEO & Director Dealings (26th Sep 2024): Dongyue Group, C&D International, China Aoyuan Property
- CICC (3908 HK): M&A Possibility
- New World Dev (17 HK): Board Games
Prosus X Naspers: Discounts Catch Bid on China Stimulus, Trip.com Stake Fully Exited
- On Tuesday, China announced fresh stimulus measures targeting the stock market and property sector.
- The PBoC reduced the main policy rate and cut the RRR, signaling that further cuts were on the cards for later this year.
- Further stimulus measures were announced today ahead of the Golden Week holiday. The discounts of Naspers and Prosus have rallied on the news, we see room for further upside.
High Dividend Yield HK-Listed Apparel & Footwear Screener: Adding JNBY 3306 HK
- This is a short follow-up on HK-Listed Apparel & Footwear Screener: Right Stocks Listed in the Wrong Market – Attractive Yield & Rapid Expansion Outside China – Sep 2024
- To make the list more comprehensive, we added JNBY Design Ltd (3306 HK), which trades at 8x PE, has a 9% dividend yield, and is net cash.
- We also have updates from Crystal International’s (2232 HK) interim report, which has a very positive future outlook.
HK CEO & Director Dealings (26th Sep 2024): Dongyue Group, C&D International, China Aoyuan Property
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
- The key stocks mentioned in this regular insight include: Dongyue Group (189 HK), C&D International Investment (1908 HK), and China Aoyuan Property (3883 HK).
CICC (3908 HK): M&A Possibility
- China’s securities industry is under a wave of consolidation. China International Capital Corporation (3908 HK) is interesting given its leadership in the investment banking business.
- A combination with China Galaxy Securities (H) (6881 HK) may bring synergy, given their different focuses. This will create the 3rd largest securities house in China.
- Even without a merger, CICC also looks attractive with the US interest rate trending down. It is best set to gain upon the revival of the Hong Kong IPO market.
New World Dev (17 HK): Board Games
- Evidently the influence of a younger hip third-generation tycoon-scion was not the panacea for New World Development (17 HK) and its ongoing issues in the HK/China property space.
- As widely expected, Adrian Cheng is stepping down as NWD’s CEO, to be replaced by Eric Ma, Hong Kong’s former secretary for development.
- NWD will also sell the rights to provide property management services under the K11 brand to Adrian; and potentially sell its stake in Kai Tak Sports Park to its parent.
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