Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Equity Bottom-Up

We introduce our new series about the story, businesses, and investment themes of the top ten Thai tycoons who have exposure to stock markets, starting the season premiere with the CP Group. Valued at US$14.4bn, Dhanin Cheravonont is Thailand's richest man. Though not the founder, he was the man who put this Group on the map. With his extended family, he controls an empire spanning diverse sectors such as retailing, food, telecoms, and insurance, though we consider food to be the core. They are listed on more than three exchanges, including Thailand, HK, and Indonesia. Within this empire, we see significant corporate governance challenges, though we also see some investment opportunities in two stocks, namely CPF and DIF. We are bearish on True Corp and think that CP All is already fairly priced. At the end of the day, this is the biggest private conglomerate in Thailand yo. At the very least, if you are seriously investing in this market, it would help to know their background.

We introduce our new series about the story, businesses, and investment themes of the top ten Thai tycoons who have exposure to stock markets, starting the season premiere with the CP Group. Valued at US$14.4bn, Dhanin Cheravonont is Thailand's richest man. Though not the founder, he was the man who put this Group on the map. With his extended family, he controls an empire spanning diverse sectors such as retailing, food, telecoms, and insurance, though we consider food to be the core. They are listed on more than three exchanges, including Thailand, HK, and Indonesia. Within this empire, we see significant corporate governance challenges, though we also see some investment opportunities in two stocks, namely CPF and DIF. We are bearish on True Corp and think that CP All is already fairly priced. At the end of the day, this is the biggest private conglomerate in Thailand yo. At the very least, if you are seriously investing in this market, it would help to know their background.

Thai-Coons (Season Premiere): The Richest Man in Thailand

Event-Driven

UOB Kay Hian Securities Thai / Event-Driven

Compared to the peak in 2013, deal flow has been slow in Thailand this year. Apart from the blockbuster takeover of Big C by Berli Jucker (BJC), there were few landmark deals this year. For the remainder of the year, we see continued tepid deal flow. On a 12-month view, we identified several potential targets in brokerage industry (Globex, Trinity, and Asia Plus' retail arm) and the possible divestment of Thanachart by Nova Scotia.The three most acquisitive companies in Thailand, CPF, BJC, and TU, will remain on the prowl, but it is virtually impossible for us to guess who the targets are, since they will look at hundreds of potential deals. All we can do is identify some possibilities, though most likely, these deals will come as a surprise when they actually materialize.

Compared to the peak in 2013, deal flow has been slow in Thailand this year. Apart from the blockbuster takeover of Big C by Berli Jucker (BJC), there were few landmark deals this year. For the remainder of the year, we see continued tepid deal flow. On a 12-month view, we identified several potential targets in brokerage industry (Globex, Trinity, and Asia Plus' retail arm) and the possible divestment of Thanachart by Nova Scotia.The three most acquisitive companies in Thailand, CPF, BJC, and TU, will remain on the prowl, but it is virtually impossible for us to guess who the targets are, since they will look at hundreds of potential deals. All we can do is identify some possibilities, though most likely, these deals will come as a surprise when they actually materialize.

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

<ul><li>Of the actively traded stocks listed on SGX, Singapore Medical Group saw the biggest jump in volume in August compared to its three-month average volume. The stock also gained 91.4% in August and earlier in the month reported a turnaround net profit of S$0.8 million for 1H2016 compared to a net loss of S$0.1 million in 1H2015.</li></ul><ul><li>
Consumer Staples plays, Sheng Siong Group and Dairy Farm International Holdings were also amongst the 10 actively traded stocks that saw the biggest jump in August volume.…</li></ul>

Of the actively traded stocks listed on SGX, Singapore Medical Group saw the biggest jump in volume in August compared to its three-month average volume. The stock also gained 91.4% in August and earlier in the month reported a turnaround net profit of S$0.8 million for 1H2016 compared to a net loss of S$0.1 million in 1H2015.
Consumer Staples plays, Sheng Siong Group and Dairy Farm International Holdings were also amongst the 10 actively traded stocks that saw the biggest jump in August volume.…

