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

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<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>Macro Insights</h3><p>In<a href="https://www.smartkarma.com/insights/indonesia-the-recovery-gains-momentum-in-april" target="_blank" rel="noopener"> Indonesia: The Recovery Gains Momentum in April</a>, economist<a href="https://www.smartkarma.com/profiles/nicholas-chia" target="_blank" rel="noopener"> Nicholas Chia</a> discusses Indonesia's economic outlook after the country released its 1Q2021 GDP. </p><p>In<a href="https://www.smartkarma.com/insights/singapore-trade-led-upturn-to-accelerate" target="_blank" rel="noopener"> Singapore: Trade-Led Upturn to Accelerate</a>, economist<a href="https://www.smartkarma.com/profiles/nigel-chiang" target="_blank" rel="noopener"> Nigel Chiang</a> discusses Singapore's economic outlook having revised his GDP growth forecast for 2021 to +7.9%, up from +6.7% previously. </p><h3>Equity Bottom Up</h3><p>In <a href="https://www.smartkarma.com/insights/mitra-adiperkasa-mapi-ij-unified-in-retail" target="_blank" data-smartkarma-citation="insights:51356" rel="noopener">Mitra Adiperkasa (MAPI IJ) - Unified in Retail</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> discusses the company's 1Q2021 results. </p><p>In<a href="https://www.smartkarma.com/insights/link-net-link-ij-ahead-on-poles-and-subscribers" target="_blank" rel="noopener"> Link Net (LINK IJ) - Ahead on Poles and Subscribers</a>, CrossASEAN insight provider<a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener"> Angus Mackintosh</a> returns to look at<a href="https://www.smartkarma.com/entities/link-net-tbk-pt" target="_blank" rel="noopener"> Link Net (LINK IJ)</a> after it released a positive set of FY2020 results. </p><p> In<a href="https://www.smartkarma.com/insights/monde-nissin-ipo-might-not-be-a-high-flyer-but-worth-the-ride-quorn-tastes-good" target="_blank" rel="noopener"> Monde Nissin IPO - Might Not Be a High Flyer but Worth the Ride, Quorn Tastes Good</a>,<a href="https://www.smartkarma.com/profiles/sumeet-singh" target="_blank" rel="noopener"> Sumeet Singh</a> reports back on<a href="https://www.smartkarma.com/entities/monde-nissin-corp" target="_blank" rel="noopener"> Monde Nissin Corp (0191881D PM)</a> 's plan for the IPO and discusses its final pricing and other dynamics.  </p><p>In<a href="https://www.smartkarma.com/insights/stubworld-buybacks-resume-into-inexpensive-wilmar" target="_blank" rel="noopener"> StubWorld: Buybacks Resume Into Inexpensive Wilmar</a>,<a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" rel="noopener"> David Blennerhassett</a> discusses<a href="https://www.smartkarma.com/entities/wilmar-international-ltd" target="_blank" rel="noopener"> Wilmar International's (WIL SP)</a>'s plan to do a buyback. </p><p>In<a href="https://www.smartkarma.com/insights/sprc-on-track-of-recovery-from-2q21-onwards" target="_blank" rel="noopener"> SPRC: On Track of Recovery from 2Q21 Onwards</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> circles back to<a href="https://www.smartkarma.com/entities/star-petroleum-refining-pcl" target="_blank" rel="noopener"> Star Petroleum Refining (SPRC TB)</a> post its analyst meeting that came out with a positive tone. </p><p>In<a href="https://www.smartkarma.com/insights/pttgc-strong-spread-drives-1q21-earnings-and-continue-in-2q21" target="_blank" rel="noopener"> PTTGC: Strong Spread Drives 1Q21 Earnings and Continue in 2Q21</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> reiterates their BUY rating with the new target price at THB80.0 (from THB75.0) after<a href="https://www.smartkarma.com/entities/ptt-global-chemical-pcl" target="_blank" rel="noopener"> PTT Global Chemical (PTTGC TB)</a> released its 1Q21 results.</p><p>In<a href="https://www.smartkarma.com/insights/kce-buy-outlook-ahead" target="_blank" rel="noopener"> KCE: Buy Outlook Ahead</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> returns to look at <a href="https://www.smartkarma.com/entities/kce-electronics-pcl" target="_blank" rel="noopener">KCE Electronics PCL (KCE TB)</a> after it released its 1Q2021 results.</p><p>In<a href="https://www.smartkarma.com/insights/dohome-trading-on-high-valuation-zone-6ef7a465-70f5-4a87-ac17-e393474e0c6d" target="_blank" rel="noopener"> DOHOME: Trading on High Valuation Zone</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> maintains a HOLD rating for<a href="https://www.smartkarma.com/entities/dohome-pcl" target="_blank" rel="noopener"> Dohome PCL (DOHOME TB)</a> and expects the company's 2Q2021 earnings to grow YoY driven by strong revenue growth of 25%, along with expanded margins.