Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

<ul>
<li>Palm oil prices are up 177% since May 2020 and 66% since June of last year. Palm oil touched a record high of RM5,700/mt the 31 January.</li>
<li>Yet while palm oil has enjoyed a meteoric price rise, the performance of listed palm oil plays has bifurcated.  </li>
<li>Valuations appear largely constrained by environmental, social, and governance concerns, resulting in plantation stocks trading below their historical averages.</li>
</ul>


Palm oil prices are up 177% since May 2020 and 66% since June of last year. Palm oil touched a record high of RM5,700/mt the 31 January.
Yet while palm oil has enjoyed a meteoric price rise, the performance of listed palm oil plays has bifurcated.  
Valuations appear largely constrained by environmental, social, and governance concerns, resulting in plantation stocks trading below their historical averages.


CPO Plays Lag Palm Oil Prices As ESG Issues Weigh

Quantitative Equity Analyst, DMA

Charlotte van Tiddens, CFA

Quantitative Equity Analyst

Technology-First Company

DMA is a technology-first company that provides an end-to-end SaaS solution to institutional investors. DMA enables regulated entities like asset managers, wealth managers, investment managers and financial advisors to connect their front and back office, break silos and reduce headcount.

Event-Driven

<ul>
<li>In this short insight, we include our flow estimates for all additions and deletions taking place in the range of WisdomTree EM Funds at the rebalance this Wednesday (16 October).</li>
<li>We show the top 40 buys and sells across DEM, XSOE and DGS.</li>
<li>The top buys include <a href="https://www.smartkarma.com/entities/chc-resources-corp" target="_blank" data-smartkarma-citation="entities:13423:1" rel="noopener">Chc Resources (9930 TT)</a> &amp; <a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a>. The top sells include <a href="https://www.smartkarma.com/entities/impack-pratama-industri-tbk" target="_blank" data-smartkarma-citation="entities:3927:1" rel="noopener">Impack Pratama Industri Tbk (IMPC IJ)</a> and <a href="https://www.smartkarma.com/entities/hap-seng-consolidated-bhd" target="_blank" data-smartkarma-citation="entities:13036:1" rel="noopener">Hap Seng Consolidated (HAP MK).</a>
</li>
</ul>


In this short insight, we include our flow estimates for all additions and deletions taking place in the range of WisdomTree EM Funds at the rebalance this Wednesday (16 October).
We show the top 40 buys and sells across DEM, XSOE and DGS.
The top buys include Chc Resources (9930 TT) &amp; Uchi Technologies (UCHI MK). The top sells include Impack Pratama Industri Tbk (IMPC IJ) and Hap Seng Consolidated (HAP MK).



WisdomTree Oct 24 Emerging Market Rebalance: Top Net Buys and Sells Across DGS, SOE & DEM

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<ul>
<li>
<a href="https://www.smartkarma.com/entities/westports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:3954:1" rel="noopener">Westports Holdings (WPRTS MK)</a> will replace <a href="https://www.smartkarma.com/entities/hap-seng-consolidated-bhd" target="_blank" data-smartkarma-citation="entities:13036:1" rel="noopener">Hap Seng Consolidated (HAP MK)</a> in the <a href="https://www.smartkarma.com/entities/kuala-lumpur-composite-index" target="_blank" data-smartkarma-citation="entities:22913:1" rel="noopener">Kuala Lumpur Composite Index (KLCI) (FBMKLCI INDEX)</a> after the close of trading on 17 December.</li>
<li>
<a href="https://www.smartkarma.com/entities/hap-seng-consolidated-bhd" target="_blank" data-smartkarma-citation="entities:13036:1" rel="noopener">Hap Seng Consolidated (HAP MK)</a> is a delete on liquidity and there will be over 5 days of ADV to sell. The impact on <a href="https://www.smartkarma.com/entities/westports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:3954:1" rel="noopener">Westports Holdings (WPRTS MK)</a> is smaller.</li>
<li>
<a href="https://www.smartkarma.com/entities/hap-seng-consolidated-bhd" target="_blank" data-smartkarma-citation="entities:13036:1" rel="noopener">Hap Seng Consolidated (HAP MK)</a> could drop in the short term but underperformance vs its peers could provide a buying opportunity, especially close to implementation date.</li>
</ul>



Westports Holdings (WPRTS MK) will replace Hap Seng Consolidated (HAP MK) in the Kuala Lumpur Composite Index (KLCI) (FBMKLCI INDEX) after the close of trading on 17 December.

