The Undervalued Potential of China Wantian Holdings Limited (SEHK:1854)

The Undervalued Potential of China Wantian Holdings Limited (SEHK:1854): A Case for Investment



China Wantian Holdings Limited (SEHK: 1854) has established a strong foothold in the Greater Bay Area's green food supply chain and has expanded to the entire Chinese and even international markets through the capital market. Recently, the company announced a rights issue plan, and the results reveal an impressive list of placees, including China's largest mutual fund and a multinational investment firm with over 1 trillion AUM.


According to China Wantian's latest announcement, ChinaAMC Summerbrook Fund and an Asia Pacific Structured Equity Fund LPF, which is advised and managed by Franklin Templeton Investments (Asia) Limited, are new shareholders.



ChinaAMC Summerbrook Fund is part of China Asset Management, one of China's largest fund families. The Summerbrook Fund recently won two entries at the Benchmark Fund of the Year Awards 2022 in Hong Kong, including the Asia Bond Fund, Absolute Return - Outstanding Achiever, and Long/Short Equity - Outstanding Achiever categories.



Asia Pacific Structured Equity Fund LPF is advised and managed by Franklin Templeton Investments (Asia) Limited, one of the world's largest fund families listed on the New York Stock Exchange.


What could be the reason behind these major global fund groups taking an interest in China Wantian? It's possible that this is linked to China Wantian's background. Hooy Kok Wai, the chairman of China Wantian, also serves as the vice chairman of Perfect (China) Co., Ltd. Headquartered in Zhongshan City, Guangdong Province, in the heart of the Guangdong-Hong Kong-Macao Bay Area, Perfect (China) Ltd. sells healthy food, small kitchenware, cosmetics, cleaning products, and personal care products. In recent years, as a foreign-funded company engaged in the big health technology industry, Perfect has relied on its digital transformation strategy to actively build a smart ecological platform integrating R&D, procurement, manufacturing, logistics, sales, and services.



This may lead to the association that Hooy Kok Wai may use China Wantian as an extension of Perfect (China) Co., Ltd. in the capital market, or he may intend to create a company with a massive market capitalization in a short period. Both possibilities have sparked endless speculation in the investment market. ChinaAMC Summerbrook Fund and Asia Pacific Structured Equity Fund LPF's investment in China Wantian with substantial capital proves that the company's stock price may be significantly undervalued at its current level.


Moreover, the "Tycoon-designated Placing Agent" RaffAello, which has long been working with Cheung Kong Li Ka-shing and Henderson Land Lee Shau-kee, has arranged this rights issue. With such strong partnerships, the stock price of China Wantian appears to have significant upside potential.

如果喜歡我們的文章,請即分享到︰