Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

After mysteriously gaining 16% in the past month on higher than average daily volume (US$1mn/day against US$0.5mn/day for the preceding 12 months), PRC BMW-distributor <a href="https://www.smartkarma.com/entities/dah-chong-hong-holdings-limited" target="_blank" data-smartkarma-citation="entities:2102:1" rel="noopener">Dah Chong Hong (1828 HK)</a> is now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2019/1015/2019101500181.pdf" target="_blank" rel="noopener">suspended</a> "pending the issue of an announcement of inside information relating to a possible privatization proposal".Auto dealerships in China are facing a market slowdown and intensifying competition. DCH's net profit was down 31.6% in the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0819/ltn20190819107.pdf" target="_blank" rel="noopener">first six months</a> of the year compared to an average decline of 23.6% for its peer group. Only <a href="https://www.smartkarma.com/entities/zhongsheng-group-holdings" target="_blank" data-smartkarma-citation="entities:10573:1" rel="noopener">Zhongsheng Group (881 HK)</a> recorded a profit increase (8.7%) during the same period via strong growth in Lexus and Toyota sales.SOE CITIC Group is DCH's major shareholder with 56.97%, a % largely unchanged for the past 8 years. No other shareholder has &gt;5%.Should a privatisation unfold, expect this to be by way of a Scheme, at a price potentially north of $3.70.

After mysteriously gaining 16% in the past month on higher than average daily volume (US$1mn/day against US$0.5mn/day for the preceding 12 months), PRC BMW-distributor Dah Chong Hong (1828 HK) is now suspended "pending the issue of an announcement of inside information relating to a possible privatization proposal".Auto dealerships in China are facing a market slowdown and intensifying competition. DCH's net profit was down 31.6% in the first six months of the year compared to an average decline of 23.6% for its peer group. Only Zhongsheng Group (881 HK) recorded a profit increase (8.7%) during the same period via strong growth in Lexus and Toyota sales.SOE CITIC Group is DCH's major shareholder with 56.97%, a % largely unchanged for the past 8 years. No other shareholder has &gt;5%.Should a privatisation unfold, expect this to be by way of a Scheme, at a price potentially north of $3.70.