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

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<p><em><strong>Corrigenda: There is an error in this Insight. Please note the correction.</strong></em></p>
<p><em><strong>Correction: The Insight <a href="https://www.smartkarma.com/insights/bjbr-positive-fundamental-momentum-at-a-decent-valuation" target="_blank" data-smartkarma-citation="insights:44897" rel="noopener">BJBR: Positive Fundamental Momentum at a Decent Valuation</a> was improperly attributed to Thomas Monaco. It was published by <a href="https://www.smartkarma.com/profiles/paul-hollingworth" target="_blank" data-smartkarma-citation="accounts:2554" rel="noopener">Paul Hollingworth</a>.</strong></em></p>
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<p>The week that was in <a href="mailto:ASEAN@Smartkarma" target="_blank" rel="noopener">ASEAN@Smartkarma</a> is filled with another eclectic mix of differentiated, substantive, and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.</p>
<p>We add below a NEW section, which includes emerging themes in ASEAN and selects important news flow or developments for commentary, which may impact SE Asian companies and markets.  </p>
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<p><strong><a href="https://www.smartkarma.com/insights/smartkarma-corporate-webinar-indo-banks-the-worst-is-over" target="_blank" data-smartkarma-citation="insights:44882" rel="noopener">Smartkarma Corporate Webinar | Indo Banks: The Worst Is Over</a></strong>-<strong> 10th November at 4 pm.</strong></p>
<p>For our next Corporate Webinar, we welcome <a href="https://www.smartkarma.com/entities/bank-mandiri-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:441:1" rel="noopener">Bank Mandiri Persero (BMRI IJ)</a>'s Group Head of Investor Relations, <a href="https://www.smartkarma.com/profiles/yohan-setio" target="_blank" rel="noopener">Yohan Setio</a>, who will share some company updates and sit down for a fireside chat with Smartkarma Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener">Angus Mackintosh</a>.</p>
<h2>Indonesia's Recovery and the Next Digital Darling</h2>
<p>This week below the fold we look at Indonesia's recent economic numbers which saw the country slide into recession, its first since the Asian Crisis but find it encouraging that the economy is moving onto a recovery track. We see selective banks and <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> as core ways to play this recovery. </p>
<p><a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> is SoutEast Asia's largest Market Cap stock, and there are very few if any alternatives to get exposure to the region's e-commerce boom, certainly in the listed universe. One potential future candidate is <a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ),</a> which is the major shareholder of <a href="https://www.smartkarma.com/entities/surya-citra-media-pt-tbk" target="_blank" data-smartkarma-citation="entities:14739:1" rel="noopener">PT Surya Citra Media Tbk (SCMA IJ)</a> but it also has stakes in Bukalapak and Dana, the number three digital payments player in Indonesia and a JV with Ant Financial.</p>
<p><a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a> has announced that it will seek approval for a stock split in December but this may not be the end of the story. Any restructuring which brings all of its digital assets under one roof and improves liquidity would certainly help the company attract more institutional investors and secure a higher valuation. </p>
<h3>Macro Insights</h3>
<p>In <a href="https://www.smartkarma.com/insights/thai-strategy-2021-part-2-top-10-stock-picks" target="_blank" data-smartkarma-citation="insights:40851" rel="noopener">Thai Strategy 2021 (Part 2): Top 10 Stock Picks,</a> our Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> lays out his top stock picks in Thailand for next year.</p>
<p>In <a href="https://www.smartkarma.com/insights/thai-strategy-2021-part-3-sector-outlooks" target="_blank" data-smartkarma-citation="insights:40864" rel="noopener">Thai Strategy 2021 (Part 3): Sector Outlooks,</a> our Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> provides us with his sector strategy in Thailand for the coming year. </p>
<h3>Equity Bottom Up</h3>
<p>In an Indonesian Insight,<a href="https://www.smartkarma.com/insights/astra-international-asii-ij-an-auto-recovery-story-with-a-golden-digital-twist" target="_blank" rel="noopener"> Astra International (ASII IJ) - An Auto-Recovery Story with a Golden Digital Twist</a>, CrossASEAN Insight provider<a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener"> Angus Mackintosh</a> returns to look at<a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" rel="noopener"> Astra International (ASII IJ)</a> after a conversation with management. </p>
<p>In <a href="https://www.smartkarma.com/insights/pt-surya-citra-media-tbk-scma-ij-let-the-games-begin" target="_blank" data-smartkarma-citation="insights:44914" rel="noopener">PT Surya Citra Media Tbk (SCMA IJ) - Let the Games Begin,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> revisits one of Indonesia's leading media companies, which has an increasingly digital twist.</p>
<p>In <a href="https://www.smartkarma.com/insights/aem-holdings-optimistic-on-fy21-fair-value-remains-at-5-sgd-41-upside" target="_blank" data-smartkarma-citation="insights:44915" rel="noopener">AEM Holdings: Optimistic on FY21; Fair Value Remains at 5 SGD (41% Upside),</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/nicolas-van-broekhoven-24a66c2d-bca4-4f5b-adda-c4e2bcc509f4" target="_blank" data-smartkarma-citation="accounts:1208" rel="noopener">Nicolas Van Broekhoven</a> revisits <a href="https://www.smartkarma.com/entities/aem-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11019:1" rel="noopener">AEM Holdings (AEM SP)</a> after an impressive set of results and remains positive.</p>
