Nov 14, 2022Liked by IJW

The numbers on some of these chinese things are ridiculous. Here's another one for you - Goldlion Holdings /0533.HK/. They have a very profitable men's formal clothing brand, a huge real estate portfolio and net cash>market cap. HKD 1.2 bn market cap vs:

1) HKD 1.3 bn net cash

2) HKD 3.5 bn real estate in China & Hong Kong, mostly industrial & commercial

3) The apparel business that's earning about HKD 150-200m per year, should be worth ~ HKD 1.5bn

4) SOTP ~6.3 bn

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Yeah maybe I should buy some shares in that one as well. I skipped it because of its inventory build up, but now I noticed that was all real estate held for sale.

I also wonder if a possible china conflict heating up couldn't be a catalyst for a lot of these companies to pay out their excess cash so they can stash it away for a rainy day.

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I have looked at it and agree they are very cheap. They dont do much in dividends I recall which is an issue as no cash coming back to shareholders

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Yeah, it is a family-controlled business and they are very conservative, always keeping a huge amount of cash on the balance sheet. I don't think it will ever rerate to the SOTP value, but it should be trading @ at least half that - the average historical dividend yield is ~17% based on the current price.

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Another one with 10% dividends is Dickson Concepts (HKG: 0113)

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