Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Thematic (Sector/Industry)

<a href="https://www.smartkarma.com/profiles/667" target="_blank" data-smartkarma-citation="accounts:667">Alan Greene</a> did an amazing job explaining how <a href="https://www.smartkarma.com/entities/10946" target="_blank" data-smartkarma-citation="entities:10946:1">Lippo Malls Indonesia Retail Trust (LMRT SP)</a> business model which derive its revenue from booming Indonesian middle class that has more spending power (hence in IDR) yet Lippo Malls REIT receives its financing in SGD. The income-expense currency mismatch could swing either way; hurting or helping the P/L. The recent announcement from the Indonesian tax regulator that all income earned from building and land leases in Indonesia will be subjected to 10% withholding tax. In this report, a couple of real estates and property development companies' balance sheet are looked through to find out what are their exposure to the taxable sector and how much is the impact on the pre-tax margin.

Alan Greene did an amazing job explaining how Lippo Malls Indonesia Retail Trust (LMRT SP) business model which derive its revenue from booming Indonesian middle class that has more spending power (hence in IDR) yet Lippo Malls REIT receives its financing in SGD. The income-expense currency mismatch could swing either way; hurting or helping the P/L. The recent announcement from the Indonesian tax regulator that all income earned from building and land leases in Indonesia will be subjected to 10% withholding tax. In this report, a couple of real estates and property development companies' balance sheet are looked through to find out what are their exposure to the taxable sector and how much is the impact on the pre-tax margin. 

Indo Real Estate Tax - Who Needs to Pay Up?

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.

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§  The SGX Maritime &amp; Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in tandem with the recovery of crude oil prices, which may be an indication that the sector could be bottoming out.
 
§  Despite the rally, the 18 constituents within the SGX MOE Index are trading at an average current price-to-book (PB) ratio of 0.7x, with 10 of them trading below their book values.
 
§  Consensus estimates are expecting oil prices to stabilise and…
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§  The SGX Maritime &amp; Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in tandem with the recovery of crude oil prices, which may be an indication that the sector could be bottoming out.
 
§  Despite the rally, the 18 constituents within the SGX MOE Index are trading at an average current price-to-book (PB) ratio of 0.7x, with 10 of them trading below their book values.
 
§  Consensus estimates are expecting oil prices to stabilise and…



SGX's MOE Sector Sustains 4Q16 Momentum into 2017

<ul>
<li>In the 2016 calendar year, more than 100 companies were involved in share buybacks, with the buyback considerations amounting to S$826 million. <a href="https://www.smartkarma.com/entities/74" target="_blank" data-smartkarma-citation="entities:74">Singapore Airlines Ltd (SIA SP)</a>, <a href="https://www.smartkarma.com/entities/114" target="_blank" data-smartkarma-citation="entities:114">Oversea Chinese Banking Corp. Limited (OCBC SP)</a>, <a href="https://www.smartkarma.com/entities/2894" target="_blank" data-smartkarma-citation="entities:2894">Global Logistic Properties Ltd (GLP SP)</a>, <a href="https://www.smartkarma.com/entities/765" target="_blank" data-smartkarma-citation="entities:765">Olam International Ltd (OLAM SP)</a> and <a href="https://www.smartkarma.com/entities/22" target="_blank" data-smartkarma-citation="entities:22">DBS Group Holdings Ltd (DBS SP)</a> ranked highest in terms of buyback consideration value over the calendar year.</li>
<li>More recently, for the month of December 2016, there were a total of 13,915,200 shares…</li>
</ul>


In the 2016 calendar year, more than 100 companies were involved in share buybacks, with the buyback considerations amounting to S$826 million. Singapore Airlines Ltd (SIA SP), Oversea Chinese Banking Corp. Limited (OCBC SP), Global Logistic Properties Ltd (GLP SP), Olam International Ltd (OLAM SP) and DBS Group Holdings Ltd (DBS SP) ranked highest in terms of buyback consideration value over the calendar year.
More recently, for the month of December 2016, there were a total of 13,915,200 shares…


Over 100 Firms Conducted Share Buybacks Totaling S$826M in 2016

Founder, Riedel Research

David Riedel

Founder

Independent equity research on GEM Markets

Riedel Research

Riedel provides equity research and analysis to leading financial organizations. By becoming members of a region (Asia, Latin America, Emerging Europe or Global), organizations have access to an integrated set of services including:

Regular company coverage reports
Up-to-date investment decision advice (buy, hold, sell)
Monthly regional and global conference calls
Customized company reports and unlimited on-line access to the program's services.

Riedel provides research coverage of companies across the full range of market capitalization. Experienced research professionals in each market develop company reports and analysis as well as earnings models and projections. Ratings are Buy, Hold and Sell with a focus on compelling investment ideas - both long and short. Downloadable, dynamic earnings models are built to facilitate sensitivity analysis.

Please feel free to contact us for complimentary access to our written research.  We want to show you that our unique research flow can add value and help develop a long-term, high value-add relationship.

Riedel's model focuses on providing clients with unique insights and consulting in addition to unlimited access to all produced research This model allows members to receive exponential benefits for their retainer fees.

