Singapore

• Back on the 16 November, Halcyon Agri (HACL SP) announced Sinochem, holding 65.2% of shares out, had entered into an SPA to sell 36% to China Hainan Rubber (601118 CH).
• Upon completion of the SPA, Hainan Rubber will make an MGO, conditional on a 50% tendering acceptance.  Sinochem has provided an undertaking not to tender its remaining 29.2% stake. 
• Halcyon has now announced SASAC has given the green light for the SPA. Outstanding conditions include MoC and NDRC. Those approvals should fall into place shortly.

• Alterpacks, a Singapore-based provider of biodegradable food containers, has closed its US$1 million pre-seed funding round.
• The company provides new economic value to spent grains, a by-product of the food manufacturing process, after producing malted drinks, such as milo or beer.

• Alterpacks is also creating bio-pellets to replace petroleum-based resins used in standard manufacturing machines today.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Fosun International
• Hopson Development
• Lippo Karawaci
• Lippo Malls Indonesia Retail Trust

• The SPA for China Hainan Rubber Industry (601118 CH) to acquire 36.00% of Halcyon Agri (HACL SP)’s outstanding shares from Sinochem International Corporation A (600500 CH) at US$0.315 is effective. 
• Conditions precedent which relate to Chinese regulatory approvals should be satisfied shortly. Completion will trigger an MGO at US$0.315 or S$0.423 (US$/S$ rate fixed on the closing date). 
• The MGO has a 50%+ minimum acceptance condition which requires around 40% of minorities acceptance rate. We think that this is achievable as the offer is attractive. 

• Agri-Food play Japfa Ltd (JAP SP) recently distributed in-specie its 62.5% stake in AustAsia Group (2425 HK).
• Japfa continues to hold a 55.4% stake in Japfa Comfeed Indonesia (JPFA IJ), together with unlisted ops focused on animal proteins in Vietnam, India, Bangladesh, and Myanmar.
• Japfa is estimated to be trading at around a 41% discount to NAV and ~4x EV/EBITDA. 

• BillionBricks, a Singapore-based climate-tech startup combining clean energy and large-scale affordable housing, has closed a US$2.45 million seed funding round.
• SGX-listed Thakral Corporation led the round with participation from ENGIE, a global low-carbon energy and services company.
• BillionBricks was founded in 2013 as a non-profit by architect Prasoon Kumar and venture capitalist Anurag Srivastava to address the global climate and housing crises.

• Trading Sea Ltd (SE US) shares this year may not be as straightforward as the previous year.
• With the share price at pre-COVID levels, swing highs could be difficult to swallow for those of us who would like to remain short Sea Ltd in 2023.
• Nonetheless, we would be short Sea-Ltd at the turn of the year as we think valuation multiples could fall to a new all-time low with all segments facing stiff challenges.

• Our recent update with Grab (GRAB US) management revealed a number of interesting product-led initiatives that will drive future growth and customer retention as well as save on costs. 
• Grab (GRAB US) has already seen significant progress on Grab Unlimited given its link to promos plus it is focusing on higher-spending customers to reduce the need for subsidies.
• The company’s valuations look attractive relative to growth and considering it is moving more quickly towards profitability plus it has more than ample cash to make it there.

• Singapore-headquartered Doctor Anywhere (DA) is set to acquire medical services group Asian Healthcare Specialists (AHS) in a cash deal valued at about S$109 million (US$76.7 million) at an offer price of S$0.188 (US$0.13) per share.
• The healthtech firm has also announced a US$38.8 million series C1 financing round led by Novo Holdings to partly fund the AHS acquisition and accelerate growth.
• According to DA’s financial statements, the company’s revenue hit S$31.9 million in 2021, an over 2.8x growth from the previous year

• Singapore-based digital health-science company Aktivolabs has secured US$10 million in a Series A round of investment led by Mitsui & Co, Adaptive Capital Partners, and SEEDS Capital.
• The company will develop the existing algorithm and data-analytics programme to enhance the efficiency and accuracy of predicting, preventing and self-managing chronic disease using digital biomarkers.
• The platform harnesses real-time digital health data elements in a low-touch, cost-effective manner with measurable actuarial and actionable value to life and health insurers.

• In this insight, we take a look at the potential index changes for the FTSE Straits Times Index (STI) (STI INDEX) between now and the March 2023 index review.
• The Sembcorp Marine (SMM SP) – Keppel Corp (KEP SP) deal seems likely to complete in 1Q 2023.
• Below is a look at the potential index flow consequences of this deal and other potential index changes between now and the March 2023 Rebalance.

• Digital Entertainment Asset (DEA), operator of the PlayMining NFT gaming platform, announced that it had raised a US$10 million investment from Los Angeles-based LDA Capital
• DEA manages intellectual property (IP) monetisation for content creators and operates the PlayMining platform
• The funding was meant to further accelerate its business and market expansion and to help optimise the development of PlayMining.

• Healthcare S-REITs capture Japan opportunities with expanding footprint Both ParkwayLife Reit (37.1 per cent of its asset value) and First Reit (22.8 per cent of its assets under management) have significant exposure to Japan nursing homes and healthcare-related properties through recent acquisitions.
• First Reit now has 14 out of its 32 Asian healthcare assets in Japan nursing homes which are operated by five independent and experienced nursing home operators.

• FOR the five trading sessions that spanned Dec 2 to 8, the Straits Times Index (STI) declined 7 per cent, with the Hang Seng Index gaining 3.7 per cent and the FTSE Bursa Malaysia KLCI slipping 1.6 per cent.
• Overall, institutions were net sellers of Singapore stocks for the five sessions ended Dec 8 with S$359 million of net outflow.
• A married deal on Dec 5 saw Wee Hur Holdings executive chairman and managing director Goh Yeow Lian acquire one million shares at 20 cents per share, increasing his total interest from 44.41 per cent to 44.52 per cent.

• Jardine Cycle & Carriage (JCNC SP) is currently trading at a ~12% discount to NAV, just outside its narrowest post-Covid.
• A key catalyst for the recent narrowing was JCNC’s inclusion in the SIMSCI Index at the end of last month.
• JCNC is expensive here – relative to historical values –  and from an implied stub perspective.

• Glints, a Singapore-based careers platform, is laying off employees “based on market conditions and business priorities,” the firm’s co-founder Oswald Yeo said in his address to staff.

• The development comes after the startup raised US$50 million in a series D funding round in August.
• In the same month, the firm claimed that its annual revenue and gross profits grew 2.5x over the past 12 months.

• Osome helps SMEs set up through a simple platform with easy-to-use software and an expert accountant to take care of financial admin

• Singapore-based Osome, which has developed an accounting and corporate compliance app for small and medium enterprises (SMEs), has raked in US$25 million in a Series B round
• The firm plans to expand its Asia operations, primarily in Singapore and Hong Kong