</p><p>In<a href="https://www.smartkarma.com/insights/asian-bright-outlook-in-2q21-in-all-businesses" target="_blank" rel="noopener"> ASIAN: Bright Outlook in 2Q21 in All Businesses</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> circles back to<a href="https://www.smartkarma.com/entities/asian-sea-corp-pcl" target="_blank" rel="noopener"> Asian Seafoods Coldstorage (ASIAN TB)</a> after its analyst meeting that came out with a positive tome and expects demand for pet food and value-added frozen products to remain strong in 2Q2021. </p><p><a href="https://www.smartkarma.com/insights/tkn-1q21-earnings-decreased-yoy-but-recovered-qoq" target="_blank" rel="noopener">TKN: 1Q21 Earnings Decreased YoY but Recovered QoQ</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> downgrades their recommendation on <a href="https://www.smartkarma.com/entities/taokaenoi-food-marketing-p" target="_blank" data-smartkarma-citation="entities:24015:1" rel="noopener">Taokaenoi Food &amp; Marketing (TKN TB)</a> from BUY to HOLD rating as they expect a slow recovery outlook due to the lingering pandemic. </p><p>In<a href="https://www.smartkarma.com/insights/rjh-resilient-performance-amidst-covid-situation" target="_blank" rel="noopener"> RJH: Resilient Performance Amidst Covid Situation</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> maintains BUY rating after<a href="https://www.smartkarma.com/entities/rajthanee-hospital" target="_blank" rel="noopener"> Rajthanee Hospital (RJH TB)</a> after it released a solid set 1Q2021 results, mainly driven by government health schemes, such as the Social Security program. The government segment contributes around 42% of the company's total sales. </p><h3>Credit Insights</h3><p>In<a href="https://www.smartkarma.com/insights/lippo-karawaci-earnings-flash-fy-2020-results-lucror-analytics" target="_blank" rel="noopener"> Lippo Karawaci - Earnings Flash - FY 2020 Results - Lucror Analytics</a>, credit specialist<a href="https://www.smartkarma.com/profiles/trung-nguyen" target="_blank" rel="noopener"> Trung Nguyen</a> provides a view on<a href="https://www.smartkarma.com/entities/lippo-karawaci-tbk-pt" target="_blank" rel="noopener"> Lippo Karawaci (LPKR IJ)</a> after it released its FY2020 results, which pint toward much better performance in 2021, as the impact of the pandemic slowly subsides. <a href="https://www.smartkarma.com/entities/lippo-karawaci-tbk-pt" target="_blank" rel="noopener"> Lippo Karawaci (LPKR IJ)</a> continues to benefit from the growing demand for affordable landed housing in suburban areas. </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. 
Macro InsightsIn Indonesia: The Recovery Gains Momentum in April, economist Nicholas Chia discusses Indonesia's economic outlook after the country released its 1Q2021 GDP. In Singapore: Trade-Led Upturn to Accelerate, economist Nigel Chiang discusses Singapore's economic outlook having revised his GDP growth forecast for 2021 to +7.9%, up from +6.7% previously. Equity Bottom UpIn Mitra Adiperkasa (MAPI IJ) - Unified in Retail,  CrossASEAN Insight Provider Angus Mackintosh discusses the company's 1Q2021 results. In Link Net (LINK IJ) - Ahead on Poles and Subscribers, CrossASEAN insight provider Angus Mackintosh returns to look at Link Net (LINK IJ) after it released a positive set of FY2020 results.  In Monde Nissin IPO - Might Not Be a High Flyer but Worth the Ride, Quorn Tastes Good, Sumeet Singh reports back on Monde Nissin Corp (0191881D PM) 's plan for the IPO and discusses its final pricing and other dynamics.  In StubWorld: Buybacks Resume Into Inexpensive Wilmar, David Blennerhassett discusses Wilmar International's (WIL SP)'s plan to do a buyback. In SPRC: On Track of Recovery from 2Q21 Onwards, Country Group circles back to Star Petroleum Refining (SPRC TB) post its analyst meeting that came out with a positive tone. In PTTGC: Strong Spread Drives 1Q21 Earnings and Continue in 2Q21, Country Group reiterates their BUY rating with the new target price at THB80.0 (from THB75.0) after PTT Global Chemical (PTTGC TB) released its 1Q21 results.In KCE: Buy Outlook Ahead, Country Group returns to look at KCE Electronics PCL (KCE TB) after it released its 1Q2021 results.In DOHOME: Trading on High Valuation Zone, Country Group maintains a HOLD rating for Dohome PCL (DOHOME TB) and expects the company's 2Q2021 earnings to grow YoY driven by strong revenue growth of 25%, along with expanded margins.In ASIAN: Bright Outlook in 2Q21 in All Businesses, Country Group circles back to Asian Seafoods Coldstorage (ASIAN TB) after its analyst meeting that came out with a positive tome and expects demand for pet food and value-added frozen products to remain strong in 2Q2021. TKN: 1Q21 Earnings Decreased YoY but Recovered QoQ, Country Group downgrades their recommendation on Taokaenoi Food &amp; Marketing (TKN TB) from BUY to HOLD rating as they expect a slow recovery outlook due to the lingering pandemic. In RJH: Resilient Performance Amidst Covid Situation, Country Group maintains BUY rating after Rajthanee Hospital (RJH TB) after it released a solid set 1Q2021 results, mainly driven by government health schemes, such as the Social Security program. The government segment contributes around 42% of the company's total sales. Credit InsightsIn Lippo Karawaci - Earnings Flash - FY 2020 Results - Lucror Analytics, credit specialist Trung Nguyen provides a view on Lippo Karawaci (LPKR IJ) after it released its FY2020 results, which pint toward much better performance in 2021, as the impact of the pandemic slowly subsides.  Lippo Karawaci (LPKR IJ) continues to benefit from the growing demand for affordable landed housing in suburban areas. 

