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><strong>The week that was in ASEAN@Smartkarma</strong><strong>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.</strong></p>
<p><strong>We add below a NEW section</strong>, <strong>which includes emerging themes in ASEAN and selects important news flow or developments for commentary, which may impact SE Asian companies and markets.  </strong></p>
</div><h3>Macro Insights</h3><p>In <a href="https://www.smartkarma.com/insights/more-rune-reading-trade-balances-have-given-a-good-insight" target="_blank" data-smartkarma-citation="insights:43301" rel="noopener">More Rune Reading: Trade Balances Have Given a Good Insight,</a> Economist <a href="https://www.smartkarma.com/profiles/dr-jim-walker" target="_blank" data-smartkarma-citation="accounts:1628" rel="noopener">Dr Jim Walker</a> looks at the relationship between trade balances and domestic demand across the region. </p><p>In <a href="https://www.smartkarma.com/insights/thailand-s-tourism-dilemma-buy-retailers-hospitals-and-select-hotels" target="_blank" data-smartkarma-citation="insights:43526" rel="noopener">Thailand's Tourism Dilemma - Buy Retailers, Hospitals, and Select Hotels,</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> examines the impact of the sharp downturn of tourism in Thailand and which sectors and companies will benefit most from an impending recovery.  </p><p>In <a href="https://www.smartkarma.com/insights/could-vietnamese-equities-be-set-for-take-off" target="_blank" data-smartkarma-citation="insights:43793" rel="noopener">Could Vietnamese Equities Be Set For Take-Off?,</a> Strategist <a href="https://www.smartkarma.com/profiles/michael-j-howell" target="_blank" data-smartkarma-citation="accounts:2312" rel="noopener">Michael J. Howell</a> zeros in on the Vietnamese market, where he sees potential for a sharp recovery. </p><h3>Equity Bottom-Up Insights</h3><p>In <a href="https://www.smartkarma.com/insights/comfort-delgro-cd-staycation-expo-and-no-more-rental-relief" target="_blank" data-smartkarma-citation="insights:43391" rel="noopener">Comfort Delgro (CD): Staycation, Expo and No More Rental Relief,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/henry-soediarko" target="_blank" data-smartkarma-citation="accounts:1006" rel="noopener">Henry Soediarko</a> revisits Singapore's leading taxi operator <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>, as he sees potential catalysts on the horizon. </p><p>In <a href="https://www.smartkarma.com/insights/wilmar-yka-s-pricing-cheap-rump-stake" target="_blank" data-smartkarma-citation="insights:43702" rel="noopener">Wilmar: YKA's Pricing &amp; Cheap Rump Stake,</a> events specialist <a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" data-smartkarma-citation="accounts:840" rel="noopener">David Blennerhassett</a> returns to look at the listing of its China Agribusiness unit under Yihai Kerry Arawana Holdings' (YKA), which is seeing strong demand but he finds the real value in the stub value if Wilmar's other assets.</p><p>In <a href="https://www.smartkarma.com/insights/fct-placement-well-flagged-but-still-a-large-deal-to-digest" target="_blank" data-smartkarma-citation="insights:43659" rel="noopener">FCT Placement - Well Flagged but Still a Large Deal to Digest,</a><a href="https://www.smartkarma.com/profiles/sumeet-singh" target="_blank" data-smartkarma-citation="accounts:4" rel="noopener">Sumeet Singh</a> revisits the deal dynamics of the <a href="https://www.smartkarma.com/entities/frasers-centrepoint-trust" target="_blank" data-smartkarma-citation="entities:2870:1" rel="noopener">Frasers Centrepoint Trust (FCT SP)</a> planned placement.</p><p><a href="https://www.smartkarma.com/entities/frasers-centrepoint-trust" target="_blank" data-smartkarma-citation="entities:2870:1" rel="noopener"></a>In <a href="https://www.smartkarma.com/insights/scg-packaging-ipo-short-term-catalysts-are-not-attractive" target="_blank" data-smartkarma-citation="insights:43675" rel="noopener">SCG Packaging IPO: Short-Term Catalysts Are Not Attractive,</a><a href="https://www.smartkarma.com/profiles/supun-walpola" target="_blank" data-smartkarma-citation="accounts:1650" rel="noopener">Supun Walpola</a> take an initial look at this upcoming Thai packaging IPO and finds it unattractive short-term. </p><p>In <a href="https://www.smartkarma.com/insights/scg-packaging-ipo-risks-rewards-attractive-at-the-higher-end-of-the-ipo-price-range" target="_blank" data-smartkarma-citation="insights:43751" rel="noopener">SCG Packaging IPO: Risks-Rewards Attractive at the Higher-End of the IPO Price Range,</a><a href="https://www.smartkarma.com/profiles/supun-walpola" target="_blank" data-smartkarma-citation="accounts:1650" rel="noopener">Supun Walpola</a> revisits this major Thai packaging IPO, with a more positive tone. </p><h3>Sector and Thematic Insights</h3><p>In <a href="https://www.smartkarma.com/insights/thai-banks-down-but-coming-back" target="_blank" data-smartkarma-citation="insights:43744" rel="noopener">Thai Banks: Down But Coming Back,</a><a href="https://www.smartkarma.com/profiles/brian-freitas" target="_blank" data-smartkarma-citation="accounts:4091" rel="noopener">Brian Freitas</a> takes a look at Thai Banks in light of a gradual opening-up by the country to foreign tourists, albeit in a small way short term. </p><p> In <a href="https://www.smartkarma.com/insights/thai-media-spotlight-collapse-or-redemption" target="_blank" data-smartkarma-citation="insights:42462" rel="noopener">Thai Media Spotlight: Collapse or Redemption?,</a> out Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> revisits the Thai Media sector in light of the COVID-19 recovery in the country.</p><p>In <a href="https://www.smartkarma.com/insights/ipo-stalker-sisb-s-pandemic-is-sri-trang-gloves-profits" target="_blank" data-smartkarma-citation="insights:42035" rel="noopener">IPO Stalker: SISB's Pandemic Is Sri Trang Gloves' Profits</a>, <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> reports back having met with management from two recently IPO'd companies, namely <a href="https://www.smartkarma.com/entities/sisb-pcl" target="_blank" data-smartkarma-citation="entities:27425:1" rel="noopener">SISB Public Company Limited (SISB TB)</a> (the country's only listed school) and <a href="https://www.smartkarma.com/entities/sri-trang-gloves-thailand-public-company-limited" target="_blank" data-smartkarma-citation="entities:29141:1" rel="noopener">Sri Trang Gloves (STGT TB)</a>, the world's third-largest rubber glove producer and the hottest IPO on the SET in 2020. </p><div><div id="ember7971"><div id="ember7972"><p>In a Smartkarma Original,<a href="https://www.smartkarma.com/insights/asia-dividend-forecasting-the-rise-and-fall-of-dividends-across-asian-companies" target="_blank" data-smartkarma-citation="insights:43022" rel="noopener"> Asia Dividend Forecasting | The Rise and Fall of Dividends Across Asian Companies,</a><a href="https://www.smartkarma.com/profiles/ankit-agrawal-cfa" target="_blank" data-smartkarma-citation="accounts:4555" rel="noopener">Ankit Agrawal, CFA,</a> bring us a quantitative approach for identifying Asian companies that are likely to raise/cut dividends. </p></div></div></div><h3>Credit Insights</h3><p>In <a href="https://www.smartkarma.com/insights/jababeka-trade-war-beneficiary-with-time-on-its-side" target="_blank" data-smartkarma-citation="insights:43636" rel="noopener">Jababeka: Trade War Beneficiary with Time on Its Side,</a><a href="https://www.smartkarma.com/profiles/derek-silva" target="_blank" data-smartkarma-citation="accounts:13468" rel="noopener">Derek Silva</a> provides a view from a credit perspective on <a href="https://www.smartkarma.com/entities/kawasan-industri-jababeka-tbk-pt" target="_blank" data-smartkarma-citation="entities:7755:1" rel="noopener">Kawasan Industri Jababeka (KIJA IJ)</a>. </p><p>In <a href="https://www.smartkarma.com/insights/gajah-tunggal-tear-sheet-lucror-analytics-2e687246-c77c-4d11-8a86-0d019a4b61c1" target="_blank" data-smartkarma-citation="insights:43788" rel="noopener">Gajah Tunggal - Tear Sheet</a>, <a href="https://www.smartkarma.com/profiles/leonard-law-cfa" target="_blank" data-smartkarma-citation="accounts:7106" rel="noopener">Leonard Law, CFA</a> provides a top-down credit view on one of Indonesia's largest tyre manufacturers. </p><p>In <a href="https://www.smartkarma.com/insights/alam-sutera-event-flash-tender-offer-for-2021-and-2022-notes-lucror-analytics" target="_blank" data-smartkarma-citation="insights:43760" rel="noopener">Alam Sutera - Event Flash - Tender Offer For 2021 And 2022 Notes</a>, credit specialist <a href="https://www.smartkarma.com/profiles/trung-nguyen" target="_blank" data-smartkarma-citation="accounts:7108" rel="noopener">Trung Nguyen</a> revisits this Indonesian property developer in light of a tender offer for its 2021 and 2022 Notes. <a href="https://www.smartkarma.com/entities/alam-sutera-realty-tbk-pt" target="_blank" data-smartkarma-citation="entities:2312:1" rel="noopener"></a></p>


