For those who came in late, I expected ENN (2688 HK)‘s Offer to get up. I was wrong. For all intent and purpose, I’m also wrong on Changhong (3991 HK).
Changhong is trading 50% below terms and 34% below the undisturbed price of HK$0.92/share. A peer basket is down 5% (the median) since the Offer was announced last September.
1H26 financials were solid. Changhong has added net cash of $1.4bn since the Offer was announced. If small, illiquid stocks are your bag, Changhong’s share price is unduly beaten up.
Changhong Jiahua Holdings is super illiquid - look away now if this is not your bag.
The Trade:
This is a busted deal.
Only look to get exposure if you like the fundamentals (long term); and illiquid stocks.