SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
<strong>Of the 10 largest constituents in the FTSE ST Consumer Goods &amp; Services Index, the three largest food and/or beverage </strong><strong>producers</strong><strong> </strong><strong>are Wilmar International, Thai Beverage and Golden Agri-Resources (GAR).</strong><br>
	 </li>
	<li>
<strong>The trio have seen resilient operational performances, with relatively little impact from COVID-19 due to the essential nature of their products. The trio expect a stable performance for 2H 2020 and are moving ahead with their respective growth plans.</strong><br>
	 </li>
	<li><strong>Wilmar has led the three in YTD performances with a 7.4% total return, compared to a decline of 27.4% for Thai Beverage PCL and a decline of 37.2% for GAR. The three stocks have also seen a total of S$319 of net retail inflow this year. For a report on Food Producers and the YKA listing last month, click <a href="http://edm.sgx.com/a/hBfeuecB86%24MfB92-cbAAApi2xC/link1?t_params=tn-vzRejzs5eQDDJ-g3lR8bHaYhLxTdVhnpGgUYVFEac37phrri9e2i%24M6gxhPV3TlWst6b3oRGkh%24hFG5G9SQjYL">here</a>. </strong></li>
</ul>
<p> </p>

<p class="x">The FTSE ST Consumer Goods &amp; Services Index comprises the constituents in either the Consumer Goods or the Consumer Services Industries (ICB code 3000 or 5000) under the FTSE ST All-Share Index.<br><br>
Stocks are free-float weighted to ensure that only the investable opportunity set is included within the index, and are liquidity screened to ensure that the index is tradable. sdf<br><br>
Of the 10 largest constituents in the FTSE ST Consumer Goods &amp; Services Index, the three largest food and/or beverage manufacturers or producers are Wilmar International, Thai Beverage and Golden Agri-Resources (“GAR”). Note Dairy Farm International while also representing the Consumer Goods Industry is sub categorised as a retailer.<br><br>
For the factsheet on the FTSE ST Consumer Goods &amp; Services Index, click <a href="https://research.ftserussell.com/Analytics/FactSheets/Home/DownloadSingleIssue?issueName=FSTACT&amp;IsManual=False&amp;">here</a>.<br>
 </p>

<p class="x"><strong>Highlights from</strong><strong> </strong><strong>Wilmar International</strong><strong>’s recent announcements</strong></p>

<ul>
<li>The Group achieved <a href="https://links.sgx.com/1.0.0/corporate-announcements/06BK6WF6PAICPY11/637248_Wilmar_3Q2020_Executive_Financial_Summary_30Oct2020.pdf">core net profit of US$501.4 million</a> in the quarter ended 30 September 2020, the highest 3Q core results since listing</li>
	<li>Together with non-operating gains from investment activities, net profit for the quarter increased by 20.0% to US$536.6 million</li>
	<li>All core segments continued to perform better than the previous year, in terms of both revenue and profit, on the back of strong demand for our food products and higher crushing activities as the African Swine Fever situation in China eased</li>
	<li>With the containment of the coronavirus in China and the rebound of the Chinese economy, coupled with greater emphasis by consumers on the importance of eating safer and healthier food, our range of quality food products will benefit</li>
	<li>We also expect volume to pick up in those Asian countries where lockdown measures have eased</li>
	<li>With the tight global vegetable oils situation, we expect palm prices to remain firm into early 2021, driving our Palm Oil Mill and Plantation results for the next quarter</li>
	<li>Processing margins for Tropical Oils and Oilseed crushing margins are also expected to be satisfactory for the rest of the year</li>
	<li>Our Sugar operations are expected to do well for this year, aided by the strong white sugar premium and the recent recovery in sugar prices</li>
	<li>Barring unforeseen circumstances, we expect results for the rest of the year to be good</li>
	<li>Our China subsidiary, Yihai Kerry Arawana Holdings Co Ltd (YKA), now a 89.99% subsidiary of Wilmar, was officially listed on the Shenzhen Stock Exchange ChiNext Board and commenced trading on 15 October 2020</li>
	<li>Net proceeds amounting to US$2.05 billion were received from the new YKA shares issued in connection with its IPO amounting to 10% of the enlarged share capital of YKA</li>
	<li>The Board is pleased to announce that a special dividend, of approximately 15% of the total IPO proceeds, will be declared in 2021 to commemorate the successful listing of YKA</li>
</ul>
<p> </p>