The week that was in ASEAN@Smartkarmais 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.  
Macro InsightsIn More Rune Reading: Trade Balances Have Given a Good Insight, Economist Dr Jim Walker looks at the relationship between trade balances and domestic demand across the region. In Thailand's Tourism Dilemma - Buy Retailers, Hospitals, and Select Hotels, CrossASEAN Insight Provider Angus Mackintosh examines the impact of the sharp downturn of tourism in Thailand and which sectors and companies will benefit most from an impending recovery.  In Could Vietnamese Equities Be Set For Take-Off?, Strategist Michael J. Howell zeros in on the Vietnamese market, where he sees potential for a sharp recovery. Equity Bottom-Up InsightsIn Comfort Delgro (CD): Staycation, Expo and No More Rental Relief, CrossASEAN Insight Provider Henry Soediarko revisits Singapore's leading taxi operator Comfortdelgro Corp (CD SP), as he sees potential catalysts on the horizon. In Wilmar: YKA's Pricing &amp; Cheap Rump Stake, events specialist David Blennerhassett returns to look at the listing of its China Agribusiness unit under Yihai Kerry Arawana Holdings' (YKA), which is seeing strong demand but he finds the real value in the stub value if Wilmar's other assets.In FCT Placement - Well Flagged but Still a Large Deal to Digest,Sumeet Singh revisits the deal dynamics of the Frasers Centrepoint Trust (FCT SP) planned placement.In SCG Packaging IPO: Short-Term Catalysts Are Not Attractive,Supun Walpola take an initial look at this upcoming Thai packaging IPO and finds it unattractive short-term. In SCG Packaging IPO: Risks-Rewards Attractive at the Higher-End of the IPO Price Range,Supun Walpola revisits this major Thai packaging IPO, with a more positive tone. Sector and Thematic InsightsIn Thai Banks: Down But Coming Back,Brian Freitas takes a look at Thai Banks in light of a gradual opening-up by the country to foreign tourists, albeit in a small way short term.  In Thai Media Spotlight: Collapse or Redemption?, out Thai guru Athaporn Arayasantiparb, CFA revisits the Thai Media sector in light of the COVID-19 recovery in the country.In IPO Stalker: SISB's Pandemic Is Sri Trang Gloves' Profits, Athaporn Arayasantiparb, CFA reports back having met with management from two recently IPO'd companies, namely SISB Public Company Limited (SISB TB) (the country's only listed school) and Sri Trang Gloves (STGT TB), the world's third-largest rubber glove producer and the hottest IPO on the SET in 2020. In a Smartkarma Original, Asia Dividend Forecasting | The Rise and Fall of Dividends Across Asian Companies,Ankit Agrawal, CFA, bring us a quantitative approach for identifying Asian companies that are likely to raise/cut dividends. Credit InsightsIn Jababeka: Trade War Beneficiary with Time on Its Side,Derek Silva provides a view from a credit perspective on Kawasan Industri Jababeka (KIJA IJ). In Gajah Tunggal - Tear Sheet, Leonard Law, CFA provides a top-down credit view on one of Indonesia's largest tyre manufacturers. In Alam Sutera - Event Flash - Tender Offer For 2021 And 2022 Notes, credit specialist Trung Nguyen revisits this Indonesian property developer in light of a tender offer for its 2021 and 2022 Notes. 

The NEW Week that Was in ASEAN@Smartkarma - Thailand'sToursim Dilemma, Thai Banks, and Wilmar's Stub

