In today’s briefing:
- Vitasoy (345 HK): Trading Rich As Ng & Yeo Hiap Seng Up Their Exposure
- Shandong Hi-Speed New Energy (1250 HK): Shandong Hi-Speed Holdings (412 HK) Possible MGO
- Fosun Tourism (1992 HK): Back Into The Fold?
- Shandong Hi-Speed New Energy (1250 HK): Possible MGO At HK$1.78/Share.
- Vitasoy (345 HK): Take Profits as Takeover Speculation Mounts
- China Dongxiang (3818 HK): Investment Gain Remains the Driver
- Sustainable Investing Surveyor – Focus on Birchtech Corporation (BCHT)
- QSG: F1Q25 Earnings Review – EPS Miss on Lower Revenues Silver Transition Gaining Momentum
- Pre-IPO BrainAurora Medical Technology – Weak Growth Prospects Cannot Support High Valuation
Vitasoy (345 HK): Trading Rich As Ng & Yeo Hiap Seng Up Their Exposure
- Yesterday, beverage maker Vitasoy Intl Holdings (345 HK) announced a 1H25E (Mar Y/E) net profit of HK$171mn, a 4.8% gain yoy. An interim dividend of HK$0.04/share (HK$0.014/share in 1H24), was declared.
- What was absent from the announcement/briefing was any comment on Philip Ng Chee-tat’s and Yeo Hiap Seng (YHS SP)‘s recent buying in Vitasoy.
- Ng, the younger brother of Sino Land (83 HK)‘s chairman Robert Ng Chee-siong, indirectly holds 12.26%, up from 5.22% on the 7th October. The share price is up 104% since.
Shandong Hi-Speed New Energy (1250 HK): Shandong Hi-Speed Holdings (412 HK) Possible MGO
- Shandong Hi-Speed New Energy G (1250 HK) disclosed a possible mandatory unconditional offer from Shandong Hi-Speed Holdings Gro (412 HK) at HK$1.78, a 7.2% premium to the undisturbed price.
- The offer is conditional on SDHS completing a sale and purchase agreement (SPA) to acquire CITIC Securities’ entire 13.52% stake at HK$1.78 per share.
- The key precondition of the SPA is SDHS shareholder approval of an ordinary resolution relating to the SPA and the possible offer. The vote is a formality.
Fosun Tourism (1992 HK): Back Into The Fold?
- Fosun Tourism (1992 HK) a leisure-focused integrated tourism group, is currently suspended pursuant to the Takeovers Code.
- Fosun Tourism was spun off from Fosun International (656 HK) in December 2018. Fosun Int’l currently holds 79.45% of shares out.
- Fosun Tourism gained ~8% yesterday on the highest volume in over two years. Recent news concerned Temasek-backed CapitaLand Investment (CLI SP) taking a 20-30% stake in Fosun Tourism’s subsidiary Club Med.
Shandong Hi-Speed New Energy (1250 HK): Possible MGO At HK$1.78/Share.
- Not a delisting Offer, but a possible mandatory unconditional Offer from Shandong Hi-Speed Holdings (412 HK) (SDHG) at HK$1.78/share, a premium of 7.23% to last close.
- SDHG, with 43.45%, has entered into an SPA with two Citic Securities (H) (6030 HK)-backed funds holding 13.52%, the completion of which lifts SDHG’s take to 56.97%, triggering an MGO.
- Conditions to the SPA are straightforward. Expect Shandong Hi-Speed New Energy G (1250 HK) to trade tight, if not through terms.
Vitasoy (345 HK): Take Profits as Takeover Speculation Mounts
- Vitasoy Intl Holdings (345 HK)’s shares surged 19.5% on speculation that billionaire Philip Ng will launch a takeover offer due to recent share purchases.
- Philip Ng’s stakebuilding suggests three potential outcomes. The likely near-term outcome is that he continues to nudge up his stake and potentially seek Board representation.
- Without the Lo family’s support, a scheme privatisation is impossible. While a voluntary conditional offer is possible, it isn’t very likely, as Vitasoy’s valuation looked frothy at the last close.
China Dongxiang (3818 HK): Investment Gain Remains the Driver
- China Dongxiang (3818 HK) turned around in 1H FY25 as it reported a net profit of Rmb137m, vs. losses of Rmb410m a year ago. Interim DPS increased 92.7% YoY.
- Investment gain is the key driver, reaching Rmb171m in the period, compared with losses of Rmb497m previously. Most investment categories contributed positively.
- CDNX trades on a 76.9% discount to its SOTP value and a P/B of just 0.22x. Net cash amounted to Rmb3.2bn, or 58.3% more than its market capitalisation.
Sustainable Investing Surveyor – Focus on Birchtech Corporation (BCHT)
- The WTR Sustainable Index was up 3.3% W/W versus the S&P 500 Index (up 1.7%), the Russell 2000 Index (up 4.5%) and the Nasdaq Index (up 1.9%).
- Energy Technology (14.0% of the index) was up 7.3%, while Industrial Climate and Ag Technology (48.3% of the index) was up 3.4%, ClimateTech Mining was up 1.6%, and Advanced Transportation Solutions (20.3% of index) was up 2.2%.
- Top 10 Performers: HLGN, WAVE, HYLN, ACHR, AMY, AMYZF, AMMP, CLIR, FCEL, GWTI
QSG: F1Q25 Earnings Review – EPS Miss on Lower Revenues Silver Transition Gaining Momentum
- Key F1Q25 takeaways include: 1) ongoing progress against QSG’s transition to providing high-demand products and services to middle-aged and elderly individuals
- 2) despite our forecasts for ongoing revenue declines, we look for continued profitability reflecting management’s ongoing focus on optimizing expenses, more efficient customer acquisition, more targeted marketing initiatives, and more integrated online/offline distribution
- 3) QSG maintains ample liquidity to continue to invest in the company’s strategic transition while maintaining profitability, and returning capital to shareholders
Pre-IPO BrainAurora Medical Technology – Weak Growth Prospects Cannot Support High Valuation
- Although DTx is considered a promising field, the industry is still in the early stages of trial and error development, and there is still a long distance from mature commercialization.
- BrainAurora’s revenue YoY growth rate declined significantly. Considering the small revenue scale and slowdown in revenue growth, is it possible for BrainAurora to experience stagnant growth in the near future?
- BrainAurora’s products haven’t been widely recognized in China’s hospitals/medical system, nor has it established a solid profit model.High valuation isn’t justified. We doubt if this field could bring good return.
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