Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

<ul>
<li>There are many simple domestic banks that can shine in a complex world</li>
<li>Outside of the largest banks in many regions, there are uncovered gems</li>
<li>This lessor known bank in Philippines has seen dramatic profit growth</li>
</ul>


There are many simple domestic banks that can shine in a complex world
Outside of the largest banks in many regions, there are uncovered gems
This lessor known bank in Philippines has seen dramatic profit growth


APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC 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

Xiaocaiyuan International Holding / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/xiaocaiyuan-international-holding-ltd" target="_blank" data-smartkarma-citation="entities:40688:1" rel="noopener">Xiaocaiyuan International Holding (XCY HK)</a> is looking to raise up to US$200m in its upcoming HK IPO.</li>
<li>Xiaocaiyuan is a Chinese home-style cuisine restaurant operator. It prices its menus’ items to achieve average spending per consumer between RMB50 and RMB70 for its dine-in customers at its restaurants. </li>
<li>In this note, we talk about the company’s historical performance.</li>
</ul>



Xiaocaiyuan International Holding (XCY HK) is looking to raise up to US$200m in its upcoming HK IPO.
Xiaocaiyuan is a Chinese home-style cuisine restaurant operator. It prices its menus’ items to achieve average spending per consumer between RMB50 and RMB70 for its dine-in customers at its restaurants. 
In this note, we talk about the company’s historical performance.


Xiaocaiyuan International Holding Pre-IPO - Strong Network Expansion and Same Store Sales Growth

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

Cross Asset Strategy

<ul>
<li>The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.</li>
<li>The past week saw insights on Singapore's economic outlook, <a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a>, <a href="https://www.smartkarma.com/entities/adi-sarana-armada-tbk-pt" target="_blank" data-smartkarma-citation="entities:16947:1" rel="noopener">Adi Sarana Armada (ASSA IJ)</a>, <a href="https://www.smartkarma.com/entities/gojek-goto" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">GoTo (GOTO IJ)</a>, and <a href="https://www.smartkarma.com/entities/scg-packaging-public-company-limited" target="_blank" data-smartkarma-citation="entities:28684:1" rel="noopener">SCG Packaging (SCGP TB)</a>.</li>
<li>
<a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" data-smartkarma-citation="accounts:12" rel="noopener">Daniel Tabbush</a> also took a look and Philippine Banks highlighting <a href="https://www.smartkarma.com/entities/china-banking-corporation" target="_blank" data-smartkarma-citation="entities:22788:1" rel="noopener">China Banking (CHIB PM)</a> as his top pick. We also comment on <a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a> and <a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekom (TLKM IJ)</a>. </li>
</ul>


The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.
The past week saw insights on Singapore's economic outlook, Bank Central Asia (BBCA IJ), Adi Sarana Armada (ASSA IJ), GoTo (GOTO IJ), and SCG Packaging (SCGP TB).

Daniel Tabbush also took a look and Philippine Banks highlighting China Banking (CHIB PM) as his top pick. We also comment on Astra International (ASII IJ) and Telekom (TLKM IJ). 


The Week That Was in ASEAN@Smartkarma - BCA's Transactional, ASSA & Anteraja, and Philippine Banks

Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

China Banking Corporation dedicates itself to mainly corporate credit (79% of Loan book) and to a lesser extent consumer segments (20% of credit), backed by source of funding balanced by Savings-heavy CASA (62% of Deposits) and by time deposits (38%).Q121/20 results show strong fundamental trends. There were improvements in Profitability, in NIM/Spread, in Efficiency, in Capital Adequacy, in Liquidity, and in Provisioning. There was though some deep deterioration in headline Asset Quality, reflected by a sky-high rise in Loan Loss Provisions to counter the swelling of Recorded Investment of Impaired Loans and Impaired Loans, net of Reserves. The bottom-line was supported by firm “Core Income” growth, rooted in much lower Interest Expenses, combining with Margin and Efficiency gains, and with forceful expansion of non-core streams, which partially offset the aforementioned jump in LLPs which reduced Comprehensive Income growth to 50.4% YoY.A FV of 8%, a PBV of 0.62x, a Dividend Yield of 4.0%, an Earnings Yield of 21.4% and a Total Return Ratio of 3.1x are not unappealing. CHIB commands a top decile PH Score™ (10) which captures benign value-quality trends, including a supportive valuation variable. The VFM ranking is elevated too (top quartile globally) which encapsulates aforementioned fundamental momentum, valuation, and technicals.The Philippines trades on a healthy discount (27%) versus its historical CAPE average.The Banking Sector in the Philippines is less stressed by disruptive fintech developments than elsewhere at this juncture.