<ul>
<li>Obama continues the 'pivot to Asia' by attending the ASEAN meeting in Laos.</li>
<li>ASEAN is a critical component of SE Asian stability, partnership with the US and should be a united front in protesting Chinese intrusions into the South China Sea.</li>
<li>A high-profile spat with Philippine president Duterte was an unfortunate distraction and an unhelpful development for the Philippines which benefits from strong U.S. support.</li>
<li>Thailand and Malaysia look like the best opportunities in ASEAN in the medium-term.</li>
<li>BUY…</li>
</ul>


Obama continues the 'pivot to Asia' by attending the ASEAN meeting in Laos.
ASEAN is a critical component of SE Asian stability, partnership with the US and should be a united front in protesting Chinese intrusions into the South China Sea.
A high-profile spat with Philippine president Duterte was an unfortunate distraction and an unhelpful development for the Philippines which benefits from strong U.S. support.
Thailand and Malaysia look like the best opportunities in ASEAN in the medium-term.
BUY…


Takeaways from ASEAN - Investment Opportunities

Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Equity Bottom-Up

Thai labor cost is now the highest in the region after Singapore and Malaysia, so we are bearish on Thai industrial estates. Japanese manufacturer will diversify outside Thailand, one of their largest foreign production base, into Vietnam, Indonesia, and other ASEAN countries. In our view, growth outlook is more important than valuations in a sunset industry, so we prefer to look at Amata VN and AKR Corporindo of Indonesia. Many of the Thai IE developers also have their own problems outside the core business.We also examine network contractors given the torrid construction of 4G networks. While we like their growth, we are rather worried about their high valuations. Value investors can look to AIT and MFEC, which are more attractively valued and have very high yields, even if AIT has scaled back on some of its prior ambitions in Myanmar. For those who hold SAMART, we strongly urge you to sell the stock, because it trades at a big premium to its NAV. In addition, there is risk that the stock will not recover unless a Thaksinite candidate wins the elections in late 2017.

Thai labor cost is now the highest in the region after Singapore and Malaysia, so we are bearish on Thai industrial estates. Japanese manufacturer will diversify outside Thailand, one of their largest foreign production base, into Vietnam, Indonesia, and other ASEAN countries. In our view, growth outlook is more important than valuations in a sunset industry, so we prefer to look at Amata VN and AKR Corporindo of Indonesia. Many of the Thai IE developers also have their own problems outside the core business.We also examine network contractors given the torrid construction of 4G networks. While we like their growth, we are rather worried about their high valuations. Value investors can look to AIT and MFEC, which are more attractively valued and have very high yields, even if AIT has scaled back on some of its prior ambitions in Myanmar. For those who hold SAMART, we strongly urge you to sell the stock, because it trades at a big premium to its NAV. In addition, there is risk that the stock will not recover unless a Thaksinite candidate wins the elections in late 2017.

Twilight of Thai Investment: Industrial Estates and Network Contractors

Indonesia

PT AKR Corporindo Tbk distributes chemical products such as caustic soda, Polyvinyl Chloride (PVC) resin, sorbitol, soda ash, and sodium sulfate.  Through its subsidiaries, the Company also manufactures chemicals, operates storage tanks and warehouses, and provides logistic services.

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AKR Corporindo (AKRA IJ)

Indo Real Estate Tax - Who Needs to Pay Up?

Alan Greene did an amazing job explaining how Lippo Malls Indonesia Retail Trust (LMRT SP) business model which derive its revenue from booming...

Henry Soediarko

SGX's MOE Sector Sustains 4Q16 Momentum into 2017

§ The SGX Maritime & Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in...

Singapore Exchange Ltd (SGX)

Takeaways from ASEAN - Investment Opportunities

Obama continues the 'pivot to Asia' by attending the ASEAN meeting in Laos. ASEAN is a critical component of SE Asian stability, partnership with...

David Riedel

Twilight of Thai Investment: Industrial Estates and Network Contractors

Thai labor cost is now the highest in the region after Singapore and Malaysia, so we are bearish on Thai industrial estates. Japanese manufacturer...

Athaporn Arayasantiparb, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Indo Real Estate Tax - Who Needs to Pay Up?

Alan Greene did an amazing job explaining how Lippo Malls Indonesia Retail Trust (LMRT SP) business model which derive its revenue from booming...

Henry Soediarko

SGX's MOE Sector Sustains 4Q16 Momentum into 2017

§ The SGX Maritime & Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in...

Singapore Exchange Ltd (SGX)

Over 100 Firms Conducted Share Buybacks Totaling S$826M in 2016

In the 2016 calendar year, more than 100 companies were involved in share buybacks, with the buyback considerations amounting to S$826 million....

Singapore Exchange Ltd (SGX)

Takeaways from ASEAN - Investment Opportunities

Obama continues the 'pivot to Asia' by attending the ASEAN meeting in Laos. ASEAN is a critical component of SE Asian stability, partnership with...

David Riedel

Twilight of Thai Investment: Industrial Estates and Network Contractors

Thai labor cost is now the highest in the region after Singapore and Malaysia, so we are bearish on Thai industrial estates. Japanese manufacturer...

Athaporn Arayasantiparb, CFA