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

<div><p>Monde Nissin (MNC), a food manufacturer in the Philippines, aims to raise around US$1bn in its Philippines IPO.</p></div><div><p>It has two main businesses: Asia-Pacific Branded Food and Beverage Business (BFB), which sells instant noodles, biscuits and other products, and meat alternative (MA) business which includes Quorn and Cauldron meat alternatives brands.</p></div><div><p>MNC has a high market share in the Philippines in the instant noodles and biscuits segment along with a few other categories as well. Quorn as well has a strong lead over its next largest peers in the Chicken alternative meat segment in the grocery channel. </p></div><div><p>In our previous notes, <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-the-positives-high-market-share" target="_blank" rel="noopener">Monde Nissin Pre-IPO - The Positives - High Market Share</a>, and <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-the-negatives-high-debt-div-payments-floundering-ma" target="_blank" rel="noopener">Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA</a> we spoke about the company background and its past performance. In <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-peer-comparison-for-food-business" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Peer Comparison for Food Business</a> and <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-peer-comparison-for-meat-alternative-business" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Peer Comparison for Meat Alternative Business</a> we compared the two business with their regional and global peers. In <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Thoughts on Valuation</a> we discussed our thoughts on valuation.</p></div><div><p>In this note, we’ll talk about implied valuation at its fixed price.</p></div>

Monde Nissin (MNC), a food manufacturer in the Philippines, aims to raise around US$1bn in its Philippines IPO.It has two main businesses: Asia-Pacific Branded Food and Beverage Business (BFB), which sells instant noodles, biscuits and other products, and meat alternative (MA) business which includes Quorn and Cauldron meat alternatives brands.MNC has a high market share in the Philippines in the instant noodles and biscuits segment along with a few other categories as well. Quorn as well has a strong lead over its next largest peers in the Chicken alternative meat segment in the grocery channel. In our previous notes, Monde Nissin Pre-IPO - The Positives - High Market Share, and Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA we spoke about the company background and its past performance. In Monde Nissin Pre-IPO - Peer Comparison for Food Business and Monde Nissin Pre-IPO - Peer Comparison for Meat Alternative Business we compared the two business with their regional and global peers. In Monde Nissin Pre-IPO - Thoughts on Valuation we discussed our thoughts on valuation.In this note, we’ll talk about implied valuation at its fixed price.

Monde Nissin Pre-IPO - Not Cheap but Sensible

Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector

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)

<p> In this Smartkarma Original Series report, we scan the Asia Direct-to-Consumer (D2C) channel space for Consumer Packaged Goods to identify the verticals that have gained wider consumer acceptance and witnessed steady growth in each of the key geographies - China, South East Asia, and India. We look into the factors that enabled notable D2C brands in the Beauty, Fashion, and Food verticals to make steady inroads and disrupt the sector within a short period. We discuss the D2C ecosystem, brand journey and key challenges. 2020 has been the year that fast-tracked online retail penetration in most parts of Asia. In this context, we profile D2C brands with either a dominant segment presence or unique business model to gain a deeper understanding of the Asia D2C landscape.</p>
<p><strong>What is original about this report?</strong> Insights and takeaways for Investors in Asia D2C branded players in consumer space based on our comparative study of the segment across three key geographies - China, SE Asia, and India. China's early march in digital transformation and D2C market space offers valuable lessons to players/investors in early-stage digital markets like India which is witnessing aggressive traction in this space. Insights discussed in the report have mostly been weaned from the startup experiences shared by founders of reputed D2C brands. The report also analyses investment outlook for select digitally native D2C brands with lead segment presence and/or unique business models.</p>

 In this Smartkarma Original Series report, we scan the Asia Direct-to-Consumer (D2C) channel space for Consumer Packaged Goods to identify the verticals that have gained wider consumer acceptance and witnessed steady growth in each of the key geographies - China, South East Asia, and India. We look into the factors that enabled notable D2C brands in the Beauty, Fashion, and Food verticals to make steady inroads and disrupt the sector within a short period. We discuss the D2C ecosystem, brand journey and key challenges. 2020 has been the year that fast-tracked online retail penetration in most parts of Asia. In this context, we profile D2C brands with either a dominant segment presence or unique business model to gain a deeper understanding of the Asia D2C landscape.
What is original about this report? Insights and takeaways for Investors in Asia D2C branded players in consumer space based on our comparative study of the segment across three key geographies - China, SE Asia, and India. China's early march in digital transformation and D2C market space offers valuable lessons to players/investors in early-stage digital markets like India which is witnessing aggressive traction in this space. Insights discussed in the report have mostly been weaned from the startup experiences shared by founders of reputed D2C brands. The report also analyses investment outlook for select digitally native D2C brands with lead segment presence and/or unique business models.

D2C Brands in Asia: Disruption Potential in Consumer Space

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Axelum Resources / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/axelum-resources" target="_blank" data-smartkarma-citation="entities:28282:1" rel="noopener">Axelum Resources (1729371D PM)</a> is a leading coconut product manufacturer. Axelum aims to raise up to PHP7.7 billion ($147 million) through a primary (400 million treasury shares and 300 million new shares) and secondary (430 million shares) offering. The offer price is PHP6.81 per share with offer period commencing on 23 September.</p><div class="content-highlight"><p>Overall, we believe that Axelum’s fundamentals offers more positives than negatives and could prove to be attractive at the right valuation. We will provide a view on the valuation in the next note.</p></div>

Axelum Resources (1729371D PM) is a leading coconut product manufacturer. Axelum aims to raise up to PHP7.7 billion ($147 million) through a primary (400 million treasury shares and 300 million new shares) and secondary (430 million shares) offering. The offer price is PHP6.81 per share with offer period commencing on 23 September.Overall, we believe that Axelum’s fundamentals offers more positives than negatives and could prove to be attractive at the right valuation. We will provide a view on the valuation in the next note.

