Sun Hing Vision (HK 125), 19-Aug-2016

Disclaimer: These are excerpts from student assignments conducted as part of a Corporate Finance class. The opinions represented do not necessarily agree with mine. I do not vouch for the quality of the recommendations or the accuracy of the numbers. Follow the recommendations on your own risk.

My @LSEPKUSummerSch #CorpFin #students made voting recommendations again: first #AGM this Friday: #SunHing Vision $HK125

#students disappointed with #SunHing recent #performance and question reasoning for special #dividend #CorpFin $HK125 #AGM

#students also sceptical about current capital structure of #SunHing: too little #debt, too much #cash #CorpFin #Leverage $HK125 #AGM

#students recommend #SunHing to take on more debt rather than issuing more equity $HK125 #AGM

#students also recommend using excess cash to invest into new markets rather than using it for #sharerepurchases #longterm investment #CorpFin $HK125 #AGM

Proposal	Excerpt of Student Recommendations
Proposal	For	Against
(7)To declare a final dividend and a final special dividend for the year ended 31 March 2016.	Sun Hing seems to have a lot of cash which it should pay out to shareholders	Recent performance has been disappointing – it is not evident why Sun Hing should issue a special dividend now, in light of the falling profits
(8) Authorize share issuances and repurchases.		Rather than repurchasing shares, we would rather like Sun Hing to invest more heavily, especially in exploring new markets. Sun Hing currently has little debt and should consider taking on more debt rather than more equity financing.

Results:

http://www.moqixu.com/wp-content/uploads/2016/08/E-Voting-Results-Announcement-2016.pdf

Dr. Moqi Groen-Xu
Senior Lecturer-Queen Mary University of London, School of Economics and Finance