CHFT Advisory and Appraisal Limited

Happy Share on my recent column at Hong Kong Economic Journal: Leading companies command higher valuation multiples due to their superior market positions and typically have larger market shares and strong brand recognition, which investors generally believe translates into higher revenue growth and stability. . In addition, leading companies often have lasting competitive advantages (such as patents, franchises, strong supply chain management, etc.). These advantages form the so-called "moat", allowing companies to maintain high profitability in the long term. It is true that in today's increasingly short-term business cycle, there is room for discussion whether leading companies can maintain premium prices in the long term. 龍頭企業因其卓越的市場地位而獲得更高的估值倍數，且通常擁有較大的市場份額和強大的品牌認知度，投資者普遍認為，這些可以轉化為較高的收入增長和穩定性。加上龍頭企業往往擁有持久的競爭優勢（如專利、特許經營權、強大的供應鏈管理等），這些優勢形成了所謂的「護城河」，使得企業能長期保持較高的盈利能力。誠然，在商業周期愈趨短暫的今天，龍頭企業是否能長期保持溢價，實在有商榷的餘地。 See full article at Hong Kong Economic Journal:

The China Appraisal Society (CAS) and the International Valuation Standards Council (IVSC) has co-organised an international valuation conference, hosted by the Shanghai National Accounting Institute (SNAI) from 11 – 12 April 2024. It was my pleasure to be invited as panelist on "How can Asia better stimulate Intellectual Property and Intangible Assets Investment and what roles do valuers play?". There are lots of insight shared on the trend of increasing significance of intangible assets in the global economy, with contributions from various international experts who highlighted the necessity for consistent valuation practices across different asset types. Other panelists include: Ms Chen Lei - Professor of Capital University of Economics and Business, Member of IVSC Asia Committee Mrs Rena Lee - Chief Executive Of The Intellectual property Office of Singapore (IPOS) Mr Tang Zhenqi - Vice President of China United Assets Appraisal Group Mr Scott Chen - Managing Director, Brand Finance China https://lnkd.in/gneBbzGt

Happy Share on my recent column at Hong Kong Business Times: 沉寂兩年，香港終於有機會迎來第三家通過De-SPAC上市的企業。近日，上市特殊目的收購公司（簡稱SPAC）匯德收購，向SYNAGISTICS PTE. LTD.提交了業務合併的申請文件。本次擬合併的標的公司是總部位於新加坡，主要業務東南亞地區的數據驅動數字商務解決方案平台Synagistics。如果此次合併順利完成，Synagistics將成爲第三家通過De-SPAC（SPAC併購上市）交易登陸香港交易所的企業。這筆交易的估值為35億港元（約4.48億美元）。值得一提是，在De-SPAC交易完成前，阿里巴巴爲Synagistics最大外部投資方，直接持股47.22%。 After two years of silence, Hong Kong finally has the opportunity to welcome its third company listed through De-SPAC. Recently, the listed special purpose acquisition company (SPAC) Huide Acquisition submitted business combination application documents to SYNAGISTICS PTE. LTD. The target company for this proposed merger is Synagistics, a data-driven digital business solutions platform headquartered in Singapore and mainly engaged in Southeast Asia. If the merger is successfully completed, Synagistics will become the third company to be listed on the Hong Kong Stock Exchange through De-SPAC (SPAC merger and acquisition listing) transactions. The deal is valued at HK$3.5 billion (approximately US$448 million). It is worth mentioning that before the completion of the De-SPAC transaction, Alibaba was the largest external investor in Synagistics, directly holding 47.22% of the shares. Full article at Hong Kong Business Times: https://lnkd.in/gMMT5A3r

CHFT Advisory and Appraisal Limited: 根據目前港府開放數據，有一千零八十八條行人天橋由路政署管理維修，涉及總蓋頂面積超過四百六十萬平方呎，若以能安裝每塊1米乘1.65米每日收集4小時約1.188千瓦小時(kWh)的太陽能收集板的天橋(約九百二十條)蓋頂計算，能放置202,000塊，再乘以天文台全年達4小時日照數目的207天，即一年能獲取約49,700,000千瓦小時的電力，相當於14,000架電動車每架一年行走20,000公里、4,000戶家庭一年用電、200,000平方呎商業大廈或40,000平方呎數據中心的一年用電量。 . 到時候在天橋通道內可實時顯示戶外溫度、濕度、降雨量、天氣預報及當天已收集到的電力，天橋照明和通風系統所用之電力、有否剩餘電量等資訊，透過電力聯網甚至可把剩餘電力供其他當天日照效率較低的天橋使用，又或積穀防饑作為陰天雨天時的供電，甚至把剩餘電力賣給電力公司，補貼維修保養天橋設備的開支。當然，要把智能天橋實現，還要考慮天橋的結構載荷、施工方法、日照效率等問題，但由於行人天橋是香港人車分隔策略的可持續設施，數量日益增加，所以引入太陽能替代方案有助提升這種公共設施的整體效益。 #EDigest #Column #ESG #Sustainability #Solarpower #SmartCity #ExtremWeather #Data

