Wykeham Buys More Ming Fai

Wykeham Capital Limited (Wykeham) increased their stake in HK-listed Ming Fai Group (Ming Fai). According to a filing made to the Hong Kong Stock Exchange on April 11th, 2017, the firm bought 1,105,000 shares on the exchange at an average price of HKD 1.087 per share on April 6th (total consideration was ~US$155,000). Following the purchase, Wykeham’s stake in the company increased from 4.93% to 5.08% of the company’s shares outstanding.

Ming Fai manufactures and supplies amenity products to the hotel, hospitality as well as travel industries. This core business contributes the majority of the group’s revenue and has been profitable over time. Since 2010, however, Ming Fai has unsuccessfully diversified into a number of other business lines including cosmetics retailing and a laundry plant in China (they have since exited the latter). David Webb is also a shareholder in the company and recently pushed them to distribute the excess cash on their balance sheet to shareholders following the sale of an investment property. You can read more about how that evolved here and here.

Wykeham manages a value-oriented, long-biased investment fund. The firm was established in 2010 by Howel Thomas, who was previously with CLSA. They also have a publicly disclosed stake in HK-listed Crocodile Garments Limited.