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

<p><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 back to profit after a gruelling 1 year navigating around the COVID-19 situation in Singapore and their other geographical presence around the world. As Singapore hit a high vaccination rate, there is a lot of potential for further restrictions relaxation that will increase mobility in the country, which will increase ridership in Singapore. </p>
<p>The Australian's business IPO could unlock the value for ComfortDelgro to <strong>double</strong> from the current market capitalization that makes it even sweeter to own Comfortdelgro. </p>

Comfortdelgro Corp (CD SP)is back to profit after a gruelling 1 year navigating around the COVID-19 situation in Singapore and their other geographical presence around the world. As Singapore hit a high vaccination rate, there is a lot of potential for further restrictions relaxation that will increase mobility in the country, which will increase ridership in Singapore. 
The Australian's business IPO could unlock the value for ComfortDelgro to double from the current market capitalization that makes it even sweeter to own Comfortdelgro. 

Comfortdelgro (CD): Reopening and Australia IPO

Thematic (Sector/Industry)

<div>The vaccine announcement by <a href="https://www.smartkarma.com/entities/pfizer-inc" target="_blank" data-smartkarma-citation="entities:1131:1" rel="noopener">Pfizer Inc (PFE US)</a> and <a href="https://www.smartkarma.com/entities/moderna-inc" target="_blank" data-smartkarma-citation="entities:28744:1" rel="noopener">Moderna Inc (MRNA US), </a>
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<div>the laggard Singapore equities market all of a sudden leaped to joy and pushed travel-related names up, playing catch up with the rest of the world.</div>
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<a href="https://www.smartkarma.com/entities/singapore-airlines-ltd" target="_blank" data-smartkarma-citation="entities:74:1" rel="noopener">Singapore Airlines (SIA SP)</a> and <a href="https://www.smartkarma.com/entities/sats-ltd" target="_blank" data-smartkarma-citation="entities:19962:1" rel="noopener">SATS Ltd (SATS SP)</a> are the go-to stock for Singapore’s reopening air travel that started with the travel bubble with Hong Kong and other low-risk countries to follow. <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 the key beneficiary to the reopening of the Singapore economy, through the switching of work-from-home to work-in-office (higher ridership in the MRTs and buses that contributes to 60% of the company’s revenues), and also from the reopening of the restaurants and malls that increases mobility in the country. The low or non-existent community COVID-19 cases also help to boost the confidence in Comfort Delgro.</div>
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<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/174/615/original/image_5285658631606463283499.png?1606463282" class="editor-image img-responsive" data-smartkarma-image-id="174615"></figure>
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<p>source: Capital IQ</p>
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<p>The trade is to buy ComfortDelgro as it has less risk to the increase in pandemic and less exposure to the cross border travel unlike Singapore Airlines and SATS (whose valuations have run ahead despite the ongoing concern of the industry) that has most of their revenues exposed to the risk of the cross border travel.</p>
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The vaccine announcement by Pfizer Inc (PFE US) and Moderna Inc (MRNA US), 

the laggard Singapore equities market all of a sudden leaped to joy and pushed travel-related names up, playing catch up with the rest of the world.


Singapore Airlines (SIA SP) and SATS Ltd (SATS SP) are the go-to stock for Singapore’s reopening air travel that started with the travel bubble with Hong Kong and other low-risk countries to follow. Comfortdelgro Corp (CD SP)  is the key beneficiary to the reopening of the Singapore economy, through the switching of work-from-home to work-in-office (higher ridership in the MRTs and buses that contributes to 60% of the company’s revenues), and also from the reopening of the restaurants and malls that increases mobility in the country. The low or non-existent community COVID-19 cases also help to boost the confidence in Comfort Delgro.




source: Capital IQ

The trade is to buy ComfortDelgro as it has less risk to the increase in pandemic and less exposure to the cross border travel unlike Singapore Airlines and SATS (whose valuations have run ahead despite the ongoing concern of the industry) that has most of their revenues exposed to the risk of the cross border travel.