<p class="x"><strong>Highlights from</strong><strong> </strong><strong>Thai Beverage</strong><strong>’s recent announcements</strong></p>

<ul>
<li>ThaiBev unveiled “<a href="https://links.sgx.com/1.0.0/corporate-announcements/27WPI556HTFCNRVF/633619_PASSION_2025.pdf">PASSION 2025</a>” on 1 October 2020, which encapsulates its roadmap for the next five years</li>
	<li>This builds upon ThaiBev’s success in implementing initiatives in line with the five strategic imperatives – Growth, Diversity, Brands, Reach, and Professionalism – under its “Vision 2020”</li>
	<li>PASSION 2025 encompasses three domains:
	<ul>
<li>First, the Group aims to build new capabilities by innovating to enhance its business and service model, its product offerings, and its channels, as well as by partnering stakeholders to grow with sustainability</li>
		<li>Second, the Group endeavors to strengthen its leadership positions in its core markets – Thailand, Vietnam, Myanmar, Singapore and Malaysia; this will be driven by an increased focus on supply chain, process innovation and digitalization, as well as on brand portfolio management</li>
		<li>Third, the Group seeks to unlock potential to enhance shareholder value by building partnerships, asset value creation, and developing a world class workforce</li>
	</ul>
</li>
	<li>Underpinned by robust fundamentals, ThaiBev is moving forward with its growth plans despite the current tough operating environment</li>
	<li>Having navigated various challenges over the past few years, its businesses have emerged stronger and have proven to be resilient amid the ongoing COVID-19 pandemic</li>
	<li>As the Group continues to manage its businesses responsibly, holistically safeguarding stakeholders’ interests, it believes it remains well-placed to deliver sustainable value to shareholders</li>
	<li>On 28 September, the executive committee of ThaiBev approved <a href="https://links.sgx.com/1.0.0/corporate-announcements/59QTK14GX5QRMAMS/633125_Management_Line_Up.pdf">the appointment</a> of five senior management staff and two senior vice-presidents to help the company realise its growth objectives</li>
	<li>These appointments, effective 1 October 2020, will prepare the Group for its next phase of growth, boosting its strategic focus in growth, diversity, brands, reach and professionalism</li>
	<li>Operations for the nine months ended 30 June 2020 proved to be stable despite impact of COVID-19 lockdowns</li>
	<li>The Group’s Spirits business proved resilient, with solid EBITDA growth of 4.9% YoY despite sales revenue being flat YoY</li>
	<li>It achieved a record high in market share of Thailand’s beer market since the Chang relaunch, with strong improvement in sales volumes in May and June</li>
</ul>
<p> </p>

<p class="x"><strong>Highlights from</strong><strong> </strong><strong>Golden Agri-Resources</strong><strong>’s recent announcements</strong></p>

<ul>
<li>On 6 October, GAR announced it is incorporating a <a href="https://links.sgx.com/1.0.0/corporate-announcements/PQS14DLDF23WJ2DK/634057_GAR39-06-10-2020-New%20Brazilian%20sugar%20subsidiary%20complements%20GAR%20existing%20palm%20oil%20distribution%20network.pdf">wholly owned subsidiary</a> in Sao Paolo, Brazil – Golden Agri-Resources Brasil Sociedade Limitada Unipessoal (GAR Brazil) – to help the Group enhance its sugar trading business</li>
	<li>Establishing a presence in Brazil, one of the biggest sugar exporters in the world, is a logical extension of its current sugar activities</li>
	<li>By taking advantage of GAR’s extensive palm-based distribution capabilities, GAR’s entry into sugar merchandising provides a low cost, asset-light, niche contribution to its business</li>
	<li>The Group can continue to offer excellent service to its existing palm oil customer base, offer an aligned sugar service to those palm customers where it is a related ingredient, and use its distribution capabilities efficiently to serve new and existing, sugar-only customers</li>
	<li>The global markets, especially in key consuming countries, have been recovering progressively as expected, while strong commitment was seen  from the Indonesia government on its B30 mandate implementation</li>
	<li>Supply for the rest of the year is expected to remain tight, even as the high production season approaches</li>
	<li>The continued replanting by the industry, combined with drought conditions and lower fertiliser application by small players in 2019, have put pressure on supply growth this year, exacerbated by high rainfall experienced in some parts in Sumatra and Kalimantan during 1H 2020</li>
	<li>We expect Crude palm oil (CPO) price to maintain its healthy level, although there may be periods of volatility</li>
	<li>GAR remains confident in the robust long-term supply and demand fundamentals for palm oil supported by its high versatility (including biodiesel) and low cost of production</li>
	<li>Indonesia growing biodiesel mixture mandate is a major catalyst to the industry</li>
</ul>
</body></html>






