In today’s briefing:
- Olam Teams Up With Saudi Arabia’s SALIC
- Sea Ltd (SE US) – An Indian Odyssey Brings Experience
- Kimly: A Yummy, Undervalued Re-Opening F&B Play in Singapore
- SGX’s New Low Carbon Index Outperformed Comparable Indices and With Less Volatility
Olam Teams Up With Saudi Arabia’s SALIC
- Ten days after Olam Group (OLG SP)‘s restructuring became effective, Saudi-backed SALIC, entered into an SPA to acquire 35.4% of Olam Agri (OGA).
- The proposed US$1.24bn investment implied an equity value of US3.5bn for the bulk agricultural commodity player.
- The OFI unit, which focuses on food ingredients (cocoa, coffee, nuts, and spices), is still seeking a listing in London. OGA is expected to go public six months after OFI.
Sea Ltd (SE US) – An Indian Odyssey Brings Experience
- Sea Ltd’s (SE US) decision to exit India came as a surprise but looks like a prudent move given the heightened risk for Shopee there post the FreeFire ban.
- The move will allow Sea Ltd (SE US) to focus its attention and resources on a more profitable markets such as Brazil, which is already seen as a core market.
- Sea Ltd’s growth model is intact with losses in its core e-commerce markets declining fast on a per order basis. Valuations are less challenging on 3.4x FY2023E EV/Sales.
Kimly: A Yummy, Undervalued Re-Opening F&B Play in Singapore
- We believe Kimly is a yummy, undervalued re-opening, F&B play in Singapore.
- With Singapore increasingly reopening for travel and reducing various COVID related restrictions, this could have a positive impact on the company’s F&B business.
- As such, we have a positive view of Kimly and we believe this stock is well poised to outperform the market in the next 6-12 months.
SGX’s New Low Carbon Index Outperformed Comparable Indices and With Less Volatility
- Singapore Exchange (SGX SP) and OCBC (OCBC SP) recently launched a new sustainability/ESG index – the IEdge-OCBC Singapore Low Carbon Select 50 Capped Index (SGLC50CN INDEX).
- Whilst country-Specific carbon indices are often too narrow for index-linked products, they are invaluable as carbon performance benchmarks for climate change mitigation and planning.
- The iEdge-OCBC index, along with the broad-based iEdge Singapore Low Carbon Index (SGLCN INDEX), consistently outperformed (backcast) comparable indices, often with lower volatility.
Before it’s here, it’s on Smartkarma