The Week That Was in ASEAN@Smartkarma - Grab's Euphoria, MAPI, and Monde Nissin

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p>This week in StubWorld ...</p>
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<p>I see <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 discount to NAV at 63%, around the level when <a href="https://www.smartkarma.com/entities/yihai-kerry-arawana-holdings-co-ltd-8e397b7b-30b8-4284-afc1-e1dc799b2e5c" target="_blank" data-smartkarma-citation="entities:33230:1" rel="noopener">Yihai Kerry Arawana Holdings (300999 CH)</a> IPO'ed last October, and closing in on the <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 levels last August. Wilmar is cheap here.</p>
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<p>Preceding my comments on Wilmar are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
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<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
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This week in StubWorld ...



I see Wilmar International (WIL SP)'s discount to NAV at 63%, around the level when Yihai Kerry Arawana Holdings (300999 CH) IPO'ed last October, and closing in on the Archer Daniels Midland Co (ADM US)'s placement levels last August. Wilmar is cheap here.



Preceding my comments on Wilmar are the weekly setup/unwind tables for Asia-Pacific Holdcos.



These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


StubWorld: Buybacks Resume Into Inexpensive Wilmar

China

Inner Mongolia Yili Industrial Group Co., Ltd. produces milk, powdered milk, ice cream, and other dairy products.  The Company also produces frozen food and noodles.

Inner Mongolia Yili Industrial Group (A) (600887 CH)

Tongwei Co., Ltd. produces and markets aquatic and animal feeds. The Company also sells animal medicines.

Foshan Haitian Flavouring & Food Company Ltd. manufactures food seasonings. The Company develops, produces, and distributes condiments including soy sauce, oyster sauce, vinegar, flavoring sauce, chicken stock, monosodium glutamate, and oil.

Foshan Haitian Flavouring & Food (603288 CH)

Henan Shuanghui Investment & Development Co., Ltd. is an investment holding company.  Through its subsidiaries, the Company manufactures meat products and frozen food, provides processing and printing services, as well as operates in commercial trading.