<p>In <a href="https://www.smartkarma.com/insights/bjbr-positive-fundamental-momentum-at-a-decent-valuation" target="_blank" data-smartkarma-citation="insights:44897" rel="noopener">BJBR: Positive Fundamental Momentum at a Decent Valuation,</a><a href="https://www.smartkarma.com/profiles/thomas-j-monaco" target="_blank" data-smartkarma-citation="accounts:1716" rel="noopener">Thomas J. Monaco</a> writes on this smaller Indonesian lender with a positive slant.</p>
<p>In <a href="https://www.smartkarma.com/insights/oversea-chinese-banking-corp-still-not-a-great-eastern" target="_blank" data-smartkarma-citation="insights:44901" rel="noopener">Oversea Chinese Banking Corp – Still Not A Great Eastern,</a><a href="https://www.smartkarma.com/profiles/thomas-j-monaco" target="_blank" data-smartkarma-citation="accounts:1716" rel="noopener">Thomas J. Monaco</a> looked in detail at <a href="https://www.smartkarma.com/entities/great-eastern-holdings-ltd" target="_blank" data-smartkarma-citation="entities:13993:1" rel="noopener">Great Eastern Holdings (GE SP)</a> numbers ahead of <a href="https://www.smartkarma.com/entities/oversea-chinese-banking-corp" target="_blank" data-smartkarma-citation="entities:114:1" rel="noopener">Oversea Chinese Banking Corp. (OCBC SP)</a> results. </p>
<p>In <a href="https://www.smartkarma.com/insights/oversea-chinese-banking-corp-solid" target="_blank" data-smartkarma-citation="insights:45061" rel="noopener">Oversea Chinese Banking Corp. – Solid,</a><a href="https://www.smartkarma.com/profiles/thomas-j-monaco" target="_blank" data-smartkarma-citation="accounts:1716" rel="noopener">Thomas J. Monaco</a> revisits this Singapore lender with a positive view post its recent 3Q2020 numbers. </p>
<p><a href="https://www.smartkarma.com/entities/surya-citra-media-pt-tbk" target="_blank" data-smartkarma-citation="entities:14739:1" rel="noopener"></a>In<a href="https://www.smartkarma.com/insights/dbs-group-holdings-not-trending-the-right-way-yet" target="_blank" rel="noopener"> DBS Group Holdings – Not Trending The Right Way Yet</a>,<a href="https://www.smartkarma.com/profiles/thomas-j-monaco" target="_blank" rel="noopener"> Thomas J. Monaco</a> reports back<a href="https://www.smartkarma.com/entities/dbs-group-holdings-ltd" target="_blank" rel="noopener"> DBS Group Holdings (DBS SP)</a>'s post its recent 3Q2020 results with a chequered view.</p>
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<p>In this Thai Insight,<a href="https://www.smartkarma.com/insights/hmpro-expect-government-stimulus-scheme-drive-4q20-recover-qoq" target="_blank" rel="noopener"> HMPRO: Expect Government Stimulus Scheme Drive 4Q20 Recover QoQ,</a> our friends at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> circle back to Thailand's leading home improvements player <a href="https://www.smartkarma.com/entities/home-product-center-pcl" target="_blank" data-smartkarma-citation="entities:9906:1" rel="noopener">Home Product Center (HMPRO TB)</a>. </p>
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<p>In<a href="https://www.smartkarma.com/insights/synex-solid-earnings-growth-outlook-but-largely-priced-in" target="_blank" rel="noopener"> SYNEX: Solid Earnings Growth Outlook but Largely Priced In</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> provides a view on<a href="https://www.smartkarma.com/entities/synnex-thailand-pcl" target="_blank" rel="noopener"> Synnex Thailand (SYNEX TB),</a> following the recent run-up in the share price. </p>
<p>In this Thai Insight, <a href="https://www.smartkarma.com/insights/scc-strong-3q20-thanks-to-petrochemical-spread" target="_blank" rel="noopener">SCC: Strong 3Q20 Thanks to Petrochemical Spread</a>, our friends at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> return to look at<a href="https://www.smartkarma.com/entities/siam-cement-pcl-the" target="_blank" rel="noopener"> Siam Cement (SCC TB)</a> post 3Q2020 results. </p>
<p>In <a href="https://www.smartkarma.com/insights/mc-prominent-denim-brand-with-new-growth-momentum" target="_blank" data-smartkarma-citation="insights:45077" rel="noopener">MC: Prominent Denim Brand with New Growth Momentum,</a> our friends at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a>initiate on this leading Thai denim apparel player. They initiate coverage of <a href="https://www.smartkarma.com/entities/mc-group-pcl" target="_blank" data-smartkarma-citation="entities:17093:1" rel="noopener">MC Group Pcl (MC TB)</a> with a BUY rating and a target price of Bt12.0, derived from 18.5x FY21E PER, which is +1SD above its 5-year trading average but slightly lower than its global apparel peers.</p>
<h3>Credit Insights</h3>
<p>In <a href="https://www.smartkarma.com/insights/lippo-karawaci-earnings-flash-q3-fy-2020-results-lucror-analytics" target="_blank" rel="noopener">Lippo Karawaci - Earnings Flash - Q3 FY 2020 Results</a>, credit specialist<a href="https://www.smartkarma.com/profiles/trung-nguyen" target="_blank" rel="noopener"> Trung Nguyen</a> looks at<a href="https://www.smartkarma.com/entities/lippo-karawaci-tbk-pt" target="_blank" rel="noopener"> Lippo Karawaci (LPKR IJ)'s</a> after its recent results, which continued to be robust in Q32020. </p>
<p>In <a href="https://www.smartkarma.com/insights/chandra-asri-earnings-flash-9m-fy-2020-results-lucror-analytics" target="_blank" data-smartkarma-citation="insights:44814" rel="noopener">Chandra Asri - Earnings Flash - 9M FY 2020 Results</a> credit specialist <a href="https://www.smartkarma.com/profiles/leonard-law-cfa" target="_blank" data-smartkarma-citation="accounts:7106" rel="noopener">Leonard Law, CFA</a> circles back to this leading chemicals player post 3Q2020 results.</p>