<div class="content-highlight">
<p>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.</p>
<p>Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in <a href="mailto:ASEAN@Smartkarma" target="_blank" rel="noopener">ASEAN@Smartkarma</a>.</p>
</div><h3>Macro Insights</h3><p>In <a href="https://www.smartkarma.com/insights/could-emerging-markets-double-from-here" target="_blank" data-smartkarma-citation="insights:43435" rel="noopener">Could Emerging Markets Double From Here?,</a> Strategist <a href="https://www.smartkarma.com/profiles/michael-j-howell" target="_blank" data-smartkarma-citation="accounts:2312" rel="noopener">Michael J. Howell</a> revisits the Emerging Markets theme and take a positive view. </p><p>In <a href="https://www.smartkarma.com/insights/set50-index-rebalance-preview-three-changes-for-now-could-be-one-more" target="_blank" data-smartkarma-citation="insights:43285" rel="noopener">SET50 Index Rebalance Preview: Three Changes for Now, Could Be One More,</a><a href="https://www.smartkarma.com/profiles/brian-freitas" target="_blank" data-smartkarma-citation="accounts:4091" rel="noopener">Brian Freitas</a> takes a look at the potential changes to the SET50 Index constituents at the next rebalance.</p><h3>Equity Bottom-Up Insights</h3><p>In <a href="https://www.smartkarma.com/insights/berli-jucker-bjc-tb-se-asia-s-consumer-recovery-proxy" target="_blank" data-smartkarma-citation="insights:43086" rel="noopener">Berli Jucker (BJC TB) - SE Asia's Consumer Recovery Proxy,</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 one of South East Asia most interesting consumer players, with interests in consumer packaging and retail, as well as the overall consumer supply chain after a conversation with management.</p><p>In <a href="https://www.smartkarma.com/insights/erajaya-swasembada-eraa-ij-goodbye-blackmarket" target="_blank" data-smartkarma-citation="insights:43353" rel="noopener">Erajaya Swasembada (ERAA IJ) - Goodbye Blackmarket,</a><a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> revisits Indonesia's largest mobile handset retailer after a conversation with management. </p><p>In <a href="https://www.smartkarma.com/insights/wilmar-china-ops-ipo-one-step-closer" target="_blank" data-smartkarma-citation="insights:43330" rel="noopener">Wilmar: China Ops IPO One Step Closer,</a> events specialist <a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" data-smartkarma-citation="accounts:840" rel="noopener">David Blennerhassett</a> takes a close look at <a href="https://www.smartkarma.com/entities/wilmar-international-ltd" target="_blank" data-smartkarma-citation="entities:172:1" rel="noopener">Wilmar International (WIL SP)'</a>s plan to spin off its China operations as a separate listing.</p><p>In <a href="https://www.smartkarma.com/insights/col-central-retail-corp-thailand-delisting-offer-trading-tight" target="_blank" data-smartkarma-citation="insights:43261" rel="noopener">COL-Central Retail Corp: Thailand Delisting Offer Trading Tight,</a> Quiddity Insight Provider <a href="https://www.smartkarma.com/profiles/janaghan-jeyakumar-cfa" target="_blank" data-smartkarma-citation="accounts:3173" rel="noopener">Janaghan Jeyakumar, CFA</a> zeros in on the acquisition of <a href="https://www.smartkarma.com/entities/officemate-pcl" target="_blank" data-smartkarma-citation="entities:17857:1" rel="noopener">COL PCL (COL TB)</a> by <a href="https://www.smartkarma.com/entities/central-retail-corp-ltd" target="_blank" data-smartkarma-citation="entities:28240:1" rel="noopener">Central Retail (CRC TB).</a></p><p>In <a href="https://www.smartkarma.com/insights/crc-acquisition-of-col-will-encourage-hardline-and-omni-channel-business" target="_blank" data-smartkarma-citation="insights:43294" rel="noopener">CRC: Acquisition of COL Will Encourage Hardline and Omni-Channel Business,</a> our friends at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> zero in on the potential synergies from the recently announced acquisition of <a href="https://www.smartkarma.com/entities/officemate-pcl" target="_blank" data-smartkarma-citation="entities:17857:1" rel="noopener">COL PCL (COL TB)</a> by <a href="https://www.smartkarma.com/entities/central-retail-corp-ltd" target="_blank" data-smartkarma-citation="entities:28240:1" rel="noopener">Central Retail (CRC TB).</a></p><p>In <a href="https://www.smartkarma.com/insights/dohome-expect-sssg-stronger-than-peers-in-2h20-and-2021" target="_blank" data-smartkarma-citation="insights:43336" rel="noopener">DOHOME: Expect SSSG Stronger than Peers in 2H20 and 2021,</a> our friends at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> upgrade their recommendation from a HOLD to BUY rating with a new target price of THB16.5 based on 33x FY21E PER (Previous TP is Bt12.5), which is close to the other biggest home-improvement player in Thailand, <a href="https://www.smartkarma.com/entities/home-product-center-pcl" target="_blank" data-smartkarma-citation="entities:9906:1" rel="noopener">Home Product Center (HMPRO TB)</a>.</p><p>In <a href="https://www.smartkarma.com/insights/aot-short-set-long-a-compelling-pair" target="_blank" data-smartkarma-citation="insights:43257" rel="noopener">AOT Short/SET Long a Compelling Pair,</a> technical analysis specialist <a href="https://www.smartkarma.com/profiles/thomas-schroeder" target="_blank" data-smartkarma-citation="accounts:381" rel="noopener">Thomas Schroeder</a> explores this interesting pair trade. <a href="https://www.smartkarma.com/entities/airports-of-thailand-pcl" target="_blank" data-smartkarma-citation="entities:239:1" rel="noopener">Airports of Thailand (AOT TB)</a> buy volume on the rise from mid-August warning that the rise is not only fragile but set for a hard decline from the 60/62 resistance zone. </p><p>In <a href="https://www.smartkarma.com/insights/tasco-medium-term-disruption-from-crude-switching" target="_blank" data-smartkarma-citation="insights:43258" rel="noopener">TASCO: Medium-Term Disruption from Crude Switching,</a> our friends from <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> revisit Thailand's largest asphalt player. </p><h3>Sector and Thematic Insights</h3><p>In <a href="https://www.smartkarma.com/insights/south-asian-banks-state-banks-differ" target="_blank" data-smartkarma-citation="insights:43383" rel="noopener">South Asian Banks - State Banks Differ,</a> banking specialist <a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" data-smartkarma-citation="accounts:12" rel="noopener">Daniel Tabbush</a> compares a select few South Asian State-owned banks including <a href="https://www.smartkarma.com/entities/bank-mandiri-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:441:1" rel="noopener">Bank Mandiri Persero (BMRI IJ),</a><a href="https://www.smartkarma.com/entities/krung-thai-bank-pub-co-ltd" target="_blank" data-smartkarma-citation="entities:298:1" rel="noopener">Krung Thai Bank Pub (KTB TB),</a> and <a href="https://www.smartkarma.com/entities/state-bank-of-india" target="_blank" data-smartkarma-citation="entities:160:1" rel="noopener">State Bank Of India (SBIN IN)</a>.</p><h3>Credit Insights</h3><p>In <a href="https://www.smartkarma.com/insights/bangkok-bank-s-new-at1-overweight-on-relative-value" target="_blank" data-smartkarma-citation="insights:43402" rel="noopener">Bangkok Bank’s New AT1 – Overweight on Relative Value,</a> Credit specialist <a href="https://www.smartkarma.com/profiles/warut-promboon" target="_blank" data-smartkarma-citation="accounts:1226" rel="noopener">Warut Promboon</a> takes a look at the latest bond issue from <a href="https://www.smartkarma.com/entities/bangkok-bank-public-co-ltd" target="_blank" data-smartkarma-citation="entities:213:1" rel="noopener">Bangkok Bank Public (BBL TB).</a><a href="https://www.smartkarma.com/entities/bangkok-bank-public-co-ltd" target="_blank" data-smartkarma-citation="entities:213:1" rel="noopener">Bangkok Bank's (BBLTB)</a> inaugural Additional Tier 1 (AT1) bond offers an attractive higher yielding coupon for the current interest rate environment. </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.
Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in ASEAN@Smartkarma.
Macro InsightsIn Could Emerging Markets Double From Here?, Strategist Michael J. Howell revisits the Emerging Markets theme and take a positive view. In SET50 Index Rebalance Preview: Three Changes for Now, Could Be One More,Brian Freitas takes a look at the potential changes to the SET50 Index constituents at the next rebalance.Equity Bottom-Up InsightsIn Berli Jucker (BJC TB) - SE Asia's Consumer Recovery Proxy, CrossASEAN Insight Provider Angus Mackintosh revisits one of South East Asia most interesting consumer players, with interests in consumer packaging and retail, as well as the overall consumer supply chain after a conversation with management.In Erajaya Swasembada (ERAA IJ) - Goodbye Blackmarket,Angus Mackintosh revisits Indonesia's largest mobile handset retailer after a conversation with management. In Wilmar: China Ops IPO One Step Closer, events specialist David Blennerhassett takes a close look at Wilmar International (WIL SP)'s plan to spin off its China operations as a separate listing.In COL-Central Retail Corp: Thailand Delisting Offer Trading Tight, Quiddity Insight Provider Janaghan Jeyakumar, CFA zeros in on the acquisition of COL PCL (COL TB) by Central Retail (CRC TB).In CRC: Acquisition of COL Will Encourage Hardline and Omni-Channel Business, our friends at Country Group zero in on the potential synergies from the recently announced acquisition of COL PCL (COL TB) by Central Retail (CRC TB).In DOHOME: Expect SSSG Stronger than Peers in 2H20 and 2021, our friends at Country Group upgrade their recommendation from a HOLD to BUY rating with a new target price of THB16.5 based on 33x FY21E PER (Previous TP is Bt12.5), which is close to the other biggest home-improvement player in Thailand, Home Product Center (HMPRO TB).In AOT Short/SET Long a Compelling Pair, technical analysis specialist Thomas Schroeder explores this interesting pair trade. Airports of Thailand (AOT TB) buy volume on the rise from mid-August warning that the rise is not only fragile but set for a hard decline from the 60/62 resistance zone. In TASCO: Medium-Term Disruption from Crude Switching, our friends from Country Group revisit Thailand's largest asphalt player. Sector and Thematic InsightsIn South Asian Banks - State Banks Differ, banking specialist Daniel Tabbush compares a select few South Asian State-owned banks including Bank Mandiri Persero (BMRI IJ),Krung Thai Bank Pub (KTB TB), and State Bank Of India (SBIN IN).Credit InsightsIn Bangkok Bank’s New AT1 – Overweight on Relative Value, Credit specialist Warut Promboon takes a look at the latest bond issue from Bangkok Bank Public (BBL TB).Bangkok Bank's (BBLTB) inaugural Additional Tier 1 (AT1) bond offers an attractive higher yielding coupon for the current interest rate environment. 

