Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Equity Bottom-Up

Gone With the Wind. We’ve always been bearish on the overall wind farm industry, and there are a few names in this renewable energy space, all of which are trading at insane multiples (EA, GUNKUL, DEMCO). EA, prior to moving from the small-cap bourse (MAI) to the main bourse (SET), actually accounted for half of the MAI, so what’s that about?! In early February, EA was investigated for planning to trespass on natural reserves in order to build their wind farm. In the convoluted manner of Thai…

Gone With the Wind. We’ve always been bearish on the overall wind farm industry, and there are a few names in this renewable energy space, all of which are trading at insane multiples (EA, GUNKUL, DEMCO). EA, prior to moving from the small-cap bourse (MAI) to the main bourse (SET), actually accounted for half of the MAI, so what’s that about?! In early February, EA was investigated for planning to trespass on natural reserves in order to build their wind farm. In the convoluted manner of Thai…

Gone With the Wind: Wind Farms Facing Headwinds

APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<a href="https://www.smartkarma.com/entities/10665" target="_blank" data-smartkarma-citation="entities:10665:1">Cosco Capital Inc (COSCO PM)</a> was at its record discount to NAV when we first wrote on it mid-2016. Discount to NAV has since then narrowed, but it was mostly driven by the decline of Puregold from August to December 2016.In this insight, we will focus on analyzing Cosco Capital's under-appreciated operating assets and how they have been performing.

Cosco Capital Inc (COSCO PM) was at its record discount to NAV when we first wrote on it mid-2016. Discount to NAV has since then narrowed, but it was mostly driven by the decline of Puregold from August to December 2016.In this insight, we will focus on analyzing Cosco Capital's under-appreciated operating assets and how they have been performing.

Cosco Capital - Unlisted Operating Assets Remain Under-Appreciated

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)

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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

In this review, we highlight the importance for investors to: 1) not 'jump the gun' and sell on companies that are in decline; and 2) think logically about the macro picture, since those may have an impact on whether companies can recover or would lose relevance in the marketplace altogether.From our observations, the companies in Thailand that do turn around tend to follow one or more of these four measures, namely: 1) operations: a complete transformation rather than minor patch-ups (eg. KARMART, IVL); 2) competitive strategy: changing the frame of reference (PIZZA...now part of MINT); 3) debt restructuring (BLAND, TPI); and 4) marketing: re-branding (eg. DTAC, BTS). Whether you are stuck with certain investments or thinking about investing in potential turnaround plays, observing these four traits or steps could be helpful.

In this review, we highlight the importance for investors to: 1) not 'jump the gun' and sell on companies that are in decline; and 2) think logically about the macro picture, since those may have an impact on whether companies can recover or would lose relevance in the marketplace altogether.From our observations, the companies in Thailand that do turn around tend to follow one or more of these four measures, namely: 1) operations: a complete transformation rather than minor patch-ups (eg. KARMART, IVL); 2) competitive strategy: changing the frame of reference (PIZZA...now part of MINT); 3) debt restructuring (BLAND, TPI); and 4) marketing: re-branding (eg. DTAC, BTS). Whether you are stuck with certain investments or thinking about investing in potential turnaround plays, observing these four traits or steps could be helpful.

Turnarounds: Finding A Phoenix In the Land of the Dead

Government owned or quasi-state entities control a huge swathe of Thai corporate interest. In this review, we highlight PTT Group, the country's state oil company and arguably one of the largest industrial groups since it is the only one that regularly makes the Fortune 500. With interests spanning oil, gas, pipelines, refineries, and petrochems, some people claim it virtually controls the country's energy sector, and they wouldn't be too far off the mark. From humble beginnings of the Three Soldiers, PTT has taken on global giants like Shell and ExxonMobil and surprised the world with its ingenuity through the Amazon Coffee concept. On a stock basis, we would not really recommend any stock here, though there is still a little upside left for PTT, Thai Oil, and BAFS in our view.

Government owned or quasi-state entities control a huge swathe of Thai corporate interest. In this review, we highlight PTT Group, the country's state oil company and arguably one of the largest industrial groups since it is the only one that regularly makes the Fortune 500. With interests spanning oil, gas, pipelines, refineries, and petrochems, some people claim it virtually controls the country's energy sector, and they wouldn't be too far off the mark. From humble beginnings of the Three Soldiers, PTT has taken on global giants like Shell and ExxonMobil and surprised the world with its ingenuity through the Amazon Coffee concept. On a stock basis, we would not really recommend any stock here, though there is still a little upside left for PTT, Thai Oil, and BAFS in our view.

Big Brother (Season Premiere): Empire of Oil

Thailand

Bangchak Corporation Public Company Limited operates as an energy company. The Company offers petroleum exploration and production, biomass, crude oil, and solar energy. Bangchak markets its products in Thailand.

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Bangchak Corporation (BCP TB)

Gone With the Wind: Wind Farms Facing Headwinds

Gone With the Wind. We’ve always been bearish on the overall wind farm industry, and there are a few names in this renewable energy space, all of...

Athaporn Arayasantiparb, CFA

Cosco Capital - Unlisted Operating Assets Remain Under-Appreciated

Cosco Capital Inc (COSCO PM) was at its record discount to NAV when we first wrote on it mid-2016. Discount to NAV has since then narrowed, but it...

Zhen Zhou, Toh

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)

Turnarounds: Finding A Phoenix In the Land of the Dead

In this review, we highlight the importance for investors to: 1) not 'jump the gun' and sell on companies that are in decline; and 2) think...

Athaporn Arayasantiparb, CFA

Big Brother (Season Premiere): Empire of Oil

Government owned or quasi-state entities control a huge swathe of Thai corporate interest. In this review, we highlight PTT Group, the country's...

Athaporn Arayasantiparb, CFA

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