ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

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

Cross Asset Strategy

<div class="content-highlight">
<p>The week that was in <a href="mailto:ASEAN@Smartkarma" target="_blank" rel="noopener">ASEAN@Smartkarma</a> is filled with another eclectic mix of differentiated, substantive, and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.</p>
<p>We add below a NEW section, which includes emerging themes in ASEAN and selects important news flow or developments for commentary, which may impact SE Asian companies and markets.  </p>
</div><h3>Equity Bottom Up</h3><p>In<a href="https://www.smartkarma.com/insights/sea-ltd-se-us-financial-services-the-third-pillar" target="_blank" rel="noopener"> Sea Ltd (SE US) - Financial Services the Third Pillar?</a>, CrossASEAN insight provider<a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener"> Angus Mackintosh</a> revisits the company after the Monetary Authority of Singapore (MAS) announced last week that it will award a full digital bank license to <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" rel="noopener">Sea Ltd (SE US).</a></p><p> In <a href="https://www.smartkarma.com/insights/erajaya-swasembada-eraa-ij-feeding-the-digital-economy" target="_blank" data-smartkarma-citation="insights:46136" rel="noopener">Erajaya Swasembada (ERAA IJ) - Feeding the Digital Economy,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> revisits Indonesia's leading smartphone and retailer and distributor after a call with the company's management. </p><p>In this Malaysian Insight,<a href="https://www.smartkarma.com/insights/myeg-vaccine-and-concession-worries-unfounded" target="_blank" rel="noopener"> MYEG: Vaccine and Concession - Worries Unfounded</a>, CrossASEAN insight provider<a href="https://www.smartkarma.com/profiles/henry-soediarko" target="_blank" rel="noopener"> Henry Soediarko</a> sees the company as undervalued versus its peers, with management taking a more dynamic and active approach by launching new initiatives such as online groceries and health screening services.</p><p>In<a href="https://www.smartkarma.com/insights/far-east-hospitality-trust-feht-stable-in-slow-recovery" target="_blank" rel="noopener"> Far East Hospitality Trust (FEHT): Stable in Slow Recovery</a>,<a href="https://www.smartkarma.com/profiles/henry-soediarko" target="_blank" rel="noopener"> Henry Soediarko</a> returns to look at <a href="https://www.smartkarma.com/entities/far-east-hospitality-trust" target="_blank" data-smartkarma-citation="entities:19061:1" rel="noopener">Far East Hospitality Trust (FEHT SP)</a>, which he sees as a relatively safe way to play the recovery in the hospitality industry.</p><p>In<a href="https://www.smartkarma.com/insights/sea-ltd-placement-new-business-needs-new-money" target="_blank" rel="noopener"> SEA Ltd Placement - New Business Needs New Money</a>,<a href="https://www.smartkarma.com/profiles/sumeet-singh" target="_blank" rel="noopener"> Sumeet Singh</a> revisits<a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" rel="noopener"> Sea Ltd (SE US)</a> as it announced that it is planning to raise US$2.2bn - US$2.6bn in a primary follow-on offering of Global Depository Shares. He sees this as an opportunistic fundraising to help grow its digital financial services having just secured a full digital banking license in Singapore. </p><p>In <a href="https://www.smartkarma.com/insights/ptt-oil-and-retail-pttor-ipo-initiation-octane-ratings" target="_blank" data-smartkarma-citation="insights:46230" rel="noopener">PTT Oil and Retail (PTTOR) IPO Initiation: Octane Ratings,</a><a href="https://www.smartkarma.com/profiles/arun-george" target="_blank" data-smartkarma-citation="accounts:1680" rel="noopener">Arun George</a> initiates coverage on this upcoming gasoline station and retailing IPO from PTT Group.</p><p>In<a href="https://www.smartkarma.com/insights/ipo-radar-supalai-reit-office-tower-operator-on-rama-3" target="_blank" rel="noopener"> IPO Radar: Supalai REIT, Office Tower Operator on Rama 3</a>, our Thai guru<a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" rel="noopener"> Athaporn Arayasantiparb, CFA</a> looks at the upcoming IPO of <a href="https://www.smartkarma.com/entities/supalai-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:30843:1" rel="noopener">Supalai Real Estate Investment Trust (SPALIRT TB)</a>in Thailand.</p><p><a href="https://www.smartkarma.com/entities/supalai-public-company-ltd" target="_blank" data-smartkarma-citation="entities:14148:1" rel="noopener"></a>In Thailand<a href="https://www.smartkarma.com/insights/kerry-express-thailand-ipo-time-for-delivery" target="_blank" rel="noopener"> Kerry Express Thailand IPO - Time for Delivery</a>, IPO specialist<a href="https://www.smartkarma.com/profiles/sumeet-singh" target="_blank" rel="noopener"> Sumeet Singh</a> takes a look at<a href="https://www.smartkarma.com/entities/kerry-express-thailand" target="_blank" rel="noopener"> Kerry Express Thailand (KEX TB)</a> which has registered spectacular growth over the past few years. </p><p>Still in<a href="https://www.smartkarma.com/insights/kerry-express-thailand-kex-ipo-update-on-valuation-range-competitor-actions" target="_blank" rel="noopener"> Kerry Express Thailand (KEX) IPO: Update on Valuation Range &amp; Competitor Actions</a><a href="https://www.smartkarma.com/profiles/daniel-hellberg" target="_blank" data-smartkarma-citation="accounts:605" rel="noopener">Daniel Hellberg</a> of <a href="https://www.smartkarma.com/companies/tracking-traffic" target="_blank" rel="noopener">Tracking Traffic</a> takes a look at the upcoming IPO of <a href="https://www.smartkarma.com/entities/kerry-express-thailand" target="_blank" rel="noopener"> Kerry Express Thailand (KEX TB).</a><a href="https://www.smartkarma.com/entities/kerry-express-thailand" target="_blank" data-smartkarma-citation="entities:29253:1" rel="noopener">Kerry Express Thailand (KEX TB)</a> recently announced an IPO price range of THB25-28 per share and plans to finally list its shares in late December. </p><div id="ember14458">
<p>In<a href="https://www.smartkarma.com/insights/singapore-exchange-strains-seen-for-tw-futures" target="_blank" rel="noopener"> Singapore Exchange – Strains Seen For TW Futures</a>,<a href="https://www.smartkarma.com/profiles/thomas-j-monaco" target="_blank" rel="noopener"> Thomas J. Monaco</a> takes a look at  <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" rel="noopener">SGX (SGX SP),</a> after it released market statistics for November 2020. </p>
<div><div id="ember14917"><section></section></div></div>
</div><h3>Sector and Thematic</h3><p>In <a href="https://www.smartkarma.com/insights/the-stocks-to-own-in-asean-vol-33" target="_blank" data-smartkarma-citation="insights:46106" rel="noopener">The Stocks to Own in ASEAN – Vol. 33,</a><a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr. Andrew Stotz, CFA</a> lays out his thoughts and highlights 14 stocks in ASEAN that look interesting to him based on his FVMR Methodology. His research team constantly reviews the ASEAN markets to try to find interesting ideas based on Fundamentals or Valuation or Momentum or Risk or some combination thereof. </p><div><p></p></div>