Corrigenda: There is an error in this Insight. Please note the correction.
Correction: The Insight BJBR: Positive Fundamental Momentum at a Decent Valuation was improperly attributed to Thomas Monaco. It was published by Paul Hollingworth.



The week that was in ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive, and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.
We add below a NEW section, which includes emerging themes in ASEAN and selects important news flow or developments for commentary, which may impact SE Asian companies and markets.  

Smartkarma Corporate Webinar | Indo Banks: The Worst Is Over- 10th November at 4 pm.
For our next Corporate Webinar, we welcome Bank Mandiri Persero (BMRI IJ)'s Group Head of Investor Relations, Yohan Setio, who will share some company updates and sit down for a fireside chat with Smartkarma Insight Provider Angus Mackintosh.
Indonesia's Recovery and the Next Digital Darling
This week below the fold we look at Indonesia's recent economic numbers which saw the country slide into recession, its first since the Asian Crisis but find it encouraging that the economy is moving onto a recovery track. We see selective banks and Astra International (ASII IJ) as core ways to play this recovery. 
Sea Ltd (SE US) is SoutEast Asia's largest Market Cap stock, and there are very few if any alternatives to get exposure to the region's e-commerce boom, certainly in the listed universe. One potential future candidate is Emtek (EMTK IJ), which is the major shareholder of PT Surya Citra Media Tbk (SCMA IJ) but it also has stakes in Bukalapak and Dana, the number three digital payments player in Indonesia and a JV with Ant Financial.
Emtek (EMTK IJ) has announced that it will seek approval for a stock split in December but this may not be the end of the story. Any restructuring which brings all of its digital assets under one roof and improves liquidity would certainly help the company attract more institutional investors and secure a higher valuation. 
Macro Insights
In Thai Strategy 2021 (Part 2): Top 10 Stock Picks, our Thai guru Athaporn Arayasantiparb, CFA lays out his top stock picks in Thailand for next year.
In Thai Strategy 2021 (Part 3): Sector Outlooks, our Thai guru Athaporn Arayasantiparb, CFA provides us with his sector strategy in Thailand for the coming year. 
Equity Bottom Up
In an Indonesian Insight, Astra International (ASII IJ) - An Auto-Recovery Story with a Golden Digital Twist, CrossASEAN Insight provider Angus Mackintosh returns to look at Astra International (ASII IJ) after a conversation with management. 
In PT Surya Citra Media Tbk (SCMA IJ) - Let the Games Begin, CrossASEAN Insight Provider Angus Mackintosh revisits one of Indonesia's leading media companies, which has an increasingly digital twist.
In AEM Holdings: Optimistic on FY21; Fair Value Remains at 5 SGD (41% Upside), CrossASEAN Insight Provider Nicolas Van Broekhoven revisits AEM Holdings (AEM SP) after an impressive set of results and remains positive.
In BJBR: Positive Fundamental Momentum at a Decent Valuation,Thomas J. Monaco writes on this smaller Indonesian lender with a positive slant.
In Oversea Chinese Banking Corp – Still Not A Great Eastern,Thomas J. Monaco looked in detail at Great Eastern Holdings (GE SP) numbers ahead of Oversea Chinese Banking Corp. (OCBC SP) results. 
In Oversea Chinese Banking Corp. – Solid,Thomas J. Monaco revisits this Singapore lender with a positive view post its recent 3Q2020 numbers. 
In DBS Group Holdings – Not Trending The Right Way Yet, Thomas J. Monaco reports back DBS Group Holdings (DBS SP)'s post its recent 3Q2020 results with a chequered view.



In this Thai Insight, HMPRO: Expect Government Stimulus Scheme Drive 4Q20 Recover QoQ, our friends at Country Group circle back to Thailand's leading home improvements player Home Product Center (HMPRO TB). 



In SYNEX: Solid Earnings Growth Outlook but Largely Priced In, Country Group provides a view on Synnex Thailand (SYNEX TB), following the recent run-up in the share price. 
In this Thai Insight, SCC: Strong 3Q20 Thanks to Petrochemical Spread, our friends at Country Group return to look at Siam Cement (SCC TB) post 3Q2020 results. 
In MC: Prominent Denim Brand with New Growth Momentum, our friends at Country Groupinitiate on this leading Thai denim apparel player. They initiate coverage of MC Group Pcl (MC TB) with a BUY rating and a target price of Bt12.0, derived from 18.5x FY21E PER, which is +1SD above its 5-year trading average but slightly lower than its global apparel peers.
Credit Insights
In Lippo Karawaci - Earnings Flash - Q3 FY 2020 Results, credit specialist Trung Nguyen looks at Lippo Karawaci (LPKR IJ)'s after its recent results, which continued to be robust in Q32020. 
In Chandra Asri - Earnings Flash - 9M FY 2020 Results credit specialist Leonard Law, CFA circles back to this leading chemicals player post 3Q2020 results.

The Week that Was in ASEAN@Smartkarma - Indonesia's Recovery and the Next Digital Darling

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

Equity Bottom-Up

<div>Adding Indonesia to the current 8 countries that Singapore has a reciprocal Green Lane travel arrangement with, we should expect an increase in mobility in Singapore as Indonesia contributes to the second largest number of tourists in Singapore besides China. There is also a pilot project of the travel bubble with Hong Kong that requires no 14-day quarantine. </div>
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<div>The shift WFO from WFH is not losing any momentum but slowly increasing. Majority Singaporeans uses public transport to go to work compared to private vehicles (public transport is the largest revenue contributor to Comfort Delgro). Phase III of COVID-19 reopening creates higher mobility from the higher number of participants allowed in various events including weddings and religious services. </div>
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<div>Let's not be fooled by the increase in the company's increase in PER, the increase was caused by the low earnings rather than an increase in share price thus for investors who have not have <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> in the portfolio, they still have a chance to do it. </div>

Adding Indonesia to the current 8 countries that Singapore has a reciprocal Green Lane travel arrangement with, we should expect an increase in mobility in Singapore as Indonesia contributes to the second largest number of tourists in Singapore besides China. There is also a pilot project of the travel bubble with Hong Kong that requires no 14-day quarantine. 