10 Biggest Volume Jumpers in August Spanned Seven Sectors

§ The 10 biggest SGX-listed F&amp;B plays average a market cap of S$3.5 billion, and averaged a 23% gain in the 2016 year through to 26 August. Japfa, Thai Beverage PCL and Jumbo Group were the strongest performers of the 10.§ The next 10 biggest SGX-listed F&amp;B plays average a market cap of S$153 million, and also averaged a 23% gain in the 2016 year through to 26 August. Food Empire Holdings and Katrina Group were the amongst strongest performers of the 10.§ Katrina Group was incorporated in 1995…

§ The 10 biggest SGX-listed F&amp;B plays average a market cap of S$3.5 billion, and averaged a 23% gain in the 2016 year through to 26 August. Japfa, Thai Beverage PCL and Jumbo Group were the strongest performers of the 10.§ The next 10 biggest SGX-listed F&amp;B plays average a market cap of S$153 million, and also averaged a 23% gain in the 2016 year through to 26 August. Food Empire Holdings and Katrina Group were the amongst strongest performers of the 10.§ Katrina Group was incorporated in 1995…

Singapore's Strongest Food & Beverage Stocks in 2016 YTD

In this review, we compare the two largest food processors in Thailand and favor CPF over TU (Thai Union), the world's biggest seafood company, with five reasons in favor of the former and three in favor of the latter. While slightly more expensive, CPF operates in less political terrain, and its recent deal track record is much better than TU.For investors who can buy less liquid stocks, we actually prefer TVO (soybean meal giant) and CFRESH (a much smaller and opportunistic seafood company than TU). Both of them trade well below market average valuations and have dividend yields of almost 7%. If you prefer only one, we pick TVO because of better demographics and lower risk, since human trafficking concerns have become an issue for all seafood companies operating from Thailand.

In this review, we compare the two largest food processors in Thailand and favor CPF over TU (Thai Union), the world's biggest seafood company, with five reasons in favor of the former and three in favor of the latter. While slightly more expensive, CPF operates in less political terrain, and its recent deal track record is much better than TU.For investors who can buy less liquid stocks, we actually prefer TVO (soybean meal giant) and CFRESH (a much smaller and opportunistic seafood company than TU). Both of them trade well below market average valuations and have dividend yields of almost 7%. If you prefer only one, we pick TVO because of better demographics and lower risk, since human trafficking concerns have become an issue for all seafood companies operating from Thailand.

Thailand

Charoen Pokphand Foods Public Company Limited produces a wide range of food products. The Company's products include chicken, pork, shrimp, fish, eggs. and duck.

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CP FOODS (CPF TB)

Thai-Coons (Season Premiere): The Richest Man in Thailand

We introduce our new series about the story, businesses, and investment themes of the top ten Thai tycoons who have exposure to stock markets,...

Athaporn Arayasantiparb, CFA

Takeover Kingpins of Thailand

Compared to the peak in 2013, deal flow has been slow in Thailand this year. Apart from the blockbuster takeover of Big C by Berli Jucker (BJC),...

Athaporn Arayasantiparb, CFA

10 Biggest Volume Jumpers in August Spanned Seven Sectors

Of the actively traded stocks listed on SGX, Singapore Medical Group saw the biggest jump in volume in August compared to its three-month average...

Singapore Exchange Ltd (SGX)

Singapore's Strongest Food & Beverage Stocks in 2016 YTD

§ The 10 biggest SGX-listed F&B plays average a market cap of S$3.5 billion, and averaged a 23% gain in the 2016 year through to 26 August....

Singapore Exchange Ltd (SGX)

Food Fight: CPF Vs TU

In this review, we compare the two largest food processors in Thailand and favor CPF over TU (Thai Union), the world's biggest seafood company,...

Athaporn Arayasantiparb, CFA

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