According to the Zhitong Finance and Economics app, Conch Venture (00586) rose more than 12%. As of press time, it rose 12.23% to HKD 8.35 with a turnover of HKD 589 million.
On the news front, recent research reports by GF Securities pointed out that as a Conch Group employee shareholding platform, Conch Venture's major shareholders are labor unions and individual employees. The company's main assets/projects currently include an indirect 18% equity interest in Conch Cement and a 59,000 ton/day solid waste project. With the operation of the held projects, the company will be able to provide more than 2 billion yuan/year of cash flow from the unstable joint venture dividends of Conch Cement to the main business, greatly increasing dividend capacity/stability.
In addition, the company holds a theoretical market value of HKD 23.6 billion for its 18% stake in Conch Cement, while the company's current market value is only HKD 11.3 billion. Referring to the in-depth report from GF Building Materials team on June 1, Conch Cement's profits and dividends are expected to hit bottom and stabilize. With the main business no longer 'sucking blood', cement dividends will be realized for shareholders' returns, and the value of the equity assets is expected to be reappraised.