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CHINA TRAVEL HK Once Swells 30%+; Citi: Proposed Spin-off of Non-Attraction Biz Positive, w/ 30-Day Catalyst Watch Initiated
Recommend 24 Positive 27 Negative 6 |
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CHINA TRAVEL HK (00308.HK) plans to spin off its Hong Kong and Macau operations for a separate listing on the Main Board by way of introduction. The stock opened 14.88% higher this morning (21st) and once leapfrogged about 32% to a peak of HKD1.6. It last stood at HKD1.44, up 19.01%, with turnover of 126 million shares, involving HKD190 million. CHINA TRAVEL HK announced that it plans to spin off its Hong Kong and Macau businesses (including hotels, cross-border passenger transport and travel document services) for a separate listing by way of introduction on the Main Board of the Hong Kong Stock Exchange. Through an internal reorganization, CHINA TRAVEL HK will distribute all equity interests in the subsidiaries holding the Hong Kong and Macau businesses to qualifying shareholders. Upon completion of the spin-off, CTG Hongkong and Macao will be separately listed by way of introduction, without issuing new shares or raising funds. The two companies will each have independent management teams and boards of directors. The spin-off aims to resolve the company's long-standing issue of mixed asset attributes. Citi said in its report that the company management also announced a five-year development plan, targeting a doubling of sales and profit in its attraction business by 2030 compared with 2025, mainly driven by double-digit sales CAGR, IP integration and technological advancement. Citi placed CHINA TRAVEL HK on a 30-day positive catalyst watch, believing that a series of shareholder value enhancement initiatives over the past 12 months, including the spin-off of non-core businesses, disposal of loss-making tourism property operations, and acquisitions of ski resorts and ski management companies, will gradually unlock value. The broker maintained a Buy rating on CHINA TRAVEL HK with a TP of HKD1.49. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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