Podcast by Magellan Asset Management, Magellan Asset Management

MAGELLAN - IN THE KNOW

Podcast by Magellan Asset Management

Magellan Asset Management

‘In The Know’ is a new monthly investment podcast brought to you by Magellan Asset Management, one of Australia’s leading global equities investors. We seek to bring you timely, unique and thought-provoking insights to help you make sense of today’s investment landscape. From deep dives into the latest macroeconomic and geopolitical issues, to our analysis on sectors and stocks on global markets. Join Magellan, as they connect with a myriad of experts in their field, including CEOs of stocks we hold, global leaders and consultants in finance, investing, risk and politics, and key members of our investment team and business. ‘In The Know’ - a monthly podcast from Magellan is worth investing your time in! Magellan - Experts in global investing.

Thematic (Sector/Industry)

<ul>
<li>Gerald Stack, Ben McVicar, and Ofa Karlina discuss investing in infrastructure and the opportunities it offers</li>
<li>Infrastructure assets provide essential services like energy, water, and transport, leading to reliable and predictable long-term demand</li>
<li>Short-term problems or opportunities in infrastructure companies can impact share prices, creating investment opportunities for savvy investors</li>
</ul>
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.


Gerald Stack, Ben McVicar, and Ofa Karlina discuss investing in infrastructure and the opportunities it offers
Infrastructure assets provide essential services like energy, water, and transport, leading to reliable and predictable long-term demand
Short-term problems or opportunities in infrastructure companies can impact share prices, creating investment opportunities for savvy investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Lessons Learnt from Investing in Essential Services

Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Asean (Thailand) Focused Independent Research

M Corp Review

M Corp is led by Athaporn Arayasantiparb who served as Head of Research for UOB and ANZ in Thailand and was an award-winning telecoms analyst at UBS in 2010 (AsiaMoney Thailand category) and Regional Strategist for DMG in Singapore. Prior to that, he also served as Kasikornbank credit analyst and scholar. He has a total work experience of 17 years, of which 14 were in research and 4 in research management roles. He started his career as an engineer for PTT and currently manages family investments. He holds an MBA from Stern (NYU) and CFA Charter since 2006. Apart from IPO Radar, which focuses on future listings, MCorp Review also provides six on-going thematic series ranked by frequency in descending order, namely: 1) Silicon Stories (technology) 2) Sathorn Series (financial services) 3) Thai-Coons (billionaire origin stories) 4) Reality Check (data-driven, investigative) 5) Thai Media Spotlight; and 6) Thai Macro Watch (global market drivers).

In the review, we look at the distressed Thai aviation industry from four key angles. While there is considerable upside to be had from a sectoral turnaround, survival of most local carriers, with the exception of Bangkok Airways, is really at risk, and neither the government nor private sector may be up to the task of rescuing them:<ul>
<li>
The existential crisis. With Bt330bn of debts in default, Thai Airways is the largest bankruptcy in Thai history, 5.5x the size of TPI's case in 1997. Former subsidiary Nok Air and archrival Air Asia are also restructuring. There's no guarantee any of them will survive the crisis.</li>
<li>
The rescue plans &amp; finances involved. Thai Airways will spend Bt3bn hiring Advisors (Baker &amp; Mckenzie, E&amp;Y, and Finansia). The industry will lay off close to 10,000 people (if not more) to cut costs and are now looking for Bt17bn in soft loans. Even in the best case, THAI probably will need 5 years to get back to profitability...if it survives.</li>
<li>
Reliance on domestic travel and non-core revenues. With international tourism basically dried up, airlines increasingly rely on domestic travel, but that hardly fills their collective fleet of 200 planes. With THAI and NOK at negative equity and AAV at 3.5x gearing, they make money wherever they can now in the short term, ignoring all impact on image.</li>
<li>
International travel recovery. In the long run, international tourism recovery is vital. If the three carriers disappear, it could be a windfall for Bangkok Airways and foreign airlines like Emirates. </li>
</ul>

In the review, we look at the distressed Thai aviation industry from four key angles. While there is considerable upside to be had from a sectoral turnaround, survival of most local carriers, with the exception of Bangkok Airways, is really at risk, and neither the government nor private sector may be up to the task of rescuing them:

The existential crisis. With Bt330bn of debts in default, Thai Airways is the largest bankruptcy in Thai history, 5.5x the size of TPI's case in 1997. Former subsidiary Nok Air and archrival Air Asia are also restructuring. There's no guarantee any of them will survive the crisis.

The rescue plans &amp; finances involved. Thai Airways will spend Bt3bn hiring Advisors (Baker &amp; Mckenzie, E&amp;Y, and Finansia). The industry will lay off close to 10,000 people (if not more) to cut costs and are now looking for Bt17bn in soft loans. Even in the best case, THAI probably will need 5 years to get back to profitability...if it survives.

Reliance on domestic travel and non-core revenues. With international tourism basically dried up, airlines increasingly rely on domestic travel, but that hardly fills their collective fleet of 200 planes. With THAI and NOK at negative equity and AAV at 3.5x gearing, they make money wherever they can now in the short term, ignoring all impact on image.

International travel recovery. In the long run, international tourism recovery is vital. If the three carriers disappear, it could be a windfall for Bangkok Airways and foreign airlines like Emirates. 


