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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/siam-makro-public-co-ltd" target="_blank" data-smartkarma-citation="entities:5577:1" rel="noopener">Siam Makro Public (MAKRO TB)</a> is looking to raise up to US$1.8bn in its upcoming Public Offering.</li>
<li>The deal size has been reduced from the initial US$3.9bn down to US$1.8bn, including over-allotment. </li>
<li>Placement price is fixed and discount is tight. There will also be no index fast entry/early inclusion to support the deal in the near-term. </li>
</ul>



Siam Makro Public (MAKRO TB) is looking to raise up to US$1.8bn in its upcoming Public Offering.
The deal size has been reduced from the initial US$3.9bn down to US$1.8bn, including over-allotment. 
Placement price is fixed and discount is tight. There will also be no index fast entry/early inclusion to support the deal in the near-term. 


Siam Makro Placement - Smaller Deal Size with a Tight Discount and No Fast Entry

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN 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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/berli-jucker-public-co-ltd" target="_blank" data-smartkarma-citation="entities:3685:1" rel="noopener">Berli Jucker (BJC TB)</a> was hit by COVID lockdowns in 3Q2021 but the recovery has already started for its retail and packaging businesses, especially in Vietnam for the latter.</li>
<li>The company's expansion plans for Mini Big C continue apace, as well conversions to Food Place and its store renovation program, which points toward a strong growth recovery in 2022.</li>
<li>The competitive intensity in Thai retail is reducing, with CP Group's acquisition of Tesco Thailand reducing major players to two, whilst there is a further restructuring under <a href="https://www.smartkarma.com/entities/siam-makro-public-co-ltd" target="_blank" data-smartkarma-citation="entities:5577:1" rel="noopener">Siam Makro Public.</a>
</li>
</ul>



Berli Jucker (BJC TB) was hit by COVID lockdowns in 3Q2021 but the recovery has already started for its retail and packaging businesses, especially in Vietnam for the latter.
The company's expansion plans for Mini Big C continue apace, as well conversions to Food Place and its store renovation program, which points toward a strong growth recovery in 2022.
The competitive intensity in Thai retail is reducing, with CP Group's acquisition of Tesco Thailand reducing major players to two, whilst there is a further restructuring under Siam Makro Public.



Berli Jucker (BJC TB) - Canned Recovery in Motion

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Central Retail Corp Ltd / Equity Bottom-Up

<ul>
<li>CRC reported 3Q21 net loss of Bt2.2bn (Net profit of Bt837m in 3Q20 and net loss of Bt471m in 2Q21) eroded by partial lockdown measures in Thailand and Vietnam.</li>
<li>3Q21 revenue was at Bt39bn (-12%YoY, -11%QoQ) due to temporary closures in some non-food stores during 12 Jul -31 Aug 21 in Thailand and throughout 3 months in Vietnam.</li>
<li>•Meanwhile, Italy continued to grow, and all stores resumed opening since Apr 21.</li>
</ul>


CRC reported 3Q21 net loss of Bt2.2bn (Net profit of Bt837m in 3Q20 and net loss of Bt471m in 2Q21) eroded by partial lockdown measures in Thailand and Vietnam.
3Q21 revenue was at Bt39bn (-12%YoY, -11%QoQ) due to temporary closures in some non-food stores during 12 Jul -31 Aug 21 in Thailand and throughout 3 months in Vietnam.
•Meanwhile, Italy continued to grow, and all stores resumed opening since Apr 21.


