Understanding the Market | Conch Venture Surges Over 5%, Institutions Believe Dividend Capability/Stability Will Significantly Improve, Company Expected to Receive Value Reassessment
CONCH VENTURE is now up more than 5%, as of the time of publication, it has risen by 5.3% to HKD 7.15, with a turnover of HKD 165 million. GF Securities pointed out that CONCH VENTURE is a platform for employees of the Conch Group to hold shares, with trade unions and individual employees holding the majority of shares. Its current main assets/projects include an 18% indirect equity stake in "Conch Cement" and a 59,000 tons/day solid waste project. With the operation of the projects in hand, the company will shift from relying on unstable joint venture dividends from "Conch Cement" to providing over HKD 2 billion in annual cash flow as its main business, significantly improving dividend capacity/stability. The bank pointed out that the theoretical market value of the company's 18% stake in "Conch Cement" is HKD 23.6 billion, while the current market value of the company is only HKD 11.3 billion. It is expected that the profit and dividends of "Conch Cement" will stabilize. With the main business no longer "sucking blood" and cement dividends realizing shareholder returns, this equity asset is expected to undergo a value reassessment
According to the Wise Finance app, CONCH VENTURE (00586) is now up more than 5%, as of the time of publication, it is up 5.3% to HKD 7.15, with a turnover of HKD 165 million.
Guangfa Securities pointed out that CONCH VENTURE is a platform for employees of the Conch Group to hold shares, with trade unions and individual employees holding the majority of shares. Its main assets/projects currently include an 18% indirect equity stake in "Conch Cement" and a 59,000 tons/day solid waste project. With the operation of the projects in hand, the company will shift from relying on unstable joint venture dividends from "Conch Cement" to providing over HKD 2 billion in annual cash flow as its main business, significantly improving dividend capacity/stability.
The bank noted that the theoretical market value of the company's 18% stake in "Conch Cement" is HKD 23.6 billion, while the current market value of the company is only HKD 11.3 billion. It is expected that the profits and dividends of "Conch Cement" will stabilize. With the main business no longer "sucking blood" and cement dividends realizing shareholder returns, this equity asset is expected to undergo a revaluation