Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

A Long & Short Investment Ideas generator for Asian Equities with 10 years experience in a Hedge fund focused on bottom-up ideas, searching out mispriced ideas and misunderstood investment thesis. Provides on-the-ground insights in various Asian markets with a sway towards ASEAN. Experienced and survived the Asian Financial Crisis in a family business, as well as the Global Financial Crisis in financial markets where lessons learned. It's all about understanding business drivers and navigating business cycles, which has high applicability in generating investment ideas. 

Investment horizon: Mid to Long term

Asian Insight Provider - Actionable ideas

Equity Bottom-Up

As mentioned in my previous report, Proton will benefit greatly from the joint effort with the coming FSP hence <a href="https://www.smartkarma.com/entities/19627" target="_blank" data-smartkarma-citation="entities:19627:1">Drb Hicom Bhd (DRB MK)</a> (which 72% revenue are from Proton) share price sprinted a la Usain Bolt recently. The story goes on with a potential increase in sales due to an improved product mix, benefit from a wider distribution network, tighter cost management discipline, and centralized R&amp;D that lower R&amp;D cost and foster cross-learning.  Capital injection by the Malaysian government and potential cash received from the FSP will strengthen their balance sheet (D/E 51% to 38%) that leads to an improvement of credit rating and improvement of production facilities in Malaysia that increases ROA. The company will also benefit from the best practice in running a day to day operations that could lead to better clarity on expense allocation hence there is hope to lower administrative expenses (which are a staggering 13% of revenue and cannot be allocated to any specific business unit).

As mentioned in my previous report, Proton will benefit greatly from the joint effort with the coming FSP hence Drb Hicom Bhd (DRB MK) (which 72% revenue are from Proton) share price sprinted a la Usain Bolt recently. The story goes on with a potential increase in sales due to an improved product mix, benefit from a wider distribution network, tighter cost management discipline, and centralized R&amp;D that lower R&amp;D cost and foster cross-learning.  Capital injection by the Malaysian government and potential cash received from the FSP will strengthen their balance sheet (D/E 51% to 38%) that leads to an improvement of credit rating and improvement of production facilities in Malaysia that increases ROA. The company will also benefit from the best practice in running a day to day operations that could lead to better clarity on expense allocation hence there is hope to lower administrative expenses (which are a staggering 13% of revenue and cannot be allocated to any specific business unit). 

DRB-Hicom Bhd

Proton:The Rise of the Machine-Part Deux