Daily Brief China: Yue Yuen Industrial Holdings, Agile Property Holdings, 21Vianet Group, Seazen (Formerly Future Land), CIFI Holdings and more

• Despite a softening global demand backdrop, Yue Yuen Industrial (551 HK), a global leader in the manufacture of athletic/outdoor and casual footwear, recently recorded its best 9M results since 2017.
• Yue Yuen’s shares have only just recovered from a 20-year low.
• From both a historical perspective and relative to peers, Yue Yuen is undemanding here. 

• Yue Yuen is essentially a large traditional manufacturing company, which once benefitted from China’s cheap labor and has brilliant history. But challenges seem inevitable as labor costs gradually increase.
• Despite 22Q1-Q3 solid performance, in the environment of high inventory of brand customers and downward pressure on global economy, the order visibility of Yue Yuen in 22Q4/23Q1 could be low.
• Either domestic demand or external demand, the overall situation may not be optimistic. Yue Yuen’s valuation is basically lower than its peers. However, we still recommend investors to remain vigilant.

The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days.

The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days.

• 111, inc (YI) has run up to $3.25. For a spread of only about 11%.
• Which is not all that attractive since there is no definitive agreement signed. So I am closing it with a quick 13% gain here.
• These Chinese merger situations sometimes randomly spike up, and I think it is wise to trade around them when upside isn’t as juicy anymore.

• Seazen (Formerly Future Land) (1030 HK) is looking to raise US$175m from its top-up placement.
• The deal is a relatively small one at just 9.5 days of three month ADV and 4.9% of current mcap.
• In this note, we will run the deal through our ECM framework and talk about the recent updates.

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:

1. China SCE
2. Hopson Development
3. Sino-Ocean Group
4. Greentown China
5. China Jinmao Holdings

and more…

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:

1. China SCE
2. Hopson Development
3. Sino-Ocean Group
4. Greentown China
5. China Jinmao Holdings

and more…