Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

This week in StubWorld ...
<ul>
<li>Apart from a brief period of investor enthusiasm and a narrowing of the NAV discount in 2013 after <a href="https://www.smartkarma.com/entities/first-pacific-co-ltd" target="_blank" data-smartkarma-citation="entities:173:1" rel="noopener">First Pacific Co (142 HK)</a> actively invested in operations at the parent level, the last five years have exhibited a downward (widening) drift in the NAV discount, with little to no respite when exiting stub assets. </li>
</ul>
Preceding my comments on First Pac are the weekly setup/unwind tables for Asia-Pacific Holdcos.
<div class="content-remarks">
These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.
</div>

This week in StubWorld ...

Apart from a brief period of investor enthusiasm and a narrowing of the NAV discount in 2013 after First Pacific Co (142 HK) actively invested in operations at the parent level, the last five years have exhibited a downward (widening) drift in the NAV discount, with little to no respite when exiting stub assets. 

Preceding my comments on First Pac are the weekly setup/unwind tables for Asia-Pacific Holdcos.

These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


StubWorld: First Pacific's Discount Back To Passive Levels

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including trends in contracted sales and operations, as well as regulatory developments. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

   In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including trends in contracted sales and operations, as well as regulatory developments.    The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Chinese Property Update - Lucror Analytics

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar. 

Lucror Analytics - Morning Views Asia - 28 Aug 2019

Trung Nguyen

In our view, First Pacific’s H1/19 results were acceptable. The subsidiary companies are performing relatively well in light of the challenging operating environment in Indonesia and the Philippines: Indofood is growing nicely, PLDT is maintaining its number one position, and MPIC is stable as expected, given its utility nature. We are encouraged by the company's plan to focus on core assets while disposing of non-core assets and using the proceeds to pay down debt. This should reduce holdco debt while keeping the market-based value of listed assets unchanged (First Pacific intends to sell private assets), and should result in improved market-based leverage. While gross and net debt were flat at the holdco level, leverage based on the market value of listed assets improved slightly, as Indofood's share price has increased materially this year. Liquidity at the holdco is sound, with no maturities until September 2020. The maturity in 2020 is covered by proceeds from the sale of Goodman Fielder.

   In our view, First Pacific’s H1/19 results were acceptable. The subsidiary companies are performing relatively well in light of the challenging operating environment in Indonesia and the Philippines: Indofood is growing nicely, PLDT is maintaining its number one position, and MPIC is stable as expected, given its utility nature. We are encouraged by the company's plan to focus on core assets while disposing of non-core assets and using the proceeds to pay down debt. This should reduce holdco debt while keeping the market-based value of listed assets unchanged (First Pacific intends to sell private assets), and should result in improved market-based leverage.    While gross and net debt were flat at the holdco level, leverage based on the market value of listed assets improved slightly, as Indofood's share price has increased materially this year. Liquidity at the holdco is sound, with no maturities until September 2020. The maturity in 2020 is covered by proceeds from the sale of Goodman Fielder. 

First Pacific - Earnings Flash - H1 FY 2019 Results - Lucror Analytics

The Asia HY Trade Recommendations report for August includes a summary of our recommendations, as well as our high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index.

   The Asia HY Trade Recommendations report for August includes a summary of our recommendations, as well as our high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Recommendations - August 2019 - Lucror Analytics

Hong Kong

First Pacific Company Limited is an investment holding company with operations located in Asia-Pacific. The Company principally invests in consumer food products, infrastructure, natural resources, and telecommunications.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

First Pacific Co (142 HK)

StubWorld: First Pacific's Discount Back To Passive Levels

This week in StubWorld ... Apart from a brief period of investor enthusiasm and a narrowing of the NAV discount in 2013 after First Pacific Co...

David Blennerhassett

Asia HY Monthly - Chinese Property Update - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including trends in contracted sales and operations, as...

Lucror Analytics

Lucror Analytics - Morning Views Asia - 28 Aug 2019

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

First Pacific - Earnings Flash - H1 FY 2019 Results - Lucror Analytics

In our view, First Pacific’s H1/19 results were acceptable. The subsidiary companies are performing relatively well in light of the challenging...

Lucror Analytics

Asia HY Trade Recommendations - August 2019 - Lucror Analytics

The Asia HY Trade Recommendations report for August includes a summary of our recommendations, as well as our high-conviction ideas. We also...

Lucror Analytics

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)