Asia Consumer Research, Investory

Devi Subhakesan

Asia Consumer Research

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Thematic (Sector/Industry)

Emerging Asia - notably China and India -  is witnessing a  steady expansion in the Male grooming sector as men's habits around personal care is shifting - led by a confluence of social, economic and compelling demographic factors. Expect this trend to gather more momentum as image-conscious young men adopt a wider array of personal care products. Skincare products that address specific needs/concerns of male customers will drive the early stage of segment growth; light cosmetics are picking up demand too. Companies that are quick to identify and address the demand with male-specific products/brands stand to gain from early mover advantage given male customers, reportedly, are far more brand loyal compared to female counterparts.
What is original in this report? We discuss the social, economic and compelling demographic factors driving the shift and growth in the Male grooming sector in China and India. We look at the emerging trends across segments and in both the markets to arrive at a pecking order in terms of investment potential. We have scanned the personal care and cosmetics products landscape to shortlist brands and companies that offer a male-specific product range. A brief on select companies - private and listed -  are presented for further investment analysis and evaluation.

Emerging Asia - notably China and India -  is witnessing a  steady expansion in the Male grooming sector as men's habits around personal care is shifting - led by a confluence of social, economic and compelling demographic factors. Expect this trend to gather more momentum as image-conscious young men adopt a wider array of personal care products. Skincare products that address specific needs/concerns of male customers will drive the early stage of segment growth; light cosmetics are picking up demand too. Companies that are quick to identify and address the demand with male-specific products/brands stand to gain from early mover advantage given male customers, reportedly, are far more brand loyal compared to female counterparts.
What is original in this report? We discuss the social, economic and compelling demographic factors driving the shift and growth in the Male grooming sector in China and India. We look at the emerging trends across segments and in both the markets to arrive at a pecking order in terms of investment potential. We have scanned the personal care and cosmetics products landscape to shortlist brands and companies that offer a male-specific product range. A brief on select companies - private and listed -  are presented for further investment analysis and evaluation. 

Male Grooming in Asia: Blooming Prospects. Skincare to Drive Growth

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

The vaccination has already started in Indonesia and although it may take 15 months to complete, it could be an early catalyst for investors to start booking profit on SIDO especially after it made 25% last year. The business will still grow as Tolak Angin remains the most affordable solution for an immune system compared to the other local and imported brands such as <a href="https://www.smartkarma.com/entities/health-and-happiness-h-h-int" target="_blank" data-smartkarma-citation="entities:20582:1" rel="noopener">Health And Happiness (H&amp;H) (1112 HK)</a> Swisse, which are especially important when the health care system is already overwhelmed. 
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Despite a 25% increase in 2020, Sido is still trading at 5%, 14%, and 26% EV/EBITDA, PER, and PBR discount respectively to the peers. 
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The vaccination has already started in Indonesia and although it may take 15 months to complete, it could be an early catalyst for investors to start booking profit on SIDO especially after it made 25% last year. The business will still grow as Tolak Angin remains the most affordable solution for an immune system compared to the other local and imported brands such as Health And Happiness (H&amp;H) (1112 HK) Swisse, which are especially important when the health care system is already overwhelmed. 

Despite a 25% increase in 2020, Sido is still trading at 5%, 14%, and 26% EV/EBITDA, PER, and PBR discount respectively to the peers. 


Sido Muncul (SIDO): Still the Most Affordable Solution in the Pandemic

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

Elixir Capital Ltd / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/emami-cement-ltd" target="_blank" data-smartkarma-citation="entities:28184:1" rel="noopener">Emami Cement (ECL IN)</a> (ECL) plans to raise around US$150m in its India IPO via mix of primary and secondary share issuance.
ECL only began to generate revenue from its cement operations in FY17, when its first cement plant became operational. Growth has since been aided by the commencement of operations at another plant and by the acquisition of a third plant. Nonetheless, the company remains loss-making as operations are still being ramped up.

Emami Cement (ECL IN) (ECL) plans to raise around US$150m in its India IPO via mix of primary and secondary share issuance.
ECL only began to generate revenue from its cement operations in FY17, when its first cement plant became operational. Growth has since been aided by the commencement of operations at another plant and by the acquisition of a third plant. Nonetheless, the company remains loss-making as operations are still being ramped up.