The Week that Was in ASEAN@Smartkarma - SE Asia's Consumer Proxy, Wilmar's YKA IPO, and CRC

<div class="content-highlight">
<p>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.</p>
<p>Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in <a href="mailto:ASEAN@Smartkarma" target="_blank" rel="noopener">ASEAN@Smartkarma</a></p>
</div><h3>Equity Bottom-Up Insights</h3><p>In <a href="https://www.smartkarma.com/insights/ultrajaya-milk-ind-trading-ultj-ij-a-wholesome-performance" target="_blank" data-smartkarma-citation="insights:42810" rel="noopener">Ultrajaya Milk Ind &amp; Trading (ULTJ IJ) - A Wholesome Performance,</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 dairy player after a conversation with management. </p><p>In <a href="https://www.smartkarma.com/insights/pt-nippon-indosari-corpindo-roti-ij-roti-s-exit-from-philippines-a-positive" target="_blank" data-smartkarma-citation="insights:43102" rel="noopener">PT Nippon Indosari Corpindo (ROTI IJ) - ROTI's Exit from Philippines a Positive,</a><a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> revisits Indonesia's largest mass-market bread player after its announcement it would exit the Philippines to focus on its Indonesian home market. </p><p>In <a href="https://www.smartkarma.com/insights/sido-muncul-sido-switch-competitor-and-split" target="_blank" data-smartkarma-citation="insights:43029" rel="noopener">Sido Muncul (SIDO): Switch, Competitor and Split,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/henry-soediarko" target="_blank" data-smartkarma-citation="accounts:1006" rel="noopener">Henry Soediarko</a> revisits Indonesian traditional medicine player <a href="https://www.smartkarma.com/entities/industri-jamu-dan-farmasi-sido-muncul-tbk-pt" target="_blank" data-smartkarma-citation="entities:6033:1" rel="noopener">Sido Muncul (SIDO IJ)</a> with an update post it recently announced stock split. </p><p>In <a href="https://www.smartkarma.com/insights/bluebird-bird-correlated-with-psbb-beneficiary-of-wfh-to-wfo-switch" target="_blank" data-smartkarma-citation="insights:43077" rel="noopener">Bluebird (BIRD): Correlated with PSBB, Beneficiary of WFH to WFO Switch</a>, CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/henry-soediarko" target="_blank" data-smartkarma-citation="accounts:1006" rel="noopener">Henry Soediarko</a> revisits Indonesia's largest taxi operator.</p><p>In <a href="https://www.smartkarma.com/insights/small-cap-diary-singha-hotels-ptg-energy" target="_blank" data-smartkarma-citation="insights:41024" rel="noopener">Small-Cap Diary: Singha Hotels, PTG Energy,</a> our Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> reports back having visited two interesting companies recently, namely <a href="https://www.smartkarma.com/entities/s-hotels-resorts-pcl" target="_blank" data-smartkarma-citation="entities:28924:1" rel="noopener">S Hotels &amp; Resorts PCL (SHR TB)</a> (Singha Hotels), and <a href="https://www.smartkarma.com/entities/ptg-energy-pcl" target="_blank" data-smartkarma-citation="entities:14385:1" rel="noopener">Ptg Energy Pcl (PTG TB)</a>, the country's second-largest gas station operator.</p><p>In <a href="https://www.smartkarma.com/insights/sembcorp-marine-rights-issue-results-looks-like-a-scheme-of-introduction" target="_blank" data-smartkarma-citation="insights:43030" rel="noopener">Sembcorp Marine Rights Issue Results: Looks Like a Scheme of Introduction,</a> events specialist <a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> revisits <a href="https://www.smartkarma.com/entities/sembcorp-marine-ltd" target="_blank" data-smartkarma-citation="entities:11:1" rel="noopener">Sembcorp Marine (SMM SP)</a> in the wake of recent announcements. </p><div>
<span>In </span><a href="https://www.smartkarma.com/insights/capitaland-mall-and-cct-merger-circular-finally-out-looks-done" target="_blank" data-smartkarma-citation="insights:43006" rel="noopener">Capitaland Mall and CCT Merger: Circular Finally Out. Looks Done.</a><a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a><span> revisits this ongoing merger in Singapore. </span>
</div><div><span> </span></div><div><p>In <a href="https://www.smartkarma.com/insights/singapore-exchange-taiwan-a-standout-in-august" target="_blank" data-smartkarma-citation="insights:43185" rel="noopener">Singapore Exchange – Taiwan A Standout In August,</a><a href="https://www.smartkarma.com/profiles/brian-freitas" target="_blank" data-smartkarma-citation="accounts:4091" rel="noopener">Brian Freitas</a> circles back to <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">SGX (SGX SP)</a> post its monthly numbers.  </p></div><p>In <a href="https://www.smartkarma.com/insights/jwd-entering-high-season-with-growth-drivers-from-new-projects" target="_blank" data-smartkarma-citation="insights:43045" rel="noopener">JWD: Entering High Season with Growth Drivers from New Projects,</a> our friends at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> revisit <a href="https://www.smartkarma.com/entities/jwd-infologistics" target="_blank" data-smartkarma-citation="entities:28438:1" rel="noopener">JWD Infologistics (JWD TB)</a> in Thailand. </p><p>In <a href="https://www.smartkarma.com/insights/global-home-improvement-player-eyes-opportunities-in-asean" target="_blank" data-smartkarma-citation="insights:43134" rel="noopener">GLOBAL: Home-Improvement Player Eyes Opportunities in ASEAN,</a><a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> initiate coverage on Thai home improvement player <a href="https://www.smartkarma.com/entities/siam-global-house-pcl" target="_blank" data-smartkarma-citation="entities:19449:1" rel="noopener">Siam