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.

Thematic (Sector/Industry)

<ul>
<li>We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology</li>
<li>Portfolio changes: Three stock remains, 11 stocks added to our portfolio</li>
<li>Since its inception, it has generated a before-fee total return of 128% versus the MSCI Asia ex Japan of 59%</li>
</ul>


We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
Portfolio changes: Three stock remains, 11 stocks added to our portfolio
Since its inception, it has generated a before-fee total return of 128% versus the MSCI Asia ex Japan of 59%


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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/blackmores-ltd" target="_blank" data-smartkarma-citation="entities:928:1" rel="noopener">Blackmores Ltd (BKL AU)</a> has entered a binding proposal with <a href="https://www.smartkarma.com/entities/kirin-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:16977:1" rel="noopener">Kirin Holdings (2503 JP)</a> at A$95.00 per share, a 23.7% premium to the undisturbed price (16 April).</li>
<li>The offer is attractive. Marcus Blackmore, the largest shareholder, will vote in favour of the offer. Regulatory approvals should be forthcoming.   </li>
<li>The scheme meeting is in July. At the last close, the gross and annualised spread for a late August payment is 0.8% and 2.2%, respectively.</li>
</ul>



Blackmores Ltd (BKL AU) has entered a binding proposal with Kirin Holdings (2503 JP) at A$95.00 per share, a 23.7% premium to the undisturbed price (16 April).
The offer is attractive. Marcus Blackmore, the largest shareholder, will vote in favour of the offer. Regulatory approvals should be forthcoming.   
The scheme meeting is in July. At the last close, the gross and annualised spread for a late August payment is 0.8% and 2.2%, respectively.


Blackmores (BKL AU): Kirin’s Binding A$95.00 Offer

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

<ul>
<li>Despite the challenges in Myanmar. MEGA reported all-time-high level of net profit at Bt659m (+8%YoY, +16%QoQ), higher than our forecast and 19% above BB consensus estimated.</li>
<li>Solid 3Q22 result thanks to solid distribution business Excluding extraordinary items, core profit was at Bt669m (+25%YoY, +23%QoQ). The 9M22 result accounted for 84% of our 2022E.</li>
<li>Mega We Care’s revenue (Branded products business) reach to Bt2bn (flat YoY,+2%QoQ) driven by a recovery in revenue from prescription pharmaceutical products along with rebounding number of patient in hospitals</li>
</ul>


Despite the challenges in Myanmar. MEGA reported all-time-high level of net profit at Bt659m (+8%YoY, +16%QoQ), higher than our forecast and 19% above BB consensus estimated.
Solid 3Q22 result thanks to solid distribution business Excluding extraordinary items, core profit was at Bt669m (+25%YoY, +23%QoQ). The 9M22 result accounted for 84% of our 2022E.
Mega We Care’s revenue (Branded products business) reach to Bt2bn (flat YoY,+2%QoQ) driven by a recovery in revenue from prescription pharmaceutical products along with rebounding number of patient in hospitals


MEGA : 3Q22 Profit Reach to All-Time-High Level

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

<div><div><div><div><ul><li>We propose a new set of global plays in accordance with the de- globalization trend, shifting the allocation toward Asia-based companies with better growth prospects than those that generate the bulk of their revenue in Western markets.</li><li>Our recommended stocks are CBG and SCGP.</li><li><div><div><p>The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth potential.</p></div></div></li></ul></div></div></div></div>

We propose a new set of global plays in accordance with the de- globalization trend, shifting the allocation toward Asia-based companies with better growth prospects than those that generate the bulk of their revenue in Western markets.Our recommended stocks are CBG and SCGP.The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth potential.

Changing Landscape for Global Plays - Shifting the Allocation of Global Plays Toward Asia

<ul>
<li>MEGA’s share price corrected 30%from its peak, which we believe it has mostly priced in obstacles to business operation in Myanmar.We upgrade to BUY with a target price of Bt54</li>
<li>Expect 3Q22 result to be another strong quarter Mega We Care’s revenue (Branded products business) is expected to reach at Bt2bn (+1%YoY,+3%QoQ) driven by a recovery in revenue from prescription</li>
<li>Maxxcare’s revenue (Distribution business) is expected to drop to Bt1.75bn (-7%YoY, -6%QoQ) pressured by lower consumer purchasing power following a rising inflation and Myanmar’s Kyat depreciation</li>
</ul>


MEGA’s share price corrected 30%from its peak, which we believe it has mostly priced in obstacles to business operation in Myanmar.We upgrade to BUY with a target price of Bt54
Expect 3Q22 result to be another strong quarter Mega We Care’s revenue (Branded products business) is expected to reach at Bt2bn (+1%YoY,+3%QoQ) driven by a recovery in revenue from prescription
Maxxcare’s revenue (Distribution business) is expected to drop to Bt1.75bn (-7%YoY, -6%QoQ) pressured by lower consumer purchasing power following a rising inflation and Myanmar’s Kyat depreciation


MEGA : Attractive Valuation with Sustainable Growth Outlook

Thailand

Chularat Hospital PCL owns medical centers and hospitals. The Company operates a variety of centers specializing in treatments such as hand surgery, open heart surgery, and strokes as well as providing emergency services and patient care. Chularat Hospital serves the medial industry throughout Thailand.