The shift WFO from WFH is not losing any momentum but slowly increasing. Majority Singaporeans uses public transport to go to work compared to private vehicles (public transport is the largest revenue contributor to Comfort Delgro). Phase III of COVID-19 reopening creates higher mobility from the higher number of participants allowed in various events including weddings and religious services. 

Let's not be fooled by the increase in the company's increase in PER, the increase was caused by the low earnings rather than an increase in share price thus for investors who have not have Comfortdelgro Corp (CD SP) in the portfolio, they still have a chance to do it. 

ComfortDelgro (CD): Higher Mobility Expected

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Private Capital Markets

<div class="content-highlight"><h2>What You Need to Know</h2></div><ul>
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<strong>Private equity returns have outperformed public equity in the last decade.</strong> From March 2010 to 2020, private equity has generated an average annual return of 13.2% per year as compared to public equity at 6.6%. To put this into perspective, the implied compounded returns of PE over the last 10-year period was 246% versus 89% for public equity. This is partially attributed to the increasing number of unicorn companies - privately held startups reaching a valuation of over US$1 billion - most of which experience their highest growth and return periods in the private market rather than in the IPO stage.</li>
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<strong>COVID-19 has upheaved the business and operating landscape for unicorns.</strong> Lockdown measures, heightened hygiene awareness, and increased travel restrictions are the realities faced by unicorn companies in the new normal, on top of a global recession hampering consumption.</li>
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<strong>Unicorns supercharged by the pandemic: e-Commerce, FinTech, and Remote Work/Study.</strong> Digital platforms have experienced massive adoption as consumers and businesses alike are realizing that they don’t need a physical space in order to interact and transact.</li>
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<strong>Unicorns forced to pivot by the pandemic: Travel &amp; Hospitality, Ride-hailing.</strong> Fear of infection and travel restrictions have hampered the bread-and-butter businesses of many unicorns, forcing them to offer new products &amp; services in the interim. Super-app unicorns (or apps that house a range of sub-apps serving many different functions) have proven more resilient, as they are easily able to switch to other businesses like on-demand delivery and fintech.</li>
</ul><p></p><p><em>Note: This research is commissioned by iSTOX in collaboration with Zero One. iSTOX, a next-generation private capital markets platform, provides accredited investors with access to previously out-of-reach investment opportunities, including exposure to unicorn companies. Click <a href="https://istox.com/" target="_blank" rel="noopener">here</a> to learn more.</em></p>

What You Need to Know

Private equity returns have outperformed public equity in the last decade. From March 2010 to 2020, private equity has generated an average annual return of 13.2% per year as compared to public equity at 6.6%. To put this into perspective, the implied compounded returns of PE over the last 10-year period was 246% versus 89% for public equity. This is partially attributed to the increasing number of unicorn companies - privately held startups reaching a valuation of over US$1 billion - most of which experience their highest growth and return periods in the private market rather than in the IPO stage.

COVID-19 has upheaved the business and operating landscape for unicorns. Lockdown measures, heightened hygiene awareness, and increased travel restrictions are the realities faced by unicorn companies in the new normal, on top of a global recession hampering consumption.

Unicorns supercharged by the pandemic: e-Commerce, FinTech, and Remote Work/Study. Digital platforms have experienced massive adoption as consumers and businesses alike are realizing that they don’t need a physical space in order to interact and transact.

Unicorns forced to pivot by the pandemic: Travel &amp; Hospitality, Ride-hailing. Fear of infection and travel restrictions have hampered the bread-and-butter businesses of many unicorns, forcing them to offer new products &amp; services in the interim. Super-app unicorns (or apps that house a range of sub-apps serving many different functions) have proven more resilient, as they are easily able to switch to other businesses like on-demand delivery and fintech.
Note: This research is commissioned by iSTOX in collaboration with Zero One. iSTOX, a next-generation private capital markets platform, provides accredited investors with access to previously out-of-reach investment opportunities, including exposure to unicorn companies. Click here to learn more.

