r/hkstocks
$1378.HK is firing on all cylinders
Parent company raised stake to 62.31% citing undervaluation, backed by strong cash flow and a 6.2% dividend yield.
- Parent company aggressively accumulating shares, increasing controlling stake to 62.31%.
- Management explicitly warns short-sellers, stating the stock trades below intrinsic value.
- Robust operating cash flow of RMB 39 billion supports a highly attractive 6.2% dividend yield.
On June 8th as the latest displayed, the parent company bought 21M shares of the listed company directly from the open market. This increased its controlling stake to 62.31%. Management said the current market price "deviates from the company's intrinsic value" and warned short-sellers that they are ready to buy more shares if the discount continues.
Plus, $1378’s large dividend payout has led to a yield of up to 6.2% so far. This massive line return shows the company’s solid operating cash flow, which reached RMB 39 billion in the last full year, in the deeper bullish case. Anyone holding this play? We're on the same page for raising more views folks.