In today’s briefing:
- JD.com (9618 HK): CCASS Share Increase Driver & Potential Prosus Selldown
- Taste Gourmet: Multibagger Reopening Play
- Yangzijiang (YZJSGD SP) Spin-Off: Index Treatment
- JD.com’s Musical Shares – Less Than You Think
- Park24 Placement – Large Deal to Digest and a Long Settlement Period
JD.com (9618 HK): CCASS Share Increase Driver & Potential Prosus Selldown
- There has been an increase of 700m shares held in HK CCASS for JD.com Inc. (9618 HK) on 11 April.
- The largest part of 421.5m shares is likely the conversion of Class B to Class A shares following Richard Liu stepping down as CEO of the company.
- The rest is unknown at this point but could be Prosus (PRX NA) moving their shares to HK to sell-down and use the cash to buy back their own stock.
Taste Gourmet: Multibagger Reopening Play
- The relaxing of restrictions by Hong Kong makes Taste Gourmet Group Ltd (8371 HK) a great reopening play, trading at 8.8x FY22e and 5.6x FY23e.
- Despite a challenging environment, the company has executed well, maintaining net margins north of 7-8%, which are far superior to other listed competitors.
- With >60% payout ratios, it trades at a dividend yield of 6.7%/11.4% FY22e/FY23e. Since 29% of the market capitalization is cash, we are confident in the dividend payments.
Yangzijiang (YZJSGD SP) Spin-Off: Index Treatment
- Yangzijiang Shipbuilding (YZJSGD SP) is looking to spin-off its investment segment, Yangzijiang Financial Holding Ltd (YZJFH). The EGM is on 18 April and the book closure is 25 April.
- There will be no flows from the MSCI and FTSE trackers given that both stocks should continue to remain members of the MSCI Small Cap and FTSE All-World indices.
- There will be a deletion from the FTSE Straits Times Index (STI) (STI INDEX) though, where either YZJSGD, YZJFH or Comfortdelgro Corp (CD SP) will be deleted from the index.
JD.com’s Musical Shares – Less Than You Think
- Today, CCASS data showed that 700,000,047 Class A Shares of JD.com Inc. (9618 HK) popped into existence in CCASS (from outside of CCASS the day before). Poof!
- They showed up in Deutsche Bank’s CCASS Participant account. Just like the 600,000,000 Class A Shares which popped in on 15 December 2021.
- There’s a thing here, and there are things going on in the background, but the things in the foreground are not as menacing as they appear. I explore and explain.
Park24 Placement – Large Deal to Digest and a Long Settlement Period
- Park24 Co Ltd (4666 JP) aims to raise around JPY25.5bn (US$210m) via selling 16m new shares at a fixed price of JPY1,644, representing a 9.9% discount to last close.
- Proceeds from the deal will be geared towards digital investment towards improving the firm’s business efficiency and for expanding its mobility fleet.
- In this note, we will talk about the firm’s track record and run the deal through our ECM framework.
Before it’s here, it’s on Smartkarma