The Future of Private Market Unicorns in a Post-Pandemic World

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

<p><a href="https://www.smartkarma.com/entities/dida-inc" target="_blank" data-smartkarma-citation="entities:29701:1" rel="noopener">Dida (DIDA HK)</a> (Dida), a technology driven mobility platform in China, aims to raise around US$400m in its Hong Kong IPO. The company is backed by JD.com, Hillhouse, Ctrip, Bitauto and a host of other investors.</p><p>Dida claims to operate the largest carpooling marketplace in China with a market share of 66.5% in terms of the number of carpooling rides in 2019, as per Frost &amp; Sullivan (F&amp;S) report. Over 2017-19, Dida’s total revenue increased by 11.87x. Revenue was up another 66% over 6M20. Revenue coming from carpooling has grown 19x over 2017 to 2019 and was up another 66% over 6M20. </p>

Dida (DIDA HK) (Dida), a technology driven mobility platform in China, aims to raise around US$400m in its Hong Kong IPO. The company is backed by JD.com, Hillhouse, Ctrip, Bitauto and a host of other investors.Dida claims to operate the largest carpooling marketplace in China with a market share of 66.5% in terms of the number of carpooling rides in 2019, as per Frost &amp; Sullivan (F&amp;S) report. Over 2017-19, Dida’s total revenue increased by 11.87x. Revenue was up another 66% over 6M20. Revenue coming from carpooling has grown 19x over 2017 to 2019 and was up another 66% over 6M20. 

