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

Equity Bottom-Up

Far East Hospitality Trust / Equity Bottom-Up

<ul>
<li>Not all hospitality REITs in Singapore are beneficiaries of the rebound in tourism in Singapore. </li>
<li>Genting, OUE Commercial REIT, and Fraser Hospitality Trust are not exactly beneficiaries to the current tourism rebound. </li>
<li>Only Far East Hospitality Trust has a 100% exposure in hotels in Singapore while CDL Hospitality Trust has 41% of the total contribution from Singapore. </li>
</ul>


Not all hospitality REITs in Singapore are beneficiaries of the rebound in tourism in Singapore. 
Genting, OUE Commercial REIT, and Fraser Hospitality Trust are not exactly beneficiaries to the current tourism rebound. 
Only Far East Hospitality Trust has a 100% exposure in hotels in Singapore while CDL Hospitality Trust has 41% of the total contribution from Singapore. 


Southeast Asia Tourism: Who Are the Beneficiaries

Frasers Hospitality Trust / Equity Bottom-Up

<ul>
<li>Most of the countries that <a href="https://www.smartkarma.com/entities/frasers-hospitality-trust" target="_blank" data-smartkarma-citation="entities:913:1" rel="noopener">Frasers Hospitality Trust (FHT SP)</a> has assets in have their borders already opened. </li>
<li>The full impact of the reopening will only be seen in the subsequent quarters thus it is almost certain that next quarter's result will be better than the past one.</li>
<li>The upside from privatization is mostly priced in but the recovery of the business is real albeit potentially gradual. </li>
</ul>


Most of the countries that Frasers Hospitality Trust (FHT SP) has assets in have their borders already opened. 
The full impact of the reopening will only be seen in the subsequent quarters thus it is almost certain that next quarter's result will be better than the past one.
The upside from privatization is mostly priced in but the recovery of the business is real albeit potentially gradual. 


Fraser Hospitality Trust (FRHO): Privatization + Recovery.

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Digital Core REIT / Equity Capital Markets

<ul>
<li>Digital Core REIT (DCREIT), a data center REIT, raised around US$600m in its Singapore IPO.</li>
<li>The company is sponsored by Digital Realty, one of the largest REITs in the US, and over 60% of the deal is already spoken for by cornerstone investors.</li>
<li>In this note, we will talk about trading dynamics and valuations.</li>
</ul>


Digital Core REIT (DCREIT), a data center REIT, raised around US$600m in its Singapore IPO.
The company is sponsored by Digital Realty, one of the largest REITs in the US, and over 60% of the deal is already spoken for by cornerstone investors.
In this note, we will talk about trading dynamics and valuations.


Digital Core REIT IPO Trading - Strong Demand

Alpha-Centric ESG Research

Kyle Rudden

What color is a tree? Ask a child, and the answer is green. To a child, green is green, and all green is "tree-green." Ask an artist the same question, and the answer is a chromatic spectrum of greens blending into brownish shades in the shadows, and yellow tints in the sun.If corporate climate pledges – especially the me-too net-zero variety so en vogue of late – were a tangible product they would come packaged in a glossy sustainability-green. You've seen it. That botanical green so impossibly organic there is something vaguely unsettling about it.Open the package, and you might find the climate pledge equivalent of a brick in an iPhone box.To be fair, most climate pledges are well-intentioned, but it takes just one dodgy press release from an oil supermajor for the world to go mad with greenwashing paranoia. Out-and-out greenwashing is relatively rare, however. There is a bigger issue, and a source of both risk and opportunity.Some issuers are making huge promises – genuine but likely clouded by irrational exuberance from "keeping up with the Joneses" – and setting themselves up for failure, where the cost of failure is of epic proportions. Conversely, some companies are doing it right, turning risk into opportunity.