2021 High Conviction: Singapore Travel Names in Bumpy Recovery

<p>The company's share price has been bashed down following a difficult period during COVID-19 when tourism dried up and Singapore was in Circuit Breaker, keeping the public transport and taxi ridership at the bare minimum. </p>
<p>As the Circuit Breaker is lifted and people have started to come back to work, there will be more ridership for public transport and, to a smaller proportion, the taxi division that will boost <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> 's revenue for the rest of the year. </p>
<p>Trading at a 29% discount to its one-year average PER, at 12x PER, and the company is positioned for a clearly mapped recovery in its share price. Start to accumulate positions in <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 <strong>Back-to-Office (BTO) is slowly replacing Work-from-Home (WFH). </strong></p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/137/978/original/image_84790186931591247198808.png?1591247198" class="editor-image img-responsive" data-smartkarma-image-id="137978"></figure>
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<p>source: Capital IQ</p>
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<p><em>Thanks in advance for reading this insight!  Please give this a thumbs up if you find this useful and follow me on Smartkarma for more original and actionable insights; it's free, anonymous, and helpful. Please also feel free to post a comment or message me directly if you have any queries regarding this insight. Your continuing support renders a continuity of more original and actionable insights.  </em></p>
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The company's share price has been bashed down following a difficult period during COVID-19 when tourism dried up and Singapore was in Circuit Breaker, keeping the public transport and taxi ridership at the bare minimum. 
As the Circuit Breaker is lifted and people have started to come back to work, there will be more ridership for public transport and, to a smaller proportion, the taxi division that will boost Comfortdelgro Corp (CD SP) 's revenue for the rest of the year. 
Trading at a 29% discount to its one-year average PER, at 12x PER, and the company is positioned for a clearly mapped recovery in its share price. Start to accumulate positions in Comfortdelgro Corp (CD SP) as Back-to-Office (BTO) is slowly replacing Work-from-Home (WFH). 


source: Capital IQ


Thanks in advance for reading this insight!  Please give this a thumbs up if you find this useful and follow me on Smartkarma for more original and actionable insights; it's free, anonymous, and helpful. Please also feel free to post a comment or message me directly if you have any queries regarding this insight. Your continuing support renders a continuity of more original and actionable insights.  


Comfort Delgro (CD): Back-To-Office (BTO)

<p>This is the second part of the unlocking value of DRB Hi Com, highlighting the potential value unearthed from Puspakom (the vehicle inspection business) and <a href="https://www.smartkarma.com/entities/pos-malaysia-berhad" target="_blank" data-smartkarma-citation="entities:1612:1" rel="noopener">Pos Malaysia (POSM MK)</a>. </p>
<p>Pos Malaysia has a sizeable logistics and courier asset including 3020 delivery vehicles and 6600 motorcycles. With <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> keeps on increasing its service offering, it is not impossible to form a partnership in the delivery channels, which sees Pos Malaysia carry less PPE in the balance sheet, therefore, increases ROE. Its courier and logistics business is also ready to benefit from the growing e-commerce activities in Malaysia. </p>
<p>Puspakom is a vehicle inspection company in Malaysia that is wholly owned by DRB and also offers motor insurance and driver license renewal – an area of business that <a href="https://www.smartkarma.com/entities/my-eg-services-bhd" target="_blank" data-smartkarma-citation="entities:19765:1" rel="noopener">My E.G. Services (MYEG MK)</a> normally is interested in due to its high margin nature. </p>
<p>Proton has a couple of catalysts in the pipeline including higher demand for SUVs, margin improvement once X70 is assembled domestically (from currently CBU to CKD), and UMW (owns Perodua) may potentially lag behind in sales due to a lack of potential product launch in SUVs, therefore, <strong>DRB is still a buy. Any share price weakness due to temporary uncertainty in the political scene should provide a chance to accumulate.</strong> It is also trading on the <strong>lower end</strong> of its 52-week range. </p>

This is the second part of the unlocking value of DRB Hi Com, highlighting the potential value unearthed from Puspakom (the vehicle inspection business) and Pos Malaysia (POSM MK). 
Pos Malaysia has a sizeable logistics and courier asset including 3020 delivery vehicles and 6600 motorcycles. With Grab (0967655D SP) keeps on increasing its service offering, it is not impossible to form a partnership in the delivery channels, which sees Pos Malaysia carry less PPE in the balance sheet, therefore, increases ROE. Its courier and logistics business is also ready to benefit from the growing e-commerce activities in Malaysia. 
Puspakom is a vehicle inspection company in Malaysia that is wholly owned by DRB and also offers motor insurance and driver license renewal – an area of business that My E.G. Services (MYEG MK) normally is interested in due to its high margin nature. 
Proton has a couple of catalysts in the pipeline including higher demand for SUVs, margin improvement once X70 is assembled domestically (from currently CBU to CKD), and UMW (owns Perodua) may potentially lag behind in sales due to a lack of potential product launch in SUVs, therefore, DRB is still a buy. Any share price weakness due to temporary uncertainty in the political scene should provide a chance to accumulate. It is also trading on the lower end of its 52-week range. 