Axelum Resources IPO Initiation: Making a Meal of It

Over 25-yrs in Global Materials & Soft Commodities

Charles Spencer

Equity Bottom-Up

<p><strong>INVESTMENT VIEW:</strong>  Management sounded confident that they could list its China operations at ~20x PER and unlock value in <a href="https://www.smartkarma.com/entities/172" target="_blank" data-smartkarma-citation="entities:172:1">Wilmar International (WIL SP)</a> shares by 1) paying a special dividend from the listing proceeds, and 2) investors using the SOTP valuation to see deep value in the ex-China portion of the business.  However, our review of Wilmar-China’s listed A-share peers highlights significant vulnerability in management’s key assumption on its potential listing multiple.  We recommend investors take profits from the recent rally in the shares and expect them to trade back towards the lower end of its recent trading range. </p>

INVESTMENT VIEW:  Management sounded confident that they could list its China operations at ~20x PER and unlock value in Wilmar International (WIL SP) shares by 1) paying a special dividend from the listing proceeds, and 2) investors using the SOTP valuation to see deep value in the ex-China portion of the business.  However, our review of Wilmar-China’s listed A-share peers highlights significant vulnerability in management’s key assumption on its potential listing multiple.  We recommend investors take profits from the recent rally in the shares and expect them to trade back towards the lower end of its recent trading range. 

Wilmar: China Listing at ~20x Might Prove Too Optimistic.

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<p><strong>Highlights of this week's consumption diary:</strong></p>
<p><strong>Entry and an Exit.</strong> IKEA's recent entry into India and its massive investment plans could transform India's home improvement sector. GSK is exiting its consumer healthcare business and suitors have queued up for Horlicks, the iconic malt-based drink.</p>
<p><strong>Weekly update of actionable Insights published on SmartKarma in the Asia consumption sector:</strong></p>
<p>Two high conviction BUYs from SmartKarma: well-known piano maker from Japan <a href="https://www.smartkarma.com/entities/17841" target="_blank" data-smartkarma-citation="entities:17841:1">Yamaha Corp (7951 JP)</a> and fast growth tech product retailer from Thailand, <a href="https://www.smartkarma.com/entities/27411" target="_blank" data-smartkarma-citation="entities:27411:1">Com7 PCL (COM7 TB)</a> </p>
</div>
<p><strong>Asia's Consumer discretionary, staples and services sector</strong> offers attractive investment opportunities with long-term growth potential. However, disruptive technology, rising internet penetration, changing millennial preferences, shifting demographic patterns, increasing female education levels/labor participation rates are influencing industry trends and impacting traditional players while opening opportunities for new. Watch out for our Consumption Diary to give you a heads up on events and insights in this space.</p>


Highlights of this week's consumption diary:
Entry and an Exit. IKEA's recent entry into India and its massive investment plans could transform India's home improvement sector. GSK is exiting its consumer healthcare business and suitors have queued up for Horlicks, the iconic malt-based drink.
Weekly update of actionable Insights published on SmartKarma in the Asia consumption sector:
Two high conviction BUYs from SmartKarma: well-known piano maker from Japan Yamaha Corp (7951 JP) and fast growth tech product retailer from Thailand, Com7 PCL (COM7 TB) 

Asia's Consumer discretionary, staples and services sector offers attractive investment opportunities with long-term growth potential. However, disruptive technology, rising internet penetration, changing millennial preferences, shifting demographic patterns, increasing female education levels/labor participation rates are influencing industry trends and impacting traditional players while opening opportunities for new. Watch out for our Consumption Diary to give you a heads up on events and insights in this space.

Consumption Diary: As IKEA Storms India, GSK Wants a Way Out; Actionable Insights from Smartkarma

United States

Kellogg Company manufactures and markets ready-to-eat cereal and other convenience foods. The Company's products include cereals, cookies, crackers, toaster pastries, cereal bars, fruit snacks, frozen waffles and veggie foods. Kellogg markets its products in the United States, Canada, and other countries throughout the world.

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Kellogg Co (K US)

Monde Nissin Pre-IPO - Not Cheap but Sensible

Monde Nissin aims to raise around US$1bn in its Philippines IPO. It has two main businesses: Branded Food and Beverage Business, which sells...

Sumeet Singh

D2C Brands in Asia: Disruption Potential in Consumer Space

Insights for investors based on comparative study of Asia D2C landscape across India, SE Asia & China.Analysis of relative segment attractiveness....

Devi Subhakesan

Axelum Resources IPO Initiation: Making a Meal of It

Axelum Resources (1729371D PM) is a leading coconut product manufacturer. Axelum aims to raise up to PHP7.7 billion ($147 million) through a...

Arun George

Wilmar: China Listing at ~20x Might Prove Too Optimistic.

INVESTMENT VIEW: Management sounded confident that they could list its China operations at ~20x PER and unlock value in Wilmar International (WIL...

Charles Spencer

Consumption Diary: As IKEA Storms India, GSK Wants a Way Out; Actionable Insights from Smartkarma

Highlights of this week's consumption diary: Entry and an Exit. IKEA's recent entry into India and its massive investment plans could transform...

Devi Subhakesan

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