Orange Sky, who once had a very profitable book, reached a 7-digit profit. Now he is basically close to returning to his own cost price. It is truly returning to liberation or nanke dream can also be.
Since the sale of China business by Orange Sky, the practice of major shareholders has been very positive, including the full exercise of the call option of $0.84 ($0.24 after interest rate), the increase in the market, and then large repurchase. The use of funds is also very reasonable, including a special dividend of $0.604 per share for the first time, and a 50% stake in Singapore Carnival Films with a total of 1 billion, making it a wholly-owned company of Orange Sky Golden Harvest. The above-mentioned series of practices can not find any flaws, but also made me less wary. Orange Sky has always been the biggest shareholding in my portfolio. After two special interest rates, the shareholding ratio was close to 12% as of yesterday.
I have discussed with a few friends who have a long-term position. If Mr Ng wants to “steal money” from the company in the future, why should he distribute a special interest of 700 million? After the special interest, the net cash on the book was only about 200 million, and then borrowed 1.4 billion to acquire its own business. This is very strange. I have not ruled out the possibility of related transactions, but I have not thought of a purchase of more than 600 million Hong Kong dollars, which will cause the stock price to fall so much. Perhaps after the announcement of the connected transaction of Emperor Watch (00887) in the previous two days, the stock price plummeted. Companies vying to avoid similar practices.
The Orange World Project is the first step in the return of Orange Sky Golden Harvest to the domestic market. When the Orange Day China was sold, Orange Sky Golden Harvest has no restrictions on operating domestic business within two years, that is, before the end of July next year, Orange Sky Jiahe is not allowed to operate cinema business in China, but after this period, Orange Sky Golden Harvest can re-operate in the domestic cinema business. Is Wu Kebo aware of the taste of the marrow and wants to repeat the way of making money in Orange China? Or is it purely selling the business to listed companies to cash out?
The Orange World project is different from the previous Orange Sky China business model. Orange Sky is a cinema-themed complex and shopping mall. It is not like the Orange Sky China’s purely cinema. This business model is similar to Wanda. Wanda’s domestic shopping malls basically include Wanda Cinema, which will increase the flow of people. I don’t know if Orange Sky can successfully replicate this model.
Finally, when the special shareholders meeting is voted, if you still hold Orange Sky (1132.HK), please instruct the brokers to vote against it, and do not need to attend the shareholders meeting in person. In this connected transaction, you can see how many dark-capital shares are owned by the major shareholders, because ordinary minority shareholders are unlikely to vote in favor, and only the major shareholders’ own secret or friendly will escort.
This time, my experience in Orange Tianhe in the past year, perhaps can be described in an idiom: nanke dream!