Dida Pre-IPO - Making Hay While Big Brother Retreats

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<p>The week that was in ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.</p>
<p>Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in <a href="mailto:ASEAN@Smartkarma" target="_blank" rel="noopener">ASEAN@Smartkarma</a>.</p>
</div><h3>Macro Insights</h3><p>In <a href="https://www.smartkarma.com/insights/anwar-makes-his-move-at-last-election-in-sabah-this-week-should-bolster-him-too" target="_blank" data-smartkarma-citation="insights:43522" rel="noopener">Anwar Makes His Move at Last; Election in Sabah This Week Should Bolster Him Too,</a> CrossASEAN Chief Economist <a href="https://www.smartkarma.com/profiles/prasenjit-k-basu" target="_blank" data-smartkarma-citation="accounts:612" rel="noopener">Prasenjit K. Basu</a> comments on Anwar's move to form a new Government in Malaysia.</p><h3>Equity Bottom-Up Insights</h3><p>In <a href="https://www.smartkarma.com/insights/gojek-and-grab-a-merger-of-the-super-apps-on-the-offing-we-think-not" target="_blank" data-smartkarma-citation="insights:39926" rel="noopener">Gojek and Grab - A Merger of the Super Apps on the Offing? We Think Not,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> takes a look at South East Asia's two leading ride-hailing companies in light of recent talk of a merger of the two Unicorns. </p><p>In <a href="https://www.smartkarma.com/insights/mitra-keluarga-mika-margin-expansion-from-covid-19" target="_blank" data-smartkarma-citation="insights:43470" rel="noopener">Mitra Keluarga (MIKA): Margin Expansion from COVID-19</a> comments on one of Indonesia's best quality hospitals in light of COVID-19. </p><p>In <a href="https://www.smartkarma.com/insights/snippets-44-more-turbulence-at-thai-four-new-airports" target="_blank" data-smartkarma-citation="insights:42364" rel="noopener">Snippets #44: More Turbulence at THAI, Four New Airports!,</a> out Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> comments on five pieces of interesting news or developments that could impact Thai equities.  </p><p>in <a href="https://www.smartkarma.com/insights/bangkok-s-finest-bangkok-glass-and-bam" target="_blank" data-smartkarma-citation="insights:41197" rel="noopener">Bangkok's Finest: Bangkok Glass and BAM,</a><a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> follows up with two companies which came to IPO around two years ago, namely <a href="https://www.smartkarma.com/entities/bangkok-glass-pcl" target="_blank" data-smartkarma-citation="entities:27024:1" rel="noopener">Bangkok Glass PCL (BG TB)</a> and <a href="https://www.smartkarma.com/entities/bangkok-commercial-asset-management-public-company-limited" target="_blank" data-smartkarma-citation="entities:28442:1" rel="noopener">Bangkok Commercial Asset Management (BAM TB).</a></p><p>In <a href="https://www.smartkarma.com/insights/dbs-reckoning-at-quarter-end" target="_blank" data-smartkarma-citation="insights:43528" rel="noopener">DBS – Reckoning At Quarter End,</a> banking specialist <a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" data-smartkarma-citation="accounts:12" rel="noopener">Daniel Tabbush</a> revisits <a href="https://www.smartkarma.com/entities/dbs-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22:1" rel="noopener">DBS Group Holdings (DBS SP)</a> ahead of its quarterly results, where he sees the potential for a positive surprise.</p><p>In <a href="https://www.smartkarma.com/insights/scg-packaging-ipo-unexciting" target="_blank" data-smartkarma-citation="insights:43557" rel="noopener">SCG Packaging IPO - Unexciting</a>, <a href="https://www.smartkarma.com/profiles/sumeet-singh" target="_blank" data-smartkarma-citation="accounts:4" rel="noopener">Sumeet Singh</a> revisits this up-and-coming IPO born out of <a href="https://www.smartkarma.com/entities/siam-cement-pcl-the" target="_blank" data-smartkarma-citation="entities:2589:1" rel="noopener">Siam Cement (SCC TB)</a>. </p><p>In <a href="https://www.smartkarma.com/insights/scg-packaging-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:43464" rel="noopener">SCG Packaging IPO: Valuation Insights,</a><a href="https://www.smartkarma.com/profiles/arun-george" target="_blank" data-smartkarma-citation="accounts:1680" rel="noopener">Arun George</a> casts his eye over this significant Thai IPO looking at valuations.