What color is a tree? Ask a child, and the answer is green. To a child, green is green, and all green is "tree-green." Ask an artist the same question, and the answer is a chromatic spectrum of greens blending into brownish shades in the shadows, and yellow tints in the sun.If corporate climate pledges – especially the me-too net-zero variety so en vogue of late – were a tangible product they would come packaged in a glossy sustainability-green. You've seen it. That botanical green so impossibly organic there is something vaguely unsettling about it.Open the package, and you might find the climate pledge equivalent of a brick in an iPhone box.To be fair, most climate pledges are well-intentioned, but it takes just one dodgy press release from an oil supermajor for the world to go mad with greenwashing paranoia. Out-and-out greenwashing is relatively rare, however. There is a bigger issue, and a source of both risk and opportunity.Some issuers are making huge promises – genuine but likely clouded by irrational exuberance from "keeping up with the Joneses" – and setting themselves up for failure, where the cost of failure is of epic proportions. Conversely, some companies are doing it right, turning risk into opportunity.

Climate Pledges: Singapore and Japan Lead APAC Issuers in Quality of Climate Pledges

<a href="https://www.smartkarma.com/entities/far-east-hospitality-trust" target="_blank" data-smartkarma-citation="entities:19061:1" rel="noopener">Far East Hospitality Trust (FEHT SP)</a>provides the stability that investors need from the substantial portion of the fixed revenue in the slow recovery in the hospitality industry. The company also benefit from getting the government contract to facilitate the SHN and hosts the Malaysian worker of <a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP)</a> and <a href="https://www.smartkarma.com/entities/singapore-post-ltd" target="_blank" data-smartkarma-citation="entities:150:1" rel="noopener">Singapore Post (SPOST SP)</a> . 
Among all the hotel assets, 3 of the hotels in the Orchard area will be the first ones to recover their occupancy rate and the room rate which will translate into a higher RevPar. 
Thanks to the skew in high PER from Ascott Residence Trust, FEHT is trading at a 51% discount to the peers while in PBR, FEHT is trading at a 37.5% discount to the peers. Excluding Ascott Residence Trust, FEHT is trading at a 7% premium to the peers and a 41% discount to the peers. FEHT is also trading below its book value currently. BUY.

Far East Hospitality Trust (FEHT SP)provides the stability that investors need from the substantial portion of the fixed revenue in the slow recovery in the hospitality industry. The company also benefit from getting the government contract to facilitate the SHN and hosts the Malaysian worker of Comfortdelgro Corp (CD SP) and Singapore Post (SPOST SP) . 
Among all the hotel assets, 3 of the hotels in the Orchard area will be the first ones to recover their occupancy rate and the room rate which will translate into a higher RevPar. 
Thanks to the skew in high PER from Ascott Residence Trust, FEHT is trading at a 51% discount to the peers while in PBR, FEHT is trading at a 37.5% discount to the peers. Excluding Ascott Residence Trust, FEHT is trading at a 7% premium to the peers and a 41% discount to the peers. FEHT is also trading below its book value currently. BUY. 

Far East Hospitality Trust (FEHT): Stable in Slow Recovery

Singapore

CDL Hospitality Trusts is a stapled group compromising H-REIT and HBT. H-REIT is a real estate investment trust that invest in a portfolio of income-producing properties and HBT is a business trust.

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CDL Hospitality Trusts (CDREIT SP)

Southeast Asia Tourism: Who Are the Beneficiaries

the real beneficiaries of the Singapore rebound in tourism (ex-China) are limited to a few names only. Far East Hospitality Trust and CDL...

Henry Soediarko

Fraser Hospitality Trust (FRHO): Privatization + Recovery.

The upside may not be much anymore since the bulk of the upside from the privatization news is already priced in but the gross operating revenue is...

Henry Soediarko

Digital Core REIT IPO Trading - Strong Demand

Digital Core REIT (DCREIT), a data center REIT, raised US$600m in its Singapore IPO. In this note we will talk about the trading dynamics.

Sumeet Singh

Climate Pledges: Singapore and Japan Lead APAC Issuers in Quality of Climate Pledges

Corporate climate pledges come many shades of green, and for some their colors start to run on closer inspection. But not in Singapore and Japan...

Kyle Rudden

Far East Hospitality Trust (FEHT): Stable in Slow Recovery

Among all the hotel assets, 3 of the FEHT hotels in the Orchard area will be the first ones to recover their occupancy rate and the room rate which...

Henry Soediarko

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