Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

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

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/15888" target="_blank" data-smartkarma-citation="entities:15888:1">Breadtalk Group Ltd (BREAD SP)</a> continues its trend of lower revenues but higher profits. The <a href="http://infopub.sgx.com/FileOpen/BTG_3Q2017_PressRelease.ashx?App=Announcement&amp;FileID=476896" target="_blank">full results</a> set and <a href="http://infopub.sgx.com/FileOpen/BTG_3Q2017_PresentationSlides.ashx?App=Announcement&amp;FileID=476897" target="_blank">presentation</a> was uploaded on SGX this morning.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/037/354/original/3Q17%20overview%20results.jpg?1509924849" class="editor-image img-responsive" data-smartkarma-image-id="37354"></figure>As explained in previous insights the management continues to close underperforming stores and brands. An example would be the closure of 6 Ramen Play restaurants which clearly did not meet the financial metrics the company wanted. The bakery and food atrium divisions saw the closure of 3 stores each. Din Tai Fung's restaurant count…

Breadtalk Group Ltd (BREAD SP) continues its trend of lower revenues but higher profits. The full results set and presentation was uploaded on SGX this morning.As explained in previous insights the management continues to close underperforming stores and brands. An example would be the closure of 6 Ramen Play restaurants which clearly did not meet the financial metrics the company wanted. The bakery and food atrium divisions saw the closure of 3 stores each. Din Tai Fung's restaurant count…

Breadtalk 3Q17 Shows Further Margin Improvement

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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Biggest Hotel, Restaurant & Leisure Stocks Extend Average YTD Gain to 20%

Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

QAF’s 72% drop in headline net profit for 1H17 does not look pretty, but it masks the overall potential of the underlying businesses. Also, the Group recorded an exceptional gain of SGD 9.7m in 1H16 due to the sale of its 20% shareholding interest in GBKL. Excluding this, Group PBT in 1H17 decreased by only 27%. In this article, I hope to address some of the bright spots found beyond the headline figures:<ol class=""><li>The bakery segment EBIT fell 41%YoY largely due to the deconsolidation of GBKL and some one-off events. With steps taken to ensure smoother production in 2H17, EBIT margins are likely to stabilize from here.</li><li>QAF is planning to list its primary production segment on the Australia Stock Exchange. Peer valuations indicate that the market is undervaluing the pork business by almost half. </li><li>The current share price weakness means that the market is overlooking the work-in-progress at its bakery, the unlocking of value at its primary production segment, and historically steady dividends. </li></ol>

QAF’s 72% drop in headline net profit for 1H17 does not look pretty, but it masks the overall potential of the underlying businesses. Also, the Group recorded an exceptional gain of SGD 9.7m in 1H16 due to the sale of its 20% shareholding interest in GBKL. Excluding this, Group PBT in 1H17 decreased by only 27%. In this article, I hope to address some of the bright spots found beyond the headline figures:The bakery segment EBIT fell 41%YoY largely due to the deconsolidation of GBKL and some one-off events. With steps taken to ensure smoother production in 2H17, EBIT margins are likely to stabilize from here.QAF is planning to list its primary production segment on the Australia Stock Exchange. Peer valuations indicate that the market is undervaluing the pork business by almost half. The current share price weakness means that the market is overlooking the work-in-progress at its bakery, the unlocking of value at its primary production segment, and historically steady dividends. 

QAF: Improving Bakery + Listing of Pork Business + Net Cash = 10% to 16% Upside Not Yet Baked In

Value-focused bottom-up Asian equity research

NVB Asia Pte Ltd

Last week <a href="https://www.smartkarma.com/entities/15888" target="_blank" data-smartkarma-citation="entities:15888:1">Breadtalk Group Ltd (BREAD SP)</a> reported its 2Q17 results. The trend of slightly declining revenues but much higher bottom line profits continued. Please see all details below.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/031/183/original/Capture.PNG?1502118145" class="editor-image img-responsive" data-smartkarma-image-id="31183"></figure>Breadtalk management is focused on improving profits rather than topline sales. In this process the group is closing down stores (6 bakeries, 1 food atrium and 2 restaurants closed in 1H17) which brought overall store count to 942.The Bakery division remains the most important contributor to the group and had 8.3%…

Last week Breadtalk Group Ltd (BREAD SP) reported its 2Q17 results. The trend of slightly declining revenues but much higher bottom line profits continued. Please see all details below.Breadtalk management is focused on improving profits rather than topline sales. In this process the group is closing down stores (6 bakeries, 1 food atrium and 2 restaurants closed in 1H17) which brought overall store count to 942.The Bakery division remains the most important contributor to the group and had 8.3%…

Breadtalk 1H17 Results: Focus on Margins over Revenues Ongoing & More Special Dividends on the Way

In part 1 of the series, I have discussed the primary production (pork) segment of <a href="https://www.smartkarma.com/entities/10396" target="_blank" data-smartkarma-citation="entities:10396:1">QAF Ltd (QAF SP)</a>. In part 2, I will provide an overview of its bakery segment, its profit trend in the last decade, and a bit of history. Those familiar with the story of Gardenia and Bonjour breads can skip the history portion.  In the later part of this article, I try to evaluate the market’s implied valuation for its bakery division, my findings for this business, and near-term risks that can affect its share price.

In part 1 of the series, I have discussed the primary production (pork) segment of QAF Ltd (QAF SP). In part 2, I will provide an overview of its bakery segment, its profit trend in the last decade, and a bit of history. Those familiar with the story of Gardenia and Bonjour breads can skip the history portion.  In the later part of this article, I try to evaluate the market’s implied valuation for its bakery division, my findings for this business, and near-term risks that can affect its share price.

Unlocking QAF's Value (Part 2) - Artisan Bakery in the Making?

Singapore

BreadTalk Group Limited is an investment holding company that engages in the provision of management services in the bakery, food, and restaurant businesses. The Company, through its subsidiaries, manufactures and retails a variety of food, bakery, and confectionery products. BreadTalk Group also offers franchising opportunities and operates internationally.

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BreadTalk (BREAD SP)

Breadtalk 3Q17 Shows Further Margin Improvement

Breadtalk Group Ltd (BREAD SP) continues its trend of lower revenues but higher profits. The full results set and presentation was uploaded on SGX...

Nicolas Van Broekhoven

Biggest Hotel, Restaurant & Leisure Stocks Extend Average YTD Gain to 20%

Singapore Exchange Ltd (SGX)

QAF: Improving Bakery + Listing of Pork Business + Net Cash = 10% to 16% Upside Not Yet Baked In

QAF’s 72% drop in headline net profit for 1H17 does not look pretty, but it masks the overall potential of the underlying businesses. Also, the...

Valerie Law, CFA

Breadtalk 1H17 Results: Focus on Margins over Revenues Ongoing & More Special Dividends on the Way

Last week Breadtalk Group Ltd (BREAD SP) reported its 2Q17 results. The trend of slightly declining revenues but much higher bottom line profits...

Nicolas Van Broekhoven

Unlocking QAF's Value (Part 2) - Artisan Bakery in the Making?

In part 1 of the series, I have discussed the primary production (pork) segment of QAF Ltd (QAF SP). In part 2, I will provide an overview of its...

Valerie Law, CFA

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