Global House (GLOBAL TB)</a>. </p><h3>Sector and Thematic Insights</h3><p><a href="https://www.smartkarma.com/insights/in-malaysia-heineken-vs-carlsberg-close" target="_blank" data-smartkarma-citation="insights:42940" rel="noopener">In Malaysia: Heineken Vs Carlsberg (Close),</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 this pair trade, which he recommends to close. </p><p>In <a href="https://www.smartkarma.com/insights/indonesia-banks-vastly-differing-tales" target="_blank" data-smartkarma-citation="insights:43031" rel="noopener">Indonesia Banks – Vastly Differing Tales,</a> banking specialist <a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" data-smartkarma-citation="accounts:12" rel="noopener">Daniel Tabbush</a> compares tow Indonesian banks, <a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> and <a href="https://www.smartkarma.com/entities/bank-danamon-indonesia-tbk-pt" target="_blank" data-smartkarma-citation="entities:135:1" rel="noopener">Bank Danamon Indonesia (BDMN IJ),</a> and finds two very different stories.</p><p>In <a href="https://www.smartkarma.com/insights/the-stocks-to-own-in-asean-vol-32" target="_blank" data-smartkarma-citation="insights:43064" rel="noopener">The Stocks to Own in ASEAN – Vol. 32,</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> highlights 14 stocks in ASEAN that look interesting to him based upon our 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><p>In <a href="https://www.smartkarma.com/insights/the-stocks-to-own-in-thailand-vol-30" target="_blank" data-smartkarma-citation="insights:43063" rel="noopener">The Stocks to Own in Thailand – Vol. 30,</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> highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology. Our research team constantly reviews the Thai market to try to find interesting ideas base upon Fundamentals or Valuation or Momentum or Risk or some combination thereof. </p><h3>Credit Insights</h3><p>In <a href="https://www.smartkarma.com/insights/sritex-tear-sheet-lucror-analytics-89648093-0639-4666-a47c-ac1899e8691d" target="_blank" data-smartkarma-citation="insights:43168" rel="noopener">Sritex - Tear Sheet,</a><a href="https://www.smartkarma.com/profiles/leonard-law-cfa" target="_blank" data-smartkarma-citation="accounts:7106" rel="noopener">Leonard Law, CFA</a> presents his credit views view on <a href="https://www.smartkarma.com/entities/sri-rejeki-isman-tbk-pt" target="_blank" data-smartkarma-citation="entities:20178:1" rel="noopener">Sri Rejeki Isman (SRIL IJ)</a> (Sritex). He views Sritex as “High Risk” on the LARA scale.</p>


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.
Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in ASEAN@Smartkarma
Equity Bottom-Up InsightsIn Ultrajaya Milk Ind &amp; Trading (ULTJ IJ) - A Wholesome Performance, CrossASEAN Insight Provider Angus Mackintosh revisits Indonesia's leading dairy player after a conversation with management. In PT Nippon Indosari Corpindo (ROTI IJ) - ROTI's Exit from Philippines a Positive,Angus Mackintosh revisits Indonesia's largest mass-market bread player after its announcement it would exit the Philippines to focus on its Indonesian home market. In Sido Muncul (SIDO): Switch, Competitor and Split, CrossASEAN Insight Provider Henry Soediarko revisits Indonesian traditional medicine player Sido Muncul (SIDO IJ) with an update post it recently announced stock split. In Bluebird (BIRD): Correlated with PSBB, Beneficiary of WFH to WFO Switch, CrossASEAN Insight Provider Henry Soediarko revisits Indonesia's largest taxi operator.In Small-Cap Diary: Singha Hotels, PTG Energy, our Thai guru Athaporn Arayasantiparb, CFA reports back having visited two interesting companies recently, namely S Hotels &amp; Resorts PCL (SHR TB) (Singha Hotels), and Ptg Energy Pcl (PTG TB), the country's second-largest gas station operator.In Sembcorp Marine Rights Issue Results: Looks Like a Scheme of Introduction, events specialist Travis Lundy revisits Sembcorp Marine (SMM SP) in the wake of recent announcements. 
In Capitaland Mall and CCT Merger: Circular Finally Out. Looks Done.Travis Lundy revisits this ongoing merger in Singapore. 
 In Singapore Exchange – Taiwan A Standout In August,Brian Freitas circles back to SGX (SGX SP) post its monthly numbers.  In JWD: Entering High Season with Growth Drivers from New Projects, our friends at Country Group revisit JWD Infologistics (JWD TB) in Thailand. In GLOBAL: Home-Improvement Player Eyes Opportunities in ASEAN,Country Group initiate coverage on Thai home improvement player Siam Global House (GLOBAL TB). Sector and Thematic InsightsIn Malaysia: Heineken Vs Carlsberg (Close), CrossASEAN Insight Provider Angus Mackintosh revisits this pair trade, which he recommends to close. In Indonesia Banks – Vastly Differing Tales, banking specialist Daniel Tabbush compares tow Indonesian banks, Bank Central Asia (BBCA IJ) and Bank Danamon Indonesia (BDMN IJ), and finds two very different stories.In The Stocks to Own in ASEAN – Vol. 32,Dr Andrew Stotz, CFA highlights 14 stocks in ASEAN that look interesting to him based upon our 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.In The Stocks to Own in Thailand – Vol. 30,Dr Andrew Stotz, CFA highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology. Our research team constantly reviews the Thai market to try to find interesting ideas base upon Fundamentals or Valuation or Momentum or Risk or some combination thereof. Credit InsightsIn Sritex - Tear Sheet,Leonard Law, CFA presents his credit views view on Sri Rejeki Isman (SRIL IJ) (Sritex). He views Sritex as “High Risk” on the LARA scale.

