In today’s briefing:
- Tencent/Netease: Second Month of Game Approval Disappointment
- HK CEO & Director Dealings (28th Nov 2024): Geely Auto, Kingsoft Corp, Coastal Greenland
- China Watch: Forget About the BRICS Currency – China Wants to Impact the USD from Within
- Pateo Connect Pre-IPO: Undifferentiated and Unprofitable
- ABC Technologies/TI Fluid Systems: Highly Likely Firm Offer by Tomorrow
- Lucror Analytics – Morning Views Asia
Tencent/Netease: Second Month of Game Approval Disappointment
- China announced game approval for the November batch. The number of games approved remained at a higher level than 2023.
- The pace of China game approval appears to have accelerated to the same level as pre-tightening.
- None of the companies that we are tracking got any approval for November batch.
HK CEO & Director Dealings (28th Nov 2024): Geely Auto, Kingsoft Corp, Coastal Greenland
- 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: Geely Auto (175 HK), Kingsoft Corp (3888 HK), and Coastal Greenland (1124 HK).
China Watch: Forget About the BRICS Currency – China Wants to Impact the USD from Within
- Last week, we missed an intriguing story that several clients have asked us to explore.
- China issued $2 billion worth of USD-denominated bonds, which might not seem groundbreaking at first glance—it’s not uncommon for China to issue bonds in dollars.
- However, two aspects of this issuance stand out:The Venue: These bonds weren’t issued in the typical financial hubs like New York or Shanghai but in Riyadh, Saudi Arabia—a first of its kind.
Pateo Connect Pre-IPO: Undifferentiated and Unprofitable
- Pateo Connect Technology (PTC HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
- It is one of the largest domestic providers of smart cockpit and intelligent connectivity solutions in China, providing full-stack smart cockpit solution and cloud-based vehicle connectivity, for Chinese OEMs.
- In this note, we look at the firm’s past performance.
ABC Technologies/TI Fluid Systems: Highly Likely Firm Offer by Tomorrow
- ABC Technologies has largely completed its due diligence and reiterated a potential offer price of 200p per share, which the TIFS Board is minded to recommend if confirmed.
- After several extensions, tomorrow November 29 marks the final extension of the PUSU deadline. Spread has tightened over the last trading sessions in anticipation of a firm offer.
- The 200p proposal values TIFS at 4.64x NTM EBITDA, above the 4.55x sector median, reflecting a fair valuation despite industry challenges like Chinese market weakness and fluctuating OEM shares.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Wynn Macau, ReNew Energy, Softbank Group, Vedanta Resources
- In the US, October personal income came in above estimates at 0.6% m-o-m (0.3% e / 0.3% p).
- Meanwhile, personal spending slowed to 0.4% m-o-m (0.4% e / 0.6% revised p).
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