In today’s briefing:
- Jeju Air Rights Offering Worth 320 Billion Won Diluting Existing Shareholders
- CIMC Enric (3899 HK): Growth Outlook Supported by Multiple Engines
Jeju Air Rights Offering Worth 320 Billion Won Diluting Existing Shareholders
- On 26 August, Jeju Air (089590 KS) announced a rights offering worth 320 billion won, representing 39% of its market cap.
- The expected rights offering price is 11,750 won (29% lower than its current price of 16,550 won) and the expected rights offering shares are 27.23 million shares.
- Overall, we are negative on this rights offering mainly because we believe it is likely to result in too much dilution for the existing shareholders.
CIMC Enric (3899 HK): Growth Outlook Supported by Multiple Engines
- We see the positive share price reaction of CIMC Enric Holdings (3899 HK) after posting a 34.5% 1H22 core profit growth not yet enough to reflect its encouraging earnings outlook.
- Good order backlog, recovery at clean energy and increase in liquid food demand will add to the strength at chemical and environment segment as CIMC Enric’s drivers.
- Hydrogen energy business made impressive contribution growth and it should benefit from local governments’ hydrogen initiatives. The stock’s high PERs are just reflection of huge long-term potential.
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