Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/my-food-bag-group-ltd" target="_blank" data-smartkarma-citation="entities:32999:1" rel="noopener">My Food Bag Group Ltd</a>, one of the leading meal-kit players in New Zealand appears well-positioned to ride segment growth. It has forayed into online retail of select grocery too.</li>
<li>COVID-Led restrictions and consequent shifts in lifestyle including work-from-home and home-based learning have been strong tailwinds for sector growth across developed markets.</li>
<li>The company trades at relatively muted earnings multiples vis-a-vis global peers, despite growth in profit guidance in FY22 and the company's track record of profitability.</li>
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My Food Bag Group Ltd, one of the leading meal-kit players in New Zealand appears well-positioned to ride segment growth. It has forayed into online retail of select grocery too.
COVID-Led restrictions and consequent shifts in lifestyle including work-from-home and home-based learning have been strong tailwinds for sector growth across developed markets.
The company trades at relatively muted earnings multiples vis-a-vis global peers, despite growth in profit guidance in FY22 and the company's track record of profitability.


My Food Bag Group (MFB NZ): Meal Kits and More

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p>Back on 13th July this year, Australia-based ready-made meal delivery company <a href="https://www.smartkarma.com/entities/youfoodz-holdings-ltd" target="_blank" data-smartkarma-citation="entities:33759:1" rel="noopener">Youfoodz Holdings (YFZ AU)</a> entered into a Scheme Implementation Deed with multinational meal-kit delivery company <a href="https://www.smartkarma.com/entities/hellofresh-ag" target="_blank" data-smartkarma-citation="entities:26000:1" rel="noopener">HelloFresh AG (HFG GR)</a>. This was discussed in <a href="https://www.smartkarma.com/profiles/janaghan-jeyakumar-cfa" target="_blank" data-smartkarma-citation="accounts:3173" rel="noopener">Janaghan Jeyakumar, CFA</a>'s insight: <em><a href="https://skr.ma/FgACa" target="_blank" rel="noopener">Youfoodz (YFZ AU): HelloFresh's Lowball Takeover Offer Difficult to Block But Not UnBumbable</a></em>. </p>
<p><em><strong>The Offer Price of A$0.93/share was 38% lower than the IPO Price of A$1.50/share in December 2020</strong></em>. This was a friendly all-cash Deal. Or as Janaghan put it, a Rescue Offer. Shareholders <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02433229-3A577805?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">approved</a> the Offer at the Scheme Meeting on the 8 October. </p>
<p>This brings us to online shopping rewards platform <a href="https://www.smartkarma.com/entities/cashrewards-ltd" target="_blank" data-smartkarma-citation="entities:34205:1" rel="noopener">Cashrewards (CRW AU)</a>, which has <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02439381-2A1332732?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> it has entered into a Bid Implementation Deed with ANZ Bank’s innovation and investment arm 1835i Group.</p>
<p>The Offer price of A$1.135/share is a 19.5% premium to last close, but a 35% discount to its IPO price last December.</p>
<p>Nevertheless, the Offer has unanimous board support, and Andrew Clarke, Alium Capital &amp; M&amp;S Skyleisure, with 39.4%, will tender into the Offer, in the absence of a superior proposal. 1835i currently holds 19%.</p>
<p>This looks done. It may jog a competing Offer, but ANZ has an effective lock on the company.</p>
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Back on 13th July this year, Australia-based ready-made meal delivery company Youfoodz Holdings (YFZ AU) entered into a Scheme Implementation Deed with multinational meal-kit delivery company HelloFresh AG (HFG GR). This was discussed in Janaghan Jeyakumar, CFA's insight: Youfoodz (YFZ AU): HelloFresh's Lowball Takeover Offer Difficult to Block But Not UnBumbable. 
The Offer Price of A$0.93/share was 38% lower than the IPO Price of A$1.50/share in December 2020. This was a friendly all-cash Deal. Or as Janaghan put it, a Rescue Offer. Shareholders approved the Offer at the Scheme Meeting on the 8 October. 
This brings us to online shopping rewards platform Cashrewards (CRW AU), which has announced it has entered into a Bid Implementation Deed with ANZ Bank’s innovation and investment arm 1835i Group.
The Offer price of A$1.135/share is a 19.5% premium to last close, but a 35% discount to its IPO price last December.
Nevertheless, the Offer has unanimous board support, and Andrew Clarke, Alium Capital &amp; M&amp;S Skyleisure, with 39.4%, will tender into the Offer, in the absence of a superior proposal. 1835i currently holds 19%.
This looks done. It may jog a competing Offer, but ANZ has an effective lock on the company.