The Week that Was in ASEAN@Smartkarma - Indonesian Dairy, Bank Central Asia, and Thai Picks

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<p><em><strong>Corrigenda: There is an error in this Insight. Please note the correction.</strong></em></p>
<p><em><strong>Correction: The <a href="https://www.smartkarma.com/insights/singapore-sti-macro-bear-pressure-mounting-with-tactical-relief-from-2-400" target="_blank" data-smartkarma-citation="insights:42932" rel="noopener">Singapore STI Macro Bear Pressure Mounting with Tactical Relief from 2,400</a> Insight is improperly attributed to Thomas Monaco. That Insight was published by <a href="https://www.smartkarma.com/profiles/thomas-schroeder" target="_blank" data-smartkarma-citation="accounts:381" rel="noopener">Thomas Schroeder</a>.</strong></em></p>
</div>
<hr>
<div class="content-highlight">
<p>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.</p>
<p>Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in <a href="mailto:ASEAN@Smartkarma" target="_blank" rel="noopener">ASEAN@Smartkarma.</a></p>
</div>
<h3>Equity Bottom-Up Insights</h3>
<p>In <a href="https://www.smartkarma.com/insights/kalbe-farma-klbf-ij-a-nutritional-spin-off" target="_blank" data-smartkarma-citation="insights:42533" rel="noopener">Kalbe Farma (KLBF IJ) - A Nutritional Spin-Off?,</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 South East Asia's largest pharmaceutical company in light of news that the company is considering spinning off its Nutritionals division to raise around US$500m. </p>
<p>In <a href="https://www.smartkarma.com/insights/link-net-tbk-pt-link-ij-summer-migration-at-last" target="_blank" data-smartkarma-citation="insights:42829" rel="noopener">Link Net Tbk Pt (LINK IJ) - Summer Migration at Last,</a> <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> revisits Indonesia's highest quality high-speed broadband provider following a call with managment, which focused on its recent results, as well as the decision to build its own pole infrastructure to carry its fibre.  </p>
<p>In <a href="https://www.smartkarma.com/insights/singtel-make-the-call" target="_blank" data-smartkarma-citation="insights:42900" rel="noopener">SingTel: Make The Call,</a> <a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" data-smartkarma-citation="accounts:840" rel="noopener">David Blennerhassett</a> zeros in on Singapore's leading telecom provider and finds deep value appearing in the stock.</p>
<p>In <a href="https://www.smartkarma.com/insights/scg-packaging-ipo-initiation-shrink-wrapping" target="_blank" data-smartkarma-citation="insights:42967" rel="noopener">SCG Packaging IPO Initiation: Shrink Wrapping,</a> <a href="https://www.smartkarma.com/profiles/arun-george" target="_blank" data-smartkarma-citation="accounts:1680" rel="noopener">Arun George</a> takes a first look at the upcoming spin-off from <a href="https://www.smartkarma.com/entities/siam-cement-pcl-the" target="_blank" data-smartkarma-citation="entities:2589:1" rel="noopener">Siam Cement (SCC TB)</a> and IPO of SCG Packaging, which will get a lot of investor focus given ist size and share in of the packaging market in SE Asia. </p>
<p>In <a href="https://www.smartkarma.com/insights/sembcorp-last-chance-before" target="_blank" data-smartkarma-citation="insights:42886" rel="noopener">Sembcorp - Last Chance Before...</a> <a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> looks at the enormously dilutive rights issue and de-merger of Semcorp Marine. </p>
<p> In <a href="https://www.smartkarma.com/insights/singapore-sti-macro-bear-pressure-mounting-with-tactical-relief-from-2-400" target="_blank" data-smartkarma-citation="insights:42932" rel="noopener">Singapore STI Macro Bear Pressure Mounting with Tactical Relief from 2,400,</a> technical analysis specialist <a href="https://www.smartkarma.com/profiles/thomas-j-monaco" target="_blank" data-smartkarma-citation="accounts:1716" rel="noopener">Thomas J. Monaco</a> works his technical magic on the <a href="https://www.smartkarma.com/entities/ftse-straits-times-index-sti" target="_blank" data-smartkarma-citation="entities:22902:1" rel="noopener">FTSE Straits Times Index (STI) (STI INDEX).</a></p>
<p>In <a href="https://www.smartkarma.com/insights/ratch-3q20-earnings-to-improve-from-overseas-performance" target="_blank" data-smartkarma-citation="insights:42789" rel="noopener">RATCH: 3Q20 Earnings to Improve from Overseas Performance</a>, our friend at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> report back on <a href="https://www.smartkarma.com/entities/ratch-group-pcl" target="_blank" data-smartkarma-citation="entities:15338:1" rel="noopener">Ratchaburi Electric (RATCH TB)</a> post its more recent analyst meeting, which left a positive impression.  </p>
<p>In <a href="https://www.smartkarma.com/insights/b-work-good-dividend-yield-makes-an-attractive-investment" target="_blank" data-smartkarma-citation="insights:42782" rel="noopener">B-WORK: Good Dividend Yield Makes an Attractive Investment,</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> revisits <a href="https://www.smartkarma.com/entities/bualuang-office-leasehold-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:26187:1" rel="noopener">Bualuang Office Leasehold Real Estate Investment Trust (B-WORK TB)</a> and takes a positive view. </p>
<p>In <a href="https://www.smartkarma.com/insights/rbf-the-excessive-outperformance-may-come-to-a-halt" target="_blank" data-smartkarma-citation="insights:42788" rel="noopener">RBF: The Excessive Outperformance May Come to a Halt,</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> upgrades his recommendation on <a href="https://www.smartkarma.com/entities/r-b-food-supply-pcl" target="_blank" data-smartkarma-citation="entities:28949:1" rel="noopener">R&amp;B Food Supply PCL (RBF TB)</a> to HOLD from SELL based on raising his target price of THB9.25 from THB8.70, implying a downside of 9% from the current price. </p>
<p>In <a href="https://www.smartkarma.com/insights/sti-acquisition-benefits-are-not-fully-priced-in-strong-buy" target="_blank" data-smartkarma-citation="insights:42785" rel="noopener">STI: Acquisition Benefits Are Not Fully Priced In, Strong BUY,</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> revisits <a href="https://www.smartkarma.com/entities/stonehenge-inter-pcl" target="_blank" data-smartkarma-citation="entities:27353:1" rel="noopener">Stonehenge Inter (STI TB)</a> with a BUY recommendation based on his target of THB10.10, implying an upside of 31% from the current share price. </p>
<p>In <a href="https://www.smartkarma.com/insights/dod-strong-performance-deserves-a-re-rating" target="_blank" data-smartkarma-citation="insights:42676" rel="noopener">DOD: Strong Performance Deserves a Re-Rating,</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> upgrades his recommendation on <a href="https://www.smartkarma.com/entities/dod-biotech-pcl" target="_blank" data-smartkarma-citation="entities:26179:1" rel="noopener">DOD Biotech PCL (DOD TB)</a> to BUY from HOLD based on raising his target price to Bt10.70 from Bt7.55, implying an upside of 26% from the current price. </p>
<p>In <a href="https://www.smartkarma.com/insights/vranda-the-calm-before-challenging-times" target="_blank" data-smartkarma-citation="insights:42781" rel="noopener">VRANDA: The Calm Before Challenging Times,</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> has a SELL recommendation on <a href="https://www.smartkarma.com/entities/veranda-resort-pcl" target="_blank" data-smartkarma-citation="entities:29176:1" rel="noopener">Veranda Resort PCL (VRANDA TB)</a> based on a target price of THB4.30, implying a downside of 26% from the current share price. </p>
<p>In <a href="https://www.smartkarma.com/insights/ace-results-are-not-stunning-stay-on-hold" target="_blank" data-smartkarma-citation="insights:42784" rel="noopener">ACE: Results Are Not Stunning, Stay on HOLD,</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> upgrades his recommendation on <a href="https://www.smartkarma.com/entities/absolute-clean-energy-pcl" target="_blank" data-smartkarma-citation="entities:29155:1" rel="noopener">Absolute Clean Energy PCL (ACE TB)</a> to HOLD from SELL based on raising his target price to THB3.49 from THB2.64, implying an upside of 8% from the current price. </p>
<p>In <a href="https://www.smartkarma.com/insights/spa-weak-demand-continues-to-pressure-2h20-earnings" target="_blank" data-smartkarma-citation="insights:42813" rel="noopener">SPA: Weak Demand Continues to Pressure 2H20 Earnings,</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> downgrades <a href="https://www.smartkarma.com/entities/siam-wellness-group-pcl" target="_blank" data-smartkarma-citation="entities:3765:1" rel="noopener">Siam Wellness Group (SPA TB)</a> from BUY to HOLD rating and cut his target price by 31% to THB6.6 to factor in weakening earnings momentum in 2H20. </p>
<p>In <a href="https://www.smartkarma.com/insights/gunkul-new-60mw-power-plant-to-drive-2h20-earnings" target="_blank" data-smartkarma-citation="insights:42820" rel="noopener">GUNKUL: New 60MW Power Plant to Drive 2H20 Earnings,</a> <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> maintain a BUY rating on <a href="https://www.smartkarma.com/entities/gunkul-engineering-pcl" target="_blank" data-smartkarma-citation="entities:15272:1" rel="noopener">Gunkul Engineering (GUNKUL TB)</a> with a target price of THB3.24 derived using DCF method (WACC 7.8% and TG 1%) implying 11.4x FY20E PER or 0.5x relative PER to Thai utility sector. </p>
<h3>Sector and Thematic Insights</h3>
<p>In <a href="https://www.smartkarma.com/insights/telecom-review-sept-2020-ais-and-asiasoft-get-aggressive-on-gaming" target="_blank" data-smartkarma-citation="insights:41022" rel="noopener">Telecom Review (Sept 2020): AIS and AsiaSoft Get Aggressive on Gaming,</a> our Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> takes a look at gaming, specifically related to <a href="https://www.smartkarma.com/entities/advanced-info-service-pcl" target="_blank" data-smartkarma-citation="entities:947:1" rel="noopener">Advanced Info Service (ADVANC TB)</a> and <a href="https://www.smartkarma.com/entities/asiasoft-corp-pcl" target="_blank" data-smartkarma-citation="entities:5429:1" rel="noopener">Asiasoft Corp (AS TB)</a> in Thailand. </p>