Of the 10 largest constituents in the FTSE ST Consumer Goods &amp; Services Index, the three largest food and/or beverage producers are Wilmar International, Thai Beverage and Golden Agri-Resources (GAR). 
	 
	
The trio have seen resilient operational performances, with relatively little impact from COVID-19 due to the essential nature of their products. The trio expect a stable performance for 2H 2020 and are moving ahead with their respective growth plans. 
	 
	Wilmar has led the three in YTD performances with a 7.4% total return, compared to a decline of 27.4% for Thai Beverage PCL and a decline of 37.2% for GAR. The three stocks have also seen a total of S$319 of net retail inflow this year. For a report on Food Producers and the YKA listing last month, click here. 

 

The FTSE ST Consumer Goods &amp; Services Index comprises the constituents in either the Consumer Goods or the Consumer Services Industries (ICB code 3000 or 5000) under the FTSE ST All-Share Index.  
Stocks are free-float weighted to ensure that only the investable opportunity set is included within the index, and are liquidity screened to ensure that the index is tradable. sdf  
Of the 10 largest constituents in the FTSE ST Consumer Goods &amp; Services Index, the three largest food and/or beverage manufacturers or producers are Wilmar International, Thai Beverage and Golden Agri-Resources (“GAR”). Note Dairy Farm International while also representing the Consumer Goods Industry is sub categorised as a retailer.  
For the factsheet on the FTSE ST Consumer Goods &amp; Services Index, click here. 
 

Highlights from Wilmar International’s recent announcements


The Group achieved core net profit of US$501.4 million in the quarter ended 30 September 2020, the highest 3Q core results since listing
	Together with non-operating gains from investment activities, net profit for the quarter increased by 20.0% to US$536.6 million
	All core segments continued to perform better than the previous year, in terms of both revenue and profit, on the back of strong demand for our food products and higher crushing activities as the African Swine Fever situation in China eased
	With the containment of the coronavirus in China and the rebound of the Chinese economy, coupled with greater emphasis by consumers on the importance of eating safer and healthier food, our range of quality food products will benefit
	We also expect volume to pick up in those Asian countries where lockdown measures have eased
	With the tight global vegetable oils situation, we expect palm prices to remain firm into early 2021, driving our Palm Oil Mill and Plantation results for the next quarter
	Processing margins for Tropical Oils and Oilseed crushing margins are also expected to be satisfactory for the rest of the year
	Our Sugar operations are expected to do well for this year, aided by the strong white sugar premium and the recent recovery in sugar prices
	Barring unforeseen circumstances, we expect results for the rest of the year to be good
	Our China subsidiary, Yihai Kerry Arawana Holdings Co Ltd (YKA), now a 89.99% subsidiary of Wilmar, was officially listed on the Shenzhen Stock Exchange ChiNext Board and commenced trading on 15 October 2020
	Net proceeds amounting to US$2.05 billion were received from the new YKA shares issued in connection with its IPO amounting to 10% of the enlarged share capital of YKA
	The Board is pleased to announce that a special dividend, of approximately 15% of the total IPO proceeds, will be declared in 2021 to commemorate the successful listing of YKA

 

Highlights from Thai Beverage’s recent announcements


ThaiBev unveiled “PASSION 2025” on 1 October 2020, which encapsulates its roadmap for the next five years
	This builds upon ThaiBev’s success in implementing initiatives in line with the five strategic imperatives – Growth, Diversity, Brands, Reach, and Professionalism – under its “Vision 2020”
	PASSION 2025 encompasses three domains:
	