Cashrewards (CRW AU)'s Offer Is 34% Below Last December's IPO

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

<p>On 13th July 2021, Australia-based ready-made meal delivery company <a href="https://www.smartkarma.com/entities/youfoodz-holdings-ltd" target="_blank" data-smartkarma-citation="entities:33759:1" rel="noopener">Youfoodz Holdings (YFZ AU)</a> announced they had entered into a Scheme Implementation Deed with multinational meal-kit delivery company <a href="https://www.smartkarma.com/entities/hellofresh-ag" target="_blank" data-smartkarma-citation="entities:26000:1" rel="noopener">HelloFresh AG (HFG GR)</a> which will see them get acquired in an all-cash transaction that valued the company at a market cap of A$125mn. </p><p>The Offer Price is A$0.93/share in cash. The transaction will be conditional on the receipt of regulatory approvals and Target shareholder approval.</p><p>The Deal is expected to be completed in October/November 2021. </p><div><p><em>More below the fold. </em></p></div><hr><div><div><div class="content-remarks"><p>For more information about M&amp;A rules, regulations, and practices in Australia, please refer to <a href="https://www.smartkarma.com/insights/quiddity-australia-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:30118" rel="noopener">Quiddity Australia M&amp;A Guide 2019</a> and <a href="https://www.smartkarma.com/insights/quiddity-m-a-australia-foreign-investment-reforms" target="_blank" data-smartkarma-citation="insights:40210" rel="noopener">Quiddity M&amp;A: Australia Foreign Investment Reforms</a> </p></div></div></div>

On 13th July 2021, Australia-based ready-made meal delivery company Youfoodz Holdings (YFZ AU) announced they had entered into a Scheme Implementation Deed with multinational meal-kit delivery company HelloFresh AG (HFG GR) which will see them get acquired in an all-cash transaction that valued the company at a market cap of A$125mn. The Offer Price is A$0.93/share in cash. The transaction will be conditional on the receipt of regulatory approvals and Target shareholder approval.The Deal is expected to be completed in October/November 2021. More below the fold. For more information about M&amp;A rules, regulations, and practices in Australia, please refer to Quiddity Australia M&amp;A Guide 2019 and Quiddity M&amp;A: Australia Foreign Investment Reforms 

Youfoodz (YFZ AU): HelloFresh's Lowball Takeover Offer Difficult to Block But Not UnBumbable

Australia

Youfoodz Pty Ltd manufactures packaged food products. The Company offers fresh ready-made meals, snacks, juices, and other food products. Youfoodz serves customers in Australia.

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Youfoodz Holdings (YFZ AU)

My Food Bag Group (MFB NZ): Meal Kits and More

Leading NZ-based meal-kit player now expands to online retail of select grocery. Trades at relatively muted valuations vs peers despite a strong...

Devi Subhakesan

Cashrewards (CRW AU)'s Offer Is 34% Below Last December's IPO

You have major shareholders and founder support. 1835i has effective control over the company. Trading at a gross spread to terms of 3.2%....

David Blennerhassett

Youfoodz (YFZ AU): HelloFresh's Lowball Takeover Offer Difficult to Block But Not UnBumbable

Multi-national mealkit provider giant HelloFresh bids for Aussie local YouFoodz. May be Rescue Bid but it's well below what they have recently...

Janaghan Jeyakumar, CFA

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