China Banking Corporation dedicates itself to mainly corporate credit (79% of Loan book) and to a lesser extent consumer segments (20% of credit), backed by source of funding balanced by Savings-heavy CASA (62% of Deposits) and by time deposits (38%).Q121/20 results show strong fundamental trends. There were improvements in Profitability, in NIM/Spread, in Efficiency, in Capital Adequacy, in Liquidity, and in Provisioning. There was though some deep deterioration in headline Asset Quality, reflected by a sky-high rise in Loan Loss Provisions to counter the swelling of Recorded Investment of Impaired Loans and Impaired Loans, net of Reserves. The bottom-line was supported by firm “Core Income” growth, rooted in much lower Interest Expenses, combining with Margin and Efficiency gains, and with forceful expansion of non-core streams, which partially offset the aforementioned jump in LLPs which reduced Comprehensive Income growth to 50.4% YoY.A FV of 8%, a PBV of 0.62x, a Dividend Yield of 4.0%, an Earnings Yield of 21.4% and a Total Return Ratio of 3.1x are not unappealing. CHIB commands a top decile PH Score™ (10) which captures benign value-quality trends, including a supportive valuation variable. The VFM ranking is elevated too (top quartile globally) which encapsulates aforementioned fundamental momentum, valuation, and technicals.The Philippines trades on a healthy discount (27%) versus its historical CAPE average.The Banking Sector in the Philippines is less stressed by disruptive fintech developments than elsewhere at this juncture.

CHIB: Trends Continue to Impress While Valuation Is Supportive

Philippine National Bank / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/233" target="_blank" data-smartkarma-citation="entities:233:1">Philippine National Bank (PNB PM)</a> continues to go unnoticed.  We are doubtful that this will last indefinitely. This is especially the case given the size of PNB in Philippine banking and its impressive transformation. It remains one of the best turnaround stories in Asia-Pacific, where its bad loans have come down dramatically, its returns have risen and where profit growth is amongst the most robust in all the region. PNB is at a paltry 0.4x PB and 4.4x PE, but with 19% average annual profit growth and ROA in excess of 1%,. Its market capitalization is only 5.4% of assets and there is no major bank in the region at this low level and yet with an ROA as high as that of PNB. With its 3Q18 results just out, revealing ongoing positive change, it is not likely that this bank will remain unnoticed.

Philippine National Bank (PNB PM) continues to go unnoticed.  We are doubtful that this will last indefinitely. This is especially the case given the size of PNB in Philippine banking and its impressive transformation. It remains one of the best turnaround stories in Asia-Pacific, where its bad loans have come down dramatically, its returns have risen and where profit growth is amongst the most robust in all the region. PNB is at a paltry 0.4x PB and 4.4x PE, but with 19% average annual profit growth and ROA in excess of 1%,. Its market capitalization is only 5.4% of assets and there is no major bank in the region at this low level and yet with an ROA as high as that of PNB. With its 3Q18 results just out, revealing ongoing positive change, it is not likely that this bank will remain unnoticed.

Philippine National Bank – A Giant Gem, Still Undiscovered

Philippines

China Banking Corporation is a commercial bank. The Bank provides products and services such as deposit products, loans and trade finance, treasury products, trust products, corporate finance and other investment banking services.

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China Banking (CHIB PM)

Hail The Simple Banks

Simple and unfollowed banks in Asia-Pacific can reveal gems. CHIB in Philippines may be one of these banks, with exceptional core profit growth and...

Daniel Tabbush

Xiaocaiyuan International Holding Pre-IPO - Strong Network Expansion and Same Store Sales Growth

Xiaocaiyuan International Holding (XCY HK) is looking to raise up to US$200m in its upcoming HK IPO. In this note, we talk about the company’s...

Ethan Aw

The Week That Was in ASEAN@Smartkarma - BCA's Transactional, ASSA & Anteraja, and Philippine Banks

The past week saw insights on Singapore's economic outlook, Bank Central Asia (BBCA IJ), Adi Sarana Armada (ASSA IJ), GoTo (GOTO IJ), and SCG...

Angus Mackintosh

CHIB: Trends Continue to Impress While Valuation Is Supportive

The Philippines are not an unattractive market. The Banking Sector offers opportunities. China Banking Corporation is both cheap and commands...

Paul Hollingworth

Philippine National Bank – A Giant Gem, Still Undiscovered

Philippine National Bank (PNB PM) continues to go unnoticed. We are doubtful that this will last indefinitely. This is especially the case given...

Daniel Tabbush

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