In today’s briefing:
- Vesync (2148 HK): The Yang Family to Launch a Privatisation Offer?
- VCredit (2003 HK): Ma Makes His Move?
- Lufax (6623 HK): On Ping An’s Stake Increases
- Pre-IPO Xiaocaiyuan International Holding (PHIP Updates) – Some Points Worth the Attention
Vesync (2148 HK): The Yang Family to Launch a Privatisation Offer?
- Vesync (2148 HK) is in a trading halt “pending the release of an announcement pursuant to the Code on Takeovers and Mergers which contains inside information of the Company.”
- The Yang family is likely seeking to privatise Vesync through a Cayman scheme. The shares are trading 24% below the HK$5.52 IPO price.
- We use several methods to triangulate the likely offer price, which suggests a price range of HK$5.09-10.30 per share, with an average of HK$6.71, a 59.8% premium to last close.
VCredit (2003 HK): Ma Makes His Move?
- VCredit Holdings Ltd (2003 HK), a provider of consumer financial services in China, was listed on the 21st June 2018 at HK$20/share. Shares are currently down 90%.
- Ma Ting Hung, VCredit’s chairman, held 35.6% at the time of listing, and currently holds 39.85%.
- VCredit was suspended this morning pursuant to the Takeovers Code. Now might be the time for Ma to take VCredit back into the fold.
Lufax (6623 HK): On Ping An’s Stake Increases
- As discussed in PA Gooddoctor (1833 HK) – The Arb Is To Take The Stock, Ping An increased its stake in Lufax (6623 HK) to 56.82% via a scrip dividend.
- This triggered a zero-premium MGO, which closed on the 28 October 2024 with negligible tendering.
- Via an amendment to a tri-party agreement, Ping An subsequently lifted its stake to 66.85%. It’s worth understanding how Ping An has taken its stake >50% and beyond.
Pre-IPO Xiaocaiyuan International Holding (PHIP Updates) – Some Points Worth the Attention
- The financial data for 2024 has already shown investors weak growth signal.After IPO, Xiaocaiyuan may face stricter scrutiny from investors and the market in terms of its sustainable performance growth.
- It’s not easy for Xiaocaiyuan to find new growth points. Catering companies commonly face problems such as performance fluctuations and uncertain profitability, which has left their share price underperforming.
- Post investment valuation has already reached RMB10 billion, which far exceeds the market value of A-share peers. Due to concerns on the outlook, valuation performance after IPO could be lower-than-expected.
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