Emami Cement Pre-IPO - Still in Ramp Up Phase but Emami Shares Pledge Might Lead to an Early IPO

India - Politics, Industrials, IT and Large Caps, EMAlpha

Pankaj Sharma

India - Politics, Industrials, IT and Large Caps

As 2Q FY19 earnings season comes to a close, there is clear message that while many companies across sectors have not done badly on sales growth, the picture on margins looks much less promising. The interesting thing is that pressure on profitability is not limited to a few companies or just few categories. In addition, geographical exposure and client base doesn't seem to matter as well. We believe this is an important trend because while business strategy of these companies can't be questioned, demand may not be as robust as inferred from sales numbers alone. Despite recent correction, Indian markets are not in value zone yet and no or little PAT growth is bad news. The valuations continue to remain at elevated levels for several stocks and it will be key for market performance over short to medium term.

As 2Q FY19 earnings season comes to a close, there is clear message that while many companies across sectors have not done badly on sales growth, the picture on margins looks much less promising. The interesting thing is that pressure on profitability is not limited to a few companies or just few categories. In addition, geographical exposure and client base doesn't seem to matter as well. We believe this is an important trend because while business strategy of these companies can't be questioned, demand may not be as robust as inferred from sales numbers alone. Despite recent correction, Indian markets are not in value zone yet and no or little PAT growth is bad news. The valuations continue to remain at elevated levels for several stocks and it will be key for market performance over short to medium term.

India: Margins Under Pressure Across Sectors, Is Demand Really Strong and What It Means for Markets?

In our last insight on rainfall distribution in India, <a href="https://www.smartkarma.com/insights/monsoon-is-normal-this-year-perception-vs-reality-and-the-implications" target="_blank" data-smartkarma-citation="insights:12669">Monsoon Is “Normal” This Year: Perception Vs. Reality and the Implications</a> dated 8th August 2017, we had spoken about how a reported "Normal Monsoon" is hiding huge regional variations. We mentioned that though till 3rd August 2017 country-wide rainfall has been exactly 100% of Long Period Average or LPA, there have been drastic differences across different regions. For India as a whole, eight out of thirty six regions have had deficient…

In our last insight on rainfall distribution in India, Monsoon Is “Normal” This Year: Perception Vs. Reality and the Implications dated 8th August 2017, we had spoken about how a reported "Normal Monsoon" is hiding huge regional variations. We mentioned that though till 3rd August 2017 country-wide rainfall has been exactly 100% of Long Period Average or LPA, there have been drastic differences across different regions. For India as a whole, eight out of thirty six regions have had deficient…

India: Monsoon Is Below Normal Now, Poor Rainfall Is Negative for Consumer Goods and Rate Cut Hopes

India

Emami Limited develops and distributes personal, beauty, and healthcare products in India and other countries.  The Company manufactures herbal and Ayurvedic products, including antiseptic cream, prickly heat powder, pain balm, and cool oil.

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Emami Ltd (HMN IN)

Male Grooming in Asia: Blooming Prospects. Skincare to Drive Growth

Steady expansion in the Male grooming sector in China & India is led by a generational shift in grooming habits and not a passing fad. Only a few...

Devi Subhakesan

Sido Muncul (SIDO): Still the Most Affordable Solution in the Pandemic

The vaccination already started in Indonesia and although it takes 15 months to complete, it could be an early catalyst for investors to book...

Henry Soediarko

Emami Cement Pre-IPO - Still in Ramp Up Phase but Emami Shares Pledge Might Lead to an Early IPO

Emami Cement (ECL IN) (ECL) plans to raise around US$150m in its India IPO via mix of primary and secondary share issuance. ECL only began to...

Sumeet Singh

India: Margins Under Pressure Across Sectors, Is Demand Really Strong and What It Means for Markets?

As 2Q FY19 earnings season comes to a close, there is clear message that while many companies across sectors have not done badly on sales growth,...

Pankaj Sharma

India: Monsoon Is Below Normal Now, Poor Rainfall Is Negative for Consumer Goods and Rate Cut Hopes

In our last insight on rainfall distribution in India, Monsoon Is “Normal” This Year: Perception Vs. Reality and the Implications dated 8th August...

Pankaj Sharma

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