In today’s briefing:
- HK CEO & Director Dealings (15 Mar 2024): Sino Land, Hysan, FE Consortium, Champion REIT, Dongyue
- NPN X PRX: Discounts Continue to Come Under Pressure
- JSE March Rebalance Day: Top Sells AGL, MNP & INP
- EQD | Hang Seng (HSI): How Far Can It Rally Now?
- KKR/Encavis AG: Voluntary Offer
HK CEO & Director Dealings (15 Mar 2024): Sino Land, Hysan, FE Consortium, Champion REIT, Dongyue
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
- The key stocks mentioned in this regular insight are Sino Land (83 HK), Hysan (14 HK), Far East Consortium (35 HK), Dongyue (189 HK) & Great Eagle Holdings (41 HK)/Champion REIT (2778 HK).
NPN X PRX: Discounts Continue to Come Under Pressure
- Naspers and Prosus continue to come under pressure relative to their underlying holdings.
- Since our last update on the 1st of March, Naspers’ look through discount has widened by 1.6 percentage points to 42%.
- Naspers’ discount to Prosus’ market value has widened notably by 2.1 percentage points to 11.3%. Prosus’ discount is only 30bps wider and is trading at 35.4%.
JSE March Rebalance Day: Top Sells AGL, MNP & INP
- We expect to see large volumes of AGL, MNP and INP to trade in the closing auction due to the index harmonisation.
- Passive trackers and hedgers with exposure to vanilla indices will need to sell down their holdings to transition to the SWIX methodology.
- The top buys include: NPN, FSR, SBK, GFI, CPI and PRX.
EQD | Hang Seng (HSI): How Far Can It Rally Now?
- The Hang Seng Index is rallying and could co higher this week but it seems there isn’t much room to go really higher.
- A good target to cover your LONG holdings would be 17500, for this coming week and/or the following week.
- A pullback this coming week is also possible, so it’s not sure the index can rally more from here, or at least not without some correction first.
KKR/Encavis AG: Voluntary Offer
- KKR offers €17.50/share for Encavis AG (ECV GR), 53% premium, implied equity value of €2,818 million. This shows interest in renewables after the falls on the stock market in 2023-24.
- The offer represents 12.7x EV/Fwd NTM EBITDA and 32.4x Fwd P/E. On a P/E basis, the offer seems fair vs. (depressed) comparables.
- Given the current negative perception surrounding renewable energy companies, I think the shareholders are likely to tender at an attractive price. Spread is 3.77%/5.24% (gross/anualised, assuming closing by mid-December).
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