J.P. Morgan China/HK FTM 25 Jun 26 Guming - H

Research evidence excerpt

J.P. Morgan China/HK FTM 25 Jun 26 Guming - H

Asia Pacific Equity Research

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China/HK First to Market 25 June 2026

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Guming - H (1364.HK, OW – HK$20.38), China (Jessie Xu)

Proposed offering of HK$1,960mn convertible bonds and concurrent share repurchase

On 24 June before the market opened, Guming announced plans to issue HK$1.96 bn (US$250 mn) zero-

coupon guaranteed convertible bonds via its BVI subsidiary, with the list-co as guarantor. The initial

conversion price is HK$23.54, a 15.5% premium over the 23 June closing price of HK$20.38 and a 10%

premium to the average closing price for the last five trading days. If fully converted, the bonds will turn into

about 83.26 mn shares, accounting for 3.5% of the existing issued shares and 3.43% of the total including

converted shares (link). The concurrent repurchase makes the CB issuance anti-dilutive and therefore is

neutral, in our view. The stock is currently trading at 13x 2026E P/E.