ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

The Hogmanay Week that Was in ASEAN@Smartkarma - Digital Media, Healthcare, and Thai Food

CP Food (CPF TB): Vietnamese Ops To List On HCM Exchange

Thai-Coons (Season Premiere): The Richest Man in Thailand

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/charoen-pokphand-foods-public-company-limited" target="_blank" data-smartkarma-citation="entities:16131:1" rel="noopener">CP FOODS (CPF TB)</a> has seen a significant sell-off recently, put down to a new outbreak of COVID-19 at the Mahachai seafood market in the southwestern Thai province of Samut Sakhon, which tends to have large numbers of illegal workers from Myanmar. 
This seems misguided given the global nature of the company's business, with the majority of its sales coming from livestock and related businesses outside Thailand. It is truly a global player with operations in a total of 17 countries.  
Its recent results saw strong growth aided in large part by higher pork prices driven by an earlier outbreak of African Swine Flu in Vietnam but prices have remained stable in 4Q2020 pointing towards continuing momentum on sales.
China has also been a strong performer and the completion of a restructuring of its swine operations there should pave the way for aggressive future expansion and potentially an IPO by 2022. 
Management is confident in the outlook for 2021 with guidance for +8%-10% sales growth driven by a COVID-19 recovery in Thailand and an increase in capacity elsewhere. It also intends to introduce more value-added packaged food products, and increase efficiency through greater digitalization.
<a href="https://www.smartkarma.com/entities/charoen-pokphand-foods-public-company-limited" target="_blank" data-smartkarma-citation="entities:16131:1" rel="noopener">CP FOODS (CPF TB)</a> now trades on 10.4x FY21E PER and 9.7x FY22E PER versus its 3-year average of 17.4x making it look cheap from a historical perspective.

CP FOODS (CPF TB) has seen a significant sell-off recently, put down to a new outbreak of COVID-19 at the Mahachai seafood market in the southwestern Thai province of Samut Sakhon, which tends to have large numbers of illegal workers from Myanmar. 
This seems misguided given the global nature of the company's business, with the majority of its sales coming from livestock and related businesses outside Thailand. It is truly a global player with operations in a total of 17 countries.  
Its recent results saw strong growth aided in large part by higher pork prices driven by an earlier outbreak of African Swine Flu in Vietnam but prices have remained stable in 4Q2020 pointing towards continuing momentum on sales.
China has also been a strong performer and the completion of a restructuring of its swine operations there should pave the way for aggressive future expansion and potentially an IPO by 2022. 
Management is confident in the outlook for 2021 with guidance for +8%-10% sales growth driven by a COVID-19 recovery in Thailand and an increase in capacity elsewhere. It also intends to introduce more value-added packaged food products, and increase efficiency through greater digitalization.
CP FOODS (CPF TB) now trades on 10.4x FY21E PER and 9.7x FY22E PER versus its 3-year average of 17.4x making it look cheap from a historical perspective.

CP FOODS

CP Foods (CPF TB) - Global Food Provider