CRC: The 2nd Consecutive Quarter Loss in 3Q21

<div class="content-highlight">
<p>A call with <a href="https://www.smartkarma.com/entities/berli-jucker-public-co-ltd" target="_blank" data-smartkarma-citation="entities:3685:1" rel="noopener">Berli Jucker (BJC TB)</a> management revealed ongoing pressure from the latest wave of COVID-19 in Thailand, which continues to impact the retail business under Big C but there is some light at the end of the tunnel with the company continuing to focus on renovating and converting stores, as well as expanding its overall network including its omnichannel network.</p>
</div>
<p>The company's recent results saw sales decrease by -5.4% YoY to THB 34,161m in 2Q2021 mainly due to the decline in its retail business under the modern supply chain, which continued to be impacted by COVID-19 related issues. Despite the ongoing third wave in Thailand 3Q2020 is looking better on a YoY basis. </p>
<p>Currently, 29 out of 77 provinces are dark red zones currently but this includes all the most populous areas of Thailand. Big C continues to see strong growth from food but faces pressure as Softline cannot be sold (non-essential) and non-food overall is a drag.</p>
<p>In terms of formats, Mini Big C and the company's supermarket format under The Food Place has been performing relatively well. Mini Big C are more like proximity mini-markets rather than convenience stores. </p>
<p>Big C also continues to pursue its omnichannel approach to sales, which involves using third party operators but also using call and chat avenues through Line and Whatsapp. </p>
<p>The company is also ramping up the renovations of its existing stores and has had a good experience so far with this exercise in terms of improving returns</p>
<p>The key catalyst for the retail business will come from a recovery in the tourism business, given that some of the company's stores had heavy exposure to sales to tourists pre-pandemic.</p>
<p>The company's packaging supply chain business saw a resilient performance in 2Q2021, with especially strong growth from its glass bottling business.</p>
<p><a href="https://www.smartkarma.com/entities/berli-jucker-public-co-ltd" target="_blank" data-smartkarma-citation="entities:3685:1" rel="noopener">Berli Jucker (BJC TB)</a> saw strong performance in its consumer supply chain business, mainly due to the addition of Unicharm as a new client for Thailand for traditional markets.</p>
<p><a href="https://www.smartkarma.com/entities/berli-jucker-public-co-ltd" target="_blank" data-smartkarma-citation="entities:3685:1" rel="noopener">Berli Jucker (BJC TB)</a> healthcare and technical division registered a steady performance in 2Q2021 with COVID-19 related products doing well plus new hospital budget-related orders driving growth.</p>
<section class="figure">
<figure class="editor-figure mceNonEditable"></figure>
</section>
<p>The company continues to make progress on its ESG credentials and became part of FTSE4Good Emerging Markets and FTSE4Good ASEAN 5 indices at the end of June.</p>
<p><a href="https://www.smartkarma.com/entities/berli-jucker-public-co-ltd" target="_blank" data-smartkarma-citation="entities:3685:1" rel="noopener">Berli Jucker (BJC TB)</a> is an interesting proxy to the consumer recovery, not just in Thailand but also to South East Asia, given its exposure in Vietnam, and Malaysia. It remains cheap relative to peers, trading on 25.0x FY22E PER and 21.4x FY23E PER, with forecast EPS growth of +41.2% and +16.6%% for FY22E and FY23E respectively.</p>


A call with Berli Jucker (BJC TB) management revealed ongoing pressure from the latest wave of COVID-19 in Thailand, which continues to impact the retail business under Big C but there is some light at the end of the tunnel with the company continuing to focus on renovating and converting stores, as well as expanding its overall network including its omnichannel network.

The company's recent results saw sales decrease by -5.4% YoY to THB 34,161m in 2Q2021 mainly due to the decline in its retail business under the modern supply chain, which continued to be impacted by COVID-19 related issues. Despite the ongoing third wave in Thailand 3Q2020 is looking better on a YoY basis. 
Currently, 29 out of 77 provinces are dark red zones currently but this includes all the most populous areas of Thailand. Big C continues to see strong growth from food but faces pressure as Softline cannot be sold (non-essential) and non-food overall is a drag.
In terms of formats, Mini Big C and the company's supermarket format under The Food Place has been performing relatively well. Mini Big C are more like proximity mini-markets rather than convenience stores. 
Big C also continues to pursue its omnichannel approach to sales, which involves using third party operators but also using call and chat avenues through Line and Whatsapp. 
The company is also ramping up the renovations of its existing stores and has had a good experience so far with this exercise in terms of improving returns
The key catalyst for the retail business will come from a recovery in the tourism business, given that some of the company's stores had heavy exposure to sales to tourists pre-pandemic.
The company's packaging supply chain business saw a resilient performance in 2Q2021, with especially strong growth from its glass bottling business.
Berli Jucker (BJC TB) saw strong performance in its consumer supply chain business, mainly due to the addition of Unicharm as a new client for Thailand for traditional markets.
Berli Jucker (BJC TB) healthcare and technical division registered a steady performance in 2Q2021 with COVID-19 related products doing well plus new hospital budget-related orders driving growth.