The week that was in ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive, and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.
We add below a NEW section, which includes emerging themes in ASEAN and selects important news flow or developments for commentary, which may impact SE Asian companies and markets.  
Equity Bottom UpIn Sea Ltd (SE US) - Financial Services the Third Pillar?, CrossASEAN insight provider Angus Mackintosh revisits the company after the Monetary Authority of Singapore (MAS) announced last week that it will award a full digital bank license to Sea Ltd (SE US). In Erajaya Swasembada (ERAA IJ) - Feeding the Digital Economy, CrossASEAN Insight Provider Angus Mackintosh revisits Indonesia's leading smartphone and retailer and distributor after a call with the company's management. In this Malaysian Insight, MYEG: Vaccine and Concession - Worries Unfounded, CrossASEAN insight provider Henry Soediarko sees the company as undervalued versus its peers, with management taking a more dynamic and active approach by launching new initiatives such as online groceries and health screening services.In Far East Hospitality Trust (FEHT): Stable in Slow Recovery, Henry Soediarko returns to look at Far East Hospitality Trust (FEHT SP), which he sees as a relatively safe way to play the recovery in the hospitality industry.In SEA Ltd Placement - New Business Needs New Money, Sumeet Singh revisits Sea Ltd (SE US) as it announced that it is planning to raise US$2.2bn - US$2.6bn in a primary follow-on offering of Global Depository Shares. He sees this as an opportunistic fundraising to help grow its digital financial services having just secured a full digital banking license in Singapore. In PTT Oil and Retail (PTTOR) IPO Initiation: Octane Ratings,Arun George initiates coverage on this upcoming gasoline station and retailing IPO from PTT Group.In IPO Radar: Supalai REIT, Office Tower Operator on Rama 3, our Thai guru Athaporn Arayasantiparb, CFA looks at the upcoming IPO of Supalai Real Estate Investment Trust (SPALIRT TB)in Thailand.In Thailand Kerry Express Thailand IPO - Time for Delivery, IPO specialist Sumeet Singh takes a look at Kerry Express Thailand (KEX TB) which has registered spectacular growth over the past few years. Still in Kerry Express Thailand (KEX) IPO: Update on Valuation Range &amp; Competitor ActionsDaniel Hellberg of Tracking Traffic takes a look at the upcoming IPO of  Kerry Express Thailand (KEX TB).Kerry Express Thailand (KEX TB) recently announced an IPO price range of THB25-28 per share and plans to finally list its shares in late December. 
In Singapore Exchange – Strains Seen For TW Futures, Thomas J. Monaco takes a look at  SGX (SGX SP), after it released market statistics for November 2020. 

