China YuHua Announces 2022 Results and Resumes Trading; Increase Fair Value Estimate to HKD 2.42

China YuHua’s share price was up 18% on Feb. 28 after the company announced its delayed fiscal 2022 (ending August) results and resumed trading. This is expected given the 10%-50% share price gains by peers amid improving sentiments while YuHua’s shares were suspended for trading. We marginally increase our fair value estimate to HKD 2.42 from 2.32 after adjusting our model. While we think YuHua is undervalued, we believe YuHua will trade at a valuation discount to peers with share price performance capped in the near term due to the lack of investors’ confidence following its convertible bond default.