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

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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

<p>Trading at only 9x PER with a 5% dividend yield, <a href="https://www.smartkarma.com/entities/xinyi-glass-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11940:1" rel="noopener">Xinyi Glass Holdings (868 HK)</a>  does not sound expensive at all especially when it combines with the index inclusion effect since September 2021. However, its biggest selling product is float glass which the management has confirmed that ties to the performance of the construction sector in China, which is currently under government scrutiny due to the stalled growth and overleverage. </p>
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<a href="https://www.smartkarma.com/entities/flat-glass-group-ltd" target="_blank" data-smartkarma-citation="entities:1108:1" rel="noopener">Flat Glass (6865 HK)</a> 's majority of revenues come from PV glass with a tiny exposure in float glass and household glass. PV glass made up around 83% of the revenue while the other products such as Household Glass, Architectural Glass, and Float Glass made up around 5%, 8%, and 1% respectively. The company benefits from the increasing demand for clean energy. </div>
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<div>One can say that it may be too late to start shorting Xinyi Glass as the share price has decreased by around 30%  in 3 months. However, given the bleak short-term outlook of the property sector in China, the 60% of Xinyi Glass’ revenue from Float Glass may decrease by 25-50% and the price multiple should be lower too.</div>
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<div>On the other hand, going long Flat Glass means participating in the growth of the clean energy and ESG sector that is currently a hot topic in the market plus participating in the Grid Parity in China.</div>
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<div class="content-remarks">source: Reuters</div>
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Trading at only 9x PER with a 5% dividend yield, Xinyi Glass Holdings (868 HK)  does not sound expensive at all especially when it combines with the index inclusion effect since September 2021. However, its biggest selling product is float glass which the management has confirmed that ties to the performance of the construction sector in China, which is currently under government scrutiny due to the stalled growth and overleverage. 

Flat Glass (6865 HK) 's majority of revenues come from PV glass with a tiny exposure in float glass and household glass. PV glass made up around 83% of the revenue while the other products such as Household Glass, Architectural Glass, and Float Glass made up around 5%, 8%, and 1% respectively. The company benefits from the increasing demand for clean energy. 



One can say that it may be too late to start shorting Xinyi Glass as the share price has decreased by around 30%  in 3 months. However, given the bleak short-term outlook of the property sector in China, the 60% of Xinyi Glass’ revenue from Float Glass may decrease by 25-50% and the price multiple should be lower too.

On the other hand, going long Flat Glass means participating in the growth of the clean energy and ESG sector that is currently a hot topic in the market plus participating in the Grid Parity in China.




source: Reuters


Short Xinyi Glass (868) Vs Long Flat Glass (6865)