Sector and ThematicIn The Stocks to Own in ASEAN – Vol. 33,Dr. Andrew Stotz, CFA lays out his thoughts and highlights 14 stocks in ASEAN that look interesting to him based on his FVMR Methodology. His research team constantly reviews the ASEAN markets to try to find interesting ideas based on Fundamentals or Valuation or Momentum or Risk or some combination thereof. 

The Week that Was in ASEAN@Smartkarma - Digital Festive Cheer, Sea Ltd Going Financial, and KEX

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).

Equity Capital Markets

Supalai Real Estate Investment Trust / Equity Capital Markets

<p>Supalai, the country's second most valuable property company traditionally focused on the residential niche, is launching an IPO of its office REIT on Rama 3.</p><ul>
<li>
<strong>The IPO</strong>. As a norm, Thai REITs are initially priced at Bt10/unit. The initial asset size of Bt3.2bn implies a market cap of US$106m and 320m units. Jay Capital is Financial Advisor, with SPM as Property Manager, Adelphi as REIT Manager, and KTAM as Trustee.</li>
<li>
<strong>Assets and business</strong>. The asset is the 34-storey Supalai Grand Tower on Rama 3. The office building has an 88.5% occupancy rate. Utilities and parking space account for 7% and 5% of revenue respectively, and the main growth driver should be the 3% rental increase across most space.</li>
<li>
<strong>Valuations</strong>. Our valuation range is very tight at Bt11.5-11.7/unit, implying a 15-17% upside from IPO price. As an existing Supalai shareholder, we are planning to participate. Supalai itself should also benefit marginally from value crystallization.</li>
<li>
<strong>Key risks and limits</strong>. Key risks to the investment case includes potential loss of tenants, fund execution risk, land repossession, and macroeconomic risks. Property fees and maintenance fees are capped at 2.7% and 2% respectively.</li>
</ul>

Supalai, the country's second most valuable property company traditionally focused on the residential niche, is launching an IPO of its office REIT on Rama 3.

The IPO. As a norm, Thai REITs are initially priced at Bt10/unit. The initial asset size of Bt3.2bn implies a market cap of US$106m and 320m units. Jay Capital is Financial Advisor, with SPM as Property Manager, Adelphi as REIT Manager, and KTAM as Trustee.

Assets and business. The asset is the 34-storey Supalai Grand Tower on Rama 3. The office building has an 88.5% occupancy rate. Utilities and parking space account for 7% and 5% of revenue respectively, and the main growth driver should be the 3% rental increase across most space.

Valuations. Our valuation range is very tight at Bt11.5-11.7/unit, implying a 15-17% upside from IPO price. As an existing Supalai shareholder, we are planning to participate. Supalai itself should also benefit marginally from value crystallization.

Key risks and limits. Key risks to the investment case includes potential loss of tenants, fund execution risk, land repossession, and macroeconomic risks. Property fees and maintenance fees are capped at 2.7% and 2% respectively.


IPO Radar: Supalai REIT, Office Tower Operator on Rama 3

Thailand

Supalai Real Estate Investment Trust is an office REIT partially owned by  Supalai Public Company Limited.

Supalai Real Estate Investment Trust (SPALIRT TB)

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Supalai Real Estate Investment Trust (SPALIRT TB)

The Week that Was in ASEAN@Smartkarma - Digital Festive Cheer, Sea Ltd Going Financial, and KEX

The week that was in ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive, and actionable insights from across South...

Angus Mackintosh

IPO Radar: Supalai REIT, Office Tower Operator on Rama 3

Supalai REIT is another single asset REIT on Rama 3. Our valuation range is Bt11.5-11.7/unit, and we recommend participating in the IPO for the...

Athaporn Arayasantiparb, CFA

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