In today’s briefing:
- China Tourism Group A/H Listing – Discount Is Enticing at the Low-End
- CTG Duty Free H Share Listing: Valuation Insights
China Tourism Group A/H Listing – Discount Is Enticing at the Low-End
- China Tourism Group Duty Free Corporation Limited (CDF) aims to raise around US$2.5bn in its H-share listing in Hong Kong.
- As per Frost & Sullivan, CDF had 92.3% market share by retail revenue in China duty-free merchandise sales in 2020.
- In this note, we talk about the deal pricing and run the deal through our ECM framework.
CTG Duty Free H Share Listing: Valuation Insights
- China Tourism Group Duty Free Corp Ltd (601888 CH) has launched its H Share listing at HK$143.50-165.50 per share. Pricing is on 18 August and listing on 25 August.
- In CTG Duty Free H Share Listing: Another False Dawn?, we noted that on a fundamental view, we would prefer to remain on the sidelines.
- Our valuation analysis suggests that the A Shares are trading close to fair value and the H Share valuation is unattractive compared to peers. We would pass on the listing.
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