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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
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

 

Table from link:

 

Video: