Unlocking Value

On 25 March 2024, China Merchants Bank Co., LTD (“CMB”, 3968 HK and 600036 SH) published its 2023 results and dividend payout plan.

The A-shares of CMB is the single largest investment of China Merchants China Direct Investments (the “Fund”, 133 HK). CMB shares alone account for 32% of the Fund’s total assets as at 31 December 2023.

CMB has declared dividends of RMB 1.972 (including tax) per share. This translates to dividend payout ratio of 35%, up from 33% in 2022. In a recent report, UBS said that 35% is the highest payout ratio among the Chinese banks they cover. Also, UBS highlighted that CMB generated net profit after tax of RMB 145.6 billion in 2023, up 7% from a year ago. Such performance is “well ahead of ” other joint-stock banks.

CMB’s share price was +4% (H-share) and +3% (A-share) on 26 March 2024.

We, Argyle Street Management, are encouraged by CMB’s strong performance and increased dividend payout ratio. We are pleased that the Fund will soon receive RMB 109m in dividends, based on our calculations. We hope that the Fund will follow CMB’s example of increasing dividends.

We re-iterate our proposal which we published on 8 January 2024, and urge the Fund to sell assets and return capital for the benefit of all shareholders.

2024年3月25日，招商银行股份有限公司（简称「招行」，3968 HK和600036 SH）宣布其2023年年度业绩和派发现金股息的计划。

招行Ａ股是招商局中国基金（简称“中国基金“，133 HK）的单一最大投资，截至2023年12月31日，占中国基金总资产32%。

招行计划每股现金分红 1.972 元（含税），现金分红比例为 35%（即现金分红占合并报表中归属于招行普通股股东的净利润的比例），高于其2022年现金分红比例的33%。

瑞银（UBS）评论称，在他们覆盖的中国的银行中，招行35%的现金分红比例最高，并且招行在2023年实现了1,456亿元人民币的税后净营业利润，同比增长了6.8%，这一业绩超过了其他股份制银行。

招行股票在2024年3月26日上涨了4%（H股）和3%（A股）。

我们Argyle Street Management对招行的优异经营成果和慷慨的现金分红表示赞赏，我们很高兴中国基金预计获得1.09亿元人民币的股息。我们也希望中国基金能够效仿招行，提高现金分红。

我们重申于 2024 年 1 月 8 日发布的建议，希望基金出售资产并向股东返还资金，维护所有股东的利益。