Ying Li

Ying Li: Following shareholders' approval on 2 Sep for the issue of new shares and perpetual subordinated convertible callable securities to China Everbright Limited (CEL), Voyage notes that Ying Li remains undervalued and investors are able to buy into the company at around the same price as CEL. Ying Li intends to expand into tier 1 cities with Beijing and Shanghai under the deal with CEL, which may portend towards a move towards being a national level developer. Other than cooperating on development projects, house reckons both companies may combine their retail properties into a REIT at a later stage. On completion of the share issue, Ying Li will emerge much stronger financially with gearing as low as 15% and about Rmb1.5b cash. As such, we look forward to catalysts such as the announcement of new projects over the next 12 months.