Henan Shuanghui Investment & Development (000895 CH)

Wens Foodstuff Group Co., Ltd. produces meat products. The Company produces, processes, and sells chicken, duck, pork, and other related products. Guangdong Wens Foodstuffs Group also manufactures and markets cooked meat and frozen meat.

Wens Foodstuff Group Co., Ltd. (300498 CH)

China Mengniu Dairy Company Limited, through its subsidiaries, manufactures and distributes quality dairy products in China. The principal products are liquid milk products, ice cream, and other dairy products, such as milk powder. The Company markets its products under its primary MENGNIU core brand.

Want Want China Holdings Limited manufactures and trades rice crackers, snack food, beverages, and packing materials.  The Company also manufactures wheat, flour, and raw materials for the manufacture of snack foods.  Most of the company's production facilities are located in China and Taiwan.

Muyuan Foodstuff Company Limited breeds and sells boars and commodity pigs. The Company's main products include boars, and commodity pigs.

Tingyi (Cayman Islands) Holding Corporation, through its subsidiaries, manufactures and sells instant noodles, baked goods, and beverages in China.

Guangdong Haid Group Company Ltd. manufactures and markets animal feeds.  The Company imports distiller's dried grains with solubles for ingredient in fish and animal feeds.

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.

Tata Consumer Products Limited produces food and beverage products. The Company manufactures, sells, and exports tea, coffee, salt, oil, pulses, spices, and food products. Tata Consumer Products serves customers worldwide.

Campbell Soup Company, with its subsidiaries, manufactures and markets branded convenience food products.  The Company's core divisions include soups and sauces, biscuits and confectionery, and foodservice.  Campbell's distributes its products worldwide.

Uni-President Enterprises Corp. manufactures, processes, and markets instant noodles, dairy products, frozen foods, soft drinks, soy sauces, canned pickles, meat products, animal feeds, aquatic feeds, edible oils, bread, cakes, and desserts.  The Company also operates vending machines and food distribution centers in Taiwan.

Ajinomoto Co., Inc. produces and sells a variety of food products, including seasonings, edible oils, processed foods, beverages, and dairy products.  The Company also develops and manufactures pharmaceuticals, amino acids, and specialty chemicals.

The JM Smucker Company manufactures and markets food products on a worldwide basis. The Company's principal products include peanut butter, shortening and oils, fruit spreads, canned milk, baking mixes and ready-to-spread frostings, flour and baking ingredients, juices and beverages, frozen sandwiches, dessert toppings, syrups, pickles and condiments, and potato side dishes.

KIKKOMAN CORPORATION produces and markets soy sauce, alcoholic beverages, and other food products.  The Company has marketing rights for Del Monte brand products outside of the United States.  Kikkoman also operates restaurants in Japan and other countries.

Bunge Limited is a global agribusiness and food company. The Company buys, sells, stores, transports and processes oilseeds and grains to make protein meal for animal feed and edible oil products for commercial customers and consumers. Bunge also produces sugar and ethanol from sugarcane, mills wheat and corn, and sells fertilizer.

Hormel Foods Corporation manufactures and markets consumer-branded meat and food products.  The Company processes meat and poultry products and produces a variety of prepared foods.  Hormel markets its products around the world under a variety of branded names.

McCormick & Company, Inc. manufactures, markets, and distributes flavor products (including spices, herbs, extracts, seasonings and flavorings) and other specialty food products to the food industry. The Company sells to retail stores, food manufacturers, and food service businesses.

Yihai Kerry Arawana Holdings Co., Ltd wholesales and distributes food products. The Company provides kitchen foods, feed raw materials, oil technology products, and other products. Yihai Kerry Arawana Holdings also operates investment businesses.

Yihai Kerry Arawana Holdings C (300999 CH)

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Yihai Kerry Arawana Holdings C (300999 CH)

The Week That Was in ASEAN@Smartkarma - Grab's Euphoria, MAPI, and Monde Nissin

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

Angus Mackintosh

StubWorld: Buybacks Resume Into Inexpensive Wilmar

Wilmar looks inexpensive here, even for a cross-border, possibly-difficult-to-short subsidiary, Holdco situation. Potential near-term catalysts...

David Blennerhassett

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