ValueTrade
2021-02-25

$LANGUANGJUSTBON(02606)$An offer price not less than HK$50.58 from CG Services to takeover all shares owned by the main shareholder of LabguangJustbon - 30% higher than the closing price of $38.95 before the suspension of trading. Not accepted yet, still under negotiation and suspension of trading is still active. It basically shows that many of these smaller profitable PM companies are heavily undervalued like Aoyuan Healthy01996. 

I personally think that the offer price is way too low - current PE of LanguangJustbon is about 11 - paying 30% more is not much more. Should be valued at PE of 30 or higher. That could be why CG Services is seeing higher value in them and could help to increase its share value with CG’s help.

https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0225/2021022500961.pdf

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