Henderson Lee’s investment in green enterprise China Wantian with promising prospects

Henderson Lee’s investment in green enterprise China Wantian with promising prospects

Why has a food supply company focused on the Greater Bay Area attracted international funds and even members of a prominent Hong Kong real estate family as investors? China Wantian Holdings Limited (HKSE:1854) recently announced on its company website that it has received investment from the private investment firm of Lee Ka-kit, Co-Chairman of Henderson Land Development (0012).

According to data from the Hong Kong Stock Exchange, China Wantian’s Chairman, Dr. Hooy Kok Wai, reduced his stake by 72,000,000 shares at HKD 0.5 per share in August 2023. As the number of shares sold did not reach 5% of the total issued shares, no disclosure was required. The market presumed that Lee Ka-kit, the eldest son of the Henderson Group, has purchased this batch of shares. Prior to this, Franklin Templeton and ChinaAMC had already invested in China Wantian.

China Wantian recently secured a contract worth RMB10 billion to supply fresh fruits to the Greater Bay Area, with the initial focus being on a RMB1 billion worth of durian. This is a booming industry in China, which may explain the interest of major funds and family offices in investing in China Wantian. A recent report by HSBC Bank indicated that global demand for durians has increased by a staggering 400% year-on-year, driven by the “hot trend” of durian consumption in China. The report further highlighted that China has imported durians worth USD 6 billion over the past two years, accounting for 91% of global demand. China Wantian’s foray into durian imports instills in investors a strong belief in its potential for substantial growth.

In the investment community, it is widely known that Lee Ka-kit’s private investment firm specializes in green businesses. China Wantian’s commitment to supplying green food to the Greater Bay Area aligns perfectly with Lee’s vision and presents tremendous potential. In fact, Lee has previously expressed his intention to promote carbon neutrality, while China Wantian is actively developing sky farms and other green cultivation methods in the Greater Bay Area. This could enable China Wantian to earn carbon emission quotas through successful emission reduction efforts. Tesla, the American electric vehicle manufacturer, has generated significant revenue from selling carbon emission quotas after successfully reducing carbon dioxide emissions. In a recent report, a UBS analyst specializing in Chinese utilities suggested that carbon prices could potentially increase tenfold from their current levels.

The investment community’s confidence in China Wantian stems from its recognition as a highly valuable green enterprise. With the successive investments from various major funds and family offices, it seems to imply that the market sees unlimited possibilities for China Wantian’s business prospects.