DRB Hi Com (DRB): Value Unlocking-Part II

<p>The National Automotive Policy 2020 (NAP 2020) has been officially launched, building on NAP 2014, focusing on launching Malaysia as the regional leader in the automotive sector. The focus will be on the development of Next-Generation Vehicles (NxGV), Mobility as a Service (MaaS) and Industry 4.0 that encompasses the development of <strong>Automated</strong>, <strong>Autonomous</strong>, <strong>Connected Vehicles</strong> (AACV), <strong>lightweight </strong><strong>material</strong> technology as well as <strong>hybrid</strong>, electric and fuel cell vehicles. </p>
<p><a href="https://www.smartkarma.com/entities/drb-hicom-bhd" target="_blank" data-smartkarma-citation="entities:19627:1" rel="noopener">DRB-Hicom Bhd (DRB MK)</a> through Proton and Puspakom, <a href="https://www.smartkarma.com/entities/mbm-resources-bhd" target="_blank" data-smartkarma-citation="entities:3993:1" rel="noopener">Mbm Resources (MBM MK)</a> and <a href="https://www.smartkarma.com/entities/umw-holdings-bhd" target="_blank" data-smartkarma-citation="entities:1700:1" rel="noopener">Umw Holdings (UMWH MK)</a> stand as the beneficiaries through multiple prongs of the NAP including autonomous vehicles, lighter material, hybrid and aim to be Energy Efficient Vehicle hub. </p>
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<p><em>Thanks in advance for reading this insight!  Please give this a thumbs up if you find this useful and follow me on Smartkarma for more original and actionable insights. Your continuing support renders a continuity of more original and actionable insights.  </em></p>
</div>

The National Automotive Policy 2020 (NAP 2020) has been officially launched, building on NAP 2014, focusing on launching Malaysia as the regional leader in the automotive sector. The focus will be on the development of Next-Generation Vehicles (NxGV), Mobility as a Service (MaaS) and Industry 4.0 that encompasses the development of Automated, Autonomous, Connected Vehicles (AACV), lightweight material technology as well as hybrid, electric and fuel cell vehicles. 
DRB-Hicom Bhd (DRB MK) through Proton and Puspakom, Mbm Resources (MBM MK) and Umw Holdings (UMWH MK) stand as the beneficiaries through multiple prongs of the NAP including autonomous vehicles, lighter material, hybrid and aim to be Energy Efficient Vehicle hub. 

Thanks in advance for reading this insight!  Please give this a thumbs up if you find this useful and follow me on Smartkarma for more original and actionable insights. Your continuing support renders a continuity of more original and actionable insights.  


Malaysia National Automotive Policy 2020: Beneficiaries

Singapore

Vicom Limited provides motor vehicle inspection and other related services.  The Company also provides motor vehicle assessment services and investment trading.

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Vicom Ltd (VCM SP)

Comfortdelgro (CD): Reopening and Australia IPO

The Australian's business IPO could unlock the value for ComfortDelgro to double from the current market that makes it even sweeter to own...

Henry Soediarko

2021 High Conviction: Singapore Travel Names in Bumpy Recovery

Long ComfortDelgro as it has less risk to the increase in pandemic unlike Singapore Airlines and SATS (whose valuations have run ahead despite the...

Henry Soediarko

Comfort Delgro (CD): Back-To-Office (BTO)

The company's share price has been bashed down following a difficult period during COVID-19 when tourism dried up and Singapore was in Circuit...

Henry Soediarko

DRB Hi Com (DRB): Value Unlocking-Part II

This is the second part of the unlocking value of DRB Hi Com, highlighting the potential value unearthed from Puspakom (the vehicle inspection...

Henry Soediarko

Malaysia National Automotive Policy 2020: Beneficiaries

The National Automotive Policy 2020 (NAP 2020) has been officially launched, building on NAP 2014, focusing on launching Malaysia as the regional...

Henry Soediarko

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)