Vibhavadi Medical Center Public Company Limited owns and operates the Vibhavadi Hospital. Located in Bangkok, the Hospital provides full range of medical services.

Thonburi Healthcare Group Public Company Limited offers health care services. The Hospital provides medical treatment, diagnosis, and surgeries, as well as supply of medical equipment, residential care services, and development of software for hospital management. Thonburi Healthcare Group serves customers worldwide.

Bangkok Chain Hospital Public Company Limited operates a chain of hospitals in Thailand serving both the cash and managed care markets.

Praram 9 Hospital PCL operates as a hospital. The Hospital provides medical services that includes, check-ups, diagnoses, skin care, rehabilitation, X-ray, and surgeries, as well as treatment of joint diseases, kidney, high blood pressure, cancer, diabetes, neurology, vertigo, and headache. Praram 9 Hospital serves patients in Thailand.

Mahachai Hospital Public Company Limited owns and operates Mahachai Hospital. Located in Samut Sakorn, a province adjacent to Bangkok, the Hospital has 180 inpatient beds and 17 diagnostic rooms for 880 outpatients daily.

Chiang Mai Ram Medical Business PLC operates hospital's in Thailand.

Rajthanee Hospital Public Company Limited provides general medical and surgical hospital services.

Thai Nakarin Hospital PCL operates the Thai Nakarin Hospital. The hospital provides 24-hour inpatient and outpatient services.

Nonthavej Hospital Public Company Limited owns and operates the Nonthavej Hospitals. Located in Bangkok, the Hospitals provide full range of inpatient and outpatient medical services.

Tong Ren Tang Technologies Company Limited manufactures, distributes, and researches, and develops Chinese patent medicine.

Tong Ren Tang Technologies Co, Ltd. (1666 HK)

Sosei Group Corporation is a holding company which was established through reorganization.  The Group companies are biopharmaceutical companies specializing in drug development.  Sosei Group enters into license agreements primarily with US, EU, and Japanese companies to market the licensed drugs in Japan and find alternative usage on such drugs.

Beijing Tong Ren Tang Chinese Medicine Co. Ltd. is a Chinese medicine manufacturer. The Company mainly develops and produces health products, including patent medicines and health-care products.

Beijing Tong Ren Tang Chinese Medicine (3613 HK)

Mochida Pharmaceutical Co., Ltd. produces and sells a variety of pharmaceuticals and skin care products.  The Company's main product is circulatory agents. Mochida Pharmaceutical also distributes medical instruments and equipment used for surgery and diagnosis.

Daewoong Pharmaceutical Co., Ltd. develops various kinds of medical drugs and vitamin supplements.  The Company's medical drugs are used in areas, such as cardiology, dermatology, anti-biotic, and many other medical areas.  Dae Woong's over-the-counter products include smoking deterrents, vitamins, and minerals.

Phibro Animal Health Corporation provides animal food products. The Company offers antibacterials, anticoccidials, anthelmintics, and nutritional products. Phibro Animal Health Corporation serves customers worldwide.

Shandong Shanda WIT Science & Technology Co Ltd develops the Shandong University National University Technology Zone, manufactures chlorine dioxide generators, telecommunication network systems, industrial automatic control systems, as well as develops computer software.  The Company also produces medical products.

Shandong Shanda Wit Scienc & Tech (000915 CH)

China Shineway Pharmaceutical (2877.HK) is the largest manufacturer of Chinese medicine injections, soft capsules, and granules in China.

Marksans Pharma Limited manufactures active ingredients that are used to produce finished drugs.

Jiuzhitang Co., Ltd. produces, processes, and sells traditional Chinese medicines and health care products.  The Company's products focus on the treatment of hepatitis and anemia.  Jiuzhitang also provides drug distribution services.

Mega Lifesciences PCL manufactures, markets and distributes nutritional and herbal supplement, OTC and ethical drugs. The Company produces products that range from treating internal issues to overall general health.

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Mega Lifesciences (MEGA TB)

The Stocks to Own in Asia – Vol. 43

We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology. Portfolio changes: Three stock remains, 11 stocks added.

A. Stotz Investment Research

Blackmores (BKL AU): Kirin’s Binding A$95.00 Offer

The offer is attractive. Regulatory approvals should be forthcoming. At the last close, the annualised spread for a late August payment is 2.2%.

Arun George

MEGA : 3Q22 Profit Reach to All-Time-High Level

Despite the challenges in Myanmar. MEGA reported all-time-high level of net profit at Bt659m (+8%YoY, +16%QoQ), higher than our forecast and 19%...

Pi Securities PCL, Thailand

Changing Landscape for Global Plays - Shifting the Allocation of Global Plays Toward Asia

The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth...

Krungthai XSpring

MEGA : Attractive Valuation with Sustainable Growth Outlook

MEGA’s share price corrected 30% from its peak, which we believe it has mostly priced in obstacles to business operation in Myanmar. We upgrade to...

Pi Securities PCL, Thailand

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