On 15 April 2024, China Merchants China Direct Investment (the “Fund”, 133) announced that its net asset value (“NAV”) on 31 March 2024 was HK$ 30.33 per share (vs. its current share price of HK$ 9.2 on 18 April 2024).

Importantly, on 31 March 2024, the Fund’s cash balance was US$ 49m, which is much larger than the US$ 9m three months ago. If we add the approximately US$ 15m dividend which the Fund expects to receive from China Merchants Bank in July 2023, the pro forma cash balance is US$ 64m.

That is equivalent to 36% of the current market capitalization of the Fund, or HK$ 3.3 per share.

We, Argyle Street Management, are pleasantly surprised by the jump of cash balance. We believe that the Fund can pay far more dividends that the US$ 0.08 (HK$ 0.62) per share announced on 27 March 2024.

We recommend that the Fund shall pay another special dividend or make capital reduction or share buyback offers (at a price close to NAV per share).

We re-iterate our proposal which we published on 8 January 2024, and urge the Fund to return capital to shareholders.

Visit us:  UnlockValueChinaMerchants.com

Write to us:  ChinaMerchants@asmhk.com

2024年4月15日, 招商局中国基金(“中国基金”,股票代号:133 HK)公告其截至2024年3月31日的每股净资产为港币30.33,而其目前的股价为港币9.2(截至2024年4月18日)

更重要的是,截至2024年3月31日,中国基金的现金余额为4,900万美元,远超三个月前的900万美元。如果我们将中国基金预计在2023年7月从招商银行获得的约1,500万美元股息考虑计算,则届时中国基金的现金余额约为6,400万美元。

这相当于中国基金当前市值的36%,或每股3.3港元。

我们,Argyle Street Management,对现金余额的增加感到惊喜。基于此,我们亦相信中国基金有能力派发更高金额的股息,而不仅仅是2024年3月27日宣布的每股0.08美元(约0.62港元)。

因此,我们建议基金应该另行派发特别股息或者减资或者按照与每股净资产大约相当的价格回购股份。

我们重申于 2024 年 1 月 8 日发布的建议,希望中国基金能够出售资产,并向股东返还资金,以维护所有股东的利益。

访问我们:UnlockValueChinaMerchants.com

电邮我们:ChinaMerchants@asmhk.com

3 responses to “👍 The Fund’s cash balance has jumped in the past three months 中国基金的现金余额在2024年1季度内显著增加”

  1. […] week, we wrote that the cash balance of China Merchants China Direct Investment (the “Fund”, 133) increased signifi…. Now we have learned […]

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  2. […] week, we wrote that the cash balance of China Merchants China Direct Investment (the “Fund”, 133) increased sig…. Now we have learned […]

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  3. […] clarification: on 19 April 2024, we (Argyle Street Management) calculated that CMCDI will have pro forma cash balance of US$ 64m.  This calculation, done entirely on our […]

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