In today’s briefing:
- Yashili (1230 HK): Mengniu Offer Imminent As Key Sale Concludes
- Yashili (1230 HK): Pre-Condition Satisfaction Likely Within 5 Business Days
- Bilibili 4Q: Gaming to Drop Further with In-House Developed Strategy
- Weekly Wrap – 03 Mar 2023
- NetEase Inc.: Acquisition of SkyBox Labs & Other Drivers
Yashili (1230 HK): Mengniu Offer Imminent As Key Sale Concludes
- Yashili International Holdings (1230 HK) has announced that the disposal of Dumex China to Danone SA (BN FP) has been completed.
- This satisfies the second of three SPAs announced last May, leaving the sale of Danone’s 25% stake in Yashili to China Mengniu Dairy Co (2319 HK) outstanding.
- This stake sale should conclude next week, to be followed by the launch of the Scheme later this month, early next.
Yashili (1230 HK): Pre-Condition Satisfaction Likely Within 5 Business Days
- Yashili International Holdings (1230 HK) announced that the Dumex China Disposal was completed. The completion will result in the satisfaction of the last pre-condition, likely within five business days.
- China Mengniu Dairy Co (2319 HK)’s offer is HK$1.20 per share. Due to the upcoming release of full-year results, the scheme document will be likely despatched by early April.
- This is a done deal and timing is the key risk. At the current price and for a late-May payment, the gross and annualised spread is 2.6% and 11.3%, respectively.
Bilibili 4Q: Gaming to Drop Further with In-House Developed Strategy
- Bilibili reported 4Q2022 results. Net revenue increased 6.2% YoY to RMB6,142m (vs consensus RMB6,154m) while operating losses expanded to RMB2,327M (vs consensus RMB1,905.9m).
- Mobile Games revenues declined 11.5% YoY in 4Q2022 due to the restructuring of the games biz to focus on self-developed gaming titles.
- We expect Bilibili’s earnings to remain under pressure with aggressive cost controls to impact growth and Mobile games to slow-down in 2023E with lack of new titles for launch.
Weekly Wrap – 03 Mar 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.
In this Insight:
and more…
NetEase Inc.: Acquisition of SkyBox Labs & Other Drivers
- NetEase delivered a mediocre set of results for the last quarter as it failed to meet market expectations with respect to net revenues.
- The company’s legacy titles, including the Westward Journey Online series and Fantasy Westward Journey Online did perform well and helped deliver an earnings beat.
- The company’s new game, the Egg Party, hit the Chinese market by storm this quarter.
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