Corrigenda: There is an error in this Insight. Please note the correction.
Correction: The Singapore STI Macro Bear Pressure Mounting with Tactical Relief from 2,400 Insight is improperly attributed to Thomas Monaco. That Insight was published by Thomas Schroeder.



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.
Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in ASEAN@Smartkarma.

Equity Bottom-Up Insights
In Kalbe Farma (KLBF IJ) - A Nutritional Spin-Off?, CrossASEAN Insight Provider Angus Mackintosh revisits South East Asia's largest pharmaceutical company in light of news that the company is considering spinning off its Nutritionals division to raise around US$500m. 
In Link Net Tbk Pt (LINK IJ) - Summer Migration at Last, Angus Mackintosh revisits Indonesia's highest quality high-speed broadband provider following a call with managment, which focused on its recent results, as well as the decision to build its own pole infrastructure to carry its fibre.  
In SingTel: Make The Call, David Blennerhassett zeros in on Singapore's leading telecom provider and finds deep value appearing in the stock.
In SCG Packaging IPO Initiation: Shrink Wrapping, Arun George takes a first look at the upcoming spin-off from Siam Cement (SCC TB) and IPO of SCG Packaging, which will get a lot of investor focus given ist size and share in of the packaging market in SE Asia. 
In Sembcorp - Last Chance Before... Travis Lundy looks at the enormously dilutive rights issue and de-merger of Semcorp Marine. 
 In Singapore STI Macro Bear Pressure Mounting with Tactical Relief from 2,400, technical analysis specialist Thomas J. Monaco works his technical magic on the FTSE Straits Times Index (STI) (STI INDEX).
In RATCH: 3Q20 Earnings to Improve from Overseas Performance, our friend at Country Group report back on Ratchaburi Electric (RATCH TB) post its more recent analyst meeting, which left a positive impression.  
In B-WORK: Good Dividend Yield Makes an Attractive Investment, Dr. Andrew Stotz, CFA revisits Bualuang Office Leasehold Real Estate Investment Trust (B-WORK TB) and takes a positive view. 
In RBF: The Excessive Outperformance May Come to a Halt, Dr. Andrew Stotz, CFA upgrades his recommendation on R&amp;B Food Supply PCL (RBF TB) to HOLD from SELL based on raising his target price of THB9.25 from THB8.70, implying a downside of 9% from the current price. 
In STI: Acquisition Benefits Are Not Fully Priced In, Strong BUY, Dr. Andrew Stotz, CFA revisits Stonehenge Inter (STI TB) with a BUY recommendation based on his target of THB10.10, implying an upside of 31% from the current share price. 
In DOD: Strong Performance Deserves a Re-Rating, Dr. Andrew Stotz, CFA upgrades his recommendation on DOD Biotech PCL (DOD TB) to BUY from HOLD based on raising his target price to Bt10.70 from Bt7.55, implying an upside of 26% from the current price. 
In VRANDA: The Calm Before Challenging Times, Dr. Andrew Stotz, CFA has a SELL recommendation on Veranda Resort PCL (VRANDA TB) based on a target price of THB4.30, implying a downside of 26% from the current share price. 
In ACE: Results Are Not Stunning, Stay on HOLD, Dr. Andrew Stotz, CFA upgrades his recommendation on Absolute Clean Energy PCL (ACE TB) to HOLD from SELL based on raising his target price to THB3.49 from THB2.64, implying an upside of 8% from the current price. 
In SPA: Weak Demand Continues to Pressure 2H20 Earnings, Dr. Andrew Stotz, CFA downgrades Siam Wellness Group (SPA TB) from BUY to HOLD rating and cut his target price by 31% to THB6.6 to factor in weakening earnings momentum in 2H20. 
In GUNKUL: New 60MW Power Plant to Drive 2H20 Earnings, Country Group maintain a BUY rating on Gunkul Engineering (GUNKUL TB) with a target price of THB3.24 derived using DCF method (WACC 7.8% and TG 1%) implying 11.4x FY20E PER or 0.5x relative PER to Thai utility sector. 
Sector and Thematic Insights
In Telecom Review (Sept 2020): AIS and AsiaSoft Get Aggressive on Gaming, our Thai guru Athaporn Arayasantiparb, CFA takes a look at gaming, specifically related to Advanced Info Service (ADVANC TB) and Asiasoft Corp (AS TB) in Thailand. 

