Member Info for Jatw

Ongoing…..see daily RNS for volumes.

With the weakness generally of financials the buy back will have a greater effect on earnings….

I think jegward has misinterpretedfridays RNS showing MNG has reduced its holding inGeorgia capital plc.
MNG has a Diverse set of shareholders and they will come and go with RNS when needed.

Read the management presentation….then look at the future growth promises and weigh the structural issues the sector faces……then decide whether the value rating is justified…..it does seem too cheap to me.

A big fat zero so far.

Just looked on the co website and on 21 /09 just announced a £250m pension risk transfer deal.
The previous announcement was October 2020.

Hopefully this means the market is dealing again and Just will announce a series of new deals…which are capital light and profitable in year one.

The roadshow materials showed a$125m benefit from debt redemption.
Lower debt should also result in a stronger credit rating when they roll over other debt.
Unless they were at risk of a credit downgrade I really struggle to see the need to deleverage the balance sheet.
I suspect the HK listing will be rejuvenated….there was trading of 500k here earlier this week from a previous 90 day volume of less than 10k. The valuation gap to AIA will be noticed and close over time.

In the meantime take the dividends and read the results for future prospects.

Karv
I think it is all about growth prospects. SDR has a large venture with LLoyds which should convert a lot of cash accounts into investments with predictable fees for managing the customer and also managing the funds. There s cost pressure but think 1% for advice +1% fund fee of a large value.

MNG generates little in the scope of the first 1% and currently depends on the second 1%.
Fund managers come in and out of fashion, it looks like MNG is addressing its performance issues which should drive money into their funds and are using ESG to try to differentiate in the market.

MNG has also acquired ascentric last year and sandringham financial planners this year to help drive up the advice and assets under administration. They will need to make further deals to increase market share.
There is also the promise to take PruFunds to Europe but this is still to be delivered.
These initiatives may bring growth in the future. The market wants to see the growth coming through before marking the sp up.

SDR deserves a premium over MNG for its established path for growth in fee income.
If MNG can get on a similar path, then the gap can narrow…..it is quite a big if.

Schroders does not have the same capital requirements to meet as MNG because it does not have to provide guarantees unlike MNG to its insured book.
The IFRS results for MNG will be more volatile because the assets making up the capital are marked to market prices. There is a risk that MNG might need to raise capital if the markets crash, hence it buys some protection in the form of hedges…these will smooth the results out by offsetting market movements with hedging movements.

The market likes wealth managers for their large margins and sticky customers…..MNG is seeking to build up its wealth offering. Schroders has a large wealth element to its business as does SJP.
Hence SHDR and SJP appear much more highly valued than MNG…..but the market expects more from them.

There is no hiding place for Pru now.
Can’t blame European and US operations for holding the value o f the Asian businesses back any longer….
One significant question is how they deal with JVs in China and India and demands for local involvement across the region…..probably best to keep some local cover and not be too bullish in China and India as they both have track records in keeping foreigners out.

I take a contrary view….that MNG will lead a Merger.
Their UK strategy to grow distribution assets under administration could do with a larger merger say with QLT
An asset manager merger would be for new capabilities…..someone like ASHM fits the bill.

Both deals would propel MNG towards 8-10bn mcap, a safe FTSE 100 position.

Re timing, a predator should strike soon before a new chairman is in post and a new direction committed to. For MNG a deal could be the swan song for J Foley as retirement age nears.

If a hostile bid emerges, I will sell in the market and will not be hanging in for the benefits to be realised as they often aren’t. A friendly merger we will have to see the terms and if the sp rises.

https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0926/2021092600023.pdf

A link to the HKSE announcement for those who are interested….there will be further details of the applications and any scaling on Thursday with the shares trading from Mon 4 Oct.

Is set at HKD143.8 or £13.51
This is a 3% discount to the london close.

Glad this bear situation is now done with and I expect a quick rise to 1500.

I agree picstloup…..if the sustainable cash to sh is at that level….but there is a lack of clarity whether any f the possible cash return is a one off..

Current price is a bargain….I do expect 50USD but not for a while.

For SMS I doubt it changes the installed meter base at all, but they are contracted to install new meters by the suppliers….hence the contracts could be diverted to in-house teams and away from independents such as SMS.
The switch to Care may be a long term change for the company….more construction risk due to the large scale of the projects.

Your feedback from the frontline is valuable.
It is a people business…..neglect them at your peril…..
Staffing was a major concern in the profit warnings a few years ago. They are atleast being more transparent about vacancy rates.

The SP s certainly fully priced….and I don’t fault you for moving on from this share.

The directors have done themselves proud exiting a good proportion of their holdings at the top.

They have raised significant funds and reinvested to change the direction of the business away from some ageing products to more innovative and higher margin product.

This business is now about gaining potential synergies from the old and new businesses….it will take time to rebuild market confidence…but the building blocks are there for management….they have 2 years to do it and get the SP back to the recent 90p issue price.

I think you have to be careful with analyst estimates and target prices….they will change their short term view but keep their longer term position…..it sounds like GS has done just that.

Many good things are in train now for delivery in 2022 /23 and beyond.

Corporate presentation seems already to be out of date…..
HK market closure appears to trigger risk off in US.

I thought there was going to be little news in H2. While there may be no blockbuster announcements there have been plenty of developments to demonstrate the development of the pipeline.
The latest data about 689 presented at ESMO today is very encouraging with strong response numbers in the first cohort.
The Japanese bridging study shows Hutchmed is also working effectively with the regulator to leverage existing work and minimise market specific studies. There is no reason to believe this trial will not be successful given Chinese and US trials….the EU did not even require further European studies.

All positive, but you do have to be very patient.

Unlucky timing to be launching a share issue n a falling HK market.
Only 5% new shares to be issued but this may trigger a 10-15% slide this week….it might depend on the HKSE performance later this week, but it is off to a poor start.