Singapore

• Perhaps, misled by the Chinese tech rally due to the change in stance from the Chinese Government, Sea’s shares rose by 33% compared to the broader market’s 8.3%.
• With fundamentals deteriorating and the Federal Reserve signalling an aggressive rate hike outlook, Sea Ltd (SE US)’s 33% move seems unwarranted.
• Meanwhile, the downside potential is quite significant as Sea trades at a significant FY+2 EV/Sales premium to regional peers whose cyclical bottoms are unknown.

• In the waning hours of 2021, Mapletree Commercial Trust (MCT SP) and Mapletree North Asia Commercial Trust (MAGIC SP) proposed to merge to make a top 10 Asian REIT.
• MCT shareholders and “The Market” did not like it and sent MCT units lower. MNACT holder Quarz didn’t like it and complained. I wrote about all this.
• But 6+ weeks after looking at new MCT trades as Heads I Win, Tails I Win, I revisit and see no reason to change my mind.

• Singapore Press Holdings (SPH SP) has released a set of Q&A for holders as we approach the 22 March EGM/Scheme Meeting.
• Approval of both resolutions/votes is necessary to effect the Cuscaden Peak deal.
• The comments and answer about the SPH REIT Chain Offer may be misleading. Take care of the details!

• Proven ability to navigate during the downturn by keeping occupancy rate high.
• A beneficiary of reopening play in Singapore from the expected higher number of tourists arrival.
• Far East Hospitality Trust (FEHT SP) is a defensive play during market uncertainty with potential for upside and dividend. 

Our next Webinar continues Kyle Rudden‘s ESG Webinar Series in collaboration with SGX (SGX SP). In this fifth instalment, Kyle will pick up where the last session left off, delving deeper into topics covered in the “Hacking for Data” section there. He will address hands-on ESG data discovery and acquisition; uncovering original ESG data and information; and sharing ESG investing insights that others don’t have. He will also cover sources and methods, such as lesser-known troves of ESG data, ESG-relevant OSINT, specialised search engines and queries, and a few other tricks of the trade.

The webinar will be hosted on Wednesday, 23 March 2022, 17:00 SGT/HKT.

Kyle Rudden is an ESG (Environmental, Social, Governance) analyst with an alpha-centric approach to ESG research. After all, ESG investing is, first and foremost, investing. “Alpha-centric” does not mean apathetic, however. Quite the contrary. Kyle believes global sustainability – i.e., environmental stewardship, social equality, and economic prosperity – is imperative, and private-sector capital is its cornerstone. Private-sector capital still has fiduciary responsibilities. Profitability is necessary for sustained impact. The Triple Bottom Line. People, Planet, AND Profit.

• Olam Group set to replace Olam International (OLAM SP) as the listed company entity on 16 March. It consists of Olam Food Ingredients (ofi), Olam Agri and Olam International (OIL).
• The complicated restructuring exercise which was announced in January 2020 is driven by the Board’s intent to unlock long-term shareholder value. 
• Our SoTP valuation is S$2.36 per share, which is a 34% upside to the last trading price of S$1.76 per share (9 March prior to the suspension of the shares).

• With many cash grain/agri prices touching record highs amid war in Ukraine, boasting an upstream supply is not a bad thing. Yet Olam (OLAM SP) is a tricky beast to analyze.
• Bank of Kyoto (8369 JP) would be a screaming buy vs its basket a bit lower. As it is, it’s the same level after the bank changed its payout ratio. 
• The duo of Brookfield and Atlassian/Australian billionaire Mike Cannon-Brookes has lobbed a higher offer for AGL Energy Ltd (AGL AU) and AGL has rejected it.

• The headlines for Grab‘s recent results looked encouraging but the higher driver and consumer incentives hit revenues and profitability towards the end of the year but this is temporary.
• Grab (GRAB US) is facing stiffer competition in the region, especially from GoTo and Shopee Food but is defending its lead and preparing for higher growth in mobility requiring investment.
• Increasing exposure in digital financial services plus more focus on verticals such as online groceries bodes well for future growth. A market cap of US$12.5bn with US$6.8bn in net cash.

• After a 35% price decline in 2021 and 11% performance YTD, we are exploring if SMM is able to capitalize on the high oil price environment.
• We will look at its recent financial performance, orderbook, and financial forecast in 2022.
• We will also look at how to value the company and the key risk with our valuation.

• Cialfo, a Singapore-based edtech startup, has raised another US$20 million in series B funding led by US-based investment firm Tiger Global after it raised US$40 million in January this year.
• In total, the company has raised US$77 million in funding to date. VentureCap Insights pegged the firm’s valuation at around US$230 million.
• Founded by Rohan Pasari, Stanley Chia, and William Hund in 2017, Cialfo is a software-as-a-service firm that simplifies the career exploration and college search process.

For our next Corporate Webinar, we are glad to welcome Uni-Asia Group (UAG SP) Group CFO Lim Kai Ching.

In the upcoming Webinar, Kai Ching will share a short company presentation, after which he will engage in a fireside chat with Smartkarma Insight Provider Osbert Tang. The Corporate Webinar will include a live Q&A session.

The Corporate Webinar will be hosted on Tuesday, 22 March 2022, 17:00 SGT.

Uni-Asia Group Limited is an alternative investment company, which offers structured financing, ship charter arrangement, shipping and maritime asset management, and real estate investments. The Group has 10 wholly-owned bulk carriers under the Group’s ship-owning and chartering segment, and another eight bulk carriers through joint-investment companies.

Uni-Asia also invests in property projects in Hong Kong, of which two projects have been completed and are currently in the market for strata-title sales. The Group is also invested in three other property projects in Hong Kong, which are currently under construction. Within Japan, the Group has been investing and developing small residential property projects termed the “ALERO” series for the past 10 years and continues to see great success with these projects.

Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.

• Jardine Matheson Holdings (JM SP)‘s underlying net profit in FY21 was up 39% against 2020, and just 5% shy of 2019’s level.
• The latest US$250mn buyback program appears to have been completed.
• Shares are down ~5% since the FY21 results. At a ~28% discount to NAV, JMH is inexpensive here. 

• PropertyGuru and Bridgetown 2 announced, on 23rd Jul 2021, that they have entered into a business combination agreement which will see PropertyGuru go public in the US. 
• Both the companies will hold their respective EGMs next week and aim to complete the listing by 18th Mar 2022.
• We have looked at the company’s prior listing attempt, in Australia in 2019, and the current SPAC merger. In this note, we will talk about the recent updates.

• Rex International Holding (REXI SP) reported FY21 results in late February which showed a dramatic improvement over FY20 due to rising oil prices and increased production
• Accounting wise the picture was muddied by auditor fantasy valuation exercises which understated FY21 results. FY22 to be a “clean” year where positive cash flow impact becomes clearer to market.
• Since 08/03/22 Rex trades on the SGX mainboard and remains the best pure-play oil bet in the Singapore market. Current oil prices indicate an FY22 cash flow bonanza.

• The High Court of Singapore has now sanctioned the proposed restructuring of Olam International (OLAM SP) and the proposed listing of OFI Group.
• Entitlement in respect of the Scheme will close on the 11 March. The last day of trading is the 9 March. The listing of OFI is expected in the 2Q22.
• With many grain/agri prices touching record highs amid war in Ukraine, boasting an upstream supply is not a bad thing. But the timing of OFI’s listing could work both ways.