On the 20th January 2026, Skyworth (751 HK) announced an inter-conditional Scheme and concurrent listing of 70%-held Skyworth Photovoltaic (Skyworth PV) on the HKEx, by way of introduction.
The Dongfeng (489 HK)/Voyah (7489 HK)-like structure appeared fair. The challenge was that Skyworth PV’s key comps were/are A-share listed, and Skyworth PV should trade at an H-share discount.
Currently trading right at the Scheme cash consideration, assigning zero value for Skyworth PV. Skyworth’s share price is 22% below the pre-spin-off announcement price. I can see this trending lower.
The Trade:
Skyworth, as is, is trading above its five-year average on all metrics.
I don’t see the spin-off happening.
This has been a terrible trade.
I would not be getting involved here.