</p><p>In <a href="https://www.smartkarma.com/insights/home-improvement-sector-outlook-2h20" target="_blank" data-smartkarma-citation="insights:43567" rel="noopener">Home Improvement Sector Outlook 2H20,</a> our friends at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> provide an update on the home-improvement segment in Thailand and maintain a positive outlook on both <a href="https://www.smartkarma.com/entities/home-product-center-pcl" target="_blank" data-smartkarma-citation="entities:9906:1" rel="noopener">Home Product Center (HMPRO TB)</a>,  <a href="https://www.smartkarma.com/entities/siam-global-house-pcl" target="_blank" data-smartkarma-citation="entities:19449:1" rel="noopener">Siam Global House (GLOBAL TB),</a> and <a href="https://www.smartkarma.com/entities/dohome-pcl" target="_blank" data-smartkarma-citation="entities:27331:1" rel="noopener">Dohome PCL (DOHOME TB)</a>. </p><p>In <a href="https://www.smartkarma.com/insights/gunkul-profit-from-japan-asset-disposal" target="_blank" data-smartkarma-citation="insights:43534" rel="noopener">GUNKUL: Profit from Japan Asset Disposal</a>, <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> revisit <a href="https://www.smartkarma.com/entities/gunkul-engineering-pcl" target="_blank" data-smartkarma-citation="entities:15272:1" rel="noopener">Gunkul Engineering (GUNKUL TB)</a> following the disposal of a 67MW solar project in Japan (SCOD in 2022), where it booked special profit of Bt715m. </p><p>In <a href="https://www.smartkarma.com/insights/jkn-await-for-new-rerating-catalyst" target="_blank" data-smartkarma-citation="insights:43529" rel="noopener">JKN: Await for New Rerating Catalyst</a>, <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> revisit <a href="https://www.smartkarma.com/entities/jkn-global-media-pcl" target="_blank" data-smartkarma-citation="entities:24236:1" rel="noopener">JKN Global Media (JKN TB)</a> following the recent surge in the share price and downgrade the company recommendation to HOLD. </p><h3>Sector and Thematic Insights</h3><p>In <a href="https://www.smartkarma.com/insights/thai-banks-leveraged-to-tourism" target="_blank" data-smartkarma-citation="insights:43487" rel="noopener">Thai Banks – Leveraged To Tourism?</a>, banking specialist <a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" data-smartkarma-citation="accounts:12" rel="noopener">Daniel Tabbush</a> revisits the Thai banks as the country prepares to open its borders to foreign arrivals, albeit in a small way to start with.  </p><p>In <a href="https://www.smartkarma.com/insights/top-100-asian-unicorns" target="_blank" data-smartkarma-citation="insights:43552" rel="noopener">Top 100 Asian Unicorns</a>, <a href="https://www.smartkarma.com/profiles/douglas-kim" target="_blank" data-smartkarma-citation="accounts:342" rel="noopener">Douglas Kim</a> provides a list with summaries of the top 100 unicorns in Asia (including a number in South East Asia), broken down by the major countries in Asia. </p><h3>Credit Insights</h3><p>In <a href="https://www.smartkarma.com/insights/pakuwon-jati-tear-sheet-lucror-analytics-3ea61a3d-39e3-4628-b256-4d7b1da56f77" target="_blank" data-smartkarma-citation="insights:43496" rel="noopener">Pakuwon Jati - Tear Sheet</a>, <a href="https://www.smartkarma.com/profiles/trung-nguyen" target="_blank" data-smartkarma-citation="accounts:7108" rel="noopener">Trung Nguyen</a> from <a href="https://www.smartkarma.com/companies/lucror-analytics" target="_blank" data-smartkarma-citation="companies:1350" rel="noopener">Lucror Analytics</a> provides us with a bird's eye view of this leading Indonesian Property company from a credit perspective. </p>


