China Motor Bus (CMB, 26 HK) is an undervalued Hong Kong-listed real estate company controlled by a family of octogenarians.  (CMB now has little to do with China, motors or buses – a story for another day).

We, Argyle Street Management, are a shareholder of CMB. For years, we have been campaigning against CMB, with the objective of narrowing the discount to net asset value and improving corporate governance.

Years of efforts are paying off. 

In 2019, CMB sold its office building on 625 King’s Road (which was CMB’s single largest asset) and to pay two large special dividends.

In January 2024, CMB and its Swire, its joint venture partner, announced plans on monetizing its residential redevelopment project in Chai Wan.

Now, on 13 September 2024, CMB announced that it will soon sell an office building in London for HK$ 478m, which is equivalent to 21% of CMB’s market cap.  Importantly, CMB plans to use the proceeds to pay special dividends and/or share buybacks.

We have also been campaigning for the resignation of Chairman Irene Ngan, whom we felt was a reason of the large discount to NAV. She resigned in 2019. CMB also hired a CEO in 2022 (it didn’t have one previously).

If CMB can return capital to shareholders and improve corporates governance, so can China Merchants China Direct Investments (133 HK).

If you are new to CMCDI, read our primer.

Chat with us on WeChat or WhatsApp:

💬 WeChat ID: ASM_Argyle

💬 WhatsApp ID: +852 6317 6371

🖥️ UnlockValueChinaMerchants.com

📧 ChinaMerchants@asmhk.com


中華汽車有限公司(“中巴”,26 HK)是一家被低估的香港上市房地产公司,其由一群八旬老人控制(虽然名字叫中华汽车,但其与中国大陆、汽车或客运均无关 – 这是另一个故事)。

我们,Argyle Street Management,是中巴的股东之一。多年来,我们一直在与中巴积极沟通,目的是缩小折价幅度及改善公司治理。

多年的努力正在取得成果。

2019年,中巴出售了其位于香港北角英皇道625號的办公大楼(这是中巴最大的单一资产),并向股东支付了两笔大额特别股息

2024年1月,中巴及其合资伙伴太古(Swire)宣布了柴湾前中巴车厂住宅重建项目的出售计划。

现在,在2024年9月13日,中巴宣布将很快出售伦敦的一座办公大楼,售价为4.78亿港元,相当于中巴市值的21%。重要的是,中巴计划将出售所得资金用于支付特别股息和/或股票回购。

我们还一直在呼吁董事长顏潔齡辞职,我们认为她是导致中巴折价幅度较大的原因之一。最终,她在2019年辞职。中巴之后于2022年首次聘请了首席执行官(CEO)。

如果中巴可以做到向股东返还资本并改善公司治理,那么招商局中国基金(133 HK,“中国基金”)也可以做到。

如果您刚开始了解中国基金,请阅读我们的指南

欢迎随时与我们联系:

💬 微信: ASM_Argyle

💬 WhatsApp: +852 6317 6371

🖥️ UnlockValueChinaMerchants.com

📧 ChinaMerchants@asmhk.com

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