First, the Group aims to build new capabilities by innovating to enhance its business and service model, its product offerings, and its channels, as well as by partnering stakeholders to grow with sustainability
		Second, the Group endeavors to strengthen its leadership positions in its core markets – Thailand, Vietnam, Myanmar, Singapore and Malaysia; this will be driven by an increased focus on supply chain, process innovation and digitalization, as well as on brand portfolio management
		Third, the Group seeks to unlock potential to enhance shareholder value by building partnerships, asset value creation, and developing a world class workforce
	

	Underpinned by robust fundamentals, ThaiBev is moving forward with its growth plans despite the current tough operating environment
	Having navigated various challenges over the past few years, its businesses have emerged stronger and have proven to be resilient amid the ongoing COVID-19 pandemic
	As the Group continues to manage its businesses responsibly, holistically safeguarding stakeholders’ interests, it believes it remains well-placed to deliver sustainable value to shareholders
	On 28 September, the executive committee of ThaiBev approved the appointment of five senior management staff and two senior vice-presidents to help the company realise its growth objectives
	These appointments, effective 1 October 2020, will prepare the Group for its next phase of growth, boosting its strategic focus in growth, diversity, brands, reach and professionalism
	Operations for the nine months ended 30 June 2020 proved to be stable despite impact of COVID-19 lockdowns
	The Group’s Spirits business proved resilient, with solid EBITDA growth of 4.9% YoY despite sales revenue being flat YoY
	It achieved a record high in market share of Thailand’s beer market since the Chang relaunch, with strong improvement in sales volumes in May and June

 

Highlights from Golden Agri-Resources’s recent announcements


On 6 October, GAR announced it is incorporating a wholly owned subsidiary in Sao Paolo, Brazil – Golden Agri-Resources Brasil Sociedade Limitada Unipessoal (GAR Brazil) – to help the Group enhance its sugar trading business
	Establishing a presence in Brazil, one of the biggest sugar exporters in the world, is a logical extension of its current sugar activities
	By taking advantage of GAR’s extensive palm-based distribution capabilities, GAR’s entry into sugar merchandising provides a low cost, asset-light, niche contribution to its business
	The Group can continue to offer excellent service to its existing palm oil customer base, offer an aligned sugar service to those palm customers where it is a related ingredient, and use its distribution capabilities efficiently to serve new and existing, sugar-only customers
	The global markets, especially in key consuming countries, have been recovering progressively as expected, while strong commitment was seen  from the Indonesia government on its B30 mandate implementation
	Supply for the rest of the year is expected to remain tight, even as the high production season approaches
	The continued replanting by the industry, combined with drought conditions and lower fertiliser application by small players in 2019, have put pressure on supply growth this year, exacerbated by high rainfall experienced in some parts in Sumatra and Kalimantan during 1H 2020
	We expect Crude palm oil (CPO) price to maintain its healthy level, although there may be periods of volatility
	GAR remains confident in the robust long-term supply and demand fundamentals for palm oil supported by its high versatility (including biodiesel) and low cost of production
	Indonesia growing biodiesel mixture mandate is a major catalyst to the industry




