Ying Li

Ying Li: Voyage expects the framework agreement with China Everbright (CEL) to lead to the realization of value in Ying Li. The funds involved, will not only allow Ying Li to acquire more land and expand, but are also indicative of CEL’s commitment in Ying Li. House reckons the transactions incentivizes CEL to foster Ying Li’s growth over the next three to six years in order to maximize its profits from the conversion of the convertible securities into new shares at $0.318 each. On Ying Li’s side, refinancing risk is significantly reduced due to the perpetual nature of the securities. Previously, investors had been deterred by refinancing risk following the 2010 issue of convertible bonds that have since been redeemed and refinanced via bank loans in 2013. While CEL may be acquiring 30.68% of Ying Li at a discount to RNAV, investors are likely to enjoy a net gain from the previous close of $0.285 if the CEL and Ying Li collaboration results in a stronger pipeline of catalysts. Voyage has an Increase Exposure rating with TP of $0.845.