The Week that Was in ASEAN@Smartkama - Kalbe Spin-Off, SingTel's Deep Value, and Thailand's Gamers

Independent Asian Credit Research, Bondcritic

Warut Promboon

Independent Asian Credit Research

Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

Thematic (Sector/Industry)

<p style="text-align: justify;">In this Smartkarma Original, we seek to study how diversity and incentives influence stock performance and profitability. We tallied diversity and incentive data related to the board of directors, management, and employees across major economies in Asia and picked top 10 companies of each country in terms of market capitalization. We chose to exclude major companies listed in exchanges of other economies such as Tencent and Alibaba to limit our sample size.</p>
<p style="text-align: justify;">Then we devised diversity and incentive scores to assign to those companies and compare those scores against a 5-year trend of their return on shareholders’ equity (ROE) ratios and 1-year stock performance from 1-July-19 to 30-June-20 over its corresponding exchange indices.</p>
<p style="text-align: justify;">The report covers diversity vs. incentives in Asia, diversity score vs. 1-year stock performance and ROE trend, incentives vs. 1-year stock performance and ROE trend, diversity + incentives scores vs. 1-year stock performance and ROE trend, companies with top and bottom diversity + incentive scores, countries with top and bottom average diversity + incentive scores, and incentive score vs. staffing cost trend. </p>
<p style="text-align: justify;">The results show that companies with high diversity scores do perform well. A high diversity score also has a positive impact on the ROE trend, based on our regression analysis at 95% confidence level. We found that employee incentives are not significant as staff diversity but they can still have an influence on company performances at a lower 90% confidence level.</p>
<p style="text-align: justify;">We note that this study is at the preliminary stage and stock performance is a function of many factors, not only the diversity scores that we concluded. Needless to say, our diversity and incentive scores also reflect the level of disclosures by selected companies, not necessarily the actual practice within each company. Our diversity and incentive scores are also not a credit rating or ranking with peers and, hence, do not reflect default probability of selected companies.</p>
<p style="text-align: justify;">We caution that in Asia, many diversity trends in the West may not apply. The fact that many Asian business communities may remain less sensitive to equal opportunities for females, disabled persons, or LGBTQ communities could make returns of Asian companies less correlated to diversity than in the West. Likewise, additional incentives in some countries in Asia may not be necessary as employees’ strong performance (i.e. in Japan) is a norm, according to the prevalent work culture.</p>
<p style="text-align: justify;">Bondcritic is developing a scoring model, which includes environment, social development, and corporate governance; the last of which cover diversity and incentives. This report is the first of the series to uncover shenanigans in the Asian corporate sector.</p>

In this Smartkarma Original, we seek to study how diversity and incentives influence stock performance and profitability. We tallied diversity and incentive data related to the board of directors, management, and employees across major economies in Asia and picked top 10 companies of each country in terms of market capitalization. We chose to exclude major companies listed in exchanges of other economies such as Tencent and Alibaba to limit our sample size.
Then we devised diversity and incentive scores to assign to those companies and compare those scores against a 5-year trend of their return on shareholders’ equity (ROE) ratios and 1-year stock performance from 1-July-19 to 30-June-20 over its corresponding exchange indices.
The report covers diversity vs. incentives in Asia, diversity score vs. 1-year stock performance and ROE trend, incentives vs. 1-year stock performance and ROE trend, diversity + incentives scores vs. 1-year stock performance and ROE trend, companies with top and bottom diversity + incentive scores, countries with top and bottom average diversity + incentive scores, and incentive score vs. staffing cost trend. 
The results show that companies with high diversity scores do perform well. A high diversity score also has a positive impact on the ROE trend, based on our regression analysis at 95% confidence level. We found that employee incentives are not significant as staff diversity but they can still have an influence on company performances at a lower 90% confidence level.
We note that this study is at the preliminary stage and stock performance is a function of many factors, not only the diversity scores that we concluded. Needless to say, our diversity and incentive scores also reflect the level of disclosures by selected companies, not necessarily the actual practice within each company. Our diversity and incentive scores are also not a credit rating or ranking with peers and, hence, do not reflect default probability of selected companies.
We caution that in Asia, many diversity trends in the West may not apply. The fact that many Asian business communities may remain less sensitive to equal opportunities for females, disabled persons, or LGBTQ communities could make returns of Asian companies less correlated to diversity than in the West. Likewise, additional incentives in some countries in Asia may not be necessary as employees’ strong performance (i.e. in Japan) is a norm, according to the prevalent work culture.
Bondcritic is developing a scoring model, which includes environment, social development, and corporate governance; the last of which cover diversity and incentives. This report is the first of the series to uncover shenanigans in the Asian corporate sector.

Asian Governance: Diversity & Incentives Through the Cultural Lens

Indonesia

PT Telekomunikasi Indonesia Persero Tbk is a telecommunication company that provides a variety of domestic telecommunications services such as telephone, telex, telegram, satellite, and leased lines services.  The Company also offers electronic mail, mobile communication, and cellular phone services.

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Telekomunikasi ADR (TLK US)

The NEW Week that Was in ASEAN@Smartkarma - Thailand'sToursim Dilemma, Thai Banks, and Wilmar's Stub

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

Angus Mackintosh

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

Angus Mackintosh

The Week that Was in ASEAN@Smartkarma - Indonesian Dairy, Bank Central Asia, and Thai Picks

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

Angus Mackintosh

The Week that Was in ASEAN@Smartkama - Kalbe Spin-Off, SingTel's Deep Value, and Thailand's Gamers

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

Angus Mackintosh

Asian Governance: Diversity & Incentives Through the Cultural Lens

In this Smartkarma Original, we seek to study how diversity and incentives influence stock performance and profitability. We tallied diversity and...

Bondcritic

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)