FTSE Consumer Index’s Three Largest F&B Producers

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 Insights</h3>
<p>In Indonesia<a href="https://www.smartkarma.com/insights/bank-mandiri-persero-bmri-ij-a-plethora-of-good-news" target="_blank" rel="noopener"> Bank Mandiri Persero (BMRI IJ) - A Plethora of Good News</a>,  Cross-ASEAN insight provider<a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener"> Angus Mackintosh</a> reports back a call with<a href="https://www.smartkarma.com/entities/bank-mandiri-persero-tbk-pt" target="_blank" rel="noopener"> Bank Mandiri Persero (BMRI IJ)</a> revealed a relatively positive message on a number of fronts, which came as a rare positive surprise. </p>
<p>In<a href="https://www.smartkarma.com/insights/bank-mandiri-persero-bmri-ij-the-unsung-hero-of-syariah" target="_blank" rel="noopener"> Bank Mandiri Persero (BMRI IJ) - The Unsung Hero of Syariah?</a> , Cross-ASEAN Insight provider<a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener"> Angus Mackintosh</a> sees potential positive catalysts in the merger of three State-owned Syariah banks. He believes that Mandiri Syariah,  given it has the largest Syariah business and generating an ROE in excess of 15%, will take the lead in the merged entity. </p>
<p>In<a href="https://www.smartkarma.com/insights/metrodata-electronic-mtdl-ij-a-rare-value-play-on-indonesia-s-digitalization" target="_blank" rel="noopener"> Metrodata Electronic (MTDL IJ) - A Rare Value Play on Indonesia's Digitalization</a>,<a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener"> Angus Mackintosh</a> highlights why<a href="https://www.smartkarma.com/entities/metrodata-electronic-pt" target="_blank" rel="noopener"> Metrodata Electronic (MTDL IJ)</a> looks undervalued, as it benefits not only from offline companies continuing to digitalize processes and infrastructure but also from the rise in e-commerce, digital payments, fintech, and gaming. </p>
<p>In<a href="https://www.smartkarma.com/insights/xl-axiata-excl-ij-enabling-and-converging-in-indonesia" target="_blank" rel="noopener"> XL Axiata (EXCL IJ) - Enabling and Converging in Indonesia</a>,<a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener"> Angus Mackintosh</a> revisits<a href="https://www.smartkarma.com/entities/xl-axiata-tbk-pt" target="_blank" rel="noopener"> XL Axiata (EXCL IJ),</a> one of the key enablers of the Indonesian digital economy, with around 90% of revenues coming from data and 75% of its subscriber base on 4G. Smartkarma hosted a Webinar with <a href="https://www.smartkarma.com/entities/xl-axiata-tbk-pt" target="_blank" data-smartkarma-citation="entities:15028:1" rel="noopener">XL Axiata (EXCL IJ)</a> last week, which revealed a positive long-term picture, despite some near term competitive headwinds. </p>
<p>In <a href="https://www.smartkarma.com/insights/sunpower-read-across-from-buyout-of-zheneng-jinjiang-fair-value-remains-at-1-sgd-63-upside" target="_blank" data-smartkarma-citation="insights:44133" rel="noopener">Sunpower: Read Across from Buyout of Zheneng JinJiang; Fair Value Remains at 1 SGD (63% Upside),</a> CrossASEAN Insight Provider provider <a href="https://www.smartkarma.com/profiles/nicolas-van-broekhoven-24a66c2d-bca4-4f5b-adda-c4e2bcc509f4" target="_blank" data-smartkarma-citation="accounts:1208" rel="noopener">Nicolas Van Broekhoven</a> revisits <a href="https://www.smartkarma.com/entities/sunpower-group-ltd" target="_blank" data-smartkarma-citation="entities:18395:1" rel="noopener">Sunpower Group (SPWG SP)</a> post a Smartakarma webinar with the company. </p>
<p>In Thailand<a href="https://www.smartkarma.com/insights/ipo-radar-nforce-secure-new-player-in-thai-cyber-security" target="_blank" rel="noopener"> IPO Radar: NForce Secure, New Player in Thai Cyber Security</a>, Thai Specialist<a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" rel="noopener"> Athaporn Arayasantiparb, CFA</a> takes a look at NForce Secure, New Player in Thai Cyber Security.  </p>
