ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

Johannes Salim, CFA

Equity Bottom-Up

<ul><li>SSSG of <a href="https://www.smartkarma.com/entities/7-eleven-malaysia-holdings-bhd" target="_blank" data-smartkarma-citation="entities:3890:1">7 Eleven Malaysia Holdings Bhd (SEM MK)</a> was a negative 2% YoY in 1H17, indicating soft retail environment in the country.</li><li>Other initiatives (notably cost savings plus e-commerce pick-up points) are shifting into a higher gear.</li><li>Our comparative analysis points to inferior ROCE/store for SEM, compared to parent <a href="https://www.smartkarma.com/entities/13889" target="_blank" data-smartkarma-citation="entities:13889:1">CP All PCL (CPALL TB)</a>, Thailand's 7-Eleven stores operator.</li><li>At 28.9x 2018PE, recovery story seems to have been baked into SEM's share price.</li></ul>

SSSG of 7 Eleven Malaysia Holdings Bhd (SEM MK) was a negative 2% YoY in 1H17, indicating soft retail environment in the country.Other initiatives (notably cost savings plus e-commerce pick-up points) are shifting into a higher gear.Our comparative analysis points to inferior ROCE/store for SEM, compared to parent CP All PCL (CPALL TB), Thailand's 7-Eleven stores operator.At 28.9x 2018PE, recovery story seems to have been baked into SEM's share price.

7-Eleven Malaysia: In a Soft Patch While Recovery Story Discounted