Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Equity Bottom-Up

The Vongkusolkij family of Mitr Phol Group boasts market leadership in not one but two very distinct industries: sugar and coal (Banpu), and have diversified into power. But they are also big shareholders in Erawan, Thailand's largest low-cost hotel play. To understand why anyone would want to get into three very different sectors, we outline the structure of Thailand's sugar industry and the family structure and personality of Chanin, the patriarch's younger brother, to understand their diversification. You will be equally surprised that the family has dabbled in insurance (Royal Sun &amp; Alliance) and even has links to the founders of Kiatnakin Phatra, an investment bank that has gained a great deal of spotlight lately...and of course, the timing for this review couldn't be better. October 28 was Banpu Power's first trading day.

The Vongkusolkij family of Mitr Phol Group boasts market leadership in not one but two very distinct industries: sugar and coal (Banpu), and have diversified into power. But they are also big shareholders in Erawan, Thailand's largest low-cost hotel play. To understand why anyone would want to get into three very different sectors, we outline the structure of Thailand's sugar industry and the family structure and personality of Chanin, the patriarch's younger brother, to understand their diversification. You will be equally surprised that the family has dabbled in insurance (Royal Sun &amp; Alliance) and even has links to the founders of Kiatnakin Phatra, an investment bank that has gained a great deal of spotlight lately...and of course, the timing for this review couldn't be better. October 28 was Banpu Power's first trading day.

Rabble Rousers (Episode 2): The Hardest Dots To Connect

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

§ The 10 biggest SGX-listed F&amp;B plays average a market cap of S$3.5 billion, and averaged a 23% gain in the 2016 year through to 26 August. Japfa, Thai Beverage PCL and Jumbo Group were the strongest performers of the 10.§ The next 10 biggest SGX-listed F&amp;B plays average a market cap of S$153 million, and also averaged a 23% gain in the 2016 year through to 26 August. Food Empire Holdings and Katrina Group were the amongst strongest performers of the 10.§ Katrina Group was incorporated in 1995…

§ The 10 biggest SGX-listed F&amp;B plays average a market cap of S$3.5 billion, and averaged a 23% gain in the 2016 year through to 26 August. Japfa, Thai Beverage PCL and Jumbo Group were the strongest performers of the 10.§ The next 10 biggest SGX-listed F&amp;B plays average a market cap of S$153 million, and also averaged a 23% gain in the 2016 year through to 26 August. Food Empire Holdings and Katrina Group were the amongst strongest performers of the 10.§ Katrina Group was incorporated in 1995…

Singapore's Strongest Food & Beverage Stocks in 2016 YTD

Khon Kaen Sugar Industry / Equity Bottom-Up

We looked at soft commodities plays such as sugar and rubber but could not find any rice-based stocks, so we examined two noodle makers instead. Our favorite within this group would be TWPC, a company that makes vermicelli. They stood out in terms of valuation and margins, though most people would argue that they like TFG more since yellow noodle is more popular down here.While rubber prices are dependent on global car demand recovery, STA could benefit from rubber subsidies, especially if the next Prime Minister is a Democrat. Valuation for the sugar stocks all look really inflated; KSL is probably the best managed of the lot.

We looked at soft commodities plays such as sugar and rubber but could not find any rice-based stocks, so we examined two noodle makers instead. Our favorite within this group would be TWPC, a company that makes vermicelli. They stood out in terms of valuation and margins, though most people would argue that they like TFG more since yellow noodle is more popular down here.While rubber prices are dependent on global car demand recovery, STA could benefit from rubber subsidies, especially if the next Prime Minister is a Democrat. Valuation for the sugar stocks all look really inflated; KSL is probably the best managed of the lot.

TWPC: Our Foray into Noodles Vs Soft Commodities

<ul>
<li>Industry Associations see ongoing transformation of Singapore’s F&amp;B industry as manufacturers look towards innovation, growth, and internationalisation.</li>
<li>The 10 biggest Packaged Foods &amp; Meats stocks in Singapore have averaged a 12.6% total return in the year thus far. This compared to 10.1% for Asia Pacific’s biggest Packaged Foods &amp; Meats stocks and 8.9% for the world’s biggest Packaged Foods &amp; Meats stocks.</li>
<li>
<a href="https://www.smartkarma.com/entities/19714" target="_blank" data-smartkarma-citation="entities:19714:1">Delfi Ltd (DELFI SP)</a>, <a href="https://www.smartkarma.com/entities/15597" target="_blank" data-smartkarma-citation="entities:15597:1">Japfa Ltd (JAP SP)</a>, <a href="https://www.smartkarma.com/entities/20972" target="_blank" data-smartkarma-citation="entities:20972:1">Super Group Ltd (SUPER SP)</a>, <a href="https://www.smartkarma.com/entities/9051" target="_blank" data-smartkarma-citation="entities:9051:1">Yeo Hiap Seng Ltd</a>…</li>
</ul>


Industry Associations see ongoing transformation of Singapore’s F&amp;B industry as manufacturers look towards innovation, growth, and internationalisation.
The 10 biggest Packaged Foods &amp; Meats stocks in Singapore have averaged a 12.6% total return in the year thus far. This compared to 10.1% for Asia Pacific’s biggest Packaged Foods &amp; Meats stocks and 8.9% for the world’s biggest Packaged Foods &amp; Meats stocks.

Delfi Ltd (DELFI SP), Japfa Ltd (JAP SP), Super Group Ltd (SUPER SP), Yeo Hiap Seng Ltd…


Key Drivers of the Packaged Food Industry

Thailand

Khon Kaen Sugar Industry PCL produces sugar, energy and agricultural products. The Company produces sugar and molasses, fertilizers, ethanol, and electricity.

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Khon Kaen Sugar Industry (KSL TB)

Rabble Rousers (Episode 2): The Hardest Dots To Connect

The Vongkusolkij family of Mitr Phol Group boasts market leadership in not one but two very distinct industries: sugar and coal (Banpu), and have...

Athaporn Arayasantiparb, CFA

Singapore's Strongest Food & Beverage Stocks in 2016 YTD

§ The 10 biggest SGX-listed F&B plays average a market cap of S$3.5 billion, and averaged a 23% gain in the 2016 year through to 26 August....

Singapore Exchange Ltd (SGX)

TWPC: Our Foray into Noodles Vs Soft Commodities

We looked at soft commodities plays such as sugar and rubber but could not find any rice-based stocks, so we examined two noodle makers instead....

Athaporn Arayasantiparb, CFA

Key Drivers of the Packaged Food Industry

Industry Associations see ongoing transformation of Singapore’s F&B industry as manufacturers look towards innovation, growth, and...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)