<p>In <a href="https://www.smartkarma.com/insights/wilmar-is-a-buy-after-yka-s-listing" target="_blank" data-smartkarma-citation="insights:44228" rel="noopener">Wilmar Is A Buy After YKA’s Listing,</a><a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" data-smartkarma-citation="accounts:840" rel="noopener">David Blennerhassett</a> revisits <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> following the successful listing of <a href="https://www.smartkarma.com/entities/yihai-kerry-arawana-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:29184:1" rel="noopener">Yihai Kerry Arawana Holdings Co Ltd (YKA CH).</a></p>
<p>In Singapore<a href="https://www.smartkarma.com/insights/sgx-sgx-sp-market-under-rates-its-growth-potential" target="_blank" rel="noopener"> SGX (SGX SP): Market Under-Rates Its Growth Potential</a>,<a href="https://www.smartkarma.com/profiles/victor-galliano" target="_blank" rel="noopener"> Victor Galliano</a> discusses why he feels<a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" rel="noopener"> SGX (SGX SP)</a> is undervalued. </p>
<p>In <a href="https://www.smartkarma.com/insights/business-dna-suksan-yasasin-of-chayo-group" target="_blank" data-smartkarma-citation="insights:44242" rel="noopener">Business DNA: Suksan Yasasin of Chayo Group,</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> conducts an interview with Suksan Yasasin, the CEO of Chayo Group. Business DNA is a chance to dig into the essential makeup of business leaders and their organizations. The focus is not on the short term but rather on understanding the driving forces of a business. </p>
<p>In <a href="https://www.smartkarma.com/insights/ori-expect-flat-3q20-earnings-but-strong-recovery-in-4q20" target="_blank" data-smartkarma-citation="insights:44163" rel="noopener">ORI: Expect Flat 3Q20 Earnings but Strong Recovery in 4Q20,</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/origin-property-pcl" target="_blank" data-smartkarma-citation="entities:26762:1" rel="noopener">Origin Property (ORI TB)</a> ahead of the company's earnings. </p>
<p>In <a href="https://www.smartkarma.com/insights/com7-upgrade-super-cycle-for-iphone-users" target="_blank" data-smartkarma-citation="insights:44208" rel="noopener">COM7: Upgrade Super Cycle for iPhone Users,</a> <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> revisits this electronics distributor in light of the announcement of the launch of the new iPhone 12. </p>
<h3>Sector and Thematic Insights</h3>
<p>In <a href="https://www.smartkarma.com/insights/snippets-45-lobster-alliance-cp-all-goes-to-laos" target="_blank" data-smartkarma-citation="insights:42866" rel="noopener">Snippets #45: Lobster Alliance, CP All Goes to Laos,</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> highlights five developments over the past week that may impact Thai equities.</p>
<p>In <a href="https://www.smartkarma.com/insights/sti-index-rebalance-kdcreit-included-flt-misses-out" target="_blank" data-smartkarma-citation="insights:44178" rel="noopener">STI Index Rebalance: KDCREIT Included, FLT Misses Out,</a> <a href="https://www.smartkarma.com/profiles/brian-freitas" target="_blank" data-smartkarma-citation="accounts:4091" rel="noopener">Brian Freitas</a> comments on the recent FTSE STI Index rebalance.  </p>
<p>In<a href="https://www.smartkarma.com/insights/msci-nov20-index-rebalance-preview-asean-em-edition" target="_blank" rel="noopener"> MSCI Nov20 Index Rebalance Preview - ASEAN EM Edition</a>,<a href="https://www.smartkarma.com/profiles/brian-freitas" target="_blank" rel="noopener"> Brian Freitas</a> looks at the upcoming MSCI ASEAN EM scheduled rebalancing. </p>
<h3>Credit Insights</h3>
<p>In <a href="https://www.smartkarma.com/insights/kasikornbank-s-inaugural-at1-underweight-on-franchise-challenges-and-valuation" target="_blank" data-smartkarma-citation="insights:44176" rel="noopener">Kasikornbank’s Inaugural AT1 – Underweight on Franchise Challenges and Valuation,</a> credit specialist <a href="https://www.smartkarma.com/profiles/hank-calenti-cfa" target="_blank" data-smartkarma-citation="accounts:5194" rel="noopener">Hank Calenti, CFA</a> comments on <a href="https://www.smartkarma.com/entities/kasikornbank-pcl" target="_blank" data-smartkarma-citation="entities:293:1" rel="noopener">Kasikornbank PCL (KBANK TB)</a>'s inaugural AT1 bond. He suggests to Underweight <a href="https://www.smartkarma.com/entities/kasikornbank-pcl" target="_blank" data-smartkarma-citation="entities:293:1" rel="noopener">Kasikornbank's (KBANK)</a> inaugural Additional Tier 1 (AT1) bond on franchise challenges and valuation. </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.