The week that was in ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.
Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in ASEAN@Smartkarma.
Macro InsightsIn Anwar Makes His Move at Last; Election in Sabah This Week Should Bolster Him Too, CrossASEAN Chief Economist Prasenjit K. Basu comments on Anwar's move to form a new Government in Malaysia.Equity Bottom-Up InsightsIn Gojek and Grab - A Merger of the Super Apps on the Offing? We Think Not, CrossASEAN Insight Provider Angus Mackintosh takes a look at South East Asia's two leading ride-hailing companies in light of recent talk of a merger of the two Unicorns. In Mitra Keluarga (MIKA): Margin Expansion from COVID-19 comments on one of Indonesia's best quality hospitals in light of COVID-19. In Snippets #44: More Turbulence at THAI, Four New Airports!, out Thai guru Athaporn Arayasantiparb, CFA comments on five pieces of interesting news or developments that could impact Thai equities.  in Bangkok's Finest: Bangkok Glass and BAM,Athaporn Arayasantiparb, CFA follows up with two companies which came to IPO around two years ago, namely Bangkok Glass PCL (BG TB) and Bangkok Commercial Asset Management (BAM TB).In DBS – Reckoning At Quarter End, banking specialist Daniel Tabbush revisits DBS Group Holdings (DBS SP) ahead of its quarterly results, where he sees the potential for a positive surprise.In SCG Packaging IPO - Unexciting, Sumeet Singh revisits this up-and-coming IPO born out of Siam Cement (SCC TB). In SCG Packaging IPO: Valuation Insights,Arun George casts his eye over this significant Thai IPO looking at valuations.In Home Improvement Sector Outlook 2H20, our friends at Country Group provide an update on the home-improvement segment in Thailand and maintain a positive outlook on both Home Product Center (HMPRO TB),  Siam Global House (GLOBAL TB), and Dohome PCL (DOHOME TB). In GUNKUL: Profit from Japan Asset Disposal, Country Group revisit Gunkul Engineering (GUNKUL TB) following the disposal of a 67MW solar project in Japan (SCOD in 2022), where it booked special profit of Bt715m. In JKN: Await for New Rerating Catalyst, Country Group revisit JKN Global Media (JKN TB) following the recent surge in the share price and downgrade the company recommendation to HOLD. Sector and Thematic InsightsIn Thai Banks – Leveraged To Tourism?, banking specialist Daniel Tabbush revisits the Thai banks as the country prepares to open its borders to foreign arrivals, albeit in a small way to start with.  In Top 100 Asian Unicorns, Douglas Kim provides a list with summaries of the top 100 unicorns in Asia (including a number in South East Asia), broken down by the major countries in Asia. Credit InsightsIn Pakuwon Jati - Tear Sheet, Trung Nguyen from Lucror Analytics provides us with a bird's eye view of this leading Indonesian Property company from a credit perspective. 

The Week that Was in ASEAN@Smartkarma - Unicorns & Super Apps, SCG Packaging, and Thai Banks

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Grab Holdings Limited operates as a holding company. The Company, through its subsidiaries, develops delivery management, mobility, financial services, and enterprise software solutions. Grab Holdings serves customers worldwide.

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