Mission Impossible 2021: Rescuing the Thai Airline Industry

Recently, MCorp Review listened to a talk by E8 Consulting on open source and its applications in building fintech platforms and developing investing strategies and found it quite interesting. Firstly, they defined open source and explained why it was so useful. Typically, open source is free and bound by certain license terms; it allows various users to change the source code and develop commercial applications for it. Probably, the best example of this is how Bloomberg terminals, a highly…

Recently, MCorp Review listened to a talk by E8 Consulting on open source and its applications in building fintech platforms and developing investing strategies and found it quite interesting. Firstly, they defined open source and explained why it was so useful. Typically, open source is free and bound by certain license terms; it allows various users to change the source code and develop commercial applications for it. Probably, the best example of this is how Bloomberg terminals, a highly…

Equity Bottom-Up

Bangkok Dusit Medical Services / Equity Bottom-Up

With a net worth of almost US$3bn to his name and counting, Dr. Prasert Prasatthong-osoth and his son, Captain Putthipong, are probably Thailand's fastest rising tycoons. Allied with them is the world's second richest lawyer, Vichai Thongtaeng, who owned the non-listed Phyathai and Paolo Hospitals which I frequent. Bangkok Dusit has been buying stakes in rivals: sometimes controlling, other times minority, but there's a fine line between the two when you deal with a businessman this savvy yo. His son can fly planes, but what he's really doing is running Thailand's boutique airline and a monopoly airport in Samui, an important tourist destination. And they ain't stopping yet. Most recently, Doc just bought Swissotel from Nai Lert Park, and he's gonna convert it into Thailand's first wellness center.Doctor Dad and Pilot Son...These guys are taking off yo! Hold tight!

With a net worth of almost US$3bn to his name and counting, Dr. Prasert Prasatthong-osoth and his son, Captain Putthipong, are probably Thailand's fastest rising tycoons. Allied with them is the world's second richest lawyer, Vichai Thongtaeng, who owned the non-listed Phyathai and Paolo Hospitals which I frequent. Bangkok Dusit has been buying stakes in rivals: sometimes controlling, other times minority, but there's a fine line between the two when you deal with a businessman this savvy yo. His son can fly planes, but what he's really doing is running Thailand's boutique airline and a monopoly airport in Samui, an important tourist destination. And they ain't stopping yet. Most recently, Doc just bought Swissotel from Nai Lert Park, and he's gonna convert it into Thailand's first wellness center.Doctor Dad and Pilot Son...These guys are taking off yo! Hold tight!

Samui Airport Property Fund / Equity Bottom-Up

Thailand accounts for almost half the ASEAN tourism receipts, but further expansion at AOT's key Suvanabhummi Airport will be slow due to the civil servant's culture still looming at large. We prefer to look at Samui Airports (SPF), a monopoly at one of Thailand's hottest tourist spot controlled by a much more expensive parent company Bangkok Airways (BA).In the airline space, check out Asia Aviation (AAV), which operates Air Asia in Thailand. The company is revolutionizing Thai airline industry, having grown low-cost travel tenfolds over the last decade and marginalizing legacy flag carrier Thai Airways (THAI). Also, we suspect Tony Fernandes has grand design of building his own airports in Thailand. Scroll down and find out: 1) why we sold BA, a really well run boutique airline; 2) why AAV is the only Thai-based airline stock being closely watched for potential investment at MCorp Review; and 3) what we think about the King Power deal with AAV.

Thailand accounts for almost half the ASEAN tourism receipts, but further expansion at AOT's key Suvanabhummi Airport will be slow due to the civil servant's culture still looming at large. We prefer to look at Samui Airports (SPF), a monopoly at one of Thailand's hottest tourist spot controlled by a much more expensive parent company Bangkok Airways (BA).In the airline space, check out Asia Aviation (AAV), which operates Air Asia in Thailand. The company is revolutionizing Thai airline industry, having grown low-cost travel tenfolds over the last decade and marginalizing legacy flag carrier Thai Airways (THAI). Also, we suspect Tony Fernandes has grand design of building his own airports in Thailand. Scroll down and find out: 1) why we sold BA, a really well run boutique airline; 2) why AAV is the only Thai-based airline stock being closely watched for potential investment at MCorp Review; and 3) what we think about the King Power deal with AAV.

Aviators & Airports: The Ongoing Revolution

Thailand

Samui Airport Property Fund (Leasehold) is a closed-end property fund incorporated in Thailand. The Fund invests in the long-term leasehold rights in the Leased Assets, which include the Leased Land, Runway, Parking Apron and Construction on the Leased Land, which are currently being used as Samui Airport, a commercial airport located in Samui Island.

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Samui Airport Property Fund (SPF TB)

Lessons Learnt from Investing in Essential Services

The podcast explores the benefits of investing in infrastructure assets for reliable long-term cash flows and opportunities for growth.

MAGELLAN - IN THE KNOW

Mission Impossible 2021: Rescuing the Thai Airline Industry

Bangkok Airways might be the only survivor amongst the 4 listed carriers. Short term, Thai aviation relies on domestic tourist, but long term,...

Athaporn Arayasantiparb, CFA

EB on Open Source & Investing

Recently, MCorp Review listened to a talk by E8 Consulting on open source and its applications in building fintech platforms and developing...

Athaporn Arayasantiparb, CFA

Thai-Coons Ep. 6: A Deal with the Doctor

With a net worth of almost US$3bn to his name and counting, Dr. Prasert Prasatthong-osoth and his son, Captain Putthipong, are probably Thailand's...

Athaporn Arayasantiparb, CFA

Aviators & Airports: The Ongoing Revolution

Thailand accounts for almost half the ASEAN tourism receipts, but further expansion at AOT's key Suvanabhummi Airport will be slow due to the civil...

Athaporn Arayasantiparb, CFA

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