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-Up Insights
In Indonesia Bank Mandiri Persero (BMRI IJ) - A Plethora of Good News,  Cross-ASEAN insight provider Angus Mackintosh reports back a call with Bank Mandiri Persero (BMRI IJ) revealed a relatively positive message on a number of fronts, which came as a rare positive surprise. 
In Bank Mandiri Persero (BMRI IJ) - The Unsung Hero of Syariah? , Cross-ASEAN Insight provider Angus Mackintosh sees potential positive catalysts in the merger of three State-owned Syariah banks. He believes that Mandiri Syariah,  given it has the largest Syariah business and generating an ROE in excess of 15%, will take the lead in the merged entity. 
In Metrodata Electronic (MTDL IJ) - A Rare Value Play on Indonesia's Digitalization, Angus Mackintosh highlights why Metrodata Electronic (MTDL IJ) looks undervalued, as it benefits not only from offline companies continuing to digitalize processes and infrastructure but also from the rise in e-commerce, digital payments, fintech, and gaming. 
In XL Axiata (EXCL IJ) - Enabling and Converging in Indonesia, Angus Mackintosh revisits XL Axiata (EXCL IJ), one of the key enablers of the Indonesian digital economy, with around 90% of revenues coming from data and 75% of its subscriber base on 4G. Smartkarma hosted a Webinar with XL Axiata (EXCL IJ) last week, which revealed a positive long-term picture, despite some near term competitive headwinds. 
In Sunpower: Read Across from Buyout of Zheneng JinJiang; Fair Value Remains at 1 SGD (63% Upside), CrossASEAN Insight Provider provider Nicolas Van Broekhoven revisits Sunpower Group (SPWG SP) post a Smartakarma webinar with the company. 
In Thailand IPO Radar: NForce Secure, New Player in Thai Cyber Security, Thai Specialist Athaporn Arayasantiparb, CFA takes a look at NForce Secure, New Player in Thai Cyber Security.  
In Wilmar Is A Buy After YKA’s Listing,David Blennerhassett revisits Wilmar International (WIL SP) following the successful listing of Yihai Kerry Arawana Holdings Co Ltd (YKA CH).
In Singapore SGX (SGX SP): Market Under-Rates Its Growth Potential, Victor Galliano discusses why he feels SGX (SGX SP) is undervalued. 
In Business DNA: Suksan Yasasin of Chayo Group,Dr. Andrew Stotz, CFA conducts an interview with Suksan Yasasin, the CEO of Chayo Group. Business DNA is a chance to dig into the essential makeup of business leaders and their organizations. The focus is not on the short term but rather on understanding the driving forces of a business. 
In ORI: Expect Flat 3Q20 Earnings but Strong Recovery in 4Q20, our friends at Country Group revisit Origin Property (ORI TB) ahead of the company's earnings. 
In COM7: Upgrade Super Cycle for iPhone Users, Country Group revisits this electronics distributor in light of the announcement of the launch of the new iPhone 12. 
Sector and Thematic Insights
In Snippets #45: Lobster Alliance, CP All Goes to Laos, our Thai guru Athaporn Arayasantiparb, CFA highlights five developments over the past week that may impact Thai equities.
In STI Index Rebalance: KDCREIT Included, FLT Misses Out, Brian Freitas comments on the recent FTSE STI Index rebalance.  
In MSCI Nov20 Index Rebalance Preview - ASEAN EM Edition, Brian Freitas looks at the upcoming MSCI ASEAN EM scheduled rebalancing. 
Credit Insights
In Kasikornbank’s Inaugural AT1 – Underweight on Franchise Challenges and Valuation, credit specialist Hank Calenti, CFA comments on Kasikornbank PCL (KBANK TB)'s inaugural AT1 bond. He suggests to Underweight Kasikornbank's (KBANK) inaugural Additional Tier 1 (AT1) bond on franchise challenges and valuation. 