Hap Seng Consolidated (HAP MK) is a delete on liquidity and there will be over 5 days of ADV to sell. The impact on Westports Holdings (WPRTS MK) is smaller.

Hap Seng Consolidated (HAP MK) could drop in the short term but underperformance vs its peers could provide a buying opportunity, especially close to implementation date.


KLCI Index Rebalance: Westports Replaces Hap Seng

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

Thematic (Sector/Industry)

<h2>HSR KL Singapore</h2>Just a few days after saying that the HSR project between KL and Singapore is canceled, current Malaysia PM has re-clarified his position saying that it is merely delayed and not totally scrapped - quoting that the heavy budget burden that Malaysia is undergoing right now. Despite this, <a href="https://www.smartkarma.com/entities/14363" target="_blank" data-smartkarma-citation="entities:14363:1">Gamuda Bhd (GAM MK)</a> share price has gone down by 35%. The estimated cost of the HSR is around MYR 72 billion, around 20% of the estimated 2018 total GDP of Malaysia - a behemoth project for the…

HSR KL SingaporeJust a few days after saying that the HSR project between KL and Singapore is canceled, current Malaysia PM has re-clarified his position saying that it is merely delayed and not totally scrapped - quoting that the heavy budget burden that Malaysia is undergoing right now. Despite this, Gamuda Bhd (GAM MK) share price has gone down by 35%. The estimated cost of the HSR is around MYR 72 billion, around 20% of the estimated 2018 total GDP of Malaysia - a behemoth project for the…

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

<ul><li>Good price momentum, relatively strong analyst recommendation, and low correlation with western stock markets relative to its sector</li><li>The company’s credit financing division should benefit from expected solid growth in the Malaysian economy and expanded collaboration with its other divisions</li><li>About to receive cash for debt repayment and working capital from the sale of its logistics business; the agreement was announced on 7 March 2017 and should give HAP a gain of around US$115m if completed</li><li>HAP has delivered ROE well above the ASEAN Capital Goods average and has produced a solid share price performance</li><li>Risks: Economic slowdown, fail to execute logistics deal</li></ul>* Consensus Estimates

Good price momentum, relatively strong analyst recommendation, and low correlation with western stock markets relative to its sectorThe company’s credit financing division should benefit from expected solid growth in the Malaysian economy and expanded collaboration with its other divisionsAbout to receive cash for debt repayment and working capital from the sale of its logistics business; the agreement was announced on 7 March 2017 and should give HAP a gain of around US$115m if completedHAP has delivered ROE well above the ASEAN Capital Goods average and has produced a solid share price performanceRisks: Economic slowdown, fail to execute logistics deal* Consensus Estimates

HAP (HAP MK): Leverages Credit Financing and Sale of Logistics Arm

Malaysia

Hap Seng Consolidated Berhad is an investment holding company.  The Company, through its subsidiaries, operates oil palm and cocoa plantations, trades heavy equipment and motor vehicles, fabricates and sells commercial trailers and tankers, provides leasing and money lending, and manufactures agricultural fertilizers, agro-chemicals, building materials, and plantation supplies.

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Hap Seng Consolidated (HAP MK)

CPO Plays Lag Palm Oil Prices As ESG Issues Weigh

KLK's reliance on its downstream operations should help reduce palm product prices. The recent acquisition of IJM also extends the age profile of...

David Blennerhassett

WisdomTree Oct 24 Emerging Market Rebalance: Top Net Buys and Sells Across DGS, SOE & DEM

WisdomTree EM Funds are due for rebalancing on Wednesday. In this insight, we show the top net buys and sells by volume multiple. We aggregate our...

DMA

KLCI Index Rebalance: Westports Replaces Hap Seng

Westports Holdings will replace Hap Seng Consolidated in the KLCI at the December rebalance. HAP MK is a liquidity delete and passive trackers will...

Brian Freitas

KL - SG HSR: Repositioning

HSR KL SingaporeJust a few days after saying that the HSR project between KL and Singapore is canceled, current Malaysia PM has re-clarified his...

Henry Soediarko

HAP (HAP MK): Leverages Credit Financing and Sale of Logistics Arm

Good price momentum, relatively strong analyst recommendation, andlow correlation with western stock markets relative to its sector The company’s...

A. Stotz Investment Research

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