A lot of adverse comments were noted in response to a post by Dr Edwin Lee, CEO of a local shop fund, published last week. Dr Lee quoted some P&L figures from three HK listed firms to support his claim that high wages are leading to the fall of F&B businesses in HK. Netizens, on the other hand, have challenged these figures and doubted that the high wages are in fact due to directors’ remuneration.   Whilst CHFT held a luncheon https://lnkd.in/gCz83tR9 in early July on a similar topic, we would like to share some further views here. 1)     Just as Dr Lee mentioned, staff salaries currently amount to 30%+ of the F&B revenues. Directors’ remunerations share a very minor portion;   2)     The increases in wages costs in 2023/2024 could not be directly compared with the nominal cost amounts in 2022/2023. Back in early 2022, there were social distancing measures limiting the number of people for meals together, as well as limitations to restaurants’ operation hours. In response to the lowered revenue, through various cost-cutting measures such as the use of staff rostering systems, and employing more part time but fewer full time staff, operators did manage to lower the staff costs in 2022/2023. Therefore, when restaurants resumed normal business in 2023/2024, the staff cost figures appeared to have big increases. But actually, the staff cost-to-revenue ratios were more or less the same in those years for these medium tier restaurant operators; and     3)     According to the data from the Census and Statistics Dept, the median monthly and hourly wages of employees engaged in the F&B industry recorded y-o-y increases of 5.0% and 4.7% respectively in June 2023.   Self ordering systems have been widely used to ease the pressure of high staff costs. While the dining experience of the customers might have been slightly hindered at the launch of these systems, they now have basically got use to it.   #BusinessConsultancy #Research #Wages #Restaurant #FnB

Gov’t #tender of the first Private Subsidised Sale Flats – Pilot Scheme (Private SSFs / #樂建居) at CWIL185 was closed on 19 July. This project would yield over 700 homes which would be sold at 65% of the market price to HOS eligible buyers upon completion. Though the project is walkable from Chai Wan MTR station on HK Island, only one bid was received. Our Senior Director Alex Leung estimated the market value of the site being in the region of HK$1,300 to 1,400 psf based on plot ratio of 9.0. He suggests the govt to allow pre-sale arrangement for Private SSFs at the will of developers in order to increase the attractiveness. Takungpao  https://lnkd.in/gVTnNnhf Wenweipo  https://lnkd.in/g75Kqw7n HK01 https://lnkd.in/gDWfn8pC HKET https://lnkd.in/gdD9kGZa HKEJ https://lnkd.in/g7T6pRjm Phone interview by ▶ RTHK  https://lnkd.in/gTgwHqVS ▶ i-Cable  https://lnkd.in/gydKfjUE ▶ Metro Radio  https://lnkd.in/g6P_vB3n #subsidized #housing #HomeOwnershipScheme

Come join us and register now! #CHFT #Valuation #Macao #MacaoProperty #MacaoEconomy #RealEstate #EconomicRecovery

Gov’t #tender of Shatin residential land (STTL 623) in Siu Lek Yuen opposite City One MTR Station received 11 bids last week. The area is currently dominated by industrial buildings and a bus depot. Some of these buildings have been approved to be redeveloped into commercial uses. STTL 623 has been awarded to SHKP at AV$3,952 psf, which is close to the estimation of our Senior Director Alex Leung ($4,150 - $4,340 psf). The awarded developer, SHKP, has a newly completed project namely St Michel (瓏珀山), as well as a hotel in the area. A bigger gov’t residential land nearby (STTL 625) will be rolled out for tender in between July and Sept 2024. HK01 https://lnkd.in/gGp_jSqg Singtao   https://lnkd.in/g8NsGzs7 Takungpao https://lnkd.in/gvc7ry4X SCMP https://lnkd.in/gTKQK3Ne i-Cable Interview https://lnkd.in/gVjj-dAB