Following a slow moving car crash, the takeover for Changhong Jiahua (3991 HK) finally busted on the 20th September 2026 after failing to secure provincial DRC and DoC approvals.
At the time, Changhong was trading at HK$0.57/share versus the undisturbed price of HK$0.92/share. That in and of itself appeared attractive.
The board has now resumed paying interim dividends. Sitting on a 10% yield - 18th December payment. That yield jumps to 19% should a final dividend be paid next June.
Changhong is illiquid - look away now if this is not your thing.
The Trade:
If small, illiquid stocks are your bag, Changhong’s share price is unduly beaten up.