The NEW Week that Was in ASEAN@Smartkarma - Syariah Banking, XL Axiata, and Telkom's Tower Spinoff

Yoma Strategic Holdings / Equity Bottom-Up

Singapore Banks Attract Net Insti Inflows in Early 4Q20 

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: Evergrande, Link Admin, NTT Docomo, Melifecare, Wipro, Wilmar, Huya/DouYu

<div>
<p>Yesterday, <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 <a href="https://www.smartkarma.com/entities/yihai-kerry-arawana-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:29184:1" rel="noopener">Yihai Kerry Arawana Holdings Co Ltd (YKA CH)</a> (YKA) commenced trading on the Shenzhen Stock Exchange (ChiNext Board). Priced at RMB25.70/share, shares closed at RMB56/share. Shares are currently changing hands at RMB49.  That backs out a trailing PER of ~59x.</p>
<p>And Wilmar's reaction yesterday? Down 6.4% in what appears to be a "sell the news" trade.</p>
<p>I see Wilmar's discount to NAV at 55%. Shares haven't retested near-term highs since <a href="https://www.smartkarma.com/entities/archer-daniels-midland-co" target="_blank" data-smartkarma-citation="entities:14746:1" rel="noopener">Archer Daniels Midland Co (ADM US)</a>'s placement in August. But since that placement, uncertainty over YKA's IPO has been removed. Wilmar is cheap here.</p>
<p>As always, more below the fold.</p>
</div>
<hr>
<div>
<p><em>For some background history on YKA's IPO, please refer to past insights below:</em></p>
</div>
<div>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 124.782px;">
<h3>Date </h3>
</td>
<td style="width: 578.75px;">
<h3>Insight</h3>
</td>
</tr>
<tr>
<td style="width: 124.782px;">17-Sep-20</td>
<td style="width: 578.75px;"><a href="https://skr.ma/U4wbi" target="_blank" rel="noopener">Wilmar: China Ops IPO One Step Closer</a></td>
</tr>
<tr>
<td style="width: 124.782px;">29-Sep-20</td>
<td style="width: 578.75px;"><a href="https://skr.ma/xBrVA" target="_blank" rel="noopener">Wilmar: YKA's Pricing &amp; Cheap Rump Stake</a></td>
</tr>
</tbody>
</table>
</div>
<div></div>
<div>
<p></p>
</div>


Yesterday, Wilmar International (WIL SP)'s Yihai Kerry Arawana Holdings Co Ltd (YKA CH) (YKA) commenced trading on the Shenzhen Stock Exchange (ChiNext Board). Priced at RMB25.70/share, shares closed at RMB56/share. Shares are currently changing hands at RMB49.  That backs out a trailing PER of ~59x.
And Wilmar's reaction yesterday? Down 6.4% in what appears to be a "sell the news" trade.
I see Wilmar's discount to NAV at 55%. Shares haven't retested near-term highs since Archer Daniels Midland Co (ADM US)'s placement in August. But since that placement, uncertainty over YKA's IPO has been removed. Wilmar is cheap here.
As always, more below the fold.



For some background history on YKA's IPO, please refer to past insights below:






Date 


Insight



17-Sep-20
Wilmar: China Ops IPO One Step Closer


29-Sep-20
Wilmar: YKA's Pricing &amp; Cheap Rump Stake









Singapore

Wilmar International Ltd. is an agribusiness company. The Company is involved in oil palm cultivation, edible oils refining, oilseeds crushing, consumer pack edible oils processing and merchandising, specialty fats, oleochemicals and biodiesel manufacturing, and grains processing and merchandising. Wilmar also manufactures and distributes fertilizers and owns a fleet of vessels.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Wilmar International (WIL SP)

FTSE Consumer Index’s Three Largest F&B Producers

Of the 10 largest constituents in the FTSE ST Consumer Goods & Services Index, the three largest food and/or beverage producers are Wilmar...

Singapore Exchange Ltd (SGX)

The NEW Week that Was in ASEAN@Smartkarma - Syariah Banking, XL Axiata, and Telkom's Tower Spinoff

The Week that Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights from across South East...

Angus Mackintosh

Singapore Banks Attract Net Insti Inflows in Early 4Q20

Recent weeks have seen more evidence that the Singapore economy is sequentially and gradually recovering from record that lows in economic...

Singapore Exchange Ltd (SGX)

Last Week in Event SPACE: Evergrande, Link Admin, NTT Docomo, Melifecare, Wipro, Wilmar, Huya/DouYu

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Wilmar Is A Buy After YKA’s Listing

YKA shares jump 118% on its ChiNext debut - yet Wilmar sheds 6.4%. At a 55% discount to NAV, Wilmar is a buy with a view to retesting the pre-ADM...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)