Ingdan (400 HK) Reloads Comtech's Spin-Off and Listing

• Technology platform play Ingdan (400 HK) is moving ahead, again, with the spin-off and listing of 72.42%-held Shenzhen Comtech in the PRC.

• The listing - should it go ahead, as the previous attempt was abandoned - is expected to involve the issuance of new shares. Ingdan will maintain a stake in Comtech.

• Comtech accounted for 95% of Ingdan’s revs in the 1H25. Expect the market to heavily discount Ingdan’s stub ops, and Ingdan’s NAV post spin-off.

The Trade:

• Ingdan is reloading the spin-off.

• Ingdan is trading in-line with listed HK peers. And above five-year average trading metrics.

• Expect the market to heavily discount the stub ops, and the Holdco, post spin-off. Should it proceed.

• This looks like a pass here.

The insight is labelled bearish as I’m not bullish here.