Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Last week, <strong><a href="https://www.smartkarma.com/entities/sats-ltd" target="_blank" data-smartkarma-citation="entities:19962:1" rel="noopener">SATS (SATS SP)</a></strong>, a leading inflight catering and gateway service provider in Asia, <a href="https://links.sgx.com/FileOpen/Clarification%20Announcement_21092022.ashx?App=Announcement&amp;FileID=732064" target="_blank" rel="noopener">confirmed</a> media reports it was in talks to buy Cerberus Capital Management-backed Worldwide Flight Services.</li>
<li>Yesterday, SATS <a href="https://links.sgx.com/FileOpen/SATS_Chapter_10_Announcement_on_Proposed_WFS_Acquisition_20220928.ashx?App=Announcement&amp;FileID=732670" target="_blank" rel="noopener">announced</a> it will acquire WFS, the world's largest air cargo handler, for €1.187bn or S$1.639bn (9.7x EV/EBITDA). Funding is to be primarily sourced from a S$1.7bn equity fundraising. </li>
<li>The transaction appears all stitched up with SATS' 40% shareholder Temasek backing the deal. The acquisition is expected to close in March 2023, subject to regulatory clearance.   </li>
</ul>


Last week, SATS (SATS SP), a leading inflight catering and gateway service provider in Asia, confirmed media reports it was in talks to buy Cerberus Capital Management-backed Worldwide Flight Services.
Yesterday, SATS announced it will acquire WFS, the world's largest air cargo handler, for €1.187bn or S$1.639bn (9.7x EV/EBITDA). Funding is to be primarily sourced from a S$1.7bn equity fundraising. 
The transaction appears all stitched up with SATS' 40% shareholder Temasek backing the deal. The acquisition is expected to close in March 2023, subject to regulatory clearance.   


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 ASEAN that look interesting to us based on our FVMR Methodology</li>
<li>Portfolio changes: Three stocks remain, and 11 stocks added into portfolio</li>
<li>Since its inception, the portfolio has generated a before-fee total return of 259% versus MSCI ASEAN’s 44%</li>
</ul>


We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology
Portfolio changes: Three stocks remain, and 11 stocks added into portfolio
Since its inception, the portfolio has generated a before-fee total return of 259% versus MSCI ASEAN’s 44%


<ul>
<li>We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology</li>
<li>Portfolio changes: Four stocks remain, 10 stocks added to our portfolio</li>
<li>Since its inception, the portfolio has generated a before-fee total return of 249% versus MSCI ASEAN’s 39%</li>
</ul>


We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology
Portfolio changes: Four stocks remain, 10 stocks added to our portfolio
Since its inception, the portfolio has generated a before-fee total return of 249% versus MSCI ASEAN’s 39%


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

Equity Bottom-Up

<ul>
<li>1H 24 result was not disappointing, as OPM improved thanks to a few supportive measures that boosted revenue. </li>
<li>Taxi operating profit margin has improved since 2H 23 and is still producing a higher number than last year, thanks to the ZIG app service charge. </li>
<li>
<a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP)</a> is now trading at 1.2x PBR against 2x PBR 5 years ago pre COVID. </li>
</ul>


1H 24 result was not disappointing, as OPM improved thanks to a few supportive measures that boosted revenue. 
Taxi operating profit margin has improved since 2H 23 and is still producing a higher number than last year, thanks to the ZIG app service charge. 

Comfortdelgro Corp (CD SP) is now trading at 1.2x PBR against 2x PBR 5 years ago pre COVID. 


<ul>
<li>
<a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP)</a> share price has underperformed its tourism related transport operator peers.</li>
<li>Key drivers are still strong, including the expected influx of Chinese tourists from visa-free travel arrangements.</li>
<li>Valuation is still compelling, and it is not too late to own it.</li>
</ul>



Comfortdelgro Corp (CD SP) share price has underperformed its tourism related transport operator peers.
Key drivers are still strong, including the expected influx of Chinese tourists from visa-free travel arrangements.
Valuation is still compelling, and it is not too late to own it.


Comfortdelgro (CD): March on Chinese Tourists

Singapore

SATS Limited provides integrated ground handling and in-flight catering services at Singapore Changi Airport.  The Company also provides aviation security, airline laundry, and airport cargo delivery management services.

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SATS (SATS SP)

SATS/WFS: The Future Is Cargo

I estimate a proforma, normalised, EV/EBITDA of 9.7x. Not too demanding. But not what I would consider "cheap". I would not be jumping into SATS...

David Blennerhassett

The Stocks to Own in ASEAN – Vol. 49

We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology. Portfolio changes: Three stocks remain, 11 stocks added.

A. Stotz Investment Research

The Stocks to Own in ASEAN – Vol. 48

We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology. Portfolio changes: Five stocks remain, nine stocks added...

A. Stotz Investment Research

Comfortdelgro (CD): 1H Decent Result

Promising 1H 24 results thanks to Zig service charge and acquisition of A2B. In the UK and Australia, taxi fare/km is much higher than in...

Henry Soediarko

Comfortdelgro (CD): March on Chinese Tourists

Comfortdelgro Corp's share price lags behind tourism transport peers despite strong drivers like Chinese tourist influx and compelling valuation.

Henry Soediarko

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SATS/WFS: The Future Is Cargo

I estimate a proforma, normalised, EV/EBITDA of 9.7x. Not too demanding. But not what I would consider "cheap". I would not be jumping into SATS...

David Blennerhassett

The Stocks to Own in ASEAN – Vol. 49

We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology. Portfolio changes: Three stocks remain, 11 stocks added.

A. Stotz Investment Research

The Stocks to Own in ASEAN – Vol. 48

We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology. Portfolio changes: Five stocks remain, nine stocks added...

A. Stotz Investment Research

Comfortdelgro (CD): 1H Decent Result

Promising 1H 24 results thanks to Zig service charge and acquisition of A2B. In the UK and Australia, taxi fare/km is much higher than in...

Henry Soediarko

Comfortdelgro (CD): March on Chinese Tourists

​Comfortdelgro Corp's share price lags behind tourism transport peers despite strong drivers like Chinese tourist influx and compelling valuation.

Henry Soediarko

Comfortdelgro Corp's share price lags behind tourism transport peers despite strong drivers like Chinese tourist influx and compelling valuation.