Shunho Holding(00253) and Shunho Property(00219)

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Lai Sun ( 0191.HK ) started as  a garment company and branched out with subsidiary company ,   Lai Sun Development ( 0488.HK ) which is a substantial property development company.

Due to near collapse 20 years ago , the companies  did  not pay  any  dividend for about 17 years but  recently  the companies have  resumed  paying a tiny dividend.

About 3 years ago, the Lam family held  50% shares in Lai Sun ( 191.HK  ) but it seems some  family members have been buying the shares and taken the total family holding to 75%.

The share price is around HK $10  ( for 191 ) and HK $12 ( for 488) but the NAV of both companies is over HK $50 .

The company is headed by Peter Lam who has been appointed to head the HK Trade Development Council.( HK Government Unit ) in September .  So I am expecting a higher  dividend otherwise there is no point raising the family stake from 50% to 75%

As for Shun Ho Holdings ( 253 ) it has not paid any dividend during last 5 years. NAV is $12 .76  and shares are around $2.06
ShunHo Property ( 219) shares are priced around $2.80  and pays  6.9 cents dividend . NAV is $12.30.

The problem for prospective   investors is Willian Cheng, CEO  has not given any indication he wants  to deliver the profits to its shareholders.

As mentioned, Shunho rnav is much higher as the bulk of their assets are long lease hotels valued at historical cost less depreciation in books. As mentioned previously, shunho’s price to fcf since inception is ard 1.3-2x annualised, ie the quality of their earnings are great. Predominantly cash earnings due to low capex and high net op cf. Its still harvesting period for them, unlike Lai Sun with bulk of their earnings based on non cash and continuously hit by neg fcf yearly.

Shunho holding float has also been decreasing overtime, while Lai sun due to its lack of fcf(neg fcf) has been doing rights issue and script to dilute shareholder value.

Own view

This is a thread for Shunho group of coys, maybe can stick to only that. Can create another thread if you wish to expand on Lai sun. Thanks.