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

The NEW Week that Was in ASEAN@Smartkarma - Syariah Banking, XL Axiata, and Telkom's Tower Spinoff

StubWorld: PPB/Wilmar, LG Corp, China Motor/Yulon Motor

StubWorld: TBS/Tokyo Electron, Intouch/Gulf, Jardines' Buybacks

Wilmar International Placement - Can't Pinpoint the Reason for ADM Selling

Quiddity Advisors

Event-Driven

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<p>Yesterday, <a href="https://www.smartkarma.com/entities/wilmar-international-ltd" target="_blank" data-smartkarma-citation="entities:172:1" rel="noopener">Wilmar International (WIL SP)</a>'s <a href="https://www.smartkarma.com/entities/yihai-kerry-arawana-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:29184:1" rel="noopener">Yihai Kerry Arawana Holdings Co Ltd (YKA CH)</a> (YKA) commenced trading on the Shenzhen Stock Exchange (ChiNext Board). Priced at RMB25.70/share, shares closed at RMB56/share. Shares are currently changing hands at RMB49.  That backs out a trailing PER of ~59x.</p>
<p>And Wilmar's reaction yesterday? Down 6.4% in what appears to be a "sell the news" trade.</p>
<p>I see Wilmar's discount to NAV at 55%. Shares haven't retested near-term highs since <a href="https://www.smartkarma.com/entities/archer-daniels-midland-co" target="_blank" data-smartkarma-citation="entities:14746:1" rel="noopener">Archer Daniels Midland Co (ADM US)</a>'s placement in August. But since that placement, uncertainty over YKA's IPO has been removed. Wilmar is cheap here.</p>
<p>As always, more below the fold.</p>
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<p><em>For some background history on YKA's IPO, please refer to past insights below:</em></p>
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<td style="width: 124.782px;">
<h3>Date </h3>
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<td style="width: 578.75px;">
<h3>Insight</h3>
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<td style="width: 124.782px;">17-Sep-20</td>
<td style="width: 578.75px;"><a href="https://skr.ma/U4wbi" target="_blank" rel="noopener">Wilmar: China Ops IPO One Step Closer</a></td>
</tr>
<tr>
<td style="width: 124.782px;">29-Sep-20</td>
<td style="width: 578.75px;"><a href="https://skr.ma/xBrVA" target="_blank" rel="noopener">Wilmar: YKA's Pricing &amp; Cheap Rump Stake</a></td>
</tr>
</tbody>
</table>
</div>
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<p></p>
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Yesterday, Wilmar International (WIL SP)'s Yihai Kerry Arawana Holdings Co Ltd (YKA CH) (YKA) commenced trading on the Shenzhen Stock Exchange (ChiNext Board). Priced at RMB25.70/share, shares closed at RMB56/share. Shares are currently changing hands at RMB49.  That backs out a trailing PER of ~59x.
And Wilmar's reaction yesterday? Down 6.4% in what appears to be a "sell the news" trade.
I see Wilmar's discount to NAV at 55%. Shares haven't retested near-term highs since Archer Daniels Midland Co (ADM US)'s placement in August. But since that placement, uncertainty over YKA's IPO has been removed. Wilmar is cheap here.
As always, more below the fold.



For some background history on YKA's IPO, please refer to past insights below:






Date 


Insight



17-Sep-20
Wilmar: China Ops IPO One Step Closer


29-Sep-20
Wilmar: YKA's Pricing &amp; Cheap Rump Stake









Henan Shuanghui Investment & Development (000895 CH)

Wilmar International

Wilmar Is A Buy After YKA’s Listing