The company continues to make progress on its ESG credentials and became part of FTSE4Good Emerging Markets and FTSE4Good ASEAN 5 indices at the end of June.
Berli Jucker (BJC TB) is an interesting proxy to the consumer recovery, not just in Thailand but also to South East Asia, given its exposure in Vietnam, and Malaysia. It remains cheap relative to peers, trading on 25.0x FY22E PER and 21.4x FY23E PER, with forecast EPS growth of +41.2% and +16.6%% for FY22E and FY23E respectively.

Berli Jucker (BJC TB) - Bright Lights at the End of the Tunnel

<p><strong>CRC reported 2Q21 net loss of Bt471m, compared to net loss of Bt2.6bn in 2Q20 and net profit of Bt401m eroded by partial lockdown measures in Thailand and Vietnam.</strong></p><div>• In 2Q21, all stores in Italy resumed opening from mid of Apr 21 onwards and the acquisition of COL in Feb 21. This resulted in 2Q21 revenue increased 14%YoY to Bt43bn.</div><div></div><div>• Meanwhile, revenue dropped 5%QoQ due to stores’ operating time limited in Thailand from May 21 and non-food stores temporary closed in key cities of Vietnam from Jun 21.</div><div></div><div>• Trimmed 2021 earnings forecast to factor in partial lockdown measures in Thailand and Vietnam.</div><div></div><div>• We expect earnings momentum to recover gradually backed by more efficient cost management in respond to partial lockdown. Moreover, we expect earnings to recover strongly in 2022, after domestic lockdown easing.</div><div>
<br>
</div><p><strong>We maintain BUY rating with new target price of Bt37.5, derived from a DCF (10%WACC, 2%TG). Our target price implies 33.7xPE’22E, which represents a 15% premium to the Asia ex Japan Consumer Discretionary sector.</strong></p>

CRC reported 2Q21 net loss of Bt471m, compared to net loss of Bt2.6bn in 2Q20 and net profit of Bt401m eroded by partial lockdown measures in Thailand and Vietnam.• In 2Q21, all stores in Italy resumed opening from mid of Apr 21 onwards and the acquisition of COL in Feb 21. This resulted in 2Q21 revenue increased 14%YoY to Bt43bn.• Meanwhile, revenue dropped 5%QoQ due to stores’ operating time limited in Thailand from May 21 and non-food stores temporary closed in key cities of Vietnam from Jun 21.• Trimmed 2021 earnings forecast to factor in partial lockdown measures in Thailand and Vietnam.• We expect earnings momentum to recover gradually backed by more efficient cost management in respond to partial lockdown. Moreover, we expect earnings to recover strongly in 2022, after domestic lockdown easing.
 
We maintain BUY rating with new target price of Bt37.5, derived from a DCF (10%WACC, 2%TG). Our target price implies 33.7xPE’22E, which represents a 15% premium to the Asia ex Japan Consumer Discretionary sector.

CRC: 2Q21 Result Was the 2nd Loss in past Five Quarters

Thailand

Central Retail Corp Ltd operates general merchandise stores. The Company offers electronics, sports, stationery, home improvement, and office products. Central Retail serves customers in Thailand.

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Central Retail Corp Ltd (CRC TB)

Siam Makro Placement - Smaller Deal Size with a Tight Discount and No Fast Entry

Siam Makro Public (MAKRO TB) is looking to raise up to US$1.8bn. Placement price is fixed and discount is tight. There will also be no index fast...

Sumeet Singh

Berli Jucker (BJC TB) - Canned Recovery in Motion

Berli Jucker (BJC TTB) is on the cusp of a strong recovery going into 4Q2021, and even more so in 2021, mainly driven by its retail and packaging...

Angus Mackintosh

CRC: The 2nd Consecutive Quarter Loss in 3Q21

CRC reported 3Q21 net loss of Bt2.2bn (Net profit of Bt837m in 3Q20 and net loss of Bt471m in 2Q21) eroded by partial lockdown measures in Thailand...

Pi Securities PCL, Thailand

Berli Jucker (BJC TB) - Bright Lights at the End of the Tunnel

Berli Jucker's retail business under Big C continues to see pressure from COVID-19 issues but improvements are underway and it is expanding again,...

Angus Mackintosh

CRC: 2Q21 Result Was the 2nd Loss in past Five Quarters

CRC reported 2Q21 net loss of Bt471m, compared to net loss of Bt2.6bn in 2Q20 and net profit of Bt401m eroded by partial lockdown measures in...

Pi Securities PCL, Thailand

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